Full Text of SB3652 102nd General Assembly
SB3652enr 102ND GENERAL ASSEMBLY |
| | SB3652 Enrolled | | LRB102 22513 RPS 31654 b |
|
| 1 | | AN ACT concerning public employee benefits.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Pension Code is amended by | 5 | | changing Section 7-141.1 as follows: | 6 | | (40 ILCS 5/7-141.1)
| 7 | | (Text of Section before amendment by P.A. 102-210 ) | 8 | | Sec. 7-141.1. Early retirement incentive.
| 9 | | (a) The General Assembly finds and declares that:
| 10 | | (1) Units of local government across the State have | 11 | | been functioning
under a financial crisis.
| 12 | | (2) This financial crisis is expected to continue.
| 13 | | (3) Units of local government must depend on | 14 | | additional sources of
revenue and, when those sources are | 15 | | not forthcoming, must establish
cost-saving programs.
| 16 | | (4) An early retirement incentive designed | 17 | | specifically to target
highly-paid senior employees could | 18 | | result in significant annual cost
savings.
| 19 | | (5) The early retirement incentive should be made | 20 | | available only to
those units of local government that | 21 | | determine that an early retirement
incentive is in their | 22 | | best interest.
| 23 | | (6) A unit of local government adopting a program of |
| | | SB3652 Enrolled | - 2 - | LRB102 22513 RPS 31654 b |
|
| 1 | | early retirement
incentives under this Section is | 2 | | encouraged to implement personnel procedures
to prohibit, | 3 | | for at least 5 years, the rehiring (whether on payroll or | 4 | | by
independent contract) of employees who receive early | 5 | | retirement incentives.
| 6 | | (7) A unit of local government adopting a program of | 7 | | early retirement
incentives under this Section is also | 8 | | encouraged to replace as few of the
participating | 9 | | employees as possible and to hire replacement employees | 10 | | for
salaries totaling no more than 80% of the total | 11 | | salaries formerly paid to the
employees who participate in | 12 | | the early retirement program.
| 13 | | It is the primary purpose of this Section to encourage | 14 | | units of local
government that can realize true cost savings, | 15 | | or have determined that an early
retirement program is in | 16 | | their best interest, to implement an early retirement
program.
| 17 | | (b) Until the effective date of this amendatory Act of | 18 | | 1997, this
Section does not apply to any employer that is a | 19 | | city, village, or incorporated
town, nor to the employees of | 20 | | any such employer. Beginning on the effective
date of this | 21 | | amendatory Act of 1997, any employer under this Article, | 22 | | including
an employer that is a city, village, or incorporated | 23 | | town, may establish an
early retirement incentive program for | 24 | | its employees under this Section. The
decision of a city, | 25 | | village, or incorporated town to consider or establish an
| 26 | | early retirement program is at the sole discretion of that |
| | | SB3652 Enrolled | - 3 - | LRB102 22513 RPS 31654 b |
|
| 1 | | city, village, or
incorporated town, and nothing in this | 2 | | amendatory Act of 1997 limits or
otherwise diminishes this | 3 | | discretion. Nothing contained in this Section shall
be | 4 | | construed to require a city, village, or incorporated town to | 5 | | establish an
early retirement program and no city, village, or | 6 | | incorporated town may be
compelled to implement such a | 7 | | program.
| 8 | | The benefits provided in this Section are available only | 9 | | to members
employed by a participating employer that has filed | 10 | | with the Board of the
Fund a resolution or ordinance expressly | 11 | | providing for the creation of an
early retirement incentive | 12 | | program under this Section for its employees and
specifying | 13 | | the effective date of the early retirement incentive program.
| 14 | | Subject to the limitation in subsection (h), an employer may | 15 | | adopt a resolution
or ordinance providing a program of early | 16 | | retirement incentives under this
Section at any time.
| 17 | | The resolution or ordinance shall be in substantially the | 18 | | following form:
| 19 | | RESOLUTION (ORDINANCE) NO. ....
