Full Text of HB4811 100th General Assembly
HB4811enr 100TH 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 1-160, 8-162, 8-174, 11-170, and 11-197.7 as follows:
| 6 | | (40 ILCS 5/1-160)
| 7 | | Sec. 1-160. Provisions applicable to new hires. | 8 | | (a) The provisions of this Section apply to a person who, | 9 | | on or after January 1, 2011, first becomes a member or a | 10 | | participant under any reciprocal retirement system or pension | 11 | | fund established under this Code, other than a retirement | 12 | | system or pension fund established under Article 2, 3, 4, 5, 6, | 13 | | 15 or 18 of this Code, notwithstanding any other provision of | 14 | | this Code to the contrary, but do not apply to any self-managed | 15 | | plan established under this Code, to any person with respect to | 16 | | service as a sheriff's law enforcement employee under Article | 17 | | 7, or to any participant of the retirement plan established | 18 | | under Section 22-101. Notwithstanding anything to the contrary | 19 | | in this Section, for purposes of this Section, a person who | 20 | | participated in a retirement system under Article 15 prior to | 21 | | January 1, 2011 shall be deemed a person who first became a | 22 | | member or participant prior to January 1, 2011 under any | 23 | | retirement system or pension fund subject to this Section. The |
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| 1 | | changes made to this Section by Public Act 98-596 are a | 2 | | clarification of existing law and are intended to be | 3 | | retroactive to January 1, 2011 (the effective date of Public | 4 | | Act 96-889), notwithstanding the provisions of Section 1-103.1 | 5 | | of this Code. | 6 | | This Section does not apply to a person who first becomes a | 7 | | noncovered employee under Article 14 on or after the | 8 | | implementation date of the plan created under Section 1-161 for | 9 | | that Article, unless that person elects under subsection (b) of | 10 | | Section 1-161 to instead receive the benefits provided under | 11 | | this Section and the applicable provisions of that Article. | 12 | | This Section does not apply to a person who first becomes a | 13 | | member or participant under Article 16 on or after the | 14 | | implementation date of the plan created under Section 1-161 for | 15 | | that Article, unless that person elects under subsection (b) of | 16 | | Section 1-161 to instead receive the benefits provided under | 17 | | this Section and the applicable provisions of that Article. | 18 | | This Section does not apply to a person who elects under | 19 | | subsection (c-5) of Section 1-161 to receive the benefits under | 20 | | Section 1-161. | 21 | | This Section does not apply to a person who first becomes a | 22 | | member or participant of an affected pension fund on or after 6 | 23 | | months after the resolution or ordinance date, as defined in | 24 | | Section 1-162, unless that person elects under subsection (c) | 25 | | of Section 1-162 to receive the benefits provided under this | 26 | | Section and the applicable provisions of the Article under |
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| 1 | | which he or she is a member or participant. | 2 | | (b) "Final average salary" means the average monthly (or | 3 | | annual) salary obtained by dividing the total salary or | 4 | | earnings calculated under the Article applicable to the member | 5 | | or participant during the 96 consecutive months (or 8 | 6 | | consecutive years) of service within the last 120 months (or 10 | 7 | | years) of service in which the total salary or earnings | 8 | | calculated under the applicable Article was the highest by the | 9 | | number of months (or years) of service in that period. For the | 10 | | purposes of a person who first becomes a member or participant | 11 | | of any retirement system or pension fund to which this Section | 12 | | applies on or after January 1, 2011, in this Code, "final | 13 | | average salary" shall be substituted for the following: | 14 | | (1) In Article 7 (except for service as sheriff's law | 15 | | enforcement employees), "final rate of earnings". | 16 | | (2) In Articles 8, 9, 10, 11, and 12, "highest average | 17 | | annual salary for any 4 consecutive years within the last | 18 | | 10 years of service immediately preceding the date of | 19 | | withdrawal". | 20 | | (3) In Article 13, "average final salary". | 21 | | (4) In Article 14, "final average compensation". | 22 | | (5) In Article 17, "average salary". | 23 | | (6) In Section 22-207, "wages or salary received by him | 24 | | at the date of retirement or discharge". | 25 | | (b-5) Beginning on January 1, 2011, for all purposes under | 26 | | this Code (including without limitation the calculation of |
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| 1 | | benefits and employee contributions), the annual earnings, | 2 | | salary, or wages (based on the plan year) of a member or | 3 | | participant to whom this Section applies shall not exceed | 4 | | $106,800; however, that amount shall annually thereafter be | 5 | | increased by the lesser of (i) 3% of that amount, including all | 6 | | previous adjustments, or (ii) one-half the annual unadjusted | 7 | | percentage increase (but not less than zero) in the consumer | 8 | | price index-u
