Full Text of HB4973 94th General Assembly
HB4973eng 94TH GENERAL ASSEMBLY
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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 7-114, 7-135, 7-139, 7-145.1, 7-170, 7-171, 7-172, | 6 |
| 7-173, 7-204, 7-205, and 7-211 and by adding Section 7-153.1 as | 7 |
| follows:
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| (40 ILCS 5/7-114) (from Ch. 108 1/2, par. 7-114)
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| Sec. 7-114. Earnings. "Earnings":
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| (a) An amount to be determined by the board, equal to the | 11 |
| sum of:
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| 1. The total amount of money paid to an employee for | 13 |
| personal
services or official duties as an employee (except | 14 |
| those employed as
independent contractors) paid out of the | 15 |
| general fund, or out of any
special funds controlled by the | 16 |
| municipality, or by any instrumentality
thereof, or | 17 |
| participating instrumentality, including compensation, | 18 |
| fees,
allowances, or other emolument paid for official | 19 |
| duties (but not
including automobile maintenance, travel | 20 |
| expense, or reimbursements for
expenditures incurred in | 21 |
| the performance of duties) and, for fee
offices, the fees | 22 |
| or earnings of the offices to the extent such fees are
paid | 23 |
| out of funds controlled by the municipality, or | 24 |
| instrumentality or
participating instrumentality; and
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| 2. The money value, as determined by rules prescribed | 26 |
| by the
governing body of the municipality, or | 27 |
| instrumentality thereof, of any
board, lodging, fuel, | 28 |
| laundry, and other allowances provided an employee
in lieu | 29 |
| of money.
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| (b) For purposes of determining benefits payable under this | 31 |
| fund
payments to a person who is engaged in an independently | 32 |
| established
trade, occupation, profession or business and who |
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| is paid for his
service on a basis other than a monthly or | 2 |
| other regular salary, are not
earnings.
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| (c) If a disabled participating employee is eligible to | 4 |
| receive Workers'
Compensation for an accidental injury and the | 5 |
| participating municipality or
instrumentality which employed | 6 |
| the participating employee when injured
continues to pay the | 7 |
| participating employee regular salary or other
compensation or | 8 |
| pays the employee an amount in excess of the Workers'
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| Compensation amount, then earnings shall be deemed to be the | 10 |
| total payments,
including an amount equal to the Workers' | 11 |
| Compensation payments. These
payments shall be subject to | 12 |
| employee contributions and allocated as if paid to
the | 13 |
| participating employee when the regular payroll amounts would | 14 |
| have been
paid if the participating employee had continued | 15 |
| working, and creditable
service shall be awarded for this | 16 |
| period.
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| (d) If an elected official who is a participating employee | 18 |
| becomes disabled
but does not resign and is not removed from | 19 |
| office, then earnings shall include
all salary payments made | 20 |
| for the remainder of that term of office and the
official shall | 21 |
| be awarded creditable service for the term of office.
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| (e) If a participating employee is paid pursuant to "An Act | 23 |
| to provide for
the continuation of compensation for law | 24 |
| enforcement officers, correctional
officers and firemen who | 25 |
| suffer disabling injury in the line of duty", approved
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| September 6, 1973, as amended, the payments shall be deemed | 27 |
| earnings, and the
participating employee shall be awarded | 28 |
| creditable service for this period.
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| (f) Additional compensation received by a person while | 30 |
| serving as a
supervisor of assessments, assessor, deputy | 31 |
| assessor or member of a board of
review from the State of | 32 |
| Illinois pursuant to Section 4-10 or 4-15 of the
Property Tax | 33 |
| Code shall not be
earnings for purposes of this Article and | 34 |
| shall not be included in the
contribution formula or | 35 |
| calculation of benefits for such person pursuant to
this | 36 |
| Article.
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| (g) Any moneys received by an elected official who has | 2 |
| elected to establish alternative credit under Section 7-145.1 | 3 |
| before this amendatory Act of the 94th General Assembly from | 4 |
| the State of Illinois for service in that capacity shall be | 5 |
| deemed earnings unless specifically excluded in this Code.
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| (Source: P.A. 87-740; 88-670, eff. 12-2-94.)
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| (40 ILCS 5/7-135) (from Ch. 108 1/2, par. 7-135)
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| Sec. 7-135. Authorized agents.
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| (a) Each participating municipality and participating
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| instrumentality shall appoint an authorized agent who shall | 11 |
| have the
powers and duties set forth in this section. In | 12 |
| absence of such
appointment, the duties of the authorized agent | 13 |
| shall devolve upon the
clerk or secretary of the municipality | 14 |
| or instrumentality and in the
case of township school trustees | 15 |
| upon the township school treasurer. In
townships the Authorized | 16 |
| Agent shall be the township supervisor.
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| (b) The authorized agent shall have the following powers | 18 |
| and duties:
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| 1. To certify to the fund whether or not a given person | 20 |
| is
authorized to participate in the fund;
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| 2. To certify to the fund when a participating employee | 22 |
| is on a
leave of absence authorized by the municipality;
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| 3. To request the proper officer to cause employee | 24 |
| contributions to
be withheld from earnings and transmitted | 25 |
| to the fund;
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| 4. To request the proper officer to cause municipality | 27 |
| contributions
to be forwarded to the fund promptly;
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| 5. To forward promptly to all participating employees | 29 |
| any
communications from the fund for such employees;
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| 6. To forward promptly to the fund all applications, | 31 |
| claims, reports
and other communications delivered to him | 32 |
| by participating employees;
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| 7. To perform all duties related to the administration | 34 |
| of this
retirement system as requested by the fund and the | 35 |
| governing body of his
municipality.
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| (c) The governing body of each participating municipality | 2 |
| and
participating instrumentality may delegate any or all of | 3 |
| the following
powers and duties to its authorized agent, but | 4 |
| only if the agent is a
member of the fund:
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| 1. To file a petition for nomination of an executive | 6 |
| trustee of the
fund.
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| 2. To cast the ballot for election of an executive | 8 |
| trustee of the
fund.
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| If a governing body does not authorize its agent to perform | 10 |
| the
powers and duties set forth in this paragraph (c), they | 11 |
| shall be
performed by the governing body itself, unless the | 12 |
| governing body by
resolution duly certified to the fund | 13 |
| delegates them to some other
officer or employee.
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| (d) The delivery of any communication or document by an | 15 |
| employee or
a participating municipality or participating | 16 |
| instrumentality to its
authorized agent shall not constitute | 17 |
| delivery to the fund.
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| (Source: P.A. 87-740.)
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| (40 ILCS 5/7-139) (from Ch. 108 1/2, par. 7-139)
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| Sec. 7-139. Credits and creditable service to employees.
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| (a) Each participating employee shall be granted credits | 22 |
| and creditable
service, for purposes of determining the amount | 23 |
| of any annuity or benefit
to which he or a beneficiary is | 24 |
| entitled, as follows:
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| 1. For prior service: Each participating employee who | 26 |
| is an employee
of a participating municipality or | 27 |
| participating instrumentality on the
effective date shall | 28 |
| be granted creditable service, but no credits under
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| paragraph 2 of this subsection (a), for periods of prior | 30 |
| service for which
credit has not been received under any | 31 |
| other pension fund or retirement system
established under | 32 |
| this Code, as follows:
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| If the effective date of participation for the | 34 |
| participating municipality
or participating | 35 |
| instrumentality is on or before January 1, 1998, creditable
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| service shall be granted for the entire period of prior | 2 |
| service with that
employer without any employee | 3 |
| contribution.
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| If the effective date of participation for the | 5 |
| participating municipality
or participating | 6 |
| instrumentality is after January 1, 1998, creditable
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| service shall be granted for the last 20% of the period of | 8 |
| prior service with
that employer, but no more than 5 years, | 9 |
| without any employee contribution. A
participating | 10 |
| employee may establish creditable service for the | 11 |
| remainder of
the period of prior service with that employer | 12 |
| by making an application in
writing, accompanied by payment | 13 |
| of an employee contribution in an
amount determined by the | 14 |
| Fund, based on the employee contribution rates in
effect at | 15 |
| the time of application for the creditable service and the | 16 |
| employee's
salary rate on the effective date of | 17 |
| participation for that employer, plus
interest at the | 18 |
| effective rate from the date of the prior service to the | 19 |
| date
of payment. Application for this creditable service | 20 |
| may be made at any time
while the employee is still in | 21 |
| service.
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| A municipality that (i) has at least 35 employees; (ii) | 23 |
| is located in a county with at least 2,000,000 inhabitants; | 24 |
| and (iii) maintains an independent defined benefit pension | 25 |
| plan for the benefit of its eligible employees may restrict | 26 |
| creditable service in whole or in part for periods of prior | 27 |
| service with the employer if the governing body of the | 28 |
| municipality adopts an irrevocable resolution to restrict | 29 |
| that creditable service and files the resolution with the | 30 |
| board before the municipality's effective date of | 31 |
| participation.
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| Any person who has withdrawn from the service of a | 33 |
| participating
municipality
or participating | 34 |
| instrumentality prior to the effective date, who reenters
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| the service of the same municipality or participating | 36 |
| instrumentality after
the effective date and becomes a |
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| participating employee is entitled to
creditable service | 2 |
| for prior service as otherwise provided in this
subdivision | 3 |
| (a)(1) only if he or she renders 2 years of service as a
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| participating employee after the effective date. | 5 |
| Application
for such service must be made while in a | 6 |
| participating status.
The salary rate to be used in the | 7 |
| calculation of the required employee
contribution, if any, | 8 |
| shall be the employee's salary rate at the time of first
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| reentering service with the employer after the employer's | 10 |
| effective date of
participation.
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| 2. For current service, each participating employee | 12 |
| shall be
credited with:
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| a. Additional credits of amounts equal to each | 14 |
| payment of additional
contributions received from him | 15 |
| under Section 7-173, as of the
date the corresponding | 16 |
| payment of earnings is payable to him.
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| b. Normal credits of amounts equal to each payment | 18 |
| of normal
contributions received from him, as of the | 19 |
| date the corresponding payment of
earnings is payable | 20 |
| to him, and normal contributions made for the purpose | 21 |
| of
establishing out-of-state service credits as | 22 |
| permitted under the conditions set
forth in paragraph 6 | 23 |
| of this subsection (a).
