(c) A separate municipality contribution rate shall be computed for
each participating municipality or participating instrumentality
for its sheriff's law enforcement employees.
A separate municipality contribution rate shall be computed for the
sheriff's law enforcement employees of each forest preserve district that
elects to have such employees. For the period from January 1, 1986 to
December 31, 1986, such rate shall be the forest preserve district's regular
rate plus 2%.
In the event that the Board determines that there is an actuarial
deficiency in the account of any municipality with respect to a person who
has elected to participate in the Fund under Section 3-109.1 of this Code,
the Board may adjust the municipality's contribution rate so as to make up
that deficiency over such reasonable period of time as the Board may determine.
(d) The Board may establish a separate municipality contribution
rate for all employees who are program participants employed under the
federal Comprehensive Employment Training Act by all of the
participating municipalities and instrumentalities. The Board may also
provide that, in lieu of a separate municipality rate for these
employees, a portion of the municipality contributions for such program
participants shall be refunded or an extra charge assessed so that the
amount of municipality contributions retained or received by the fund
for all CETA program participants shall be an amount equal to that which
would be provided by the separate municipality contribution rate for all
such program participants. Refunds shall be made to prime sponsors of
programs upon submission of a claim therefor and extra charges shall be
assessed to participating municipalities and instrumentalities. In
establishing the municipality contribution rate as provided in paragraph
(b) of this Section, the use of a separate municipality contribution
rate for program participants or the refund of a portion of the
municipality contributions, as the case may be, may be considered.
(e) Computations of municipality contribution rates for the
following calendar year shall be made prior to the beginning of each
year, from the information available at the time the computations are
made, and on the assumption that the employees in each participating
municipality or participating instrumentality at such time will continue
in service until the end of such calendar year at their respective rates
of earnings at such time.
(f) Any municipality which is the recipient of State allocations
representing that municipality's contributions for retirement annuity
purposes on behalf of its employees as provided in Section 12-21.16 of
the Illinois Public Aid Code shall pay the allocations so
received to the Board for such purpose. Estimates of State allocations to
be received during any taxable year shall be considered in the
determination of the municipality's tax rate for that year under Section
7-171. If a special tax is levied under Section 7-171, none of the
proceeds may be used to reimburse the municipality for the amount of State
allocations received and paid to the Board. Any multiple-county or
consolidated health department which receives contributions from a county
under Section 11.2 of "An Act in relation to establishment and maintenance
of county and multiple-county health departments", approved July 9, 1943,
as amended, or distributions under Section 3 of the Department of Public
Health Act, shall use these only for municipality contributions by the
(g) Municipality contributions for the several purposes specified
shall, for township treasurers and employees in the offices of the
township treasurers who meet the qualifying conditions for coverage
hereunder, be allocated among the several school districts and parts of
school districts serviced by such treasurers and employees in the
proportion which the amount of school funds of each district or part of
a district handled by the treasurer bears to the total amount of all
school funds handled by the treasurer.
From the funds subject to allocation among districts and parts of
districts pursuant to the School Code, the trustees shall withhold the
proportionate share of the liability for municipality contributions imposed
upon such districts by this Section, in respect to such township treasurers
and employees and remit the same to the Board.
The municipality contribution rate for an educational service center shall
initially be the same rate for each year as the regional office of
education or school district
which serves as its administrative agent. When actuarial data become
available, a separate rate shall be established as provided in subparagraph
(i) of this Section.
The municipality contribution rate for a public agency, other than a
vocational education cooperative, formed under the Intergovernmental
Cooperation Act shall initially be the average rate for the municipalities
which are parties to the intergovernmental agreement. When actuarial data
become available, a separate rate shall be established as provided in
subparagraph (i) of this Section.
(h) Each participating municipality and participating
instrumentality shall make the contributions in the amounts provided in
this Section in the manner prescribed from time to time by the Board and
all such contributions shall be obligations of the respective
participating municipalities and participating instrumentalities to this
fund. The failure to deduct any employee contributions shall not
relieve the participating municipality or participating instrumentality
of its obligation to this fund. Delinquent payments of contributions
due under this Section may, with interest, be recovered by civil action
against the participating municipalities or participating
instrumentalities. Municipality contributions, other than the amount
necessary for employee contributions, for
periods of service by employees from whose earnings no deductions were made
for employee contributions to the fund, may be charged to the municipality
reserve for the municipality or participating instrumentality.
