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90_SB1906
40 ILCS 5/7-146 from Ch. 108 1/2, par. 7-146
40 ILCS 5/7-150 from Ch. 108 1/2, par. 7-150
40 ILCS 5/7-154 from Ch. 108 1/2, par. 7-154
40 ILCS 5/7-159 from Ch. 108 1/2, par. 7-159
40 ILCS 5/7-172 from Ch. 108 1/2, par. 7-172
40 ILCS 5/7-173.1 from Ch. 108 1/2, par. 7-173.1
40 ILCS 5/7-173.2 from Ch. 108 1/2, par. 7-173.2
40 ILCS 5/7-174 from Ch. 108 1/2, par. 7-174
30 ILCS 805/8.22 new
Amends the Illinois Municipal Retirement Fund Article of
the Pension Code. Provides for the payment of an annuity to
the surviving spouse of a former employee who, on the date of
death, meets the service requirements but not the age
requirements for receiving a retirement annuity. Allows a
retiring employee who is entitled to a refund of surviving
spouse contributions or excess SLEP (sheriff's law
enforcement employee) contributions to elect to receive a
separate annuity instead of a refund. Provides that periods
of qualified leave granted in compliance with the federal
Family and Medical Leave Act shall be ignored for purposes of
determining eligibility for disability benefits. Allows an
employee to make payment of optional contributions through
tax-deferred payroll deductions. Adds a second annuitant
member to the Board and gives both annuitant trustees the
right to vote on Board business. Makes other changes.
Amends the State Mandates Act to require implementation
without reimbursement. Effective immediately.
LRB9011415EGfg
LRB9011415EGfg
1 AN ACT to amend the Illinois Pension Code by changing
2 Sections 7-146, 7-150, 7-154, 7-159, 7-172, 7-173.1, 7-173.2,
3 and 7-174 and to amend the State Mandates Act.
4 Be it enacted by the People of the State of Illinois,
5 represented in the General Assembly:
6 Section 5. The Illinois Pension Code is amended by
7 changing Sections 7-146, 7-150, 7-154, 7-159, 7-172, 7-173.1,
8 7-173.2, and 7-174 as follows:
9 (40 ILCS 5/7-146) (from Ch. 108 1/2, par. 7-146)
10 Sec. 7-146. Temporary disability benefits - Eligibility.
11 Temporary disability benefits shall be payable to
12 participating employees as hereinafter provided.
13 (a) The participating employee shall be considered
14 temporarily disabled if:
15 1. He is unable to perform the duties of any position
16 which might reasonably be assigned to him by his employing
17 municipality or instrumentality thereof or participating
18 instrumentality due to mental or physical disability caused
19 by bodily injury or disease, other than as a result of
20 self-inflicted injury or addiction to narcotic drugs;
21 2. The Board has received written certifications from at
22 least 1 licensed and practicing physician and the governing
23 body of the employing municipality or instrumentality thereof
24 or participating instrumentality stating that the employee
25 meets the conditions set forth in subparagraph 1 of this
26 paragraph (a).
27 (b) A temporary disability benefit shall be payable to a
28 temporarily disabled employee provided:
29 1. He:
30 (i) has at least one 1 year of service immediately
31 preceding at the date the temporary disability was incurred
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1 and has made contributions to the fund for at least the
2 number of months of service normally required in his position
3 during a 12-month period, or has at least 5 years of service
4 credit, the last year of which immediately precedes such
5 date; or
6 (ii) had qualified under clause (i) above, but had an
7 interruption in service with the same participating
8 municipality or participating instrumentality of not more
9 than 3 months in the 12 months preceding the date the
10 temporary disability was incurred and was not paid a
11 separation benefit; or
12 (iii) had qualified under clause (i) above, but had an
13 interruption after 20 or more years of creditable service,
14 was not paid a separation benefit, and returned to service
15 prior to the date the disability was incurred.
16 Item (iii) of this subdivision shall apply to all
17 employees whose disabilities were incurred on or after July
18 1, 1985, and any such employee who becomes eligible for a
19 disability benefit under item (iii) shall be entitled to
20 receive a lump sum payment of any accumulated disability
21 benefits which may accrue from the date the disability was
22 incurred until the effective date of this amendatory Act of
23 1987.
24 Periods of qualified leave granted in compliance with the
25 federal Family and Medical Leave Act shall be ignored for
26 purposes of determining the number of consecutive months of
27 employment under this subdivision (b)1.