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| c. Municipality credits in an amount equal to 1.4 | 25 |
| times the normal
credits, except those established by | 26 |
| out-of-state service credits, as of
the date of | 27 |
| computation of any benefit if these credits would | 28 |
| increase
the benefit.
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| d. Survivor credits equal to each payment of | 30 |
| survivor contributions
received from the participating | 31 |
| employee as of the date the
corresponding payment of | 32 |
| earnings is payable, and survivor contributions made
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| for the purpose of establishing out-of-state service | 34 |
| credits.
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| 3. For periods of temporary and total and permanent | 36 |
| disability
benefits, each employee receiving disability |
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| benefits shall be granted
creditable service for the period | 2 |
| during which disability benefits are
payable. Normal and | 3 |
| survivor credits, based upon the rate of earnings
applied | 4 |
| for disability benefits, shall also be granted if such | 5 |
| credits
would result in a higher benefit to any such | 6 |
| employee or his
beneficiary.
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| 4. For authorized leave of absence without pay: A | 8 |
| participating
employee shall be granted credits and | 9 |
| creditable service for periods of
authorized leave of | 10 |
| absence without pay under the following
conditions:
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| a. An application for credits and creditable | 12 |
| service is submitted to the
board while the employee is | 13 |
| in a status of
active employment , and within 2 years | 14 |
| after termination of the
leave of absence period for | 15 |
| which credits and creditable service are
sought .
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| b. Not more than 12 complete months of creditable | 17 |
| service
for authorized leave of absence without pay | 18 |
| shall be counted for purposes of
determining any | 19 |
| benefits payable under this Article.
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| c. Credits and creditable service shall be granted | 21 |
| for leave of
absence only if such leave is approved by | 22 |
| the governing body of the
municipality, including | 23 |
| approval of the estimated cost thereof to the
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| municipality as determined by the fund, and employee | 25 |
| contributions, plus
interest at the effective rate | 26 |
| applicable for each year from the end of
the period of | 27 |
| leave to date of payment, have been paid to the fund in
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| accordance with Section 7-173. The contributions shall | 29 |
| be computed upon the
assumption earnings continued | 30 |
| during the period of leave at the rate in
effect when | 31 |
| the leave began.
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| d. Benefits under the provisions of Sections | 33 |
| 7-141, 7-146, 7-150
and 7-163 shall become payable to | 34 |
| employees on authorized leave of
absence, or their | 35 |
| designated beneficiary, only if such leave of absence
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| is creditable hereunder, and if the employee has at |
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| least one year of
creditable service other than the | 2 |
| service granted for leave of absence.
Any employee | 3 |
| contributions due may be deducted from any benefits
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| payable.
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| e. No credits or creditable service shall be | 6 |
| allowed for leave of
absence without pay during any | 7 |
| period of prior service.
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| 5. For military service: The governing body of a | 9 |
| municipality or
participating instrumentality may elect to | 10 |
| allow creditable service to
participating employees who | 11 |
| leave their employment to serve in the armed
forces of the | 12 |
| United States for all periods of such service, provided
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| that the person returns to active employment within 90 days | 14 |
| after
completion
of full time active duty, but no | 15 |
| creditable service shall be allowed such
person for any | 16 |
| period that can be used in the computation of a pension
or | 17 |
| any other pay or benefit, other than pay for active duty, | 18 |
| for service
in any branch of the armed forces of the United | 19 |
| States. If necessary to
the computation of any benefit, the | 20 |
| board shall establish municipality
credits for | 21 |
| participating employees under this paragraph on the
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| assumption that the employee received earnings at the rate | 23 |
| received at
the time he left the employment to enter the | 24 |
| armed forces. A
participating employee in the armed forces | 25 |
| shall not be considered an
employee during such period of | 26 |
| service and no additional death and no
disability benefits | 27 |
| are payable for death or disability during such period.
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| Any participating employee who left his employment | 29 |
| with a
municipality or participating instrumentality to | 30 |
| serve in the armed
forces of the United States and who | 31 |
| again became a participating
employee within 90 days after | 32 |
| completion of full time active duty by
entering the service | 33 |
| of a different municipality or participating
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| instrumentality, which has elected to allow creditable | 35 |
| service for
periods of military service under the preceding | 36 |
| paragraph, shall also be
allowed creditable service for his |
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| period of military service on the
same terms that would | 2 |
| apply if he had been employed, before entering
military | 3 |
| service, by the municipality or instrumentality which | 4 |
| employed
him after he left the military service and the | 5 |
| employer costs arising in
relation to such grant of | 6 |
| creditable service shall be charged to and
paid by that | 7 |
| municipality or instrumentality.
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| Notwithstanding the foregoing, any participating | 9 |
| employee
shall be entitled to creditable service as | 10 |
| required by any federal law
relating to re-employment | 11 |
| rights of persons who served in the United States
Armed | 12 |
| Services. Such creditable service shall be granted upon | 13 |
| payment by
the member of an amount equal to the employee | 14 |
| contributions which would
have been required had the | 15 |
| employee continued in service at the same
rate of earnings | 16 |
| during the military leave period, plus interest at
the | 17 |
| effective rate.
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| 5.1. In addition to any creditable service established | 19 |
| under
paragraph 5 of this subsection (a), creditable | 20 |
| service may be granted for
up to 24 months of service in | 21 |
| the armed forces of the United States.
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| In order to receive creditable service for military | 23 |
| service under this
paragraph 5.1, a participating employee | 24 |
| must (1) apply to the Fund
in writing and provide evidence | 25 |
| of the military service that is satisfactory
to the Board; | 26 |
| (2) obtain the written approval of the current employer; | 27 |
| and (3)
make contributions to the Fund equal to (i)
the | 28 |
| employee contributions that would have been required had | 29 |
| the service been
rendered as a member, plus (ii) an amount | 30 |
| determined by the board to be equal
to the employer's | 31 |
| normal cost of the benefits accrued for that military
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| service, plus (iii) interest on items (i) and (ii) from the | 33 |
| date of first
membership in the Fund to the date of | 34 |
| payment. If payment is made during
the 6-month period that | 35 |
| begins 3 months after the effective date of this
amendatory | 36 |
| Act of 1997, the required interest shall be at the rate of |
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| 2.5%
per year, compounded annually; otherwise, the | 2 |
| required interest shall be
calculated at the regular | 3 |
| interest rate.
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| 6. For out-of-state service: Creditable service shall | 5 |
| be granted for
service rendered to an out-of-state local | 6 |
| governmental body under the
following conditions: The | 7 |
| employee had participated and has irrevocably
forfeited | 8 |
| all rights to benefits in the out-of-state public employees
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| pension system; the governing body of his participating | 10 |
| municipality or
instrumentality authorizes the employee to | 11 |
| establish such service; the
employee has 2 years current | 12 |
| service with this municipality or
participating | 13 |
| instrumentality; the employee makes a payment of
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| contributions, which shall be computed at 8% (normal) plus | 15 |
| 2% (survivor)
times length of service purchased times the | 16 |
| average rate of earnings for the
first 2
years of service | 17 |
| with the municipality or participating
instrumentality | 18 |
| whose governing body authorizes the service established
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| plus interest at the effective rate on the date such | 20 |
| credits are
established, payable from the date the employee | 21 |
| completes the required 2
years of current service to date | 22 |
| of payment. In no case shall more than
120 months of | 23 |
| creditable service be granted under this provision.
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| 7. For retroactive service: Any employee who could have | 25 |
| but did not
elect to become a participating employee, or | 26 |
| who should have been a
participant in the Municipal Public | 27 |
| Utilities Annuity and Benefit Fund
before that fund was | 28 |
| superseded, may receive creditable service for the
period | 29 |
| of service not to exceed 50 months; however, a current or | 30 |
| former
elected or appointed official of a participating | 31 |
| municipality may establish credit under this paragraph 7 | 32 |
| for more than 50
months of service as an official of that | 33 |
| municipality, if the excess over 50 months is approved by | 34 |
| resolution of the
governing body of the affected | 35 |
| municipality filed with
the Fund before January 1, 2002.
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| Any employee who is a
participating employee on or |
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| after September 24, 1981 and who was
excluded from | 2 |
| participation by the age restrictions removed by Public Act
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| 82-596 may receive creditable service for the period, on or | 4 |
| after January
1, 1979, excluded by the age restriction and, | 5 |
| in addition, if the governing
body of the participating | 6 |
| municipality or participating instrumentality elects
to | 7 |
| allow creditable service for all employees excluded by the | 8 |
| age restriction
prior to January 1, 1979, for service | 9 |
| during the period prior to that date
excluded by the age | 10 |
| restriction. Any employee who was excluded from
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| participation by the age restriction removed by Public Act | 12 |
| 82-596 and who is
not a participating employee on or after | 13 |
| September 24, 1981 may receive
creditable service for | 14 |
| service after January 1,
1979. Creditable service under | 15 |
| this paragraph
shall be granted upon payment of the | 16 |
| employee contributions
which would have been required had | 17 |
| he participated, with interest at the
effective rate for | 18 |
| each year from the end of the period of service
established | 19 |
| to date of payment.
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| 8. For accumulated unused sick leave: A participating | 21 |
| employee who is
applying for a retirement annuity shall be | 22 |
| entitled to creditable service
for that portion of the | 23 |
| employee's accumulated unused sick leave
for which payment | 24 |
| is not received, as follows:
| 25 |
| a. Sick leave days shall be limited to those | 26 |
| accumulated under a sick
leave plan established by a | 27 |
| participating municipality or participating
| 28 |
| instrumentality which is available to all employees or | 29 |
| a class of employees.
| 30 |
| b. Only sick leave days accumulated with a | 31 |
| participating municipality or
participating | 32 |
| instrumentality with which the employee was in service | 33 |
| within
60 days of the effective date of his retirement | 34 |
| annuity shall be credited;
If the employee was in | 35 |
| service with more than one employer during this
period | 36 |
| only the sick leave days with the employer with which |
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| the employee
has the greatest number of unpaid sick | 2 |
| leave days shall be considered.
