[ Search ] [ PDF text ] [ Legislation ]
[ Home ] [ Back ] [ Bottom ]
92_SB0802 LRB9205186EGfg 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 8-167, 8-174.1, 11-163, and 11-170.1 as 6 follows: 7 (40 ILCS 5/8-167) (from Ch. 108 1/2, par. 8-167) 8 Sec. 8-167. Restoration of rights. An employee who has 9 withdrawn as a refund the amounts credited for annuity 10 purposes, and who (i) re-enters service of the employer and 11 serves for periods comprising at least 90 days2 yearsafter 12 the date of the last refund paid to him or (ii) has completed 13 at least 2 years of service under a participating system (as 14 defined in the Retirement Systems Reciprocal Act) other than 15 this Fund after the date of the last refund, shall have his 16 annuity rights restored by compliance with the following 17 provisions: 18 (a) After such 90 day or 2 year period, whichever 19 applies, he shall repay in full to the Fund, while in 20 service,in fullall refunds received, together with 21 interest at the effective rate from the dates of refund 22 to the date of repayment.; or23 (b) If payment is not made in a single sum, the 24 repayment may be made in installments by deductions from 25 salary or otherwise in such amounts and manner as the 26 board, by rule, may prescribe, with interest at the 27 effective rate accruing on unpaid balances.; or28 (c) If the employee withdraws from service or dies 29 in service before full repayment is made, service credit 30 shall be restored in accordance with Section 8-230.3(b). 31such rights shall not be restored, but the amount,-2- LRB9205186EGfg 1including interest, repaid by him, but without any2further interest otherwise normally credited, shall be3refunded to him or to his widow, or in the manner4provided by the refund provisions of this Article if no5widow survives.6 (d) If the employee repays the refund while 7 participating in a participating system (as defined in 8 the Retirement Systems Reciprocal Act) other than this 9 Fund, the service credit restored must be used for a 10 proportional annuity calculated in accordance with the 11 Retirement Systems Reciprocal Act. If not so used, the 12 restored service credit shall be forfeited and the amount 13 of the repayment shall be refunded, without interest. 14 This Section applies also to any person who received a 15 refund from any annuity and benefit fund or pension fund 16 which was merged into and superseded by the annuity and 17 benefit fund provided for in this Article on or after 18 December 31, 1959. Upon repayment such person shall receive 19 credit for all annuity purposes in the annuity and benefit 20 fund provided for in this Article for the period of service 21 covered by the repaymentsuch refund. 22 The amount of refund repayment is considered as salary 23 deductions for age and service annuity and widow's annuity 24 purposes in the case of a male person. In the latter case 25 the amount of refund repayment is allocated in the applicable 26 proportion for age and service and widow's annuity purposes. 27 Such person shall also be credited with city contributions 28 for age and service annuity, and widow's annuity if a male 29 employee, in the amount which would have been credited and 30 accrued if such person had been a participant in and 31 contributor to the annuity and benefit fund provided for in 32 this Article during the period of such service on the basis 33 of his salary during such period. 34 (Source: P.A. 81-1536.) -3- LRB9205186EGfg 1 (40 ILCS 5/8-174.1) (from Ch. 108 1/2, par. 8-174.1) 2 Sec. 8-174.1. Employer contributions on behalf of 3 employees. 4 (a) The employer may make and may incur an obligation to 5 make contributions on behalf of its employees in an amount 6 not to exceed the employee contributions required by Sections 7 8-137, 8-161, 8-174, 8-182 and 8-182.1 for all salary earned 8 after December 31, 1981. If such employee contributions are 9 not made or an obligation to make such contributions is not 10 incurred by the employer on behalf of its employees, the 11 amount that could have been contributed shall continue to be 12 deducted from salary. If employee contributions are made by 13 the employer on behalf of its employees, they shall be 14 treated as employer contributions in determining tax 15 treatment under the United States Internal Revenue Code; 16 however, each city shall continue to withhold federal and 17 State income taxes based upon these contributions until the 18 Internal Revenue Service or the Federal courts rule that 19 pursuant to Section 414(h) of the United States Internal 20 Revenue Code, these contributions shall not be included as 21 gross income of the employee until such time as they are 22 distributed or made available. The employer may make these 23 contributions on behalf of its employees by a reduction in 24 the cash salary of the employee or by an offset against a 25 future salary increase or by a combination of a reduction in 26 salary and offset against a future salary increase. The 27 employer shall pay these employee contributions from the same 28 source of funds used in paying salary to the employee or, if 29 the employer is a Board of Education, it may also or 30 alternatively pay such contributions in whole or in part from 31 the proceeds of the pension contribution liability tax 32 authorized by Section 34-60.1 of the School Code, as amended. 