Illinois General Assembly - Full Text of Public Act 097-0328
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Public Act 097-0328


 

Public Act 0328 97TH GENERAL ASSEMBLY

  
  
  

 


 
Public Act 097-0328
 
HB1956 EnrolledLRB097 10454 JDS 50686 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 7-135, 7-137, 7-141, and 7-144 as follows:
 
    (40 ILCS 5/7-135)  (from Ch. 108 1/2, par. 7-135)
    Sec. 7-135. Authorized agents.
    (a) Each participating municipality and participating
instrumentality shall appoint an authorized agent who shall
have the powers and duties set forth in this section. In
absence of such appointment, the duties of the authorized agent
shall devolve upon the clerk or secretary of the municipality
or instrumentality and in the case of township school trustees
upon the township school treasurer. In townships the Authorized
Agent shall be the township supervisor.
    (b) The authorized agent shall have the following powers
and duties:
        1. To certify to the fund whether or not a given person
    is authorized to participate in the fund;
        2. To certify to the fund when a participating employee
    is on a leave of absence authorized by the municipality;
        3. To request the proper officer to cause employee
    contributions to be withheld from earnings and transmitted
    to the fund;
        4. To request the proper officer to cause municipality
    contributions to be forwarded to the fund promptly;
        5. To forward promptly to all participating employees
    any communications from the fund for such employees;
        6. To forward promptly to the fund all applications,
    claims, reports and other communications delivered to him
    by participating employees;
        7. To perform all duties related to the administration
    of this retirement system as requested by the fund and the
    governing body of his municipality.
    (c) The governing body of each participating municipality
and participating instrumentality may delegate any or all of
the following powers and duties to its authorized agent, but
only if the agent is a member of the fund:
        1. To file a petition for nomination of an executive
    trustee of the fund.
        2. To cast the ballot for election of an executive
    trustee of the fund.
    If a governing body does not authorize its agent to perform
the powers and duties set forth in this paragraph (c), they
shall be performed by the governing body itself, unless the
governing body by resolution duly certified to the fund
delegates them to some other officer or employee.
    (d) The delivery of any communication or document by an
employee or a participating municipality or participating
instrumentality to its authorized agent shall not constitute
delivery to the fund.
(Source: P.A. 87-740.)
 
