93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004
HB4948

 

Introduced 2/5/2004, by Robert S. Molaro

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/7-114   from Ch. 108 1/2, par. 7-114
40 ILCS 5/7-118   from Ch. 108 1/2, par. 7-118
40 ILCS 5/7-139   from Ch. 108 1/2, par. 7-139
40 ILCS 5/7-153.1 new
40 ILCS 5/7-170   from Ch. 108 1/2, par. 7-170
40 ILCS 5/7-171   from Ch. 108 1/2, par. 7-171
40 ILCS 5/7-173   from Ch. 108 1/2, par. 7-173
40 ILCS 5/7-205   from Ch. 108 1/2, par. 7-205
40 ILCS 5/7-211   from Ch. 108 1/2, par. 7-211
30 ILCS 805/8.28 new

    Amends the IMRF Article of the Illinois Pension Code. Provides that any moneys received by an elected official from the State of Illinois for service in that capacity shall be deemed earnings unless specifically excluded. Changes the provisions defining and specifying the manner of designating a beneficiary. Removes obsolete language relating to the payment of federal social security contributions to the Fund. Makes a change in the required contribution for transfer of credits to IMRF from a downstate police pension fund for certain police chiefs who participate in IMRF. Provides that an employee whose disability determination or medical examination results are at issue before the Board may request that the portion of the Board meeting or committee hearing concerning the disability determination or medical examination be closed to the public. Provides that if a retiring employee has accumulated nonconcurrent service with more than one participating municipality or participating instrumentality, aggregate municipality charges shall be prorated among all nonfinal employers based on service credit and projected earnings with those employers and, for the final employer, municipality charges shall be based on the remaining cost of the employee's pension. Makes a technical correction. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.


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FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

 

 

A BILL FOR

 

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1     AN ACT concerning public employee benefits.
 
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 7-114, 7-118, 7-139, 7-170, 7-171, 7-173, 7-205, and
6 7-211 and by adding Section 7-153.1 as follows:
 
7     (40 ILCS 5/7-114)  (from Ch. 108 1/2, par. 7-114)
8     Sec. 7-114. Earnings. "Earnings":
9     (a) An amount to be determined by the board, equal to the
10 sum of:
11         1. The total amount of money paid to an employee for
12     personal services or official duties as an employee (except
13     those employed as independent contractors) paid out of the
14     general fund, or out of any special funds controlled by the
15     municipality, or by any instrumentality thereof, or
16     participating instrumentality, including compensation,
17     fees, allowances, or other emolument paid for official
18     duties (but not including automobile maintenance, travel
19     expense, or reimbursements for expenditures incurred in
20     the performance of duties) and, for fee offices, the fees
21     or earnings of the offices to the extent such fees are paid
22     out of funds controlled by the municipality, or
23     instrumentality or participating instrumentality; and
24         2. The money value, as determined by rules prescribed
25     by the governing body of the municipality, or
26     instrumentality thereof, of any board, lodging, fuel,
27     laundry, and other allowances provided an employee in lieu
28     of money.
29     (b) For purposes of determining benefits payable under this
30 fund payments to a person who is engaged in an independently
31 established trade, occupation, profession or business and who
32 is paid for his service on a basis other than a monthly or

 

 

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1 other regular salary, are not earnings.
2     (c) If a disabled participating employee is eligible to
3 receive Workers' Compensation for an accidental injury and the
4 participating municipality or instrumentality which employed
5 the participating employee when injured continues to pay the
6 participating employee regular salary or other compensation or
7 pays the employee an amount in excess of the Workers'
8 Compensation amount, then earnings shall be deemed to be the
9 total payments, including an amount equal to the Workers'
10 Compensation payments. These payments shall be subject to
11 employee contributions and allocated as if paid to the
12 participating employee when the regular payroll amounts would
13 have been paid if the participating employee had continued
14 working, and creditable service shall be awarded for this
15 period.
16     (d) If an elected official who is a participating employee
17 becomes disabled but does not resign and is not removed from
18 office, then earnings shall include all salary payments made
19 for the remainder of that term of office and the official shall
20 be awarded creditable service for the term of office.
21     (e) If a participating employee is paid pursuant to "An Act
22 to provide for the continuation of compensation for law
23 enforcement officers, correctional officers and firemen who
24 suffer disabling injury in the line of duty", approved
25 September 6, 1973, as amended, the payments shall be deemed
26 earnings, and the participating employee shall be awarded
27 creditable service for this period.
28     (f) Additional compensation received by a person while
29 serving as a supervisor of assessments, assessor, deputy
30 assessor or member of a board of review from the State of
31 Illinois pursuant to Section 4-10 or 4-15 of the Property Tax
32 Code shall not be earnings for purposes of this Article and
33 shall not be included in the contribution formula or
34 calculation of benefits for such person pursuant to this
35 Article.
36     (g) Any moneys received by an elected official from the

 

 

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1 State of Illinois for service in that capacity shall be deemed
2 earnings unless specifically excluded in this Code.
3 (Source: P.A. 87-740; 88-670, eff. 12-2-94.)
 