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| c. The creditable service granted shall be | 4 |
| considered solely for the
purpose of computing the | 5 |
| amount of the retirement annuity and shall not be
used | 6 |
| to establish any minimum service period required by any | 7 |
| provision of the
Illinois Pension Code, the effective | 8 |
| date of the retirement annuity, or the
final rate of | 9 |
| earnings.
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| d. The creditable service shall be at the rate of | 11 |
| 1/20 of a month for
each full sick day, provided that | 12 |
| no more than 12 months may be credited
under this | 13 |
| subdivision 8.
| 14 |
| e. Employee contributions shall not be required | 15 |
| for creditable service
under this subdivision 8.
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| f. Each participating municipality and | 17 |
| participating instrumentality
with which an employee | 18 |
| has service within 60 days of the effective date of
his | 19 |
| retirement annuity shall certify to the board the | 20 |
| number of accumulated
unpaid sick leave days credited | 21 |
| to the employee at the time of termination
of service.
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| 9. For service transferred from another system: | 23 |
| Credits and
creditable service shall be granted for service | 24 |
| under Article 3, 4, 5, 14
or 16 of this Act, to any active | 25 |
| member of this Fund, and to any
inactive member who has | 26 |
| been a county sheriff, upon
transfer of such credits | 27 |
| pursuant to Section 3-110.3, 4-108.3, 5-235,
14-105.6 or | 28 |
| 16-131.4, and payment by the member of the amount by
which | 29 |
| (1) the employer and employee contributions that would have | 30 |
| been required
if he had participated in this Fund as a | 31 |
| sheriff's law enforcement employee
during the period for | 32 |
| which credit is
being transferred, plus interest thereon at | 33 |
| the effective rate for each
year, compounded annually, from | 34 |
| the date of termination of the service for
which credit is | 35 |
| being transferred to the date of payment, exceeds (2) the
| 36 |
| amount actually transferred to the Fund.
Such transferred |
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| service shall be deemed to be service as a sheriff's law
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| enforcement employee for the purposes of Section 7-142.1.
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| 10. For service transferred from an Article 3 system | 4 |
| under Section 3-110.8: Credits and
creditable service | 5 |
| shall be granted for service under Article 3 of this Act as | 6 |
| provided in Section 3-110.8, to any active member of this | 7 |
| Fund upon
transfer of such credits pursuant to Section | 8 |
| 3-110.8. If the amount by
which (1) the employer and | 9 |
| employee contributions that would have been required
if he | 10 |
| had participated in this Fund during the period for which | 11 |
| credit is
being transferred, plus interest thereon at the | 12 |
| effective rate for each
year, compounded annually, from the | 13 |
| date of termination of the service for
which credit is | 14 |
| being transferred to the date of payment, exceeds (2) the
| 15 |
| amount actually transferred to the Fund, then the amount of | 16 |
| creditable service established under this paragraph 10 | 17 |
| shall be reduced by a corresponding amount in accordance | 18 |
| with the rules and procedures established under this | 19 |
| paragraph 10.
| 20 |
| The board shall establish by rule the manner of making | 21 |
| the calculation required under
this paragraph 10, taking | 22 |
| into account the appropriate actuarial
assumptions; the | 23 |
| member's service, age, and salary history; the level
of | 24 |
| funding of the employer; and
any other factors that the | 25 |
| board determines to be relevant.
| 26 |
| (b) Creditable service - amount:
| 27 |
| 1. One month of creditable service
shall be allowed for | 28 |
| each month for which a participating employee made
| 29 |
| contributions as required under Section 7-173, or for which | 30 |
| creditable
service is otherwise granted hereunder. Not | 31 |
| more than 1 month of
service shall be credited and counted | 32 |
| for 1 calendar month, and not more
than 1 year of service | 33 |
| shall be credited and counted for any calendar
year. A | 34 |
| calendar month means a nominal month beginning on the first | 35 |
| day
thereof, and a calendar year means a year beginning | 36 |
| January 1 and ending
December 31.
|
|
|
|
HB4973 Engrossed |
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LRB094 15880 AMC 51102 b |
|
| 1 |
| 2. A seasonal employee shall be given 12 months of | 2 |
| creditable
service if he renders the number of months of | 3 |
| service normally required
by the position in a 12-month | 4 |
| period and he remains in service for the
entire 12-month | 5 |
| period. Otherwise a fractional year of service in the
| 6 |
| number of months of service rendered shall be credited.
| 7 |
| 3. An intermittent employee shall be given creditable | 8 |
| service for
only those months in which a contribution is | 9 |
| made under Section 7-173.
| 10 |
| (c) No application for correction of credits or creditable | 11 |
| service shall
be considered unless the board receives an | 12 |
| application for correction while
(1) the applicant is a | 13 |
| participating employee and in active employment
with a | 14 |
| participating municipality or instrumentality, or (2) while | 15 |
| the
applicant is actively participating in a pension fund or | 16 |
| retirement
system which is a participating system under the | 17 |
| Retirement Systems
Reciprocal Act. A participating employee or | 18 |
| other applicant shall not be
entitled to credits or creditable | 19 |
| service unless the required employee
contributions are made in | 20 |
| a lump sum or in installments made in accordance
with board | 21 |
| rule.
| 22 |
| (d) Upon the granting of a retirement, surviving spouse or | 23 |
| child
annuity, a death benefit or a separation benefit, on | 24 |
| account of any
employee, all individual accumulated credits | 25 |
| shall thereupon terminate.
Upon the withdrawal of additional | 26 |
| contributions, the credits applicable
thereto shall thereupon | 27 |
| terminate. Terminated credits shall not be applied
to increase | 28 |
| the benefits any remaining employee would otherwise receive | 29 |
| under
this Article.
| 30 |
| (Source: P.A. 93-933, eff. 8-13-04; 94-356, eff. 7-29-05.)
| 31 |
| (40 ILCS 5/7-145.1)
| 32 |
| Sec. 7-145.1. Alternative annuity for county officers.
| 33 |
| (a) The benefits provided in this Section and Section | 34 |
| 7-145.2 are available
only if (1) the county board has filed | 35 |
| with the Board of the Fund a resolution or
ordinance expressly |
|
|
|
HB4973 Engrossed |
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LRB094 15880 AMC 51102 b |
|
| 1 |
| consenting to the availability of these benefits for its
| 2 |
| elected county officers and (2) the elected county officer has | 3 |
| elected to establish alternative credit under this Section | 4 |
| before the effective date of this amendatory Act of the 94th | 5 |
| General Assembly . The county board's consent is irrevocable | 6 |
| with
respect to persons participating in the program, but may | 7 |
| be revoked at any time
with respect to persons who have not | 8 |
| paid an additional optional contribution
under this Section | 9 |
| before the date of revocation.
| 10 |
| An elected county officer may elect to establish | 11 |
| alternative credits for
an alternative annuity by electing in | 12 |
| writing before the effective date of this amendatory Act of the | 13 |
| 94th General Assembly to make additional optional
| 14 |
| contributions in accordance with this Section and procedures | 15 |
| established
by the board. These alternative credits are | 16 |
| available only for periods of
service as an elected county | 17 |
| officer. The elected county officer may
discontinue making the | 18 |
| additional optional contributions by notifying the
Fund in | 19 |
| writing in accordance with this Section and procedures | 20 |
| established
by the board.
| 21 |
| Additional optional contributions for the alternative | 22 |
| annuity shall
be as follows:
| 23 |
| (1) For service as an elected county officer after the | 24 |
| option is
elected, an additional contribution of 3% of | 25 |
| salary shall be contributed
to the Fund on the same basis | 26 |
| and under the same conditions as contributions
required | 27 |
| under Section 7-173.
| 28 |
| (2) For service as an elected county officer before the | 29 |
| option is
elected, an additional contribution of 3% of the | 30 |
| salary for the applicable
period of service, plus interest | 31 |
| at the effective rate from the date of
service to the date | 32 |
| of payment, plus any additional amount required by
the | 33 |
| county board under paragraph (3). All payments for past | 34 |
| service must
be paid in full before credit is given.
| 35 |
| (3) With respect to service as an elected county | 36 |
| officer before the
option is elected, if payment is made |
|
|
|
HB4973 Engrossed |
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LRB094 15880 AMC 51102 b |
|
| 1 |
| after the county board has filed with
the Board of the Fund | 2 |
| a resolution or ordinance requiring an additional
| 3 |
| contribution under this paragraph, then the contribution | 4 |
| required under
paragraph (2) shall include an amount to be | 5 |
| determined by the Fund, equal
to the actuarial present | 6 |
| value of the additional employer cost that would
otherwise | 7 |
| result from the alternative credits being established for | 8 |
| that
service. A county board's resolution or ordinance | 9 |
| requiring additional
contributions under this paragraph | 10 |
| (3) is irrevocable.
| 11 |
| No additional optional contributions may be made for any | 12 |
| period of service
for which credit has been previously | 13 |
| forfeited by acceptance of a refund,
unless the refund is | 14 |
| repaid in full with interest at the effective rate from
the | 15 |
| date of refund to the date of repayment.
| 16 |
| (b) In lieu of the retirement annuity otherwise payable | 17 |
| under this Article,
an elected county officer who (1) has | 18 |
| elected to participate in the Fund and
make additional optional | 19 |
| contributions in accordance with this Section, (2)
has held and | 20 |
| made additional optional contributions with respect to the same
| 21 |
| elected county office for at least 8 years, and (3) has | 22 |
| attained
age 55 with at least 8 years of service credit (or has | 23 |
| attained age 50 with at
least 20 years of service as a | 24 |
| sheriff's law enforcement employee) may elect
to have his | 25 |
| retirement annuity computed as follows: 3% of the participant's
| 26 |
| salary for each of the first 8 years
of service credit, plus 4% | 27 |
| of that salary for each of the next 4 years of
service credit, | 28 |
| plus 5% of that salary for each year of service credit in
| 29 |
| excess of 12 years, subject to a maximum of 80% of that salary.
