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90_SB0665sam011
LRB9000602EGfgam08
1 AMENDMENT TO SENATE BILL 665
2 AMENDMENT NO. . Amend Senate Bill 665, AS AMENDED,
3 by inserting immediately below the enacting clause the
4 following:
5 "Section 1. The Illinois Pension Code is amended by
6 changing Sections 7-109.3, 7-111, 7-113, 7-116, 7-118,
7 7-132.2, 7-139, 7-145, 7-171, and 7-172 and adding Section
8 7-199.3 as follows:
9 (40 ILCS 5/7-109.3) (from Ch. 108 1/2, par. 7-109.3)
10 Sec. 7-109.3. "Sheriff's Law Enforcement Employees".
11 (a) "Sheriff's law enforcement employee" means:
12 (1) A county sheriff and all deputies, other than
13 special deputies, employed on a full time basis in the
14 office of the sheriff.
15 (2) A person who has elected to participate in this
16 Fund under Section 3-109.1 of this Code, and who is
17 employed by a participating municipality to perform
18 police duties.
19 (3) A law enforcement officer employed on a full
20 time basis by a Forest Preserve District, provided that
21 such officer shall be deemed a "sheriff's law enforcement
22 employee" for the purposes of this Article, and service
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1 in that capacity shall be deemed to be service as a
2 sheriff's law enforcement employee, only if the board of
3 commissioners of the District have so elected by adoption
4 of an affirmative resolution. Such election, once made,
5 may not be rescinded.
6 (4) A person not eligible to participate in a fund
7 established under Article 3 of this Code who is employed
8 on a full-time basis by a participating municipality or
9 participating instrumentality to perform police duties at
10 an airport, but only if the governing authority of the
11 employer has approved sheriff's law enforcement employee
12 status for its airport police employees by adoption of an
13 affirmative resolution. Such approval, once given, may
14 not be rescinded.
15 (b) An employee who is a sheriff's law enforcement
16 employee and prior to the time for which he is granted
17 military leave or authorized leave of absence shall receive
18 service credit in that capacity. Sheriff's law enforcement
19 employees shall not be entitled to out of State service
20 credit under Section 7-139.
21 (Source: P.A. 86-273; 87-850.)
22 (40 ILCS 5/7-111) (from Ch. 108 1/2, par. 7-111)
23 Sec. 7-111. "Prior Service": The period beginning on
24 the day a participating employee first became an employee of
25 a municipality, or of an instrumentality thereof, or of a
26 municipality or instrumentality that was superseded by the
27 employing participating municipality, or of a participating
28 instrumentality, and ending on the effective date of
29 participation of the municipality or participating
30 instrumentality, or upon the latest termination of service
31 prior to such effective date, but excluding (a) the
32 intervening periods during which the employee was separated
33 from the service of the municipality and all
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1 instrumentalities thereof, or of the participating
2 instrumentality, or (b) periods during which the employee was
3 employed in a position normally requiring less than 600 hours
4 of service during a year, and or (c) periods during which the
5 employee served by persons beginning participating employment
6 in a position normally requiring performance of duty less
7 than 1000 hours per year, if the with a participating
8 municipality or participating instrumentality adopted, which
9 prior to its effective the date of participation, it is
10 included and subject to this Article adopts a resolution or
11 ordinance excluding persons in such positions from
12 participation.
13 (Source: P.A. 82-459.)
14 (40 ILCS 5/7-113) (from Ch. 108 1/2, par. 7-113)
15 Sec. 7-113. "Creditable Service": All periods of prior
16 service or current service for which credits are granted
17 under the provisions of Section 7-139, including all periods
18 during which a participating employee was an employee of a
19 municipality or instrumentality which was superseded by the
20 employing participating municipality.
21 (Source: Laws 1967, p. 2091.)
22 (40 ILCS 5/7-116) (from Ch. 108 1/2, par. 7-116)
23 Sec. 7-116. "Final rate of earnings":
24 (a) For retirement and survivor annuities, the monthly
25 earnings obtained by dividing the total earnings received by
26 the employee during the period of either (1) the 48
27 consecutive months of service within the last 120 months of
28 service in which his total earnings were the highest, or (2)
29 the employee's (his total period of service,) by the number
30 of months of service in such period.
31 (b) For death benefits, the higher of the rate
32 determined under paragraph (a) of this Section or total
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1 earnings received in the last 12 months of service divided by
2 twelve. If the deceased employee has less than 12 months of
3 service, the monthly final rate shall be the monthly rate of
4 pay the employee was receiving when he began service.
5 (c) For disability benefits, the total earnings of a
6 participating employee in the last 12 calendar months of
7 service prior to the date he becomes disabled divided by 12.
