Full Text of HB4622 97th General Assembly
HB4622 97TH GENERAL ASSEMBLY |
| | 97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012 HB4622 Introduced 2/1/2012, by Rep. Elaine Nekritz SYNOPSIS AS INTRODUCED: |
| 40 ILCS 5/7-170 | from Ch. 108 1/2, par. 7-170 | 40 ILCS 5/7-171 | from Ch. 108 1/2, par. 7-171 | 40 ILCS 5/7-172 | from Ch. 108 1/2, par. 7-172 | 40 ILCS 5/7-172.2 | from Ch. 108 1/2, par. 7-172.2 | 40 ILCS 5/7-173 | from Ch. 108 1/2, par. 7-173 | 40 ILCS 5/7-220 | from Ch. 108 1/2, par. 7-220 | 30 ILCS 805/8.36 new | |
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Amends the Illinois Municipal Retirement Fund (IMRF) Article of the Illinois Pension Code. Provides that revenue generated by specified tax levies may not be used to finance employees' contributions for Federal Social Security taxes. Removes provisions requiring participating municipalities and participating
instrumentalities to pay into the Fund employee contributions for Federal
Social Security taxes. Makes other technical changes. 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 |
| | A BILL FOR |
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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 7-170, 7-171, 7-172, 7-172.2, 7-173, and 7-220 as | 6 | | follows:
| 7 | | (40 ILCS 5/7-170) (from Ch. 108 1/2, par. 7-170)
| 8 | | Sec. 7-170. Federal Social Security coverage. | 9 | | (a) It is declared to be the policy and purpose to extend | 10 | | to covered
employees as defined in Section 7-138, the benefits | 11 | | of the Federal Old
Age and Survivors Insurance System as | 12 | | authorized by the Federal Social
Security Act and amendments | 13 | | thereto. To effect this, the board shall
take such action as | 14 | | may be required by applicable State and Federal laws
or | 15 | | regulations.
| 16 | | (b) The board shall execute an agreement with the State | 17 | | Agency to
secure coverage of covered employees as provided in | 18 | | paragraph (a) of
this section.
| 19 | | (c) Each participating municipality and each participating | 20 | | instrumentality
shall remit payment of contributions for | 21 | | Social Security purposes on behalf
of covered employees and | 22 | | covered municipalities and participating
instrumentalities
as | 23 | | required by applicable State and federal laws and regulations.
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| 1 | | (d) Contributions of covered employees to this fund for | 2 | | Federal
Social Security purposes shall be paid in such
amounts | 3 | | and at such time as required by applicable State and federal | 4 | | laws and regulations.
| 5 | | (e) (Blank).
| 6 | | (f) The board shall maintain such records and submit such | 7 | | reports as may
be required by applicable State and Federal laws | 8 | | or regulations.
| 9 | | (Source: P.A. 96-1084, eff. 7-16-10.)
| 10 | | (40 ILCS 5/7-171) (from Ch. 108 1/2, par. 7-171)
| 11 | | Sec. 7-171. Finance; taxes.
| 12 | | (a) Each municipality other than a school district shall
| 13 | | appropriate an amount sufficient to provide for the current
| 14 | | municipality contributions required by Section 7-172 of
this | 15 | | Article, for the fiscal year for which the appropriation is | 16 | | made
and all amounts due for municipal contributions for | 17 | | previous years.
Those municipalities which have been assessed | 18 | | an annual amount to
amortize its unfunded obligation, as | 19 | | provided in subparagraph 4 of
paragraph (a) of Section 7-172 of | 20 | | this Article, shall include in the
appropriation an amount | 21 | | sufficient to pay the amount assessed. The
appropriation shall | 22 | | be based upon an estimate of assets available for
municipality | 23 | | contributions and liabilities therefor for the fiscal year
for | 24 | | which appropriations are to be made, including funds available | 25 | | from
levies for this purpose in prior years.
