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95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008 HB0545
Introduced 2/1/2007, by Rep. Mary E. Flowers SYNOPSIS AS INTRODUCED: |
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40 ILCS 5/9-121.16 |
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40 ILCS 5/9-121.17 new |
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40 ILCS 5/9-121.18 new |
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40 ILCS 5/9-134.2 |
from Ch. 108 1/2, par. 9-134.2 |
40 ILCS 5/9-134.3 |
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40 ILCS 5/9-134.4 |
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30 ILCS 805/8.31 new |
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Amends the Cook County Article of the Illinois Pension Code. Creates an alternative retirement annuity and survivor's benefit for sworn sheriff's personnel. 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 |
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A BILL FOR
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HB0545 |
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LRB095 05284 AMC 25362 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 changing |
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| Sections 9-121.16, 9-134.2, 9-134.3, and 9-134.4 and adding |
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| Sections 9-121.17 and 9-121.18 as follows:
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| (40 ILCS 5/9-121.16)
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| Sec. 9-121.16. Contractual service to the Retirement |
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| Board. A person who
has rendered continuous contractual |
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| services (other than legal or actuarial
services) to
the |
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| Retirement Board for a period of at least 5 years may establish |
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| creditable
service in the Fund for up to 10 years of those |
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| services by making written
application to the Board before July |
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| 1, 2003 and paying to the Fund an amount
to be determined by |
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| the Board, equal to the employee contributions that would
have |
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| been required if those services had been performed as an |
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| employee.
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| For the purposes of calculating the required payment, the |
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| Board may determine
the applicable salary equivalent based on |
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| the compensation received by the
person for performing those |
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| contractual services. The salary equivalent
calculated under |
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| this Section shall not be used for determining final average
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| salary under Section 9-134 or any other provisions of this |
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HB0545 |
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LRB095 05284 AMC 25362 b |
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| Code.
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| A person may not make optional contributions under Section |
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| 9-121.6 , 9-121.17, or
9-179.3 for periods of credit established |
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| under this Section.
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| (Source: P.A. 92-599, eff. 6-28-02.)
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| (40 ILCS 5/9-121.17 new)
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| Sec. 9-121.17. Alternative annuity for sworn sheriff's |
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| personnel. |
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| (a) Any
person employed as sworn sheriff's personnel may |
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| elect to establish
alternative credits for an alternative |
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| annuity by electing in writing to
make additional optional |
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| contributions in accordance with this Section and
procedures |
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| established by the board. Such sworn sheriff's personnel
may |
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| discontinue making the additional optional contributions by |
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| notifying
the Fund in writing in accordance with this Section |
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| and procedures
established by the board.
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| Additional optional contributions for the alternative |
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| annuity shall
be as follows: |
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| (1) For service after the option is elected, an |
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| additional contribution
of 3% of salary shall be |
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| contributed to the Fund on the same basis and
under the |
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| same conditions as contributions required under Sections |
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| 9-170
and 9-176.
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| (2) For service before the option is elected, an |
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| additional
contribution of 3% of the salary for the |
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HB0545 |
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LRB095 05284 AMC 25362 b |
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| applicable period of service, plus
interest at the |
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| effective rate from the date of service to the date of
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| payment. All payments for past service must be paid in full |
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| before credit
is given. No additional optional |
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| contributions may be made for any period
of service for |
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| which credit has been previously forfeited by acceptance of
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| a refund, unless the refund is repaid in full with interest |
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| at the
effective rate from the date of refund to the date |
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| of repayment.