8 (d) In computing the final rate of earnings: (1) the
9 earnings rate for all periods of prior service shall be
10 considered equal to the average earnings rate for the last 3
11 calendar years of prior service for which creditable service
12 is received under Section 7-139 most immediately preceding
13 the effective date, or, if there is less than 3 years of
14 creditable prior service, the average for the total prior
15 service period for which creditable service is received under
16 Section 7-139; (2) for out of state service and authorized
17 leave, the earnings rate shall be the rate upon which service
18 credits are granted; (3) periods of military leave shall not
19 be considered; (4) the earnings rate for all periods of
20 disability shall be considered equal to the rate of earnings
21 upon which the employee's disability benefits are computed
22 for such periods; (5) the earnings to be considered for each
23 of the final three months of the final earnings period shall
24 not exceed 125% of the highest earnings of any other month in
25 the final earnings period; and (6) the annual amount of final
26 rate of earnings shall be the monthly amount multiplied by
27 the number of months of service normally required by the
28 position in a year.
29 (Source: P.A. 78-255.)
30 (40 ILCS 5/7-118) (from Ch. 108 1/2, par. 7-118)
31 Sec. 7-118. "Beneficiary":
32 (a) The surviving spouse of an employee or of an
33 employee annuitant, or if no surviving spouse survives, the
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1 person or persons designated by a participating employee or
2 employee annuitant, or if no person so designated survives,
3 or if no designation is on file, the estate of the employee
4 or employee annuitant. The person or persons designated by a
5 beneficiary annuitant, or if no person designated survives,
6 or if no designation is on file, the estate of the
7 beneficiary annuitant. The estate of a surviving spouse
8 annuitant where the employee or employee annuitant filed no
9 designation, or no person designated survives at the death of
10 a surviving spouse annuitant. Designations of beneficiaries
11 shall be in writing on forms prescribed by the board and
12 effective upon filing in the fund offices. The designation
13 forms shall provide for contingent beneficiaries. Divorce,
14 dissolution or annulment of marriage revokes the designation
15 of an employee's former spouse as a beneficiary on a
16 designation executed before entry of judgment for divorce,
17 dissolution or annulment of marriage.
18 (b) Notwithstanding the foregoing, an employee, former
19 employee who has not yet received a retirement annuity or
20 separation benefit, or employee annuitant may elect to name
21 any person, trust or charity to be the primary beneficiary of
22 any death benefit payable by reason of his death. Such
23 election shall state specifically whether it is his intention
24 to exclude the spouse, shall be in writing, and may be
25 revoked at any time. Such election or revocation shall take
26 effect upon being filed in the fund offices.
27 (c) If a surviving spouse annuity is payable to a former
28 spouse upon the death of an employee annuitant, the former
29 spouse, unless designated by the employee annuitant after
30 dissolution of the marriage, shall not be the beneficiary for
31 the purposes of the $3,000 death benefit payable under
32 subparagraph 6 of Section 7-164. This benefit shall be paid
33 to the designated beneficiary of the employee annuitant or,
34 if there is no designation, then to the estate of the
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1 employee annuitant.
2 (Source: P.A. 89-136, eff. 7-14-95.)
3 (40 ILCS 5/7-132.2) (from Ch. 108 1/2, par. 7-132.2)
4 Sec. 7-132.2. Regional office of education Educational
5 Service Regions.
6 (a) A regional office of education serving 2 Educational
7 Service Regions comprised of two or more counties, except
8 those serving including a county of 1,000,000 inhabitants or
9 more, formed pursuant to Article 3A of the School Code shall
10 be included within and be subject to this Article, effective
11 as of the effective date of consolidation. For the purpose
12 of this Article, a regional office of education serving 2 an
13 Educational Service Region comprised of two or more counties
14 shall be considered a participating instrumentality but the
15 requirements of Sections 7-106 and 7-132 shall not apply to
16 it. Each county served by a regional office of education
17 that serves 2 in an Educational Service Region comprised of
18 two or more counties shall pay its proportional cost of the
19 office's region's municipality contributions. This cost
20 shall be included in the budget prepared under and
21 apportioned in the manner provided by Section 3A-7 of the
22 School Code. Each county may include the cost for its share
23 of the municipality contributions required for the regional
24 office of education region in its appropriation and tax levy
25 under Section 7-171 of this Article.
26 (b) At the request of the county, the Board may
27 designate any participating regional office of education
28 Educational Service Region to be a separate reporting entity
29 distinct from the county.
30 (Source: P.A. 87-740.)