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| 1 | | (b) For the purpose of providing monies for municipality
| 2 | | contributions, beginning for the year in which a municipality | 3 | | is
included in this fund:
| 4 | | (1) A municipality other than a school district may | 5 | | levy a tax
which shall not exceed the amount appropriated | 6 | | for municipality contributions.
| 7 | | (2) A school district may levy a tax in an amount | 8 | | reasonably calculated
at the time of the levy to provide | 9 | | for the municipality contributions required
under Section | 10 | | 7-172 of this Article for the fiscal years for which | 11 | | revenues
from the levy will be received and all amounts due | 12 | | for municipal contributions
for previous years. Any levy | 13 | | adopted before the effective date of this
amendatory Act of | 14 | | 1995 by a school district shall be considered valid and
| 15 | | authorized to the extent that the amount was reasonably | 16 | | calculated at the time
of the levy to provide for the | 17 | | municipality contributions required under
Section 7-172 | 18 | | for the fiscal years for which revenues from the levy will | 19 | | be
received and all amounts due for municipal contributions | 20 | | for previous years.
In no event shall a budget adopted by a | 21 | | school district limit a levy of that
school district | 22 | | adopted under this Section.
| 23 | | (c) Any county which is served by a regional office of | 24 | | education that
serves 2 or more
counties may include in its
| 25 | | appropriation an amount sufficient to provide its | 26 | | proportionate share of the
municipality contributions for that |
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| 1 | | regional office of education. The tax levy authorized by this | 2 | | Section may include an amount
necessary to provide monies for | 3 | | this contribution.
| 4 | | (d) Any county that is a part of a multiple-county health | 5 | | department
or consolidated health department which is formed | 6 | | under "An Act in
relation to the establishment and maintenance | 7 | | of county and
multiple-county public health departments", | 8 | | approved July 9, 1943, as
amended, and which is a participating | 9 | | instrumentality may include in the
county's appropriation an | 10 | | amount sufficient to provide its proportionate
share of | 11 | | municipality contributions of the department. The tax levy
| 12 | | authorized by this Section may include the amount necessary to | 13 | | provide
monies for this contribution.
| 14 | | (d-5) A school district participating in a special | 15 | | education joint
agreement created under Section 10-22.31 of the | 16 | | School Code that is a
participating instrumentality may include | 17 | | in the school district's
tax levy under this Section an amount | 18 | | sufficient to provide its
proportionate share of the | 19 | | municipality contributions for current and prior
service by | 20 | | employees of the participating instrumentality created under | 21 | | the
joint agreement.
| 22 | | (e) Such tax shall be levied and collected in like manner, | 23 | | with the
general taxes of the municipality and shall be in | 24 | | addition to all other
taxes which the municipality is now or | 25 | | may hereafter be authorized to
levy upon all taxable property | 26 | | therein, and shall be exclusive of and in
addition to the |
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| 1 | | amount of tax levied for general purposes under Section
8-3-1 | 2 | | of the "Illinois Municipal Code", approved May 29, 1961, as
| 3 | | amended, or under any other law or laws which may limit the | 4 | | amount of
tax which the municipality may levy for general | 5 | | purposes. The tax may
be levied by the governing body of the | 6 | | municipality without being
authorized as being additional to | 7 | | all other taxes by a vote of the
people of the municipality.
| 8 | | (f) The county clerk of the county in which any such | 9 | | municipality is
located, in reducing tax levies shall not | 10 | | consider any such tax as a
part of the general tax levy for | 11 | | municipality purposes, and shall not
include the same in the | 12 | | limitation of any other tax rate which may be
extended.
| 13 | | (g) The amount of the tax to be levied in any year shall, | 14 | | within the
limits herein prescribed, be determined by the | 15 | | governing body of the
respective municipality.
| 16 | | (h) The revenue derived from any such tax levy shall be | 17 | | used only
for the contributions required under Section 7-172 | 18 | | purposes specified in this Article and, as collected, shall be
| 19 | | paid to the treasurer of the municipality levying the tax. | 20 | | Monies
received by a county treasurer for use in making | 21 | | contributions to a regional
office of education for its
| 22 | | municipality contributions shall be held by him for that | 23 | | purpose and paid to
the regional office of education in the | 24 | | same manner as other
monies appropriated for the expense of the | 25 | | regional office.
| 26 | | (Source: P.A. 96-1084, eff. 7-16-10.)