28 2. He has been temporarily disabled for at least 30
29 days, except where a former temporary or permanent and total
30 disability has reoccurred within 6 months after the employee
31 has returned to service.
32 3. He is receiving no earnings from a participating
33 municipality or instrumentality thereof or participating
34 instrumentality, except as allowed under subsection (f) of
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1 Section 7-152.
2 4. He has not refused to submit to a reasonable physical
3 examination by a physician appointed by the Board.
4 5. His disability is not the result of a mental or
5 physical condition which existed on the earliest date of
6 service from which he has uninterrupted service, including
7 prior service, at the date of his disability, provided that
8 this limitation shall not be applicable to a participating
9 employee who: (i) on the date of disability has 5 years of
10 creditable service, exclusive of creditable service for
11 periods of disability; or (ii) received no medical treatment
12 for the condition for the 3 years immediately prior to such
13 earliest date of service.
14 6. He is not separated from the service of the
15 participating municipality or instrumentality thereof or
16 participating instrumentality which employed him on the date
17 his temporary disability was incurred; for the purposes of
18 payment of temporary disability benefits, a participating
19 employee, whose employment relationship is terminated by his
20 employing municipality, shall be deemed not to be separated
21 from the service of his employing municipality or
22 participating instrumentality if he continues disabled by the
23 same condition and so long as he is otherwise entitled to
24 such disability benefit.
25 (Source: P.A. 86-272; 87-740.)
26 (40 ILCS 5/7-150) (from Ch. 108 1/2, par. 7-150)
27 Sec. 7-150. Total and permanent disability benefits -
28 Eligibility. Total and permanent disability benefits shall be
29 payable to participating employees as hereinafter provided,
30 including those employees receiving disability benefit on
31 July 1, 1962.
32 (a) A participating employee shall be considered totally
33 and permanently disabled if:
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1 1. He is unable to engage in any gainful activity
2 because of any medically determinable physical or mental
3 impairment which can be expected to result in death or be of
4 a long continued and indefinite duration, other than as a
5 result of self-inflicted injury or addiction to narcotic
6 drugs;
7 2. The Board has received a written certification by at
8 least 1 licensed and practicing physician stating that the
9 employee meets the qualifications of subparagraph 1 of this
10 paragraph (a).
11 (b) A totally and permanently disabled employee is
12 entitled to a permanent disability benefit provided:
13 1. He has exhausted his temporary disability benefits.
14 2. He:
15 (i) has at least one year of service immediately
16 preceding the date the disability was incurred and has made
17 contributions to the fund for at least the number of months
18 of service normally required in his position during a 12
19 month period, or has at least 5 years of service credit, the
20 last year of which immediately preceded the date the
21 disability was incurred; or
22 (ii) had qualified under clause (i) above, but had an
23 interruption in service with the same participating
24 municipality or participating instrumentality of not more
25 than 3 months in the 12 months preceding the date the
26 temporary disability was incurred and was not paid a
27 separation benefit; or
28 (iii) had qualified under clause (i) above, but had an
29 interruption after 20 or more years of creditable service,
30 was not paid a separation benefit, and returned to service
31 prior to the date the disability was incurred.
32 Item (iii) of this subdivision shall apply to all
33 employees whose disabilities were incurred on or after July
34 1, 1985, and any such employee who becomes eligible for a
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1 disability benefit under item (iii) shall be entitled to
2 receive a lump sum payment of any accumulated disability
3 benefits which may accrue from the date the disability was
4 incurred until the effective date of this amendatory Act of
5 1987.
6 Periods of qualified leave granted in compliance with the
7 federal Family and Medical Leave Act shall be ignored for
8 purposes of determining the number of consecutive months of
9 employment under this subdivision (b)2.
10 3. He is receiving no earnings from a participating
11 municipality or instrumentality thereof or participating
12 instrumentality, except as allowed under subsection (f) of
13 Section 7-152.
14 4. He has not refused to submit to a reasonable physical
15 examination by a physician appointed by the Board.
16 5. His disability is not the result of a mental or
17 physical condition which existed on the earliest date of
18 service from which he has uninterrupted service, including
19 prior service, at the date of his disability, provided that
20 this limitation shall not be applicable to a participating
21 employee who, without receiving a disability benefit,
22 receives 5 years of creditable service.
