Full Text of SB2554 96th General Assembly
SB2554 96TH GENERAL ASSEMBLY
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96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010 SB2554
Introduced 1/13/2010, by Sen. Iris Y. Martinez SYNOPSIS AS INTRODUCED: |
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40 ILCS 5/7-141 |
from Ch. 108 1/2, par. 7-141 |
40 ILCS 5/7-144 |
from Ch. 108 1/2, par. 7-144 |
40 ILCS 5/7-173 |
from Ch. 108 1/2, par. 7-173 |
30 ILCS 805/8.34 new |
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Amends the IMRF Article of the Illinois Pension Code. Makes changes concerning conditions under which a person may return to employment and continue to receive his or or her annuity. Provides that the selected rate of payment of earnings as additional contributions for retirement annuity purposes shall be applicable to all earning paid (rather than earnings beginning on the first day of the second month) following receipt by the Board of written notice of election to make such contributions. 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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SB2554 |
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LRB096 15969 AMC 31214 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 | 5 |
| Sections 7-141, 7-144, and 7-173 as follows:
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| (40 ILCS 5/7-141) (from Ch. 108 1/2, par. 7-141)
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| Sec. 7-141. Retirement annuities - Conditions. Retirement | 8 |
| annuities shall be payable as hereinafter set forth:
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| (a) A participating employee who, regardless of cause, is | 10 |
| separated
from the service of all participating municipalities | 11 |
| and
instrumentalities thereof and participating | 12 |
| instrumentalities shall be
entitled to a retirement annuity | 13 |
| provided:
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| 1. He is at least age 55, or in the case of a person who | 15 |
| is eligible
to have his annuity calculated under Section | 16 |
| 7-142.1, he is at least age 50;
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| 2. He is (i) an employee who was employed by any | 18 |
| participating
municipality
or participating | 19 |
| instrumentality which had not elected to exclude persons
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| employed in positions normally requiring performance of | 21 |
| duty for less than 1000
hours per year or was employed in a | 22 |
| position normally requiring performance of
duty for 600 | 23 |
| hours or more per year prior to such election by any
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SB2554 |
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LRB096 15969 AMC 31214 b |
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| participating municipality or participating | 2 |
| instrumentality included in
and subject to this Article on | 3 |
| or before the effective date of this
amendatory Act of 1981 | 4 |
| which made such election and is not entitled to
receive | 5 |
| earnings for employment in a position normally requiring
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| performance of duty for 600 hours or more per year for any | 7 |
| participating
municipality and instrumentalities thereof | 8 |
| and participating instrumentality;
or (ii) an employee who | 9 |
| was employed only by a participating municipality
or | 10 |
| participating instrumentality, or participating | 11 |
| municipalities or
participating instrumentalities, which | 12 |
| have elected to exclude persons in
positions normally | 13 |
| requiring performance of duty for less than 1000 hours
per | 14 |
| year after the effective date of such exclusion or which | 15 |
| are included
under and subject to the Article after the | 16 |
| effective date of this
amendatory Act of 1981 and elects to | 17 |
| exclude persons in such positions, and
is not entitled to | 18 |
| receive earnings for employment in a position requiring him | 19 |
| to be a participating employee normally
requiring | 20 |
| performance of duty for 1000 hours or more per year by such | 21 |
| a
participating municipality or participating | 22 |
| instrumentality ;
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| 3. The amount of his annuity, before the application of | 24 |
| paragraph (b) of
Section 7-142 is at least $10 per month;
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| 4. If he first became a participating employee after | 26 |
| December 31,
1961, he has at least 8 years of service. This |
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SB2554 |
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LRB096 15969 AMC 31214 b |
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| service requirement shall not
apply to any participating | 2 |
| employee, regardless of participation date, if the
General | 3 |
| Assembly terminates the Fund.