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| (b) In lieu of the retirement annuity otherwise payable |
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| under this
Article, any sworn sheriff's personnel who (1) has
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| elected to make additional optional
contributions in |
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| accordance with this Section, and (2)
has attained age 50 with |
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| at least 10 years of service credit,
or has attained age 55 |
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| with at least 8 years of service credit, may elect
to have his |
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| retirement annuity computed as follows: 3% of the
participant's |
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| salary at the time of termination of service for each of the
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| first 8 years of service credit, plus 4% of such salary for |
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| each of the
next 4 years of service credit, plus
5% of such |
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| salary for each year of service credit in excess of 12 years,
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| subject to a maximum of 80% of such salary. To the extent such |
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| sworn sheriff's personnel has made additional optional |
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| contributions with respect to
only a portion of his or her |
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| years of service credit, his or her retirement annuity will
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| first be determined in accordance with this Section to the |
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| extent such
additional optional contributions were made, and |
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HB0545 |
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LRB095 05284 AMC 25362 b |
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| then in accordance with
the remaining Sections of this Article |
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| to the extent of years of service
credit with respect to which |
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| additional optional contributions were not made. |
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| (c) In lieu of the disability benefits otherwise payable |
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| under this
Article, any sworn sheriff's personnel who (1) has |
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| become
permanently disabled and as a consequence is unable to |
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| perform the duties
of his or her employment and (2) was making |
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| optional contributions in accordance with
this Section at the |
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| time the disability was incurred, may elect to receive
a |
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| disability annuity calculated in
accordance with the formula in |
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| subsection (b). For the purposes of this
subsection, such sworn |
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| sheriff's personnel shall be considered permanently
disabled |
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| only if: (i) disability occurs while in service as sworn |
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| sheriff's personnel and is of such a nature as to prevent him |
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| or her from reasonably
performing the duties of his or her |
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| employment at the time; and (ii) the board has
received a |
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| written certification by at least 2 licensed physicians
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| appointed by it stating that the sworn sheriff's personnel is |
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| disabled and that the
disability is likely to be permanent. |
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| (d) Refunds of additional optional contributions shall be |
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| made on the
same basis and under the same conditions as |
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| provided under Section 9-164,
9-166, and 9-167. Interest shall |
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| be credited at the effective rate on the
same basis and under |
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| the same conditions as for other contributions.
Optional |
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| contributions made by sworn sheriff's personnel shall be |
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| accounted for in a separate Cook County Sworn Sheriff's |
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HB0545 |
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LRB095 05284 AMC 25362 b |
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| Personnel Optional Contribution Reserve. Optional |
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| contributions under this
Section shall be included in the |
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| amount of employee contributions used to
compute the tax levy |
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| under Section 9-169. |
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| (e) The effective date of this plan of optional alternative |
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| benefits
and contributions shall be January 1, 2008, or the |
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| date upon which
approval is received from the U.S. Internal |
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| Revenue Service, whichever is
later. The plan of optional |
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| alternative benefits and contributions shall
not be available |
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| to any former sworn sheriff's personnel receiving an
annuity |
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| from the Fund on the effective date of the plan, unless he
or |
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| she re-enters service as sworn sheriff's personnel and renders |
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| at least 3 years
of additional service after the date of |
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| re-entry.
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| (40 ILCS 5/9-121.18 new)
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| Sec. 9-121.18. Alternative survivor's benefits for |
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| survivors of sworn sheriff's personnel. In lieu of the |
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| survivor's benefits otherwise payable under this
Article, the |
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| spouse or eligible child of any deceased sworn sheriff's |
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| personnel who was either making additional optional |
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| contributions in
accordance with Section 9-121.17 on the date |
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| of death, or was receiving
an annuity calculated under that |
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| Section at the time of death, may elect to
receive an annuity |
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| beginning on the date of death of the sworn sheriff's |
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| personnel, provided that the spouse and sworn sheriff's |
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HB0545 |
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LRB095 05284 AMC 25362 b |
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| personnel must
have been married on the date of the last |
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| termination of his or her service
as sworn sheriff's personnel |
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| and for a continuous period of at least one year
immediately |
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| preceding his or her death. |
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| The annuity shall be payable beginning on the date of death |
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| of the sworn sheriff's personnel if the spouse is then age 50 |
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| or over, or beginning
at age 50 if the age of the spouse is less |
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| than age 50. If an unmarried child or children of the sworn |
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| sheriff's personnel under age 18 also
survive, and the child or |
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| children are under the care of the eligible
spouse, the annuity |
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| shall begin as of the date of death of the sworn sheriff's |
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| personnel without regard to the spouse's age.