4     (40 ILCS 5/7-118)  (from Ch. 108 1/2, par. 7-118)
5     Sec. 7-118. "Beneficiary". :
6     (a) "Beneficiary" means:
7         (1) Any person or persons, trust, or charity designated
8     as a beneficiary by an employee, former employee who has
9     not yet received a retirement annuity or separation
10     benefit, or employee annuitant. If no designation is on
11     file or no beneficiary so designated survives, the estate
12     of the employee, former employee who has not yet received a
13     retirement annuity or separation benefit, or employee
14     annuitant.
15         (2) Any person or persons, trust, or charity designated
16     as a beneficiary by a beneficiary annuitant or, if no
17     designation is on file or no beneficiary so designated
18     survives, the estate of the beneficiary annuitant. The
19     surviving spouse of an employee or of an employee
20     annuitant, or if no surviving spouse survives, the person
21     or persons designated by a participating employee or
22     employee annuitant, or if no person so designated survives,
23     or if no designation is on file, the estate of the employee
24     or employee annuitant. The person or persons designated by
25     a beneficiary annuitant, or if no person designated
26     survives, or if no designation is on file, the estate of
27     the beneficiary annuitant.
28         (3) The estate of a surviving spouse annuitant where
29     the employee or employee annuitant filed no designation, or
30     no person designated survives at the death of a surviving
31     spouse annuitant.
32     (b) Designations of beneficiaries shall be in writing on
33     forms prescribed by the board and effective upon filing in the
34     fund offices. The designation forms shall provide for
35     contingent beneficiaries. Divorce, dissolution or annulment of

 

 

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1     marriage revokes the designation of an employee's former spouse
2     as a beneficiary on a designation executed before entry of
3     judgment for divorce, dissolution or annulment of marriage.
4     (b) Notwithstanding the foregoing, an employee, former
5 employee who has not yet received a retirement annuity or
6 separation benefit, or employee annuitant may elect to name any
7 person, trust or charity to be the primary beneficiary of any
8 death benefit payable by reason of his death. Such election
9 shall state specifically whether it is his intention to exclude
10 the spouse, shall be in writing, and may be revoked at any
11 time. Such election or revocation shall take effect upon being
12 filed in the fund offices.
13     (c) If a surviving spouse annuity is payable to a former
14 spouse upon the death of an employee annuitant, the former
15 spouse, unless designated by the employee annuitant after
16 dissolution of the marriage, shall not be the beneficiary for
17 the purposes of the $3,000 death benefit payable under
18 subparagraph 6 of Section 7-164. This benefit shall be paid to
19 the designated beneficiary of the employee annuitant or, if
20 there is no designation, then to the estate of the employee
21 annuitant.
22 (Source: P.A. 89-136, eff. 7-14-95; 90-448, eff. 8-16-97.)
 
23     (40 ILCS 5/7-139)  (from Ch. 108 1/2, par. 7-139)
24     Sec. 7-139. Credits and creditable service to employees.
25     (a) Each participating employee shall be granted credits
26 and creditable service, for purposes of determining the amount
27 of any annuity or benefit to which he or a beneficiary is
28 entitled, as follows:
29         1. For prior service: Each participating employee who
30     is an employee of a participating municipality or
31     participating instrumentality on the effective date shall
32     be granted creditable service, but no credits under
33     paragraph 2 of this subsection (a), for periods of prior
34     service for which credit has not been received under any
35     other pension fund or retirement system established under

 

 

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1     this Code, as follows:
2         If the effective date of participation for the
3     participating municipality or participating
4     instrumentality is on or before January 1, 1998, creditable
5     service shall be granted for the entire period of prior
6     service with that employer without any employee
7     contribution.
8         If the effective date of participation for the
9     participating municipality or participating
10     instrumentality is after January 1, 1998, creditable
11     service shall be granted for the last 20% of the period of
12     prior service with that employer, but no more than 5 years,
13     without any employee contribution. A participating
14     employee may establish creditable service for the
15     remainder of the period of prior service with that employer
16     by making an application in writing, accompanied by payment
17     of an employee contribution in an amount determined by the
18     Fund, based on the employee contribution rates in effect at
19     the time of application for the creditable service and the
20     employee's salary rate on the effective date of
21     participation for that employer, plus interest at the
22     effective rate from the date of the prior service to the
23     date of payment. Application for this creditable service
24     may be made at any time while the employee is still in
25     service.
26         Any person who has withdrawn from the service of a
27     participating municipality or participating
28     instrumentality prior to the effective date, who reenters
29     the service of the same municipality or participating
30     instrumentality after the effective date and becomes a
31     participating employee is entitled to creditable service
32     for prior service as otherwise provided in this subdivision
33     (a)(1) only if he or she renders 2 years of service as a
34     participating employee after the effective date.
35     Application for such service must be made while in a
36     participating status. The salary rate to be used in the

