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1 | AN ACT in relation to public employee benefits.
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2 | Be it enacted by the People of the State of Illinois, | ||||||||||||||||||||||||||
3 | represented in the General Assembly:
| ||||||||||||||||||||||||||
4 | Section 5. The Illinois Pension Code is amended by changing | ||||||||||||||||||||||||||
5 | Sections 15-136
and 15-157 as follows:
| ||||||||||||||||||||||||||
6 | (40 ILCS 5/15-136) (from Ch. 108 1/2, par. 15-136)
| ||||||||||||||||||||||||||
7 | Sec. 15-136. Retirement annuities - Amount. The provisions | ||||||||||||||||||||||||||
8 | of this
Section 15-136 apply only to those participants who are | ||||||||||||||||||||||||||
9 | participating in the
traditional benefit package or the | ||||||||||||||||||||||||||
10 | portable benefit package and do not
apply to participants who | ||||||||||||||||||||||||||
11 | are participating in the self-managed plan.
| ||||||||||||||||||||||||||
12 | (a) The amount of a participant's retirement annuity, | ||||||||||||||||||||||||||
13 | expressed in the form
of a single-life annuity, shall be | ||||||||||||||||||||||||||
14 | determined by whichever of the following
rules is applicable | ||||||||||||||||||||||||||
15 | and provides the largest annuity:
| ||||||||||||||||||||||||||
16 | Rule 1: The retirement annuity shall be 1.67% of final rate | ||||||||||||||||||||||||||
17 | of earnings for
each of the first 10 years of service, 1.90% | ||||||||||||||||||||||||||
18 | for each of the next 10 years of
service, 2.10% for each year | ||||||||||||||||||||||||||
19 | of service in excess of 20 but not exceeding 30,
and 2.30% for | ||||||||||||||||||||||||||
20 | each year in excess of 30; or for persons who retire on or
| ||||||||||||||||||||||||||
21 | after January 1, 1998, 2.2% of the final rate of earnings for | ||||||||||||||||||||||||||
22 | each year of
service.
| ||||||||||||||||||||||||||
23 | Rule 2: The retirement annuity shall be the sum of the | ||||||||||||||||||||||||||
24 | following,
determined from amounts credited to the participant | ||||||||||||||||||||||||||
25 | in accordance with the
actuarial tables and the prescribed rate | ||||||||||||||||||||||||||
26 | of interest in effect at the
time the retirement annuity | ||||||||||||||||||||||||||
27 | begins:
| ||||||||||||||||||||||||||
28 | (i) the normal annuity which can be provided on an | ||||||||||||||||||||||||||
29 | actuarially
equivalent basis, by the accumulated normal | ||||||||||||||||||||||||||
30 | contributions as of
the date the annuity begins;
| ||||||||||||||||||||||||||
31 | (ii) an annuity from employer contributions of an | ||||||||||||||||||||||||||
32 | amount equal to that
which can be provided on an |
| |||||||
| |||||||
1 | actuarially equivalent basis from the accumulated
normal | ||||||
2 | contributions made by the participant under Section | ||||||
3 | 15-113.6 and Section
15-113.7 plus 1.4 times all other | ||||||
4 | accumulated normal contributions made by
the participant; | ||||||
5 | and
| ||||||
6 | (iii) the annuity that can be provided on an | ||||||
7 | actuarially equivalent basis
from the entire contribution | ||||||
8 | made by the participant under Section 15-113.3.
| ||||||
9 | With respect to a police officer or firefighter who retires | ||||||
10 | on or after
August 14, 1998, the accumulated normal | ||||||
11 | contributions taken into account under
clauses (i) and (ii) of | ||||||
12 | this Rule 2 shall include the additional normal
contributions | ||||||
13 | made by the police officer or firefighter under Section
| ||||||
14 | 15-157(a).
| ||||||
15 | The amount of a retirement annuity calculated under this | ||||||
16 | Rule 2 shall
be computed solely on the basis of the | ||||||
17 | participant's accumulated normal
contributions, as specified | ||||||
18 | in this Rule and defined in Section 15-116.
