Public Act 097-0973
 
SB3629 EnrolledLRB097 15761 JDS 60905 b

    AN ACT concerning public employee benefits.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Illinois Pension Code is amended by changing
Sections 12-116, 12-127, 12-133, 12-149, 12-167, 12-168,
12-169, and 12-183 as follows:
 
    (40 ILCS 5/12-116)  (from Ch. 108 1/2, par. 12-116)
    Sec. 12-116. Fiscal year.
    "Fiscal year": For periods prior to July 1, 2012, the The
year commencing with July 1st and ending with June 30th next
following. Beginning January 1, 2013, the year commencing
January 1 and ending December 31. The fiscal year which begins
July 1, 2012 shall end December 31, 2012.
(Source: Laws 1963, p. 161.)
 
    (40 ILCS 5/12-127)  (from Ch. 108 1/2, par. 12-127)
    Sec. 12-127. Computation of service.
    (a) If an employee during any leave of absence for 30 days
or more without pay who is not receiving ordinary disability or
duty disability benefits contributes the percentage of salary
theretofore deducted from his salary for annuity purposes, the
employer shall contribute corresponding amounts for such
purposes. Payment for any approved leave of absence shall not
be valid unless made during such absence or within 30 days from
expiration thereof. The aggregate of leaves of absence for
which contributions may be made during the entire employee's
service shall be 1 year.
    (b) In computing service, credit shall be given for all
leaves of absence subject to the limitations specified in the
following paragraph during the time an employee was engaged in
the military or naval service of the United States of America
during the years 1914 to 1919, inclusive, or between September
16, 1940, and July 25, 1947, or between June 25, 1950, and
January 31, 1955, and any such service rendered after January
31, 1955, and who within 180 days subsequent to the completion
of military or naval service re-enters the service of the
employer.
    The total credit any employee shall receive for military or
naval service during the entire term of service as an employee
shall be subject to the following conditions and limitations:
        (1) if entry into military or naval service occurs
    after July 1, 1961, the total credit shall not exceed 3
    years;
        (2) if entry into military or naval service occurred on
    or prior to July 1, 1961, the total credit shall not exceed
    5 years;
        (3) an employee who on July 1, 1961, had accrued more
    than 5 years of such military or naval service shall be
    entitled to the total amount of such accrued credit.
    The contributions an employee would have made during the
period of such military or naval service, together with the
prescribed employer contributions, shall be made by the
employer and shall be based on the salary for the position
occupied by the employee on the date of commencement of the
leave of absence.
    (c) For all purposes of this Article except the provisions
of Section 12-133, the following shall constitute a year of
service in any fiscal year for salary payable according to the
basis specified: Monthly Basis: 4 months; Weekly Basis: 17
weeks; Daily Basis: 100 days; Hourly Basis: 800 hours, except
that in the case of an employee becoming a participant of the
fund on and after July 1, 1973, the following schedule shall
govern for all purposes of this Article: Service during 9
months or more in any fiscal year shall constitute a year of
service; 6 to 8 months, inclusive, 3/4 of a year; 3 to 5
months, inclusive, 1/2 year; less than 3 months, 1/4 of a year;
15 days or more in any month, a month of service. However, for
the 6-month fiscal year July 1, 2012 through December 31, 2012,
the amount of service earned shall not exceed 1/2 year.
    (d) The periods an employee received ordinary or duty
disability benefit shall be included in the computation of
service.
    (e) Upon receipt of the specified payment, credits
transferred to a fund established under this Article pursuant
to subsection (d) of Section 8-226.1, subsection (d) of Section
9-121.1, or Section 14-105.1 of this Code shall be included in
the computation of service.
    (f) A contributing employee may establish additional
service credit for a period of up to 2 years spent in active
military service for which he or she does not qualify for
credit under subsection (b), provided that (1) the person was
not dishonorably discharged from the military service, and (2)
the amount of service credit established by the person under
this subsection (f), when added to the amount of any military
service credit granted to the person under subsection (b),
shall not exceed 5 years. In order to establish military
service credit under this subsection (f), the applicant must
submit a written application to the Fund, including a copy of
the applicant's discharge from military service, and pay to the
Fund (1) employee contributions at the rates provided in this
Article based upon the person's salary on the last date as a
participating employee prior to the military service, or on the
first date as a participating employee after the military
service, whichever is greater, plus (2) an amount determined by
the board to be equal to the employer's normal cost of the
benefits accrued for such military service, plus (3) regular
interest on items (1) and (2) from the date of conclusion of
the military service to the date of payment. Contributions must
be paid in a single lump sum before the credit will be granted.
Credit established under this subsection may be used for
pension purposes only.
    (g) A contributing employee may establish additional
service credit for a period of up to 5 years of employment by
the United States federal government for which he or she does
not qualify for credit under any other provision of this
Article, provided that (1) the amount of service credit
established by the person under this subsection (g), when added
to the amount of all military service credit granted to the
person under subsections (b) and (f), shall not exceed 5 years,
and (2) any credit received for the federal employment in any
other public pension fund or retirement system has been
terminated or relinquished.
    In order to establish service credit under this subsection
(g), the applicant must submit a written application to the
Fund, including such documentation of the federal employment as
the Board may require, and pay to the Fund (1) employee
contributions at the rates provided in this Article based upon
the person's salary on the last date as a participating
employee prior to the federal service, or on the first date as
a participating employee after the federal service, whichever
is greater, plus (2) an amount determined by the Board to be
equal to the employer's normal cost of the benefits accrued for
such federal service, plus (3) regular interest on items (1)
and (2) from the date of conclusion of the federal service to
the date of payment. Contributions must be paid in a single
lump sum before the credit is granted. Credit established under
this subsection may be used for pension purposes only.
(Source: P.A. 86-272; 86-1488; 87-1265.)
 
