Full Text of SB2896 99th General Assembly
SB2896eng 99TH 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 7-144 and 7-172 as follows:
| 6 | | (40 ILCS 5/7-144) (from Ch. 108 1/2, par. 7-144)
| 7 | | Sec. 7-144. Retirement annuities - Suspended during | 8 | | employment.
| 9 | | (a) If any person
receiving any annuity again becomes an | 10 | | employee
and receives earnings from employment in a position | 11 | | requiring him, or entitling him to elect, to
become a | 12 | | participating employee, then the annuity payable to such | 13 | | employee
shall be suspended as of the 1st day of the month | 14 | | coincidental with or
next following the date upon which such | 15 | | person becomes such an employee, unless the person is | 16 | | authorized under subsection (b) of Section 7-137.1 of this Code | 17 | | to continue receiving a retirement annuity during that period.
| 18 | | Upon proper qualification of the participating employee | 19 | | payment of such
annuity may be resumed on the 1st day of the | 20 | | month following such
qualification and upon proper application | 21 | | therefor. The participating
employee in such case shall be | 22 | | entitled to a supplemental annuity
arising from service and | 23 | | credits earned subsequent to such re-entry as a
participating |
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| 1 | | employee.
| 2 | | Notwithstanding any other provision of this Article, an | 3 | | annuitant shall be considered a participating employee if he or | 4 | | she returns to work as an employee with a participating | 5 | | employer and works more than 599 hours annually (or 999 hours | 6 | | annually with a participating employer that has adopted a | 7 | | resolution pursuant to subsection (e) of Section 7-137 of this | 8 | | Code). Each of these annual periods shall commence on the month | 9 | | and day upon which the annuitant is first employed with the | 10 | | participating employer following the effective date of the | 11 | | annuity. | 12 | | (a-5) If any annuitant under this Article must be | 13 | | considered a participating employee per the provisions of | 14 | | subsection (a) of this Section, and the participating | 15 | | municipality or participating instrumentality that employs or | 16 | | re-employs that annuitant knowingly fails to notify the Board | 17 | | to suspend the annuity, the participating municipality or | 18 | | participating instrumentality may be required to reimburse the | 19 | | Fund for an amount up to one-half of the total of any annuity | 20 | | payments made to the annuitant after the date the annuity | 21 | | should have been suspended, as determined by the Board. In no | 22 | | case shall the total amount repaid by the annuitant plus any | 23 | | amount reimbursed by the employer to the Fund be more than the | 24 | | total of all annuity payments made to the annuitant after the | 25 | | date the annuity should have been suspended. This subsection | 26 | | shall not apply if the annuitant returned to work for the |
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| 1 | | employer for less than 12 months. | 2 | | The Fund shall notify all annuitants that they must notify | 3 | | the Fund immediately if they return to work for any | 4 | | participating employer. The notification by the Fund shall | 5 | | occur upon retirement and no less than annually thereafter in a | 6 | | format determined by the Fund. The Fund shall also develop and | 7 | | maintain a system to track annuitants who have returned to work | 8 | | and notify the participating employer and annuitant at least | 9 | | annually of the limitations on returning to work under this | 10 | | Section. | 11 | | (b) Supplemental annuities to persons who return to service | 12 | | for less
than 48 months shall be computed under the provisions | 13 | | of Sections 7-141,
7-142 and 7-143. In determining whether an | 14 | | employee is eligible for an
annuity which requires a minimum | 15 | | period of service, his entire period of
service shall be taken | 16 | | into consideration but the supplemental annuity
shall be based | 17 | | on earnings and service in the supplemental period only.