| 30 |
| This formula applies only to service in an elected county | 31 |
| office that the
officer held for at least 8 years, and only to | 32 |
| service for which additional
optional contributions have been | 33 |
| paid under this Section. If an elected county
officer qualifies | 34 |
| to have this formula applied to service in more than one
| 35 |
| elected county office, the qualifying service shall be | 36 |
| accumulated for purposes
of determining the applicable accrual |
|
|
|
HB4973 Engrossed |
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LRB094 15880 AMC 51102 b |
|
| 1 |
| percentages, but the salary used for each
office shall be the | 2 |
| separate salary calculated for that office, as defined in
| 3 |
| subsection (g).
| 4 |
| To the extent that the elected county officer has service | 5 |
| credit that does
not qualify for this formula, his retirement | 6 |
| annuity will first be determined
in accordance with this | 7 |
| formula with respect to the service to which this
formula | 8 |
| applies, and then in accordance with the remaining Sections of | 9 |
| this
Article with respect to the service to which this formula | 10 |
| does not apply.
| 11 |
| (c) In lieu of the disability benefits otherwise payable | 12 |
| under this
Article, an elected county officer who (1) has
| 13 |
| elected to participate in the Fund, and (2) has become
| 14 |
| permanently disabled and as a consequence is unable to perform | 15 |
| the duties
of his office, and (3) was making optional | 16 |
| contributions in accordance with
this Section at the time the | 17 |
| disability was incurred, may elect to receive
a disability | 18 |
| annuity calculated in accordance with the formula in subsection
| 19 |
| (b). For the purposes of this subsection, an elected county | 20 |
| officer shall be
considered permanently disabled only if: (i) | 21 |
| disability occurs while in
service as an elected county officer | 22 |
| and is of such a nature as to prevent him
from reasonably | 23 |
| performing the duties of his office at the time; and (ii) the
| 24 |
| board has received a written certification by at least 2 | 25 |
| licensed physicians
appointed by it stating that the officer is | 26 |
| disabled and that the disability
is likely to be permanent.
| 27 |
| (d) Refunds of additional optional contributions shall be | 28 |
| made on the
same basis and under the same conditions as | 29 |
| provided under Section 7-166,
7-167 and 7-168. Interest shall | 30 |
| be credited at the effective rate on the
same basis and under | 31 |
| the same conditions as for other contributions.
| 32 |
| If an elected county officer fails to hold that same | 33 |
| elected county
office for at least 8 years, he or she shall be | 34 |
| entitled after leaving office
to receive a refund of the | 35 |
| additional optional contributions made with respect
to that | 36 |
| office, plus interest at the effective rate.
|
|
|
|
HB4973 Engrossed |
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LRB094 15880 AMC 51102 b |
|
| 1 |
| (e) The plan of optional alternative benefits and | 2 |
| contributions shall be
available to persons who are elected | 3 |
| county officers and active contributors
to the Fund on or after | 4 |
| November 15, 1994 and have elected to establish alternative | 5 |
| credit before the effective date of this amendatory Act of the | 6 |
| 94th General Assembly . A person who was an elected county
| 7 |
| officer and an active contributor to the Fund on November 15, | 8 |
| 1994 but is
no longer an active contributor may apply to make | 9 |
| additional optional
contributions under this Section at any | 10 |
| time within 90 days after the
effective date of this amendatory | 11 |
| Act of 1997; if the person is an annuitant,
the resulting | 12 |
| increase in annuity shall begin to accrue on the first day of
| 13 |
| the month following the month in which the required payment is | 14 |
| received by the
Fund.
| 15 |
| (f) For the purposes of this Section and Section 7-145.2, | 16 |
| the terms "elected
county officer" and "elected county office" | 17 |
| include, but are not limited to:
(1) the county clerk, | 18 |
| recorder, treasurer, coroner, assessor (if elected),
auditor, | 19 |
| sheriff, and
State's Attorney; members of the county board; and | 20 |
| the clerk of the circuit
court; and (2) a person who has been | 21 |
| appointed to fill a vacancy in an
office that is normally | 22 |
| filled by election on a countywide basis, for the
duration of | 23 |
| his or her service in that office. The terms "elected county
| 24 |
| officer" and "elected county office" do not include any officer | 25 |
| or office of
a county that has not consented to the | 26 |
| availability of benefits under this
Section and Section | 27 |
| 7-145.2.
| 28 |
| (g) For the purposes of this Section and Section 7-145.2, | 29 |
| the term
"salary" means the final rate of earnings for the | 30 |
| elected county office held,
calculated in a manner consistent | 31 |
| with Section 7-116, but for that office
only. If an elected | 32 |
| county officer qualifies to have the formula in subsection
(b) | 33 |
| applied to service in more than one elected county office, a | 34 |
| separate
salary shall be calculated and applied with respect to | 35 |
| each such office.
| 36 |
| (h) The changes to this Section made by this amendatory Act |
|
|
|
HB4973 Engrossed |
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LRB094 15880 AMC 51102 b |
|
| 1 |
| of the 91st
General Assembly apply to persons who first make an | 2 |
| additional optional
contribution under this Section on or after | 3 |
| the effective date of this
amendatory Act.
| 4 |
| (Source: P.A. 90-32, eff. 6-27-97; 91-685, eff. 1-26-00; | 5 |
| 91-887, eff. 7-6-00.)
| 6 |
| (40 ILCS 5/7-153.1 new) | 7 |
| Sec. 7-153.1. Disability hearings; request for closed | 8 |
| meeting. Those portions of meetings of the Board or of Board | 9 |
| committees in which matters relating to the determination of | 10 |
| disability or the results of medical examinations are to be | 11 |
| considered may be closed, but only if the request for a closed | 12 |
| meeting is initiated by the participating employee whose | 13 |
| disability determination or whose medical examination results | 14 |
| are at issue.
| 15 |
| (40 ILCS 5/7-170) (from Ch. 108 1/2, par. 7-170)
| 16 |
| Sec. 7-170. Federal Social Security coverage. | 17 |
| (a) It is declared to be the policy and purpose of this | 18 |
| Section to extend to covered
employees as defined in Section | 19 |
| 7-138, the benefits of the Federal Old
Age and Survivors | 20 |
| Insurance System as authorized by the Federal Social
Security | 21 |
| Act and amendments thereto. To effect this, the board shall
| 22 |
| take such action as may be required by applicable State and | 23 |
| Federal laws
or regulations.
| 24 |
| (b) The board shall execute an agreement with the State | 25 |
| Agency to
secure coverage of covered employees as provided in | 26 |
| paragraph (a) of
this section.
| 27 |
| (c) Each participating municipality and each participating | 28 |
| instrumentality
shall remit payment of contributions for | 29 |
| Social Security purposes on behalf
of covered employees and | 30 |
| covered municipalities and participating
instrumentalities
in | 31 |
| the manner provided by law
as required by the board and the | 32 |
| State Agency established by the Social
Security Enabling Act .
| 33 |
| (d) (Blank).
Contributions of covered employees to this | 34 |
| fund for Federal
Social Security purposes shall be paid to the |
|
|
|
HB4973 Engrossed |
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LRB094 15880 AMC 51102 b |
|
| 1 |
| State Agency in such
amounts and at such time as are designated | 2 |
| by State laws or regulations.
| 3 |
| (e) (Blank).
Contributions in behalf of covered | 4 |
| municipalities and
participating instrumentalities for Federal | 5 |
| Social Security purposes and
the required pro rata share of | 6 |
| administrative expenses shall be paid to
the State Agency from | 7 |
| this fund in accordance with applicable State laws
and | 8 |
| regulations.
| 9 |
| (f) The board shall maintain such records and submit such | 10 |
| reports as may
be required by applicable State and Federal laws | 11 |
| or regulations.
| 12 |
| (Source: P.A. 81-793.)
| 13 |
| (40 ILCS 5/7-171) (from Ch. 108 1/2, par. 7-171)
| 14 |
| Sec. 7-171. Finance; taxes.
| 15 |
| (a) Each municipality other than a school district shall
| 16 |
| appropriate an amount sufficient to provide for the current
| 17 |
| municipality contributions required by Section 7-172 of
this | 18 |
| Article, for the fiscal year for which the appropriation is | 19 |
| made
and all amounts due for municipal contributions for | 20 |
| previous years.
Those municipalities which have been assessed | 21 |
| an annual amount to
amortize its unfunded obligation, as | 22 |
| provided in subparagraph 4
5 of
paragraph (a) of Section 7-172 | 23 |
| of this Article, shall include in the
appropriation an amount | 24 |
| sufficient to pay the amount assessed. The
appropriation shall | 25 |
| be based upon an estimate of assets available for
municipality | 26 |
| contributions and liabilities therefor for the fiscal year
for | 27 |
| which appropriations are to be made, including funds available | 28 |
| from
levies for this purpose in prior years.
| 29 |
| (b) For the purpose of providing monies for municipality
| 30 |
| contributions, beginning for the year in which a municipality | 31 |
| is
included in this fund:
| 32 |
| (1) A municipality other than a school district may | 33 |
| levy a tax
which shall not exceed the amount appropriated | 34 |
| for municipality contributions.
| 35 |
| (2) A school district may levy a tax in an amount |
|
|
|
HB4973 Engrossed |
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LRB094 15880 AMC 51102 b |
|
| 1 |
| reasonably calculated
at the time of the levy to provide | 2 |
| for the municipality contributions required
under Section | 3 |
| 7-172 of this Article for the fiscal years for which | 4 |
| revenues
from the levy will be received and all amounts due | 5 |
| for municipal contributions
for previous years. Any levy | 6 |
| adopted before the effective date of this
amendatory Act of | 7 |
| 1995 by a school district shall be considered valid and
| 8 |
| authorized to the extent that the amount was reasonably | 9 |
| calculated at the time
of the levy to provide for the | 10 |
| municipality contributions required under
Section 7-172 | 11 |
| for the fiscal years for which revenues from the levy will | 12 |
| be
received and all amounts due for municipal contributions | 13 |
| for previous years.
