|
early retirement
incentives under this Section is |
encouraged to implement personnel procedures
to prohibit, |
for at least 5 years, the rehiring (whether on payroll or |
by
independent contract) of employees who receive early |
retirement incentives.
|
(7) A unit of local government adopting a program of |
early retirement
incentives under this Section is also |
encouraged to replace as few of the
participating |
employees as possible and to hire replacement employees |
for
salaries totaling no more than 80% of the total |
salaries formerly paid to the
employees who participate in |
the early retirement program.
|
It is the primary purpose of this Section to encourage |
units of local
government that can realize true cost savings, |
or have determined that an early
retirement program is in |
their best interest, to implement an early retirement
program.
|
(b) Until the effective date of this amendatory Act of |
1997, this
Section does not apply to any employer that is a |
city, village, or incorporated
town, nor to the employees of |
any such employer. Beginning on the effective
date of this |
amendatory Act of 1997, any employer under this Article, |
including
an employer that is a city, village, or incorporated |
town, may establish an
early retirement incentive program for |
its employees under this Section. The
decision of a city, |
village, or incorporated town to consider or establish an
|
early retirement program is at the sole discretion of that |
|
city, village, or
incorporated town, and nothing in this |
amendatory Act of 1997 limits or
otherwise diminishes this |
discretion. Nothing contained in this Section shall
be |
construed to require a city, village, or incorporated town to |
establish an
early retirement program and no city, village, or |
incorporated town may be
compelled to implement such a |
program.
|
The benefits provided in this Section are available only |
to members
employed by a participating employer that has filed |
with the Board of the
Fund a resolution or ordinance expressly |
providing for the creation of an
early retirement incentive |
program under this Section for its employees and
specifying |
the effective date of the early retirement incentive program.
|
Subject to the limitation in subsection (h), an employer may |
adopt a resolution
or ordinance providing a program of early |
retirement incentives under this
Section at any time.
|
The resolution or ordinance shall be in substantially the |
following form:
|
RESOLUTION (ORDINANCE) NO. ....
|
A RESOLUTION (ORDINANCE) ADOPTING AN EARLY
|
RETIREMENT INCENTIVE PROGRAM FOR EMPLOYEES
|
IN THE ILLINOIS MUNICIPAL RETIREMENT FUND
|
WHEREAS, Section 7-141.1 of the Illinois Pension Code |
provides that a
participating employer may elect to adopt an |
early retirement
incentive program offered by the Illinois |
|
Municipal Retirement Fund by
adopting a resolution or |
ordinance; and
|
WHEREAS, The goal of adopting an early retirement program |
is
to realize a substantial savings in personnel costs by |
offering early
retirement incentives to employees who have |
accumulated many years of
service credit; and
|
WHEREAS, Implementation of the early retirement program |
will provide a
budgeting tool to aid in controlling payroll |
costs; and
|
WHEREAS, The (name of governing body) has determined that |
the adoption of an
early retirement incentive program is in |
the best interests of the (name of
participating employer); |
therefore be it
|
RESOLVED (ORDAINED) by the (name of governing body) of |
(name of
participating employer) that:
|
(1) The (name of participating employer) does hereby adopt |
the Illinois
Municipal Retirement Fund early retirement |
incentive program as provided in
Section 7-141.1 of the |
Illinois Pension Code. The early retirement incentive
program |
shall take effect on (date).
|
(2) In order to help achieve a true cost savings, a person |
who retires under
the early retirement incentive program shall |
lose those incentives if he or she
later accepts employment |
with or enters into a personal services contract with any IMRF |
employer in a position for which
participation in IMRF is |
required or is elected by the employee.
|
|
(3) In order to utilize an early retirement incentive as a |
budgeting
tool, the (name of participating employer) will use |
its best efforts either
to limit the number of employees who |
replace the employees who retire under
the early retirement |
program or to limit the salaries paid to the employees who
|
replace the employees who retire under the early retirement |
program.