33 If such a tax is levied with respect to any fiscal year of a 34 Board of Education, that portion of the contributions to be -4- LRB9205186EGfg 1 paid by the Board of Education on behalf of its employees for 2 that fiscal year from the proceeds of such a tax shall not be 3 due and payable into the Fund until the collection, in the 4 calendar year following the calendar year in which such levy 5 was made, of the actual tax bills extending the second 6 installment of real estate taxes for the Board of Education 7 for that calendar year, pursuant to Section 21-30 of the 8 Property Tax Code, and such Board of Education shall not be 9 required to pay those contributions to be paid from the 10 proceeds of such a tax into the Fund except as collected from 11 the extension of the actual tax bills. If employee 12 contributions are made by the employer on behalf of its 13 employees, they shall be treated for all purposes of this 14 Article 8, including Section 8-173, in the same manner and to 15 the same extent as employee contributions made by employees 16 and deducted from salary; provided, however, that 17 contributions which are made by a Board of Education on 18 behalf of its employees shall not be treated as a pension or 19 retirement obligation of the Board of Education for purposes 20 of Section 12 of "An Act in relation to State revenue sharing 21 with local governmental entities", approved July 31, 1969, as 22 amended. For purposes of Section 8-173, contributions made 23 by a Board of Education on behalf of its employees shall be 24 treated as contributions made by or on behalf of employees to 25 the Fund for the fiscal year for which the Board of Education 26 incurred the obligation to make such contributions. 27 (b) Subject to the requirements of federal law and the 28 rules of the Board, the Fund may allow the employee to elect 29 to have the employer pick up the optional contributions that 30 the employee has elected to pay to the Fund, and the 31 contributions so picked up shall be treated as employer 32 contributions for the purpose of determining federal tax 33 treatment. The employer shall pick up the contributions by a 34 reduction in the cash salary of the employee and shall pay -5- LRB9205186EGfg 1 contributions from the same source of funds that is used to 2 pay earnings of the employee. The election to have the 3 contributions picked up is irrevocable and the optional 4 contributions may not thereafter be prepaid, by direct 5 payment or otherwise. 6 If the provision authorizing the optional contribution 7 requires payment by a stated date (rather than the date of 8 withdrawal or retirement), the requirement will be deemed to 9 have been satisfied if (i) on or before the stated date the 10 employee executes a valid irrevocable election to have the 11 contributions picked up under this subsection, and (ii) the 12 picked-up contributions are in fact paid to the Fund as 13 provided in the election. 14 If employee contributions are picked up under this 15 subsection, they shall be treated for all purposes of this 16 Article 8, including Section 8-173, in the same manner and to 17 the same extent as optional employee contributions made prior 18 to the date picked up. 19 (Source: P.A. 88-670, eff. 12-2-94.) 20 (40 ILCS 5/11-163) (from Ch. 108 1/2, par. 11-163) 21 Sec. 11-163. Restoration of rights. An employee who has 22 withdrawn as a refund the amounts credited for annuity 23 purposes, and who (i) re-enters service of the employer and 24 serves for periods comprising at least 90 days2 yearsafter 25 the date of the last refund paid to him or (ii) has completed 26 at least 2 years of service under a participating system (as 27 defined in the Retirement Systems Reciprocal Act) other than 28 this Fund after the date of the last refund, shall have his 29 annuity rights restored by making application to the board in 30 writing for the privilege of re-instating such rights and by 31 compliance with the following provisions: 32 (a) After such 90 day or 2 year period, whichever 33 applies, he shall repay in full to the fund, while in -6- LRB9205186EGfg 1 service,in fullall refunds received, together with 2 interest at the effective rate from the application dates 3 of such refund or refunds to the date of