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SB1693 Engrossed |
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LRB094 06133 EFG 36198 b |
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| AN ACT in relation to public employee benefits.
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| Be it enacted by the People of the State of Illinois, |
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| represented in the General Assembly:
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| Section 5. The Illinois Pension Code is amended by changing |
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| Sections
7-142.1, 7-156, 7-169, 7-172, and 7-173.1 as follows:
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| (40 ILCS 5/7-142.1) (from Ch. 108 1/2, par. 7-142.1)
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| Sec. 7-142.1. Sheriff's law enforcement employees.
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| (a) In lieu of the retirement annuity provided by |
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| subparagraph 1 of
paragraph (a) of Section 7-142:
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| Any sheriff's law enforcement employee who
has 20 or more |
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| years of service in that capacity and who terminates
service |
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| prior to January 1, 1988 shall be entitled at his
option to |
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| receive a monthly retirement annuity for his service as a
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| sheriff's law enforcement employee computed by multiplying 2% |
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| for each year
of such service up to 10 years, 2 1/4% for each |
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| year
of such service above 10 years and up to 20 years, and
2 |
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| 1/2% for each year of such service above
20 years, by his |
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| annual final rate of earnings and dividing by 12.
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| Any sheriff's law enforcement employee who has 20 or more |
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| years of
service in that capacity and who terminates service on |
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| or after January 1,
1988 and before July 1, 2004 shall be |
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| entitled at his option to receive
a monthly retirement
annuity |
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| for his service as a sheriff's law enforcement employee |
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| computed by
multiplying 2.5% for each year of such service up |
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| to 20 years, 2% for each
year of such service above 20 years |
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| and up to 30 years, and 1% for each
year of such service above |
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| 30 years, by his annual final rate of earnings
and dividing by |
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| 12.
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| Any sheriff's law enforcement employee who has 20 or more |
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| years of
service in that capacity and who terminates service on |
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| or after July 1,
2004 shall be entitled at his or her option to |
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| receive a monthly retirement
annuity for service as a sheriff's |
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SB1693 Engrossed |
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LRB094 06133 EFG 36198 b |
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| law enforcement employee computed by
multiplying 2.5% for each |
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| year of such service by his annual final rate of
earnings and |
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| dividing by 12.
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| If a sheriff's law enforcement employee has service in any |
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| other
capacity, his retirement annuity for service as a |
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| sheriff's law enforcement
employee may be computed under this |
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| Section and the retirement annuity for
his other service under |
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| Section 7-142.
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| In no case shall the total monthly retirement annuity for |
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| persons who retire before July 1, 2004 exceed 75% of the
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| monthly final rate of earnings. In no case shall the total |
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| monthly retirement annuity for persons who retire on or after |
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| July 1, 2004 exceed 80% of the
monthly final rate of earnings.
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| (b) Whenever continued group insurance coverage is elected |
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| in accordance
with the provisions of Section 367h of the |
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| Illinois Insurance Code, as now
or hereafter amended, the total |
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| monthly premium for such continued group
insurance coverage or |
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| such portion thereof as is not paid
by the municipality shall, |
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| upon request of the person electing such
continued group |
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| insurance coverage, be deducted from any monthly pension
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| benefit otherwise payable to such person pursuant to this |
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| Section, to be
remitted by the Fund to the insurance company
or |
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| other entity providing the group insurance coverage.
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| (c) A sheriff's law enforcement employee who has service in |
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| any other
capacity may convert up to 10 years of that service |
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| into service as a sheriff's
law enforcement employee by paying |
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| to the Fund an amount equal to (1) the
additional employee |
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| contribution required under Section 7-173.1, plus (2) the |
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| additional employer contribution required under Section 7-172, |
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| plus (3) interest on items (1) and (2) at the
prescribed rate |
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| from the date of the service to the date of payment.
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| (d) The changes to subsections (a) and (b) of this Section |
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| made by this amendatory Act of the 94th General Assembly apply |
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| only to persons in service on or after July 1, 2004. In the |
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| case of such a person who begins to receive a retirement |
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| annuity before the effective date of this amendatory Act of the |
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SB1693 Engrossed |
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| 94th General Assembly, the annuity shall be recalculated |
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| prospectively to reflect those changes, with the resulting |
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| increase beginning to accrue on the first annuity payment date |
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| following the effective date of this amendatory Act.