The | 18 | | effective date of the suspended and supplemental annuity for | 19 | | the
purpose of increases after retirement shall be considered | 20 | | to be the
effective date of the suspended annuity.
| 21 | | (c) Supplemental annuities to persons who return to service | 22 | | for 48
months or more shall be a monthly amount determined as | 23 | | follows:
| 24 | | (1) An amount shall be computed under subparagraph b of | 25 | | paragraph
(1) of subsection (a) of Section 7-142, | 26 | | considering all of the service
credits of the employee;
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| 1 | | (2) The actuarial value in monthly payments for life of | 2 | | the annuity
payments made before suspension shall be | 3 | | determined and subtracted from
the amount determined in (1) | 4 | | above;
| 5 | | (3) The monthly amount of the suspended annuity, with | 6 | | any applicable
increases after retirement computed from | 7 | | the effective date to the date
of reinstatement, shall be | 8 | | subtracted from the amount determined in (2)
above and the | 9 | | remainder shall be the amount of the supplemental annuity
| 10 | | provided that this amount shall not be less than the amount | 11 | | computed under
subsection (b) of this Section.
| 12 | | (4) The suspended annuity shall be reinstated at an | 13 | | amount including
any increases after retirement from the | 14 | | effective date to date of
reinstatement.
| 15 | | (5) The effective date of the combined suspended and | 16 | | supplemental
annuities for the purposes of increases after | 17 | | retirement shall be
considered to be the effective date of | 18 | | the supplemental annuity.
| 19 | | (Source: P.A. 97-328, eff. 8-12-11; 97-609, eff. 1-1-12; | 20 | | 98-389, eff. 8-16-13.)
| 21 | | (40 ILCS 5/7-172) (from Ch. 108 1/2, par. 7-172)
| 22 | | Sec. 7-172. Contributions by participating municipalities | 23 | | and
participating instrumentalities.
| 24 | | (a) Each participating municipality and each participating
| 25 | | instrumentality shall make payment to the fund as follows:
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| 1 | | 1. municipality contributions in an amount determined | 2 | | by applying
the municipality contribution rate to each | 3 | | payment of earnings paid to
each of its participating | 4 | | employees;
| 5 | | 2. an amount equal to the employee contributions | 6 | | provided by paragraph
(a) of Section 7-173, whether or not | 7 | | the employee contributions are
withheld as permitted by | 8 | | that Section;
| 9 | | 3. all accounts receivable, together with interest | 10 | | charged thereon,
as provided in Section 7-209 , and any | 11 | | amounts due under subsection (a-5) of Section 7-144 ;
| 12 | | 4. if it has no participating employees with current | 13 | | earnings, an
amount payable which, over a closed period of | 14 | | 20 years for participating municipalities and 10 years for | 15 | | participating instrumentalities, will amortize, at the | 16 | | effective rate for
that year, any unfunded obligation. The | 17 | | unfunded obligation shall be computed as provided in | 18 | | paragraph 2 of subsection (b); | 19 | | 5. if it has fewer than 7 participating employees or a | 20 | | negative balance in its municipality reserve, the greater | 21 | | of (A) an amount payable that, over a period of 20 years, | 22 | | will amortize at the effective rate for that year any | 23 | | unfunded obligation, computed as provided in paragraph 2 of | 24 | | subsection (b) or (B) the amount required by paragraph 1 of | 25 | | this subsection (a).
| 26 | | (b) A separate municipality contribution rate shall be |
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| 1 | | determined
for each calendar year for all participating | 2 | | municipalities together
with all instrumentalities thereof. | 3 | | The municipality contribution rate
shall be determined for | 4 | | participating instrumentalities as if they were
participating | 5 | | municipalities. The municipality contribution rate shall
be | 6 | | the sum of the following percentages:
| 7 | | 1. The percentage of earnings of all the participating | 8 | | employees of all
participating municipalities and | 9 | | participating instrumentalities which, if paid
over the | 10 | | entire period of their service, will be sufficient when | 11 | | combined with
all employee contributions available for the | 12 | | payment of benefits, to provide
all annuities for | 13 | | participating employees, and the $3,000 death benefit
| 14 | | payable under Sections 7-158 and 7-164, such percentage to | 15 | | be known as the
normal cost rate.
| 16 | | 2. The percentage of earnings of the participating | 17 | | employees of each
participating municipality and | 18 | | participating instrumentalities necessary
to adjust for | 19 | | the difference between the present value of all benefits,
| 20 | | excluding temporary and total and permanent disability and | 21 | | death benefits, to
be provided for its participating | 22 | | employees and the sum of its accumulated
municipality | 23 | | contributions and the accumulated employee contributions | 24 | | and the
present value of expected future employee and | 25 | | municipality contributions
pursuant to subparagraph 1 of | 26 | | this paragraph (b). This adjustment shall be
spread over a |
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| 1 | | period determined by the Board, not to exceed 30 years for | 2 | | participating municipalities or 10 years for participating | 3 | | instrumentalities.