    (40 ILCS 5/7-137)  (from Ch. 108 1/2, par. 7-137)
    Sec. 7-137. Participating and covered employees.
    (a) The persons described in this paragraph (a) shall be
included within and be subject to this Article and eligible to
benefits from this fund, beginning upon the dates hereinafter
specified:
        1. Except as to the employees specifically excluded
    under the provisions of this Article, all persons who are
    employees of any municipality (or instrumentality thereof)
    or participating instrumentality on the effective date of
    participation of the municipality or participating
    instrumentality beginning upon such effective date.
        2. Except as to the employees specifically excluded
    under the provisions of this Article, all persons, who
    became employees of any participating municipality (or
    instrumentality thereof) or participating instrumentality
    after the effective date of participation of such
    municipality or participating instrumentality, beginning
    upon the date such person becomes an employee.
        3. All persons who file notice with the board as
    provided in paragraph (b) 2 and 3 of this Section,
    beginning upon the date of filing such notice.
    (b) The following described persons shall not be considered
participating employees eligible for benefits from this fund,
but shall be included within and be subject to this Article
(each of the descriptions is not exclusive but is cumulative):
        1. Any person who occupies an office or is employed in
    a position normally requiring performance of duty during
    less than 600 hours a year for a municipality (including
    all instrumentalities thereof) or a participating
    instrumentality. If a school treasurer performs services
    for more than one school district, the total number of
    hours of service normally required for the several school
    districts shall be considered to determine whether he
    qualifies under this paragraph;
        2. Any person who holds elective office unless he has
    elected while in that office in a written notice on file
    with the board to become a participating employee;
        3. Any person working for a city hospital unless any
    such person, while in active employment, has elected in a
    written notice on file with the board to become a
    participating employee and notification thereof is
    received by the board;
        4. Any person who becomes an employee after June 30,
    1979 as a public service employment program participant
    under the federal Comprehensive Employment and Training
    Act and whose wages or fringe benefits are paid in whole or
    in part by funds provided under such Act;
        5. Any person who is actively employed by a
    municipality on its effective date of participation in the
    Fund if that municipality (i) has at least 35 employees on
    its effective date of participation; (ii) is located in a
    county with at least 2,000,000 inhabitants; and (iii)
    maintains an independent defined benefit pension plan for
    the benefit of its eligible employees, unless the person
    files with the board within 90 days after the
    municipality's effective date of participation an
    irrevocable election to participate.
    (c) Any person electing to be a participating employee,
pursuant to paragraph (b) of this Section may not change such
election, except as provided in Section 7-137.1.
    (d) Any employee who occupied the position of school nurse
in any participating municipality on August 8, 1961 and
continuously thereafter until the effective date of the
exercise of the option authorized by this subparagraph, who on
August 7, 1961 was a member of the Teachers' Retirement System
of Illinois, by virtue of certification by the Department of
Registration and Education as a public health nurse, may elect
to terminate participation in this Fund in order to
re-establish membership in such System. The election may be
exercised by filing written notice thereof with the Board or
with the Board of Trustees of said Teachers' Retirement System,
not later than September 30, 1963, and shall be effective on
the first day of the calendar month next following the month in
which the notice was filed. If the written notice is filed with
such Teachers' Retirement System, that System shall
immediately notify this Fund, but neither failure nor delay in
notification shall affect the validity of the employee's
election. If the option is exercised, the Fund shall notify
such Teachers' Retirement System of such fact and transfer to
that system the amounts contributed by the employee to this
Fund, including interest at 3% per annum, but excluding
contributions applicable to social security coverage during
the period beginning August 8, 1961 to the effective date of
the employee's election. Participation in this Fund as to any
credits on or after August 8, 1961 and up to the effective date
of the employee's election shall terminate on such effective
date.
    (e) Any participating municipality or participating
instrumentality, other than a school district or special
education joint agreement created under Section 10-22.31 of the
School Code, may, by a resolution or ordinance duly adopted by
its governing body, elect to exclude from participation and
eligibility for benefits all persons who are employed after the
effective date of such resolution or ordinance and who occupy
an office or are employed in a position normally requiring
performance of duty for less than 1000 hours per year for the
participating municipality (including all instrumentalities
thereof) or participating instrumentality except for persons
employed in a position normally requiring performance of duty
for 600 hours or more per year (i) by such participating
municipality or participating instrumentality prior to the
effective date of the resolution or ordinance and (ii) by a
participating municipality or participating instrumentality,
which had not adopted such a resolution when the person was
employed, and the function served by the employee's position is
assumed by another participating municipality or participating
instrumentality. A participating municipality or participating
instrumentality included in and subject to this Article after
January 1, 1982 may adopt such resolution or ordinance only
prior to the date it becomes included in and subject to this
Article. Notwithstanding the foregoing, a participating
municipality or participating instrumentality which is formed
solely to succeed to the functions of a participating
municipality or participating instrumentality shall be
considered to have adopted any such resolution or ordinance
which may have been applicable to the employees performing such
functions. The election made by the resolution or ordinance
shall take effect at the time specified in the resolution or
ordinance, and once effective shall be irrevocable.
(Source: P.A. 96-1140, eff. 7-21-10.)
 