In no event shall a budget adopted by a | 14 |
| school district limit a levy of that
school district | 15 |
| adopted under this Section.
| 16 |
| (c) Any county which is served by a regional office of | 17 |
| education that
serves 2 or more
counties may include in its
| 18 |
| appropriation an amount sufficient to provide its | 19 |
| proportionate share of the
municipality contributions for that | 20 |
| regional office of education. The tax levy authorized by this | 21 |
| Section may include an amount
necessary to provide monies for | 22 |
| this contribution.
| 23 |
| (d) Any county that is a part of a multiple-county health | 24 |
| department
or consolidated health department which is formed | 25 |
| under "An Act in
relation to the establishment and maintenance | 26 |
| of county and
multiple-county public health departments", | 27 |
| approved July 9, 1943, as
amended, and which is a participating | 28 |
| instrumentality may include in the
county's appropriation an | 29 |
| amount sufficient to provide its proportionate
share of | 30 |
| municipality contributions of the department. The tax levy
| 31 |
| authorized by this Section may include the amount necessary to | 32 |
| provide
monies for this contribution.
| 33 |
| (d-5) A school district participating in a special | 34 |
| education joint
agreement created under Section 10-22.31 of the | 35 |
| School Code that is a
participating instrumentality may include | 36 |
| in the school district's
tax levy under this Section an amount |
|
|
|
HB4973 Engrossed |
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LRB094 15880 AMC 51102 b |
|
| 1 |
| sufficient to provide its
proportionate share of the | 2 |
| municipality contributions for current and prior
service by | 3 |
| employees of the participating instrumentality created under | 4 |
| the
joint agreement.
| 5 |
| (e) Such tax shall be levied and collected in like manner, | 6 |
| with the
general taxes of the municipality and shall be in | 7 |
| addition to all other
taxes which the municipality is now or | 8 |
| may hereafter be authorized to
levy upon all taxable property | 9 |
| therein, and shall be exclusive of and in
addition to the | 10 |
| amount of tax levied for general purposes under Section
8-3-1 | 11 |
| of the "Illinois Municipal Code", approved May 29, 1961, as
| 12 |
| amended, or under any other law or laws which may limit the | 13 |
| amount of
tax which the municipality may levy for general | 14 |
| purposes. The tax may
be levied by the governing body of the | 15 |
| municipality without being
authorized as being additional to | 16 |
| all other taxes by a vote of the
people of the municipality.
| 17 |
| (f) The county clerk of the county in which any such | 18 |
| municipality is
located, in reducing tax levies shall not | 19 |
| consider any such tax as a
part of the general tax levy for | 20 |
| municipality purposes, and shall not
include the same in the | 21 |
| limitation of any other tax rate which may be
extended.
| 22 |
| (g) The amount of the tax to be levied in any year shall, | 23 |
| within the
limits herein prescribed, be determined by the | 24 |
| governing body of the
respective municipality.
| 25 |
| (h) The revenue derived from any such tax levy shall be | 26 |
| used only
for the purposes specified in this Article and, as | 27 |
| collected, shall be
paid to the treasurer of the municipality | 28 |
| levying the tax. Monies
received by a county treasurer for use | 29 |
| in making contributions to a regional
office of education for | 30 |
| its
municipality contributions shall be held by him for that | 31 |
| purpose and paid to
the regional office of education in the | 32 |
| same manner as other
monies appropriated for the expense of the | 33 |
| regional office.
| 34 |
| (Source: P.A. 89-329, eff. 8-17-95; 90-448, eff. 8-16-97; | 35 |
| 90-511, eff.
8-22-97; 90-655, eff. 7-30-98.)
|
|
|
|
HB4973 Engrossed |
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LRB094 15880 AMC 51102 b |
|
| 1 |
| (40 ILCS 5/7-172) (from Ch. 108 1/2, par. 7-172)
| 2 |
| (Text of Section before amendment by P.A. 94-712 )
| 3 |
| Sec. 7-172. Contributions by participating municipalities | 4 |
| and
participating instrumentalities.
| 5 |
| (a) Each participating municipality and each participating
| 6 |
| instrumentality shall make payment to the fund as follows:
| 7 |
| 1. municipality contributions in an amount determined | 8 |
| by applying
the municipality contribution rate to each | 9 |
| payment of earnings paid to
each of its participating | 10 |
| employees;
| 11 |
| 2. an amount equal to the employee contributions | 12 |
| provided by paragraphs
(a) and (b) of Section 7-173, | 13 |
| whether or not the employee contributions are
withheld as | 14 |
| permitted by that Section;
| 15 |
| 3. all accounts receivable, together with interest | 16 |
| charged thereon,
as provided in Section 7-209;
| 17 |
| 4. if it has no participating employees with current | 18 |
| earnings, an
amount payable which, over a period of 20 | 19 |
| years beginning with the year
following an award of | 20 |
| benefit , will amortize , at the effective rate for
that year | 21 |
| any unfunded obligation. The unfunded obligation shall be | 22 |
| computed as provided in paragraph 2 of subsection (b) , any | 23 |
| negative balance in its municipality reserve resulting
| 24 |
| from the award . This amount when established will be | 25 |
| payable as a
separate contribution whether or not it later | 26 |
| has participating employees ; .
| 27 |
| 5. if it has fewer than 7 participating employees or | 28 |
| has a negative balance in its municipality reserve, the | 29 |
| greater of (A) an amount payable which, over a period of 20 | 30 |
| years, will amortize at the effective rate for that year | 31 |
| any unfunded obligation, computed as provided in paragraph | 32 |
| 2 of subsection (b) or (B) the amount required by paragraph | 33 |
| 1 of this subsection.
| 34 |
| (b) A separate municipality contribution rate shall be | 35 |
| determined
for each calendar year for all participating | 36 |
| municipalities together
with all instrumentalities thereof. |
|
|
|
HB4973 Engrossed |
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LRB094 15880 AMC 51102 b |
|
| 1 |
| The municipality contribution rate
shall be determined for | 2 |
| participating instrumentalities as if they were
participating | 3 |
| municipalities. The municipality contribution rate shall
be | 4 |
| the sum of the following percentages:
| 5 |
| 1. The percentage of earnings of all the participating | 6 |
| employees of all
participating municipalities and | 7 |
| participating instrumentalities which, if paid
over the | 8 |
| entire period of their service, will be sufficient when | 9 |
| combined with
all employee contributions available for the | 10 |
| payment of benefits, to provide
all annuities for | 11 |
| participating employees, and the $3,000 death benefit
| 12 |
| payable under Sections 7-158 and 7-164, such percentage to | 13 |
| be known as the
normal cost rate.
| 14 |
| 2. The percentage of earnings of the participating | 15 |
| employees of each
participating municipality and | 16 |
| participating instrumentalities necessary
to adjust for | 17 |
| the difference between the present value of all benefits,
| 18 |
| excluding temporary and total and permanent disability and | 19 |
| death benefits, to
be provided for its participating | 20 |
| employees and the sum of its accumulated
municipality | 21 |
| contributions and the accumulated employee contributions | 22 |
| and the
present value of expected future employee and | 23 |
| municipality contributions
pursuant to subparagraph 1 of | 24 |
| this paragraph (b). This adjustment shall be
spread over | 25 |
| the remainder of the period that is allowable under | 26 |
| generally
accepted accounting principles.
| 27 |
| 3. The percentage of earnings of the participating | 28 |
| employees of all
municipalities and participating | 29 |
| instrumentalities necessary to provide
the present value | 30 |
| of all temporary and total and permanent disability
| 31 |
| benefits granted during the most recent year for which | 32 |
| information is
available.
| 33 |
| 4. The percentage of earnings of the participating | 34 |
| employees of all
participating municipalities and | 35 |
| participating instrumentalities
necessary to provide the | 36 |
| present value of the net single sum death
benefits expected |
|
|
|
HB4973 Engrossed |
- 25 - |
LRB094 15880 AMC 51102 b |
|
| 1 |
| to become payable from the reserve established under
| 2 |
| Section 7-206 during the year for which this rate is fixed.
| 3 |
| 5. The percentage of earnings necessary to meet any | 4 |
| deficiency
arising in the Terminated Municipality Reserve.
| 5 |
| (c) A separate municipality contribution rate shall be | 6 |
| computed for
each participating municipality or participating | 7 |
| instrumentality
for its sheriff's law enforcement employees.
| 8 |
| A separate municipality contribution rate shall be | 9 |
| computed for the
sheriff's law enforcement employees of each | 10 |
| forest preserve district that
elects to have such employees. | 11 |
| For the period from January 1, 1986 to
December 31, 1986, such | 12 |
| rate shall be the forest preserve district's regular
rate plus | 13 |
| 2%.
| 14 |
| In the event that the Board determines that there is an | 15 |
| actuarial
deficiency in the account of any municipality with | 16 |
| respect to a person who
has elected to participate in the Fund | 17 |
| under Section 3-109.1 of this Code,
the Board may adjust the | 18 |
| municipality's contribution rate so as to make up
that | 19 |
| deficiency over such reasonable period of time as the Board may | 20 |
| determine.
| 21 |
| (d) The Board may establish a separate municipality | 22 |
| contribution
rate for all employees who are program | 23 |
| participants employed under the
federal Comprehensive | 24 |
| Employment Training Act by all of the
participating | 25 |
| municipalities and instrumentalities. The Board may also
| 26 |
| provide that, in lieu of a separate municipality rate for these
| 27 |
| employees, a portion of the municipality contributions for such | 28 |
| program
participants shall be refunded or an extra charge | 29 |
| assessed so that the
amount of municipality contributions | 30 |
| retained or received by the fund
for all CETA program | 31 |
| participants shall be an amount equal to that which
would be | 32 |
| provided by the separate municipality contribution rate for all
| 33 |
| such program participants. Refunds shall be made to prime | 34 |
| sponsors of
programs upon submission of a claim therefor and | 35 |
| extra charges shall be
assessed to participating | 36 |
| municipalities and instrumentalities. In
establishing the |
|
|
|
HB4973 Engrossed |
- 26 - |
LRB094 15880 AMC 51102 b |
|
| 1 |
| municipality contribution rate as provided in paragraph
(b) of | 2 |
| this Section, the use of a separate municipality contribution
| 3 |
| rate for program participants or the refund of a portion of the
| 4 |
| municipality contributions, as the case may be, may be | 5 |
| considered.