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| (Source: P.A. 85-941.)
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| (40 ILCS 5/7-156) (from Ch. 108 1/2, par. 7-156)
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| Sec. 7-156. Surviving spouse annuities - amount.
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| (a) The amount of surviving spouse annuity shall be:
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| 1. Upon the death of an employee annuitant or such person |
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| entitled, upon
application, to a retirement annuity at date of |
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| death, (i) an amount equal
to 1/2 of the retirement annuity |
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| which was or would
have been payable exclusive of the amount so |
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| payable which was provided from
additional credits, and |
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| disregarding any election made under paragraph (b) of
Section |
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| 7-142, plus (ii) an annuity which could be provided at the then
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| attained age of the surviving spouse and under actuarial tables |
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| then in effect,
from the excess of the additional credits, |
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| (excluding any such credits used to
create a reversionary |
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| annuity) used to provide the annuity granted pursuant to
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| paragraph (a) (2) of Section 7-142 of this article over the |
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| total annuity
payments made pursuant thereto.
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| 2. Upon the death of a participating employee on or after |
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| attainment of
age 55, an amount equal to 1/2 of the retirement |
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| annuity
which he could have had as of the date of death had he |
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| then retired and applied
for annuity, exclusive of the portion |
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| thereof which could have been provided
from additional credits, |
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| and disregarding paragraph (b) of Section 7-142,
plus an amount |
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| equal to the annuity which could be provided from the total
of |
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| his accumulated additional credits at date of death, on the |
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| basis of the
attained age of the surviving spouse on such date.
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| 3. Upon the death of a participating employee before age |
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| 55, an amount equal
to 1/2 of the retirement annuity which he |
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| could have had
as of his attained age on the date of death, had |
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| he then retired and applied
for annuity, and the provisions of |
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| this Article that no such annuity shall
begin until the |
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SB1693 Engrossed |
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| employee has attained at least age 55 were not applicable,
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| exclusive of the portion thereof which could have been provided |
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| from
additional credits and disregarding paragraph (b) of |
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| Section 7-142, plus an
amount equal to the annuity which could |
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| be provided from the total of his
accumulated additional |
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| credits at date of death, on the basis of the
attained age of |
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| the surviving spouse on such date.
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| In the case of the surviving spouse of a person who dies |
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| before the
effective date of this amendatory Act of the 94th |
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| General Assembly, if
the
a surviving spouse is more than 5 |
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| years younger than the deceased,
that portion of the annuity |
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| which is not based on additional credits shall
be reduced in |
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| the ratio of the value of a life annuity of $1 per year at an
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| age of 5 years less than the attained age of the deceased, at |
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| the earlier
of the date of the death or the date his retirement |
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| annuity begins, to the
value of a life annuity of $1 per year |
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| at the attained age of the surviving
spouse on such date, |
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| according to actuarial tables approved by the Board.
This |
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| reduction does not apply to the surviving spouse of a person |
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| who dies
on or after the effective date of this amendatory Act |
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| of the 94th General
Assembly.
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| In computing the amount of a surviving spouse annuity, |
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| incremental increases
of retirement annuities to the date of |
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| death of the employee annuitant shall be
considered.
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| (b) Each surviving spouse annuity payable on January 1, |
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| 1988 shall be
increased on that date by 3% of the original |
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| amount of the annuity. Each
surviving spouse annuity that |
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| begins after January 1, 1988 shall be
increased on the January |
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| 1 next occurring after the annuity begins, by an
amount equal |
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| to (i) 3% of the original amount thereof if the deceased
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| employee was receiving a retirement annuity at the time of his |
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| death; otherwise
(ii) 0.167% of the original amount thereof for |
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| each complete
month which has elapsed since the date the |
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| annuity began.
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| On each January 1 after the date of the initial increase |
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| under this
subsection, each surviving spouse annuity shall be |
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SB1693 Engrossed |
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LRB094 06133 EFG 36198 b |
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| increased by 3% of the
originally granted amount of the |
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| annuity.
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| (Source: P.A. 85-941.)
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| (40 ILCS 5/7-169) (from Ch. 108 1/2, par. 7-169)
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| Sec. 7-169. Separation benefits ; repayments.