23 6. He is not separated from the service of his employing
24 participating municipality or instrumentality thereof or
25 participating instrumentality on the date his temporary
26 disability was incurred; for the purposes of payment of total
27 and permanent disability benefits, a participating employee,
28 whose employment relationship is terminated by his employing
29 municipality, shall be deemed not to be separated from the
30 service of his employing municipality or participating
31 instrumentality if he continues disabled by the same
32 condition and so long as he is otherwise entitled to such
33 disability benefit.
34 7. He has not refused to apply for a disability benefit
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1 under the Federal Social Security Act at the request of the
2 Board.
3 (c) A participating employee shall remain eligible and
4 may make application for a total and permanent disability
5 benefit within 90 days after the termination of his temporary
6 disability benefits or within such longer period terminating
7 at the end of the period during which his employing
8 municipality is prevented from employing him by reason of any
9 statutory prohibition.
10 (Source: P.A. 86-272; 87-740.)
11 (40 ILCS 5/7-154) (from Ch. 108 1/2, par. 7-154)
12 Sec. 7-154. Surviving spouse annuities - Eligibility.
13 (a) A surviving spouse annuity shall be payable to the
14 eligible surviving spouse of a participating employee, an
15 employee annuitant, or a person who on the date of death
16 would have been entitled to a retirement annuity, had he
17 applied for such annuity, and who dies at any time when a
18 surviving spouse annuity equals at least $5 per month,
19 provided:
20 (1) The surviving spouse (i) was married to the
21 participating employee for at least one year on the date
22 of death, or (ii) was married to the annuitant or person
23 entitled to a retirement annuity for at least one year
24 prior to the date of termination of service, or (iii) was
25 married to the deceased annuitant for at least one year
26 on the date of the deceased annuitant's death, if at the
27 time of termination of service the deceased annuitant was
28 married for at least one year to a spouse who does not
29 survive the deceased annuitant.
30 (2) The male deceased employee annuitant or such
31 other person entitled to a retirement annuity had
32 contributed to this fund for surviving spouse annuity
33 purposes for at least 1 year or continuously since the
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1 effective date of the participating municipality or
2 participating instrumentality.
3 (3) The female deceased employee annuitant or such
4 other person entitled to a retirement annuity was in
5 service on or after July 27, 1972, provided that the
6 annuity shall not be computed on the basis of any
7 retirement annuity effective before that date.
8 (4) If the employee dies before termination of
9 service, the employee did not exclude the spouse from any
10 death benefit or surviving spouse annuity pursuant to
11 subsection (b) of Section 7-118. A designation of
12 beneficiary naming a spouse and children jointly or a
13 trust pursuant to subsection (b) of Section 7-118 shall
14 preclude payment of a surviving spouse annuity.
15 (b) If a person is the spouse of a retiring
16 participating employee on the date of the initial payment of
17 a retirement annuity and is qualified to receive a surviving
18 spouse annuity upon the death of the employee and the
19 surviving spouse contributions are not refunded to the
20 employee, then a surviving spouse annuity shall be payable to
21 that person even if the marriage to the employee is dissolved
22 after that date.
23 (c) Eligibility of a surviving spouse shall be
24 determined as of the date of death. Only one surviving
25 spouse annuity shall be paid on account of the death of any
26 employee.
27 (d) With respect to surviving spouse benefits, the term
28 "person entitled to a retirement annuity" means:
29 (1) in the case of a person who dies before the
30 effective date of this amendatory Act of 1998, a person
31 who, on the date of death, meets both the age and service
32 requirements for receiving a retirement annuity from the
33 Fund, but was not actually receiving that annuity; and
34 (2) in the case of a person who dies on or after
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1 the effective date of this amendatory Act of 1998, a
2 person who, on the date of death, meets the service
3 requirements (but not necessarily the age requirements)
4 for receiving a retirement annuity from the Fund, and was
5 not actually receiving that annuity.
6 (Source: P.A. 87-740; 87-850.)
7 (40 ILCS 5/7-159) (from Ch. 108 1/2, par. 7-159)
8 Sec. 7-159. Surviving spouse annuity - refund of survivor
9 credits.