    (40 ILCS 5/12-133)   (from Ch. 108 1/2, par. 12-133)
    Sec. 12-133. Fixed benefit retirement annuity.
    (a) Subject to the provisions of paragraph (b) of this
Section, the retirement annuity for any employee who withdraws
from service on or after January 1, 1983 and before January 1,
1990, at age 60 or over, having at least 4 years of service,
shall be 1.70% for each of the first 10 years of service; 2.00%
for each of the next 10 years of service; 2.40% for each year
of service in excess of 20 but not exceeding 30; and 2.80% for
each year of service in excess of 30, with a pro-rated amount
for service of less than a full year, based upon the highest
average annual salary for any 4 consecutive years within the
last 10 years of service immediately preceding the date of
withdrawal, provided that: (1) if retirement of the employee
occurs below age 60, such annuity shall be reduced 1/2 of 1%
for each month or fraction thereof that the employee's age is
less than 60, except that an employee retiring at age 55 or
over but less than age 60, having at least 35 years of service,
shall not be subject to the reduction in his retirement annuity
because of retirement below age 60; (2) the annuity shall not
exceed 75% of such average annual salary; (3) the actual salary
shall be considered in the computation of this annuity.
    The retirement annuity for any employee who withdraws from
service on or after January 1, 1990 and prior to December 31,
2003 at age 50 or over with at least 10 years of service, or at
age 60 or over with at least 4 years of service, shall be 1.90%
for each of the first 10 years of service, 2.20% for each of
the next 10 years of service, 2.40% for each of the next 10
years of service, and 2.80% for each year of service in excess
of 30, with a pro-rated amount for service of less than a full
year, based upon the highest average annual salary for any 4
consecutive years within the last 10 years of service
immediately preceding the date of withdrawal, provided that:
        (1) if retirement of the employee occurs below age 60,
    such annuity shall be reduced 1/4 of 1% (1/2 of 1% in the
    case of withdrawal from service before January 1, 1991) for
    each month or fraction thereof that the employee's age is
    less than 60, except that an employee retiring at age 50 or
    over having at least 30 years of service shall not be
    subject to the reduction in retirement annuity because of
    retirement below age 60;
        (2) the annuity shall not exceed 80% of such average
    annual salary; and
        (3) the actual salary shall be considered in the
    computation of this annuity.
    An employee who withdraws from service on or after December
31, 2003, at age 50 or over with at least 10 years of service or
at age 60 or over with at least 4 years of service, shall
receive, in lieu of any other retirement annuity provided for
in this Section, a retirement annuity calculated as follows:
for each year of service immediately preceding the date of
withdrawal, 2.40% of the highest average annual salary for any
4 consecutive years within the last 10 years of service
immediately preceding the date of withdrawal, with a prorated
amount for service of less than a full year, provided that:
        (1) if retirement of the employee occurs below age 60,
    such annuity shall be reduced 1/4 of 1% for each month or
    fraction thereof that the employee's age is less than 60,
    except that an employee retiring at age 50 or over having
    at least 30 years of service shall not be subject to the
    reduction in retirement annuity because of retirement
    below age 60;
        (2) the annuity shall not exceed 80% of such average
    annual salary; and
        (3) the actual salary shall be considered in the
    computation of this annuity.
    Notwithstanding any other formula, the annuity for
employees retiring on or after January 31, 2004 and on or
before February 29, 2004 with at least 30 years of service
shall be 80% of average annual salary for any 4 consecutive
years within the last 10 years of service immediately preceding
the date of withdrawal.
    (b) In lieu of the retirement annuity provided as an
actuarial equivalent of the total accumulations from
contributions by the employee, contributions by the employer,
and prior service annuity plus regular interest, an employee in
service prior to July 1, 1971 shall be entitled to the largest
applicable retirement annuity provided in this Section if the
same is larger than the annuity provided in other Sections of
this Article.
    (c) The following schedule shall govern the computation of
service for the fixed benefit annuities provided by this
Section: Service during 9 months or more during any fiscal year
shall constitute a year of service; 6 to 8 months, inclusive,
3/4 of a year; 3 to 5 months, inclusive, 1/2 year; less than 3
months, 1/4 of a year; 15 days or more in any month, a month of
service. However, for the 6-month fiscal year July 1, 2012
through December 31, 2012, the amount of service earned shall
not exceed 1/2 year.
    (d) The other provisions of this Section shall not apply in
the case of any former employee who is receiving a retirement
annuity from the fund and who re-enters service as an employee,
unless the employee renders from and after the date of
re-entry, at least 3 years of additional service.
(Source: P.A. 93-654, eff. 1-16-04.)
 