|
(4) The effective date of each employee's retirement under |
this early
retirement program shall be set by (name of |
employer) and shall be no
earlier than the effective date of |
the program and no later than one year after
that effective |
date; except that the employee may require that the retirement
|
date set by the employer be no later than the June 30 next |
occurring after the
effective date of the program and no |
earlier than the date upon which the
employee qualifies for |
retirement.
|
(5) To be eligible for the early retirement incentive |
under this Section,
the employee must have attained age 50 and |
have at least 20 years of creditable
service by his or her |
retirement date.
|
(6) The (clerk or secretary) shall promptly file a |
certified copy of
this resolution (ordinance) with the Board |
of Trustees of the Illinois
Municipal Retirement Fund.
|
CERTIFICATION
|
I, (name), the (clerk or secretary) of the (name of |
participating
employer) of the County of (name), State of |
|
Illinois, do hereby certify
that I am the keeper of the books |
and records of the (name of employer)
and that the foregoing is |
a true and correct copy of a resolution
(ordinance) duly |
adopted by the (governing body) at a meeting duly convened
and |
held on (date).
|
SEAL
|
(Signature of clerk or secretary)
|
(c) To be eligible for the benefits provided under an |
early retirement
incentive program adopted under this Section, |
a member must:
|
(1) be a participating employee of this Fund who, on |
the effective date of
the program, (i) is in active |
payroll status as an employee of a participating
employer |
that has filed the required ordinance or resolution with |
the Board,
(ii) is on layoff status from such a position |
with a right of re-employment or
recall to service, (iii) |
is on a leave of absence from such a position, or (iv)
is |
on disability but has not been receiving benefits under |
Section 7-146 or
7-150 for a period of more than 2 years |
from the date of application;
|
(2) have never previously received a retirement |
annuity under
this Article or under the Retirement Systems |
Reciprocal Act using service
credit established under this |
Article;
|
(3) (blank);
|
|
(4) have at least 20 years of creditable service in |
the Fund by the date
of retirement, without the use of any |
creditable service established under this
Section;
|
(5) have attained age 50 by the date of retirement, |
without the use of any
age enhancement received under this |
Section; and
|
(6) be eligible to receive a retirement annuity under |
this Article by the
date of retirement, for which purpose |
the age enhancement and creditable
service established |
under this Section may be considered.
|
(d) The employer shall determine the retirement date for |
each employee
participating in the early retirement program |
adopted under this Section. The
retirement date shall be no |
earlier than the effective date of the program and
no later |
than one year after that effective date, except that the |
employee may
require that the retirement date set by the |
employer be no later than the June
30 next occurring after the |
effective date of the program and no earlier than
the date upon |
which the employee qualifies for retirement. The employer |
shall
give each employee participating in the early retirement |
program at least 30
days written notice of the employee's |
designated retirement date, unless the
employee waives this |
notice requirement.
|
(e) An eligible person may establish up to 5 years of |
creditable service
under this Section. In addition, for each |
period of creditable service
established under this Section, a |
|
person shall have his or her age at
retirement deemed enhanced |
by an equivalent period.
|
The creditable service established under this Section may |
be used for all
purposes under this Article and the Retirement |
Systems Reciprocal Act,
except for the computation of final |
rate of earnings and the determination
of earnings, salary, or |
compensation under this or any other Article of the
Code.
|
The age enhancement established under this Section may be |
used for all
purposes under this Article (including |
calculation of the reduction imposed
under subdivision |
(a)1b(iv) of Section 7-142), except for purposes of a
|
reversionary annuity under Section 7-145 and any distributions |
required because
of age. The age enhancement established under |
this Section may be used in
calculating a proportionate |
annuity payable by this Fund under the Retirement
Systems |
Reciprocal Act, but shall not be used in determining benefits |
payable
under other Articles of this Code under the Retirement |
Systems Reciprocal Act.
|
(f) For all creditable service established under this |
Section, the
member must pay to the Fund an employee |
contribution consisting of the total employee contribution |
rate in effect at the time the member purchases the service for |
the plan in which the member was participating with the |
employer at that time multiplied by the member's highest |
annual salary rate used in the determination of the
final rate |
of earnings for retirement annuity purposes for each year of
|
|
creditable service granted under this Section.
