Public Act 096-1084
 
SB3405 EnrolledLRB096 15967 AMC 31212 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 7-170, 7-171, 7-172, 7-173, and 7-211 as follows:
 
    (40 ILCS 5/7-170)  (from Ch. 108 1/2, par. 7-170)
    Sec. 7-170. Federal Social Security coverage. (a) It is
declared to be the policy and purpose to extend to covered
employees as defined in Section 7-138, the benefits of the
Federal Old Age and Survivors Insurance System as authorized by
the Federal Social Security Act and amendments thereto. To
effect this, the board shall take such action as may be
required by applicable State and Federal laws or regulations.
    (b) The board shall execute an agreement with the State
Agency to secure coverage of covered employees as provided in
paragraph (a) of this section.
    (c) Each participating municipality and each participating
instrumentality shall remit payment of contributions for
Social Security purposes on behalf of covered employees and
covered municipalities and participating instrumentalities as
required by applicable State and federal laws and regulations
the board and the State Agency established by the Social
Security Enabling Act.
    (d) Contributions of covered employees to this fund for
Federal Social Security purposes shall be paid to the State
Agency in such amounts and at such time as required by
applicable State and federal laws and regulations are
designated by State laws or regulations.
    (e) (Blank) Contributions in behalf of covered
municipalities and participating instrumentalities for Federal
Social Security purposes and the required pro rata share of
administrative expenses shall be paid to the State Agency from
this fund in accordance with applicable State laws and
regulations.
    (f) The board shall maintain such records and submit such
reports as may be required by applicable State and Federal laws
or regulations.
(Source: P.A. 81-793.)
 
    (40 ILCS 5/7-171)  (from Ch. 108 1/2, par. 7-171)
    Sec. 7-171. Finance; taxes.
    (a) Each municipality other than a school district shall
appropriate an amount sufficient to provide for the current
municipality contributions required by Section 7-172 of this
Article, for the fiscal year for which the appropriation is
made and all amounts due for municipal contributions for
previous years. Those municipalities which have been assessed
an annual amount to amortize its unfunded obligation, as
provided in subparagraph 4 5 of paragraph (a) of Section 7-172
of this Article, shall include in the appropriation an amount
sufficient to pay the amount assessed. The appropriation shall
be based upon an estimate of assets available for municipality
contributions and liabilities therefor for the fiscal year for
which appropriations are to be made, including funds available
from levies for this purpose in prior years.
    (b) For the purpose of providing monies for municipality
contributions, beginning for the year in which a municipality
is included in this fund:
        (1) A municipality other than a school district may
    levy a tax which shall not exceed the amount appropriated
    for municipality contributions.
        (2) A school district may levy a tax in an amount
    reasonably calculated at the time of the levy to provide
    for the municipality contributions required under Section
    7-172 of this Article for the fiscal years for which
    revenues from the levy will be received and all amounts due
    for municipal contributions for previous years. Any levy
    adopted before the effective date of this amendatory Act of
    1995 by a school district shall be considered valid and
    authorized to the extent that the amount was reasonably
    calculated at the time of the levy to provide for the
    municipality contributions required under Section 7-172
    for the fiscal years for which revenues from the levy will
    be received and all amounts due for municipal contributions
    for previous years. In no event shall a budget adopted by a
    school district limit a levy of that school district
    adopted under this Section.
    (c) Any county which is served by a regional office of
education that serves 2 or more counties may include in its
appropriation an amount sufficient to provide its
proportionate share of the municipality contributions for that
regional office of education. The tax levy authorized by this
Section may include an amount necessary to provide monies for
this contribution.
    (d) Any county that is a part of a multiple-county health
department or consolidated health department which is formed
under "An Act in relation to the establishment and maintenance
of county and multiple-county public health departments",
approved July 9, 1943, as amended, and which is a participating
instrumentality may include in the county's appropriation an
amount sufficient to provide its proportionate share of
municipality contributions of the department. The tax levy
authorized by this Section may include the amount necessary to
provide monies for this contribution.
    (d-5) A school district participating in a special
education joint agreement created under Section 10-22.31 of the
School Code that is a participating instrumentality may include
in the school district's tax levy under this Section an amount
sufficient to provide its proportionate share of the
municipality contributions for current and prior service by
employees of the participating instrumentality created under
the joint agreement.
    (e) Such tax shall be levied and collected in like manner,
with the general taxes of the municipality and shall be in
addition to all other taxes which the municipality is now or
may hereafter be authorized to levy upon all taxable property
therein, and shall be exclusive of and in addition to the
amount of tax levied for general purposes under Section 8-3-1
of the "Illinois Municipal Code", approved May 29, 1961, as
amended, or under any other law or laws which may limit the
amount of tax which the municipality may levy for general
purposes. The tax may be levied by the governing body of the
municipality without being authorized as being additional to
all other taxes by a vote of the people of the municipality.
    (f) The county clerk of the county in which any such
municipality is located, in reducing tax levies shall not
consider any such tax as a part of the general tax levy for
municipality purposes, and shall not include the same in the
limitation of any other tax rate which may be extended.
    (g) The amount of the tax to be levied in any year shall,
within the limits herein prescribed, be determined by the
governing body of the respective municipality.
    (h) The revenue derived from any such tax levy shall be
used only for the purposes specified in this Article and, as
collected, shall be paid to the treasurer of the municipality
levying the tax. Monies received by a county treasurer for use
in making contributions to a regional office of education for
its municipality contributions shall be held by him for that
purpose and paid to the regional office of education in the
same manner as other monies appropriated for the expense of the
regional office.
(Source: P.A. 89-329, eff. 8-17-95; 90-448, eff. 8-16-97;
90-511, eff. 8-22-97; 90-655, eff. 7-30-98.)
 