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| (a) If an employee who has
received a separation benefit |
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| subsequently becomes a participating employee,
and renders at |
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| least 2 years of contributing service from the date of such
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| re-entry, he may pay to the fund the amount of the separation |
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| benefit, plus
interest at the effective rate for each year from |
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| the date of payment of the
separation benefit to the date of |
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| repayment. Upon payment his creditable
service shall be |
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| reinstated and the payment shall be credited to his account
as |
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| normal contributions. |
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(b) Beginning July 1, 2004, the requirement of
returning |
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| to service for at least 2 years does not apply to persons who |
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| return
to service as a sheriff's law enforcement employee. This |
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| subsection applies only to persons in service on or after July |
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| 1, 2004. In the case of such a person who begins to receive a |
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| retirement annuity before the effective date of this amendatory |
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| Act of the 94th General Assembly, the annuity shall be |
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| recalculated prospectively to reflect any credits reinstated |
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| as a result of this subsection, with the resulting increase in |
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| annuity beginning to accrue on the first annuity payment date |
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| following the effective date of this amendatory Act, but not |
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| earlier than the date the repayment is received by the Fund.
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| (Source: P.A. 84-1028.)
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| (40 ILCS 5/7-172) (from Ch. 108 1/2, par. 7-172)
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| Sec. 7-172. Contributions by participating municipalities |
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| and
participating instrumentalities.
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| (a) Each participating municipality and each participating
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| instrumentality shall make payment to the fund as follows:
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| 1. municipality contributions in an amount determined |
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| by applying
the municipality contribution rate to each |
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| payment of earnings paid to
each of its participating |
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| employees;
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| 2. an amount equal to the employee contributions |
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| provided by paragraphs
(a) and (b) of Section 7-173, |
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| whether or not the employee contributions are
withheld as |
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| permitted by that Section;
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| 3. all accounts receivable, together with interest |
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| charged thereon,
as provided in Section 7-209;
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| 4. if it has no participating employees with current |
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| earnings, an
amount payable which, over a period of 20 |
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| years beginning with the year
following an award of |
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| benefit, will amortize, at the effective rate for
that |
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| year, any negative balance in its municipality reserve |
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| resulting
from the award. This amount when established will |
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| be payable as a
separate contribution whether or not it |
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| later has participating employees.
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| (b) A separate municipality contribution rate shall be |
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| determined
for each calendar year for all participating |
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| municipalities together
with all instrumentalities thereof. |
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| The municipality contribution rate
shall be determined for |
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| participating instrumentalities as if they were
participating |
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| municipalities. The municipality contribution rate shall
be |
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| the sum of the following percentages:
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| 1. The percentage of earnings of all the participating |
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| employees of all
participating municipalities and |
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| participating instrumentalities which, if paid
over the |
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| entire period of their service, will be sufficient when |
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| combined with
all employee contributions available for the |
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| payment of benefits, to provide
all annuities for |
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| participating employees, and the $3,000 death benefit
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| payable under Sections 7-158 and 7-164, such percentage to |
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| be known as the
normal cost rate.
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| 2. The percentage of earnings of the participating |
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| employees of each
participating municipality and |
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| participating instrumentalities necessary
to adjust for |
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| the difference between the present value of all benefits,
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| excluding temporary and total and permanent disability and |
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| death benefits, to
be provided for its participating |
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| employees and the sum of its accumulated
municipality |
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| contributions and the accumulated employee contributions |
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| and the
present value of expected future employee and |
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| municipality contributions
pursuant to subparagraph 1 of |
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| this paragraph (b). This adjustment shall be
spread over |
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| the remainder of the period that is allowable under |
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| generally
accepted accounting principles.
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| 3. The percentage of earnings of the participating |
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| employees of all
municipalities and participating |
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| instrumentalities necessary to provide
the present value |
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| of all temporary and total and permanent disability
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| benefits granted during the most recent year for which |
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| information is
available.
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| 4. The percentage of earnings of the participating |
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| employees of all
participating municipalities and |
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| participating instrumentalities
necessary to provide the |
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| present value of the net single sum death
benefits expected |
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| to become payable from the reserve established under
|
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| Section 7-206 during the year for which this rate is fixed.
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| 5. The percentage of earnings necessary to meet any |
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| deficiency
arising in the Terminated Municipality Reserve.
