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HB4960 Engrossed |
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LRB096 15968 AMC 31213 b |
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| AN ACT concerning 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 7-118, 7-137, 7-172, and 7-220 as follows:
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| (40 ILCS 5/7-118) (from Ch. 108 1/2, par. 7-118)
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| Sec. 7-118. "Beneficiary" . :
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| (a) "Beneficiary" means: |
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| (1) Any person or persons, trust, or charity designated |
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| as a beneficiary
by an employee, former employee who has |
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| not yet received a retirement annuity
or separation |
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| benefit, or employee annuitant. If no designation is on |
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| file or
no beneficiary so designated survives, the estate |
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| of the employee, former
employee who has not yet received a |
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| retirement annuity or separation benefit,
or employee |
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| annuitant. |
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| (2) Any person or persons, trust, or charity designated |
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| as a beneficiary
by a beneficiary annuitant or, if no |
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| designation is on file or no beneficiary
so designated |
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| survives, the estate of the beneficiary annuitant.
The |
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| surviving spouse of an employee or of an employee
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| annuitant, or if no surviving spouse survives, the person |
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| or persons
designated by a participating employee or |
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LRB096 15968 AMC 31213 b |
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| employee annuitant, or if no
person so designated survives, |
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| or if no designation is on file, the
estate of the employee |
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| or employee annuitant. The person or persons
designated by |
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| a beneficiary annuitant, or if no person designated
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| survives, or if no designation is on file, the estate of |
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| the beneficiary
annuitant. |
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| (3) The estate of a surviving spouse annuitant where |
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| the employee
or employee annuitant filed no designation, or |
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| no person designated
survives at the death of a surviving |
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| spouse annuitant. |
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| (b) Designations of
beneficiaries shall be in writing on |
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| forms prescribed by the board and
effective upon filing in the |
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| fund offices. The designation forms shall
provide for |
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| contingent beneficiaries. Divorce, dissolution or annulment
of |
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| marriage revokes the designation of an employee's former spouse |
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| as a
beneficiary on a designation executed before entry of |
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| judgment for divorce,
dissolution or annulment of marriage.
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| (b) Notwithstanding the foregoing, an employee, former |
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| employee who has
not yet received a retirement annuity or |
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| separation benefit, or employee
annuitant may elect to name any |
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| person, trust or charity to be the
primary beneficiary of any |
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| death benefit payable by reason of his death. Such
election |
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| shall state specifically whether it is his intention to exclude |
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| the
spouse, shall be in writing, and may be revoked at any |
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| time. Such election or
revocation shall take effect upon being |
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| filed in the fund offices.
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HB4960 Engrossed |
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LRB096 15968 AMC 31213 b |
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| (c) If a surviving spouse annuity is payable to a former |
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| spouse upon
the death of an employee annuitant, the former |
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| spouse, unless designated by
the employee annuitant after |
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| dissolution of the marriage, shall not be the
beneficiary for |
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| the purposes of the $3,000 death benefit
payable under |
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| subparagraph 6 of Section 7-164. This benefit shall be paid
to |
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| the designated beneficiary of the employee annuitant or, if |
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| there is no
designation, then to the estate of the employee |
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| annuitant.
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| (Source: P.A. 89-136, eff. 7-14-95; 90-448, eff. 8-16-97.)
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| (40 ILCS 5/7-137) (from Ch. 108 1/2, par. 7-137)
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| Sec. 7-137. Participating and covered employees.
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| (a) The persons described in this paragraph (a) shall be |
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| included within
and be subject to this Article and eligible to |
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| benefits from this fund,
beginning upon the dates hereinafter |
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| specified:
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| 1. Except as to the employees specifically excluded |
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| under the
provisions of this Article, all persons who are |
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| employees of any
municipality (or instrumentality thereof) |
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| or participating
instrumentality on the effective date of |
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| participation of the
municipality or participating |
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| instrumentality beginning upon such
effective date.
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| 2. Except as to the employees specifically excluded |
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| under the
provisions of this Article, all persons, who |
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| became employees of any
participating municipality (or |
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HB4960 Engrossed |
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LRB096 15968 AMC 31213 b |
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| instrumentality thereof) or participating
instrumentality |
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| after the effective date of participation of such
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| municipality or participating instrumentality, beginning |
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| upon the date
such person becomes an employee.
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| 3. All persons who file notice with the board as |
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| provided in
paragraph (b) 2 and 3 of this Section, |
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| beginning upon the date of filing
such notice.
