103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB2915

 

Introduced 1/26/2024, by Sen. Karina Villa

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/7-158  from Ch. 108 1/2, par. 7-158
40 ILCS 5/7-164  from Ch. 108 1/2, par. 7-164
40 ILCS 5/7-172  from Ch. 108 1/2, par. 7-172
40 ILCS 5/7-205  from Ch. 108 1/2, par. 7-205
40 ILCS 5/7-206  from Ch. 108 1/2, par. 7-206

    Amends the Illinois Municipal Retirement Fund (IMRF) Article of the Illinois Pension Code. Increases, except for persons who first retired prior to the effective date of the amendatory Act, the amount of the death benefit from $3,000 to $8,000. Makes conforming changes. Amends the State Mandates Act to require implementation without reimbursement. Effective January 1, 2025.


LRB103 36207 RPS 66300 b

STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT
MAY APPLY

 

 

A BILL FOR

 

SB2915LRB103 36207 RPS 66300 b

1    AN ACT concerning public employee benefits.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Pension Code is amended by
5changing Sections 7-158, 7-164, 7-172, 7-205, and 7-206 as
6follows:
 
7    (40 ILCS 5/7-158)  (from Ch. 108 1/2, par. 7-158)
8    Sec. 7-158. Surviving spouse annuities - Options. In lieu
9of the surviving spouse annuity an eligible surviving spouse
10shall have the option of receiving other benefits as follows:
11    1. The surviving spouse of a participating employee may
12elect to receive either a single sum death benefit or a
13surviving spouse annuity and the $8,000 ($3,000 for those who
14first retired prior to the effective date of this amendatory
15Act of the 103rd General Assembly) $3,000 death benefit
16provided in Sections 7-163 and 7-164.
17    2. The surviving spouse of an employee, who has separated
18from service and would have been entitled to a retirement
19annuity on date of death, may elect to receive either a single
20sum death benefit or a surviving spouse annuity and the $8,000
21($3,000 for those who first retired prior to the effective
22date of this amendatory Act of the 103rd General Assembly)
23$3,000 death benefit provided in Sections 7-163 and 7-164.

 

 

SB2915- 2 -LRB103 36207 RPS 66300 b

1    3. If any surviving spouse annuity is payable prior to the
2earliest age at which the recipient will become eligible for a
3widows' or widowers' insurance benefit under the Federal
4Social Security Act, the recipient may elect that the annuity
5payments from this fund shall exceed those payable after
6attaining such age by an amount not in excess of the estimated
7Social Security Benefit, determined as of the effective date
8of the surviving spouse annuity, provided that in no case
9shall the total annuity payments made by this fund exceed in
10actuarial value the annuity which would have been paid had no
11such election been made.
12    4. The surviving spouse of a participating employee, whose
13annuity was suspended upon return to employment and who had
14one year or more of service after his return, may apply the
15additional service credits to a supplemental surviving spouse
16annuity and receive the $8,000 ($3,000 for those who first
17retired prior to the effective date of this amendatory Act of
18the 103rd General Assembly) $3,000 death benefit or apply the
19additional service credits to a single sum death benefit and
20forego the $8,000 ($3,000 for those who first retired prior to
21the effective date of this amendatory Act of the 103rd General
22Assembly) $3,000 death benefit payable upon the death of an
23annuitant.
24    5. The surviving spouse of a participating employee, whose
25annuity was suspended upon return to employment and who had
26less than one year of service after his return, shall have the

 

 

SB2915- 3 -LRB103 36207 RPS 66300 b

1additional service credits applied towards a supplemental
2surviving spouse annuity and shall receive the $8,000 ($3,000
3for those who first retired prior to the effective date of this
4amendatory Act of the 103rd General Assembly) $3,000 death
5benefit.
6(Source: P.A. 85-941.)
 