| 20 | | A RESOLUTION (ORDINANCE) ADOPTING AN EARLY
| 21 | | RETIREMENT INCENTIVE PROGRAM FOR EMPLOYEES
| 22 | | IN THE ILLINOIS MUNICIPAL RETIREMENT FUND
| 23 | | WHEREAS, Section 7-141.1 of the Illinois Pension Code | 24 | | provides that a
participating employer may elect to adopt an | 25 | | early retirement
incentive program offered by the Illinois |
| | | SB3652 Enrolled | - 4 - | LRB102 22513 RPS 31654 b |
|
| 1 | | Municipal Retirement Fund by
adopting a resolution or | 2 | | ordinance; and
| 3 | | WHEREAS, The goal of adopting an early retirement program | 4 | | is
to realize a substantial savings in personnel costs by | 5 | | offering early
retirement incentives to employees who have | 6 | | accumulated many years of
service credit; and
| 7 | | WHEREAS, Implementation of the early retirement program | 8 | | will provide a
budgeting tool to aid in controlling payroll | 9 | | costs; and
| 10 | | WHEREAS, The (name of governing body) has determined that | 11 | | the adoption of an
early retirement incentive program is in | 12 | | the best interests of the (name of
participating employer); | 13 | | therefore be it
| 14 | | RESOLVED (ORDAINED) by the (name of governing body) of | 15 | | (name of
participating employer) that:
| 16 | | (1) The (name of participating employer) does hereby adopt | 17 | | the Illinois
Municipal Retirement Fund early retirement | 18 | | incentive program as provided in
Section 7-141.1 of the | 19 | | Illinois Pension Code. The early retirement incentive
program | 20 | | shall take effect on (date).
| 21 | | (2) In order to help achieve a true cost savings, a person | 22 | | who retires under
the early retirement incentive program shall | 23 | | lose those incentives if he or she
later accepts employment | 24 | | with or enters into a personal services contract with any IMRF | 25 | | employer in a position for which
participation in IMRF is | 26 | | required or is elected by the employee .
|
| | | SB3652 Enrolled | - 5 - | LRB102 22513 RPS 31654 b |
|
| 1 | | (3) In order to utilize an early retirement incentive as a | 2 | | budgeting
tool, the (name of participating employer) will use | 3 | | its best efforts either
to limit the number of employees who | 4 | | replace the employees who retire under
the early retirement | 5 | | program or to limit the salaries paid to the employees who
| 6 | | replace the employees who retire under the early retirement | 7 | | program.
| 8 | | (4) The effective date of each employee's retirement under | 9 | | this early
retirement program shall be set by (name of | 10 | | employer) and shall be no
earlier than the effective date of | 11 | | the program and no later than one year after
that effective | 12 | | date; except that the employee may require that the retirement
| 13 | | date set by the employer be no later than the June 30 next | 14 | | occurring after the
effective date of the program and no | 15 | | earlier than the date upon which the
employee qualifies for | 16 | | retirement.
| 17 | | (5) To be eligible for the early retirement incentive | 18 | | under this Section,
the employee must have attained age 50 and | 19 | | have at least 20 years of creditable
service by his or her | 20 | | retirement date.
| 21 | | (6) The (clerk or secretary) shall promptly file a | 22 | | certified copy of
this resolution (ordinance) with the Board | 23 | | of Trustees of the Illinois
Municipal Retirement Fund.
| 24 | | CERTIFICATION
| 25 | | I, (name), the (clerk or secretary) of the (name of | 26 | | participating
employer) of the County of (name), State of |
| | | SB3652 Enrolled | - 6 - | LRB102 22513 RPS 31654 b |
|
| 1 | | Illinois, do hereby certify
that I am the keeper of the books | 2 | | and records of the (name of employer)
and that the foregoing is | 3 | | a true and correct copy of a resolution
(ordinance) duly | 4 | | adopted by the (governing body) at a meeting duly convened
and | 5 | | held on (date).