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| (b) Retirement annuities shall be payable:
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| 1. As provided in Section 7-119;
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| 2. Except as provided in item 3, upon receipt by the | 7 |
| fund of a written
application. The effective date may be | 8 |
| not more than one
year prior to the date of the receipt by | 9 |
| the fund of the application;
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| 3. Upon attainment of age 70 1/2 if the member (i) is | 11 |
| no longer in
service,
and (ii) is otherwise entitled to an | 12 |
| annuity under this Article;
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| 4. To the beneficiary of the deceased annuitant for the | 14 |
| unpaid amount
accrued to date of death, if any.
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| (Source: P.A. 91-887, eff. 7-6-00.)
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| (40 ILCS 5/7-144) (from Ch. 108 1/2, par. 7-144)
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| Sec. 7-144. Retirement annuities-Suspended during | 18 |
| employment.
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| (a) (1) If any person described in clause (i) of subsection | 20 |
| (a)
2 of Section 7-141
receiving any annuity again becomes an | 21 |
| employee
and receives earnings from employment in a position | 22 |
| normally requiring
performance of duty during 600 hours or more | 23 |
| per year for any
participating municipality and | 24 |
| instrumentalities thereof or
participating instrumentality; or | 25 |
| (2) if any person described in
clause (ii) of subsection (a) 2 |
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LRB096 15969 AMC 31214 b |
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| of Section 7-141 receiving any annuity returns
to employment in | 2 |
| a position requiring him , or entitling him to elect, to
become | 3 |
| a participating employee , ; then the annuity payable to such | 4 |
| employee
shall be suspended as of the 1st day of the month | 5 |
| coincidental with or
next following the date upon which such | 6 |
| person becomes such an employee.
Upon proper qualification of | 7 |
| the participating employee payment of such
annuity may be | 8 |
| resumed on the 1st day of the month following such
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| qualification and upon proper application therefor. The | 10 |
| participating
employee in such case shall be entitled to a | 11 |
| supplemental annuity
arising from service and credits earned | 12 |
| subsequent to such re-entry as a
participating employee.
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| (b) Supplemental annuities to persons who return to service | 14 |
| for less
than 48 months shall be computed under the provisions | 15 |
| of Sections 7-141,
7-142 and 7-143. In determining whether an | 16 |
| employee is eligible for an
annuity which requires a minimum | 17 |
| period of service, his entire period of
service shall be taken | 18 |
| into consideration but the supplemental annuity
shall be based | 19 |
| on earnings and service in the supplemental period only.
The | 20 |
| effective date of the suspended and supplemental annuity for | 21 |
| the
purpose of increases after retirement shall be considered | 22 |
| to be the
effective date of the suspended annuity.
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| (c) Supplemental annuities to persons who return to service | 24 |
| for 48
months or more shall be a monthly amount determined as | 25 |
| follows:
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| (1) An amount shall be computed under subparagraph b of |
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LRB096 15969 AMC 31214 b |
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| paragraph
(1) of subsection (a) of Section 7-142, | 2 |
| considering all of the service
credits of the employee;
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| (2) The actuarial value in monthly payments for life of | 4 |
| the annuity
payments made before suspension shall be | 5 |
| determined and subtracted from
the amount determined in (1) | 6 |
| above;
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| (3) The monthly amount of the suspended annuity, with | 8 |
| any applicable
increases after retirement computed from | 9 |
| the effective date to the date
of reinstatement, shall be | 10 |
| subtracted from the amount determined in (2)
above and the | 11 |
| remainder shall be the amount of the supplemental annuity
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| provided that this amount shall not be less than the amount | 13 |
| computed under
subsection (b) of this Section.
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| (4) The suspended annuity shall be reinstated at an | 15 |
| amount including
any increases after retirement from the | 16 |
| effective date to date of
reinstatement.
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| (5) The effective date of the combined suspended and | 18 |
| supplemental
annuities for the purposes of increases after | 19 |
| retirement shall be
considered to be the effective date of | 20 |
| the supplemental annuity.