7    (40 ILCS 5/7-164)  (from Ch. 108 1/2, par. 7-164)
8    Sec. 7-164. Death benefits - Amount. The amount of the
9death benefit shall be:
10    1. Upon the death of an employee with at least one year of
11service occurring while in an employment relationship
12(including employees drawing disability benefits) with a
13participating municipality or participating instrumentality,
14an amount equal to the sum of:
15        (a) The employee's normal, additional and survivor
16    credits, including interest credited thereto through the
17    end of the preceding calendar year, but excluding credits
18    and interest thereon allowed for periods of disability.
19        (b) An amount equal to the employee's annual final
20    rate of earnings. An employee who dies as a result of
21    injuries connected with his duties shall be considered to
22    have a year of service for purposes of this benefit.
23    2. Upon the death of an employee with less than 1 year of
24service occurring while in the service of any participating
25municipality or instrumentality, an amount equal to the sum of

 

 

SB2915- 4 -LRB103 36207 RPS 66300 b

1his accumulated normal, additional and survivor credits on the
2date of death, excluding those credits and interest thereon
3allowed during periods of disability.
4    3. Upon the death of an employee who has separated from
5service and was not entitled to a retirement annuity on the
6date of death, an amount equal to the sum of his accumulated
7normal, survivor and additional credits on the date of death
8excluding those credits and interest thereon allowed during
9periods of disability.
10    4. Upon the death of an employee in an employment
11relationship, or an employee who has service and was entitled
12to a retirement annuity on the date of death, when a surviving
13spouse or child annuity is awarded, $8,000 ($3,000 for those
14who first retired prior to the effective date of this
15amendatory Act of the 103rd General Assembly) $3,000.
16    5. Upon the death of an employee, who has separated from
17service and was entitled to a retirement annuity on the date of
18death, and no surviving spouse or child annuity is awarded,
19$8,000 ($3,000 for those who first retired prior to the
20effective date of this amendatory Act of the 103rd General
21Assembly) $3,000 plus an amount equal to his accumulated
22normal, survivor and additional credits on the date of death,
23excluding those credits and interest earned thereon allowed
24during periods of disability.
25    6. Upon the death of an employee annuitant, $8,000 ($3,000
26for those who first retired prior to the effective date of this

 

 

SB2915- 5 -LRB103 36207 RPS 66300 b

1amendatory Act of the 103rd General Assembly) $3,000 and,
2unless a surviving spouse, child or reversionary annuity is
3payable, the sum of (i) the excess of the normal and survivor
4credits, excluding those allowed during periods of disability,
5which the annuitant had as of the effective date of his annuity
6over the total annuities paid pursuant to paragraph (a) 1 of
7Section 7-142 to the date of death, plus (ii) the excess of the
8additional credits, excluding any such credits used to create
9a reversionary annuity, used to provide the annuity granted
10pursuant to paragraph (a) 2 of Section 7-142 over the total
11annuity payments made pursuant thereto to the time of death.
12    7. Upon the death of an annuitant receiving a reversionary
13annuity or of a person designated to receive a reversionary
14annuity prior to the receipt of such annuity the sum of the
15additional credits of the person creating the reversionary
16annuity as of the effective date of his own retirement annuity
17over the reversionary annuity payments, if any, made prior to
18the date of death of such annuitant or person designated to
19receive the reversionary annuity.
20    8. Upon the death of an annuitant receiving a beneficiary
21annuity which was effective before January 1, 1986, the excess
22of the death benefit which was used to provide the annuity,
23over the sum of all annuity payments made to the beneficiary.
24Upon the death of an annuitant receiving a beneficiary annuity
25effective January 1, 1986 or thereafter, the sum of (i) the
26excess of the normal and survivor credits, excluding those

 

 

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1allowed during periods of disability, which the annuitant had
2as of the effective date of his annuity over the total
3annuities paid pursuant to paragraph (c) of Section 7-165, to
4date of death, plus (ii) the excess of the additional credits,
5excluding any such credits used to create a reversionary
6annuity, used to provide the annuity granted pursuant to
7paragraph (d) of Section 7-165 over the total annuity payments
8made pursuant thereto to the time of death.
9    9. Upon the marriage prior to reaching age 55 (except for a
10surviving spouse who remarries after December 31, 2000) or
11death of a person receiving a surviving spouse annuity, unless
12a child annuity is payable, the sum of (i) the excess of the
13normal and survivor credits, excluding those credits and
14interest thereon allowed during periods of disability,
15attributable to the employee at the effective date of the
16annuity or date of death, whichever first occurred, over the
17total of all annuity payments attributable to paragraph (a) 1
18of Section 7-142 made to the employee or surviving spouse plus
19(ii) the excess of the additional credits, excluding any such
20credits used to create a reversionary annuity or used to
21provide the annuity attributable to paragraph (a) 2 of Section
227-142 over the total of such payments.
23    10. Upon the marriage, death or attainment of age 18 of a
24child receiving a child annuity, if no other child annuities
25are payable, the sum of (i) the excess of the normal and
26survivor credits excluding those credits and interest thereon