| 6 | | SEAL
| 7 | | (Signature of clerk or secretary)
| 8 | | (c) To be eligible for the benefits provided under an | 9 | | early retirement
incentive program adopted under this Section, | 10 | | a member must:
| 11 | | (1) be a participating employee of this Fund who, on | 12 | | the effective date of
the program, (i) is in active | 13 | | payroll status as an employee of a participating
employer | 14 | | that has filed the required ordinance or resolution with | 15 | | the Board,
(ii) is on layoff status from such a position | 16 | | with a right of re-employment or
recall to service, (iii) | 17 | | is on a leave of absence from such a position, or (iv)
is | 18 | | on disability but has not been receiving benefits under | 19 | | Section 7-146 or
7-150 for a period of more than 2 years | 20 | | from the date of application;
| 21 | | (2) have never previously received a retirement | 22 | | annuity under
this Article or under the Retirement Systems | 23 | | Reciprocal Act using service
credit established under this | 24 | | Article;
| 25 | | (3) (blank);
|
| | | SB3652 Enrolled | - 7 - | LRB102 22513 RPS 31654 b |
|
| 1 | | (4) have at least 20 years of creditable service in | 2 | | the Fund by the date
of retirement, without the use of any | 3 | | creditable service established under this
Section;
| 4 | | (5) have attained age 50 by the date of retirement, | 5 | | without the use of any
age enhancement received under this | 6 | | Section; and
| 7 | | (6) be eligible to receive a retirement annuity under | 8 | | this Article by the
date of retirement, for which purpose | 9 | | the age enhancement and creditable
service established | 10 | | under this Section may be considered.
| 11 | | (d) The employer shall determine the retirement date for | 12 | | each employee
participating in the early retirement program | 13 | | adopted under this Section. The
retirement date shall be no | 14 | | earlier than the effective date of the program and
no later | 15 | | than one year after that effective date, except that the | 16 | | employee may
require that the retirement date set by the | 17 | | employer be no later than the June
30 next occurring after the | 18 | | effective date of the program and no earlier than
the date upon | 19 | | which the employee qualifies for retirement. The employer | 20 | | shall
give each employee participating in the early retirement | 21 | | program at least 30
days written notice of the employee's | 22 | | designated retirement date, unless the
employee waives this | 23 | | notice requirement.
| 24 | | (e) An eligible person may establish up to 5 years of | 25 | | creditable service
under this Section. In addition, for each | 26 | | period of creditable service
established under this Section, a |
| | | SB3652 Enrolled | - 8 - | LRB102 22513 RPS 31654 b |
|
| 1 | | person shall have his or her age at
retirement deemed enhanced | 2 | | by an equivalent period.
| 3 | | The creditable service established under this Section may | 4 | | be used for all
purposes under this Article and the Retirement | 5 | | Systems Reciprocal Act,
except for the computation of final | 6 | | rate of earnings and the determination
of earnings, salary, or | 7 | | compensation under this or any other Article of the
Code.
| 8 | | The age enhancement established under this Section may be | 9 | | used for all
purposes under this Article (including | 10 | | calculation of the reduction imposed
under subdivision | 11 | | (a)1b(iv) of Section 7-142), except for purposes of a
| 12 | | reversionary annuity under Section 7-145 and any distributions | 13 | | required because
of age. The age enhancement established under | 14 | | this Section may be used in
calculating a proportionate | 15 | | annuity payable by this Fund under the Retirement
Systems | 16 | | Reciprocal Act, but shall not be used in determining benefits | 17 | | payable
under other Articles of this Code under the Retirement | 18 | | Systems Reciprocal Act.
| 19 | | (f) For all creditable service established under this | 20 | | Section, the
member must pay to the Fund an employee | 21 | | contribution consisting of the total employee contribution | 22 | | rate in effect at the time the member purchases the service for | 23 | | the plan in which the member was participating with the | 24 | | employer at that time multiplied by the member's highest | 25 | | annual salary rate used in the determination of the
final rate | 26 | | of earnings for retirement annuity purposes for each year of
|
| | | SB3652 Enrolled | - 9 - | LRB102 22513 RPS 31654 b |
|
| 1 | | creditable service granted under this Section.
