[ Search ] [ Legislation ] [ Bill Summary ]
[ Home ] [ Back ] [ Bottom ]
90_HB0304 40 ILCS 5/5-132.3 new 30 ILCS 805/8.21 new Amends the Chicago Police Article of the Pension Code to provide early retirement incentives. Grants up to 5 years of creditable service and up to 5 years of age enhancement. Requires employee contributions at half the regular rate. Requires the City to pay the resulting unfunded accrued liability to the Fund over 7 years, with interest. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately. LRB9002054EGfg LRB9002054EGfg 1 AN ACT to amend the Illinois Pension Code by adding 2 Section 5-132.3 and to amend the State Mandates Act. 3 Be it enacted by the People of the State of Illinois, 4 represented in the General Assembly: 5 Section 5. The Illinois Pension Code is amended by adding 6 Section 5-132.3 as follows: 7 (40 ILCS 5/5-132.3 new) 8 Sec. 5-132.3. Early retirement incentives. 9 (a) To be eligible for the benefits provided in this 10 Section, a person must: 11 (1) on any day during October, 1997, be (i) an 12 active policeman participating in the Fund, (ii) on 13 layoff status from such a position with a right of 14 re-employment or recall to service, or (iii) on leave of 15 absence from such a position, but only if the employee 16 has not been receiving disability benefits under this 17 Article for a continuous period of 2 years or more as of 18 the date of application; 19 (2) have not previously retired under this Article; 20 (3) file with the Board on or before July 1, 1998, 21 a written application requesting the benefits provided in 22 this Section; 23 (4) establish eligibility to receive a retirement 24 annuity under this Article (for which purpose any age 25 enhancement or creditable service received under this 26 Section may be used) and elect to receive the retirement 27 annuity beginning not earlier than the first day of the 28 month following the month in which this amendatory Act of 29 1997 takes effect, and not later than January 1, 1999 or 30 such other date as may be established under subsection 31 (e). -2- LRB9002054EGfg 1 (b) An eligible person may establish up to 5 years of 2 creditable service under this Article, in increments of one 3 month, by making the contributions specified in subsection 4 (c). In addition, for each month of creditable service 5 established under this Section, a person's age at retirement 6 shall be deemed to be one month older than it actually is. 7 The creditable service established under this Section may 8 be used for all purposes under this Article, except that it 9 shall not affect the computation of salary. 10 The age enhancement established under this Section may be 11 used for all purposes under this Article, except for purposes 12 of calculating annuities based on a money-purchase formula, 13 the reversionary annuity under Section 5-132.2, and any 14 distributions based upon age that are required under federal 15 law. 16 (c) For all creditable service established under this 17 Section, a person must pay to the Fund an employee 18 contribution to be determined by the Fund, based on the 19 amount of service to be established, the member's final 20 average salary (as used in computing the retirement annuity), 21 and one-half of the total retirement contribution rate in 22 effect for the member under this Article on the date of 23 withdrawal. The employee may elect to pay the entire 24 contribution before the retirement annuity commences, or to 25 have it deducted from the annuity over a period not longer 26 than 24 months. If the retired employee dies before the 27 contribution has been paid in full, the unpaid installments 28 may be deducted from any annuity or other benefit payable to 29 the employee's survivors. 30 (d) Notwithstanding Section 5-159, an annuitant who has 31 received any age enhancement or creditable service under this 32 Section and who reenters service under this Article other 33 than as a part-time crossing guard shall thereby forfeit such 34 age enhancement and creditable service, and become entitled -3- LRB9002054EGfg 1 to a refund of the contributions made pursuant to this 2 Section. 3 (e) In order to ensure that the public health and safety 4 are not jeopardized by the simultaneous retirement of large 5 numbers of critical personnel, the superintendent of the 6 police department may extend the January 1, 1999 deadline for 7 beginning to receive a retirement annuity that is established 8 in subdivision (a)(4) of this Section to a date no later than 9 January 1, 2000, by notifying the Board in writing no later 10 than October 31, 1998. 11 (f) The Board shall determine the unfunded accrued 12 liability created by the granting of early retirement 13 benefits to policemen under this Section, and shall certify 14 the amount of that liability to the mayor, comptroller, 15 treasurer, and city council of the City by February 1, 1999, 16 or as soon thereafter as is practical. In addition to any 17 other payments to the Fund required under this Code, the City 18 shall pay to the Fund the amount of that unfunded accrued 19 liability over a period of 7 years at the rate of 14.3% of 20 the certified amount per year, plus interest on the unpaid 21 balance at the actuarial rate as calculated and certified 22 annually by the Board. 23 Section 90. The State Mandates Act is amended by adding 24 Section 8.21 as follows: 25 (30 ILCS 805/8.21 new) 26 Sec. 8.21. Exempt mandate. Notwithstanding Sections 6 27 and 8 of this Act, no reimbursement by the State is required 28 for the implementation of any mandate created by this 29 amendatory Act of 1997. 30 Section 99. Effective date. This Act takes effect upon 31 becoming law.
[ Top ]