 

 

SB2915- 7 -LRB103 36207 RPS 66300 b

1allowed during periods of disability, of the employee at the
2effective date of the annuity or date of death, whichever
3first occurred, over the total annuity payments attributable
4to paragraph (a) 1 of Section 7-142 made to the employee,
5surviving spouse and children plus (ii) the excess of the
6additional credits, excluding any such credits used to create
7a reversionary annuity, used to provide the annuity
8attributable to paragraph (a) 2 of Section 7-142 over the
9total annuity payments made to the employee, surviving spouse
10and children, pursuant thereto.
11    11. Upon the death of the participating employee whose
12annuity was suspended upon his return to employment:
13        a. If a surviving spouse or child annuity is awarded,
14    $8,000 ($3,000 for those who first retired prior to the
15    effective date of this amendatory Act of the 103rd General
16    Assembly) $3,000;
17        b. If no surviving spouse or child annuity is awarded
18    and he had less than one year's service upon return,
19    $8,000 ($3,000 for those who first retired prior to the
20    effective date of this amendatory Act of the 103rd General
21    Assembly) $3,000 plus the excess of the normal, survivor
22    and additional credits, including interest thereon, but
23    excluding those allowed during a period of disability, at
24    the effective date of the suspended annuity, plus those
25    allowed after his return, over all annuity payments made
26    to the employee;

 

 

SB2915- 8 -LRB103 36207 RPS 66300 b

1        c. If no surviving spouse or child annuity is awarded
2    and he has one year or more of service upon return, the
3    higher of (a) the payment under subparagraph b of this
4    paragraph or (b) the payment under paragraph 1 of this
5    Section, taking into consideration only the service and
6    credits allowed after his return, plus the excess of the
7    normal, survivor and additional credits, including
8    interest thereon, excluding those allowed during periods
9    of disability, at the effective date of his suspended
10    annuity over all annuity payments made to the employee.
11    12. The $8,000 ($3,000 for those who first retired prior
12to the effective date of this amendatory Act of the 103rd
13General Assembly) $3,000 death benefit provided in paragraphs
144 and 6 shall not be payable to beneficiaries of persons who
15terminated service prior to September 8, 1971, unless the
16payment or agreement for payment provided by Section 7-144.2
17of this Article is made prior to the date of death.
18    13. The increase in certain death benefits from $1,000 to
19$3,000 provided by this amendatory Act of 1987 shall apply
20only to deaths occurring on or after January 1, 1988.
21    14. The increase in certain death benefits from $3,000 to
22$8,000 provided by this amendatory Act of the 103rd General
23Assembly shall apply only to deaths occurring on or after
24January 1, 2025.
25(Source: P.A. 91-887, eff. 7-6-00.)
 

 

 

SB2915- 9 -LRB103 36207 RPS 66300 b

1    (40 ILCS 5/7-172)  (from Ch. 108 1/2, par. 7-172)
2    Sec. 7-172. Contributions by participating municipalities
3and participating instrumentalities.
4    (a) Each participating municipality and each participating
5instrumentality shall make payment to the fund as follows:
6        1. municipality contributions in an amount determined
7    by applying the municipality contribution rate to each
8    payment of earnings paid to each of its participating
9    employees;
10        2. an amount equal to the employee contributions
11    provided by paragraph (a) of Section 7-173, whether or not
12    the employee contributions are withheld as permitted by
13    that Section;
14        3. all accounts receivable, together with interest
15    charged thereon, as provided in Section 7-209, and any
16    amounts due under subsection (a-5) of Section 7-144;
17        4. if it has no participating employees with current
18    earnings, an amount payable which, over a closed period of
19    20 years for participating municipalities and 10 years for
20    participating instrumentalities, will amortize, at the
21    effective rate for that year, any unfunded obligation. The
22    unfunded obligation shall be computed as provided in
23    paragraph 2 of subsection (b);
24        5. if it has fewer than 7 participating employees or a
25    negative balance in its municipality reserve, the greater
26    of (A) an amount payable that, over a period of 20 years,