31 (40 ILCS 5/7-139) (from Ch. 108 1/2, par. 7-139)
32 Sec. 7-139. Credits and creditable service to employees.
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1 (a) Each participating employee shall be granted credits
2 and creditable service, for purposes of determining the
3 amount of any annuity or benefit to which he or a beneficiary
4 is entitled, as follows:
5 1. For prior service: Each participating employee who is
6 an employee of a participating municipality or participating
7 instrumentality on the effective date shall be granted
8 creditable service, but no credits under paragraph 2 of this
9 subsection (a), for periods his entire period of prior
10 service for which credit has not been received under any
11 other pension fund or retirement system established under
12 this Code, as follows:.
13 If the effective date of participation for the
14 participating municipality or participating instrumentality
15 is on or before January 1, 1998, creditable service shall be
16 granted for the entire period of prior service with that
17 employer without any employee contribution.
18 If the effective date of participation for the
19 participating municipality or participating instrumentality
20 is after January 1, 1998, creditable service shall be granted
21 for the last 20% of the period of prior service with that
22 employer, but no more than 5 years, without any employee
23 contribution. A participating employee may establish
24 creditable service for the remainder of the period of prior
25 service with that employer by making an application in
26 writing, accompanied by payment of an employee contribution
27 in an amount determined by the Fund, based on the employee
28 contribution rates in effect at the time of application for
29 the creditable service and the employee's salary rate on the
30 effective date of participation for that employer, plus
31 interest at the effective rate from the date of the prior
32 service to the date of payment. Application for this
33 creditable service may be made at any time while the employee
34 is still in service.
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1 Any person who has withdrawn from the service of a
2 participating municipality or participating instrumentality
3 prior to the effective date, who reenters the service of the
4 same municipality or participating instrumentality after the
5 effective date and becomes a participating employee is
6 entitled to creditable service for prior service as otherwise
7 provided in this subdivision (a)(1) only if he or she renders
8 2 years of service as a participating employee after the
9 effective date. provided Application for such service must
10 be is made while in a participating status. The salary rate
11 to be used in the calculation of the required employee
12 contribution, if any, shall be the employee's salary rate at
13 the time of first reentering service with the employer after
14 the employer's effective date of participation.
15 2. For current service, each participating employee
16 shall be credited with:
17 a. Additional credits of amounts equal to each
18 payment of additional contributions received from him
19 under Section 7-173, as of the date the corresponding
20 payment of earnings is payable to him.
21 b. Normal credits of amounts equal to each payment
22 of normal contributions received from him, as of the date
23 the corresponding payment of earnings is payable to him,
24 and normal contributions made for the purpose of
25 establishing out-of-state service credits as permitted
26 under the conditions set forth in paragraph 6 of this
27 subsection (a).
28 c. Municipality credits in an amount equal to 1.4
29 times the normal credits, except those established by
30 out-of-state service credits, as of the date of
31 computation of any benefit if these credits would
32 increase the benefit.
33 d. Survivor credits equal to each payment of
34 survivor contributions received from the participating
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1 employee as of the date the corresponding payment of
2 earnings is payable, and survivor contributions made for
3 the purpose of establishing out-of-state service credits.
4 3. For periods of temporary and total and permanent
5 disability benefits, each employee receiving disability
6 benefits shall be granted creditable service for the period
7 during which disability benefits are payable. Normal and
8 survivor credits, based upon the rate of earnings applied for
9 disability benefits, shall also be granted if such credits
10 would result in a higher benefit to any such employee or his
11 beneficiary.
12 4. For authorized leave of absence without pay: A
13 participating employee shall be granted credits and
14 creditable service for periods of authorized leave of absence
15 without pay under the following conditions:
16 a. An application for credits and creditable
17 service is shall be submitted to the board while the
18 employee is in a status of active employment, and within
19 2 years after termination of the leave of absence period
20 for which credits and creditable service are sought.
21 b. Not more than 12 complete months of creditable
22 service for authorized leave of absence without pay shall
23 be counted for purposes of determining any benefits
24 payable under this Article.
25 c. Credits and creditable service shall be granted
26 for leave of absence only if such leave is approved by
27 the governing body of the municipality, including
28 approval of the estimated cost thereof to the
29 municipality as determined by the fund, and employee
30 contributions, plus interest at the effective rate
31 applicable for each year from the end of the period of
32 leave to date of payment, have been paid to the fund in
33 accordance with Section 7-173. The contributions shall
34 be computed upon the assumption earnings continued during
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1 the period of leave at the rate in effect when the leave
2 began.
3 d. Benefits under the provisions of Sections 7-141,
4 7-146, 7-150 and 7-163 shall become payable to employees
5 on authorized leave of absence, or their designated
6 beneficiary, only if such leave of absence is creditable
7 hereunder, and if the employee has at least one year of
8 creditable service other than the service granted for
9 leave of absence. Any employee contributions due may be
10 deducted from any benefits payable.
11 e. No credits or creditable service shall be
12 allowed for leave of absence without pay during any
13 period of prior service.
