Full Text of HB3253 97th General Assembly
HB3253 97TH GENERAL ASSEMBLY |
| | 97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012 HB3253 Introduced 2/24/2011, by Rep. Karen May SYNOPSIS AS INTRODUCED: |
| 40 ILCS 5/7-142.1 | from Ch. 108 1/2, par. 7-142.1 | 40 ILCS 5/7-145.1 | | 30 ILCS 805/8.35 new | |
|
Amends the Illinois Municipal Retirement Fund (IMRF) Article of the Illinois Pension Code. Prohibits a sheriff's law enforcement employee who begins service in that capacity after the effective date of the amendatory Act from being able to convert up to 10 years of service in any other capacity into service as a sheriff's
law enforcement employee. Provides that, on and after the effective date of the amendatory Act, an elected county officer will not be able to elect to establish alternative credits for
an alternative annuity. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.
|
| |
| | FISCAL NOTE ACT MAY APPLY | PENSION IMPACT NOTE ACT MAY APPLY | STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT |
| | A BILL FOR |
|
| | | HB3253 | | LRB097 10456 JDS 50688 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 7-142.1 and 7-145.1 as follows: | 6 | | (40 ILCS 5/7-142.1) (from Ch. 108 1/2, par. 7-142.1) | 7 | | Sec. 7-142.1. Sheriff's law enforcement employees.
| 8 | | (a) In lieu of the retirement annuity provided by | 9 | | subparagraph 1 of
paragraph (a) of Section 7-142:
| 10 | | Any sheriff's law enforcement employee who
has 20 or more | 11 | | years of service in that capacity and who terminates
service | 12 | | prior to January 1, 1988 shall be entitled at his
option to | 13 | | receive a monthly retirement annuity for his service as a
| 14 | | sheriff's law enforcement employee computed by multiplying 2% | 15 | | for each year
of such service up to 10 years, 2 1/4% for each | 16 | | year
of such service above 10 years and up to 20 years, and
2 | 17 | | 1/2% for each year of such service above
20 years, by his | 18 | | annual final rate of earnings and dividing by 12.
| 19 | | Any sheriff's law enforcement employee who has 20 or more | 20 | | years of
service in that capacity and who terminates service on | 21 | | or after January 1,
1988 and before July 1, 2004 shall be | 22 | | entitled at his option to receive
a monthly retirement
annuity | 23 | | for his service as a sheriff's law enforcement employee |
| | | HB3253 | - 2 - | LRB097 10456 JDS 50688 b |
|
| 1 | | computed by
multiplying 2.5% for each year of such service up | 2 | | to 20 years, 2% for each
year of such service above 20 years | 3 | | and up to 30 years, and 1% for each
year of such service above | 4 | | 30 years, by his annual final rate of earnings
and dividing by | 5 | | 12.
| 6 | | Any sheriff's law enforcement employee who has 20 or more | 7 | | years of
service in that capacity and who terminates service on | 8 | | or after July 1,
2004 shall be entitled at his or her option to | 9 | | receive a monthly retirement
annuity for service as a sheriff's | 10 | | law enforcement employee computed by
multiplying 2.5% for each | 11 | | year of such service by his annual final rate of
earnings and | 12 | | dividing by 12.
| 13 | | If a sheriff's law enforcement employee has service in any | 14 | | other
capacity, his retirement annuity for service as a | 15 | | sheriff's law enforcement
employee may be computed under this | 16 | | Section and the retirement annuity for
his other service under | 17 | | Section 7-142.
| 18 | | In no case shall the total monthly retirement annuity for | 19 | | persons who retire before July 1, 2004 exceed 75% of the
| 20 | | monthly final rate of earnings. In no case shall the total | 21 | | monthly retirement annuity for persons who retire on or after | 22 | | July 1, 2004 exceed 80% of the
monthly final rate of earnings.
| 23 | | (b) Whenever continued group insurance coverage is elected | 24 | | in accordance
with the provisions of Section 367h of the | 25 | | Illinois Insurance Code, as now
or hereafter amended, the total | 26 | | monthly premium for such continued group
insurance coverage or |
| | | HB3253 | - 3 - | LRB097 10456 JDS 50688 b |
|
| 1 | | such portion thereof as is not paid
by the municipality shall, | 2 | | upon request of the person electing such
continued group | 3 | | insurance coverage, be deducted from any monthly pension
| 4 | | benefit otherwise payable to such person pursuant to this | 5 | | Section, to be
remitted by the Fund to the insurance company
or | 6 | | other entity providing the group insurance coverage.