 

 

SB2915- 10 -LRB103 36207 RPS 66300 b

1    will amortize at the effective rate for that year any
2    unfunded obligation, computed as provided in paragraph 2
3    of subsection (b) or (B) the amount required by paragraph
4    1 of this subsection (a).
5    (b) A separate municipality contribution rate shall be
6determined for each calendar year for all participating
7municipalities together with all instrumentalities thereof.
8The municipality contribution rate shall be determined for
9participating instrumentalities as if they were participating
10municipalities. The municipality contribution rate shall be
11the sum of the following percentages:
12        1. The percentage of earnings of all the participating
13    employees of all participating municipalities and
14    participating instrumentalities which, if paid over the
15    entire period of their service, will be sufficient when
16    combined with all employee contributions available for the
17    payment of benefits, to provide all annuities for
18    participating employees, and the $8,000 ($3,000 for those
19    who first retired prior to the effective date of this
20    amendatory Act of the 103rd General Assembly) $3,000 death
21    benefit payable under Sections 7-158 and 7-164, such
22    percentage to be known as the normal cost rate.
23        2. The percentage of earnings of the participating
24    employees of each participating municipality and
25    participating instrumentalities necessary to adjust for
26    the difference between the present value of all benefits,

 

 

SB2915- 11 -LRB103 36207 RPS 66300 b

1    excluding temporary and total and permanent disability and
2    death benefits, to be provided for its participating
3    employees and the sum of its accumulated municipality
4    contributions and the accumulated employee contributions
5    and the present value of expected future employee and
6    municipality contributions pursuant to subparagraph 1 of
7    this paragraph (b). This adjustment shall be spread over a
8    period determined by the Board, not to exceed 30 years for
9    participating municipalities or 10 years for participating
10    instrumentalities.
11        3. The percentage of earnings of the participating
12    employees of all municipalities and participating
13    instrumentalities necessary to provide the present value
14    of all temporary and total and permanent disability
15    benefits granted during the most recent year for which
16    information is available.
17        4. The percentage of earnings of the participating
18    employees of all participating municipalities and
19    participating instrumentalities necessary to provide the
20    present value of the net single sum death benefits
21    expected to become payable from the reserve established
22    under Section 7-206 during the year for which this rate is
23    fixed.
24        5. The percentage of earnings necessary to meet any
25    deficiency arising in the Terminated Municipality Reserve.
26    (c) A separate municipality contribution rate shall be

 

 

SB2915- 12 -LRB103 36207 RPS 66300 b

1computed for each participating municipality or participating
2instrumentality for its sheriff's law enforcement employees.
3    A separate municipality contribution rate shall be
4computed for the sheriff's law enforcement employees of each
5forest preserve district that elects to have such employees.
6For the period from January 1, 1986 to December 31, 1986, such
7rate shall be the forest preserve district's regular rate plus
82%.
9    In the event that the Board determines that there is an
10actuarial deficiency in the account of any municipality with
11respect to a person who has elected to participate in the Fund
12under Section 3-109.1 of this Code, the Board may adjust the
13municipality's contribution rate so as to make up that
14deficiency over such reasonable period of time as the Board
15may determine.
16    (d) The Board may establish a separate municipality
17contribution rate for all employees who are program
18participants employed under the federal Comprehensive
19Employment Training Act by all of the participating
20municipalities and instrumentalities. The Board may also
21provide that, in lieu of a separate municipality rate for
22these employees, a portion of the municipality contributions
23for such program participants shall be refunded or an extra
24charge assessed so that the amount of municipality
25contributions retained or received by the fund for all CETA
26program participants shall be an amount equal to that which

 

 