    (40 ILCS 5/7-141)  (from Ch. 108 1/2, par. 7-141)
    Sec. 7-141. Retirement annuities - Conditions. Retirement
annuities shall be payable as hereinafter set forth:
    (a) A participating employee who, regardless of cause, is
separated from the service of all participating municipalities
and instrumentalities thereof and participating
instrumentalities shall be entitled to a retirement annuity
provided:
        1. He is at least age 55, or in the case of a person who
    is eligible to have his annuity calculated under Section
    7-142.1, he is at least age 50;
        2. He is (i) an employee who was employed by any
    participating municipality or participating
    instrumentality which had not elected to exclude persons
    employed in positions normally requiring performance of
    duty for less than 1000 hours per year or was employed in a
    position normally requiring performance of duty for 600
    hours or more per year prior to such election by any
    participating municipality or participating
    instrumentality included in and subject to this Article on
    or before the effective date of this amendatory Act of 1981
    which made such election and is not entitled to receive
    earnings for employment in a position normally requiring
    performance of duty for 600 hours or more per year for any
    participating municipality and instrumentalities thereof
    and participating instrumentality; or (ii) an employee who
    was employed only by a participating municipality or
    participating instrumentality, or participating
    municipalities or participating instrumentalities, which
    have elected to exclude persons in positions normally
    requiring performance of duty for less than 1000 hours per
    year after the effective date of such exclusion or which
    are included under and subject to the Article after the
    effective date of this amendatory Act of 1981 and elects to
    exclude persons in such positions, and is not entitled to
    receive earnings for employment in a position requiring
    him, or entitling him to elect, to be a participating
    employee normally requiring performance of duty for 1000
    hours or more per year by such a participating municipality
    or participating instrumentality;
        3. The amount of his annuity, before the application of
    paragraph (b) of Section 7-142 is at least $10 per month;
        4. If he first became a participating employee after
    December 31, 1961, he has at least 8 years of service. This
    service requirement shall not apply to any participating
    employee, regardless of participation date, if the General
    Assembly terminates the Fund.
    (b) Retirement annuities shall be payable:
        1. As provided in Section 7-119;
        2. Except as provided in item 3, upon receipt by the
    fund of a written application. The effective date may be
    not more than one year prior to the date of the receipt by
    the fund of the application;
        3. Upon attainment of age 70 1/2 if the member (i) is
    no longer in service, and (ii) is otherwise entitled to an
    annuity under this Article;
        4. To the beneficiary of the deceased annuitant for the
    unpaid amount accrued to date of death, if any.
(Source: P.A. 91-887, eff. 7-6-00.)
 
    (40 ILCS 5/7-144)  (from Ch. 108 1/2, par. 7-144)
    Sec. 7-144. Retirement annuities-Suspended during
employment.
    (a) (1) If any person described in clause (i) of subsection
(a) 2 of Section 7-141 receiving any annuity again becomes an
employee and receives earnings from employment in a position
normally requiring performance of duty during 600 hours or more
per year for any participating municipality and
instrumentalities thereof or participating instrumentality; or
(2) if any person described in clause (ii) of subsection (a) 2
of Section 7-141 receiving any annuity returns to employment in
a position requiring him, or entitling him to elect, to become
a participating employee, ; then the annuity payable to such
employee shall be suspended as of the 1st day of the month
coincidental with or next following the date upon which such
person becomes such an employee. Upon proper qualification of
the participating employee payment of such annuity may be
resumed on the 1st day of the month following such
qualification and upon proper application therefor. The
participating employee in such case shall be entitled to a
supplemental annuity arising from service and credits earned
subsequent to such re-entry as a participating employee.
    (b) Supplemental annuities to persons who return to service
for less than 48 months shall be computed under the provisions
of Sections 7-141, 7-142 and 7-143. In determining whether an
employee is eligible for an annuity which requires a minimum
period of service, his entire period of service shall be taken
into consideration but the supplemental annuity shall be based
on earnings and service in the supplemental period only. The
effective date of the suspended and supplemental annuity for
the purpose of increases after retirement shall be considered
to be the effective date of the suspended annuity.
    (c) Supplemental annuities to persons who return to service
for 48 months or more shall be a monthly amount determined as
follows:
        (1) An amount shall be computed under subparagraph b of
    paragraph (1) of subsection (a) of Section 7-142,
    considering all of the service credits of the employee;
        (2) The actuarial value in monthly payments for life of
    the annuity payments made before suspension shall be
    determined and subtracted from the amount determined in (1)
    above;
        (3) The monthly amount of the suspended annuity, with
    any applicable increases after retirement computed from
    the effective date to the date of reinstatement, shall be
    subtracted from the amount determined in (2) above and the
    remainder shall be the amount of the supplemental annuity
    provided that this amount shall not be less than the amount
    computed under subsection (b) of this Section.
        (4) The suspended annuity shall be reinstated at an
    amount including any increases after retirement from the
    effective date to date of reinstatement.
        (5) The effective date of the combined suspended and
    supplemental annuities for the purposes of increases after
    retirement shall be considered to be the effective date of
    the supplemental annuity.
(Source: P.A. 82-459.)
 
    Section 90. The State Mandates Act is amended by adding
Section 8.35 as follows:
 
    (30 ILCS 805/8.35 new)
    Sec. 8.35. 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 97th General Assembly.
 
    Section 99. Effective date. This Act takes effect upon
becoming law.

Effective Date: 8/12/2011