Full Text of SB2554 96th General Assembly
SB2554eng 96TH GENERAL ASSEMBLY
|
|
|
SB2554 Engrossed |
|
LRB096 15969 AMC 31214 b |
|
| 1 |
| AN ACT concerning public employee benefits.
| 2 |
| Be it enacted by the People of the State of Illinois,
| 3 |
| represented in the General Assembly:
| 4 |
| Section 5. The Illinois Pension Code is amended by changing | 5 |
| Sections 7-141, 7-144, and 7-173 as follows:
| 6 |
| (40 ILCS 5/7-141) (from Ch. 108 1/2, par. 7-141)
| 7 |
| Sec. 7-141. Retirement annuities - Conditions. Retirement | 8 |
| annuities shall be payable as hereinafter set forth:
| 9 |
| (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:
| 14 |
| 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;
| 17 |
| 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
| 20 |
| 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
|
|
|
|
SB2554 Engrossed |
- 2 - |
LRB096 15969 AMC 31214 b |
|
| 1 |
| 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
| 6 |
| 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 ;
| 23 |
| 3. The amount of his annuity, before the application of | 24 |
| paragraph (b) of
Section 7-142 is at least $10 per month;
| 25 |
| 4. If he first became a participating employee after | 26 |
| December 31,
1961, he has at least 8 years of service. This |
|
|
|
SB2554 Engrossed |
- 3 - |
LRB096 15969 AMC 31214 b |
|
| 1 |
| service requirement shall not
apply to any participating | 2 |
| employee, regardless of participation date, if the
General | 3 |
| Assembly terminates the Fund.
| 4 |
| (b) Retirement annuities shall be payable:
| 5 |
| 1. As provided in Section 7-119;
| 6 |
| 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;
| 10 |
| 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;
| 13 |
| 4. To the beneficiary of the deceased annuitant for the | 14 |
| unpaid amount
accrued to date of death, if any.
| 15 |
| (Source: P.A. 91-887, eff. 7-6-00.)
| 16 |
| (40 ILCS 5/7-144) (from Ch. 108 1/2, par. 7-144)
| 17 |
| Sec. 7-144. Retirement annuities-Suspended during | 18 |
| employment.
| 19 |
| (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 |
|
|
|
SB2554 Engrossed |
- 4 - |
LRB096 15969 AMC 31214 b |
|
| 1 |
| 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
| 9 |
| 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.
| 13 |
| (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.
| 23 |
| (c) Supplemental annuities to persons who return to service | 24 |
| for 48
months or more shall be a monthly amount determined as | 25 |
| follows:
| 26 |
| (1) An amount shall be computed under subparagraph b of |
|
|
|
SB2554 Engrossed |
- 5 - |
LRB096 15969 AMC 31214 b |
|
| 1 |
| paragraph
(1) of subsection (a) of Section 7-142, | 2 |
| considering all of the service
credits of the employee;
| 3 |
| (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;
| 7 |
| (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
| 12 |
| provided that this amount shall not be less than the amount | 13 |
| computed under
subsection (b) of this Section.
| 14 |
| (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.
| 17 |
| (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.
| 21 |
| (Source: P.A. 82-459 .)
| 22 |
| (40 ILCS 5/7-173) (from Ch. 108 1/2, par. 7-173)
| 23 |
| Sec. 7-173. Contributions by employees.
| 24 |
| (a) Each participating employee shall make contributions | 25 |
| to the fund as
follows:
|
|
|
|
SB2554 Engrossed |
- 6 - |
LRB096 15969 AMC 31214 b |
|
| 1 |
| 1. For retirement annuity purposes, normal | 2 |
| contributions of 3 3/4%
of earnings.
| 3 |
| 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
| 8 |
| 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.
| 12 |
| 3. Survivor contributions, by each participating | 13 |
| employee, of 3/4%
of each payment of earnings.
| 14 |
| (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.
| 20 |
| (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
| 25 |
| and contributions shall be made as directed by the board. For | 26 |
| township
treasurers and employees of township treasurers |
|
|
|
SB2554 Engrossed |
- 7 - |
LRB096 15969 AMC 31214 b |
|
| 1 |
| 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
| 5 |
| provided in the School Code and remitted to the board.
| 6 |
| (d) An employee who has made additional contributions under
| 7 |
| 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.
| 11 |
| (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
| 18 |
| participation.
| 19 |
| (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
| 24 |
| 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 |
|
|
|
SB2554 Engrossed |
- 8 - |
LRB096 15969 AMC 31214 b |
|
| 1 |
| contributions in relation to that employee.
| 2 |
| (Source: P.A. 87-1265.)
| 3 |
| 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.
| 10 |
| Section 99. Effective date. This Act takes effect upon | 11 |
| becoming law.
|
|