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| The annuity to a spouse shall be 66 2/3% of the amount of |
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| retirement
annuity earned by the sworn sheriff's personnel on |
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| the date of death, subject to a
minimum payment of 10% of |
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| salary, provided that, if an eligible spouse,
regardless of |
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| age, has in his or her care at the date of death of the
sworn |
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| sheriff's personnel any unmarried child or children of the |
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| sworn sheriff's personnel under age 18, the minimum annuity |
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| shall be 30% of the salary of the sworn sheriff's personnel, |
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| plus 10% of salary on account of each minor child
of the sworn |
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| sheriff's personnel, subject to a combined total payment on
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| account of a spouse and minor children not to exceed 50% of the |
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| salary of the deceased
sworn sheriff's personnel. In the event |
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| there is no spouse
of the sworn sheriff's personnel, or should |
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| a
spouse remarry or die while eligible minor children still |
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HB0545 |
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LRB095 05284 AMC 25362 b |
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| survive the
sworn sheriff's personnel, each such child shall be |
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| entitled to an annuity
equal to 20% of salary of the sworn |
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| sheriff's personnel subject to a combined total
payment on |
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| account of all such children not to exceed 50% of salary of the
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| sworn sheriff's personnel. The salary to be used in the |
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| calculation of these
benefits shall be the same as that |
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| prescribed for determining a retirement
annuity as provided in |
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| Section 9-121.17. |
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| Upon the death of sworn sheriff's personnel occurring after |
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| termination
of service or while in receipt of a retirement |
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| annuity, the combined total
payment to a spouse and minor |
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| children, or to minor children alone if no
eligible spouse |
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| survives, shall be limited to 75% of the amount of
retirement |
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| annuity earned by the sworn sheriff's personnel. |
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| Adopted children shall have status as children of the sworn |
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| sheriff's personnel only if the proceedings for adoption were |
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| commenced at least one
year prior to the date of the death of |
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| the sworn sheriff's personnel. |
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| Marriage of a child or attainment of age 18, whichever |
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| first occurs,
shall render the child ineligible for further |
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| consideration in the payment
of an annuity to a spouse or in |
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| the increase in the amount thereof. Upon
attainment of |
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| ineligibility of the youngest minor child of the sworn |
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| sheriff's personnel, the annuity shall immediately revert to |
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| the amount payable
upon death of sworn sheriff's personnel |
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| leaving no minor children surviving
him or her. If the spouse |
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HB0545 |
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LRB095 05284 AMC 25362 b |
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| is under age 50 at such time, the annuity as
revised shall be |
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| deferred until such age is attained. Remarriage of a
widow or |
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| widower prior to attainment of age 55 shall disqualify the |
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| spouse
from the receipt of an annuity.
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| (40 ILCS 5/9-134.2) (from Ch. 108 1/2, par. 9-134.2)
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| Sec. 9-134.2. Early retirement incentives.
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| (a) To be eligible for the benefits provided in this |
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| Section, a person must:
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| (1) be a current contributing member of this Fund who, |
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| on May 1,
1992 and within 30 days prior to the date of |
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| retirement, is (i) in active
payroll status in a position |
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| of employment under this Article, or (ii)
receiving |
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| disability benefits under Section 9-156 or 9-157;
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| (2) have not previously retired under this Article;
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| (3) file with the Board before May 1, 1993, a written |
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| application
requesting the benefits provided in this |
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| Section;
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| (4) elect to retire under this Section on or after |
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| December
1, 1992 and on or before May 29, 1993 (or the date |
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| established under
subsection (c), if applicable);
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| (5) have attained age 55 on or before the date of |
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| retirement; and
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| (6) have at least 10 years of creditable service under |
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| this Fund or
any of the participating systems under the |
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| Retirement Systems Reciprocal
Act by the effective date of |
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HB0545 |
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LRB095 05284 AMC 25362 b |
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| the retirement annuity.
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| (b) An employee who qualifies for the benefits provided |
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| under this
Section shall be entitled to the following:
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| (1) The employee's retirement annuity, as calculated |
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| under the other
provisions of this Article, shall be |
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| increased at the time of retirement by
an amount equal to |
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| 1% of the employee's average annual salary for the
highest |
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| 4 consecutive years within the last 10 years of service,
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| multiplied by the employee's number of years of service |
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| credit in this Fund up
to a maximum of 10 years; except |
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| that the total retirement annuity, including
any |
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| additional benefits elected under Section 9-121.6 , |
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| 9-121.17, or 9-179.3, shall not
exceed 80% of that highest |
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| average annual salary.
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| (2) If the employee's retirement annuity is calculated |
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| under Section
9-134, the employee shall not be subject to |
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| the reduction in retirement
annuity because of retirement |
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| below age 60 that is otherwise required under
that Section.
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| (c) In the case of an employee whose immediate retirement |
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| could
jeopardize public safety or create hardship for the |
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| employer, the deadline
for retirement provided in subdivision |
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| (a)(4) of this Section may be
extended to a specified date, no |
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| later than November 30, 1993, by the
employee's department |
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| head, with the approval of the President of the
County Board. |
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| In the case of an employee who is not employed by a
department |
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| of the County, the employee's "department head", for the
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HB0545 |
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LRB095 05284 AMC 25362 b |
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| purposes of this Section, shall be a person designated by the |
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| President of
the County Board.