Neither an employee | ||||||
19 | or employer contribution for early retirement under
Section | ||||||
20 | 15-136.2 nor any other employer contribution shall be used in | ||||||
21 | the
calculation of the amount of a retirement annuity under | ||||||
22 | this Rule 2.
| ||||||
23 | This amendatory Act of the 91st General Assembly is a | ||||||
24 | clarification of
existing law and applies to every participant | ||||||
25 | and annuitant without regard to
whether status as an employee | ||||||
26 | terminates before the effective date of this
amendatory Act.
| ||||||
27 | Rule 3: The retirement annuity of a participant who is | ||||||
28 | employed
at least one-half time during the period on which his | ||||||
29 | or her final rate of
earnings is based, shall be equal to the | ||||||
30 | participant's years of service
not to exceed 30, multiplied by | ||||||
31 | (1) $96 if the participant's final rate
of earnings is less | ||||||
32 | than $3,500, (2) $108 if the final rate of earnings is
at least | ||||||
33 | $3,500 but less than $4,500, (3) $120 if the final rate of | ||||||
34 | earnings
is at least $4,500 but less than $5,500, (4) $132 if | ||||||
35 | the final rate
of earnings is at least $5,500 but less than | ||||||
36 | $6,500, (5)
$144 if the final rate of earnings is at least |
| |||||||
| |||||||
1 | $6,500 but less than
$7,500, (6) $156 if the final rate of | ||||||
2 | earnings is at least $7,500 but less
than $8,500, (7) $168 if | ||||||
3 | the final rate of earnings is at least $8,500 but
less than | ||||||
4 | $9,500, and (8) $180 if the final rate of earnings is $9,500 or
| ||||||
5 | more, except that the annuity for those persons having made an | ||||||
6 | election under
Section 15-154(a-1) shall be calculated and | ||||||
7 | payable under the portable
retirement benefit program pursuant | ||||||
8 | to the provisions of Section 15-136.4.
| ||||||
9 | Rule 4: A participant who is at least age 50 and has 25 or | ||||||
10 | more years of
service as a police officer or firefighter, and a | ||||||
11 | participant who is age 55 or
over and has at least 20 but less | ||||||
12 | than 25 years of service as a police officer
or firefighter, | ||||||
13 | shall be entitled to a retirement annuity of 3%
2 1/4% of the
| ||||||
14 | final rate of earnings for each of the first 10 years of | ||||||
15 | service as a police
officer or firefighter, 2 1/2% for each of | ||||||
16 | the next 10 years of service as a
police officer or | ||||||
17 | firefighter, and 2 3/4% for each year of service as a police
| ||||||
18 | officer or firefighter in excess of 20 . The retirement annuity | ||||||
19 | for all other
service shall be computed under Rule 1.
| ||||||
20 | For purposes of this Rule 4, a participant's service as a | ||||||
21 | firefighter
shall also include the following:
| ||||||
22 | (i) service that is performed while the person is an | ||||||
23 | employee under
subsection (h) of Section 15-107; and
| ||||||
24 | (ii) in the case of an individual who was a | ||||||
25 | participating employee
employed in the fire department of | ||||||
26 | the University of Illinois's
Champaign-Urbana campus | ||||||
27 | immediately prior to the elimination of that fire
| ||||||
28 | department and who immediately after the elimination of | ||||||
29 | that fire department
transferred to another job with the | ||||||
30 | University of Illinois, service performed
as an employee of | ||||||
31 | the University of Illinois in a position other than police
| ||||||
32 | officer or firefighter, from the date of that transfer | ||||||
33 | until the employee's
next termination of service with the | ||||||
34 | University of Illinois.
| ||||||
35 | Rule 5: The retirement annuity of a participant who elected | ||||||
36 | early
retirement under the provisions of Section 15-136.2 and |
| |||||||
| |||||||
1 | who, on or before
February 16, 1995, brought administrative | ||||||
2 | proceedings pursuant to the
administrative rules adopted by the | ||||||
3 | System to challenge the calculation of his
or her retirement | ||||||
4 | annuity shall be the sum of the following, determined from
| ||||||
5 | amounts credited to the participant in accordance with the | ||||||
6 | actuarial tables and
the prescribed rate of interest in effect | ||||||
7 | at the time the retirement annuity
begins:
| ||||||
8 | (i) the normal annuity which can be provided on an | ||||||
9 | actuarially equivalent
basis, by the accumulated normal | ||||||
10 | contributions as of the date the annuity
begins; and
| ||||||
11 | (ii) an annuity from employer contributions of an | ||||||
12 | amount equal to that
which can be provided on an | ||||||
13 | actuarially equivalent basis from the accumulated
normal | ||||||
14 | contributions made by the participant under Section | ||||||
15 | 15-113.6 and Section
15-113.7 plus 1.4 times all other | ||||||
16 | accumulated normal contributions made by the
participant; | ||||||
17 | and
| ||||||
18 | (iii) an annuity which can be provided on an | ||||||
19 | actuarially equivalent basis
from the employee | ||||||
20 | contribution for early retirement under Section 15-136.2, | ||||||
21 | and
an annuity from employer contributions of an amount | ||||||
22 | equal to that which can be
provided on an actuarially | ||||||
23 | equivalent basis from the employee contribution for
early | ||||||
24 | retirement under Section 15-136.2.