Contributions | 2 | | for fractions of a year of service shall be prorated.
Any | 3 | | amounts that are disregarded in determining the final rate of | 4 | | earnings
under subdivision (d)(5) of Section 7-116 (the 125% | 5 | | rule) shall also be
disregarded in determining the required | 6 | | contribution under this subsection (f).
| 7 | | The employee contribution shall be paid to the Fund as | 8 | | follows: If the
member is entitled to a lump sum payment for | 9 | | accumulated vacation, sick leave,
or personal leave upon | 10 | | withdrawal from service, the employer shall deduct the
| 11 | | employee contribution from that lump sum and pay the deducted | 12 | | amount directly
to the Fund. If there is no such lump sum | 13 | | payment or the required employee
contribution exceeds the net | 14 | | amount of the lump sum payment, then the remaining
amount due, | 15 | | at the option of the employee, may either be paid to the Fund
| 16 | | before the annuity commences or deducted from the retirement | 17 | | annuity in 24
equal monthly installments.
| 18 | | (g) An annuitant who has received any age enhancement or | 19 | | creditable service
under this Section and thereafter accepts | 20 | | employment with or enters into a
personal services contract | 21 | | with an employer under this Article thereby forfeits
that age | 22 | | enhancement and creditable service; except that this | 23 | | restriction
does not apply to (1) service in an elective | 24 | | office, so long as the annuitant
does not participate in this | 25 | | Fund with respect to that office, (2) a person appointed as an | 26 | | officer under subsection (f) of Section 3-109 of this Code, |
| | | SB3652 Enrolled | - 10 - | LRB102 22513 RPS 31654 b |
|
| 1 | | and (3) a person appointed as an auxiliary police officer | 2 | | pursuant to Section 3.1-30-5 of the Illinois Municipal Code. A | 3 | | person
forfeiting early retirement incentives under this | 4 | | subsection (i) must repay to
the Fund that portion of the | 5 | | retirement annuity already received which is
attributable to | 6 | | the early retirement incentives that are being forfeited, (ii)
| 7 | | shall not be eligible to participate in any future early | 8 | | retirement program
adopted under this Section, and (iii) is | 9 | | entitled to a refund of the employee
contribution paid under | 10 | | subsection (f). The Board shall deduct the required
repayment | 11 | | from the refund and may impose a reasonable payment schedule | 12 | | for
repaying the amount, if any, by which the required | 13 | | repayment exceeds the refund
amount.
| 14 | | (h) The additional unfunded liability accruing as a result | 15 | | of the adoption
of a program of early retirement incentives | 16 | | under this Section by an employer
shall be amortized over a | 17 | | period of 10 years beginning on January 1 of the
second | 18 | | calendar year following the calendar year in which the latest | 19 | | date for
beginning to receive a retirement annuity under the | 20 | | program (as determined by
the employer under subsection (d) of | 21 | | this Section) occurs; except that the
employer may provide for | 22 | | a shorter amortization period (of no less than 5
years) by | 23 | | adopting an ordinance or resolution specifying the length of | 24 | | the
amortization period and submitting a certified copy of the | 25 | | ordinance or
resolution to the Fund no later than 6 months | 26 | | after the effective date of the
program. An employer, at its |
| | | SB3652 Enrolled | - 11 - | LRB102 22513 RPS 31654 b |
|
| 1 | | discretion, may accelerate payments to the Fund.
| 2 | | An employer may provide more than one early retirement | 3 | | incentive program
for its employees under this Section. | 4 | | However, an employer that has provided
an early retirement | 5 | | incentive program for its employees under this Section may
not | 6 | | provide another early retirement incentive program under this | 7 | | Section until the liability arising from the earlier program | 8 | | has been fully paid to
the Fund.
| 9 | | (Source: P.A. 99-382, eff. 8-17-15.)
| 10 | | (Text of Section after amendment by P.A. 102-210 ) | 11 | | Sec. 7-141.1. Early retirement incentive.