    (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 4 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. 94-712, eff. 6-1-06.)
 
    (40 ILCS 5/7-173)  (from Ch. 108 1/2, par. 7-173)
    Sec. 7-173. Contributions by employees.
    (a) Each participating employee shall make contributions
to the fund as follows:
        1. For retirement annuity purposes, normal
    contributions of 3 3/4% of earnings.
        2. Additional contributions of such percentages of
    each payment of earnings, as shall be elected by the
    employee for retirement annuity purposes, but not in excess
    of 10%. The selected rate shall be applicable to all
    earnings beginning on the first day of the second month
    following receipt by the Board of written notice of
    election to make such contributions. Additional
    contributions at the selected rate shall be made
    concurrently with normal contributions.
        3. Survivor contributions, by each participating
    employee, of 3/4% of each payment of earnings.
    (b) Each employee shall make contributions to the fund for
Federal Social Security taxes, for periods during which he is a
covered employee, as required by the Social Security Enabling
Act and State and federal law. For participating employees,
such contributions shall be in addition to those required under
paragraph (a) of this Section.
    (c) Contributions shall be deducted from each
corresponding payment of earnings paid to each employee and
shall be remitted to the board by the participating
municipality or participating instrumentality making such
payment. The remittance, together with a report of the earnings
and contributions shall be made as directed by the board. For
township treasurers and employees of township treasurers
qualifying as employees hereunder, the contributions herein
required as deductions from salary shall be withheld by the
school township trustees from funds available for the payment
of the compensation of such treasurers and employees as
provided in the School Code and remitted to the board.
    (d) An employee who has made additional contributions under
paragraph (a)2 of this Section may upon retirement or at any
time prior thereto, elect to withdraw the total of such
additional contributions including interest credited thereon
to the end of the preceding calendar year.
    (e) Failure to make the deductions for employee
contributions provided in paragraph (c) of this Section shall
not relieve the employee from liability for such contributions.
The amount of such liability may be deducted, with interest
charged under Section 7-209, from any annuities or benefits
payable hereunder to the employee or any other person receiving
an annuity or benefit by reason of such employee's
participation.
    (f) A participating employee who has at least 40 years of
creditable service in the Fund may elect to cease making the
contributions required under this Section. The status of the
employee under this Article shall be unaffected by this
election, except that the employee shall not receive any
additional creditable service for the periods of employment
following the election. An election under this subsection
relieves the employer from making additional employer
contributions in relation to that employee.
(Source: P.A. 87-1265.)
 
    (40 ILCS 5/7-211)  (from Ch. 108 1/2, par. 7-211)
    Sec. 7-211. Authorizations.
    (a) Each participating municipality and instrumentality
thereof and each participating instrumentality shall:
        1. Deduct all normal and additional contributions and
    contributions for federal Social Security taxes as
    required by the Social Security Enabling Act from each
    payment of earnings payable to each participating employee
    who is entitled to any earnings from such municipality or
    instrumentality thereof or participating instrumentality,
    and remit all normal and additional such contributions
    immediately to the board; and
        2. Pay to the board contributions required by this
    Article.
    (b) Each participating employee shall, by virtue of the
payment of contributions to this fund, receive a vested
interest in the annuities and benefits provided in this Article
and in consideration of such vested interest shall be deemed to
have agreed and authorized the deduction from earnings of all
contributions payable to this fund in accordance with this
Article.
    (c) Payment of earnings less the amounts of contributions
provided in this Article and in the Social Security Enabling
Act shall be a full and complete discharge of all claims for
payment for services rendered by any employee during the period
covered by any such payment.
    (d) Any covered annuitant may authorize the withholding of
all or a portion of his or her annuity, for the payment of
premiums on group accident and health insurance provided
pursuant to Section 7-199.1. The annuitant may revoke this
authorization at any time.
(Source: P.A. 91-887, eff. 7-6-00.)
 
    Section 90. The State Mandates Act is amended by adding
Section 8.34 as follows:
 
    (30 ILCS 805/8.34 new)
    Sec. 8.34. 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 96th General Assembly.
 
    Section 99. Effective date. This Act takes effect upon
becoming law.

Effective Date: 7/16/2010