 

 

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1     calculation of the required employee contribution, if any,
2     shall be the employee's salary rate at the time of first
3     reentering service with the employer after the employer's
4     effective date of participation.
5         2. For current service, each participating employee
6     shall be credited with:
7             a. Additional credits of amounts equal to each
8         payment of additional contributions received from him
9         under Section 7-173, as of the date the corresponding
10         payment of earnings is payable to him.
11             b. Normal credits of amounts equal to each payment
12         of normal contributions received from him, as of the
13         date the corresponding payment of earnings is payable
14         to him, and normal contributions made for the purpose
15         of establishing out-of-state service credits as
16         permitted under the conditions set forth in paragraph 6
17         of this subsection (a).
18             c. Municipality credits in an amount equal to 1.4
19         times the normal credits, except those established by
20         out-of-state service credits, as of the date of
21         computation of any benefit if these credits would
22         increase the benefit.
23             d. Survivor credits equal to each payment of
24         survivor contributions received from the participating
25         employee as of the date the corresponding payment of
26         earnings is payable, and survivor contributions made
27         for the purpose of establishing out-of-state service
28         credits.
29         3. For periods of temporary and total and permanent
30     disability benefits, each employee receiving disability
31     benefits shall be granted creditable service for the period
32     during which disability benefits are payable. Normal and
33     survivor credits, based upon the rate of earnings applied
34     for disability benefits, shall also be granted if such
35     credits would result in a higher benefit to any such
36     employee or his beneficiary.

 

 

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1         4. For authorized leave of absence without pay: A
2     participating employee shall be granted credits and
3     creditable service for periods of authorized leave of
4     absence without pay under the following conditions:
5             a. An application for credits and creditable
6         service is submitted to the board while the employee is
7         in a status of active employment, and within 2 years
8         after termination of the leave of absence period for
9         which credits and creditable service are sought.
10             b. Not more than 12 complete months of creditable
11         service for authorized leave of absence without pay
12         shall be counted for purposes of determining any
13         benefits payable under this Article.
14             c. Credits and creditable service shall be granted
15         for leave of absence only if such leave is approved by
16         the governing body of the municipality, including
17         approval of the estimated cost thereof to the
18         municipality as determined by the fund, and employee
19         contributions, plus interest at the effective rate
20         applicable for each year from the end of the period of
21         leave to date of payment, have been paid to the fund in
22         accordance with Section 7-173. The contributions shall
23         be computed upon the assumption earnings continued
24         during the period of leave at the rate in effect when
25         the leave began.
26             d. Benefits under the provisions of Sections
27         7-141, 7-146, 7-150 and 7-163 shall become payable to
28         employees on authorized leave of absence, or their
29         designated beneficiary, only if such leave of absence
30         is creditable hereunder, and if the employee has at
31         least one year of creditable service other than the
32         service granted for leave of absence. Any employee
33         contributions due may be deducted from any benefits
34         payable.
35             e. No credits or creditable service shall be
36         allowed for leave of absence without pay during any

 

 

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1         period of prior service.
2         5. For military service: The governing body of a
3     municipality or participating instrumentality may elect to
4     allow creditable service to participating employees who
5     leave their employment to serve in the armed forces of the
6     United States for all periods of such service, provided
7     that the person returns to active employment within 90 days
8     after completion of full time active duty, but no
9     creditable service shall be allowed such person for any
10     period that can be used in the computation of a pension or
11     any other pay or benefit, other than pay for active duty,
12     for service in any branch of the armed forces of the United
13     States. If necessary to the computation of any benefit, the
14     board shall establish municipality credits for
15     participating employees under this paragraph on the
16     assumption that the employee received earnings at the rate
17     received at the time he left the employment to enter the
18     armed forces. A participating employee in the armed forces
19     shall not be considered an employee during such period of
20     service and no additional death and no disability benefits
21     are payable for death or disability during such period.
22         Any participating employee who left his employment
23     with a municipality or participating instrumentality to
24     serve in the armed forces of the United States and who
25     again became a participating employee within 90 days after
26     completion of full time active duty by entering the service
27     of a different municipality or participating
28     instrumentality, which has elected to allow creditable
29     service for periods of military service under the preceding
30     paragraph, shall also be allowed creditable service for his
31     period of military service on the same terms that would
32     apply if he had been employed, before entering military
33     service, by the municipality or instrumentality which
34     employed him after he left the military service and the
35     employer costs arising in relation to such grant of
36     creditable service shall be charged to and paid by that