| 6 |
| (e) Computations of municipality contribution rates for | 7 |
| the
following calendar year shall be made prior to the | 8 |
| beginning of each
year, from the information available at the | 9 |
| time the computations are
made, and on the assumption that the | 10 |
| employees in each participating
municipality or participating | 11 |
| instrumentality at such time will continue
in service until the | 12 |
| end of such calendar year at their respective rates
of earnings | 13 |
| at such time.
| 14 |
| (f) Any municipality which is the recipient of State | 15 |
| allocations
representing that municipality's contributions for | 16 |
| retirement annuity
purposes on behalf of its employees as | 17 |
| provided in Section 12-21.16 of
the Illinois Public Aid Code | 18 |
| shall pay the allocations so
received to the Board for such | 19 |
| purpose. Estimates of State allocations to
be received during | 20 |
| any taxable year shall be considered in the
determination of | 21 |
| the municipality's tax rate for that year under Section
7-171. | 22 |
| If a special tax is levied under Section 7-171, none of the
| 23 |
| proceeds may be used to reimburse the municipality for the | 24 |
| amount of State
allocations received and paid to the Board. Any | 25 |
| multiple-county or
consolidated health department which | 26 |
| receives contributions from a county
under Section 11.2 of "An | 27 |
| Act in relation to establishment and maintenance
of county and | 28 |
| multiple-county health departments", approved July 9, 1943,
as | 29 |
| amended, or distributions under Section 3 of the Department of | 30 |
| Public
Health Act, shall use these only for municipality | 31 |
| contributions by the
health department.
| 32 |
| (g) Municipality contributions for the several purposes | 33 |
| specified
shall, for township treasurers and employees in the | 34 |
| offices of the
township treasurers who meet the qualifying | 35 |
| conditions for coverage
hereunder, be allocated among the | 36 |
| several school districts and parts of
school districts serviced |
|
|
|
HB4973 Engrossed |
- 27 - |
LRB094 15880 AMC 51102 b |
|
| 1 |
| by such treasurers and employees in the
proportion which the | 2 |
| amount of school funds of each district or part of
a district | 3 |
| handled by the treasurer bears to the total amount of all
| 4 |
| school funds handled by the treasurer.
| 5 |
| From the funds subject to allocation among districts and | 6 |
| parts of
districts pursuant to the School Code, the trustees | 7 |
| shall withhold the
proportionate share of the liability for | 8 |
| municipality contributions imposed
upon such districts by this | 9 |
| Section, in respect to such township treasurers
and employees | 10 |
| and remit the same to the Board.
| 11 |
| The municipality contribution rate for an educational | 12 |
| service center shall
initially be the same rate for each year | 13 |
| as the regional office of
education or school district
which | 14 |
| serves as its administrative agent. When actuarial data become
| 15 |
| available, a separate rate shall be established as provided in | 16 |
| subparagraph
(i) of this Section.
| 17 |
| The municipality contribution rate for a public agency, | 18 |
| other than a
vocational education cooperative, formed under the | 19 |
| Intergovernmental
Cooperation Act shall initially be the | 20 |
| average rate for the municipalities
which are parties to the | 21 |
| intergovernmental agreement. When actuarial data
become | 22 |
| available, a separate rate shall be established as provided in
| 23 |
| subparagraph (i) of this Section.
| 24 |
| (h) Each participating municipality and participating
| 25 |
| instrumentality shall make the contributions in the amounts | 26 |
| provided in
this Section in the manner prescribed from time to | 27 |
| time by the Board and
all such contributions shall be | 28 |
| obligations of the respective
participating municipalities and | 29 |
| participating instrumentalities to this
fund. The failure to | 30 |
| deduct any employee contributions shall not
relieve the | 31 |
| participating municipality or participating instrumentality
of | 32 |
| its obligation to this fund. Delinquent payments of | 33 |
| contributions
due under this Section may, with interest, be | 34 |
| recovered by civil action
against the participating | 35 |
| municipalities or participating
instrumentalities. | 36 |
| Municipality contributions, other than the amount
necessary |
|
|
|
HB4973 Engrossed |
- 28 - |
LRB094 15880 AMC 51102 b |
|
| 1 |
| for employee contributions and Social Security contributions, | 2 |
| for
periods of service by employees from whose earnings no | 3 |
| deductions were made
for employee contributions to the fund, | 4 |
| may be charged to the municipality
reserve for the municipality | 5 |
| or participating instrumentality.
| 6 |
| (i) Contributions by participating instrumentalities shall | 7 |
| be
determined as provided herein except that the percentage | 8 |
| derived under
subparagraph 2 of paragraph (b) of this Section, | 9 |
| and the amount payable
under subparagraph 4
5 of paragraph (a) | 10 |
| of this Section, shall be based on
an amortization period of 10 | 11 |
| years.
| 12 |
| (j) Each county with current or former elected county | 13 |
| officers, as defined in Section 7-145.1, participating in the | 14 |
| alternative annuity program established under that Section | 15 |
| shall have a separate municipality contribution rate computed | 16 |
| for those elected county officers.
| 17 |
| (Source: P.A. 92-424, eff. 8-17-01.)
| 18 |
| (Text of Section after amendment by P.A. 94-712 )
| 19 |
| Sec. 7-172. Contributions by participating municipalities | 20 |
| and
participating instrumentalities.
| 21 |
| (a) Each participating municipality and each participating
| 22 |
| instrumentality shall make payment to the fund as follows:
| 23 |
| 1. municipality contributions in an amount determined | 24 |
| by applying
the municipality contribution rate to each | 25 |
| payment of earnings paid to
each of its participating | 26 |
| employees;
| 27 |
| 2. an amount equal to the employee contributions | 28 |
| provided by paragraphs
(a) and (b) of Section 7-173, | 29 |
| whether or not the employee contributions are
withheld as | 30 |
| permitted by that Section;
| 31 |
| 3. all accounts receivable, together with interest | 32 |
| charged thereon,
as provided in Section 7-209;
| 33 |
| 4. if it has no participating employees with current | 34 |
| earnings, an
amount payable which, over a period of 20 | 35 |
| years beginning with the year
following an award of |
|
|
|
HB4973 Engrossed |
- 29 - |
LRB094 15880 AMC 51102 b |
|
| 1 |
| benefit , will amortize , at the effective rate for
that year | 2 |
| any unfunded obligation. The unfunded obligation shall be | 3 |
| computed as provided in paragraph 2 of subsection (b) , any | 4 |
| negative balance in its municipality reserve resulting
| 5 |
| from the award . This amount when established will be | 6 |
| payable as a
separate contribution whether or not it later | 7 |
| has participating employees ; .
| 8 |
| 5. if it has fewer than 7 participating employees or | 9 |
| has a negative balance in its municipality reserve, the | 10 |
| greater of (A) an amount payable which, over a period of 20 | 11 |
| years, will amortize at the effective rate for that year | 12 |
| any unfunded obligation, computed as provided in paragraph | 13 |
| 2 of subsection (b) or (B) the amount required by paragraph | 14 |
| 1 of this subsection.
| 15 |
| (b) A separate municipality contribution rate shall be | 16 |
| determined
for each calendar year for all participating | 17 |
| municipalities together
with all instrumentalities thereof. | 18 |
| The municipality contribution rate
shall be determined for | 19 |
| participating instrumentalities as if they were
participating | 20 |
| municipalities. The municipality contribution rate shall
be | 21 |
| the sum of the following percentages:
| 22 |
| 1. The percentage of earnings of all the participating | 23 |
| employees of all
participating municipalities and | 24 |
| participating instrumentalities which, if paid
over the | 25 |
| entire period of their service, will be sufficient when | 26 |
| combined with
all employee contributions available for the | 27 |
| payment of benefits, to provide
all annuities for | 28 |
| participating employees, and the $3,000 death benefit
| 29 |
| payable under Sections 7-158 and 7-164, such percentage to | 30 |
| be known as the
normal cost rate.
| 31 |
| 2. The percentage of earnings of the participating | 32 |
| employees of each
participating municipality and | 33 |
| participating instrumentalities necessary
to adjust for | 34 |
| the difference between the present value of all benefits,
| 35 |
| excluding temporary and total and permanent disability and | 36 |
| death benefits, to
be provided for its participating |
|
|
|
HB4973 Engrossed |
- 30 - |
LRB094 15880 AMC 51102 b |
|
| 1 |
| employees and the sum of its accumulated
municipality | 2 |
| contributions and the accumulated employee contributions | 3 |
| and the
present value of expected future employee and | 4 |
| municipality contributions
pursuant to subparagraph 1 of | 5 |
| this paragraph (b). This adjustment shall be
spread over | 6 |
| the remainder of the period that is allowable under | 7 |
| generally
accepted accounting principles.
| 8 |
| 3. The percentage of earnings of the participating | 9 |
| employees of all
municipalities and participating | 10 |
| instrumentalities necessary to provide
the present value | 11 |
| of all temporary and total and permanent disability
| 12 |
| benefits granted during the most recent year for which | 13 |
| information is
available.
| 14 |
| 4. The percentage of earnings of the participating | 15 |
| employees of all
participating municipalities and | 16 |
| participating instrumentalities
necessary to provide the | 17 |
| present value of the net single sum death
benefits expected | 18 |
| to become payable from the reserve established under
| 19 |
| Section 7-206 during the year for which this rate is fixed.
| 20 |
| 5. The percentage of earnings necessary to meet any | 21 |
| deficiency
arising in the Terminated Municipality Reserve.
| 22 |
| (c) A separate municipality contribution rate shall be | 23 |
| computed for
each participating municipality or participating | 24 |
| instrumentality
for its sheriff's law enforcement employees.
| 25 |
| A separate municipality contribution rate shall be | 26 |
| computed for the
sheriff's law enforcement employees of each | 27 |
| forest preserve district that
elects to have such employees. | 28 |
| For the period from January 1, 1986 to
December 31, 1986, such | 29 |
| rate shall be the forest preserve district's regular
rate plus | 30 |
| 2%.