14 5. For military service: The governing body of a
15 municipality or participating instrumentality may elect to
16 allow creditable service to participating employees who leave
17 their employment to serve in the armed forces of the United
18 States for all periods of such service, provided that the
19 such person returns to active employment within 90 days after
20 completion of full time active duty, but no creditable
21 service shall be allowed such person for any period that can
22 be used in the computation of a pension or any other pay or
23 benefit, other than pay for active duty, for service in any
24 branch of the armed forces of the United States. If
25 necessary to the computation of any benefit, the board shall
26 establish municipality credits for participating employees
27 under this paragraph on the assumption that the employee
28 received earnings at the rate received at the time he left
29 the employment to enter the armed forces. A participating
30 employee in the armed forces shall not be considered an
31 employee during such period of service and no additional
32 death and no disability benefits are payable for death or
33 disability during such period.
34 Any participating employee who left his employment with a
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1 municipality or participating instrumentality to serve in the
2 armed forces of the United States and who again became a
3 participating employee within 90 days after completion of
4 full time active duty by entering the service of a different
5 municipality or participating instrumentality, which has
6 elected to allow creditable service for periods of military
7 service under the preceding paragraph, shall also be allowed
8 creditable service for his period of military service on the
9 same terms that would apply if he had been employed, before
10 entering military service, by the municipality or
11 instrumentality which employed him after he left the military
12 service and the employer costs arising in relation to such
13 grant of creditable service shall be charged to and paid by
14 that municipality or instrumentality.
15 Notwithstanding the foregoing, any participating employee
16 shall be entitled to creditable service as required by any
17 federal law relating to re-employment rights of persons who
18 served in the United States Armed Services. Such creditable
19 service shall be granted upon payment by the member of an
20 amount equal to the employee contributions which would have
21 been required had the employee continued in service at the
22 same rate of earnings during the military leave period, plus
23 interest at the effective rate.
24 5.1. In addition to any creditable service established
25 under paragraph 5 of this subsection (a), creditable service
26 may be granted for up to 24 months of service in the armed
27 forces of the United States.
28 In order to receive creditable service for military
29 service under this paragraph 5.1, a participating employee
30 must (1) apply to the Fund in writing and provide evidence of
31 the military service that is satisfactory to the Board; (2)
32 obtain the written approval of the current employer; and (3)
33 make contributions to the Fund equal to (i) the employee
34 contributions that would have been required had the service
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1 been rendered as a member, plus (ii) an amount determined by
2 the board to be equal to the employer's normal cost of the
3 benefits accrued for that military service, plus (iii)
4 interest on items (i) and (ii) from the date of first
5 membership in the Fund to the date of payment. If payment is
6 made during the 6-month period that begins 3 months after the
7 effective date of this amendatory Act of 1997, the required
8 interest shall be at the rate of 2.5% per year, compounded
9 annually; otherwise, the required interest shall be
10 calculated at the regular interest rate.
11 6. For out-of-state service: Creditable service shall be
12 granted for service rendered to an out-of-state local
13 governmental body under the following conditions: The
14 employee had participated and has irrevocably forfeited all
15 rights to benefits in the out-of-state public employees
16 pension system; the governing body of his participating
17 municipality or instrumentality authorizes the employee to
18 establish such service; the employee has 2 years current
19 service with this municipality or participating
20 instrumentality; the employee makes a payment of
21 contributions, which shall be computed at 8% (normal) plus 2%
22 (survivor) times length of service purchased times the
23 average rate of earnings for the first 2 years of service
24 with the municipality or participating instrumentality whose
25 governing body authorizes the service established plus
26 interest at the effective rate on the date such credits are
27 established, payable from the date the employee completes the
28 required 2 years of current service to date of payment. In
29 no case shall more than 120 months of creditable service be
30 granted under this provision.
31 7. For retroactive service: Any employee who could have
32 but did not elect to become a participating employee, or who
33 should have been a participant in the Municipal Public
34 Utilities Annuity and Benefit Fund before that fund was
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1 superseded, may receive creditable service for the period of
2 service not to exceed 50 months. Any employee who is a
3 participating employee on or after September 24, 1981 and who
4 was excluded from participation by the age restrictions
5 removed by Public Act 82-596 may receive creditable service
6 for the period, on or after January 1, 1979, excluded by the
7 age restriction and, in addition, if the governing body of
8 the participating municipality or participating
9 instrumentality elects to allow creditable service for all
10 employees excluded by the age restriction prior to January 1,
11 1979, for service during the period prior to that date
12 excluded by the age restriction. Any employee who was
13 excluded from participation by the age restriction removed by
14 Public Act 82-596 and who is not a participating employee on
15 or after September 24, 1981 may receive creditable service
16 for service after January 1, 1979. Creditable service under
17 this paragraph shall be granted upon payment of the employee
18 contributions which would have been required had he
19 participated, with interest at the effective rate for each
20 year from the end of the period of service established to
21 date of payment.
