95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
SB2003


 
Introduced 2/7/2008, by Sen. William R. Haine
 
SYNOPSIS AS INTRODUCED:
 		













40 ILCS 5/7-142.2 new






40 ILCS 5/7-173.3 new






30 ILCS 805/8.32 new










    Amends the Illinois Municipal Retirement Fund Article of the Illinois Pension Code. Provides that, in lieu of the retirement annuity otherwise provided under the Article,  any municipal electrical worker who (i) has 25 or more years of
service in that capacity; (ii) is at least 50 years of age; and (iii) terminates service on or after the effective date of the amendatory Act shall be entitled at his or her option to receive a monthly retirement
annuity for service as a municipal electrical worker computed by
multiplying 3% for each year of such service by his or her annual final rate of
earnings and dividing by 12. Requires a municipal electrical worker who makes the election to make an additional
contribution of 3.5% of earnings. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.
















LRB095 18953 AMC 45118 b

















FISCAL NOTE ACT MAY APPLY


PENSION IMPACT NOTE ACT MAY APPLY


STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT
















 


 


A BILL FOR









 











SB2003

LRB095 18953 AMC 45118 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 adding 
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Sections 7-142.2 and 7-173.3 as follows:
 
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    (40 ILCS 5/7-142.2  new)
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    Sec. 7-142.2. Municipal electrical workers. In lieu of the 
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retirement annuity provided by subparagraph 1 of
paragraph (a) 
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of Section 7-142, any municipal electrical worker who (i) has 
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25 or more years of
service in that capacity; (ii) is at least 
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50 years of age; and (iii) terminates service on or after the 
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effective date of this amendatory Act of the 95th General 
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Assembly shall be entitled at his or her option to receive a 
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monthly retirement
annuity for service as a municipal 
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electrical worker computed by
multiplying 3% for each year of 
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such service by his or her annual final rate of
earnings and 
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dividing by 12.
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    If a municipal electrical worker has service in any other

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capacity, his or her retirement annuity for service as a 
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municipal electrical worker may be computed under this Section 
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and the retirement annuity for
his or her  other service under 
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Section 7-142. 
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    In no case shall the total monthly retirement annuity under 
 


 






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this Section exceed 80% of the
monthly final rate of earnings. 
 
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    (40 ILCS 5/7-173.3  new)
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    Sec. 7-173.3. Additional contribution by municipal 
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electrical workers.
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    (a) Each municipal electrical workers shall make an 
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additional
contribution of 3.5% of earnings. This additional 
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contribution shall be payable for retroactive service periods

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that the employee elects to establish and to periods of 
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authorized leave of
absence.
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    (b) If the employee is awarded a retirement annuity under 
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Section
7-142 and not under Section 7-142.2 of this Code, then 
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the additional contribution required
under this Section shall 
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be refunded with interest or paid as provided in
subsection 
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(c).  If the employee returns to a participating status as a

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municipal electrical worker, the employee may repay the amount 
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refunded
with interest and upon subsequent retirement be 
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entitled to a recomputation of
the retirement annuity under 
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Section 7-142.2 if the total service as a
municipal electrical 
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worker meets the requirements of that Section. 
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    (c) Instead of a refund under subsection (b), the retiring 
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employee may
elect to convert the amount of the refund into an 
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annuity, payable
separately from the retirement annuity.  If the 
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annuitant dies before the
guaranteed amount has been 
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distributed, the remainder shall be paid in a lump
sum to the 
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designated beneficiary of the annuitant.  The Board shall adopt 
 


 






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any
rules necessary for the implementation of this subsection 
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(c). 
 
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    Section 90. The State Mandates Act is amended by adding 
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Section 8.32 as follows:
 
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    (30 ILCS 805/8.32 new)
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    Sec. 8.32. 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 95th General Assembly.
 

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    Section 99. Effective date. This Act takes effect upon 
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becoming law.