for the 12 months ending with the September | 9 | | preceding each November 1, including all previous adjustments. | 10 | | For the purposes of this Section, "consumer price index-u" | 11 | | means
the index published by the Bureau of Labor Statistics of | 12 | | the United States
Department of Labor that measures the average | 13 | | change in prices of goods and
services purchased by all urban | 14 | | consumers, United States city average, all
items, 1982-84 = | 15 | | 100. The new amount resulting from each annual adjustment
shall | 16 | | be determined by the Public Pension Division of the Department | 17 | | of Insurance and made available to the boards of the retirement | 18 | | systems and pension funds by November 1 of each year. | 19 | | (c) A member or participant is entitled to a retirement
| 20 | | annuity upon written application if he or she has attained age | 21 | | 67 (beginning January 1, 2015, age 65 with respect to service | 22 | | under Article 12 of this Code that is subject to this Section) | 23 | | and has at least 10 years of service credit and is otherwise | 24 | | eligible under the requirements of the applicable Article. | 25 | | A member or participant who has attained age 62 (beginning | 26 | | January 1, 2015, age 60 with respect to service under Article |
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| 1 | | 12 of this Code that is subject to this Section) and has at | 2 | | least 10 years of service credit and is otherwise eligible | 3 | | under the requirements of the applicable Article may elect to | 4 | | receive the lower retirement annuity provided
in subsection (d) | 5 | | of this Section. | 6 | | (c-5) A person who first becomes a member or a participant | 7 | | subject to this Section under Article 8 or Article 11 of this | 8 | | Code on or after July 6, 2017 ( the effective date of Public Act | 9 | | 100-23) this amendatory Act of the 100th General Assembly , | 10 | | notwithstanding any other provision of this Code to the | 11 | | contrary, is entitled to a retirement annuity under Article 8 | 12 | | or Article 11 upon written application if he or she has | 13 | | attained age 65 and has at least 10 years of service credit | 14 | | under Article 8 or Article 11 of this Code and is otherwise | 15 | | eligible under the requirements of Article 8 or Article 11 of | 16 | | this Code, whichever is applicable. | 17 | | (d) The retirement annuity of a member or participant who | 18 | | is retiring after attaining age 62 (beginning January 1, 2015, | 19 | | age 60 with respect to service under Article 12 of this Code | 20 | | that is subject to this Section) with at least 10 years of | 21 | | service credit shall be reduced by one-half
of 1% for each full | 22 | | month that the member's age is under age 67 (beginning January | 23 | | 1, 2015, age 65 with respect to service under Article 12 of | 24 | | this Code that is subject to this Section). | 25 | | (d-5) The retirement annuity payable under Article 8 or | 26 | | Article 11 to an eligible of a person subject to subsection |
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| 1 | | (c-5) of this Section who first becomes a member or a | 2 | | participant under Article 8 or Article 11 of this Code on or | 3 | | after the effective date of this amendatory Act of the 100th | 4 | | General Assembly who is retiring at age 60 with at least 10 | 5 | | years of service credit under Article 8 or Article 11 shall be | 6 | | reduced by one-half of 1% for each full month that the member's | 7 | | age is under age 65. | 8 | | (d-10) Each person who first became a member or participant | 9 | | under Article 8 or Article 11 of this Code on or after January | 10 | | 1, 2011 and prior to the effective date of this amendatory Act | 11 | | of the 100th General Assembly shall make an irrevocable | 12 | | election either: | 13 | | (i) to be eligible for the reduced retirement age | 14 | | provided in subsections (c-5)
and (d-5) of this Section, | 15 | | the eligibility for which is conditioned upon the member or | 16 | | participant agreeing to the increases in employee | 17 | | contributions for age and service annuities provided in | 18 | | subsection (a-5) of Section 8-174 of this Code (for service | 19 | | under Article 8) or subsection (a-5) of Section 11-170 of | 20 | | this Code (for service under Article 11); or | 21 | | (ii) to not agree to item (i) of this subsection | 22 | | (d-10), in which case the member or participant shall | 23 | | continue to be subject to the retirement age provisions in | 24 | | subsections (c) and (d) of this Section and the employee | 25 | | contributions for age and service annuity as provided in | 26 | | subsection (a) of Section 8-174 of this Code (for service |