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| (c) A separate municipality contribution rate shall be |
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| computed for
each participating municipality or participating |
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| instrumentality
for its sheriff's law enforcement employees.
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| A separate municipality contribution rate shall be |
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| computed for the
sheriff's law enforcement employees of each |
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| forest preserve district that
elects to have such employees. |
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| For the period from January 1, 1986 to
December 31, 1986, such |
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| rate shall be the forest preserve district's regular
rate plus |
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| 2%.
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| In the event that the Board determines that there is an |
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| actuarial
deficiency in the account of any municipality with |
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| respect to a person who
has elected to participate in the Fund |
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| under Section 3-109.1 of this Code,
the Board may adjust the |
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| municipality's contribution rate so as to make up
that |
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| deficiency over such reasonable period of time as the Board may |
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| determine.
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| (d) The Board may establish a separate municipality |
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| contribution
rate for all employees who are program |
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| participants employed under the
federal Comprehensive |
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| Employment Training Act by all of the
participating |
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| municipalities and instrumentalities. The Board may also
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| provide that, in lieu of a separate municipality rate for these
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| employees, a portion of the municipality contributions for such |
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| program
participants shall be refunded or an extra charge |
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| assessed so that the
amount of municipality contributions |
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| retained or received by the fund
for all CETA program |
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| participants shall be an amount equal to that which
would be |
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| provided by the separate municipality contribution rate for all
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| such program participants. Refunds shall be made to prime |
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| sponsors of
programs upon submission of a claim therefor and |
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| extra charges shall be
assessed to participating |
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| municipalities and instrumentalities. In
establishing the |
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| municipality contribution rate as provided in paragraph
(b) of |
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| this Section, the use of a separate municipality contribution
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| rate for program participants or the refund of a portion of the
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| municipality contributions, as the case may be, may be |
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| considered.
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| (e) Computations of municipality contribution rates for |
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| the
following calendar year shall be made prior to the |
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| beginning of each
year, from the information available at the |
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| time the computations are
made, and on the assumption that the |
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| employees in each participating
municipality or participating |
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| instrumentality at such time will continue
in service until the |
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| end of such calendar year at their respective rates
of earnings |
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| at such time.
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| (f) Any municipality which is the recipient of State |
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| allocations
representing that municipality's contributions for |
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| retirement annuity
purposes on behalf of its employees as |
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| provided in Section 12-21.16 of
the Illinois Public Aid Code |
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LRB094 06133 EFG 36198 b |
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| shall pay the allocations so
received to the Board for such |
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| purpose. Estimates of State allocations to
be received during |
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| any taxable year shall be considered in the
determination of |
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| the municipality's tax rate for that year under Section
7-171. |
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| If a special tax is levied under Section 7-171, none of the
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| proceeds may be used to reimburse the municipality for the |
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| amount of State
allocations received and paid to the Board. Any |
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| multiple-county or
consolidated health department which |
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| receives contributions from a county
under Section 11.2 of "An |
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| Act in relation to establishment and maintenance
of county and |
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| multiple-county health departments", approved July 9, 1943,
as |
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| amended, or distributions under Section 3 of the Department of |
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| Public
Health Act, shall use these only for municipality |
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| contributions by the
health department.
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| (g) Municipality contributions for the several purposes |
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| specified
shall, for township treasurers and employees in the |
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| offices of the
township treasurers who meet the qualifying |
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| conditions for coverage
hereunder, be allocated among the |
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| several school districts and parts of
school districts serviced |
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| by such treasurers and employees in the
proportion which the |
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| amount of school funds of each district or part of
a district |
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| handled by the treasurer bears to the total amount of all
|
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| school funds handled by the treasurer.
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| From the funds subject to allocation among districts and |
25 |
| parts of
districts pursuant to the School Code, the trustees |
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| shall withhold the
proportionate share of the liability for |
27 |
| municipality contributions imposed
upon such districts by this |
28 |
| Section, in respect to such township treasurers
and employees |
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| and remit the same to the Board.
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| The municipality contribution rate for an educational |
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| service center shall
initially be the same rate for each year |
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| as the regional office of
education or school district
which |
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| serves as its administrative agent. When actuarial data become
|
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| available, a separate rate shall be established as provided in |
35 |
| subparagraph
(i) of this Section.