Contributions |
for fractions of a year of service shall be prorated.
Any |
amounts that are disregarded in determining the final rate of |
earnings
under subdivision (d)(5) of Section 7-116 (the 125% |
rule) shall also be
disregarded in determining the required |
contribution under this subsection (f).
|
The employee contribution shall be paid to the Fund as |
follows: If the
member is entitled to a lump sum payment for |
accumulated vacation, sick leave,
or personal leave upon |
withdrawal from service, the employer shall deduct the
|
employee contribution from that lump sum and pay the deducted |
amount directly
to the Fund. If there is no such lump sum |
payment or the required employee
contribution exceeds the net |
amount of the lump sum payment, then the remaining
amount due, |
at the option of the employee, may either be paid to the Fund
|
before the annuity commences or deducted from the retirement |
annuity in 24
equal monthly installments.
|
(g) An annuitant who has received any age enhancement or |
creditable service
under this Section and thereafter accepts |
employment with or enters into a
personal services contract |
with an employer under this Article thereby forfeits
that age |
enhancement and creditable service; except that this |
restriction
does not apply to (1) service in an elective |
office, so long as the annuitant
does not participate in this |
Fund with respect to that office, (2) a person appointed as an |
officer under subsection (f) of Section 3-109 of this Code, |
|
and (3) a person appointed as an auxiliary police officer |
pursuant to Section 3.1-30-5 of the Illinois Municipal Code. A |
person
forfeiting early retirement incentives under this |
subsection (i) must repay to
the Fund that portion of the |
retirement annuity already received which is
attributable to |
the early retirement incentives that are being forfeited, (ii)
|
shall not be eligible to participate in any future early |
retirement program
adopted under this Section, and (iii) is |
entitled to a refund of the employee
contribution paid under |
subsection (f). The Board shall deduct the required
repayment |
from the refund and may impose a reasonable payment schedule |
for
repaying the amount, if any, by which the required |
repayment exceeds the refund
amount.
|
(h) The additional unfunded liability accruing as a result |
of the adoption
of a program of early retirement incentives |
under this Section by an employer
shall be amortized over a |
period of 10 years beginning on January 1 of the
second |
calendar year following the calendar year in which the latest |
date for
beginning to receive a retirement annuity under the |
program (as determined by
the employer under subsection (d) of |
this Section) occurs; except that the
employer may provide for |
a shorter amortization period (of no less than 5
years) by |
adopting an ordinance or resolution specifying the length of |
the
amortization period and submitting a certified copy of the |
ordinance or
resolution to the Fund no later than 6 months |
after the effective date of the
program. An employer, at its |
|
discretion, may accelerate payments to the Fund.
|
An employer may provide more than one early retirement |
incentive program
for its employees under this Section. |
However, an employer that has provided
an early retirement |
incentive program for its employees under this Section may
not |
provide another early retirement incentive program under this |
Section until the liability arising from the earlier program |
has been fully paid to
the Fund.
|
(Source: P.A. 99-382, eff. 8-17-15.)
|
(Text of Section after amendment by P.A. 102-210) |
Sec. 7-141.1. Early retirement incentive.
|
(a) The General Assembly finds and declares that:
|
(1) Units of local government across the State have |
been functioning
under a financial crisis.
|
(2) This financial crisis is expected to continue.
|
(3) Units of local government must depend on |
additional sources of
revenue and, when those sources are |
not forthcoming, must establish
cost-saving programs.
|
(4) An early retirement incentive designed |
specifically to target
highly-paid senior employees could |
result in significant annual cost
savings.
|
(5) The early retirement incentive should be made |
available only to
those units of local government that |
determine that an early retirement
incentive is in their |
best interest.