 

 

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1     municipality or instrumentality.
2         Notwithstanding the foregoing, any participating
3     employee shall be entitled to creditable service as
4     required by any federal law relating to re-employment
5     rights of persons who served in the United States Armed
6     Services. Such creditable service shall be granted upon
7     payment by the member of an amount equal to the employee
8     contributions which would have been required had the
9     employee continued in service at the same rate of earnings
10     during the military leave period, plus interest at the
11     effective rate.
12         5.1. In addition to any creditable service established
13     under paragraph 5 of this subsection (a), creditable
14     service may be granted for up to 24 months of service in
15     the armed forces of the United States.
16         In order to receive creditable service for military
17     service under this paragraph 5.1, a participating employee
18     must (1) apply to the Fund in writing and provide evidence
19     of the military service that is satisfactory to the Board;
20     (2) obtain the written approval of the current employer;
21     and (3) make contributions to the Fund equal to (i) the
22     employee contributions that would have been required had
23     the service been rendered as a member, plus (ii) an amount
24     determined by the board to be equal to the employer's
25     normal cost of the benefits accrued for that military
26     service, plus (iii) interest on items (i) and (ii) from the
27     date of first membership in the Fund to the date of
28     payment. If payment is made during the 6-month period that
29     begins 3 months after the effective date of this amendatory
30     Act of 1997, the required interest shall be at the rate of
31     2.5% per year, compounded annually; otherwise, the
32     required interest shall be calculated at the regular
33     interest rate.
34         6. For out-of-state service: Creditable service shall
35     be granted for service rendered to an out-of-state local
36     governmental body under the following conditions: The

 

 

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1     employee had participated and has irrevocably forfeited
2     all rights to benefits in the out-of-state public employees
3     pension system; the governing body of his participating
4     municipality or instrumentality authorizes the employee to
5     establish such service; the employee has 2 years current
6     service with this municipality or participating
7     instrumentality; the employee makes a payment of
8     contributions, which shall be computed at 8% (normal) plus
9     2% (survivor) times length of service purchased times the
10     average rate of earnings for the first 2 years of service
11     with the municipality or participating instrumentality
12     whose governing body authorizes the service established
13     plus interest at the effective rate on the date such
14     credits are established, payable from the date the employee
15     completes the required 2 years of current service to date
16     of payment. In no case shall more than 120 months of
17     creditable service be granted under this provision.
18         7. For retroactive service: Any employee who could have
19     but did not elect to become a participating employee, or
20     who should have been a participant in the Municipal Public
21     Utilities Annuity and Benefit Fund before that fund was
22     superseded, may receive creditable service for the period
23     of service not to exceed 50 months; however, a current or
24     former elected or appointed official of a participating
25     municipality may establish credit under this paragraph 7
26     for more than 50 months of service as an official of that
27     municipality, if the excess over 50 months is approved by
28     resolution of the governing body of the affected
29     municipality filed with the Fund before January 1, 2002.
30         Any employee who is a participating employee on or
31     after September 24, 1981 and who was excluded from
32     participation by the age restrictions removed by Public Act
33     82-596 may receive creditable service for the period, on or
34     after January 1, 1979, excluded by the age restriction and,
35     in addition, if the governing body of the participating
36     municipality or participating instrumentality elects to

 

 

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1     allow creditable service for all employees excluded by the
2     age restriction prior to January 1, 1979, for service
3     during the period prior to that date excluded by the age
4     restriction. Any employee who was excluded from
5     participation by the age restriction removed by Public Act
6     82-596 and who is not a participating employee on or after
7     September 24, 1981 may receive creditable service for
8     service after January 1, 1979. Creditable service under
9     this paragraph shall be granted upon payment of the
10     employee contributions which would have been required had
11     he participated, with interest at the effective rate for
12     each year from the end of the period of service established
13     to date of payment.
14         8. For accumulated unused sick leave: A participating
15     employee who is applying for a retirement annuity shall be
16     entitled to creditable service for that portion of the
17     employee's accumulated unused sick leave for which payment
18     is not received, as follows:
19             a. Sick leave days shall be limited to those
20         accumulated under a sick leave plan established by a
21         participating municipality or participating
22         instrumentality which is available to all employees or
23         a class of employees.
24             b. Only sick leave days accumulated with a
25         participating municipality or participating
26         instrumentality with which the employee was in service
27         within 60 days of the effective date of his retirement
28         annuity shall be credited; If the employee was in
29         service with more than one employer during this period
30         only the sick leave days with the employer with which
31         the employee has the greatest number of unpaid sick
32         leave days shall be considered.
33             c. The creditable service granted shall be
34         considered solely for the purpose of computing the
35         amount of the retirement annuity and shall not be used
36         to establish any minimum service period required by any