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| (b) The following described persons shall not be considered
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| participating employees eligible for benefits from this fund, |
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| but shall
be included within and be subject to this Article |
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| (each of the
descriptions is not exclusive but is cumulative):
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| 1. Any person who occupies an office or is employed in |
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| a position
normally requiring performance of duty during |
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| less than 600 hours a year
for a municipality (including |
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| all instrumentalities thereof) or a
participating |
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| instrumentality. If a school treasurer performs services
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| for more than one school district, the total number of |
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| hours of service
normally required for the several school |
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| districts shall be considered
to determine whether he |
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| qualifies under this paragraph;
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| 2. Any person who holds elective office unless he has |
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| elected while
in that office in a written notice on file |
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| with the board to become a
participating employee;
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| 3. Any person working for a city hospital unless any |
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| such person,
while in active employment, has elected in a |
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| written notice on file with
the board to become a |
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HB4960 Engrossed |
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LRB096 15968 AMC 31213 b |
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| participating employee and notification thereof is
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| received by the board;
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| 4. Any person who becomes an employee after June 30, |
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| 1979 as a public
service employment program participant |
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| under the federal Comprehensive
Employment and Training |
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| Act and whose wages or fringe benefits are paid in
whole or |
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| in part by funds provided under such Act;
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| 5. Any person who is actively employed by a |
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| municipality on its effective date of participation in the |
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| Fund if that municipality (i) has at least 35 employees on |
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| its effective date of participation; (ii) is located in a |
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| county with at least 2,000,000 inhabitants; and (iii) |
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| maintains an independent defined benefit pension plan for |
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| the benefit of its eligible employees, unless the person |
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| files with the board within 90 days after the |
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| municipality's effective date of participation an |
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| irrevocable election to participate.
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| (c) Any person electing to be a participating employee, |
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| pursuant to
paragraph (b) of this Section may not change such |
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| election,
except as provided in Section 7-137.1.
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| (d) Any employee who occupied the position of school nurse |
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| in any
participating municipality on August 8, 1961 and |
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| continuously thereafter
until the effective date of the |
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| exercise of the option authorized by
this subparagraph, who on |
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| August 7, 1961 was a member of the Teachers'
Retirement System |
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| of Illinois, by virtue of certification by the
Department of |
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HB4960 Engrossed |
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LRB096 15968 AMC 31213 b |
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| Registration and Education as a public health nurse, may
elect |
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| to terminate participation in this Fund in order to |
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| re-establish
membership in such System. The election may be |
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| exercised by filing
written notice thereof with the Board or |
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| with the Board of Trustees of
said Teachers' Retirement System, |
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| not later than September 30, 1963, and
shall be effective on |
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| the first day of the calendar month next following
the month in |
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| which the notice was filed. If the written notice is filed
with |
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| such Teachers' Retirement System, that System shall |
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| immediately
notify this Fund, but neither failure nor delay in |
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| notification shall
affect the validity of the employee's |
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| election. If the option is
exercised, the Fund shall notify |
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| such Teachers' Retirement System of
such fact and transfer to |
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| that system the amounts contributed by the
employee to this |
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| Fund, including interest at 3% per annum, but excluding
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| contributions applicable to social security coverage during |
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| the period
beginning August 8, 1961 to the effective date of |
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| the employee's
election. Participation in this Fund as to any |
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| credits on or after
August 8, 1961 and up to the effective date |
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| of the employee's election
shall terminate on such effective |
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| date.
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| (e) Any participating municipality or participating |
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| instrumentality,
other than a school district or special |
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| education joint agreement created
under Section 10-22.31 of the |
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| School Code, may, by a resolution or
ordinance duly adopted by |
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| its governing body, elect to exclude from
participation and |
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HB4960 Engrossed |
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LRB096 15968 AMC 31213 b |
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| eligibility for benefits all persons who are employed
after the |
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| effective date of such resolution or ordinance and who occupy |
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| an
office or are employed in a position normally requiring |
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| performance of duty
for less than 1000 hours per year for the |
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| participating municipality
(including all instrumentalities |
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| thereof) or participating instrumentality
except for persons |
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| employed in a position normally requiring performance of
duty |
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| for 600 hours or more per year (i) by such participating |
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| municipality
or participating instrumentality prior to the |
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| effective date of the
resolution or ordinance and , (ii) by any |
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| participating municipality or
participating instrumentality |
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| prior to January 1, 1982 and (iii) by a
participating |
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| municipality or participating instrumentality, which had not
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| adopted such a resolution when the person was employed, and the |
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| function
served by the employee's position is assumed by |
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| another participating
municipality or participating |
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| instrumentality. A participating municipality or
participating |
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| instrumentality included in and subject to this Article after
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| January 1, 1982 may adopt such resolution or ordinance only |
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| prior to the
date it becomes included in and subject to this |
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| Article. Notwithstanding
the foregoing, a participating |
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| municipality or participating
instrumentality which is formed |
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| solely to succeed to the functions of a
participating |
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| municipality or participating instrumentality shall be
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| considered to have adopted any such resolution or ordinance |
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| which may have
been applicable to the employees performing such |
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HB4960 Engrossed |
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LRB096 15968 AMC 31213 b |
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| functions. The election
made by the resolution or ordinance |
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| shall take effect at the time specified
in the resolution or |
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| ordinance, and once effective shall be irrevocable.