| 7 | | (c) A sheriff's law enforcement employee who began service | 8 | | in that capacity prior to the effective date of this amendatory | 9 | | Act of the 97th General Assembly and who has service in any | 10 | | other
capacity may convert up to 10 years of that service into | 11 | | service as a sheriff's
law enforcement employee by paying to | 12 | | the Fund an amount equal to (1) the
additional employee | 13 | | contribution required under Section 7-173.1, plus (2) the | 14 | | additional employer contribution required under Section 7-172, | 15 | | plus (3) interest on items (1) and (2) at the
prescribed rate | 16 | | from the date of the service to the date of payment.
| 17 | | (d) The changes to subsections (a) and (b) of this Section | 18 | | made by this amendatory Act of the 94th General Assembly apply | 19 | | only to persons in service on or after July 1, 2004. In the | 20 | | case of such a person who begins to receive a retirement | 21 | | annuity before the effective date of this amendatory Act of the | 22 | | 94th General Assembly, the annuity shall be recalculated | 23 | | prospectively to reflect those changes, with the resulting | 24 | | increase beginning to accrue on the first annuity payment date | 25 | | following the effective date of this amendatory Act.
| 26 | | (e) Any elected county officer who was entitled to receive |
| | | HB3253 | - 4 - | LRB097 10456 JDS 50688 b |
|
| 1 | | a stipend from the State on or after July 1, 2009 and on or | 2 | | before June 30, 2010 may establish earnings credit for the | 3 | | amount of stipend not received, if the elected county official | 4 | | applies in writing to the fund within 6 months after the | 5 | | effective date of this amendatory Act of the 96th General | 6 | | Assembly and pays to the fund an amount equal to (i) employee | 7 | | contributions on the amount of stipend not received, (ii) | 8 | | employer contributions determined by the Board equal to the | 9 | | employer's normal cost of the benefit on the amount of stipend | 10 | | not received, plus (iii) interest on items (i) and (ii) at the | 11 | | actuarially assumed rate. | 12 | | (f) Notwithstanding any other provision of this Article,
| 13 | | the provisions of this subsection (f) apply to a person who | 14 | | first
becomes a sheriff's law enforcement employee under this | 15 | | Article on or after January 1, 2011. | 16 | | A sheriff's law enforcement employee age 55 or more who has | 17 | | 10 or more years of service in that capacity shall be entitled | 18 | | at his option to receive a monthly retirement annuity for his | 19 | | or her service as a sheriff's law enforcement employee computed | 20 | | by multiplying 2.5% for each year of such service by his or her | 21 | | final rate of earnings. | 22 | | The retirement annuity of a sheriff's law enforcement | 23 | | employee who is retiring after attaining age 50 with 10 or more | 24 | | years of creditable service shall be reduced by one-half of 1% | 25 | | for each month that the sheriff's law enforcement employee's | 26 | | age is under age 55. |
| | | HB3253 | - 5 - | LRB097 10456 JDS 50688 b |
|
| 1 | | The maximum retirement annuity under this subsection (f) | 2 | | shall be 75%
of final rate of earnings. | 3 | | For the purposes of this subsection (f), "final rate of | 4 | | earnings" means the average monthly earnings obtained by | 5 | | dividing the total salary of the sheriff's law enforcement | 6 | | employee during the 96 consecutive months of service within the | 7 | | last 120 months of service in which the total earnings was the | 8 | | highest by the number of months of service in that period. | 9 | | Notwithstanding any other provision of this Article, | 10 | | beginning on January 1, 2011, for all purposes under this Code | 11 | | (including without limitation the calculation of benefits and | 12 | | employee contributions), the annual earnings of a sheriff's law | 13 | | enforcement employee to whom this Section applies shall not | 14 | | include overtime and shall not exceed $106,800; however, that | 15 | | amount shall annually thereafter be increased by the lesser of | 16 | | (i) 3% of that amount, including all previous adjustments, or | 17 | | (ii) one-half the annual unadjusted percentage increase (but | 18 | | not less than zero) in the consumer price index-u for the 12 | 19 | | months ending with the September preceding each November 1, | 20 | | including all previous adjustments. | 21 | | (g) Notwithstanding any other provision of this Article, | 22 | | the monthly annuity
of a person who first becomes a sheriff's | 23 | | law enforcement employee under this Article on or after January | 24 | | 1, 2011 shall be increased on the January 1 occurring either on | 25 | | or after the attainment of age 60 or the first anniversary of | 26 | | the annuity start date, whichever is later. Each annual |