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| 1 | | (40 ILCS 5/7-172) (from Ch. 108 1/2, par. 7-172)
| 2 | | Sec. 7-172. Contributions by participating municipalities | 3 | | and
participating instrumentalities.
| 4 | | (a) Each participating municipality and each participating
| 5 | | instrumentality shall make payment to the fund as follows:
| 6 | | 1. municipality contributions in an amount determined | 7 | | by applying
the municipality contribution rate to each | 8 | | payment of earnings paid to
each of its participating | 9 | | employees;
| 10 | | 2. an amount equal to the employee contributions | 11 | | provided by paragraph paragraphs
(a) and (b) of Section | 12 | | 7-173, whether or not the employee contributions are
| 13 | | withheld as permitted by that Section;
| 14 | | 3. all accounts receivable, together with interest | 15 | | charged thereon,
as provided in Section 7-209;
| 16 | | 4. if it has no participating employees with current | 17 | | earnings, an
amount payable which, over a closed period of | 18 | | 20 years for participating municipalities and 10 years for | 19 | | participating instrumentalities, will amortize, at the | 20 | | effective rate for
that year, any unfunded obligation. The | 21 | | unfunded obligation shall be computed as provided in | 22 | | paragraph 2 of subsection (b); | 23 | | 5. if it has fewer than 7 participating employees or a | 24 | | negative balance in its municipality reserve, the greater | 25 | | of (A) an amount payable that, over a period of 20 years, |
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| 1 | | will amortize at the effective rate for that year any | 2 | | unfunded obligation, computed as provided in paragraph 2 of | 3 | | subsection (b) or (B) the amount required by paragraph 1 of | 4 | | this subsection (a).
| 5 | | (b) A separate municipality contribution rate shall be | 6 | | determined
for each calendar year for all participating | 7 | | municipalities together
with all instrumentalities thereof. | 8 | | The municipality contribution rate
shall be determined for | 9 | | participating instrumentalities as if they were
participating | 10 | | municipalities. The municipality contribution rate shall
be | 11 | | the sum of the following percentages:
| 12 | | 1. The percentage of earnings of all the participating | 13 | | employees of all
participating municipalities and | 14 | | participating instrumentalities which, if paid
over the | 15 | | entire period of their service, will be sufficient when | 16 | | combined with
all employee contributions available for the | 17 | | payment of benefits, to provide
all annuities for | 18 | | participating employees, and the $3,000 death benefit
| 19 | | payable under Sections 7-158 and 7-164, such percentage to | 20 | | be known as the
normal cost rate.
| 21 | | 2. The percentage of earnings of the participating | 22 | | employees of each
participating municipality and | 23 | | participating instrumentalities necessary
to adjust for | 24 | | the difference between the present value of all benefits,
| 25 | | excluding temporary and total and permanent disability and | 26 | | death benefits, to
be provided for its participating |
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| 1 | | employees and the sum of its accumulated
municipality | 2 | | contributions and the accumulated employee contributions | 3 | | and the
present value of expected future employee and | 4 | | municipality contributions
pursuant to subparagraph 1 of | 5 | | this paragraph (b). This adjustment shall be
spread over | 6 | | the remainder of the period that is allowable under | 7 | | generally
accepted accounting principles.
| 8 | | 3. The percentage of earnings of the participating | 9 | | employees of all
municipalities and participating | 10 | | instrumentalities necessary to provide
the present value | 11 | | of all temporary and total and permanent disability
| 12 | | benefits granted during the most recent year for which | 13 | | information is
available.
| 14 | | 4. The percentage of earnings of the participating | 15 | | employees of all
participating municipalities and | 16 | | participating instrumentalities
necessary to provide the | 17 | | present value of the net single sum death
benefits expected | 18 | | to become payable from the reserve established under
| 19 | | Section 7-206 during the year for which this rate is fixed.
| 20 | | 5. The percentage of earnings necessary to meet any | 21 | | deficiency
arising in the Terminated Municipality Reserve.