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| (d) Notwithstanding Section 9-161, an annuitant who |
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| reenters service
under this Article after receiving a |
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| retirement annuity based on benefits
provided under this |
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| Section thereby forfeits the right to continue to
receive those |
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| benefits, and shall have his or her retirement annuity
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| recalculated without the benefits provided in this Section.
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| (Source: P.A. 87-1130.)
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| (40 ILCS 5/9-134.3)
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| Sec. 9-134.3. Early retirement incentives.
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| (a) To be eligible for the benefits provided in this |
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| Section, a person must:
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| (1) be a current contributing member of the Fund |
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| established under this
Article who, on May 1, 1997 and |
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| within 30 days prior to the date of retirement,
is (i) in |
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| active payroll status in a position of employment under |
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| this Article
or (ii) receiving disability benefits under |
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| Section 9-156 or 9-157; or else
be eligible under |
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| subsection (g);
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| (2) have not previously retired from the Fund, except |
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| as provided under
subsection (g);
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| (3) file with the Board before October 1, 1997 (or the |
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| date specified
in subsection (g), if applicable) a written |
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| application requesting the
benefits provided in this |
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HB0545 |
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LRB095 05284 AMC 25362 b |
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| Section;
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| (4) elect to retire under this Section on or after |
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| September 1, 1997 and
on or before February 28, 1998 (or |
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| the date established under subsection (d)
or (g), if |
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| applicable);
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| (5) have attained age 55 on or before the date of |
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| retirement and before
February 28, 1998; and
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| (6) have at least 10 years of creditable service in the |
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| Fund, excluding
service in any of the other participating |
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| systems under the Retirement Systems
Reciprocal Act, by the |
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| effective date of the retirement annuity or February 28,
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| 1998, whichever occurs first.
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| (b) An employee who qualifies for the benefits provided |
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| under this Section
shall be entitled to the following:
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| (1) The employee's retirement annuity, as calculated |
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| under the other
provisions of this Article, shall be |
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| increased at the time of retirement by
an amount equal to |
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| 1% of the employee's average annual salary for the highest
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| 4 consecutive years within the last 10 years of service, |
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| multiplied by the
employee's number of years of service |
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| credit in this Fund up to a maximum of
10 years; except |
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| that the total retirement annuity, including any |
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| additional
benefits elected under Section 9-121.6 , |
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| 9-121.17, or 9-179.3, shall not exceed 80% of
that highest |
25 |
| average annual salary.
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| (2) If the employee's retirement annuity is calculated |
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HB0545 |
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LRB095 05284 AMC 25362 b |
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| under Section
9-134, the employee shall not be subject to |
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| the reduction in retirement annuity
because of retirement |
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| below age 60 that is otherwise required under that
Section.
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| (c) A person who elects to retire under the provisions of |
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| this Section
thereby relinquishes his or her right, if any, to |
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| have the retirement
annuity calculated under the alternative |
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| formula formerly set forth in Section
20-122 of the Retirement |
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| Systems Reciprocal Act.
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| (d) In the case of an employee whose immediate retirement |
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| could jeopardize
public safety or create hardship for the |
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| employer, the deadline for retirement
provided in subdivision |
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| (a)(4) of this Section may be extended to a specified
date, no |
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| later than August 31, 1998, by the employee's department head, |
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| with
the approval of the President of the County Board. In the |
15 |
| case of an employee
who is not employed by a department of the |
16 |
| County, the employee's "department
head", for the purposes of |
17 |
| this Section, shall be a person designated by the
President of |
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| the County Board.
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| (e) Notwithstanding Section 9-161, an annuitant who |
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| reenters service under
this Article after receiving a |
21 |
| retirement annuity based on benefits provided
under this |
22 |
| Section thereby forfeits the right to continue to receive those
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| benefits and shall have his or her retirement annuity |
24 |
| recalculated without the
benefits provided in this Section.
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| (f) This Section also applies to the Fund established under
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| Article 10 of this Code.
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HB0545 |
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LRB095 05284 AMC 25362 b |
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| (g) A person who (1) was a participating employee on |
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| November 30, 1996,
(2) was laid off on or after December 1, |
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| 1996 and before May 1, 1997 due to
the elimination of the |
4 |
| employee's job or position, (3) meets the requirements
of items |
5 |
| (3) through (6) of subsection (a), and (4) has not been |
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| reinstated
as a Cook County employee since being laid off is |
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| eligible for the benefits
provided under this Section. For such |
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| a person, the application required under
subdivision (a)(3) of |
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| this Section must be filed within 60 days after the
effective |
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| date of this amendatory Act of the 92nd General Assembly, and |
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| the
date of retirement must be within 60 days after the |
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| effective date of this
amendatory Act.