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| 1 | | under Article 8) or subsection (a) of Section 11-170 of | 2 | | this Code (for service under Article 11). | 3 | | The election provided for in this subsection shall be made | 4 | | between October 1, 2017 and November 15, 2017. A person subject | 5 | | to this subsection who makes the required election shall remain | 6 | | bound by that election. A person subject to this subsection who | 7 | | fails for any reason to make the required election within the | 8 | | time specified in this subsection shall be deemed to have made | 9 | | the election under item (ii). | 10 | | (e) Any retirement annuity or supplemental annuity shall be | 11 | | subject to annual increases on the January 1 occurring either | 12 | | on or after the attainment of age 67 (beginning January 1, | 13 | | 2015, age 65 with respect to service under Article 12 of this | 14 | | Code that is subject to this Section and beginning on the | 15 | | effective date of this amendatory Act of the 100th General | 16 | | Assembly, age 65 with respect to service under Article 8 or | 17 | | Article 11 for eligible persons who: (i) are subject to | 18 | | subsection (c-5) of this Section first became members or | 19 | | participants under Article 8 or Article 11 of this Code on or | 20 | | after the effective date of this amendatory Act of the 100th | 21 | | General Assembly ; or (ii) first became members or participants | 22 | | under Article 8 or Article 11 of this Code on or after January | 23 | | 1, 2011 and before the effective date of this amendatory Act of | 24 | | the 100th General Assembly and made the election under item (i) | 25 | | of subsection (d-10) of this Section) or the first anniversary | 26 | | of 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 | | the 12 months ending with the September preceding each November | 8 | | 1 is zero or there is a decrease, then the annuity shall not be | 9 | | increased. | 10 | | For the purposes of Section 1-103.1 of this Code, the | 11 | | changes made to this Section by this amendatory Act of the | 12 | | 100th General Assembly are applicable without regard to whether | 13 | | the employee was in active service on or after the effective | 14 | | date of this amendatory Act of the 100th General Assembly. | 15 | | (f) The initial survivor's or widow's annuity of an | 16 | | otherwise eligible survivor or widow of a retired member or | 17 | | participant who first became a member or participant on or | 18 | | after January 1, 2011 shall be in the amount of 66 2/3% of the | 19 | | retired member's or participant's retirement annuity at the | 20 | | date of death. In the case of the death of a member or | 21 | | participant who has not retired and who first became a member | 22 | | or participant on or after January 1, 2011, eligibility for a | 23 | | survivor's or widow's annuity shall be determined by the | 24 | | applicable Article of this Code. The initial benefit shall be | 25 | | 66 2/3% of the earned annuity without a reduction due to age. A | 26 | | child's annuity of an otherwise eligible child shall be in the |
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| 1 | | amount prescribed under each Article if applicable. Any | 2 | | survivor's or widow's annuity shall be increased (1) on each | 3 | | January 1 occurring on or after the commencement of the annuity | 4 | | if
the deceased member died while receiving a retirement | 5 | | annuity or (2) in
other cases, on each January 1 occurring | 6 | | after the first anniversary
of the commencement of the annuity. | 7 | | Each annual increase shall be calculated at 3% or one-half the | 8 | | annual unadjusted percentage increase (but not less than zero) | 9 | | in the consumer price index-u for the 12 months ending with the | 10 | | September preceding each November 1, whichever is less, of the | 11 | | originally granted survivor's annuity. If the annual | 12 | | unadjusted percentage change in the consumer price index-u for | 13 | | the 12 months ending with the September preceding each November | 14 | | 1 is zero or there is a decrease, then the annuity shall not be | 15 | | increased. | 16 | | (g) The benefits in Section 14-110 apply only if the person | 17 | | is a State policeman, a fire fighter in the fire protection | 18 | | service of a department, or a security employee of the | 19 | | Department of Corrections or the Department of Juvenile | 20 | | Justice, as those terms are defined in subsection (b) of | 21 | | Section 14-110. A person who meets the requirements of this | 22 | | Section is entitled to an annuity calculated under the | 23 | | provisions of Section 14-110, in lieu of the regular or minimum | 24 | | retirement annuity, only if the person has withdrawn from | 25 | | service with not less than 20
years of eligible creditable | 26 | | service and has attained age 60, regardless of whether
the |
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| 1 | | attainment of age 60 occurs while the person is