| 12 | | (a) The General Assembly finds and declares that:
| 13 | | (1) Units of local government across the State have | 14 | | been functioning
under a financial crisis.
| 15 | | (2) This financial crisis is expected to continue.
| 16 | | (3) Units of local government must depend on | 17 | | additional sources of
revenue and, when those sources are | 18 | | not forthcoming, must establish
cost-saving programs.
| 19 | | (4) An early retirement incentive designed | 20 | | specifically to target
highly-paid senior employees could | 21 | | result in significant annual cost
savings.
| 22 | | (5) The early retirement incentive should be made | 23 | | available only to
those units of local government that | 24 | | determine that an early retirement
incentive is in their | 25 | | best interest.
|
| | | SB3652 Enrolled | - 12 - | LRB102 22513 RPS 31654 b |
|
| 1 | | (6) A unit of local government adopting a program of | 2 | | early retirement
incentives under this Section is | 3 | | encouraged to implement personnel procedures
to prohibit, | 4 | | for at least 5 years, the rehiring (whether on payroll or | 5 | | by
independent contract) of employees who receive early | 6 | | retirement incentives.
| 7 | | (7) A unit of local government adopting a program of | 8 | | early retirement
incentives under this Section is also | 9 | | encouraged to replace as few of the
participating | 10 | | employees as possible and to hire replacement employees | 11 | | for
salaries totaling no more than 80% of the total | 12 | | salaries formerly paid to the
employees who participate in | 13 | | the early retirement program.
| 14 | | It is the primary purpose of this Section to encourage | 15 | | units of local
government that can realize true cost savings, | 16 | | or have determined that an early
retirement program is in | 17 | | their best interest, to implement an early retirement
program.
| 18 | | (b) Until June 27, 1997 (the effective date of Public Act | 19 | | 90-32), this
Section does not apply to any employer that is a | 20 | | city, village, or incorporated
town, nor to the employees of | 21 | | any such employer. Beginning on June 27, 1997 (the effective
| 22 | | date of Public Act 90-32), any employer under this Article, | 23 | | including
an employer that is a city, village, or incorporated | 24 | | town, may establish an
early retirement incentive program for | 25 | | its employees under this Section. The
decision of a city, | 26 | | village, or incorporated town to consider or establish an
|
| | | SB3652 Enrolled | - 13 - | LRB102 22513 RPS 31654 b |
|
| 1 | | early retirement program is at the sole discretion of that | 2 | | city, village, or
incorporated town, and nothing in Public Act | 3 | | 90-32 limits or
otherwise diminishes this discretion. Nothing | 4 | | contained in this Section shall
be construed to require a | 5 | | city, village, or incorporated town to establish an
early | 6 | | retirement program and no city, village, or incorporated town | 7 | | may be
compelled to implement such a program.
| 8 | | The benefits provided in this Section are available only | 9 | | to members
employed by a participating employer that has filed | 10 | | with the Board of the
Fund a resolution or ordinance expressly | 11 | | providing for the creation of an
early retirement incentive | 12 | | program under this Section for its employees and
specifying | 13 | | the effective date of the early retirement incentive program.
| 14 | | Subject to the limitation in subsection (h), an employer may | 15 | | adopt a resolution
or ordinance providing a program of early | 16 | | retirement incentives under this
Section at any time.
| 17 | | The resolution or ordinance shall be in substantially the | 18 | | following form:
| 19 | | RESOLUTION (ORDINANCE) NO. ....