SB2915- 13 -LRB103 36207 RPS 66300 b

1would be provided by the separate municipality contribution
2rate for all such program participants. Refunds shall be made
3to prime sponsors of programs upon submission of a claim
4therefor and extra charges shall be assessed to participating
5municipalities and instrumentalities. In establishing the
6municipality contribution rate as provided in paragraph (b) of
7this Section, the use of a separate municipality contribution
8rate for program participants or the refund of a portion of the
9municipality contributions, as the case may be, may be
10considered.
11    (e) Computations of municipality contribution rates for
12the following calendar year shall be made prior to the
13beginning of each year, from the information available at the
14time the computations are made, and on the assumption that the
15employees in each participating municipality or participating
16instrumentality at such time will continue in service until
17the end of such calendar year at their respective rates of
18earnings at such time.
19    (f) Any municipality which is the recipient of State
20allocations representing that municipality's contributions for
21retirement annuity purposes on behalf of its employees as
22provided in Section 12-21.16 of the Illinois Public Aid Code
23shall pay the allocations so received to the Board for such
24purpose. Estimates of State allocations to be received during
25any taxable year shall be considered in the determination of
26the municipality's tax rate for that year under Section 7-171.

 

 

SB2915- 14 -LRB103 36207 RPS 66300 b

1If a special tax is levied under Section 7-171, none of the
2proceeds may be used to reimburse the municipality for the
3amount of State allocations received and paid to the Board.
4Any multiple-county or consolidated health department which
5receives contributions from a county under Section 11.2 of "An
6Act in relation to establishment and maintenance of county and
7multiple-county health departments", approved July 9, 1943, as
8amended, or distributions under Section 3 of the Department of
9Public Health Act, shall use these only for municipality
10contributions by the health department.
11    (g) Municipality contributions for the several purposes
12specified shall, for township treasurers and employees in the
13offices of the township treasurers who meet the qualifying
14conditions for coverage hereunder, be allocated among the
15several school districts and parts of school districts
16serviced by such treasurers and employees in the proportion
17which the amount of school funds of each district or part of a
18district handled by the treasurer bears to the total amount of
19all school funds handled by the treasurer.
20    From the funds subject to allocation among districts and
21parts of districts pursuant to the School Code, the trustees
22shall withhold the proportionate share of the liability for
23municipality contributions imposed upon such districts by this
24Section, in respect to such township treasurers and employees
25and remit the same to the Board.
26    The municipality contribution rate for an educational

 

 

SB2915- 15 -LRB103 36207 RPS 66300 b

1service center shall initially be the same rate for each year
2as the regional office of education or school district which
3serves as its administrative agent. When actuarial data become
4available, a separate rate shall be established as provided in
5subparagraph (i) of this Section.
6    The municipality contribution rate for a public agency,
7other than a vocational education cooperative, formed under
8the Intergovernmental Cooperation Act shall initially be the
9average rate for the municipalities which are parties to the
10intergovernmental agreement. When actuarial data become
11available, a separate rate shall be established as provided in
12subparagraph (i) of this Section.
13    (h) Each participating municipality and participating
14instrumentality shall make the contributions in the amounts
15provided in this Section in the manner prescribed from time to
16time by the Board and all such contributions shall be
17obligations of the respective participating municipalities and
18participating instrumentalities to this fund. The failure to
19deduct any employee contributions shall not relieve the
20participating municipality or participating instrumentality of
21its obligation to this fund. Delinquent payments of
22contributions due under this Section may, with interest, be
23recovered by civil action against the participating
24municipalities or participating instrumentalities.
25Municipality contributions, other than the amount necessary
26for employee contributions, for periods of service by

 

 

SB2915- 16 -LRB103 36207 RPS 66300 b

1employees from whose earnings no deductions were made for
2employee contributions to the fund, may be charged to the
3municipality reserve for the municipality or participating
4instrumentality.
5    (i) Contributions by participating instrumentalities shall
6be determined as provided herein except that the percentage
7derived under subparagraph 2 of paragraph (b) of this Section,
8and the amount payable under subparagraph 4 of paragraph (a)
9of this Section, shall be based on an amortization period of 10
10years.
11    (j) Notwithstanding the other provisions of this Section,
12the additional unfunded liability accruing as a result of
13Public Act 94-712 shall be amortized over a period of 30 years
14beginning on January 1 of the second calendar year following
15the calendar year in which Public Act 94-712 takes effect,
16except that the employer may provide for a longer amortization
17period by adopting a resolution or ordinance specifying a
1835-year or 40-year period and submitting a certified copy of
19the ordinance or resolution to the fund no later than June 1 of
20the calendar year following the calendar year in which Public
21Act 94-712 takes effect.
22    (k) If the amount of a participating employee's reported
23earnings for any of the 12-month periods used to determine the
24final rate of earnings exceeds the employee's 12-month
25reported earnings with the same employer for the previous year
26by the greater of 6% or 1.5 times the annual increase in the