 

 

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1         provision of the Illinois Pension Code, the effective
2         date of the retirement annuity, or the final rate of
3         earnings.
4             d. The creditable service shall be at the rate of
5         1/20 of a month for each full sick day, provided that
6         no more than 12 months may be credited under this
7         subdivision 8.
8             e. Employee contributions shall not be required
9         for creditable service under this subdivision 8.
10             f. Each participating municipality and
11         participating instrumentality with which an employee
12         has service within 60 days of the effective date of his
13         retirement annuity shall certify to the board the
14         number of accumulated unpaid sick leave days credited
15         to the employee at the time of termination of service.
16         9. For service transferred from another system: Except
17     as otherwise provided in paragraph 10, credits and
18     creditable service shall be granted for service under
19     Article 3, 4, 5, 14 or 16 of this Act, to any active member
20     of this Fund, and to any inactive member who has been a
21     county sheriff, upon transfer of such credits pursuant to
22     Section 3-110.3, 4-108.3, 5-235, 14-105.6 or 16-131.4, and
23     payment by the member of the amount by which (1) the
24     employer and employee contributions that would have been
25     required if he had participated in this Fund as a sheriff's
26     law enforcement employee during the period for which credit
27     is being transferred, plus interest thereon at the
28     effective rate for each year, compounded annually, from the
29     date of termination of the service for which credit is
30     being transferred to the date of payment, exceeds (2) the
31     amount actually transferred to the Fund. Such transferred
32     service shall be deemed to be service as a sheriff's law
33     enforcement employee for the purposes of Section 7-142.1.
34         10. For service transferred from Article 3 by persons
35     first joining the Fund on or after the effective date of
36     this amendatory Act of the 93rd General Assembly pursuant

 

 

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1     to an election under Section 3-109.1: Credits and
2     creditable service shall be granted for service under
3     Article 3 of this Code to an active member of this Fund
4     upon transfer of such credits pursuant to Section 3-110.3
5     and payment by the member of the amount by which (1) the
6     present actuarial value of the increase in benefits
7     resulting from the transfer, determined by the Board as of
8     the time of the transfer, exceeds (2) the amount actually
9     transferred to the Fund under Section 3-110.3. The
10     transferred service shall be deemed to be service as a
11     sheriff's law enforcement employee for the purposes of
12     Section 7-142.1.
13     (b) Creditable service - amount:
14         1. One month of creditable service shall be allowed for
15     each month for which a participating employee made
16     contributions as required under Section 7-173, or for which
17     creditable service is otherwise granted hereunder. Not
18     more than 1 month of service shall be credited and counted
19     for 1 calendar month, and not more than 1 year of service
20     shall be credited and counted for any calendar year. A
21     calendar month means a nominal month beginning on the first
22     day thereof, and a calendar year means a year beginning
23     January 1 and ending December 31.
24         2. A seasonal employee shall be given 12 months of
25     creditable service if he renders the number of months of
26     service normally required by the position in a 12-month
27     period and he remains in service for the entire 12-month
28     period. Otherwise a fractional year of service in the
29     number of months of service rendered shall be credited.
30         3. An intermittent employee shall be given creditable
31     service for only those months in which a contribution is
32     made under Section 7-173.
33     (c) No application for correction of credits or creditable
34 service shall be considered unless the board receives an
35 application for correction while (1) the applicant is a
36 participating employee and in active employment with a

 

 

HB4948 - 14 - LRB093 19851 LRD 45594 b

1 participating municipality or instrumentality, or (2) while
2 the applicant is actively participating in a pension fund or
3 retirement system which is a participating system under the
4 Retirement Systems Reciprocal Act. A participating employee or
5 other applicant shall not be entitled to credits or creditable
6 service unless the required employee contributions are made in
7 a lump sum or in installments made in accordance with board
8 rule.
9     (d) Upon the granting of a retirement, surviving spouse or
10 child annuity, a death benefit or a separation benefit, on
11 account of any employee, all individual accumulated credits
12 shall thereupon terminate. Upon the withdrawal of additional
13 contributions, the credits applicable thereto shall thereupon
14 terminate. Terminated credits shall not be applied to increase
15 the benefits any remaining employee would otherwise receive
16 under this Article.
17 (Source: P.A. 91-887, eff. 7-6-00; 92-424, eff. 8-17-01.)
 
18     (40 ILCS 5/7-153.1 new)
19     Sec. 7-153.1. Disability hearings; request for closed
20 meeting. Those portions of meetings of the Board or of Board
21 committees in which matters relating to the determination of
22 disability or the results of medical examinations are to be
23 considered may be closed, but only if the request for a closed
24 meeting is initiated by the participating employee whose
25 disability determination or whose medical examination results
26 are at issue.
 
