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1 | AN ACT concerning public employee benefits.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Pension Code is amended by changing | ||||||||||||||||||||||||
5 | Section 7-172 as follows:
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6 | (40 ILCS 5/7-172) (from Ch. 108 1/2, par. 7-172)
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7 | Sec. 7-172. Contributions by participating municipalities | ||||||||||||||||||||||||
8 | and
participating instrumentalities.
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9 | (a) Each participating municipality and each participating
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10 | instrumentality shall make payment to the fund as follows:
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11 | 1. municipality contributions in an amount determined | ||||||||||||||||||||||||
12 | by applying
the municipality contribution rate to each | ||||||||||||||||||||||||
13 | payment of earnings paid to
each of its participating | ||||||||||||||||||||||||
14 | employees;
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15 | 2. an amount equal to the employee contributions | ||||||||||||||||||||||||
16 | provided by paragraphs
(a) and (b) of Section 7-173, | ||||||||||||||||||||||||
17 | regardless of whether or not the employee contributions are
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18 | withheld as permitted by that Section;
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19 | 3. all accounts receivable, together with interest | ||||||||||||||||||||||||
20 | charged thereon,
as provided in Section 7-209;
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21 | 4. if it has no participating employees with current | ||||||||||||||||||||||||
22 | earnings, an
amount payable which, over a period of 20 | ||||||||||||||||||||||||
23 | years beginning with the year
following an award of | ||||||||||||||||||||||||
24 | benefit, will amortize, at the effective rate for
that | ||||||||||||||||||||||||
25 | year, any negative balance in its municipality reserve | ||||||||||||||||||||||||
26 | resulting
from the award. This amount when established will | ||||||||||||||||||||||||
27 | be payable as a
separate contribution whether or not it | ||||||||||||||||||||||||
28 | later has participating employees.
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29 | (b) A separate municipality contribution rate shall be | ||||||||||||||||||||||||
30 | determined
for each calendar year for all participating | ||||||||||||||||||||||||
31 | municipalities together
with all instrumentalities thereof. | ||||||||||||||||||||||||
32 | The municipality contribution rate
shall be determined for |
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1 | participating instrumentalities as if they were
participating | ||||||
2 | municipalities. The municipality contribution rate shall
be | ||||||
3 | the sum of the following percentages:
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4 | 1. The percentage of earnings of all the participating | ||||||
5 | employees of all
participating municipalities and | ||||||
6 | participating instrumentalities which, if paid
over the | ||||||
7 | entire period of their service, will be sufficient when | ||||||
8 | combined with
all employee contributions available for the | ||||||
9 | payment of benefits, to provide
all annuities for | ||||||
10 | participating employees, and the $3,000 death benefit
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11 | payable under Sections 7-158 and 7-164, such percentage to | ||||||
12 | be known as the
normal cost rate.
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13 | 2. The percentage of earnings of the participating | ||||||
14 | employees of each
participating municipality and | ||||||
15 | participating instrumentalities necessary
to adjust for | ||||||
16 | the difference between the present value of all benefits,
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17 | excluding temporary and total and permanent disability and | ||||||
18 | death benefits, to
be provided for its participating | ||||||
19 | employees and the sum of its accumulated
municipality | ||||||
20 | contributions and the accumulated employee contributions | ||||||
21 | and the
present value of expected future employee and | ||||||
22 | municipality contributions
pursuant to subparagraph 1 of | ||||||
23 | this paragraph (b). This adjustment shall be
spread over | ||||||
24 | the remainder of the period that is allowable under | ||||||
25 | generally
accepted accounting principles.
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26 | 3. The percentage of earnings of the participating | ||||||
27 | employees of all
municipalities and participating | ||||||
28 | instrumentalities necessary to provide
the present value | ||||||
29 | of all temporary and total and permanent disability
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30 | benefits granted during the most recent year for which | ||||||
31 | information is
available.
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32 | 4. The percentage of earnings of the participating | ||||||
33 | employees of all
participating municipalities and | ||||||
34 | participating instrumentalities
necessary to provide the | ||||||
35 | present value of the net single sum death
benefits expected | ||||||
36 | to become payable from the reserve established under
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1 | Section 7-206 during the year for which this rate is fixed.
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2 | 5. The percentage of earnings necessary to meet any | ||||||
3 | deficiency
arising in the Terminated Municipality Reserve.
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4 | (c) A separate municipality contribution rate shall be | ||||||
5 | computed for
each participating municipality or participating | ||||||
6 | instrumentality
for its sheriff's law enforcement employees.
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7 | A separate municipality contribution rate shall be | ||||||
8 | computed for the
sheriff's law enforcement employees of each | ||||||
9 | forest preserve district that
elects to have such employees. | ||||||
10 | For the period from January 1, 1986 to
December 31, 1986, such | ||||||
11 | rate shall be the forest preserve district's regular
rate plus | ||||||
12 | 2%.
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13 | In the event that the Board determines that there is an | ||||||
14 | actuarial
deficiency in the account of any municipality with | ||||||
15 | respect to a person who
has elected to participate in the Fund | ||||||
16 | under Section 3-109.1 of this Code,
the Board may adjust the | ||||||
17 | municipality's contribution rate so as to make up
that | ||||||
18 | deficiency over such reasonable period of time as the Board may | ||||||
19 | determine.
