Public Act 094-0712
 
SB1693 Enrolled LRB094 06133 EFG 36198 b

    AN ACT in relation to 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 7-142.1, 7-156, 7-169, 7-172, and 7-173.1 as follows:
 
    (40 ILCS 5/7-142.1)  (from Ch. 108 1/2, par. 7-142.1)
    Sec. 7-142.1. Sheriff's law enforcement employees.
    (a) In lieu of the retirement annuity provided by
subparagraph 1 of paragraph (a) of Section 7-142:
    Any sheriff's law enforcement employee who has 20 or more
years of service in that capacity and who terminates service
prior to January 1, 1988 shall be entitled at his option to
receive a monthly retirement annuity for his service as a
sheriff's law enforcement employee computed by multiplying 2%
for each year of such service up to 10 years, 2 1/4% for each
year of such service above 10 years and up to 20 years, and 2
1/2% for each year of such service above 20 years, by his
annual final rate of earnings and dividing by 12.
    Any sheriff's law enforcement employee who has 20 or more
years of service in that capacity and who terminates service on
or after January 1, 1988 and before July 1, 2004 shall be
entitled at his option to receive a monthly retirement annuity
for his service as a sheriff's law enforcement employee
computed by multiplying 2.5% for each year of such service up
to 20 years, 2% for each year of such service above 20 years
and up to 30 years, and 1% for each year of such service above
30 years, by his annual final rate of earnings and dividing by
12.
    Any sheriff's law enforcement employee who has 20 or more
years of service in that capacity and who terminates service on
or after July 1, 2004 shall be entitled at his or her option to
receive a monthly retirement annuity for service as a sheriff's
law enforcement employee computed by multiplying 2.5% for each
year of such service by his annual final rate of earnings and
dividing by 12.
    If a sheriff's law enforcement employee has service in any
other capacity, his retirement annuity for service as a
sheriff's law enforcement employee may be computed under this
Section and the retirement annuity for his other service under
Section 7-142.
    In no case shall the total monthly retirement annuity for
persons who retire before July 1, 2004 exceed 75% of the
monthly final rate of earnings. In no case shall the total
monthly retirement annuity for persons who retire on or after
July 1, 2004 exceed 80% of the monthly final rate of earnings.
    (b) Whenever continued group insurance coverage is elected
in accordance with the provisions of Section 367h of the
Illinois Insurance Code, as now or hereafter amended, the total
monthly premium for such continued group insurance coverage or
such portion thereof as is not paid by the municipality shall,
upon request of the person electing such continued group
insurance coverage, be deducted from any monthly pension
benefit otherwise payable to such person pursuant to this
Section, to be remitted by the Fund to the insurance company or
other entity providing the group insurance coverage.
    (c) A sheriff's law enforcement employee who has service in
any other capacity may convert up to 10 years of that service
into service as a sheriff's law enforcement employee by paying
to the Fund an amount equal to (1) the additional employee
contribution required under Section 7-173.1, plus (2) the
additional employer contribution required under Section 7-172,
plus (3) interest on items (1) and (2) at the prescribed rate
from the date of the service to the date of payment.
    (d) The changes to subsections (a) and (b) of this Section
made by this amendatory Act of the 94th General Assembly apply
only to persons in service on or after July 1, 2004. In the
case of such a person who begins to receive a retirement
annuity before the effective date of this amendatory Act of the
94th General Assembly, the annuity shall be recalculated
prospectively to reflect those changes, with the resulting
increase beginning to accrue on the first annuity payment date
following the effective date of this amendatory Act.
(Source: P.A. 85-941.)
 