27     (40 ILCS 5/7-170)  (from Ch. 108 1/2, par. 7-170)
28     Sec. 7-170. Federal Social Security coverage.
29     (a) It is declared to be the policy and purpose of this
30 Section to extend to covered employees as defined in Section
31 7-138, the benefits of the Federal Old Age and Survivors
32 Insurance System as authorized by the Federal Social Security
33 Act and amendments thereto. To effect this, the board shall
34 take such action as may be required by applicable State and

 

 

HB4948 - 15 - LRB093 19851 LRD 45594 b

1 Federal laws or regulations.
2     (b) The board shall execute an agreement with the State
3 Agency to secure coverage of covered employees as provided in
4 paragraph (a) of this section.
5     (c) Each participating municipality and each participating
6 instrumentality shall remit payment of contributions for
7 Social Security purposes on behalf of covered employees and
8 covered municipalities and participating instrumentalities in
9 the manner provided by law as required by the board and the
10 State Agency established by the Social Security Enabling Act.
11     (d) (Blank). Contributions of covered employees to this
12 fund for Federal Social Security purposes shall be paid to the
13 State Agency in such amounts and at such time as are designated
14 by State laws or regulations.
15     (e) (Blank). Contributions in behalf of covered
16 municipalities and participating instrumentalities for Federal
17 Social Security purposes and the required pro rata share of
18 administrative expenses shall be paid to the State Agency from
19 this fund in accordance with applicable State laws and
20 regulations.
21     (f) The board shall maintain such records and submit such
22 reports as may be required by applicable State and Federal laws
23 or regulations.
24 (Source: P.A. 81-793.)
 
25     (40 ILCS 5/7-171)  (from Ch. 108 1/2, par. 7-171)
26     Sec. 7-171. Finance; taxes.
27     (a) Each municipality other than a school district shall
28 appropriate an amount sufficient to provide for the current
29 municipality contributions required by Section 7-172 of this
30 Article, for the fiscal year for which the appropriation is
31 made and all amounts due for municipal contributions for
32 previous years. Those municipalities which have been assessed
33 an annual amount to amortize its unfunded obligation, as
34 provided in subparagraph 4 5 of paragraph (a) of Section 7-172
35 of this Article, shall include in the appropriation an amount

 

 

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1 sufficient to pay the amount assessed. The appropriation shall
2 be based upon an estimate of assets available for municipality
3 contributions and liabilities therefor for the fiscal year for
4 which appropriations are to be made, including funds available
5 from levies for this purpose in prior years.
6     (b) For the purpose of providing monies for municipality
7 contributions, beginning for the year in which a municipality
8 is included in this fund:
9         (1) A municipality other than a school district may
10     levy a tax which shall not exceed the amount appropriated
11     for municipality contributions.
12         (2) A school district may levy a tax in an amount
13     reasonably calculated at the time of the levy to provide
14     for the municipality contributions required under Section
15     7-172 of this Article for the fiscal years for which
16     revenues from the levy will be received and all amounts due
17     for municipal contributions for previous years. Any levy
18     adopted before the effective date of this amendatory Act of
19     1995 by a school district shall be considered valid and
20     authorized to the extent that the amount was reasonably
21     calculated at the time of the levy to provide for the
22     municipality contributions required under Section 7-172
23     for the fiscal years for which revenues from the levy will
24     be received and all amounts due for municipal contributions
25     for previous years. In no event shall a budget adopted by a
26     school district limit a levy of that school district
27     adopted under this Section.
28     (c) Any county which is served by a regional office of
29 education that serves 2 or more counties may include in its
30 appropriation an amount sufficient to provide its
31 proportionate share of the municipality contributions for that
32 regional office of education. The tax levy authorized by this
33 Section may include an amount necessary to provide monies for
34 this contribution.
35     (d) Any county that is a part of a multiple-county health
36 department or consolidated health department which is formed

 

 