 

 

SB2915- 17 -LRB103 36207 RPS 66300 b

1Consumer Price Index-U, as established by the United States
2Department of Labor for the preceding September, the
3participating municipality or participating instrumentality
4that paid those earnings shall pay to the Fund, in addition to
5any other contributions required under this Article, the
6present value of the increase in the pension resulting from
7the portion of the increase in reported earnings that is in
8excess of the greater of 6% or 1.5 times the annual increase in
9the Consumer Price Index-U, as determined by the Fund. This
10present value shall be computed on the basis of the actuarial
11assumptions and tables used in the most recent actuarial
12valuation of the Fund that is available at the time of the
13computation.
14    Whenever it determines that a payment is or may be
15required under this subsection (k), the fund shall calculate
16the amount of the payment and bill the participating
17municipality or participating instrumentality for that amount.
18The bill shall specify the calculations used to determine the
19amount due. If the participating municipality or participating
20instrumentality disputes the amount of the bill, it may,
21within 30 days after receipt of the bill, apply to the fund in
22writing for a recalculation. The application must specify in
23detail the grounds of the dispute. Upon receiving a timely
24application for recalculation, the fund shall review the
25application and, if appropriate, recalculate the amount due.
26The participating municipality and participating

 

 

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1instrumentality contributions required under this subsection
2(k) may be paid in the form of a lump sum within 90 days after
3receipt of the bill. If the participating municipality and
4participating instrumentality contributions are not paid
5within 90 days after receipt of the bill, then interest will be
6charged at a rate equal to the fund's annual actuarially
7assumed rate of return on investment compounded annually from
8the 91st day after receipt of the bill. Payments must be
9concluded within 3 years after receipt of the bill by the
10participating municipality or participating instrumentality.
11    When assessing payment for any amount due under this
12subsection (k), the fund shall exclude earnings increases
13resulting from overload or overtime earnings.
14    When assessing payment for any amount due under this
15subsection (k), the fund shall exclude earnings increases
16resulting from payments for unused vacation time, but only for
17payments for unused vacation time made in the final 3 months of
18the final rate of earnings period.
19    When assessing payment for any amount due under this
20subsection (k), the fund shall also exclude earnings increases
21attributable to standard employment promotions resulting in
22increased responsibility and workload.
23    When assessing payment for any amount due under this
24subsection (k), the fund shall exclude reportable earnings
25increases resulting from periods where the member was paid
26through workers' compensation.

 

 

SB2915- 19 -LRB103 36207 RPS 66300 b

1    This subsection (k) does not apply to earnings increases
2due to amounts paid as required by federal or State law or
3court mandate or to earnings increases due to the
4participating employee returning to the regular number of
5hours worked after having a temporary reduction in the number
6of hours worked.
7    This subsection (k) does not apply to earnings increases
8paid to individuals under contracts or collective bargaining
9agreements entered into, amended, or renewed before January 1,
102012 (the effective date of Public Act 97-609), earnings
11increases paid to members who are 10 years or more from
12retirement eligibility, or earnings increases resulting from
13an increase in the number of hours required to be worked.
14    When assessing payment for any amount due under this
15subsection (k), the fund shall also exclude earnings
16attributable to personnel policies adopted before January 1,
172012 (the effective date of Public Act 97-609) as long as those
18policies are not applicable to employees who begin service on
19or after January 1, 2012 (the effective date of Public Act
2097-609).
21    The change made to this Section by Public Act 100-139 is a
22clarification of existing law and is intended to be
23retroactive to January 1, 2012 (the effective date of Public
24Act 97-609).
25(Source: P.A. 102-849, eff. 5-13-22; 103-464, eff. 8-4-23.)
 