| | | HB3253 | - 6 - | LRB097 10456 JDS 50688 b |
|
| 1 | | increase shall be calculated at 3% or one-half the annual | 2 | | unadjusted percentage increase (but not less than zero) in the | 3 | | consumer price index-u for the 12 months ending with the | 4 | | September preceding each November 1, whichever is less, of the | 5 | | originally granted retirement annuity. If the annual | 6 | | unadjusted percentage change in the consumer price index-u for | 7 | | a 12-month period ending in September is zero or, when compared | 8 | | with the preceding period, decreases, then the annuity shall | 9 | | not be increased. | 10 | | (h) Notwithstanding any other provision of this Article, | 11 | | for a person who first becomes a sheriff's law enforcement | 12 | | employee under this Article on or after January 1, 2011, the | 13 | | annuity to which the surviving spouse, children, or parents are | 14 | | entitled under this subsection (h) shall be in the amount of 66 | 15 | | 2/3% of the sheriff's law enforcement employee's earned annuity | 16 | | at the date of death. | 17 | | (i) Notwithstanding any other provision of this Article, | 18 | | the monthly annuity
of a survivor of a person who first becomes | 19 | | a sheriff's law enforcement employee under this Article on or | 20 | | after January 1, 2011 shall be increased on the January 1 after | 21 | | attainment of age 60 by the recipient of the survivor's annuity | 22 | | and
each January 1 thereafter by 3% or one-half the annual | 23 | | unadjusted percentage increase in the consumer price index-u | 24 | | for the
12 months ending with the September preceding each | 25 | | November 1, whichever is less, of the originally granted | 26 | | pension. If the annual unadjusted percentage change in
the |
| | | HB3253 | - 7 - | LRB097 10456 JDS 50688 b |
|
| 1 | | consumer price index-u for a 12-month period ending in | 2 | | September is zero or, when compared with the preceding period, | 3 | | decreases, then the annuity shall not
be increased. | 4 | | (j) For the purposes of this Section, "consumer price | 5 | | index-u" means the index published by the Bureau of Labor | 6 | | Statistics of the United States Department of Labor that | 7 | | measures the average change in prices of goods and services | 8 | | purchased by all urban consumers, United States city average, | 9 | | all items, 1982-84 = 100. The new amount resulting from each | 10 | | annual adjustment shall be determined by the Public Pension | 11 | | Division of the Department of Insurance and made available to | 12 | | the boards of the pension funds. | 13 | | (Source: P.A. 96-961, eff. 7-2-10; 96-1495, eff. 1-1-11.) | 14 | | (40 ILCS 5/7-145.1) | 15 | | Sec. 7-145.1. Alternative annuity for county officers. | 16 | | (a) The benefits provided in this Section and Section | 17 | | 7-145.2 are available
only if , prior to the effective date of | 18 | | this amendatory Act of the 97th General Assembly, the county | 19 | | board has filed with the Board of the Fund a resolution or
| 20 | | ordinance expressly consenting to the availability of these | 21 | | benefits for its
elected county officers. The county board's | 22 | | consent is irrevocable with
respect to persons participating in | 23 | | the program, but may be revoked at any time
with respect to | 24 | | persons who have not paid an additional optional contribution
| 25 | | under this Section before the date of revocation. |
| | | HB3253 | - 8 - | LRB097 10456 JDS 50688 b |
|
| 1 | | An elected county officer may elect to establish | 2 | | alternative credits for
an alternative annuity by electing in | 3 | | writing before the effective date of this amendatory Act of the | 4 | | 97th General Assembly to make additional optional
| 5 | | contributions in accordance with this Section and procedures | 6 | | established
by the board. These alternative credits are | 7 | | available only for periods of
service as an elected county | 8 | | officer. The elected county officer may
discontinue making the | 9 | | additional optional contributions by notifying the
Fund in | 10 | | writing in accordance with this Section and procedures | 11 | | established
by the board. | 12 | | Additional optional contributions for the alternative | 13 | | annuity shall
be as follows: | 14 | | (1) For service as an elected county officer after the | 15 | | option is
elected, an additional contribution of 3% of | 16 | | salary shall be contributed
to the Fund on the same basis | 17 | | and under the same conditions as contributions