| ||||||
25 | In no event shall a retirement annuity under this Rule 5 be | ||||||
26 | lower than the
amount obtained by adding (1) the monthly amount | ||||||
27 | obtained by dividing the
combined employee and employer | ||||||
28 | contributions made under Section 15-136.2 by the
System's | ||||||
29 | annuity factor for the age of the participant at the beginning | ||||||
30 | of the
annuity payment period and (2) the amount equal to the | ||||||
31 | participant's annuity if
calculated under Rule 1, reduced under | ||||||
32 | Section 15-136(b) as if no
contributions had been made under | ||||||
33 | Section 15-136.2.
| ||||||
34 | With respect to a participant who is qualified for a | ||||||
35 | retirement annuity under
this Rule 5 whose retirement annuity | ||||||
36 | began before the effective date of this
amendatory Act of the |
| |||||||
| |||||||
1 | 91st General Assembly, and for whom an employee
contribution | ||||||
2 | was made under Section 15-136.2, the System shall recalculate | ||||||
3 | the
retirement annuity under this Rule 5 and shall pay any | ||||||
4 | additional amounts due
in the manner provided in Section | ||||||
5 | 15-186.1 for benefits mistakenly set too low.
| ||||||
6 | The amount of a retirement annuity calculated under this | ||||||
7 | Rule 5 shall be
computed solely on the basis of those | ||||||
8 | contributions specifically set forth in
this Rule 5. Except as | ||||||
9 | provided in clause (iii) of this Rule 5, neither an
employee | ||||||
10 | nor employer contribution for early retirement under Section | ||||||
11 | 15-136.2,
nor any other employer contribution, shall be used in | ||||||
12 | the calculation of the
amount of a retirement annuity under | ||||||
13 | this Rule 5.
| ||||||
14 | The General Assembly has adopted the changes set forth in | ||||||
15 | Section 25 of this
amendatory Act of the 91st General Assembly | ||||||
16 | in recognition that the decision of
the Appellate Court for the | ||||||
17 | Fourth District in Mattis v. State Universities
Retirement | ||||||
18 | System et al. might be deemed to give some right to the | ||||||
19 | plaintiff in
that case. The changes made by Section 25 of this | ||||||
20 | amendatory Act of the 91st
General Assembly are a legislative | ||||||
21 | implementation of the decision of the
Appellate Court for the | ||||||
22 | Fourth District in Mattis v. State Universities
Retirement | ||||||
23 | System et al. with respect to that plaintiff.
| ||||||
24 | The changes made by Section 25 of this amendatory Act of | ||||||
25 | the 91st General
Assembly apply without regard to whether the | ||||||
26 | person is in service as an
employee on or after its effective | ||||||
27 | date.
| ||||||
28 | (b) The retirement annuity provided under Rules 1 and 3 | ||||||
29 | above shall be
reduced by 1/2 of 1% for each month the | ||||||
30 | participant is under age 60 at the
time of retirement. However, | ||||||
31 | this reduction shall not apply in the following
cases:
| ||||||
32 | (1) For a disabled participant whose disability | ||||||
33 | benefits have been
discontinued because he or she has | ||||||
34 | exhausted eligibility for disability
benefits under clause | ||||||
35 | (6) of Section 15-152;
| ||||||
36 | (2) For a participant who has at least the number of |
| |||||||
| |||||||
1 | years of service
required to retire at any age under | ||||||
2 | subsection (a) of Section 15-135; or
| ||||||
3 | (3) For that portion of a retirement annuity which has | ||||||
4 | been provided on
account of service of the participant | ||||||
5 | during periods when he or she performed
the duties of a | ||||||
6 | police officer or firefighter, if these duties were | ||||||
7 | performed
for at least 5 years immediately preceding the | ||||||
8 | date the retirement annuity
is to begin.