    (40 ILCS 5/7-156)  (from Ch. 108 1/2, par. 7-156)
    Sec. 7-156. Surviving spouse annuities - amount.
    (a) The amount of surviving spouse annuity shall be:
    1. Upon the death of an employee annuitant or such person
entitled, upon application, to a retirement annuity at date of
death, (i) an amount equal to 1/2 of the retirement annuity
which was or would have been payable exclusive of the amount so
payable which was provided from additional credits, and
disregarding any election made under paragraph (b) of Section
7-142, plus (ii) an annuity which could be provided at the then
attained age of the surviving spouse and under actuarial tables
then in effect, from the excess of the additional credits,
(excluding any such credits used to create a reversionary
annuity) used to provide the annuity granted pursuant to
paragraph (a) (2) of Section 7-142 of this article over the
total annuity payments made pursuant thereto.
    2. Upon the death of a participating employee on or after
attainment of age 55, an amount equal to 1/2 of the retirement
annuity which he could have had as of the date of death had he
then retired and applied for annuity, exclusive of the portion
thereof which could have been provided from additional credits,
and disregarding paragraph (b) of Section 7-142, plus an amount
equal to the annuity which could be provided from the total of
his accumulated additional credits at date of death, on the
basis of the attained age of the surviving spouse on such date.
    3. Upon the death of a participating employee before age
55, an amount equal to 1/2 of the retirement annuity which he
could have had as of his attained age on the date of death, had
he then retired and applied for annuity, and the provisions of
this Article that no such annuity shall begin until the
employee has attained at least age 55 were not applicable,
exclusive of the portion thereof which could have been provided
from additional credits and disregarding paragraph (b) of
Section 7-142, plus an amount equal to the annuity which could
be provided from the total of his accumulated additional
credits at date of death, on the basis of the attained age of
the surviving spouse on such date.
    In the case of the surviving spouse of a person who dies
before the effective date of this amendatory Act of the 94th
General Assembly, if the a surviving spouse is more than 5
years younger than the deceased, that portion of the annuity
which is not based on additional credits shall be reduced in
the ratio of the value of a life annuity of $1 per year at an
age of 5 years less than the attained age of the deceased, at
the earlier of the date of the death or the date his retirement
annuity begins, to the value of a life annuity of $1 per year
at the attained age of the surviving spouse on such date,
according to actuarial tables approved by the Board. This
reduction does not apply to the surviving spouse of a person
who dies on or after the effective date of this amendatory Act
of the 94th General Assembly.
    In computing the amount of a surviving spouse annuity,
incremental increases of retirement annuities to the date of
death of the employee annuitant shall be considered.
    (b) Each surviving spouse annuity payable on January 1,
1988 shall be increased on that date by 3% of the original
amount of the annuity. Each surviving spouse annuity that
begins after January 1, 1988 shall be increased on the January
1 next occurring after the annuity begins, by an amount equal
to (i) 3% of the original amount thereof if the deceased
employee was receiving a retirement annuity at the time of his
death; otherwise (ii) 0.167% of the original amount thereof for
each complete month which has elapsed since the date the
annuity began.
    On each January 1 after the date of the initial increase
under this subsection, each surviving spouse annuity shall be
increased by 3% of the originally granted amount of the
annuity.
(Source: P.A. 85-941.)
 
    (40 ILCS 5/7-169)  (from Ch. 108 1/2, par. 7-169)
    Sec. 7-169. Separation benefits; repayments.
    (a) If an employee who has received a separation benefit
subsequently becomes a participating employee, and renders at
least 2 years of contributing service from the date of such
re-entry, he may pay to the fund the amount of the separation
benefit, plus interest at the effective rate for each year from
the date of payment of the separation benefit to the date of
repayment. Upon payment his creditable service shall be
reinstated and the payment shall be credited to his account as
normal contributions.
     (b) Beginning July 1, 2004, the requirement of returning
to service for at least 2 years does not apply to persons who
return to service as a sheriff's law enforcement employee. This
subsection applies only to persons in service on or after July
1, 2004. In the case of such a person who begins to receive a
retirement annuity before the effective date of this amendatory
Act of the 94th General Assembly, the annuity shall be
recalculated prospectively to reflect any credits reinstated
as a result of this subsection, with the resulting increase in
annuity beginning to accrue on the first annuity payment date
following the effective date of this amendatory Act, but not
earlier than the date the repayment is received by the Fund.
(Source: P.A. 84-1028.)
 