22 8. For accumulated unused sick leave: A participating
23 employee who is applying for a retirement annuity shall be
24 entitled to creditable service for that portion of the
25 employee's his accumulated unused sick leave for which
26 payment is not received, as follows:
27 a. Sick leave days shall be limited to those
28 accumulated under a sick leave plan established by a
29 participating municipality or participating
30 instrumentality which is available to all employees or a
31 class of employees.
32 b. Only sick leave days accumulated with a
33 participating municipality or participating
34 instrumentality with which the employee was in service
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1 within 60 days of the effective date of his retirement
2 annuity shall be credited; If the employee was in service
3 with more than one employer during this period only the
4 sick leave days with the employer with which the employee
5 has the greatest number of unpaid sick leave days shall
6 be considered.
7 c. The creditable service granted shall be
8 considered solely for the purpose of computing the amount
9 of the retirement annuity and shall not be used to
10 establish any minimum service period required by any
11 provision of the Illinois Pension Code, the effective
12 date of the retirement annuity, or the final rate of
13 earnings.
14 d. The creditable service shall be at the rate of
15 1/20 of a month for each full sick day, provided that no
16 more than 12 months may be credited under this
17 subdivision 8.
18 e. Employee contributions shall not be required for
19 creditable service under this subdivision 8.
20 f. Each participating municipality and
21 participating instrumentality with which an employee has
22 service within 60 days of the effective date of his
23 retirement annuity shall certify to the board the number
24 of accumulated unpaid sick leave days credited to the
25 employee at the time of termination of service.
26 9. For service transferred from another system: Credits
27 and creditable service shall be granted for service under
28 Article 3, 4, 5, 14 or 16 of this Act, to any active member
29 of this Fund, and to any inactive member who has been a
30 county sheriff, upon transfer of such credits pursuant to
31 Section 3-110.3, 4-108.3, 5-235, 14-105.6 or 16-131.4, and
32 payment by the member of the amount by which (1) the employer
33 and employee contributions that would have been required if
34 he had participated in this Fund as a sheriff's law
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1 enforcement employee during the period for which credit is
2 being transferred, plus interest thereon at the effective
3 rate for each year, compounded annually, from the date of
4 termination of the service for which credit is being
5 transferred to the date of payment, exceeds (2) the amount
6 actually transferred to the Fund. Such transferred service
7 shall be deemed to be service as a sheriff's law enforcement
8 employee for the purposes of Section 7-142.1.
9 (b) Creditable service - amount: 1. One month of
10 creditable service shall be allowed for each month for which
11 a participating employee made contributions as required under
12 Section 7-173, or for which creditable service is otherwise
13 granted hereunder. Not more than 1 month of service shall be
14 credited and counted for 1 calendar month, and not more than
15 1 year of service shall be credited and counted for any
16 calendar year. A calendar month means a nominal month
17 beginning on the first day thereof, and a calendar year means
18 a year beginning January 1 and ending December 31.
19 2. A seasonal employee shall be given 12 months of
20 creditable service if he renders the number of months of
21 service normally required by the position in a 12-month
22 period and he remains in service for the entire 12-month
23 period. Otherwise a fractional year of service in the number
24 of months of service rendered shall be credited.
25 3. An intermittent employee shall be given creditable
26 service for only those months in which a contribution is made
27 under Section 7-173.
28 (c) No application for correction of credits or
29 creditable service shall be considered unless the board
30 receives an application for correction while (1) the
31 applicant is a participating employee and in active
32 employment with a participating municipality or
33 instrumentality, or (2) while the applicant is actively
34 participating in a pension fund or retirement system which is
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1 a participating system under the Retirement Systems
2 Reciprocal Act. A participating employee or other applicant
3 shall not be entitled to credits or creditable service unless
4 the required employee contributions are made in a lump sum or
5 in installments made in accordance with board rule.
6 (d) Upon the granting of a retirement, surviving spouse
7 or child annuity, a death benefit or a separation benefit, on
8 account of any employee, all individual accumulated credits
9 shall thereupon terminate. Upon the withdrawal of additional
10 contributions, the credits applicable thereto shall thereupon
11 terminate.
12 (Source: P.A. 86-273; 86-1028; 87-740.)
13 (40 ILCS 5/7-145) (from Ch. 108 1/2, par. 7-145)
14 Sec. 7-145. Reversionary annuities.
15 (a) An employee entitled to a retirement annuity may
16 elect to provide a reversionary annuity for a beneficiary if,
17 at the time such retirement annuity begins:
18 1. Under the provisions of paragraph (a) 1 of Section
19 7-142 he is entitled to an immediate annuity of at least $10
20 per month; and
21 2. His accumulated additional and optional credits are
22 sufficient to provide a reversionary annuity, of at least $10
23 per month, for the beneficiary.