| ||||||
9 | (c) The maximum retirement annuity provided under Rules 1, | ||||||
10 | 2, 4,
and 5
shall be the lesser of (1) the annual limit of | ||||||
11 | benefits as specified in
Section 415 of the Internal Revenue | ||||||
12 | Code of 1986, as such Section may be
amended from time to time | ||||||
13 | and as such benefit limits shall be adjusted by
the | ||||||
14 | Commissioner of Internal Revenue, and (2) 80% of final rate of
| ||||||
15 | earnings.
| ||||||
16 | (d) An annuitant whose status as an employee terminates | ||||||
17 | after August 14,
1969 shall receive automatic increases in his | ||||||
18 | or her retirement annuity as
follows:
| ||||||
19 | Effective January 1 immediately following the date the | ||||||
20 | retirement annuity
begins, the annuitant shall receive an | ||||||
21 | increase in his or her monthly
retirement annuity of 0.125% of | ||||||
22 | the monthly retirement annuity provided under
Rule 1, Rule 2, | ||||||
23 | Rule 3, Rule 4, or Rule 5, contained in this
Section, | ||||||
24 | multiplied by
the number of full months which elapsed from the | ||||||
25 | date the retirement annuity
payments began to January 1, 1972, | ||||||
26 | plus 0.1667% of such annuity, multiplied by
the number of full | ||||||
27 | months which elapsed from January 1, 1972, or the date the
| ||||||
28 | retirement annuity payments began, whichever is later, to | ||||||
29 | January 1, 1978, plus
0.25% of such annuity multiplied by the | ||||||
30 | number of full months which elapsed
from January 1, 1978, or | ||||||
31 | the date the retirement annuity payments began,
whichever is | ||||||
32 | later, to the effective date of the increase.
| ||||||
33 | The annuitant shall receive an increase in his or her | ||||||
34 | monthly retirement
annuity on each January 1 thereafter during | ||||||
35 | the annuitant's life of 3% of
the monthly annuity provided | ||||||
36 | under Rule 1, Rule 2, Rule 3, Rule 4, or
Rule 5 contained
in |
| |||||||
| |||||||
1 | this Section. The change made under this subsection by P.A. | ||||||
2 | 81-970 is
effective January 1, 1980 and applies to each | ||||||
3 | annuitant whose status as
an employee terminates before or | ||||||
4 | after that date.
| ||||||
5 | Beginning January 1, 1990, all automatic annual increases | ||||||
6 | payable under
this Section shall be calculated as a percentage | ||||||
7 | of the total annuity
payable at the time of the increase, | ||||||
8 | including all increases previously
granted under this Article.
| ||||||
9 | The change made in this subsection by P.A. 85-1008 is | ||||||
10 | effective January
26, 1988, and is applicable without regard to | ||||||
11 | whether status as an employee
terminated before that date.
| ||||||
12 | (e) If, on January 1, 1987, or the date the retirement | ||||||
13 | annuity payment
period begins, whichever is later, the sum of | ||||||
14 | the retirement annuity
provided under Rule 1 or Rule 2 of this | ||||||
15 | Section
and the automatic annual increases provided under the | ||||||
16 | preceding subsection
or Section 15-136.1, amounts to less than | ||||||
17 | the retirement
annuity which would be provided by Rule 3, the | ||||||
18 | retirement
annuity shall be increased as of January 1, 1987, or | ||||||
19 | the date the
retirement annuity payment period begins, | ||||||
20 | whichever is later, to the amount
which would be provided by | ||||||
21 | Rule 3 of this Section. Such increased
amount shall be | ||||||
22 | considered as the retirement annuity in determining
benefits | ||||||
23 | provided under other Sections of this Article. This paragraph
| ||||||
24 | applies without regard to whether status as an employee | ||||||
25 | terminated before the
effective date of this amendatory Act of | ||||||
26 | 1987, provided that the annuitant was
employed at least | ||||||
27 | one-half time during the period on which the final rate of
| ||||||
28 | earnings was based.