10 (a) Any employee annuitant who (1) upon the date a
11 retirement annuity begins is not then married, or (2) is
12 married to a person who would not qualify for surviving
13 spouse annuity if the person died on such date, is entitled
14 to a refund of the survivor credits including interest
15 accumulated on the date the annuity begins, excluding
16 survivor credits and interest thereon credited during periods
17 of disability, and no spouse shall have a right to any
18 surviving spouse annuity from this Fund. If the employee
19 annuitant reenters service and upon subsequent retirement has
20 a spouse who would qualify for a surviving spouse annuity,
21 the employee annuitant may pay the fund the amount of the
22 refund plus interest at the effective rate at the date of
23 payment. The payment shall qualify the spouse for a
24 surviving spouse annuity and the amount paid shall be
25 considered as survivor contributions.
26 (b) Instead of a refund under subsection (a), the
27 retiring employee may elect to convert the amount of the
28 refund into an annuity, payable separately from the
29 retirement annuity. If the annuitant dies before the
30 guaranteed amount has been distributed, the remainder shall
31 be paid in a lump sum to the designated beneficiary of the
32 annuitant. The Board shall adopt any rules neccessary for
33 the implementation of this subsection.
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1 (Source: P. A. 77-2121.)
2 (40 ILCS 5/7-172) (from Ch. 108 1/2, par. 7-172)
3 Sec. 7-172. Contributions by participating
4 municipalities and participating instrumentalities.
5 (a) Each participating municipality and each
6 participating instrumentality shall make payment to the fund
7 as follows:
8 1. municipality contributions in an amount
9 determined by applying the municipality contribution rate
10 to each payment of earnings paid to each of its
11 participating employees;
12 2. an amount equal to the employee contributions
13 provided by paragraphs (a) and (b) of Section 7-173,
14 whether or not the employee contributions are withheld as
15 permitted by that Section;
16 3. all accounts receivable, together with interest
17 charged thereon, as provided in Section 7-209;
18 4. if it has no participating employees with
19 current earnings, an amount payable which, over a period
20 of 20 years beginning with the year following an award of
21 benefit, will amortize, at the effective rate for that
22 year, any negative balance in its municipality reserve
23 resulting from the award. This amount when established
24 will be payable as a separate contribution whether or not
25 it later has participating employees.
26 (b) A separate municipality contribution rate shall be
27 determined for each calendar year for all participating
28 municipalities together with all instrumentalities thereof.
29 The municipality contribution rate shall be determined for
30 participating instrumentalities as if they were participating
31 municipalities. The municipality contribution rate shall be
32 the sum of the following percentages:
33 1. The percentage of earnings of all the
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1 participating employees of all participating
2 municipalities and participating instrumentalities which,
3 if paid over the entire period of their service, will be
4 sufficient when combined with all employee contributions
5 available for the payment of benefits, to provide all
6 annuities for participating employees, and the $3,000
7 death benefit payable under Sections 7-158 and 7-164,
8 such percentage to be known as the normal cost rate.
9 2. The percentage of earnings of the participating
10 employees of each participating municipality and
11 participating instrumentalities necessary to adjust for
12 the difference between the present value of all benefits,
13 excluding temporary and total and permanent disability
14 and death benefits, to be provided for its participating
15 employees and the sum of its accumulated municipality
16 contributions and the accumulated employee contributions
17 and the present value of expected future employee and
18 municipality contributions pursuant to subparagraph 1 of
19 this paragraph (b). This adjustment shall be spread over
20 the remainder of the period of 40 years (30 years by the
21 year 2006) from the first of the year following the date
22 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 or school district which
19 serves as its administrative agent. When actuarial data
20 become available, a separate rate shall be established as
21 provided in subparagraph (i) of this Section.
22 The municipality contribution rate for a public agency,
23 other than a vocational education cooperative, formed under
24 the Intergovernmental Cooperation Act shall initially be the
25 average rate for the municipalities which are parties to the
26 intergovernmental agreement. When actuarial data become
27 available, a separate rate shall be established as provided
28 in subparagraph (i) of this Section.
29 (h) Each participating municipality and participating
30 instrumentality shall make the contributions in the amounts
31 provided in this Section in the manner prescribed from time
32 to time by the Board and all such contributions shall be
33 obligations of the respective participating municipalities
34 and participating instrumentalities to this fund. The
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1 failure to deduct any employee contributions shall not
2 relieve the participating municipality or participating
3 instrumentality of its obligation to this fund. Delinquent
4 payments of contributions due under this Section may, with
5 interest, be recovered by civil action against the
6 participating municipalities or participating
7 instrumentalities. Municipality contributions, other than
8 the amount necessary for employee contributions and Social
9 Security contributions, for periods of service by employees
10 from whose earnings no deductions were made for employee
11 contributions to the fund, may be charged to the municipality
12 reserve for the municipality or participating
13 instrumentality.
