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92_SB0566 LRB9204511EGfg 1 AN ACT in relation to public employee benefits. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Illinois Pension Code is amended by 5 changing Sections 7-151, 7-152, 7-166, and 7-172 as follows: 6 (40 ILCS 5/7-151) (from Ch. 108 1/2, par. 7-151) 7 Sec. 7-151. Total and permanent disability benefits - 8 Commencement and duration. Permanent disability benefits 9 shall be payable: 10 (a) As of the date temporary disability benefits are 11 exhausted; 12 (b) Once a month as of the end of each month; 13 (c) For less than a month in a fraction equal to that 14 created by making the number of days of disability in the 15 month the numerator and the number of the days in the month 16 the denominator; 17 (d) To the beneficiary of a deceased employee for the 18 unpaid amount accrued to the date of death; 19 (e) While total and permanent disability continues; 20 (f) For the period ending on the last day of the month 21 which is the later of the following: 22 1. the month that the participating employee attains the 23 age for a full Social Security old-age insurance benefitage2465; 25 2. the month which is 5 years after the month the 26 participating employee became disabled as provided in Section 27 7-146. 28 (Source: P.A. 86-272.) 29 (40 ILCS 5/7-152) (from Ch. 108 1/2, par. 7-152) 30 Sec. 7-152. Disability benefits - Amount. The amount of -2- LRB9204511EGfg 1 the monthly temporary and total and permanent disability 2 benefits shall be 50% of the participating employee's final 3 rate of earnings on the date disability was incurred, subject 4 to the following adjustments: 5 (a) If the participating employee has a reduced rate of 6 earnings at the time his employment ceases because of 7 disability, the rate of earnings shall be computed on the 8 basis of his last 12 month period of full-time employment. 9 (b) If the participating employee is eligible for a 10 disability benefit under the federal Social Security Act, the 11 amount of monthly disability benefits shall be reduced, but 12 not to less than $10 a month, by the amount he would be 13 eligible to receive as a disability benefit under the federal 14 Social Security Act, whether or not because of service as a 15 covered employee under this Article. The reduction shall be 16 effective as of the month the employee is eligible for Social 17 Security disability benefits. The Board may make such 18 reduction if it appears that the employee may be so eligible 19 pending determination of eligibility and make an appropriate 20 adjustment if necessary after such determination. If the 21 employee, because of his refusal to accept rehabilitation 22 services under the federal Rehabilitation Act of 1973 or the 23 federal Social Security Act, or because he is receiving 24 workers' compensation benefits, has his Social Security 25 benefits reduced or terminated, the disability benefit shall 26 be reduced as if the employee were receiving his full Social 27 Security disability benefit. 28 (c) If the employee (i) is over the age for a full 29 Social Security old-age insurance benefitage 65, (ii) was 30 not eligible for a Social Security disability benefit 31 immediately before reaching that age,age 65and (iii) is 32 eligible for a full Social Security old-age insurance 33 benefit, then the amount of the monthly disability benefit 34 shall be reduced, but not to less than $10 a month, by the -3- LRB9204511EGfg 1 amount of the old-age insurance benefit to which the employee 2 is entitled, whether or not the employee applies for the 3 Social Security old-age insurance benefit. This reduction 4 shall be made in the month after the month in which the 5 employee attains the age for a full Social Security old-age 6 insurance benefitage 65. However, if the employee was 7 receiving a Social Security disability benefit before 8 reaching the age for a full Social Security old-age insurance 9 benefitage 65, the disability benefits after that ageage 6510 shall be determined under subsection (b) of this Section. 11 (d) The amount of disability benefits shall not be 12 reduced by reason of any increase, other than one resulting 13 from a correction in the employee's wage records, in the 14 amount of disability or old-age insurance benefits under the 15 federal Social Security Act which takes effect after the 16 month of the initial reduction under paragraph (b) or (c) of 17 this Section. 18 (e) If the employee in any month receives compensation 19 from gainful employment which is more than 25% of the final 20 rate of earnings on which his disability benefits are based, 21 the temporary disability benefit payable for that month shall 22 be reduced by an amount equal to such excess. 