(i) Contributions by participating instrumentalities shall be
determined as provided herein except that the percentage derived under
subparagraph 2 of paragraph (b) of this Section, and the amount payable
under subparagraph 4 of paragraph (a) of this Section, shall be based on
an amortization period of 10 years.
(j) Notwithstanding the other provisions of this Section, the additional unfunded liability accruing as a result of Public Act 94-712
shall be amortized over a period of 30 years beginning on January 1 of the
second calendar year following the calendar year in which Public Act 94-712 takes effect, except that the employer may provide for a longer amortization period by adopting a resolution or ordinance specifying a 35-year or 40-year period and submitting a certified copy of the ordinance or resolution to the fund no later than June 1 of the calendar year following the calendar year in which Public Act 94-712 takes effect.
(k) If the amount of a participating employee's reported earnings for any of the 12-month periods used to determine the final rate of earnings exceeds the employee's 12-month reported earnings with the same employer for the previous year by the greater of 6% or 1.5 times the annual increase in the Consumer Price Index-U, as established by the United States Department of Labor for the preceding September, the participating municipality or participating instrumentality that paid those earnings shall pay to the Fund, in addition to any other contributions required under this Article, the present value of the increase in the pension resulting from the portion of the increase in reported earnings that is in excess of the greater of 6% or 1.5 times the annual increase in the Consumer Price Index-U, as determined by the Fund. This present value shall be computed on the basis of the actuarial assumptions and tables used in the most recent actuarial valuation of the Fund that is available at the time of the computation.
Whenever it determines that a payment is or may be required under this subsection (k), the fund shall calculate the amount of the payment and bill the participating municipality or participating instrumentality for that amount. The bill shall specify the calculations used to determine the amount due. If the participating municipality or participating instrumentality disputes the amount of the bill, it may, within 30 days after receipt of the bill, apply to the fund in writing for a recalculation. The application must specify in detail the grounds of the dispute. Upon receiving a timely application for recalculation, the fund shall review the application and, if appropriate, recalculate the amount due.
The participating municipality and participating instrumentality contributions required under this subsection (k) may be paid in the form of a lump sum within 90 days after receipt of the bill. If the participating municipality and participating instrumentality contributions are not paid within 90 days after receipt of the bill, then interest will be charged at a rate equal to the fund's annual actuarially assumed rate of return on investment compounded annually from the 91st day after receipt of the bill. Payments must be concluded within 3 years after receipt of the bill by the participating municipality or participating instrumentality.
When assessing payment for any amount due under this subsection (k), the fund shall exclude earnings increases resulting from overload or overtime earnings.
When assessing payment for any amount due under this subsection (k), the fund shall exclude earnings increases resulting from payments for unused vacation time, but only for payments for unused vacation time made in the final 3 months of the final rate of earnings period.
When assessing payment for any amount due under this subsection (k), the fund shall also exclude earnings increases attributable to standard employment promotions resulting in increased responsibility and workload.
When assessing payment for any amount due under this subsection (k), the fund shall exclude reportable earnings increases resulting from periods where the member was paid through workers' compensation.
This subsection (k) does not apply to earnings increases due to amounts paid as required by federal or State law or court mandate or to earnings increases due to the participating employee returning to the regular number of hours worked after having a temporary reduction in the number of hours worked.
This subsection (k) does not apply to earnings increases paid to individuals under contracts or collective bargaining agreements entered into, amended, or renewed before January 1, 2012 (the effective date of Public Act 97-609), earnings increases paid to members who are 10 years or more from retirement eligibility, or earnings increases resulting from an increase in the number of hours required to be worked.
When assessing payment for any amount due under this subsection (k), the fund shall also exclude earnings attributable to personnel policies adopted before January 1, 2012 (the effective date of Public Act 97-609) as long as those policies are not applicable to employees who begin service on or after January 1, 2012 (the effective date of Public Act 97-609).
The change made to this Section by Public Act 100-139 is a clarification of existing law and is intended to be retroactive to January 1, 2012 (the effective date of Public Act 97-609).
(Source: P.A. 102-849, eff. 5-13-22; 103-464, eff. 8-4-23.)