14 (i) Contributions by participating instrumentalities
15 shall be determined as provided herein except that the
16 percentage derived under subparagraph 2 of paragraph (b) of
17 this Section, and the amount payable under subparagraph 5 of
18 paragraph (a) of this Section, shall be based on an
19 amortization period of 10 years.
20 (Source: P.A. 90-448, eff. 8-16-97.)
21 (40 ILCS 5/7-173.1) (from Ch. 108 1/2, par. 7-173.1)
22 Sec. 7-173.1. Additional contribution by sheriff's law
23 enforcement employees.
24 (a) Each sheriff's law enforcement employee shall make
25 an additional contribution of 1% of earnings, which shall be
26 considered as normal contributions. For earnings on or after
27 July 1, 1988, the additional contribution shall be 2% of
28 earnings.
29 This additional contribution shall be payable for
30 retroactive service periods which the employee elects to
31 establish and to periods of authorized leave of absence.
32 (b) If the employee is awarded a retirement annuity
33 under Section 7-142 and not under Section 7-142.1, then the
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1 additional contribution required under this Section shall be
2 refunded with interest or paid as provided in subsection (c).
3 If the employee returns to a participating status as a
4 sheriff's law enforcement employee, the employee may repay
5 the amount refunded with interest and upon subsequent
6 retirement be entitled to a recomputation of the retirement
7 annuity under Section 7-142.1 if the total service as a
8 sheriff's law enforcement employee meets the requirements of
9 that Section.
10 (c) Instead of a refund under subsection (b), the
11 retiring employee may elect to convert the amount of the
12 refund into an annuity, payable separately from the
13 retirement annuity. If the annuitant dies before the
14 guaranteed amount has been distributed, the remainder shall
15 be paid in a lump sum to the designated beneficiary of the
16 annuitant. The Board shall adopt any rules neccessary for
17 the implementation of this subsection.
18 (Source: P.A. 85-941.)
19 (40 ILCS 5/7-173.2) (from Ch. 108 1/2, par. 7-173.2)
20 Sec. 7-173.2. Pickup of employee contributions.
21 (a) Until July 1, 1984, each participating municipality
22 and each participating instrumentality may elect, for all of
23 its employees, to pick up the employee contributions required
24 by subparagraphs 1 and 3 of subsection (a) of Section 7-173
25 and, in the case of sheriff's law enforcement employees,
26 required by Section 7-173.1. The pick up may be for employee
27 contributions on earnings received by employees after
28 December 31, 1981 and shall be applicable to the
29 contributions on total earnings paid in any month. The
30 decision to pick up contributions shall be made by the
31 governing body.
32 Beginning July 1, 1984, the pick up of employee
33 contributions shall cease to be optional. Each participating
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1 municipality and participating instrumentality shall pick up
2 the employee contributions required by subparagraphs 1 and 3
3 of subsection (a) of Section 7-173 and, in the case of
4 sheriff's law enforcement employees, contributions required
5 by Section 7-173.1, for all compensation earned after such
6 date.
7 (b) Contributions that are picked up shall be treated as
8 employer contributions in determining tax treatment under the
9 United States Internal Revenue Code. The employee
10 contribution shall be paid from the same source of funds as
11 is used in payment of earnings to the employee and may not be
12 paid from funds raised by the tax levy authorized by Section
13 7-171. The contributions shall be picked up by a reduction
14 in earnings payment to employees. Employee contributions
15 that are picked up shall be considered as earnings under
16 Section 7-114. The pick up shall not apply to contributions
17 made for additional contributions under subsection (a) 2 of
18 Section 7-173, authorized leave of absence under subsection
19 (a)4 of Section 7-139, out-of-state service under subsection
20 (a) 6 of Section 7-139, retroactive service under subsection
21 (a) 7 of Section 7-139 or repayments of separation of
22 benefits under Section 7-109. If a participating
23 municipality or participating instrumentality fails to report
24 participating employee earnings which should have been
25 reported to the fund and pays the employee the full amount of
26 earnings including employee contributions which should have
27 been picked up and forwarded to the fund, then the employee
28 shall make payment of the employee contributions to the fund
29 on behalf of employer and such contributions shall be
30 considered as picked up contributions if paid in the year the
31 earnings were received, or by January 31st of the following
32 year, and are reflected as picked up on reports to the
33 Internal Revenue Service. If they cannot be so reflected, or
34 if received after that date, they shall not be treated as
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1 picked up contributions. Picked up employee contributions
2 shall be considered as employee contributions in computing
3 benefits paid under this Article 7.