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| In the case of a person eligible under this subsection (g) |
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| who began to
receive a retirement annuity before the effective |
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| date of this amendatory Act,
the annuity shall be recalculated |
16 |
| to include the increase under this Section,
and that increase |
17 |
| shall take effect on the first annuity payment date following
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18 |
| the date of application.
|
19 |
| (Source: P.A. 92-599, eff. 6-28-02.)
|
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| (40 ILCS 5/9-134.4)
|
21 |
| Sec. 9-134.4. Early retirement incentives.
|
22 |
| (a) To be eligible for the benefits provided in this |
23 |
| Section, a person must:
|
24 |
| (1) be a current contributing member of the Fund |
25 |
| established under this
Article who, on January 1, 2001 and |
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HB0545 |
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LRB095 05284 AMC 25362 b |
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| within 30 days prior to the date of
retirement, is (i) in |
2 |
| active payroll status in a position of employment under
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| this Article or (ii) receiving disability benefits under |
4 |
| Section 9-156 or
9-157;
|
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| (2) have not previously retired from the Fund;
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| (3) file with the Board before March 1, 2003 a written |
7 |
| application
requesting the benefits provided in this |
8 |
| Section;
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| (4) elect to retire under this Section on or after |
10 |
| November 30, 2002 and
on or before March 31, 2003 (or the |
11 |
| date established under subsection (d),
if applicable);
|
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| (5) have attained age 50 on or before the date of |
13 |
| retirement and
on or before March 31, 2003; and
|
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| (6) have at least 20 years of creditable service in the |
15 |
| Fund, excluding
service in any of the other participating |
16 |
| systems under the Retirement Systems
Reciprocal Act, by the |
17 |
| effective date of the retirement annuity or March 31,
2003, |
18 |
| whichever occurs first.
|
19 |
| (b) An employee who qualifies for the benefits provided |
20 |
| under this Section
shall be entitled to the following:
|
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| (1) The employee's retirement annuity, as calculated |
22 |
| under the other
provisions of this Article, shall be |
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| increased at the time of retirement by
an amount equal to |
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| 1% of the employee's average annual salary for the highest
|
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| 4 consecutive years within the last 10 years of service, |
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| multiplied by the
employee's number of years of service |
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|
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LRB095 05284 AMC 25362 b |
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| credit in this Fund up to a maximum of
10 years; except |
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| that the total retirement annuity, including any |
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| additional
benefits elected under Section 9-121.6 , |
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| 9-121.17, or 9-179.3, shall not exceed 80% of
that highest |
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| average annual salary.
|
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| (2) If the employee's retirement annuity is calculated |
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| under Section
9-134, the employee shall not be subject to |
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| the reduction in retirement
annuity because of retirement |
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| below age 60 that is otherwise required under
that Section.
|
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| (c) A person who elects to retire under the provisions of |
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| this Section
thereby relinquishes his or her right, if any, to |
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| have the retirement
annuity calculated under the alternative |
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| formula formerly set forth in Section
20-122 of the Retirement |
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| Systems Reciprocal Act.
|
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| (d) In the case of an employee whose immediate retirement |
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| could jeopardize
public safety or create hardship for the |
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| employer, the deadline for retirement
provided in subdivision |
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| (a)(4) of this Section may be extended to a specified
date, no |
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| later than September 30, 2003, by the employee's department |
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| head, with
the approval of the President of the County Board. |
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| In the case of an employee
who is not employed by a department |
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| of the County, the employee's "department
head", for the |
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| purposes of this Section, shall be a person designated by the
|
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| President of the County Board.
|
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| (e) Notwithstanding Section 9-161, an annuitant who |
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| reenters service under
this Article after receiving a |
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LRB095 05284 AMC 25362 b |
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| retirement annuity based on benefits provided
under this |
2 |
| Section thereby forfeits the right to continue to receive those
|
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| benefits and shall have his or her retirement annuity |
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| recalculated without the
benefits provided in this Section.
|
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| (f) This Section also applies to the Fund established under |
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| Article 10 of
this Code.
|
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| (Source: P.A. 92-599, eff. 6-28-02.)
|
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| Section 90. The State Mandates Act is amended by adding |
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| Section 8.31 as follows: |
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| (30 ILCS 805/8.31 new) |
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| Sec. 8.31. 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.
|