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1 under "An Act in relation to the establishment and maintenance
2 of county and multiple-county public health departments",
3 approved July 9, 1943, as amended, and which is a participating
4 instrumentality may include in the county's appropriation an
5 amount sufficient to provide its proportionate share of
6 municipality contributions of the department. The tax levy
7 authorized by this Section may include the amount necessary to
8 provide monies for this contribution.
9     (d-5) A school district participating in a special
10 education joint agreement created under Section 10-22.31 of the
11 School Code that is a participating instrumentality may include
12 in the school district's tax levy under this Section an amount
13 sufficient to provide its proportionate share of the
14 municipality contributions for current and prior service by
15 employees of the participating instrumentality created under
16 the joint agreement.
17     (e) Such tax shall be levied and collected in like manner,
18 with the general taxes of the municipality and shall be in
19 addition to all other taxes which the municipality is now or
20 may hereafter be authorized to levy upon all taxable property
21 therein, and shall be exclusive of and in addition to the
22 amount of tax levied for general purposes under Section 8-3-1
23 of the "Illinois Municipal Code", approved May 29, 1961, as
24 amended, or under any other law or laws which may limit the
25 amount of tax which the municipality may levy for general
26 purposes. The tax may be levied by the governing body of the
27 municipality without being authorized as being additional to
28 all other taxes by a vote of the people of the municipality.
29     (f) The county clerk of the county in which any such
30 municipality is located, in reducing tax levies shall not
31 consider any such tax as a part of the general tax levy for
32 municipality purposes, and shall not include the same in the
33 limitation of any other tax rate which may be extended.
34     (g) The amount of the tax to be levied in any year shall,
35 within the limits herein prescribed, be determined by the
36 governing body of the respective municipality.

 

 

HB4948 - 18 - LRB093 19851 LRD 45594 b

1     (h) The revenue derived from any such tax levy shall be
2 used only for the purposes specified in this Article and, as
3 collected, shall be paid to the treasurer of the municipality
4 levying the tax. Monies received by a county treasurer for use
5 in making contributions to a regional office of education for
6 its municipality contributions shall be held by him for that
7 purpose and paid to the regional office of education in the
8 same manner as other monies appropriated for the expense of the
9 regional office.
10 (Source: P.A. 89-329, eff. 8-17-95; 90-448, eff. 8-16-97;
11 90-511, eff. 8-22-97; 90-655, eff. 7-30-98.)
 
12     (40 ILCS 5/7-173)  (from Ch. 108 1/2, par. 7-173)
13     Sec. 7-173. Contributions by employees.
14     (a) Each participating employee shall make contributions
15 to the fund as follows:
16         1. For retirement annuity purposes, normal
17     contributions of 3 3/4% of earnings.
18         2. Additional contributions of such percentages of
19     each payment of earnings, as shall be elected by the
20     employee for retirement annuity purposes, but not in excess
21     of 10%. The selected rate shall be applicable to all
22     earnings beginning on the first day of the second month
23     following receipt by the Board of written notice of
24     election to make such contributions. Additional
25     contributions at the selected rate shall be made
26     concurrently with normal contributions.
27         3. Survivor contributions, by each participating
28     employee, of 3/4% of each payment of earnings.
29     (b) Each employee shall make contributions to the fund for
30 Federal Social Security taxes, for periods during which he is a
31 covered employee, as required by the Social Security Enabling
32 Act and federal law. For participating employees, such
33 contributions shall be in addition to those required under
34 paragraph (a) of this Section.
35     (c) Contributions shall be deducted from each

 

 

HB4948 - 19 - LRB093 19851 LRD 45594 b

1 corresponding payment of earnings paid to each employee and
2 shall be remitted to the board by the participating
3 municipality or participating instrumentality making such
4 payment. The remittance, together with a report of the earnings
5 and contributions shall be made as directed by the board. For
6 township treasurers and employees of township treasurers
7 qualifying as employees hereunder, the contributions herein
8 required as deductions from salary shall be withheld by the
9 school township trustees from funds available for the payment
10 of the compensation of such treasurers and employees as
11 provided in the School Code and remitted to the board.
12     (d) An employee who has made additional contributions under
13 paragraph (a)2 of this Section may upon retirement or at any
14 time prior thereto, elect to withdraw the total of such
15 additional contributions including interest credited thereon
16 to the end of the preceding calendar year.
17     (e) Failure to make the deductions for employee
18 contributions provided in paragraph (c) of this Section shall
19 not relieve the employee from liability for such contributions.
20 The amount of such liability may be deducted, with interest
21 charged under Section 7-209, from any annuities or benefits
22 payable hereunder to the employee or any other person receiving
23 an annuity or benefit by reason of such employee's
24 participation.
25     (f) A participating employee who has at least 40 years of
26 creditable service in the Fund may elect to cease making the
27 contributions required under this Section. The status of the
28 employee under this Article shall be unaffected by this
29 election, except that the employee shall not receive any
30 additional creditable service for the periods of employment
31 following the election. An election under this subsection
32 relieves the employer from making additional employer
33 contributions in relation to that employee.
34 (Source: P.A. 87-1265.)
 