| ||||||
29 | (f) A participant is entitled to such additional annuity as | ||||||
30 | may be provided
on an actuarially equivalent basis, by any | ||||||
31 | accumulated
additional contributions to his or her credit. | ||||||
32 | However,
the additional contributions made by the participant | ||||||
33 | toward the automatic
increases in annuity provided under this | ||||||
34 | Section shall not be taken into
account in determining the | ||||||
35 | amount of such additional annuity.
| ||||||
36 | (g) If, (1) by law, a function of a governmental unit, as |
| |||||||
| |||||||
1 | defined by Section
20-107 of this Code, is transferred in whole | ||||||
2 | or in part to an employer, and (2)
a participant transfers | ||||||
3 | employment from such governmental unit to such employer
within | ||||||
4 | 6 months after the transfer of the function, and (3) the sum of | ||||||
5 | (A) the
annuity payable to the participant under Rule 1, 2, or | ||||||
6 | 3 of this Section (B)
all proportional annuities payable to the | ||||||
7 | participant by all other retirement
systems covered by Article | ||||||
8 | 20, and (C) the initial primary insurance amount to
which the | ||||||
9 | participant is entitled under the Social Security Act, is less | ||||||
10 | than
the retirement annuity which would have been payable if | ||||||
11 | all of the
participant's pension credits validated under | ||||||
12 | Section 20-109 had been validated
under this system, a | ||||||
13 | supplemental annuity equal to the difference in such
amounts | ||||||
14 | shall be payable to the participant.
| ||||||
15 | (h) On January 1, 1981, an annuitant who was receiving
a | ||||||
16 | retirement annuity on or before January 1, 1971 shall have his | ||||||
17 | or her
retirement annuity then being paid increased $1 per | ||||||
18 | month for
each year of creditable service. On January 1, 1982, | ||||||
19 | an annuitant whose
retirement annuity began on or before | ||||||
20 | January 1, 1977, shall have his or her
retirement annuity then | ||||||
21 | being paid increased $1 per month for each year of
creditable | ||||||
22 | service.
| ||||||
23 | (i) On January 1, 1987, any annuitant whose retirement | ||||||
24 | annuity began on or
before January 1, 1977, shall have the | ||||||
25 | monthly retirement annuity increased by
an amount equal to 8ยข | ||||||
26 | per year of creditable service times the number of years
that | ||||||
27 | have elapsed since the annuity began.
| ||||||
28 | (Source: P.A. 92-16, eff. 6-28-01; 93-347, eff. 7-24-03.)
| ||||||
29 | (40 ILCS 5/15-157) (from Ch. 108 1/2, par. 15-157)
| ||||||
30 | Sec. 15-157. Employee Contributions.
| ||||||
31 | (a) Each participating employee shall make contributions | ||||||
32 | towards the
retirement benefits payable under the retirement | ||||||
33 | program applicable to the
employee from each payment
of | ||||||
34 | earnings applicable to employment under this system on and | ||||||
35 | after the
date of becoming a participant as follows: Prior to |
| |||||||
| |||||||
1 | September 1, 1949,
3 1/2% of earnings; from September 1, 1949 | ||||||
2 | to August 31, 1955, 5%; from
September 1, 1955 to August 31, | ||||||
3 | 1969, 6%; from September 1, 1969, 6 1/2%.
These contributions | ||||||
4 | are to be considered as normal contributions for purposes
of | ||||||
5 | this Article.
| ||||||
6 | Each participant who is a police officer or firefighter | ||||||
7 | shall make normal
contributions of 8% through December 31, | ||||||
8 | 2004, 9% in 2005, 10% in 2006, and
11% in 2007 and thereafter,
| ||||||
9 | of each payment of earnings applicable to
employment as a
| ||||||
10 | police officer or firefighter under this system on or after | ||||||
11 | September 1, 1981,
unless he or she files with the board within | ||||||
12 | 60 days after the effective date
of this amendatory Act of 1991 | ||||||
13 | or 60 days after the board receives notice that
he or she is | ||||||
14 | employed as a police officer or firefighter, whichever is | ||||||
15 | later,
a written notice waiving the retirement formula provided | ||||||
16 | by Rule 4 of Section
15-136. This waiver shall be irrevocable. | ||||||
17 | If a participant had met the
conditions set forth in Section | ||||||
18 | 15-132.1 prior to the effective date of this
amendatory Act of | ||||||
19 | 1991 but failed to make the additional normal contributions
| ||||||
20 | required by this paragraph, he or she may elect to pay the | ||||||
21 | additional
contributions plus compound interest at the | ||||||
22 | effective rate. If such payment
is received by the board, the | ||||||
23 | service shall be considered as police officer
service in | ||||||
24 | calculating the retirement annuity under Rule 4 of Section | ||||||
25 | 15-136.
