Full Text of HB3253 97th General Assembly
HB3253enr 97TH GENERAL ASSEMBLY |
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| 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 |
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| 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 |
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| 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 |
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| 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. |
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| 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 |
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| 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 |
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| 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. |
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| 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 |
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| 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
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| 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 |
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| 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 |
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| 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 |
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| 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) |
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| 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.
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