required | 18 | | under Section 7-173. | 19 | | (2) For service as an elected county officer before the | 20 | | option is
elected, an additional contribution of 3% of the | 21 | | salary for the applicable
period of service, plus interest | 22 | | at the effective rate from the date of
service to the date | 23 | | of payment, plus any additional amount required by
the | 24 | | county board under paragraph (3). All payments for past | 25 | | service must
be paid in full before credit is given. | 26 | | (3) With respect to service as an elected county |
| | | HB3253 | - 9 - | LRB097 10456 JDS 50688 b |
|
| 1 | | officer before the
option is elected, if payment is made | 2 | | after the county board has filed with
the Board of the Fund | 3 | | a resolution or ordinance requiring an additional
| 4 | | contribution under this paragraph, then the contribution | 5 | | required under
paragraph (2) shall include an amount to be | 6 | | determined by the Fund, equal
to the actuarial present | 7 | | value of the additional employer cost that would
otherwise | 8 | | result from the alternative credits being established for | 9 | | that
service. A county board's resolution or ordinance | 10 | | requiring additional
contributions under this paragraph | 11 | | (3) is irrevocable. | 12 | | No additional optional contributions may be made for any | 13 | | period of service
for which credit has been previously | 14 | | forfeited by acceptance of a refund,
unless the refund is | 15 | | repaid in full with interest at the effective rate from
the | 16 | | date of refund to the date of repayment. | 17 | | (b) In lieu of the retirement annuity otherwise payable | 18 | | under this Article,
an elected county officer who (1) has | 19 | | elected to participate in the Fund and
make additional optional | 20 | | contributions in accordance with this Section, (2)
has held and | 21 | | made additional optional contributions with respect to the same
| 22 | | elected county office for at least 8 years, and (3) has | 23 | | attained
age 55 with at least 8 years of service credit (or has | 24 | | attained age 50 with at
least 20 years of service as a | 25 | | sheriff's law enforcement employee) may elect
to have his | 26 | | retirement annuity computed as follows: 3% of the participant's
|
| | | HB3253 | - 10 - | LRB097 10456 JDS 50688 b |
|
| 1 | | salary for each of the first 8 years
of service credit, plus 4% | 2 | | of that salary for each of the next 4 years of
service credit, | 3 | | plus 5% of that salary for each year of service credit in
| 4 | | excess of 12 years, subject to a maximum of 80% of that salary. | 5 | | This formula applies only to service in an elected county | 6 | | office that the
officer held for at least 8 years, and only to | 7 | | service for which additional
optional contributions have been | 8 | | paid under this Section. If an elected county
officer qualifies | 9 | | to have this formula applied to service in more than one
| 10 | | elected county office, the qualifying service shall be | 11 | | accumulated for purposes
of determining the applicable accrual | 12 | | percentages, but the salary used for each
office shall be the | 13 | | separate salary calculated for that office, as defined in
| 14 | | subsection (g). | 15 | | To the extent that the elected county officer has service | 16 | | credit that does
not qualify for this formula, his retirement | 17 | | annuity will first be determined
in accordance with this | 18 | | formula with respect to the service to which this
formula | 19 | | applies, and then in accordance with the remaining Sections of | 20 | | this
Article with respect to the service to which this formula | 21 | | does not apply. | 22 | | (c) In lieu of the disability benefits otherwise payable | 23 | | under this
Article, an elected county officer who (1) has
| 24 | | elected to participate in the Fund, and (2) has become
| 25 | | permanently disabled and as a consequence is unable to perform | 26 | | the duties
of his office, and (3) was making optional |
| | | HB3253 | - 11 - | LRB097 10456 JDS 50688 b |
|
| 1 | | contributions in accordance with
this Section at the time the | 2 | | disability was incurred, may elect to receive
a disability | 3 | | annuity calculated in accordance with the formula in subsection
| 4 | | (b). For the purposes of this subsection, an elected county | 5 | | officer shall be
considered permanently disabled only if: (i) | 6 | | disability occurs while in
service as an elected county officer | 7 | | and is of such a nature as to prevent him
from reasonably | 8 | | performing the duties of his office at the time; and (ii) the
| 9 | | board has received a written certification by at least 2 | 10 | | licensed physicians