| 31 |
| In the event that the Board determines that there is an | 32 |
| actuarial
deficiency in the account of any municipality with | 33 |
| respect to a person who
has elected to participate in the Fund | 34 |
| under Section 3-109.1 of this Code,
the Board may adjust the | 35 |
| municipality's contribution rate so as to make up
that | 36 |
| deficiency over such reasonable period of time as the Board may |
|
|
|
HB4973 Engrossed |
- 31 - |
LRB094 15880 AMC 51102 b |
|
| 1 |
| determine.
| 2 |
| (d) The Board may establish a separate municipality | 3 |
| contribution
rate for all employees who are program | 4 |
| participants employed under the
federal Comprehensive | 5 |
| Employment Training Act by all of the
participating | 6 |
| municipalities and instrumentalities. The Board may also
| 7 |
| provide that, in lieu of a separate municipality rate for these
| 8 |
| employees, a portion of the municipality contributions for such | 9 |
| program
participants shall be refunded or an extra charge | 10 |
| assessed so that the
amount of municipality contributions | 11 |
| retained or received by the fund
for all CETA program | 12 |
| participants shall be an amount equal to that which
would be | 13 |
| provided by the separate municipality contribution rate for all
| 14 |
| such program participants. Refunds shall be made to prime | 15 |
| sponsors of
programs upon submission of a claim therefor and | 16 |
| extra charges shall be
assessed to participating | 17 |
| municipalities and instrumentalities. In
establishing the | 18 |
| municipality contribution rate as provided in paragraph
(b) of | 19 |
| this Section, the use of a separate municipality contribution
| 20 |
| rate for program participants or the refund of a portion of the
| 21 |
| municipality contributions, as the case may be, may be | 22 |
| considered.
| 23 |
| (e) Computations of municipality contribution rates for | 24 |
| the
following calendar year shall be made prior to the | 25 |
| beginning of each
year, from the information available at the | 26 |
| time the computations are
made, and on the assumption that the | 27 |
| employees in each participating
municipality or participating | 28 |
| instrumentality at such time will continue
in service until the | 29 |
| end of such calendar year at their respective rates
of earnings | 30 |
| at such time.
| 31 |
| (f) Any municipality which is the recipient of State | 32 |
| allocations
representing that municipality's contributions for | 33 |
| retirement annuity
purposes on behalf of its employees as | 34 |
| provided in Section 12-21.16 of
the Illinois Public Aid Code | 35 |
| shall pay the allocations so
received to the Board for such | 36 |
| purpose. Estimates of State allocations to
be received during |
|
|
|
HB4973 Engrossed |
- 32 - |
LRB094 15880 AMC 51102 b |
|
| 1 |
| any taxable year shall be considered in the
determination of | 2 |
| the municipality's tax rate for that year under Section
7-171. | 3 |
| If a special tax is levied under Section 7-171, none of the
| 4 |
| proceeds may be used to reimburse the municipality for the | 5 |
| amount of State
allocations received and paid to the Board. Any | 6 |
| multiple-county or
consolidated health department which | 7 |
| receives contributions from a county
under Section 11.2 of "An | 8 |
| Act in relation to establishment and maintenance
of county and | 9 |
| multiple-county health departments", approved July 9, 1943,
as | 10 |
| amended, or distributions under Section 3 of the Department of | 11 |
| Public
Health Act, shall use these only for municipality | 12 |
| contributions by the
health department.
| 13 |
| (g) Municipality contributions for the several purposes | 14 |
| specified
shall, for township treasurers and employees in the | 15 |
| offices of the
township treasurers who meet the qualifying | 16 |
| conditions for coverage
hereunder, be allocated among the | 17 |
| several school districts and parts of
school districts serviced | 18 |
| by such treasurers and employees in the
proportion which the | 19 |
| amount of school funds of each district or part of
a district | 20 |
| handled by the treasurer bears to the total amount of all
| 21 |
| school funds handled by the treasurer.
| 22 |
| From the funds subject to allocation among districts and | 23 |
| parts of
districts pursuant to the School Code, the trustees | 24 |
| shall withhold the
proportionate share of the liability for | 25 |
| municipality contributions imposed
upon such districts by this | 26 |
| Section, in respect to such township treasurers
and employees | 27 |
| and remit the same to the Board.
| 28 |
| The municipality contribution rate for an educational | 29 |
| service center shall
initially be the same rate for each year | 30 |
| as the regional office of
education or school district
which | 31 |
| serves as its administrative agent. When actuarial data become
| 32 |
| available, a separate rate shall be established as provided in | 33 |
| subparagraph
(i) of this Section.
| 34 |
| The municipality contribution rate for a public agency, | 35 |
| other than a
vocational education cooperative, formed under the | 36 |
| Intergovernmental
Cooperation Act shall initially be the |
|
|
|
HB4973 Engrossed |
- 33 - |
LRB094 15880 AMC 51102 b |
|
| 1 |
| average rate for the municipalities
which are parties to the | 2 |
| intergovernmental agreement. When actuarial data
become | 3 |
| available, a separate rate shall be established as provided in
| 4 |
| subparagraph (i) of this Section.
| 5 |
| (h) Each participating municipality and participating
| 6 |
| instrumentality shall make the contributions in the amounts | 7 |
| provided in
this Section in the manner prescribed from time to | 8 |
| time by the Board and
all such contributions shall be | 9 |
| obligations of the respective
participating municipalities and | 10 |
| participating instrumentalities to this
fund. The failure to | 11 |
| deduct any employee contributions shall not
relieve the | 12 |
| participating municipality or participating instrumentality
of | 13 |
| its obligation to this fund. Delinquent payments of | 14 |
| contributions
due under this Section may, with interest, be | 15 |
| recovered by civil action
against the participating | 16 |
| municipalities or participating
instrumentalities. | 17 |
| Municipality contributions, other than the amount
necessary | 18 |
| for employee contributions and Social Security contributions, | 19 |
| for
periods of service by employees from whose earnings no | 20 |
| deductions were made
for employee contributions to the fund, | 21 |
| may be charged to the municipality
reserve for the municipality | 22 |
| or participating instrumentality.
| 23 |
| (i) Contributions by participating instrumentalities shall | 24 |
| be
determined as provided herein except that the percentage | 25 |
| derived under
subparagraph 2 of paragraph (b) of this Section, | 26 |
| and the amount payable
under subparagraph 4
5 of paragraph (a) | 27 |
| of this Section, shall be based on
an amortization period of 10 | 28 |
| years.
| 29 |
| (j) Notwithstanding the other provisions of this Section, | 30 |
| the additional unfunded liability accruing as a result of this | 31 |
| amendatory Act of the 94th General Assembly
shall be amortized | 32 |
| over a period of 30 years beginning on January 1 of the
second | 33 |
| calendar year following the calendar year in which this | 34 |
| amendatory Act takes effect, except that the employer may | 35 |
| provide for a longer amortization period by adopting a | 36 |
| resolution or ordinance specifying a 35-year or 40-year period |
|
|
|
HB4973 Engrossed |
- 34 - |
LRB094 15880 AMC 51102 b |
|
| 1 |
| and submitting a certified copy of the ordinance or resolution | 2 |
| to the fund no later than June 1 of the calendar year following | 3 |
| the calendar year in which this amendatory Act takes effect.
| 4 |
| (k) Each county with current or former elected county | 5 |
| officers, as defined in Section 7-145.1, participating in the | 6 |
| alternative annuity program established under that Section | 7 |
| shall have a separate municipality contribution rate computed | 8 |
| for those elected county officers.
| 9 |
| (Source: P.A. 94-712, eff. 6-1-06.)
| 10 |
| (40 ILCS 5/7-173) (from Ch. 108 1/2, par. 7-173)
| 11 |
| Sec. 7-173. Contributions by employees.
| 12 |
| (a) Each participating employee shall make contributions | 13 |
| to the fund as
follows:
| 14 |
| 1. For retirement annuity purposes, normal | 15 |
| contributions of 3 3/4%
of earnings.
| 16 |
| 2. Additional contributions of such percentages of | 17 |
| each payment of
earnings, as shall be elected by the | 18 |
| employee for retirement annuity
purposes, but not in excess | 19 |
| of 10%. The selected rate shall be
applicable to all | 20 |
| earnings beginning on the first day of the second
month | 21 |
| following receipt by the Board of written notice of | 22 |
| election to
make such contributions. Additional | 23 |
| contributions at the selected rate
shall be made | 24 |
| concurrently with normal contributions.
| 25 |
| 3. Survivor contributions, by each participating | 26 |
| employee, of 3/4%
of each payment of earnings.
| 27 |
| (b) Each employee shall make contributions to the fund for | 28 |
| Federal
Social Security taxes, for periods during which he is a | 29 |
| covered
employee, as required by the Social Security Enabling | 30 |
| Act and federal law . For
participating employees, such | 31 |
| contributions shall be in addition to
those required under | 32 |
| paragraph (a) of this Section.
| 33 |
| (c) Contributions shall be deducted from each | 34 |
| corresponding payment
of earnings paid to each employee and | 35 |
| shall be remitted to the board by
the participating |
|
|
|
HB4973 Engrossed |
- 35 - |
LRB094 15880 AMC 51102 b |
|
| 1 |
| municipality or participating instrumentality making
such | 2 |
| payment. The remittance, together with a report of the earnings
| 3 |
| and contributions shall be made as directed by the board. For | 4 |
| township
treasurers and employees of township treasurers | 5 |
| qualifying as employees
hereunder, the contributions herein | 6 |
| required as deductions from salary
shall be withheld by the | 7 |
| school township trustees from funds available
for the payment | 8 |
| of the compensation of such treasurers and employees as
| 9 |
| provided in the School Code and remitted to the board.
| 10 |
| (d) An employee who has made additional contributions under
| 11 |
| paragraph (a)2 of this Section may upon retirement or at any | 12 |
| time prior
thereto, elect to withdraw the total of such | 13 |
| additional contributions
including interest credited thereon | 14 |
| to the end of the preceding calendar
year.