| 20 | | A RESOLUTION (ORDINANCE) ADOPTING AN EARLY
| 21 | | RETIREMENT INCENTIVE PROGRAM FOR EMPLOYEES
| 22 | | IN THE ILLINOIS MUNICIPAL RETIREMENT FUND
| 23 | | WHEREAS, Section 7-141.1 of the Illinois Pension Code | 24 | | provides that a
participating employer may elect to adopt an | 25 | | early retirement
incentive program offered by the Illinois |
| | | SB3652 Enrolled | - 14 - | LRB102 22513 RPS 31654 b |
|
| 1 | | Municipal Retirement Fund by
adopting a resolution or | 2 | | ordinance; and
| 3 | | WHEREAS, The goal of adopting an early retirement program | 4 | | is
to realize a substantial savings in personnel costs by | 5 | | offering early
retirement incentives to employees who have | 6 | | accumulated many years of
service credit; and
| 7 | | WHEREAS, Implementation of the early retirement program | 8 | | will provide a
budgeting tool to aid in controlling payroll | 9 | | costs; and
| 10 | | WHEREAS, The (name of governing body) has determined that | 11 | | the adoption of an
early retirement incentive program is in | 12 | | the best interests of the (name of
participating employer); | 13 | | therefore be it
| 14 | | RESOLVED (ORDAINED) by the (name of governing body) of | 15 | | (name of
participating employer) that:
| 16 | | (1) The (name of participating employer) does hereby adopt | 17 | | the Illinois
Municipal Retirement Fund early retirement | 18 | | incentive program as provided in
Section 7-141.1 of the | 19 | | Illinois Pension Code. The early retirement incentive
program | 20 | | shall take effect on (date).
| 21 | | (2) In order to help achieve a true cost savings, a person | 22 | | who retires under
the early retirement incentive program shall | 23 | | lose those incentives if he or she
later accepts employment | 24 | | with or enters into a personal services contract with any IMRF | 25 | | employer in a position for which
participation in IMRF is | 26 | | required or is elected by the employee .
|
| | | SB3652 Enrolled | - 15 - | LRB102 22513 RPS 31654 b |
|
| 1 | | (3) In order to utilize an early retirement incentive as a | 2 | | budgeting
tool, the (name of participating employer) will use | 3 | | its best efforts either
to limit the number of employees who | 4 | | replace the employees who retire under
the early retirement | 5 | | program or to limit the salaries paid to the employees who
| 6 | | replace the employees who retire under the early retirement | 7 | | program.
| 8 | | (4) The effective date of each employee's retirement under | 9 | | this early
retirement program shall be set by (name of | 10 | | employer) and shall be no
earlier than the effective date of | 11 | | the program and no later than one year after
that effective | 12 | | date; except that the employee may require that the retirement
| 13 | | date set by the employer be no later than the June 30 next | 14 | | occurring after the
effective date of the program and no | 15 | | earlier than the date upon which the
employee qualifies for | 16 | | retirement.
| 17 | | (5) To be eligible for the early retirement incentive | 18 | | under this Section,
the employee must have attained age 50 and | 19 | | have at least 20 years of creditable
service by his or her | 20 | | retirement date.
| 21 | | (6) The (clerk or secretary) shall promptly file a | 22 | | certified copy of
this resolution (ordinance) with the Board | 23 | | of Trustees of the Illinois
Municipal Retirement Fund.
| 24 | | CERTIFICATION
| 25 | | I, (name), the (clerk or secretary) of the (name of | 26 | | participating
employer) of the County of (name), State of |
| | | SB3652 Enrolled | - 16 - | LRB102 22513 RPS 31654 b |
|
| 1 | | Illinois, do hereby certify
that I am the keeper of the books | 2 | | and records of the (name of employer)
and that the foregoing is | 3 | | a true and correct copy of a resolution
(ordinance) duly | 4 | | adopted by the (governing body) at a meeting duly convened
and | 5 | | held on (date).