| 22 | | (c) A separate municipality contribution rate shall be | 23 | | computed for
each participating municipality or participating | 24 | | instrumentality
for its sheriff's law enforcement employees.
| 25 | | A separate municipality contribution rate shall be | 26 | | computed for the
sheriff's law enforcement employees of each |
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| 1 | | forest preserve district that
elects to have such employees. | 2 | | For the period from January 1, 1986 to
December 31, 1986, such | 3 | | rate shall be the forest preserve district's regular
rate plus | 4 | | 2%.
| 5 | | In the event that the Board determines that there is an | 6 | | actuarial
deficiency in the account of any municipality with | 7 | | respect to a person who
has elected to participate in the Fund | 8 | | under Section 3-109.1 of this Code,
the Board may adjust the | 9 | | municipality's contribution rate so as to make up
that | 10 | | deficiency over such reasonable period of time as the Board may | 11 | | determine.
| 12 | | (d) The Board may establish a separate municipality | 13 | | contribution
rate for all employees who are program | 14 | | participants employed under the
federal Comprehensive | 15 | | Employment Training Act by all of the
participating | 16 | | municipalities and instrumentalities. The Board may also
| 17 | | provide that, in lieu of a separate municipality rate for these
| 18 | | employees, a portion of the municipality contributions for such | 19 | | program
participants shall be refunded or an extra charge | 20 | | assessed so that the
amount of municipality contributions | 21 | | retained or received by the fund
for all CETA program | 22 | | participants shall be an amount equal to that which
would be | 23 | | provided by the separate municipality contribution rate for all
| 24 | | such program participants. Refunds shall be made to prime | 25 | | sponsors of
programs upon submission of a claim therefor and | 26 | | extra charges shall be
assessed to participating |
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| 1 | | municipalities and instrumentalities. In
establishing the | 2 | | municipality contribution rate as provided in paragraph
(b) of | 3 | | this Section, the use of a separate municipality contribution
| 4 | | rate for program participants or the refund of a portion of the
| 5 | | municipality contributions, as the case may be, may be | 6 | | considered.
| 7 | | (e) Computations of municipality contribution rates for | 8 | | the
following calendar year shall be made prior to the | 9 | | beginning of each
year, from the information available at the | 10 | | time the computations are
made, and on the assumption that the | 11 | | employees in each participating
municipality or participating | 12 | | instrumentality at such time will continue
in service until the | 13 | | end of such calendar year at their respective rates
of earnings | 14 | | at such time.
| 15 | | (f) Any municipality which is the recipient of State | 16 | | allocations
representing that municipality's contributions for | 17 | | retirement annuity
purposes on behalf of its employees as | 18 | | provided in Section 12-21.16 of
the Illinois Public Aid Code | 19 | | shall pay the allocations so
received to the Board for such | 20 | | purpose. Estimates of State allocations to
be received during | 21 | | any taxable year shall be considered in the
determination of | 22 | | the municipality's tax rate for that year under Section
7-171. | 23 | | If a special tax is levied under Section 7-171, none of the
| 24 | | proceeds may be used to reimburse the municipality for the | 25 | | amount of State
allocations received and paid to the Board. Any | 26 | | multiple-county or
consolidated health department which |
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| 1 | | receives contributions from a county
under Section 11.2 of "An | 2 | | Act in relation to establishment and maintenance
of county and | 3 | | multiple-county health departments", approved July 9, 1943,
as | 4 | | amended, or distributions under Section 3 of the Department of | 5 | | Public
Health Act, shall use these only for municipality | 6 | | contributions by the
health department.
| 7 | | (g) Municipality contributions for the several purposes | 8 | | specified
shall, for township treasurers and employees in the | 9 | | offices of the
township treasurers who meet the qualifying | 10 | | conditions for coverage
hereunder, be allocated among the | 11 | | several school districts and parts of
school districts serviced | 12 | | by such treasurers and employees in the
proportion which the | 13 | | amount of school funds of each district or part of
a district | 14 | | handled by the treasurer bears to the total amount of all
| 15 | | school funds handled by the treasurer.