24 (b) An election shall become effective only:
25 1. If a written notice thereof by the employee is
26 received by the board together with his application for
27 retirement annuity; and
28 2. If the amount of the beneficiary's reversionary
29 annuity specified in the notice is not less than $10 nor more
30 than that which can be provided, at the time, by the
31 accumulation of additional and optional credits.
32 (c) The amount of the reversionary annuity shall be that
33 specified in the notice of election.
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1 (d) Reversionary annuity shall begin the first day of
2 the month following the month in which the last payment of
3 the employee annuity is payable because of death, provided
4 the beneficiary is alive at such time. If the beneficiary
5 does not survive the annuitant, no reversionary annuity shall
6 be payable, but only the death benefit as provided in
7 Sections 7-163 and 7-164.
8 (e) No reversionary annuity shall be awarded to be
9 effective on or after January 1, 1986, but reversionary
10 annuities granted prior to that date shall continue to be
11 paid.
12 (Source: P.A. 84-812.)
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 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
25 shall be based upon an estimate of assets available for
26 municipality contributions and liabilities therefor for the
27 fiscal year for which appropriations are to be made,
28 including funds available from levies for this purpose in
29 prior years.
30 (b) For the purpose of providing monies for municipality
31 contributions, beginning for the year in which a municipality
32 is included in this fund:
33 (1) A municipality other than a school district may
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1 levy a tax which shall not exceed the amount appropriated
2 for municipality contributions.
3 (2) A school district may levy a tax in an amount
4 reasonably calculated at the time of the levy to provide
5 for the municipality contributions required under Section
6 7-172 of this Article for the fiscal years for which
7 revenues from the levy will be received and all amounts
8 due for municipal contributions for previous years. Any
9 levy adopted before the effective date of this amendatory
10 Act of 1995 by a school district shall be considered
11 valid and authorized to the extent that the amount was
12 reasonably calculated at the time of the levy to provide
13 for the municipality contributions required under Section
14 7-172 for the fiscal years for which revenues from the
15 levy will be received and all amounts due for municipal
16 contributions for previous years. In no event shall a
17 budget adopted by a school district limit a levy of that
18 school district adopted under this Section.
19 (c) Any county which is served by a regional office of
20 education that serves 2 a part of an educational service
21 region comprised of two or more counties formed under Section
22 3A of the School Code may include in its appropriation an
23 amount sufficient to provide its proportionate share of the
24 municipality contributions for that regional office of
25 education of the region. The tax levy authorized by this
26 Section may include an amount necessary to provide monies for
27 this contribution.
28 (d) Any county that is a part of a multiple-county
29 health department or consolidated health department which is
30 formed under "An Act in relation to the establishment and
31 maintenance of county and multiple-county public health
32 departments", approved July 9, 1943, as amended, and which is
33 a participating instrumentality may include in the county's
34 appropriation an amount sufficient to provide its
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1 proportionate share of municipality contributions of the
2 department. The tax levy authorized by this Section may
3 include the amount necessary to provide monies for this
4 contribution.
5 (e) Such tax shall be levied and collected in like
6 manner, with the general taxes of the municipality and shall
7 be in addition to all other taxes which the municipality is
8 now or may hereafter be authorized to levy upon all taxable
9 property therein, and shall be exclusive of and in addition
10 to the amount of tax levied for general purposes under
11 Section 8-3-1 of the "Illinois Municipal Code", approved May
12 29, 1961, as amended, or under any other law or laws which
13 may limit the amount of tax which the municipality may levy
14 for general purposes. The tax may be levied by the governing
15 body of the municipality without being authorized as being
16 additional to all other taxes by a vote of the people of the
17 municipality.
18 (f) The county clerk of the county in which any such
19 municipality is located, in reducing tax levies shall not
20 consider any such tax as a part of the general tax levy for
21 municipality purposes, and shall not include the same in the
22 limitation of any other tax rate which may be extended.
23 (g) The amount of the tax to be levied in any year
24 shall, within the limits herein prescribed, be determined by
25 the governing body of the respective municipality.
26 (h) The revenue derived from any such tax levy shall be
27 used only for the purposes specified in this Article, and, as
28 collected, shall be paid to the treasurer of the municipality
29 levying the tax. Monies received by a county treasurer for
30 use in making contributions to a regional office of education
31 consolidated educational service region for its municipality
32 contributions shall be held by him for that purpose and paid
33 to the regional office of education region in the same manner
34 as other monies appropriated for the expense of the regional
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1 office region.
2 (Source: P.A. 89-329, eff. 8-17-95.)