| 6 | | SEAL
| 7 | | (Signature of clerk or secretary)
| 8 | | (c) To be eligible for the benefits provided under an | 9 | | early retirement
incentive program adopted under this Section, | 10 | | a member must:
| 11 | | (1) be a participating employee of this Fund who, on | 12 | | the effective date of
the program, (i) is in active | 13 | | payroll status as an employee of a participating
employer | 14 | | that has filed the required ordinance or resolution with | 15 | | the Board,
(ii) is on layoff status from such a position | 16 | | with a right of re-employment or
recall to service, (iii) | 17 | | is on a leave of absence from such a position, or (iv)
is | 18 | | on disability but has not been receiving benefits under | 19 | | Section 7-146 or
7-150 for a period of more than 2 years | 20 | | from the date of application;
| 21 | | (2) have never previously received a retirement | 22 | | annuity under
this Article or under the Retirement Systems | 23 | | Reciprocal Act using service
credit established under this | 24 | | Article;
| 25 | | (3) (blank);
|
| | | SB3652 Enrolled | - 17 - | LRB102 22513 RPS 31654 b |
|
| 1 | | (4) have at least 20 years of creditable service in | 2 | | the Fund by the date
of retirement, without the use of any | 3 | | creditable service established under this
Section;
| 4 | | (5) have attained age 50 by the date of retirement if | 5 | | he or she is a Tier 1 regular employee or age 57 if he or | 6 | | she is a Tier 2 regular employee, without the use of any
| 7 | | age enhancement received under this Section; and
| 8 | | (6) be eligible to receive a retirement annuity under | 9 | | this Article by the
date of retirement, for which purpose | 10 | | the age enhancement and creditable
service established | 11 | | under this Section may be considered.
| 12 | | (d) The employer shall determine the retirement date for | 13 | | each employee
participating in the early retirement program | 14 | | adopted under this Section. The
retirement date shall be no | 15 | | earlier than the effective date of the program and
no later | 16 | | than one year after that effective date, except that the | 17 | | employee may
require that the retirement date set by the | 18 | | employer be no later than the June
30 next occurring after the | 19 | | effective date of the program and no earlier than
the date upon | 20 | | which the employee qualifies for retirement. The employer | 21 | | shall
give each employee participating in the early retirement | 22 | | program at least 30
days written notice of the employee's | 23 | | designated retirement date, unless the
employee waives this | 24 | | notice requirement.
| 25 | | (e) An eligible person may establish up to 5 years of | 26 | | creditable service
under this Section. In addition, for each |
| | | SB3652 Enrolled | - 18 - | LRB102 22513 RPS 31654 b |
|
| 1 | | period of creditable service
established under this Section, a | 2 | | person shall have his or her age at
retirement deemed enhanced | 3 | | by an equivalent period.
| 4 | | The creditable service established under this Section may | 5 | | be used for all
purposes under this Article and the Retirement | 6 | | Systems Reciprocal Act,
except for the computation of final | 7 | | rate of earnings and the determination
of earnings, salary, or | 8 | | compensation under this or any other Article of the
Code.
| 9 | | The age enhancement established under this Section may be | 10 | | used for all
purposes under this Article (including | 11 | | calculation of the reduction imposed
under subdivision | 12 | | (a)1b(iv) of Section 7-142), except for purposes of a
| 13 | | reversionary annuity under Section 7-145 and any distributions | 14 | | required because
of age. The age enhancement established under | 15 | | this Section may be used in
calculating a proportionate | 16 | | annuity payable by this Fund under the Retirement
Systems | 17 | | Reciprocal Act, but shall not be used in determining benefits | 18 | | payable
under other Articles of this Code under the Retirement | 19 | | Systems Reciprocal Act.
| 20 | | (f) For all creditable service established under this | 21 | | Section, the
member must pay to the Fund an employee | 22 | | contribution consisting of the total employee contribution | 23 | | rate in effect at the time the member purchases the service for | 24 | | the plan in which the member was participating with the | 25 | | employer at that time multiplied by the member's highest | 26 | | annual salary rate used in the determination of the
final rate |
| | | SB3652 Enrolled | - 19 - | LRB102 22513 RPS 31654 b |
|
| 1 | | of earnings for retirement annuity purposes for each year of
| 2 | | creditable service granted under this Section.
Contributions | 3 | | for fractions of a year of service shall be prorated.