appointed by it stating that the officer is | 11 | | disabled and that the disability
is likely to be permanent. | 12 | | (d) Refunds of additional optional contributions shall be | 13 | | made on the
same basis and under the same conditions as | 14 | | provided under Section 7-166,
7-167 and 7-168. Interest shall | 15 | | be credited at the effective rate on the
same basis and under | 16 | | the same conditions as for other contributions. | 17 | | If an elected county officer fails to hold that same | 18 | | elected county
office for at least 8 years, he or she shall be | 19 | | entitled after leaving office
to receive a refund of the | 20 | | additional optional contributions made with respect
to that | 21 | | office, plus interest at the effective rate. | 22 | | (e) The plan of optional alternative benefits and | 23 | | contributions shall be
available to persons who are elected | 24 | | county officers and active contributors
to the Fund on or after | 25 | | November 15, 1994 and elected to establish alternative credit | 26 | | before the effective date of this amendatory Act of the 97th |
| | | HB3253 | - 12 - | LRB097 10456 JDS 50688 b |
|
| 1 | | General Assembly . A person who was an elected county
officer | 2 | | and an active contributor to the Fund on November 15, 1994 but | 3 | | is
no longer an active contributor may apply to make additional | 4 | | optional
contributions under this Section at any time within 90 | 5 | | days after the
effective date of this amendatory Act of 1997; | 6 | | if the person is an annuitant,
the resulting increase in | 7 | | annuity shall begin to accrue on the first day of
the month | 8 | | following the month in which the required payment is received | 9 | | by the
Fund. | 10 | | (f) For the purposes of this Section and Section 7-145.2, | 11 | | the terms "elected
county officer" and "elected county office" | 12 | | include, but are not limited to:
(1) the county clerk, | 13 | | recorder, treasurer, coroner, assessor (if elected),
auditor, | 14 | | sheriff, and
State's Attorney; members of the county board; and | 15 | | the clerk of the circuit
court; and (2) a person who has been | 16 | | appointed to fill a vacancy in an
office that is normally | 17 | | filled by election on a countywide basis, for the
duration of | 18 | | his or her service in that office. The terms "elected county
| 19 | | officer" and "elected county office" do not include any officer | 20 | | or office of
a county that has not consented to the | 21 | | availability of benefits under this
Section and Section | 22 | | 7-145.2. | 23 | | (g) For the purposes of this Section and Section 7-145.2, | 24 | | the term
"salary" means the final rate of earnings for the | 25 | | elected county office held,
calculated in a manner consistent | 26 | | with Section 7-116, but for that office
only. If an elected |
| | | HB3253 | - 13 - | LRB097 10456 JDS 50688 b |
|
| 1 | | county officer qualifies to have the formula in subsection
(b) | 2 | | applied to service in more than one elected county office, a | 3 | | separate
salary shall be calculated and applied with respect to | 4 | | each such office. | 5 | | (h) The changes to this Section made by this amendatory Act | 6 | | of the 91st
General Assembly apply to persons who first make an | 7 | | additional optional
contribution under this Section on or after | 8 | | the effective date of this
amendatory Act. | 9 | | (i) Any elected county officer who was entitled to receive | 10 | | a stipend from the State on or after July 1, 2009 and on or | 11 | | before June 30, 2010 may establish earnings credit for the | 12 | | amount of stipend not received, if the elected county official | 13 | | applies in writing to the fund within 6 months after the | 14 | | effective date of this amendatory Act of the 96th General | 15 | | Assembly and pays to the fund an amount equal to (i) employee | 16 | | contributions on the amount of stipend not received, (ii) | 17 | | employer contributions determined by the Board equal to the | 18 | | employer's normal cost of the benefit on the amount of stipend | 19 | | not received, plus (iii) interest on items (i) and (ii) at the | 20 | | actuarially assumed rate. | 21 | | (Source: P.A. 96-961, eff. 7-2-10.)
| 22 | | Section 90. The State Mandates Act is amended by adding | 23 | | Section 8.35 as follows: | 24 | | (30 ILCS 805/8.35 new) |
| | | HB3253 | - 14 - | LRB097 10456 JDS 50688 b |
|
| 1 | | Sec. 8.35. Exempt mandate. Notwithstanding Sections 6 and 8 | 2 | | of this Act, no reimbursement by the State is required for the | 3 | | implementation of any mandate created by this amendatory Act of | 4 | | the 97th General Assembly.
| 5 | | Section 99. Effective date. This Act takes effect upon | 6 | | becoming law.
|
|