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| (Source: P.A. 82-459 .)
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| (40 ILCS 5/7-173) (from Ch. 108 1/2, par. 7-173)
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| Sec. 7-173. Contributions by employees.
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| (a) Each participating employee shall make contributions | 25 |
| to the fund as
follows:
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LRB096 15969 AMC 31214 b |
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| 1. For retirement annuity purposes, normal | 2 |
| contributions of 3 3/4%
of earnings.
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| 2. Additional contributions of such percentages of | 4 |
| each payment of
earnings, as shall be elected by the | 5 |
| employee for retirement annuity
purposes, but not in excess | 6 |
| of 10%. The selected rate shall be
applicable to all | 7 |
| earnings paid beginning on the first day of the second
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| month following receipt by the Board of written notice of | 9 |
| election to
make such contributions. Additional | 10 |
| contributions at the selected rate
shall be made | 11 |
| concurrently with normal contributions.
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| 3. Survivor contributions, by each participating | 13 |
| employee, of 3/4%
of each payment of earnings.
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| (b) Each employee shall make contributions to the fund for | 15 |
| Federal
Social Security taxes, for periods during which he is a | 16 |
| covered
employee, as required by the Social Security Enabling | 17 |
| Act. For
participating employees, such contributions shall be | 18 |
| in addition to
those required under paragraph (a) of this | 19 |
| Section.
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| (c) Contributions shall be deducted from each | 21 |
| corresponding payment
of earnings paid to each employee and | 22 |
| shall be remitted to the board by
the participating | 23 |
| municipality or participating instrumentality making
such | 24 |
| payment. The remittance, together with a report of the earnings
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| and contributions shall be made as directed by the board. For | 26 |
| township
treasurers and employees of township treasurers |
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LRB096 15969 AMC 31214 b |
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| qualifying as employees
hereunder, the contributions herein | 2 |
| required as deductions from salary
shall be withheld by the | 3 |
| school township trustees from funds available
for the payment | 4 |
| of the compensation of such treasurers and employees as
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| provided in the School Code and remitted to the board.
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| (d) An employee who has made additional contributions under
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| paragraph (a)2 of this Section may upon retirement or at any | 8 |
| time prior
thereto, elect to withdraw the total of such | 9 |
| additional contributions
including interest credited thereon | 10 |
| to the end of the preceding calendar
year.
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| (e) Failure to make the deductions for employee | 12 |
| contributions
provided in paragraph (c) of this Section shall | 13 |
| not relieve the employee
from liability for such contributions. | 14 |
| The amount of such liability may
be deducted, with interest | 15 |
| charged under Section 7-209, from any
annuities or benefits | 16 |
| payable hereunder to the employee or any other
person receiving | 17 |
| an annuity or benefit by reason of such employee's
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| participation.
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| (f) A participating employee who has at least 40 years of | 20 |
| creditable
service in the Fund may elect to cease making the | 21 |
| contributions required
under this Section. The status of the | 22 |
| employee under this Article shall be
unaffected by this | 23 |
| election, except that the employee shall not receive any
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| additional creditable service for the periods of employment | 25 |
| following the
election. An election under this subsection | 26 |
| relieves the employer from
making additional employer |
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LRB096 15969 AMC 31214 b |
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| contributions in relation to that employee.
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| (Source: P.A. 87-1265.)
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| Section 90. The State Mandates Act is amended by adding | 4 |
| Section 8.34 as follows: | 5 |
| (30 ILCS 805/8.34 new) | 6 |
| Sec. 8.34. Exempt mandate. Notwithstanding Sections 6 and 8 | 7 |
| of this Act, no reimbursement by the State is required for the | 8 |
| implementation of any mandate created by this amendatory Act of | 9 |
| the 96th General Assembly.
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| Section 99. Effective date. This Act takes effect upon | 11 |
| becoming law.
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