While performing service described in clause (i) or | ||||||
26 | (ii) of Rule 4 of Section
15-136, a participating employee | ||||||
27 | shall be deemed to be employed as a
firefighter for the purpose | ||||||
28 | of determining the rate of employee contributions
under this | ||||||
29 | Section.
| ||||||
30 | (b) Starting September 1, 1969, each participating | ||||||
31 | employee shall make
additional contributions of 1/2 of 1% of | ||||||
32 | earnings to finance a portion
of the cost of the annual | ||||||
33 | increases in retirement annuity provided under
Section 15-136, | ||||||
34 | except that with respect to participants in the
self-managed | ||||||
35 | plan this additional contribution shall be used to finance the
| ||||||
36 | benefits obtained under that retirement program.
|
| |||||||
| |||||||
1 | (c) In addition to the amounts described in subsections (a) | ||||||
2 | and (b) of this
Section, each participating employee shall make | ||||||
3 | contributions of 1% of earnings
applicable under this system on | ||||||
4 | and after August 1, 1959. The contributions
made under this | ||||||
5 | subsection (c) shall be considered as survivor's insurance
| ||||||
6 | contributions for purposes of this Article if the employee is | ||||||
7 | covered under
the traditional benefit package, and such | ||||||
8 | contributions shall be considered
as additional contributions | ||||||
9 | for purposes of this Article if the employee is
participating | ||||||
10 | in the self-managed plan or has elected to participate in the
| ||||||
11 | portable benefit package and has completed the applicable | ||||||
12 | one-year waiting
period. Contributions in excess of $80 during | ||||||
13 | any fiscal year beginning before
August 31, 1969 and in excess | ||||||
14 | of $120 during any fiscal year thereafter until
September 1, | ||||||
15 | 1971 shall be considered as additional contributions for | ||||||
16 | purposes
of this Article.
| ||||||
17 | (d) If the board by board rule so permits and subject to | ||||||
18 | such conditions
and limitations as may be specified in its | ||||||
19 | rules, a participant may make
other additional contributions of | ||||||
20 | such percentage of earnings or amounts as
the participant shall | ||||||
21 | elect in a written notice thereof received by the board.
| ||||||
22 | (e) That fraction of a participant's total accumulated | ||||||
23 | normal
contributions, the numerator of which is equal to the | ||||||
24 | number of years of
service in excess of that which is required | ||||||
25 | to qualify for the maximum
retirement annuity, and the | ||||||
26 | denominator of which is equal to the total
service of the | ||||||
27 | participant, shall be considered as accumulated additional
| ||||||
28 | contributions. The determination of the applicable maximum | ||||||
29 | annuity and
the adjustment in contributions required by this | ||||||
30 | provision shall be made
as of the date of the participant's | ||||||
31 | retirement.
| ||||||
32 | (f) Notwithstanding the foregoing, a participating | ||||||
33 | employee shall not
be required to make contributions under this | ||||||
34 | Section after the date upon
which continuance of such | ||||||
35 | contributions would otherwise cause his or her
retirement | ||||||
36 | annuity to exceed the maximum retirement annuity as specified |
| |||||||
| |||||||
1 | in
clause (1) of subsection (c) of Section 15-136.
| ||||||
2 | (g) A participating employee may make contributions for the | ||||||
3 | purchase of
service credit under this Article.
| ||||||
4 | (Source: P.A. 90-32, eff. 6-27-97; 90-65, eff. 7-7-97; 90-448, | ||||||
5 | eff. 8-16-97;
90-511, eff. 8-22-97; 90-576, eff. 3-31-98; | ||||||
6 | 90-655, eff. 7-30-98; 90-766, eff.
8-14-98.)
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7 | Section 99. Effective date. This Act takes effect upon | ||||||
8 | becoming law.
|