| 4 | | 3. The percentage of earnings of the participating | 5 | | employees of all
municipalities and participating | 6 | | instrumentalities necessary to provide
the present value | 7 | | of all temporary and total and permanent disability
| 8 | | benefits granted during the most recent year for which | 9 | | information is
available.
| 10 | | 4. The percentage of earnings of the participating | 11 | | employees of all
participating municipalities and | 12 | | participating instrumentalities
necessary to provide the | 13 | | present value of the net single sum death
benefits expected | 14 | | to become payable from the reserve established under
| 15 | | Section 7-206 during the year for which this rate is fixed.
| 16 | | 5. The percentage of earnings necessary to meet any | 17 | | deficiency
arising in the Terminated Municipality Reserve.
| 18 | | (c) A separate municipality contribution rate shall be | 19 | | computed for
each participating municipality or participating | 20 | | instrumentality
for its sheriff's law enforcement employees.
| 21 | | A separate municipality contribution rate shall be | 22 | | computed for the
sheriff's law enforcement employees of each | 23 | | forest preserve district that
elects to have such employees. | 24 | | For the period from January 1, 1986 to
December 31, 1986, such | 25 | | rate shall be the forest preserve district's regular
rate plus | 26 | | 2%.
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| 1 | | In the event that the Board determines that there is an | 2 | | actuarial
deficiency in the account of any municipality with | 3 | | respect to a person who
has elected to participate in the Fund | 4 | | under Section 3-109.1 of this Code,
the Board may adjust the | 5 | | municipality's contribution rate so as to make up
that | 6 | | deficiency over such reasonable period of time as the Board may | 7 | | determine.
| 8 | | (d) The Board may establish a separate municipality | 9 | | contribution
rate for all employees who are program | 10 | | participants employed under the
federal Comprehensive | 11 | | Employment Training Act by all of the
participating | 12 | | municipalities and instrumentalities. The Board may also
| 13 | | provide that, in lieu of a separate municipality rate for these
| 14 | | employees, a portion of the municipality contributions for such | 15 | | program
participants shall be refunded or an extra charge | 16 | | assessed so that the
amount of municipality contributions | 17 | | retained or received by the fund
for all CETA program | 18 | | participants shall be an amount equal to that which
would be | 19 | | provided by the separate municipality contribution rate for all
| 20 | | such program participants. Refunds shall be made to prime | 21 | | sponsors of
programs upon submission of a claim therefor and | 22 | | extra charges shall be
assessed to participating | 23 | | municipalities and instrumentalities. In
establishing the | 24 | | municipality contribution rate as provided in paragraph
(b) of | 25 | | this Section, the use of a separate municipality contribution
| 26 | | rate for program participants or the refund of a portion of the
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| 1 | | municipality contributions, as the case may be, may be | 2 | | considered.
| 3 | | (e) Computations of municipality contribution rates for | 4 | | the
following calendar year shall be made prior to the | 5 | | beginning of each
year, from the information available at the | 6 | | time the computations are
made, and on the assumption that the | 7 | | employees in each participating
municipality or participating | 8 | | instrumentality at such time will continue
in service until the | 9 | | end of such calendar year at their respective rates
of earnings | 10 | | at such time.
| 11 | | (f) Any municipality which is the recipient of State | 12 | | allocations
representing that municipality's contributions for | 13 | | retirement annuity
purposes on behalf of its employees as | 14 | | provided in Section 12-21.16 of
the Illinois Public Aid Code | 15 | | shall pay the allocations so
received to the Board for such | 16 | | purpose. Estimates of State allocations to
be received during | 17 | | any taxable year shall be considered in the
determination of | 18 | | the municipality's tax rate for that year under Section
7-171. | 19 | | If a special tax is levied under Section 7-171, none of the
| 20 | | proceeds may be used to reimburse the municipality for the | 21 | | amount of State
allocations received and paid to the Board. Any | 22 | | multiple-county or
consolidated health department which | 23 | | receives contributions from a county
under Section 11.2 of "An | 24 | | Act in relation to establishment and maintenance
of county and | 25 | | multiple-county health departments", approved July 9, 1943,
as | 26 | | amended, or distributions under Section 3 of the Department of |
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| 1 | | Public
Health Act, shall use these only for municipality | 2 | | contributions by the
health department.