|
|
(6) A unit of local government adopting a program of |
early retirement
incentives under this Section is |
encouraged to implement personnel procedures
to prohibit, |
for at least 5 years, the rehiring (whether on payroll or |
by
independent contract) of employees who receive early |
retirement incentives.
|
(7) A unit of local government adopting a program of |
early retirement
incentives under this Section is also |
encouraged to replace as few of the
participating |
employees as possible and to hire replacement employees |
for
salaries totaling no more than 80% of the total |
salaries formerly paid to the
employees who participate in |
the early retirement program.
|
It is the primary purpose of this Section to encourage |
units of local
government that can realize true cost savings, |
or have determined that an early
retirement program is in |
their best interest, to implement an early retirement
program.
|
(b) Until June 27, 1997 (the effective date of Public Act |
90-32), this
Section does not apply to any employer that is a |
city, village, or incorporated
town, nor to the employees of |
any such employer. Beginning on June 27, 1997 (the effective
|
date of Public Act 90-32), any employer under this Article, |
including
an employer that is a city, village, or incorporated |
town, may establish an
early retirement incentive program for |
its employees under this Section. The
decision of a city, |
village, or incorporated town to consider or establish an
|
|
early retirement program is at the sole discretion of that |
city, village, or
incorporated town, and nothing in Public Act |
90-32 limits or
otherwise diminishes this discretion. Nothing |
contained in this Section shall
be construed to require a |
city, village, or incorporated town to establish an
early |
retirement program and no city, village, or incorporated town |
may be
compelled to implement such a program.
|
The benefits provided in this Section are available only |
to members
employed by a participating employer that has filed |
with the Board of the
Fund a resolution or ordinance expressly |
providing for the creation of an
early retirement incentive |
program under this Section for its employees and
specifying |
the effective date of the early retirement incentive program.
|
Subject to the limitation in subsection (h), an employer may |
adopt a resolution
or ordinance providing a program of early |
retirement incentives under this
Section at any time.
|
The resolution or ordinance shall be in substantially the |
following form:
|
RESOLUTION (ORDINANCE) NO. ....
|
A RESOLUTION (ORDINANCE) ADOPTING AN EARLY
|
RETIREMENT INCENTIVE PROGRAM FOR EMPLOYEES
|
IN THE ILLINOIS MUNICIPAL RETIREMENT FUND
|
WHEREAS, Section 7-141.1 of the Illinois Pension Code |
provides that a
participating employer may elect to adopt an |
early retirement
incentive program offered by the Illinois |
|
Municipal Retirement Fund by
adopting a resolution or |
ordinance; and
|
WHEREAS, The goal of adopting an early retirement program |
is
to realize a substantial savings in personnel costs by |
offering early
retirement incentives to employees who have |
accumulated many years of
service credit; and
|
WHEREAS, Implementation of the early retirement program |
will provide a
budgeting tool to aid in controlling payroll |
costs; and
|
WHEREAS, The (name of governing body) has determined that |
the adoption of an
early retirement incentive program is in |
the best interests of the (name of
participating employer); |
therefore be it
|
RESOLVED (ORDAINED) by the (name of governing body) of |
(name of
participating employer) that:
|
(1) The (name of participating employer) does hereby adopt |
the Illinois
Municipal Retirement Fund early retirement |
incentive program as provided in
Section 7-141.1 of the |
Illinois Pension Code. The early retirement incentive
program |
shall take effect on (date).
|
(2) In order to help achieve a true cost savings, a person |
who retires under
the early retirement incentive program shall |
lose those incentives if he or she
later accepts employment |
with or enters into a personal services contract with any IMRF |
employer in a position for which
participation in IMRF is |
required or is elected by the employee.
|
|
(3) In order to utilize an early retirement incentive as a |
budgeting
tool, the (name of participating employer) will use |
its best efforts either
to limit the number of employees who |
replace the employees who retire under
the early retirement |
program or to limit the salaries paid to the employees who
|
replace the employees who retire under the early retirement |
program.