3 (40 ILCS 5/7-172) (from Ch. 108 1/2, par. 7-172)
4 Sec. 7-172. Contributions by participating
5 municipalities and participating instrumentalities.
6 (a) Each participating municipality and each
7 participating instrumentality shall make payment to the fund
8 as follows:
9 1. municipality contributions in an amount
10 determined by applying the municipality contribution rate
11 to each payment of earnings paid to each of its
12 participating employees;
13 2. an amount equal to the employee contributions
14 provided by paragraphs (a) and (b) of Section 7-173,
15 whether or not the employee contributions are withheld as
16 permitted by that Section;
17 3. all accounts receivable, together with interest
18 charged thereon, as provided in Section 7-209;
19 4. if it has no participating employees with
20 current earnings, an amount payable which, over a period
21 of 20 years beginning with the year following an award of
22 benefit, will amortize, at the effective rate for that
23 year, any negative balance in its municipality reserve
24 resulting from the award. This amount when established
25 will be payable as a separate contribution whether or not
26 it later has participating employees.
27 (b) A separate municipality contribution rate shall be
28 determined for each calendar year for all participating
29 municipalities together with all instrumentalities thereof.
30 The municipality contribution rate shall be determined for
31 participating instrumentalities as if they were participating
32 municipalities. The municipality contribution rate shall be
33 the sum of the following percentages:
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1 1. The percentage of earnings of all the
2 participating employees of all participating
3 municipalities and participating instrumentalities which,
4 if paid over the entire period of their service, will be
5 sufficient when combined with all employee contributions
6 available for the payment of benefits, to provide all
7 annuities for participating employees, and the $3,000
8 death benefit payable under Sections 7-158 and 7-164,
9 such percentage to be known as the normal cost rate.
10 2. The percentage of earnings of the participating
11 employees of each participating municipality and
12 participating instrumentalities necessary to adjust for
13 the difference between the present value of all benefits,
14 excluding temporary and total and permanent disability
15 and death benefits, to be provided for its participating
16 employees and the sum of its accumulated municipality
17 contributions and the accumulated employee contributions
18 and the present value of expected future employee and
19 municipality contributions pursuant to subparagraph 1 of
20 this paragraph (b). This adjustment shall be spread over
21 the remainder of the period of 40 years from the first of
22 the year following the date of determination.
23 3. The percentage of earnings of the participating
24 employees of all municipalities and participating
25 instrumentalities necessary to provide the present value
26 of all temporary and total and permanent disability
27 benefits granted during the most recent year for which
28 information is available.
29 4. The percentage of earnings of the participating
30 employees of all participating municipalities and
31 participating instrumentalities necessary to provide the
32 present value of the net single sum death benefits
33 expected to become payable from the reserve established
34 under Section 7-206 during the year for which this rate
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1 is fixed.
2 5. The percentage of earnings necessary to meet any
3 deficiency arising in the Terminated Municipality
4 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,
12 such rate shall be the forest preserve district's regular
13 rate plus 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
17 Fund under Section 3-109.1 of this Code, the Board may adjust
18 the municipality's contribution rate so as to make up that
19 deficiency over such reasonable period of time as the Board
20 may 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
27 these employees, a portion of the municipality contributions
28 for such program participants shall be refunded or an extra
29 charge assessed so that the amount of municipality
30 contributions retained or received by the fund for all CETA
31 program participants shall be an amount equal to that which
32 would be provided by the separate municipality contribution
33 rate for all such program participants. Refunds shall be
34 made to prime sponsors of programs upon submission of a claim
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1 therefor and extra charges shall be assessed to participating
2 municipalities and instrumentalities. In establishing the
3 municipality contribution rate as provided in paragraph (b)
4 of this Section, the use of a separate municipality
5 contribution rate for program participants or the refund of a
6 portion of the municipality contributions, as the case may
7 be, may be considered.
8 (e) Computations of municipality contribution rates for
9 the following calendar year shall be made prior to the
10 beginning of each year, from the information available at the
11 time the computations are made, and on the assumption that
12 the employees in each participating municipality or
13 participating instrumentality at such time will continue in
14 service until the end of such calendar year at their
15 respective rates of earnings at such time.
16 (f) Any municipality which is the recipient of State
17 allocations representing that municipality's contributions
18 for retirement annuity purposes on behalf of its employees as
19 provided in Section 12-21.16 of the Illinois Public Aid Code
20 shall pay the allocations so received to the Board for such
21 purpose. Estimates of State allocations to be received
22 during any taxable year shall be considered in the
23 determination of the municipality's tax rate for that year
24 under Section 7-171. If a special tax is levied under
25 Section 7-171, none of the proceeds may be used to reimburse
26 the municipality for the amount of State allocations received
27 and paid to the Board. Any multiple-county or consolidated
28 health department which receives contributions from a county
29 under Section 11.2 of "An Act in relation to establishment
30 and maintenance of county and multiple-county health
31 departments", approved July 9, 1943, as amended, or
32 distributions under Section 3 of the Department of Public
33 Health Act, shall use these only for municipality
34 contributions by the health department.