| 3 | | (g) Municipality contributions for the several purposes | 4 | | specified
shall, for township treasurers and employees in the | 5 | | offices of the
township treasurers who meet the qualifying | 6 | | conditions for coverage
hereunder, be allocated among the | 7 | | several school districts and parts of
school districts serviced | 8 | | by such treasurers and employees in the
proportion which the | 9 | | amount of school funds of each district or part of
a district | 10 | | handled by the treasurer bears to the total amount of all
| 11 | | school funds handled by the treasurer.
| 12 | | From the funds subject to allocation among districts and | 13 | | parts of
districts pursuant to the School Code, the trustees | 14 | | shall withhold the
proportionate share of the liability for | 15 | | municipality contributions imposed
upon such districts by this | 16 | | Section, in respect to such township treasurers
and employees | 17 | | and remit the same to the Board.
| 18 | | The municipality contribution rate for an educational | 19 | | service center shall
initially be the same rate for each year | 20 | | as the regional office of
education or school district
which | 21 | | serves as its administrative agent. When actuarial data become
| 22 | | available, a separate rate shall be established as provided in | 23 | | subparagraph
(i) of this Section.
| 24 | | The municipality contribution rate for a public agency, | 25 | | other than a
vocational education cooperative, formed under the | 26 | | Intergovernmental
Cooperation Act shall initially be the |
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| 1 | | average rate for the municipalities
which are parties to the | 2 | | intergovernmental agreement. When actuarial data
become | 3 | | available, a separate rate shall be established as provided in
| 4 | | subparagraph (i) of this Section.
| 5 | | (h) Each participating municipality and participating
| 6 | | instrumentality shall make the contributions in the amounts | 7 | | provided in
this Section in the manner prescribed from time to | 8 | | time by the Board and
all such contributions shall be | 9 | | obligations of the respective
participating municipalities and | 10 | | participating instrumentalities to this
fund. The failure to | 11 | | deduct any employee contributions shall not
relieve the | 12 | | participating municipality or participating instrumentality
of | 13 | | its obligation to this fund. Delinquent payments of | 14 | | contributions
due under this Section may, with interest, be | 15 | | recovered by civil action
against the participating | 16 | | municipalities or participating
instrumentalities. | 17 | | Municipality contributions, other than the amount
necessary | 18 | | for employee contributions, for
periods of service by employees | 19 | | from whose earnings no deductions were made
for employee | 20 | | contributions to the fund, may be charged to the municipality
| 21 | | reserve for the municipality or participating instrumentality.
| 22 | | (i) Contributions by participating instrumentalities shall | 23 | | be
determined as provided herein except that the percentage | 24 | | derived under
subparagraph 2 of paragraph (b) of this Section, | 25 | | and the amount payable
under subparagraph 4 of paragraph (a) of | 26 | | this Section, shall be based on
an amortization period of 10 |
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| 1 | | years.
| 2 | | (j) Notwithstanding the other provisions of this Section, | 3 | | the additional unfunded liability accruing as a result of this | 4 | | amendatory Act of the 94th General Assembly
shall be amortized | 5 | | over a period of 30 years beginning on January 1 of the
second | 6 | | calendar year following the calendar year in which this | 7 | | amendatory Act takes effect, except that the employer may | 8 | | provide for a longer amortization period by adopting a | 9 | | resolution or ordinance specifying a 35-year or 40-year period | 10 | | and submitting a certified copy of the ordinance or resolution | 11 | | to the fund no later than June 1 of the calendar year following | 12 | | the calendar year in which this amendatory Act takes effect.