    (40 ILCS 5/7-172)  (from Ch. 108 1/2, par. 7-172)
    Sec. 7-172. Contributions by participating municipalities
and participating instrumentalities.
    (a) Each participating municipality and each participating
instrumentality shall make payment to the fund as follows:
        1. municipality contributions in an amount determined
    by applying the municipality contribution rate to each
    payment of earnings paid to each of its participating
    employees;
        2. an amount equal to the employee contributions
    provided by paragraphs (a) and (b) of Section 7-173,
    whether or not the employee contributions are withheld as
    permitted by that Section;
        3. all accounts receivable, together with interest
    charged thereon, as provided in Section 7-209;
        4. if it has no participating employees with current
    earnings, an amount payable which, over a period of 20
    years beginning with the year following an award of
    benefit, will amortize, at the effective rate for that
    year, any negative balance in its municipality reserve
    resulting from the award. This amount when established will
    be payable as a separate contribution whether or not it
    later has participating employees.
    (b) A separate municipality contribution rate shall be
determined for each calendar year for all participating
municipalities together with all instrumentalities thereof.
The municipality contribution rate shall be determined for
participating instrumentalities as if they were participating
municipalities. The municipality contribution rate shall be
the sum of the following percentages:
        1. The percentage of earnings of all the participating
    employees of all participating municipalities and
    participating instrumentalities which, if paid over the
    entire period of their service, will be sufficient when
    combined with all employee contributions available for the
    payment of benefits, to provide all annuities for
    participating employees, and the $3,000 death benefit
    payable under Sections 7-158 and 7-164, such percentage to
    be known as the normal cost rate.
        2. The percentage of earnings of the participating
    employees of each participating municipality and
    participating instrumentalities necessary to adjust for
    the difference between the present value of all benefits,
    excluding temporary and total and permanent disability and
    death benefits, to be provided for its participating
    employees and the sum of its accumulated municipality
    contributions and the accumulated employee contributions
    and the present value of expected future employee and
    municipality contributions pursuant to subparagraph 1 of
    this paragraph (b). This adjustment shall be spread over
    the remainder of the period that is allowable under
    generally accepted accounting principles.
        3. The percentage of earnings of the participating
    employees of all municipalities and participating
    instrumentalities necessary to provide the present value
    of all temporary and total and permanent disability
    benefits granted during the most recent year for which
    information is available.
        4. The percentage of earnings of the participating
    employees of all participating municipalities and
    participating instrumentalities necessary to provide the
    present value of the net single sum death benefits expected
    to become payable from the reserve established under
    Section 7-206 during the year for which this rate is fixed.
        5. The percentage of earnings necessary to meet any
    deficiency arising in the Terminated Municipality Reserve.
    (c) A separate municipality contribution rate shall be
computed for each participating municipality or participating
instrumentality for its sheriff's law enforcement employees.
    A separate municipality contribution rate shall be
computed for the sheriff's law enforcement employees of each
forest preserve district that elects to have such employees.
For the period from January 1, 1986 to December 31, 1986, such
rate shall be the forest preserve district's regular rate plus
2%.
    In the event that the Board determines that there is an
actuarial deficiency in the account of any municipality with
respect to a person who has elected to participate in the Fund
under Section 3-109.1 of this Code, the Board may adjust the
municipality's contribution rate so as to make up that
deficiency over such reasonable period of time as the Board may
determine.
    (d) The Board may establish a separate municipality
contribution rate for all employees who are program
participants employed under the federal Comprehensive
Employment Training Act by all of the participating
municipalities and instrumentalities. The Board may also
provide that, in lieu of a separate municipality rate for these
employees, a portion of the municipality contributions for such
program participants shall be refunded or an extra charge
assessed so that the amount of municipality contributions
retained or received by the fund for all CETA program
participants shall be an amount equal to that which would be
provided by the separate municipality contribution rate for all
such program participants. Refunds shall be made to prime
sponsors of programs upon submission of a claim therefor and
extra charges shall be assessed to participating
municipalities and instrumentalities. In establishing the
municipality contribution rate as provided in paragraph (b) of
this Section, the use of a separate municipality contribution
rate for program participants or the refund of a portion of the
municipality contributions, as the case may be, may be
considered.
    (e) Computations of municipality contribution rates for
the following calendar year shall be made prior to the
beginning of each year, from the information available at the
time the computations are made, and on the assumption that the
employees in each participating municipality or participating
instrumentality at such time will continue in service until the
end of such calendar year at their respective rates of earnings
at such time.
    (f) Any municipality which is the recipient of State
allocations representing that municipality's contributions for
retirement annuity purposes on behalf of its employees as
provided in Section 12-21.16 of the Illinois Public Aid Code
shall pay the allocations so received to the Board for such
purpose. Estimates of State allocations to be received during
any taxable year shall be considered in the determination of
the municipality's tax rate for that year under Section 7-171.
If a special tax is levied under Section 7-171, none of the
proceeds may be used to reimburse the municipality for the
amount of State allocations received and paid to the Board. Any
multiple-county or consolidated health department which
receives contributions from a county under Section 11.2 of "An
Act in relation to establishment and maintenance of county and
multiple-county health departments", approved July 9, 1943, as
amended, or distributions under Section 3 of the Department of
Public Health Act, shall use these only for municipality
contributions by the health department.
    (g) Municipality contributions for the several purposes
specified shall, for township treasurers and employees in the
offices of the township treasurers who meet the qualifying
conditions for coverage hereunder, be allocated among the
several school districts and parts of school districts serviced
by such treasurers and employees in the proportion which the
amount of school funds of each district or part of a district
handled by the treasurer bears to the total amount of all
school funds handled by the treasurer.
    From the funds subject to allocation among districts and
parts of districts pursuant to the School Code, the trustees
shall withhold the proportionate share of the liability for
municipality contributions imposed upon such districts by this
Section, in respect to such township treasurers and employees
and remit the same to the Board.
    The municipality contribution rate for an educational
service center shall initially be the same rate for each year
as the regional office of education or school district which
serves as its administrative agent. When actuarial data become
available, a separate rate shall be established as provided in
subparagraph (i) of this Section.
    The municipality contribution rate for a public agency,
other than a vocational education cooperative, formed under the
Intergovernmental Cooperation Act shall initially be the
average rate for the municipalities which are parties to the
intergovernmental agreement. When actuarial data become
available, a separate rate shall be established as provided in
subparagraph (i) of this Section.
    (h) Each participating municipality and participating
instrumentality shall make the contributions in the amounts
provided in this Section in the manner prescribed from time to
time by the Board and all such contributions shall be
obligations of the respective participating municipalities and
participating instrumentalities to this fund. The failure to
deduct any employee contributions shall not relieve the
participating municipality or participating instrumentality of
its obligation to this fund. Delinquent payments of
contributions due under this Section may, with interest, be
recovered by civil action against the participating
municipalities or participating instrumentalities.
Municipality contributions, other than the amount necessary
for employee contributions and Social Security contributions,
for periods of service by employees from whose earnings no
deductions were made for employee contributions to the fund,
may be charged to the municipality reserve for the municipality
or participating instrumentality.
    (i) Contributions by participating instrumentalities shall
be determined as provided herein except that the percentage
derived under subparagraph 2 of paragraph (b) of this Section,
and the amount payable under subparagraph 5 of paragraph (a) of
this Section, shall be based on an amortization period of 10
years.
    (j) Notwithstanding the other provisions of this Section,
the additional unfunded liability accruing as a result of this
amendatory Act of the 94th General Assembly shall be amortized
over a period of 30 years beginning on January 1 of the second
calendar year following the calendar year in which this
amendatory Act takes effect, except that the employer may
provide for a longer amortization period by adopting a
resolution or ordinance specifying a 35-year or 40-year period
and submitting a certified copy of the ordinance or resolution
to the fund no later than June 1 of the calendar year following
the calendar year in which this amendatory Act takes effect.
(Source: P.A. 92-424, eff. 8-17-01.)
 