4 (c) Subject to the requirements of federal law, an
5 employee may elect to have the employer pick up optional
6 contributions that the employee has elected to pay to the
7 Fund, and the contributions so picked up shall be treated as
8 employer contributions for the purposes of determining
9 federal tax treatment. The employer shall pick up the
10 contributions by a reduction in the cash salary of the
11 employee and shall pay the contributions from the same source
12 of funds that is used to pay earnings to the employee. The
13 employee's election to have the optional contributions picked
14 up is irrevocable and the optional contributions may not
15 thereafter be prepaid, by direct payment or otherwise.
16 (Source: P.A. 84-812.)
17 (40 ILCS 5/7-174) (from Ch. 108 1/2, par. 7-174)
18 Sec. 7-174. Board created.
19 (a) A board of 9 8 members shall constitute a board of
20 trustees authorized to carry out the provisions of this
21 Article. Each trustee shall be a participating employee of a
22 participating municipality or participating instrumentality
23 or an annuitant of the Fund and no person shall be eligible
24 to become a trustee after January 1, 1979 who does not have
25 at least 8 years of creditable service.
26 (b) The board shall consist of representatives of
27 various groups as follows:
28 1. 4 trustees shall be a chief executive officer,
29 chief finance officer, or other officer, executive or
30 department head of a participating municipality or
31 participating instrumentality, and each such trustee
32 shall be designated as an executive trustee.
33 2. 3 trustees shall be employees of a participating
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1 municipality or participating instrumentality and each
2 such trustee shall be designated as an employee trustee.
3 3. 2 trustees One trustee shall be annuitants an
4 annuitant of the Fund, each of whom who shall be
5 designated an the annuitant trustee.
6 (c) A person elected as a trustee shall qualify as a
7 trustee, after declaration by the board that he has been duly
8 elected, upon taking and subscribing to the constitutional
9 oath of office and filing same in the office of the Fund.
10 (d) The term of office of each trustee shall begin upon
11 January 1 of the year following the year in which he is
12 elected and shall continue for a period of 5 years and until
13 a successor has been elected and qualified, or until prior
14 resignation, death, incapacity or disqualification. However,
15 the additional annuitant trustee added by this amendatory Act
16 of 1998 shall first be elected at an election held within 9
17 months after the effective date of this amendatory Act, for a
18 term commencing on the later of January 1, 1999 or the date
19 of election and ending on December 31, 2002.
20 (e) Any elected trustee (other than the annuitant
21 trustee) shall be disqualified immediately upon termination
22 of employment with all participating municipalities and
23 instrumentalities thereof or upon any change in status which
24 removes any such trustee from all employments within the
25 group he represents. An The annuitant trustee shall be
26 disqualified upon termination of his or her annuity.
27 (f) The trustees shall fill any vacancy in the board by
28 appointment, for the period until the next election of
29 trustees, or, if the remaining term is less than 2 years, for
30 the remainder of the term, and until his successor has been
31 elected and qualified.
32 (g) Trustees shall serve without compensation, but shall
33 be reimbursed for any reasonable expenses incurred in
34 attending meetings of the board and in performing duties on
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1 behalf of the Fund and for the amount of any earnings
2 withheld by any employing municipality or participating
3 instrumentality because of attendance at any board meeting.
4 (h) Each trustee other than the annuitant trustee shall
5 be entitled to one vote on any and all actions before the
6 board; the annuitant trustee is not entitled to vote on any
7 matter. At least 5 least 4 concurring votes shall be
8 necessary for every decision or action by the board at any of
9 its meetings. No decision or action shall become effective
10 unless presented and so approved at a regular or duly called
11 special meeting of the board.
12 (Source: P.A. 89-136, eff. 7-14-95.)
13 Section 90. The State Mandates Act is amended by adding
14 Section 8.22 as follows:
15 (30 ILCS 805/8.22 new)
16 Sec. 8.22. Exempt mandate. Notwithstanding Sections 6
17 and 8 of this Act, no reimbursement by the State is required
18 for the implementation of any mandate created by this
19 amendatory Act of 1998.
20 Section 99. Effective date. This Act takes effect upon
21 becoming law.