|
(4) The effective date of each employee's retirement under |
this early
retirement program shall be set by (name of |
employer) and shall be no
earlier than the effective date of |
the program and no later than one year after
that effective |
date; except that the employee may require that the retirement
|
date set by the employer be no later than the June 30 next |
occurring after the
effective date of the program and no |
earlier than the date upon which the
employee qualifies for |
retirement.
|
(5) To be eligible for the early retirement incentive |
under this Section,
the employee must have attained age 50 and |
have at least 20 years of creditable
service by his or her |
retirement date.
|
(6) The (clerk or secretary) shall promptly file a |
certified copy of
this resolution (ordinance) with the Board |
of Trustees of the Illinois
Municipal Retirement Fund.
|
CERTIFICATION
|
I, (name), the (clerk or secretary) of the (name of |
participating
employer) of the County of (name), State of |
|
Illinois, do hereby certify
that I am the keeper of the books |
and records of the (name of employer)
and that the foregoing is |
a true and correct copy of a resolution
(ordinance) duly |
adopted by the (governing body) at a meeting duly convened
and |
held on (date).
|
SEAL
|
(Signature of clerk or secretary)
|
(c) To be eligible for the benefits provided under an |
early retirement
incentive program adopted under this Section, |
a member must:
|
(1) be a participating employee of this Fund who, on |
the effective date of
the program, (i) is in active |
payroll status as an employee of a participating
employer |
that has filed the required ordinance or resolution with |
the Board,
(ii) is on layoff status from such a position |
with a right of re-employment or
recall to service, (iii) |
is on a leave of absence from such a position, or (iv)
is |
on disability but has not been receiving benefits under |
Section 7-146 or
7-150 for a period of more than 2 years |
from the date of application;
|
(2) have never previously received a retirement |
annuity under
this Article or under the Retirement Systems |
Reciprocal Act using service
credit established under this |
Article;
|
(3) (blank);
|
|
(4) have at least 20 years of creditable service in |
the Fund by the date
of retirement, without the use of any |
creditable service established under this
Section;
|
(5) have attained age 50 by the date of retirement if |
he or she is a Tier 1 regular employee or age 57 if he or |
she is a Tier 2 regular employee, without the use of any
|
age enhancement received under this Section; and
|
(6) be eligible to receive a retirement annuity under |
this Article by the
date of retirement, for which purpose |
the age enhancement and creditable
service established |
under this Section may be considered.
|
(d) The employer shall determine the retirement date for |
each employee
participating in the early retirement program |
adopted under this Section. The
retirement date shall be no |
earlier than the effective date of the program and
no later |
than one year after that effective date, except that the |
employee may
require that the retirement date set by the |
employer be no later than the June
30 next occurring after the |
effective date of the program and no earlier than
the date upon |
which the employee qualifies for retirement. The employer |
shall
give each employee participating in the early retirement |
program at least 30
days written notice of the employee's |
designated retirement date, unless the
employee waives this |
notice requirement.
|
(e) An eligible person may establish up to 5 years of |
creditable service
under this Section. In addition, for each |
|
period of creditable service
established under this Section, a |
person shall have his or her age at
retirement deemed enhanced |
by an equivalent period.
|
The creditable service established under this Section may |
be used for all
purposes under this Article and the Retirement |
Systems Reciprocal Act,
except for the computation of final |
rate of earnings and the determination
of earnings, salary, or |
compensation under this or any other Article of the
Code.
|
The age enhancement established under this Section may be |
used for all
purposes under this Article (including |
calculation of the reduction imposed
under subdivision |
(a)1b(iv) of Section 7-142), except for purposes of a
|
reversionary annuity under Section 7-145 and any distributions |
required because
of age. The age enhancement established under |
this Section may be used in
calculating a proportionate |
annuity payable by this Fund under the Retirement
Systems |
Reciprocal Act, but shall not be used in determining benefits |
payable
under other Articles of this Code under the Retirement |
Systems Reciprocal Act.
|
(f) For all creditable service established under this |
Section, the
member must pay to the Fund an employee |
contribution consisting of the total employee contribution |
rate in effect at the time the member purchases the service for |
the plan in which the member was participating with the |
employer at that time multiplied by the member's highest |
annual salary rate used in the determination of the
final rate |
|
of earnings for retirement annuity purposes for each year of
|
creditable service granted under this Section.