Any | 4 | | amounts that are disregarded in determining the final rate of | 5 | | earnings
under subdivision (d)(5) of Section 7-116 (the 125% | 6 | | rule) shall also be
disregarded in determining the required | 7 | | contribution under this subsection (f).
| 8 | | The employee contribution shall be paid to the Fund as | 9 | | follows: If the
member is entitled to a lump sum payment for | 10 | | accumulated vacation, sick leave,
or personal leave upon | 11 | | withdrawal from service, the employer shall deduct the
| 12 | | employee contribution from that lump sum and pay the deducted | 13 | | amount directly
to the Fund. If there is no such lump sum | 14 | | payment or the required employee
contribution exceeds the net | 15 | | amount of the lump sum payment, then the remaining
amount due, | 16 | | at the option of the employee, may either be paid to the Fund
| 17 | | before the annuity commences or deducted from the retirement | 18 | | annuity in 24
equal monthly installments.
| 19 | | (g) An annuitant who has received any age enhancement or | 20 | | creditable service
under this Section and thereafter accepts | 21 | | employment with or enters into a
personal services contract | 22 | | with an employer under this Article thereby forfeits
that age | 23 | | enhancement and creditable service; except that this | 24 | | restriction
does not apply to (1) service in an elective | 25 | | office, so long as the annuitant
does not participate in this | 26 | | Fund with respect to that office, (2) a person appointed as an |
| | | SB3652 Enrolled | - 20 - | LRB102 22513 RPS 31654 b |
|
| 1 | | officer under subsection (f) of Section 3-109 of this Code, | 2 | | and (3) a person appointed as an auxiliary police officer | 3 | | pursuant to Section 3.1-30-5 of the Illinois Municipal Code. A | 4 | | person
forfeiting early retirement incentives under this | 5 | | subsection (i) must repay to
the Fund that portion of the | 6 | | retirement annuity already received which is
attributable to | 7 | | the early retirement incentives that are being forfeited, (ii)
| 8 | | shall not be eligible to participate in any future early | 9 | | retirement program
adopted under this Section, and (iii) is | 10 | | entitled to a refund of the employee
contribution paid under | 11 | | subsection (f). The Board shall deduct the required
repayment | 12 | | from the refund and may impose a reasonable payment schedule | 13 | | for
repaying the amount, if any, by which the required | 14 | | repayment exceeds the refund
amount.
| 15 | | (h) The additional unfunded liability accruing as a result | 16 | | of the adoption
of a program of early retirement incentives | 17 | | under this Section by an employer
shall be amortized over a | 18 | | period of 10 years beginning on January 1 of the
second | 19 | | calendar year following the calendar year in which the latest | 20 | | date for
beginning to receive a retirement annuity under the | 21 | | program (as determined by
the employer under subsection (d) of | 22 | | this Section) occurs; except that the
employer may provide for | 23 | | a shorter amortization period (of no less than 5
years) by | 24 | | adopting an ordinance or resolution specifying the length of | 25 | | the
amortization period and submitting a certified copy of the | 26 | | ordinance or
resolution to the Fund no later than 6 months |
| | | SB3652 Enrolled | - 21 - | LRB102 22513 RPS 31654 b |
|
| 1 | | after the effective date of the
program. An employer, at its | 2 | | discretion, may accelerate payments to the Fund.
| 3 | | An employer may provide more than one early retirement | 4 | | incentive program
for its employees under this Section. | 5 | | However, an employer that has provided
an early retirement | 6 | | incentive program for its employees under this Section may
not | 7 | | provide another early retirement incentive program under this | 8 | | Section until the liability arising from the earlier program | 9 | | has been fully paid to
the Fund.
| 10 | | (Source: P.A. 102-210, eff. 1-1-22.)
| 11 | | Section 95. No acceleration or delay. Where this Act makes | 12 | | changes in a statute that is represented in this Act by text | 13 | | that is not yet or no longer in effect (for example, a Section | 14 | | represented by multiple versions), the use of that text does | 15 | | not accelerate or delay the taking effect of (i) the changes | 16 | | made by this Act or (ii) provisions derived from any other | 17 | | Public Act.
| 18 | | Section 99. Effective date. This Act takes effect upon | 19 | | becoming law.
|
|