    (40 ILCS 5/12-149)   (from Ch. 108 1/2, par. 12-149)
    Sec. 12-149. Financing. The board of park commissioners of
any such park district shall annually levy a tax (in addition
to the taxes now authorized by law) upon all taxable property
embraced in the district, at the rate which, when added to the
employee contributions under this Article and applied to the
fund created hereunder, shall be sufficient to provide for the
purposes of this Article in accordance with the provisions
thereof. Such tax shall be levied and collected with and in
like manner as the general taxes of such district, and shall
not in any event be included within any limitations of rate for
general park purposes as now or hereafter provided by law, but
shall be excluded therefrom and be in addition thereto. The
amount of such annual tax to and including the year 1977 shall
not exceed .0275% of the value, as equalized or assessed by the
Department of Revenue, of all taxable property embraced within
the park district, provided that for the year 1978, and for
each year thereafter, the amount of such annual tax shall be at
a rate on the dollar of assessed valuation of all taxable
property that will produce, when extended, for the year 1978
the following sum: 0.825 times the amount of employee
contributions during the fiscal year 1976; for the year 1979,
0.85 times the amount of employee contributions during the
fiscal year 1977; for the year 1980, 0.90 times the amount of
employee contributions during the fiscal year 1978; for the
year 1981, 0.95 times the amount of employee contributions
during the fiscal year 1979; for the year 1982, 1.00 times the
amount of employee contributions during the fiscal year 1980;
for the year 1983, 1.05 times the amount of contributions made
on behalf of employees during the fiscal year 1981; and for the
year 1984 and each year thereafter, an amount equal to 1.10
times the employee contributions during the fiscal year 2-years
prior to the year for which the applicable tax is levied. For
the year 2014, this calculation shall be 1.10 times the amount
of employee contributions during the 12-month fiscal year
ending June 30, 2012; and for the year 2015, this calculation
shall be 1.10 times the amount of employee contributions during
the 12-month fiscal year ending December 31, 2013. As used in
this Section, the term "employee contributions" means
contributions by employees for retirement annuity, spouse's
annuity, automatic increase in retirement annuity, and death
benefit.
    In respect to park district employees, other than
policemen, who are transferred to the employment of a city by
virtue of the "Exchange of Functions Act of 1957", the
corporate authorities of the city shall annually levy a tax
upon all taxable property embraced in the city, as equalized or
assessed by the Department of Revenue, at such rate per cent of
the value of such property as shall be sufficient, when added
to the amounts deducted from the salary or wages of such
employees, to provide the benefits to which such employees,
their dependents and beneficiaries are entitled under the
provisions of this Article. The park district shall not levy a
tax hereunder in respect to such employees. The tax levied by
the city under authority of this Article shall be in addition
to and exclusive of all other taxes authorized by law to be
levied by the city for corporate, annuity fund or other
purposes.
    All moneys accruing from the levy and collection of taxes,
pursuant to this section, shall be remitted to the board by the
employers as soon as they are received. Where a city has levied
a tax pursuant to this Section in respect to park district
employees transferred to the employment of a city, the
treasurer of such city or other authorized officer shall remit
the moneys accruing from the levy and collection of such tax as
soon as they are received. Such remittances shall be made upon
a pro rata share basis, whereby each employer shall pay to the
board such employer's proportionate percentage of each payment
of taxes received by it, according to the ratio which its tax
levy for this fund bears to the total tax levy of such
employer.
    Should any board of park commissioners included under the
provisions of this Article be without authority to levy the tax
provided in this Section the corporation authorities (meaning
the supervisor, clerk and assessor) of the town or towns for
which such board shall be the board of park commissioners shall
levy such tax.
    Employer contributions to the Fund may be reduced by
$5,000,000 for calendar years 2004 and 2005.
(Source: P.A. 93-654, eff. 1-16-04.)
 