| 13 | | (k) If the amount of a participating employee's reported | 14 | | earnings for any of the 12-month periods used to determine the | 15 | | final rate of earnings exceeds the employee's 12 month reported | 16 | | earnings with the same employer for the previous year by the | 17 | | greater of 6% or 1.5 times the annual increase in the Consumer | 18 | | Price Index-U, as established by the United States Department | 19 | | of Labor for the preceding September, the participating | 20 | | municipality or participating instrumentality that paid those | 21 | | earnings shall pay to the Fund, in addition to any other | 22 | | contributions required under this Article, the present value of | 23 | | the increase in the pension resulting from the portion of the | 24 | | increase in salary that is in excess of the greater of 6% or | 25 | | 1.5 times the annual increase in the Consumer Price Index-U, as | 26 | | determined by the Fund. This present value shall be computed on |
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| 1 | | the basis of the actuarial assumptions and tables used in the | 2 | | most recent actuarial valuation of the Fund that is available | 3 | | at the time of the computation. | 4 | | Whenever it determines that a payment is or may be required | 5 | | under this subsection (k), the fund shall calculate the amount | 6 | | of the payment and bill the participating municipality or | 7 | | participating instrumentality for that amount. The bill shall | 8 | | specify the calculations used to determine the amount due. If | 9 | | the participating municipality or participating | 10 | | instrumentality disputes the amount of the bill, it may, within | 11 | | 30 days after receipt of the bill, apply to the fund in writing | 12 | | for a recalculation. The application must specify in detail the | 13 | | grounds of the dispute. Upon receiving a timely application for | 14 | | recalculation, the fund shall review the application and, if | 15 | | appropriate, recalculate the amount due.
The participating | 16 | | municipality and participating instrumentality contributions | 17 | | required under this subsection (k) may be paid in the form of a | 18 | | lump sum within 90 days after receipt of the bill. If the | 19 | | participating municipality and participating instrumentality | 20 | | contributions are not paid within 90 days after receipt of the | 21 | | bill, then interest will be charged at a rate equal to the | 22 | | fund's annual actuarially assumed rate of return on investment | 23 | | compounded annually from the 91st day after receipt of the | 24 | | bill. Payments must be concluded within 3 years after receipt | 25 | | of the bill by the participating municipality or participating | 26 | | instrumentality. |
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| 1 | | When assessing payment for any amount due under this | 2 | | subsection (k), the fund shall exclude earnings increases | 3 | | resulting from overload or overtime earnings. | 4 | | When assessing payment for any amount due under this | 5 | | subsection (k), the fund shall also exclude earnings increases | 6 | | attributable to standard employment promotions resulting in | 7 | | increased responsibility and workload. | 8 | | This subsection (k) does not apply to earnings increases | 9 | | paid to individuals under contracts or collective bargaining | 10 | | agreements entered into, amended, or renewed before January 1, | 11 | | 2012 (the effective date of Public Act 97-609), earnings | 12 | | increases paid to members who are 10 years or more from | 13 | | retirement eligibility, or earnings increases resulting from | 14 | | an increase in the number of hours required to be worked. | 15 | | When assessing payment for any amount due under this | 16 | | subsection (k), the fund shall also exclude earnings | 17 | | attributable to personnel policies adopted before January 1, | 18 | | 2012 (the effective date of Public Act 97-609) as long as those | 19 | | policies are not applicable to employees who begin service on | 20 | | or after January 1, 2012 (the effective date of Public Act | 21 | | 97-609). | 22 | | (Source: P.A. 97-333, eff. 8-12-11; 97-609, eff. 1-1-12; | 23 | | 97-933, eff. 8-10-12; 98-218, eff. 8-9-13.)
| 24 | | Section 90. The State Mandates Act is amended by adding | 25 | | Section 8.40 as follows: |
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| 1 | | (30 ILCS 805/8.40 new) | 2 | | Sec. 8.40. Exempt mandate. Notwithstanding Sections 6 and 8 | 3 | | of this Act, no reimbursement by the State is required for the | 4 | | implementation of any mandate created by this amendatory Act of | 5 | | the 99th General Assembly.
| 6 | | Section 99. Effective date. This Act takes effect upon | 7 | | becoming law.
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