35     (40 ILCS 5/7-205)  (from Ch. 108 1/2, par. 7-205)

 

 

HB4948 - 20 - LRB093 19851 LRD 45594 b

1     Sec. 7-205. Reserves for annuities. Appropriate reserves
2 shall be created for payment of all annuities granted under
3 this Article at the time such annuities are granted and in
4 amounts determined to be necessary under actuarial tables
5 adopted by the Board upon recommendation of the actuary of the
6 fund. All annuities payable shall be charged to the annuity
7 reserve.
8     1. Amounts credited to annuity reserves shall be derived by
9 transfer of all the employee credits from the appropriate
10 employee reserves and by charges to the municipality reserve of
11 those municipalities in which the retiring employee has
12 accumulated service. If a retiring employee has accumulated
13 service in more than one participating municipality or
14 participating instrumentality, (i) in the case of concurrent
15 service, aggregate municipality charges shall be prorated on a
16 basis of the employee's earnings in case of concurrent service
17 and (ii) in the case of nonconcurrent service, aggregate
18 municipality charges shall be prorated among all nonfinal
19 employers on a basis of service credit and projected earnings
20 with those employers and, for the final employer, municipality
21 charges shall be paid on a basis of the remaining cost of the
22 employee's pension, as determined by the Board. creditable
23 service in other cases.
24     2. Supplemental annuities shall be handled as a separate
25 annuity and amounts to be credited to the annuity reserve
26 therefor shall be derived in the same manner as a regular
27 annuity.
28     3. When a retirement annuity is granted to an employee with
29 a spouse eligible for a surviving spouse annuity, there shall
30 be credited to the annuity reserve an amount to fund the cost
31 of both the retirement and surviving spouse annuity as a joint
32 and survivors annuity.
33     4. Beginning January 1, 1989, when a retirement annuity is
34 awarded, an amount equal to the present value of the $3,000
35 death benefit payable upon the death of the annuitant shall be
36 transferred to the annuity reserve from the appropriate

 

 

HB4948 - 21 - LRB093 19851 LRD 45594 b

1 municipality reserves in the same manner as the transfer for
2 annuities.
3     5. All annuity reserves shall be revalued annually as of
4 December 31. Beginning as of December 31, 1973, adjustment
5 required therein by such revaluation shall be charged or
6 credited to the earnings and experience variation reserve.
7     6. There shall be credited to the annuity reserve all of
8 the payments made by annuitants under Section 7-144.2, plus an
9 additional amount from the earnings and experience variation
10 reserve to fund the cost of the incremental annuities granted
11 to annuitants making these payments.
12     7. As of December 31, 1972, the excess in the annuity
13 reserve shall be transferred to the municipality reserves. An
14 amount equal to the deficiency in the reserve of participating
15 municipalities and participating instrumentalities which have
16 no participating employees shall be allocated to their
17 reserves. The remainder shall be allocated in amounts
18 proportionate to the present value, as of January 1, 1972, of
19 annuities of annuitants of the remaining participating
20 municipalities and participating instrumentalities.
21 (Source: P.A. 89-136, eff. 7-14-95.)
 
22     (40 ILCS 5/7-211)  (from Ch. 108 1/2, par. 7-211)
23     Sec. 7-211. Authorizations.
24     (a) Each participating municipality and instrumentality
25 thereof and each participating instrumentality shall:
26         1. Deduct all normal and additional contributions and
27     contributions for federal Social Security taxes as
28     required by the Social Security Enabling Act from each
29     payment of earnings payable to each participating employee
30     who is entitled to any earnings from such municipality or
31     instrumentality thereof or participating instrumentality,
32     and remit all such normal and additional contributions
33     immediately to the board and all such contributions for
34     federal Social Security taxes in the manner provided by
35     law; and

 

 

HB4948 - 22 - LRB093 19851 LRD 45594 b

1         2. Pay to the board contributions required by this
2     Article.
3     (b) Each participating employee shall, by virtue of the
4 payment of contributions to this fund, receive a vested
5 interest in the annuities and benefits provided in this Article
6 and in consideration of such vested interest shall be deemed to
7 have agreed and authorized the deduction from earnings of all
8 contributions payable to this fund in accordance with this
9 Article.
10     (c) Payment of earnings less the amounts of contributions
11 provided in this Article and in the Social Security Enabling
12 Act shall be a full and complete discharge of all claims for
13 payment for services rendered by any employee during the period
14 covered by any such payment.
15     (d) Any covered annuitant may authorize the withholding of
16 all or a portion of his or her annuity, for the payment of
17 premiums on group accident and health insurance provided
18 pursuant to Section 7-199.1. The annuitant may revoke this
19 authorization at any time.
20 (Source: P.A. 91-887, eff. 7-6-00.)
 
21     Section 90. The State Mandates Act is amended by adding
22 Section 8.28 as follows:
 
23     (30 ILCS 805/8.28 new)
24     Sec. 8.28. Exempt mandate. Notwithstanding Sections 6 and 8
25 of this Act, no reimbursement by the State is required for the
26 implementation of any mandate created by this amendatory Act of
27 the 93rd General Assembly.
 
28     Section 99. Effective date. This Act takes effect upon
29 becoming law.