| 15 |
| (e) Failure to make the deductions for employee | 16 |
| contributions
provided in paragraph (c) of this Section shall | 17 |
| not relieve the employee
from liability for such contributions. | 18 |
| The amount of such liability may
be deducted, with interest | 19 |
| charged under Section 7-209, from any
annuities or benefits | 20 |
| payable hereunder to the employee or any other
person receiving | 21 |
| an annuity or benefit by reason of such employee's
| 22 |
| participation.
| 23 |
| (f) A participating employee who has at least 40 years of | 24 |
| creditable
service in the Fund may elect to cease making the | 25 |
| contributions required
under this Section. The status of the | 26 |
| employee under this Article shall be
unaffected by this | 27 |
| election, except that the employee shall not receive any
| 28 |
| additional creditable service for the periods of employment | 29 |
| following the
election. An election under this subsection | 30 |
| relieves the employer from
making additional employer | 31 |
| contributions in relation to that employee.
| 32 |
| (Source: P.A. 87-1265.)
| 33 |
| (40 ILCS 5/7-204) (from Ch. 108 1/2, par. 7-204)
| 34 |
| Sec. 7-204. Municipality reserves.
| 35 |
| (a) Except as provided in paragraph (b) of this Section, |
|
|
|
HB4973 Engrossed |
- 36 - |
LRB094 15880 AMC 51102 b |
|
| 1 |
| each participating
municipality and its instrumentalities, and | 2 |
| each participating instrumentality,
shall be treated as an | 3 |
| independent unit within the fund, except that if it has
any | 4 |
| sheriff's law enforcement employees or any elected county | 5 |
| officers (as
defined in Section 7-154.1) participating in the | 6 |
| alternative annuity program ,
it shall be treated as multiple
2
| 7 |
| independent units, one for its
sheriff's law enforcement | 8 |
| employees , one for its elected county officers
participating in | 9 |
| the alternative retirement program, and one
the
second for its | 10 |
| other employees. Separate municipality reserves shall be
| 11 |
| maintained in such form and detail as is necessary to show the | 12 |
| net accumulated
balances of each municipality, created or | 13 |
| arising under this Article.
| 14 |
| (b) In the event of termination and dissolution of any | 15 |
| participating
municipality or participating instrumentality , | 16 |
| if
and its obligations
are not assumed or transferred by law to | 17 |
| another municipality, any net debit
or credit balance remaining | 18 |
| in the reserve account of such municipality, or
participating | 19 |
| instrumentality, shall be transferred to a Terminated
| 20 |
| Municipality Reserve Account which shall be used to fund any | 21 |
| future
benefits of its employees arising out of service with | 22 |
| the terminated
municipality or participating instrumentality.
| 23 |
| Any deficiency arising in the Terminated Municipality | 24 |
| Reserve Account
shall be eliminated by a contribution by all | 25 |
| remaining municipalities and
participating instrumentalities | 26 |
| at a uniform percent of payroll, to be
determined, collected | 27 |
| with other contributions required under Section 7-172.
| 28 |
| (c) The municipality reserve for each municipality or | 29 |
| participating
instrumentality that has any sheriff's law | 30 |
| enforcement employees shall be
divided into 2 reserves. A | 31 |
| reserve for the sheriff's law enforcement
employees shall be | 32 |
| allocated an amount in the same proportion to the total
amount | 33 |
| in reserve as the total number of sheriff's law enforcement | 34 |
| employees
is to the total participating employees of the | 35 |
| municipality or participating
instrumentality at that date. | 36 |
| The remainder shall be allocated to the reserve
for other |
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| employees.
| 2 |
| (d) The Fund shall determine what amounts shall be | 3 |
| transferred or credited
to the reserve for elected county | 4 |
| officers participating in the alternative
retirement program.
| 5 |
| (Source: P.A. 87-740.)
| 6 |
| (40 ILCS 5/7-205) (from Ch. 108 1/2, par. 7-205)
| 7 |
| Sec. 7-205. Reserves for annuities. Appropriate reserves | 8 |
| shall be created
for payment of all annuities
granted under | 9 |
| this Article at the time such annuities are granted and in
| 10 |
| amounts determined to be necessary under actuarial tables | 11 |
| adopted by the
Board upon recommendation of the actuary of the | 12 |
| fund. All annuities payable
shall be charged to the annuity | 13 |
| reserve.
| 14 |
| 1. Amounts credited to annuity reserves shall be derived by | 15 |
| transfer of
all the employee credits from the appropriate | 16 |
| employee reserves and by
charges to the municipality reserve of | 17 |
| those municipalities in which the
retiring employee has | 18 |
| accumulated service. If a retiring employee has
accumulated | 19 |
| service in more than one participating municipality or
| 20 |
| participating instrumentality, (i) in the case of concurrent | 21 |
| service, aggregate municipality charges shall be
prorated on a | 22 |
| basis of the employee's earnings in case of concurrent
service
| 23 |
| and (ii) in the case of nonconcurrent service, aggregate | 24 |
| municipality charges shall be prorated among all nonfinal | 25 |
| employers on a basis of service credit and projected earnings | 26 |
| with those employers and, for the final employer, municipality | 27 |
| charges shall be paid on a basis of the remaining cost of the | 28 |
| employee's pension, as determined by the Board.
creditable | 29 |
| service in other cases.
| 30 |
| 2. Supplemental annuities shall be handled as a separate | 31 |
| annuity and
amounts to be credited to the annuity reserve | 32 |
| therefor shall be derived in
the same manner as a regular | 33 |
| annuity.
| 34 |
| 3. When a retirement annuity is granted to an employee with | 35 |
| a spouse
eligible for a surviving spouse annuity, there shall |
|
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| be credited to the
annuity reserve an amount to fund the cost | 2 |
| of both the retirement and
surviving spouse annuity as a joint | 3 |
| and survivors annuity.
| 4 |
| 4. Beginning January 1, 1989, when a retirement annuity is | 5 |
| awarded, an
amount equal to the present
value of the $3,000 | 6 |
| death benefit payable upon the death of the annuitant
shall be | 7 |
| transferred to the annuity reserve from the appropriate
| 8 |
| municipality reserves in the same manner as the transfer for | 9 |
| annuities.
| 10 |
| 5. All annuity reserves shall be revalued annually as of | 11 |
| December 31.
Beginning as of December 31, 1973, adjustment | 12 |
| required therein by such
revaluation shall be charged or | 13 |
| credited to the earnings and experience
variation reserve.
| 14 |
| 6. There shall be credited to the annuity reserve all of | 15 |
| the
payments
made by annuitants under Section 7-144.2, plus an
| 16 |
| additional amount from the
earnings and experience variation | 17 |
| reserve to fund the cost of the
incremental annuities granted | 18 |
| to annuitants making these payments.
| 19 |
| 7. As of December 31, 1972, the excess in the annuity | 20 |
| reserve shall be
transferred to the municipality reserves. An | 21 |
| amount equal to the deficiency
in the reserve of participating | 22 |
| municipalities and participating
instrumentalities which have | 23 |
| no participating employees shall be allocated
to their | 24 |
| reserves. The remainder shall be allocated in amounts
| 25 |
| proportionate to the present value, as of January 1, 1972, of | 26 |
| annuities of
annuitants of the remaining participating | 27 |
| municipalities and participating
instrumentalities.
| 28 |
| (Source: P.A. 89-136, eff. 7-14-95.)
| 29 |
| (40 ILCS 5/7-211) (from Ch. 108 1/2, par. 7-211)
| 30 |
| Sec. 7-211. Authorizations.
| 31 |
| (a) Each participating municipality and instrumentality | 32 |
| thereof and
each participating instrumentality shall:
| 33 |
| 1. Deduct all normal and additional contributions and | 34 |
| contributions
for federal Social Security taxes as | 35 |
| required by the Social Security
Enabling Act from each |
|
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| payment of earnings payable to each participating
employee | 2 |
| who is entitled to any earnings from such municipality or
| 3 |
| instrumentality thereof or participating instrumentality, | 4 |
| and remit
all such normal and additional contributions | 5 |
| immediately to the board and all such contributions for | 6 |
| federal Social Security taxes in the manner provided by | 7 |
| law ; and
| 8 |
| 2. Pay to the board contributions required by this | 9 |
| Article.
| 10 |
| (b) Each participating employee shall, by virtue of the | 11 |
| payment of
contributions to this fund, receive a vested | 12 |
| interest in the annuities
and benefits provided in this Article | 13 |
| and in consideration of such vested
interest shall be deemed to | 14 |
| have agreed and authorized the deduction from
earnings of all | 15 |
| contributions payable to this fund in accordance with this
| 16 |
| Article.
| 17 |
| (c) Payment of earnings less the amounts of contributions | 18 |
| provided in
this Article and in the Social Security Enabling | 19 |
| Act shall be a full
and complete discharge of all claims for | 20 |
| payment for services rendered
by any employee during the period | 21 |
| covered by any such payment.
| 22 |
| (d) Any covered annuitant may authorize the withholding of | 23 |
| all or a portion
of his or her annuity, for the payment of | 24 |
| premiums on group accident and health
insurance provided | 25 |
| pursuant to Section 7-199.1. The annuitant may revoke
this | 26 |
| authorization at any time.
| 27 |
| (Source: P.A. 91-887, eff. 7-6-00.)
| 28 |
| Section 90. The State Mandates Act is amended by adding | 29 |
| Section 8.30 as
follows:
| 30 |
| (30 ILCS 805/8.30 new)
| 31 |
| Sec. 8.30. Exempt mandate. Notwithstanding Sections 6 and 8 | 32 |
| of this
Act, no reimbursement by the State is required for the | 33 |
| implementation of
any mandate created by this amendatory Act of | 34 |
| the 94th General Assembly.
|
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| Section 95. No acceleration or delay. Where this Act makes | 2 |
| changes in a
statute that is represented in this Act by text | 3 |
| that is not yet or no longer in
effect (for example, a Section | 4 |
| represented by multiple versions), the use of
that text does | 5 |
| not accelerate or delay the taking effect of (i) the changes
| 6 |
| made by this Act or (ii) provisions derived from any other | 7 |
| Public Act.
| 8 |
| Section 99. Effective date. This Act takes effect upon | 9 |
| becoming law.
|
|