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1 (g) Municipality contributions for the several purposes
2 specified shall, for township treasurers and employees in the
3 offices of the township treasurers who meet the qualifying
4 conditions for coverage hereunder, be allocated among the
5 several school districts and parts of school districts
6 serviced by such treasurers and employees in the proportion
7 which the amount of school funds of each district or part of
8 a district handled by the treasurer bears to the total amount
9 of all school funds handled by the treasurer.
10 From the funds subject to allocation among districts and
11 parts of districts pursuant to the School Code, the trustees
12 shall withhold the proportionate share of the liability for
13 municipality contributions imposed upon such districts by
14 this Section, in respect to such township treasurers and
15 employees and remit the same to the Board.
16 The municipality contribution rate for an educational
17 service center shall initially be the same rate for each year
18 as the regional office of education consolidated educational
19 service region or school district which serves as its
20 administrative agent. When actuarial data become available,
21 a separate rate shall be established as provided in
22 subparagraph (i) of this Section.
23 The municipality contribution rate for a public agency,
24 other than a vocational education cooperative, formed under
25 the Intergovernmental Cooperation Act shall initially be the
26 average rate for the municipalities which are parties to the
27 intergovernmental agreement. When actuarial data become
28 available, a separate rate shall be established as provided
29 in subparagraph (i) of this Section.
30 (h) Each participating municipality and participating
31 instrumentality shall make the contributions in the amounts
32 provided in this Section in the manner prescribed from time
33 to time by the Board and all such contributions shall be
34 obligations of the respective participating municipalities
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1 and participating instrumentalities to this fund. The
2 failure to deduct any employee contributions shall not
3 relieve the participating municipality or participating
4 instrumentality of its obligation to this fund. Delinquent
5 payments of contributions due under this Section may, with
6 interest, be recovered by civil action against the
7 participating municipalities or participating
8 instrumentalities. Municipality contributions, other than
9 the amount necessary for employee contributions and Social
10 Security contributions, for periods of service by employees
11 from whose earnings no deductions were made for employee
12 contributions to the fund, may be charged to the municipality
13 reserve for the municipality or participating
14 instrumentality.
15 (i) Contributions by participating instrumentalities
16 shall be determined as provided herein except that the
17 percentage derived under subparagraph 2 of paragraph (b) of
18 this Section, and the amount payable under subparagraph 5 of
19 paragraph (a) of this Section, shall be based on an
20 amortization period of 10 years.
21 (Source: P.A. 86-273; 87-850.)
22 (40 ILCS 5/7-199.3 new)
23 Sec. 7-199.3. To establish and administer deferred
24 compensation and tax-deferred annuity programs for units of
25 local government.
26 The Board may establish and administer deferred
27 compensation, tax deferred annuity, and similar tax-savings
28 programs for employees of units of local government, which
29 shall be known as the "IMRF-Plus" program. The program shall
30 provide for the Board to review proposed investment offerings
31 and shall require that only investments determined to be
32 acceptable by the Board may be used for investing
33 compensation contributed to the program.
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1 The program shall include appropriate provisions
2 pertaining to its day to day operation, including methods of
3 electing to contribute income, methods of changing the amount
4 of income contributed, methods of selecting from among
5 investment options available under the program, and any other
6 provisions that the Board may deem appropriate.
7 The program shall provide for the preparation of
8 pamphlets describing the program and outlining the options
9 and opportunities available to local government employees
10 under the program. These pamphlets shall be distributed from
11 time to time to all eligible employees.
12 The program established under this Section shall not be
13 implemented or amended until the Board is satisfied that
14 compensation contributed under the program is not subject to
15 income tax for the year in which it is earned and that the
16 taxation of such compensation will be deferred until the time
17 of its distribution to the employee.
18 The program shall also provide for the recovery of the
19 expenses of its administration by charging those expenses
20 against the earnings from investments, by charging fees
21 equitably prorated among the participating local government
22 employees, or by some other appropriate and equitable method
23 determined by the Board. Different methods for recovery of
24 administrative expenses may be provided in relation to
25 different types of investment programs, and the Board may
26 provide for the allocation of administration expenses among
27 varying types of programs for this purpose.
28 The Board shall review and oversee the administration of
29 the program.
30 This Section does not limit the power or authority of any
31 unit of local government, school district, or institution
32 supported in whole or in part by public funds to establish
33 and administer any other deferred compensation plans or
34 tax-deferred annuity programs that may be authorized by
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1 law.".