| 16 | | From the funds subject to allocation among districts and | 17 | | parts of
districts pursuant to the School Code, the trustees | 18 | | shall withhold the
proportionate share of the liability for | 19 | | municipality contributions imposed
upon such districts by this | 20 | | Section, in respect to such township treasurers
and employees | 21 | | and remit the same to the Board.
| 22 | | The municipality contribution rate for an educational | 23 | | service center shall
initially be the same rate for each year | 24 | | as the regional office of
education or school district
which | 25 | | serves as its administrative agent. When actuarial data become
| 26 | | available, a separate rate shall be established as provided in |
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| 1 | | subparagraph
(i) of this Section.
| 2 | | The municipality contribution rate for a public agency, | 3 | | other than a
vocational education cooperative, formed under the | 4 | | Intergovernmental
Cooperation Act shall initially be the | 5 | | average rate for the municipalities
which are parties to the | 6 | | intergovernmental agreement. When actuarial data
become | 7 | | available, a separate rate shall be established as provided in
| 8 | | subparagraph (i) of this Section.
| 9 | | (h) Each participating municipality and participating
| 10 | | instrumentality shall make the contributions in the amounts | 11 | | provided in
this Section in the manner prescribed from time to | 12 | | time by the Board and
all such contributions shall be | 13 | | obligations of the respective
participating municipalities and | 14 | | participating instrumentalities to this
fund. The failure to | 15 | | deduct any employee contributions shall not
relieve the | 16 | | participating municipality or participating instrumentality
of | 17 | | its obligation to this fund. Delinquent payments of | 18 | | contributions
due under this Section may, with interest, be | 19 | | recovered by civil action
against the participating | 20 | | municipalities or participating
instrumentalities. | 21 | | Municipality contributions, other than the amount
necessary | 22 | | for employee contributions and Social Security contributions , | 23 | | for
periods of service by employees from whose earnings no | 24 | | deductions were made
for employee contributions to the fund, | 25 | | may be charged to the municipality
reserve for the municipality | 26 | | or participating instrumentality.
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| 1 | | (i) Contributions by participating instrumentalities shall | 2 | | be
determined as provided herein except that the percentage | 3 | | derived under
subparagraph 2 of paragraph (b) of this Section, | 4 | | and the amount payable
under subparagraph 4 of paragraph (a) of | 5 | | this Section, shall be based on
an amortization period of 10 | 6 | | years.
| 7 | | (j) Notwithstanding the other provisions of this Section, | 8 | | the additional unfunded liability accruing as a result of this | 9 | | amendatory Act of the 94th General Assembly
shall be amortized | 10 | | over a period of 30 years beginning on January 1 of the
second | 11 | | calendar year following the calendar year in which this | 12 | | amendatory Act takes effect, except that the employer may | 13 | | provide for a longer amortization period by adopting a | 14 | | resolution or ordinance specifying a 35-year or 40-year period | 15 | | and submitting a certified copy of the ordinance or resolution | 16 | | to the fund no later than June 1 of the calendar year following | 17 | | the calendar year in which this amendatory Act takes effect.
| 18 | | (k) If the amount of a participating employee's reported | 19 | | earnings for any of the 12-month periods used to determine the | 20 | | final rate of earnings exceeds the employee's 12 month reported | 21 | | earnings with the same employer for the previous year by the | 22 | | greater of 6% or 1.5 times the annual increase in the Consumer | 23 | | Price Index-U, as established by the United States Department | 24 | | of Labor for the preceding September, the participating | 25 | | municipality or participating instrumentality that paid those | 26 | | earnings shall pay to the Fund, in addition to any other |
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| 1 | | contributions required under this Article, the present value of | 2 | | the increase in the pension resulting from the portion of the | 3 | | increase in salary that is in excess of the greater of 6% or | 4 | | 1.5 times the annual increase in the Consumer Price Index-U, as | 5 | | determined by the Fund. This present value shall be computed on | 6 | | the basis of the actuarial assumptions and tables used in the | 7 | | most recent actuarial valuation of the Fund that is available | 8 | | at the time of the computation. | 9 | | Whenever it determines that a payment is or may be required | 10 | | under this subsection (k), the fund shall calculate the amount | 11 | | of the payment and bill the participating municipality or | 12 | | participating instrumentality for that amount. The bill shall | 13 | | specify the calculations used to determine the amount due. If | 14 | | the participating municipality or participating | 15 | | instrumentality disputes the amount of the bill, it may, within | 16 | | 30 days after receipt of the bill, apply to the fund in writing | 17 | | for a recalculation. The application must specify in detail the | 18 | | grounds of the dispute. Upon receiving a timely application for | 19 | | recalculation, the fund shall review the application and, if | 20 | | appropriate, recalculate the amount due.