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| (Source: P.A. 93-933, eff. 8-13-04.)
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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 closed period of |
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| 20 years for participating municipalities and 10 years for |
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| participating instrumentalities beginning with the year
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| following an award of benefit , will amortize, at the |
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| effective rate for
that year, any unfunded obligation. The |
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HB4960 Engrossed |
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LRB096 15968 AMC 31213 b |
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| unfunded obligation shall be computed as provided in |
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| paragraph 2 of subsection (b); negative balance in its |
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| municipality reserve resulting
from the award. This amount |
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| when established will be payable as a
separate contribution |
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| whether or not it later has participating employees. |
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| 5. if it has fewer than 7 participating employees or a |
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| negative balance in its municipality reserve, the greater |
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| of (A) an amount payable that, over a period of 20 years, |
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| will amortize at the effective rate for that year any |
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| unfunded obligation, computed as provided in paragraph 2 of |
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| subsection (b) or (B) the amount required by paragraph 1 of |
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| this subsection (a).
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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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HB4960 Engrossed |
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LRB096 15968 AMC 31213 b |
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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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HB4960 Engrossed |
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LRB096 15968 AMC 31213 b |
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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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HB4960 Engrossed |
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LRB096 15968 AMC 31213 b |
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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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HB4960 Engrossed |
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LRB096 15968 AMC 31213 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 |
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HB4960 Engrossed |
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LRB096 15968 AMC 31213 b |
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| municipality contributions imposed
upon such districts by this |
2 |
| 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 |
5 |
| 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 |
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| 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 |
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| 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 |
26 |
| contributions
due under this Section may, with interest, be |
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HB4960 Engrossed |
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LRB096 15968 AMC 31213 b |
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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, |
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| for
periods of service by employees from whose earnings no |
6 |
| 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 |
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| 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 |
14 |
| 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 |
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| over a period of 30 years beginning on January 1 of the
second |
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| calendar year following the calendar year in which this |
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| amendatory Act takes effect, except that the employer may |
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| provide for a longer amortization period by adopting a |
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| resolution or ordinance specifying a 35-year or 40-year period |
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| and submitting a certified copy of the ordinance or resolution |
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| to the fund no later than June 1 of the calendar year following |
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| the calendar year in which this amendatory Act takes effect.
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| (Source: P.A. 94-712, eff. 6-1-06 .)
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HB4960 Engrossed |
- 16 - |
LRB096 15968 AMC 31213 b |
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|
1 |
| (40 ILCS 5/7-220) (from Ch. 108 1/2, par. 7-220)
|
2 |
| Sec. 7-220. Administrative review. The provisions of the |
3 |
| Administrative Review Law, and all amendments and
|
4 |
| modifications thereof and the rules adopted
pursuant thereto |
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| shall apply to and govern all proceedings for the judicial
|
6 |
| review of final administrative decisions of the retirement |
7 |
| board provided
for under this Article. The term "administrative |
8 |
| decision" is as defined in
Section 3-101 of the Code of Civil |
9 |
| Procedure. The venue for actions brought under the |
10 |
| Administrative Review Law shall be any county in which the |
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| Board maintains an office or the county in which the member's |
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| plaintiff's employing participating municipality or |
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| participating instrumentality has its main office.
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| (Source: P.A. 82-783.)
|
15 |
| Section 90. The State Mandates Act is amended by adding |
16 |
| Section 8.34 as follows: |
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| (30 ILCS 805/8.34 new) |
18 |
| Sec. 8.34. Exempt mandate. Notwithstanding Sections 6 and 8 |
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| of this Act, no reimbursement by the State is required for the |
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| implementation of any mandate created by this amendatory Act of |
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| the 96th General Assembly.
|
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| Section 99. Effective date. This Act takes effect upon |
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| becoming law.
|