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20 | (d) The Board may establish a separate municipality | ||||||
21 | contribution
rate for all employees who are program | ||||||
22 | participants employed under the
federal Comprehensive | ||||||
23 | Employment Training Act by all of the
participating | ||||||
24 | municipalities and instrumentalities. The Board may also
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25 | provide that, in lieu of a separate municipality rate for these
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26 | employees, a portion of the municipality contributions for such | ||||||
27 | program
participants shall be refunded or an extra charge | ||||||
28 | assessed so that the
amount of municipality contributions | ||||||
29 | retained or received by the fund
for all CETA program | ||||||
30 | participants shall be an amount equal to that which
would be | ||||||
31 | provided by the separate municipality contribution rate for all
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32 | such program participants. Refunds shall be made to prime | ||||||
33 | sponsors of
programs upon submission of a claim therefor and | ||||||
34 | extra charges shall be
assessed to participating | ||||||
35 | municipalities and instrumentalities. In
establishing the | ||||||
36 | municipality contribution rate as provided in paragraph
(b) of |
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1 | this Section, the use of a separate municipality contribution
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2 | rate for program participants or the refund of a portion of the
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3 | municipality contributions, as the case may be, may be | ||||||
4 | considered.
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5 | (e) Computations of municipality contribution rates for | ||||||
6 | the
following calendar year shall be made prior to the | ||||||
7 | beginning of each
year, from the information available at the | ||||||
8 | time the computations are
made, and on the assumption that the | ||||||
9 | employees in each participating
municipality or participating | ||||||
10 | instrumentality at such time will continue
in service until the | ||||||
11 | end of such calendar year at their respective rates
of earnings | ||||||
12 | at such time.
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13 | (f) Any municipality which is the recipient of State | ||||||
14 | allocations
representing that municipality's contributions for | ||||||
15 | retirement annuity
purposes on behalf of its employees as | ||||||
16 | provided in Section 12-21.16 of
the Illinois Public Aid Code | ||||||
17 | shall pay the allocations so
received to the Board for such | ||||||
18 | purpose. Estimates of State allocations to
be received during | ||||||
19 | any taxable year shall be considered in the
determination of | ||||||
20 | the municipality's tax rate for that year under Section
7-171. | ||||||
21 | If a special tax is levied under Section 7-171, none of the
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22 | proceeds may be used to reimburse the municipality for the | ||||||
23 | amount of State
allocations received and paid to the Board. Any | ||||||
24 | multiple-county or
consolidated health department which | ||||||
25 | receives contributions from a county
under Section 11.2 of "An | ||||||
26 | Act in relation to establishment and maintenance
of county and | ||||||
27 | multiple-county health departments", approved July 9, 1943,
as | ||||||
28 | amended, or distributions under Section 3 of the Department of | ||||||
29 | Public
Health Act, shall use these only for municipality | ||||||
30 | contributions by the
health department.
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31 | (g) Municipality contributions for the several purposes | ||||||
32 | specified
shall, for township treasurers and employees in the | ||||||
33 | offices of the
township treasurers who meet the qualifying | ||||||
34 | conditions for coverage
hereunder, be allocated among the | ||||||
35 | several school districts and parts of
school districts serviced | ||||||
36 | by such treasurers and employees in the
proportion which the |
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1 | amount of school funds of each district or part of
a district | ||||||
2 | handled by the treasurer bears to the total amount of all
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3 | school funds handled by the treasurer.
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4 | From the funds subject to allocation among districts and | ||||||
5 | parts of
districts pursuant to the School Code, the trustees | ||||||
6 | shall withhold the
proportionate share of the liability for | ||||||
7 | municipality contributions imposed
upon such districts by this | ||||||
8 | Section, in respect to such township treasurers
and employees | ||||||
9 | and remit the same to the Board.
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10 | The municipality contribution rate for an educational | ||||||
11 | service center shall
initially be the same rate for each year | ||||||
12 | as the regional office of
education or school district
which | ||||||
13 | serves as its administrative agent. When actuarial data become
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14 | available, a separate rate shall be established as provided in | ||||||
15 | subparagraph
(i) of this Section.
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16 | The municipality contribution rate for a public agency, | ||||||
17 | other than a
vocational education cooperative, formed under the | ||||||
18 | Intergovernmental
Cooperation Act shall initially be the | ||||||
19 | average rate for the municipalities
which are parties to the | ||||||
20 | intergovernmental agreement. When actuarial data
become | ||||||
21 | available, a separate rate shall be established as provided in
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22 | subparagraph (i) of this Section.
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23 | (h) Each participating municipality and participating
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24 | instrumentality shall make the contributions in the amounts | ||||||
25 | provided in
this Section in the manner prescribed from time to | ||||||
26 | time by the Board and
all such contributions shall be | ||||||
27 | obligations of the respective
participating municipalities and | ||||||
28 | participating instrumentalities to this
fund. The failure to | ||||||
29 | deduct any employee contributions shall not
relieve the | ||||||
30 | participating municipality or participating instrumentality
of | ||||||
31 | its obligation to this fund. Delinquent payments of | ||||||
32 | contributions
due under this Section may, with interest, be | ||||||
33 | recovered by civil action
against the participating | ||||||
34 | municipalities or participating
instrumentalities. | ||||||
35 | Municipality contributions, other than the amount
necessary | ||||||
36 | for employee contributions and Social Security contributions, |
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1 | for
periods of service by employees from whose earnings no | ||||||
2 | deductions were made
for employee contributions to the fund, | ||||||
3 | may be charged to the municipality
reserve for the municipality | ||||||
4 | or participating instrumentality.
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5 | (i) Contributions by participating instrumentalities shall | ||||||
6 | be
determined as provided herein except that the percentage | ||||||
7 | derived under
subparagraph 2 of paragraph (b) of this Section, | ||||||
8 | and the amount payable
under subparagraph 5 of paragraph (a) of | ||||||
9 | this Section, shall be based on
an amortization period of 10 | ||||||
10 | years.
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11 | (Source: P.A. 92-424, eff. 8-17-01.)
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