The participating | 21 | | municipality and participating instrumentality contributions | 22 | | required under this subsection (k) may be paid in the form of a | 23 | | lump sum within 90 days after receipt of the bill. If the | 24 | | participating municipality and participating instrumentality | 25 | | contributions are not paid within 90 days after receipt of the | 26 | | bill, then interest will be charged at a rate equal to the |
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| 1 | | fund's annual actuarially assumed rate of return on investment | 2 | | compounded annually from the 91st day after receipt of the | 3 | | bill. Payments must be concluded within 3 years after receipt | 4 | | of the bill by the participating municipality or participating | 5 | | instrumentality. | 6 | | When assessing payment for any amount due under this | 7 | | subsection (k), the fund shall exclude earnings increases | 8 | | resulting from overload or overtime earnings. | 9 | | When assessing payment for any amount due under this | 10 | | subsection (k), the fund shall also exclude earnings increases | 11 | | attributable to standard employment promotions resulting in | 12 | | increased responsibility and workload. | 13 | | This subsection (k) does not apply to earnings increases | 14 | | paid to individuals under contracts or collective bargaining | 15 | | agreements entered into, amended, or renewed before January 1, | 16 | | 2012 ( the effective date of Public Act 97-609) this amendatory | 17 | | Act of the 97th General Assembly , earnings increases paid to | 18 | | members who are 10 years or more from retirement eligibility, | 19 | | or earnings increases resulting from an increase in the number | 20 | | of hours required to be worked. | 21 | | When assessing payment for any amount due under this | 22 | | subsection (k), the fund shall also exclude earnings | 23 | | attributable to personnel policies adopted before January 1, | 24 | | 2012 ( the effective date of Public Act 97-609) this amendatory | 25 | | Act of the 97th General Assembly as long as those policies are | 26 | | not applicable to employees who begin service on or after |
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| 1 | | January 1, 2012 ( the effective date of Public Act 97-609) this | 2 | | amendatory Act of the 97th General Assembly . | 3 | | (Source: P.A. 96-1084, eff. 7-16-10; 96-1140, eff. 7-21-10; | 4 | | 97-333, eff. 8-12-11; 97-609, eff. 1-1-12.)
| 5 | | (40 ILCS 5/7-172.2) (from Ch. 108 1/2, par. 7-172.2)
| 6 | | Sec. 7-172.2.
In addition to the payments otherwise | 7 | | required by this
Article, each participating municipality and | 8 | | each participating
instrumentality shall make payment of | 9 | | Social Security contributions and
medicare taxes in the amounts | 10 | | and in the manner provided by law. Each employee shall make | 11 | | contributions for Federal Social Security and medicare taxes, | 12 | | for periods during which he or she is a covered employee, as | 13 | | required by the Social Security Enabling Act and State and | 14 | | federal law.
| 15 | | (Source: P.A. 84-1472.)
| 16 | | (40 ILCS 5/7-173) (from Ch. 108 1/2, par. 7-173)
| 17 | | Sec. 7-173. Contributions by employees.
| 18 | | (a) Each participating employee shall make contributions | 19 | | to the fund as
follows:
| 20 | | 1. For retirement annuity purposes, normal | 21 | | contributions of 3 3/4%
of earnings.
| 22 | | 2. Additional contributions of such percentages of | 23 | | each payment of
earnings, as shall be elected by the | 24 | | employee for retirement annuity
purposes, but not in excess |
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| 1 | | of 10%. The selected rate shall be
applicable to all | 2 | | earnings paid following receipt by the Board of written | 3 | | notice of election to
make such contributions. Additional | 4 | | contributions at the selected rate
shall be made | 5 | | concurrently with normal contributions.