23 (f) An employee who has been disabled for at least 30 24 days may return to work for the employer on a part-time basis 25 for a trial work period of up to one year, during which the 26 disability shall be deemed to continue. Service credit shall 27 continue to accrue and the disability benefit shall continue 28 to be paid during the trial work period, but the benefit 29 shall be reduced by the amount of earnings received by the 30 disabled employee. Return to service on a full-time basis 31 shall terminate the trial work period. The reduction under 32 this subsection (f) shall be in lieu of the reduction, if 33 any, required under subsection (e). 34 (g) Beginning January 1, 1988, every total and permanent -4- LRB9204511EGfg 1 disability benefit shall be increased by 3% of the original 2 amount of the benefit, not compounded, on each January 1 3 following the later of (1) the date the total and permanent 4 disability benefit begins, or (2) the date the total and 5 permanent disability benefit would have begun if the employee 6 had been paid a temporary disability benefit for 30 months. 7 (Source: P.A. 87-740.) 8 (40 ILCS 5/7-166) (from Ch. 108 1/2, par. 7-166) 9 Sec. 7-166. Separation benefits - Eligibility. 10 Separation benefits shall be payable as hereinafter set 11 forth: 12 1. Upon separation from the service of all 13 participating municipalities and instrumentalities 14 thereof and participating instrumentalities, any 15 participating employee who, on the date of application 16 for such benefit, is not entitled to a retirement annuity 17 shall be entitled to a separation benefit.;18 2. Upon separation from the service of all 19 participating municipalities and instrumentalities 20 thereof and participating instrumentalities, any 21 participating employee who, on the date of application 22 for such benefit, is entitled to a retirement annuity of 23 less than $30 per month for life may elect to take a 24 separation benefit in lieu of the retirement annuity. 25 3. Upon separation from the service of all 26 participating municipalities and instrumentalities 27 thereof and participating instrumentalities, any 28 participating employee who, on the date of application 29 for such benefit, is entitled to a retirement annuity, 30 but wishes instead to use the amounts to his or her 31 credit in the Fund to purchase credit in another 32 retirement plan, may elect to take a separation benefit 33 in lieu of the retirement annuity. -5- LRB9204511EGfg 1 (Source: P.A. 91-887, eff. 7-6-00.) 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 -6- LRB9204511EGfg 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 that is allowable under 21 generally accepted accounting principlesof 40 years from22the first of the year following the date of23determination. 24 3. The percentage of earnings of the participating 25 employees of all municipalities and participating 26 instrumentalities necessary to provide the present value 27 of all temporary and total and permanent disability 28 benefits granted during the most recent year for which 29 information is available. 30 4. The percentage of earnings of the participating 31 employees of all participating municipalities and 32 participating instrumentalities necessary to provide the 33 present value of the net single sum death benefits 34 expected to become payable from the reserve established -7- LRB9204511EGfg 1 under Section 7-206 during the year for which this rate 2 is fixed. 3 5. The percentage of earnings necessary to meet any 4 deficiency arising in the Terminated Municipality 5 Reserve. 6 (c) A separate municipality contribution rate shall be 7 computed for each participating municipality or participating 8 instrumentality for its sheriff's law enforcement employees. 9 A separate municipality contribution rate shall be 10 computed for the sheriff's law enforcement employees of each 11 forest preserve district that elects to have such employees. 12 For the period from January 1, 1986 to December 31, 1986, 13 such rate shall be the forest preserve district's regular 14 rate plus 2%. 15 In the event that the Board determines that there is an 16 actuarial deficiency in the account of any municipality with 17 respect to a person who has elected to participate in the 18 Fund under Section 3-109.1 of this Code, the Board may adjust 19 the municipality's contribution rate so as to make up that 20 deficiency over such reasonable period of time as the Board 21 may determine. 