    (40 ILCS 5/12-167)  (from Ch. 108 1/2, par. 12-167)
    Sec. 12-167. To keep records, books and prepare reports.
    To keep a record of all its proceedings which shall be open
to inspection by the public; to keep such books and records as
are necessary for the transaction of its business; and to
prepare a report, as of the last day June 30 of each fiscal
year, setting forth the income and disbursements of the fund
for the year, and the amount of its assets and liabilities at
the close of the year. Such statement shall include, among
other things, the following information:
    (a) the total of the reserves on all annuities being paid
and to be paid from the fund to employees and widows whose
annuities are determined but not entered upon, calculating such
reserves as if the annuities were actually entered upon;
    (b) the total of the liabilities of the employer for prior
service annuities and widow's prior service annuities,
including the present values of such annuities that are entered
upon.
(Source: Laws 1963, p. 161.)
 
    (40 ILCS 5/12-168)  (from Ch. 108 1/2, par. 12-168)
    Sec. 12-168. To have an audit.
    To have an annual audit of the books, records and reserves
of the fund as of the last day of each fiscal June 30th, in each
year, by a certified public accountant. A copy of the report of
such audit shall be filed with the board of park commissioners,
and a synopsis thereof shall be prepared for public
distribution.
(Source: Laws 1963, p. 161.)
 
    (40 ILCS 5/12-169)  (from Ch. 108 1/2, par. 12-169)
    Sec. 12-169. To appoint employees.
    To appoint such actuarial, legal, medical, clerical and
other employees as may be necessary in the administration of
the fund and fix their compensation.
    One or more actuaries shall be employed with duty to
determine the amount of money necessary to be provided under
this Article, and to assist the board in preparing the annual
statement as of the last day June 30 of each fiscal year, and
to certify to the correctness thereof.
(Source: Laws 1963, p. 161.)
 
    (40 ILCS 5/12-183)  (from Ch. 108 1/2, par. 12-183)
    Sec. 12-183. Annual actuarial valuation.
    An actuarial valuation shall be made annually of the
liabilities and reserves for present and prospective annuities
and benefits, and beginning January 1, 2013 July 1, 1973 a
general investigation shall be made and shall be completed
every 5 years thereafter of the operating experience of the
fund as to mortality, disability, retirement, marital status of
employees, withdrawal from service without right to annuity,
investment earnings and other factors of actuarial criteria.
    Upon the basis of the annual actuarial valuation and
quinquennial actuarial investigations, the actuary shall
recommend the tables to be used in the annual valuations and in
current operations including the prescribed rate of interest,
and shall advise the board on any matters of actuarial
character affecting the financial condition of the fund and its
operations.
(Source: P.A. 78-266.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.