 

 

SB2915- 20 -LRB103 36207 RPS 66300 b

1    (40 ILCS 5/7-205)  (from Ch. 108 1/2, par. 7-205)
2    Sec. 7-205. Reserves for annuities. Appropriate reserves
3shall be created for payment of all annuities granted under
4this Article at the time such annuities are granted and in
5amounts determined to be necessary under actuarial tables
6adopted by the Board upon recommendation of the actuary of the
7fund. All annuities payable shall be charged to the annuity
8reserve.
9    1. Amounts credited to annuity reserves shall be derived
10by transfer of all the employee credits from the appropriate
11employee reserves and by charges to the municipality reserve
12of those municipalities in which the retiring employee has
13accumulated service. If a retiring employee has accumulated
14service in more than one participating municipality or
15participating instrumentality, the municipality charges for
16non-concurrent service shall be calculated as follows:
17        (A) for purposes of calculating the annuity reserve,
18    an annuity will be calculated based on service and
19    adjusted earnings with each employer (without regard to
20    the vesting requirement contained in subsection (a) of
21    Section 7-142); and
22        (B) the difference between the municipality charges
23    for the actual annuity granted and the aggregation of the
24    municipality charges based upon the ratio of each from
25    those calculations to the aggregated total from paragraph
26    (A) of this item 1.

 

 

SB2915- 21 -LRB103 36207 RPS 66300 b

1    Aggregate municipality charges for concurrent service
2shall be prorated based on the employee's earnings. The
3municipality charges for retirement annuities calculated under
4subparagraph a. of paragraph 1. of subsection (a) of Section
57-142 shall be prorated based on actual contributions.
6    2. Supplemental annuities shall be handled as a separate
7annuity and amounts to be credited to the annuity reserve
8therefor shall be derived in the same manner as a regular
9annuity.
10    3. When a retirement annuity is granted to an employee
11with a spouse eligible for a surviving spouse annuity, there
12shall be credited to the annuity reserve an amount to fund the
13cost of both the retirement and surviving spouse annuity as a
14joint and survivors annuity.
15    4. Beginning January 1, 1989, when a retirement annuity is
16awarded, an amount equal to the present value of the $8,000
17($3,000 for those who first retired prior to the effective
18date of this amendatory Act of the 103rd General Assembly)
19$3,000 death benefit payable upon the death of the annuitant
20shall be transferred to the annuity reserve from the
21appropriate municipality reserves in the same manner as the
22transfer for annuities.
23    5. All annuity reserves shall be revalued annually as of
24December 31. Beginning as of December 31, 1973, adjustment
25required therein by such revaluation shall be charged or
26credited to the earnings and experience variation reserve.

 

 

SB2915- 22 -LRB103 36207 RPS 66300 b

1    6. There shall be credited to the annuity reserve all of
2the payments made by annuitants under Section 7-144.2, plus an
3additional amount from the earnings and experience variation
4reserve to fund the cost of the incremental annuities granted
5to annuitants making these payments.
6    7. As of December 31, 1972, the excess in the annuity
7reserve shall be transferred to the municipality reserves. An
8amount equal to the deficiency in the reserve of participating
9municipalities and participating instrumentalities which have
10no participating employees shall be allocated to their
11reserves. The remainder shall be allocated in amounts
12proportionate to the present value, as of January 1, 1972, of
13annuities of annuitants of the remaining participating
14municipalities and participating instrumentalities.
15(Source: P.A. 97-319, eff. 1-1-12; 97-609, eff. 1-1-12;
1697-813, eff. 7-13-12.)
 
17    (40 ILCS 5/7-206)  (from Ch. 108 1/2, par. 7-206)
18    Sec. 7-206. Death Reserve. All death benefit payments
19shall be charged to the Death Reserve, other than the $8,000
20($3,000 for those who first retired prior to the effective
21date of this amendatory Act of the 103rd General Assembly)
22$3,000 death benefits paid after December 31, 1988 upon the
23death of an annuitant. All contributions for death purposes
24under Section 7-172(b)4 shall be credited to the same reserve.
25Whenever the balance in such reserve at the close of a year

 

 

SB2915- 23 -LRB103 36207 RPS 66300 b

1exceeds 100% of the average annual charges to this account
2during the 3 preceding calendar years, the basic actuarial
3assumptions upon which municipality contribution rates for
4these purposes are based, shall be reviewed and revised in
5such manner as is deemed necessary to reduce such balance.
6(Source: P.A. 89-136, eff. 7-14-95.)
 
7    Section 99. Effective date. This Act takes effect January
81, 2025.