22 (d) The Board may establish a separate municipality 23 contribution rate for all employees who are program 24 participants employed under the federal Comprehensive 25 Employment Training Act by all of the participating 26 municipalities and instrumentalities. The Board may also 27 provide that, in lieu of a separate municipality rate for 28 these employees, a portion of the municipality contributions 29 for such program participants shall be refunded or an extra 30 charge assessed so that the amount of municipality 31 contributions retained or received by the fund for all CETA 32 program participants shall be an amount equal to that which 33 would be provided by the separate municipality contribution 34 rate for all such program participants. Refunds shall be -8- LRB9204511EGfg 1 made to prime sponsors of programs upon submission of a claim 2 therefor and extra charges shall be assessed to participating 3 municipalities and instrumentalities. In establishing the 4 municipality contribution rate as provided in paragraph (b) 5 of this Section, the use of a separate municipality 6 contribution rate for program participants or the refund of a 7 portion of the municipality contributions, as the case may 8 be, may be considered. 9 (e) Computations of municipality contribution rates for 10 the following calendar year shall be made prior to the 11 beginning of each year, from the information available at the 12 time the computations are made, and on the assumption that 13 the employees in each participating municipality or 14 participating instrumentality at such time will continue in 15 service until the end of such calendar year at their 16 respective rates of earnings at such time. 17 (f) Any municipality which is the recipient of State 18 allocations representing that municipality's contributions 19 for retirement annuity purposes on behalf of its employees as 20 provided in Section 12-21.16 of the Illinois Public Aid Code 21 shall pay the allocations so received to the Board for such 22 purpose. Estimates of State allocations to be received 23 during any taxable year shall be considered in the 24 determination of the municipality's tax rate for that year 25 under Section 7-171. If a special tax is levied under 26 Section 7-171, none of the proceeds may be used to reimburse 27 the municipality for the amount of State allocations received 28 and paid to the Board. Any multiple-county or consolidated 29 health department which receives contributions from a county 30 under Section 11.2 of "An Act in relation to establishment 31 and maintenance of county and multiple-county health 32 departments", approved July 9, 1943, as amended, or 33 distributions under Section 3 of the Department of Public 34 Health Act, shall use these only for municipality -9- LRB9204511EGfg 1 contributions by the health department. 2 (g) Municipality contributions for the several purposes 3 specified shall, for township treasurers and employees in the 4 offices of the township treasurers who meet the qualifying 5 conditions for coverage hereunder, be allocated among the 6 several school districts and parts of school districts 7 serviced by such treasurers and employees in the proportion 8 which the amount of school funds of each district or part of 9 a district handled by the treasurer bears to the total amount 10 of all school funds handled by the treasurer. 11 From the funds subject to allocation among districts and 12 parts of districts pursuant to the School Code, the trustees 13 shall withhold the proportionate share of the liability for 14 municipality contributions imposed upon such districts by 15 this Section, in respect to such township treasurers and 16 employees and remit the same to the Board. 17 The municipality contribution rate for an educational 18 service center shall initially be the same rate for each year 19 as the regional office of education or school district which 20 serves as its administrative agent. When actuarial data 21 become available, a separate rate shall be established as 22 provided in 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 -10- LRB9204511EGfg 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. 90-448, eff. 8-16-97.) 22 Section 90. The State Mandates Act is amended by adding 23 Section 8.25 as follows: 24 (30 ILCS 805/8.25 new) 25 Sec. 8.25. Exempt mandate. Notwithstanding Sections 6 26 and 8 of this Act, no reimbursement by the State is required 27 for the implementation of any mandate created by this 28 amendatory Act of the 92nd General Assembly. 29 Section 99. Effective date. This Act takes effect upon 30 becoming law.