repayment.;4 (b) If payment is not made in a single sum, 5 repayment may be made in installments by deductions from 6 salary or otherwise, in such manner and amounts as the 7 board, by rule, may prescribe, with interest at the 8 effective rate accruing on the unpaid balanceemployee9may elect. The employee shall be credited with interest 10 at the effective rate from the date of each installment 11 until full repayment is made. 12 (c) If the employee withdraws from service or dies 13 in service before full repayment is made or during the 14 required 90 day or 2 year period, service credit shall be 15 restored in accordance with Section 11-221.2(b)any16repayments made shall be refunded, without interest17thereon and in accordance with the refund provisions of18this Article. 19 (d) If the employee repays the refund while 20 participating in a participating system (as defined in 21 the Retirement Systems Reciprocal Act) other than this 22 Fund, the service credit restored must be used for a 23 proportional annuity calculated in accordance with the 24 Retirement Systems Reciprocal Act. If not so used, the 25 restored service credit shall be forfeited and the amount 26 of the repayment shall be refunded, without interest. 27 (Source: Laws 1963, p. 161.) 28 (40 ILCS 5/11-170.1) (from Ch. 108 1/2, par. 11-170.1) 29 Sec. 11-170.1. Pickup of employee contributions. 30 (a) The employer may pick up the employee contributions 31 required by Sections 11-156, 11-170, 11-174 and 11-175.1 for 32 salary earned after December 31, 1981. If employee 33 contributions are not picked up, the amount that would have -7- LRB9205186EGfg 1 been picked up under this amendatory Act of 1980 shall 2 continue to be deducted from salary. If contributions are 3 picked up they shall be treated as employer contributions in 4 determining tax treatment under the United States Internal 5 Revenue Code; however, the employer shall continue to 6 withhold Federal and state income taxes based upon these 7 contributions until the Internal Revenue Service or the 8 Federal courts rule that pursuant to Section 414(h) of the 9 United States Internal Revenue Code, these contributions 10 shall not be included as gross income of the employee until 11 such time as they are distributed or made available. The 12 employer shall pay these employee contributions from the same 13 source of funds which is used in paying salary to the 14 employee. The employer may pick up these contributions by a 15 reduction in the cash salary of the employee or by an offset 16 against a future salary increase or by a combination of a 17 reduction in salary and offset against a future salary 18 increase. If employee contributions are picked up they shall 19 be treated for all purposes of this Article 11, including 20 Section 11-169, in the same manner and to the same extent as 21 employee contributions made prior to the date picked up. 22 (b) Subject to the requirements of federal law and the 23 rules of the Board, the Fund may allow the employee to elect 24 to have the employer pick up the optional contributions that 25 the employee has elected to pay to the Fund, and the 26 contributions so picked up shall be treated as employer 27 contributions for the purpose of determining federal tax 28 treatment. The employer shall pick up the contributions by a 29 reduction in the cash salary of the employee and shall pay 30 contributions from the same source of funds that is used to 31 pay earnings of the employee. The election to have the 32 contributions picked up is irrevocable, and the optional 33 contributions may not thereafter be prepaid, by direct 34 payment or otherwise. -8- LRB9205186EGfg 1 If the provision authorizing the optional contribution 2 requires payment by a stated date (rather than the date of 3 withdrawal or retirement), the requirement will be deemed to 4 have been satisfied if (i) on or before the stated date the 5 employee executes a valid irrevocable election to have the 6 contributions picked up under this subsection, and (ii) the 7 picked-up contributions are in fact paid to the Fund as 8 provided in the election. 9 If employee contributions are picked up under this 10 subsection, they shall be treated for all purposes of this 11 Article 11, including Section 11-169, in the same manner and 12 to the same extent as optional employee contributions made 13 prior to the date picked up. 14 (Source: P.A. 81-1536.) 15 Section 90. The State Mandates Act is amended by adding 16 Section 8.25 as follows: 17 (30 ILCS 805/8.25 new) 18 Sec. 8.25. Exempt mandate. Notwithstanding Sections 6 19 and 8 of this Act, no reimbursement by the State is required 20 for the implementation of any mandate created by this 21 amendatory Act of the 92nd General Assembly. 22 Section 99. Effective date. This Act takes effect upon 23 becoming law.