| 6 | | 3. Survivor contributions, by each participating | 7 | | employee, of 3/4%
of each payment of earnings.
| 8 | | (b) (Blank) Each employee shall make contributions for | 9 | | Federal
Social Security taxes, for periods during which he is a | 10 | | covered
employee, as required by the Social Security Enabling | 11 | | Act and State and federal law. For
participating employees, | 12 | | such contributions shall be in addition to
those required under | 13 | | paragraph (a) of this Section .
| 14 | | (c) Contributions shall be deducted from each | 15 | | corresponding payment
of earnings paid to each employee and | 16 | | shall be remitted to the board by
the participating | 17 | | municipality or participating instrumentality making
such | 18 | | payment. The remittance, together with a report of the earnings
| 19 | | and contributions shall be made as directed by the board. For | 20 | | township
treasurers and employees of township treasurers | 21 | | qualifying as employees
hereunder, the contributions herein | 22 | | required as deductions from salary
shall be withheld by the | 23 | | school township trustees from funds available
for the payment | 24 | | of the compensation of such treasurers and employees as
| 25 | | provided in the School Code and remitted to the board.
| 26 | | (d) An employee who has made additional contributions under
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| 1 | | paragraph (a)2 of this Section may upon retirement or at any | 2 | | time prior
thereto, elect to withdraw the total of such | 3 | | additional contributions
including interest credited thereon | 4 | | to the end of the preceding calendar
year.
| 5 | | (e) Failure to make the deductions for employee | 6 | | contributions
provided in paragraph (c) of this Section shall | 7 | | not relieve the employee
from liability for such contributions. | 8 | | The amount of such liability may
be deducted, with interest | 9 | | charged under Section 7-209, from any
annuities or benefits | 10 | | payable hereunder to the employee or any other
person receiving | 11 | | an annuity or benefit by reason of such employee's
| 12 | | participation.
| 13 | | (f) A participating employee who has at least 40 years of | 14 | | creditable
service in the Fund may elect to cease making the | 15 | | contributions required
under this Section. The status of the | 16 | | employee under this Article shall be
unaffected by this | 17 | | election, except that the employee shall not receive any
| 18 | | additional creditable service for the periods of employment | 19 | | following the
election. An election under this subsection | 20 | | relieves the employer from
making additional employer | 21 | | contributions in relation to that employee.
| 22 | | (Source: P.A. 96-1084, eff. 7-16-10; 96-1258, eff. 7-23-10; | 23 | | 97-333, eff. 8-12-11.)
| 24 | | (40 ILCS 5/7-220) (from Ch. 108 1/2, par. 7-220)
| 25 | | Sec. 7-220. Administrative review. The provisions of the |
| | | HB4622 | - 19 - | LRB097 16031 JDS 61183 b |
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| 1 | | Administrative Review Law, and all amendments and
| 2 | | modifications thereof and the rules adopted
pursuant thereto | 3 | | shall apply to and govern all proceedings for the judicial
| 4 | | review of final administrative decisions of the retirement | 5 | | board provided
for under this Article. The term "administrative | 6 | | decision" is as defined in
Section 3-101 of the Code of Civil | 7 | | Procedure. The venue for actions brought under the | 8 | | Administrative Review Law shall be any county in which the | 9 | | Board maintains an office or the county in which the member's | 10 | | plaintiff's employing participating municipality or | 11 | | participating instrumentality has its main office.
| 12 | | (Source: P.A. 96-1140, eff. 7-21-10.)
| 13 | | Section 90. The State Mandates Act is amended by adding | 14 | | Section 8.36 as follows: | 15 | | (30 ILCS 805/8.36 new) | 16 | | Sec. 8.36. Exempt mandate. Notwithstanding Sections 6 and 8 | 17 | | of this Act, no reimbursement by the State is required for the | 18 | | implementation of any mandate created by this amendatory Act of | 19 | | the 97th General Assembly.
| 20 | | Section 99. Effective date. This Act takes effect upon | 21 | | becoming law.
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