Contributions |
for fractions of a year of service shall be prorated.
Any |
amounts that are disregarded in determining the final rate of |
earnings
under subdivision (d)(5) of Section 7-116 (the 125% |
rule) shall also be
disregarded in determining the required |
contribution under this subsection (f).
|
The employee contribution shall be paid to the Fund as |
follows: If the
member is entitled to a lump sum payment for |
accumulated vacation, sick leave,
or personal leave upon |
withdrawal from service, the employer shall deduct the
|
employee contribution from that lump sum and pay the deducted |
amount directly
to the Fund. If there is no such lump sum |
payment or the required employee
contribution exceeds the net |
amount of the lump sum payment, then the remaining
amount due, |
at the option of the employee, may either be paid to the Fund
|
before the annuity commences or deducted from the retirement |
annuity in 24
equal monthly installments.
|
(g) An annuitant who has received any age enhancement or |
creditable service
under this Section and thereafter accepts |
employment with or enters into a
personal services contract |
with an employer under this Article thereby forfeits
that age |
enhancement and creditable service; except that this |
restriction
does not apply to (1) service in an elective |
office, so long as the annuitant
does not participate in this |
Fund with respect to that office, (2) a person appointed as an |
|
officer under subsection (f) of Section 3-109 of this Code, |
and (3) a person appointed as an auxiliary police officer |
pursuant to Section 3.1-30-5 of the Illinois Municipal Code. A |
person
forfeiting early retirement incentives under this |
subsection (i) must repay to
the Fund that portion of the |
retirement annuity already received which is
attributable to |
the early retirement incentives that are being forfeited, (ii)
|
shall not be eligible to participate in any future early |
retirement program
adopted under this Section, and (iii) is |
entitled to a refund of the employee
contribution paid under |
subsection (f). The Board shall deduct the required
repayment |
from the refund and may impose a reasonable payment schedule |
for
repaying the amount, if any, by which the required |
repayment exceeds the refund
amount.
|
(h) The additional unfunded liability accruing as a result |
of the adoption
of a program of early retirement incentives |
under this Section by an employer
shall be amortized over a |
period of 10 years beginning on January 1 of the
second |
calendar year following the calendar year in which the latest |
date for
beginning to receive a retirement annuity under the |
program (as determined by
the employer under subsection (d) of |
this Section) occurs; except that the
employer may provide for |
a shorter amortization period (of no less than 5
years) by |
adopting an ordinance or resolution specifying the length of |
the
amortization period and submitting a certified copy of the |
ordinance or
resolution to the Fund no later than 6 months |
|
after the effective date of the
program. An employer, at its |
discretion, may accelerate payments to the Fund.
|
An employer may provide more than one early retirement |
incentive program
for its employees under this Section. |
However, an employer that has provided
an early retirement |
incentive program for its employees under this Section may
not |
provide another early retirement incentive program under this |
Section until the liability arising from the earlier program |
has been fully paid to
the Fund.
|
(Source: P.A. 102-210, eff. 1-1-22.)
|
Section 95. No acceleration or delay. Where this Act makes |
changes in a statute that is represented in this Act by text |
that is not yet or no longer in effect (for example, a Section |
represented by multiple versions), the use of that text does |
not accelerate or delay the taking effect of (i) the changes |
made by this Act or (ii) provisions derived from any other |
Public Act.
|
Section 99. Effective date. This Act takes effect upon |
becoming law.
|