    (40 ILCS 5/7-173.1)  (from Ch. 108 1/2, par. 7-173.1)
    Sec. 7-173.1. Additional contribution by sheriff's law
enforcement employees.
    (a) Each sheriff's law enforcement employee shall make an
additional contribution of 1% of earnings, which shall be
considered as normal contributions. For earnings on or after
July 1, 1988, the additional contribution shall be 2% of
earnings. For earnings on or after the effective date of this
amendatory Act of the 94th General Assembly, the additional
contribution shall be 3% of earnings; this increase is intended
to defray the employee's portion of the cost of the benefit
increases provided by this amendatory Act of the 94th General
Assembly.
    This additional contribution shall be payable for
retroactive service periods which the employee elects to
establish and to periods of authorized leave of absence.
    (b) If the employee is awarded a retirement annuity under
Section 7-142 and not under Section 7-142.1, then the
additional contribution required under this Section shall be
refunded with interest or paid as provided in subsection (c).
If the employee returns to a participating status as a
sheriff's law enforcement employee, the employee may repay the
amount refunded with interest and upon subsequent retirement be
entitled to a recomputation of the retirement annuity under
Section 7-142.1 if the total service as a sheriff's law
enforcement employee meets the requirements of that Section.
    (c) Instead of a refund under subsection (b), the retiring
employee may elect to convert the amount of the refund into an
annuity, payable separately from the retirement annuity. If the
annuitant dies before the guaranteed amount has been
distributed, the remainder shall be paid in a lump sum to the
designated beneficiary of the annuitant. The Board shall adopt
any rules necessary for the implementation of this subsection.
(Source: P.A. 90-766, eff. 8-14-98.)
 
    Section 90. The State Mandates Act is amended by adding
Section 8.29 as follows:
 
    (30 ILCS 805/8.29 new)
    Sec. 8.29. Exempt mandate. Notwithstanding Sections 6 and 8
of this Act, no reimbursement by the State is required for the
implementation of any mandate created by this amendatory Act of
the 94th General Assembly.

Effective Date: 6/1/2006