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| The municipality contribution rate for a public agency, |
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| other than a
vocational education cooperative, formed under the |
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| Intergovernmental
Cooperation Act shall initially be the |
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| average rate for the municipalities
which are parties to the |
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| intergovernmental agreement. When actuarial data
become |
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| available, a separate rate shall be established as provided in
|
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| subparagraph (i) of this Section.
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| (h) Each participating municipality and participating
|
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| instrumentality shall make the contributions in the amounts |
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| provided in
this Section in the manner prescribed from time to |
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| time by the Board and
all such contributions shall be |
11 |
| obligations of the respective
participating municipalities and |
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| participating instrumentalities to this
fund. The failure to |
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| deduct any employee contributions shall not
relieve the |
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| participating municipality or participating instrumentality
of |
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| its obligation to this fund. Delinquent payments of |
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| contributions
due under this Section may, with interest, be |
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| recovered by civil action
against the participating |
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| municipalities or participating
instrumentalities. |
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| Municipality contributions, other than the amount
necessary |
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| for employee contributions and Social Security contributions, |
21 |
| for
periods of service by employees from whose earnings no |
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| deductions were made
for employee contributions to the fund, |
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| may be charged to the municipality
reserve for the municipality |
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| or participating instrumentality.
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| (i) Contributions by participating instrumentalities shall |
26 |
| be
determined as provided herein except that the percentage |
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| derived under
subparagraph 2 of paragraph (b) of this Section, |
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| and the amount payable
under subparagraph 5 of paragraph (a) of |
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| this Section, shall be based on
an amortization period of 10 |
30 |
| years.
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| (j) Notwithstanding the other provisions of this Section, |
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| the additional unfunded liability accruing as a result of this |
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| amendatory Act of the 94th General Assembly
shall be amortized |
34 |
| over a period of 30 years beginning on January 1 of the
second |
35 |
| calendar year following the calendar year in which this |
36 |
| amendatory Act takes effect.
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|
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| (Source: P.A. 92-424, eff. 8-17-01.)
|
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| (40 ILCS 5/7-173.1) (from Ch. 108 1/2, par. 7-173.1)
|
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| Sec. 7-173.1. Additional contribution by sheriff's law |
4 |
| enforcement
employees.
|
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| (a) Each sheriff's law enforcement employee shall make an |
6 |
| additional
contribution of 1% of earnings, which shall be |
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| considered as normal
contributions. For earnings on or after |
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| July 1, 1988, the additional
contribution shall be 2% of |
9 |
| earnings. For earnings on or after the effective date of this |
10 |
| amendatory Act of the 94th General Assembly, the additional |
11 |
| contribution shall be 2.5% of earnings; this increase
is |
12 |
| intended to defray the employee's portion of the cost of the |
13 |
| benefit
increases provided by this amendatory Act of the 94th |
14 |
| General Assembly.
|
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| This additional contribution shall be payable for |
16 |
| retroactive service periods
which the employee elects to |
17 |
| establish and to periods of authorized leave of
absence.
|
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| (b) If the employee is awarded a retirement annuity under |
19 |
| Section
7-142 and not under Section 7-142.1, then the |
20 |
| additional contribution required
under this Section shall be |
21 |
| refunded with interest or paid as provided in
subsection (c). |
22 |
| If the employee returns to a participating status as a
|
23 |
| sheriff's law enforcement employee, the employee may repay the |
24 |
| amount refunded
with interest and upon subsequent retirement be |
25 |
| entitled to a recomputation of
the retirement annuity under |
26 |
| Section 7-142.1 if the total service as a
sheriff's law |
27 |
| enforcement employee meets the requirements of that Section.
|
28 |
| (c) Instead of a refund under subsection (b), the retiring |
29 |
| employee may
elect to convert the amount of the refund into an |
30 |
| annuity, payable
separately from the retirement annuity. If the |
31 |
| annuitant dies before the
guaranteed amount has been |
32 |
| distributed, the remainder shall be paid in a lump
sum to the |
33 |
| designated beneficiary of the annuitant. The Board shall adopt |
34 |
| any
rules necessary for the implementation of this subsection.
|
35 |
| (Source: P.A. 90-766, eff. 8-14-98.)
|