still in | 2 | | service. | 3 | | (h) If a person who first becomes a member or a participant | 4 | | of a retirement system or pension fund subject to this Section | 5 | | on or after January 1, 2011 is receiving a retirement annuity | 6 | | or retirement pension under that system or fund and becomes a | 7 | | member or participant under any other system or fund created by | 8 | | this Code and is employed on a full-time basis, except for | 9 | | those members or participants exempted from the provisions of | 10 | | this Section under subsection (a) of this Section, then the | 11 | | person's retirement annuity or retirement pension under that | 12 | | system or fund shall be suspended during that employment. Upon | 13 | | termination of that employment, the person's retirement | 14 | | annuity or retirement pension payments shall resume and be | 15 | | recalculated if recalculation is provided for under the | 16 | | applicable Article of this Code. | 17 | | If a person who first becomes a member of a retirement | 18 | | system or pension fund subject to this Section on or after | 19 | | January 1, 2012 and is receiving a retirement annuity or | 20 | | retirement pension under that system or fund and accepts on a | 21 | | contractual basis a position to provide services to a | 22 | | governmental entity from which he or she has retired, then that | 23 | | person's annuity or retirement pension earned as an active | 24 | | employee of the employer shall be suspended during that | 25 | | contractual service. A person receiving an annuity or | 26 | | retirement pension under this Code shall notify the pension |
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| 1 | | fund or retirement system from which he or she is receiving an | 2 | | annuity or retirement pension, as well as his or her | 3 | | contractual employer, of his or her retirement status before | 4 | | accepting contractual employment. A person who fails to submit | 5 | | such notification shall be guilty of a Class A misdemeanor and | 6 | | required to pay a fine of $1,000. Upon termination of that | 7 | | contractual employment, the person's retirement annuity or | 8 | | retirement pension payments shall resume and, if appropriate, | 9 | | be recalculated under the applicable provisions of this Code. | 10 | | (i) (Blank). | 11 | | (j) In the case of a conflict between the provisions of | 12 | | this Section and any other provision of this Code, the | 13 | | provisions of this Section shall control.
| 14 | | (Source: P.A. 100-23, eff. 7-6-17; 100-201, eff. 8-18-17; | 15 | | 100-563, eff. 12-8-17.)
| 16 | | (40 ILCS 5/8-162) (from Ch. 108 1/2, par. 8-162)
| 17 | | Sec. 8-162. Proof of disability, duty and ordinary.
| 18 | | Proof of duty or ordinary disability shall be furnished to | 19 | | the board by
at least one licensed and practicing physician | 20 | | appointed by the board. The
board may require other evidence of | 21 | | disability. Each disabled employee who
receives duty or | 22 | | ordinary disability benefit shall be examined at least
once a | 23 | | year , or a longer period of time as determined by the board, by | 24 | | one or more licensed and practicing physicians appointed by
the | 25 | | board. When the disability ceases, the board shall discontinue |
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| 1 | | payment
of the benefit and the employee shall be returned to | 2 | | active service.
| 3 | | (Source: Laws 1963, p. 161.)
| 4 | | (40 ILCS 5/8-174)
(from Ch. 108 1/2, par. 8-174)
| 5 | | Sec. 8-174. Contributions for age and service annuities for | 6 | | present
employees and future entrants.
| 7 | | (a) Beginning on the effective date and prior to July 1, | 8 | | 1947, 3
1/4%; and beginning on July 1, 1947 and prior to July | 9 | | 1, 1953, 5%; and
beginning July 1, 1953, and prior to January | 10 | | 1, 1972, 6%; and beginning
January 1, 1972, 6-1/2% of each | 11 | | payment of the salary of each present
employee and future | 12 | | entrant, except as provided in subsection (a-5) and (a-10), | 13 | | shall be contributed to the fund as a
deduction from salary for | 14 | | age and service annuity.
| 15 | | (a-5) Except as provided in subsection (a-10), for an | 16 | | employee who on or after January 1, 2011 and prior to the | 17 | | effective date of this amendatory Act of the 100th General | 18 | | Assembly first became a member or participant under this | 19 | | Article and made the election under item (i) of subsection | 20 | | (d-10) of Section 1-160: prior to the effective date of this | 21 | | amendatory Act of the 100th General Assembly, 6.5%; and | 22 | | beginning on the effective date of this amendatory Act of the | 23 | | 100th General Assembly and prior to January 1, 2018, 7.5%; and | 24 | | beginning January 1, 2018 and prior to January 1, 2019, 8.5%; | 25 | | and beginning January 1, 2019 and thereafter, employee |
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| 1 | | contributions for those employees who made the election under | 2 | | item (i) of subsection (d-10) of Section 1-160 shall be the | 3 | | lesser of: (i) the total normal cost, calculated using the | 4 | | entry age normal actuarial method, projected for the prior that | 5 | | fiscal year for the benefits and expenses of the plan of | 6 | | benefits applicable to those members and participants who first | 7 | | became members or participants on or after the effective date | 8 | | of this amendatory Act of the 100th General Assembly and to | 9 | | those employees who made the election under item (i) of | 10 | | subsection (d-10) of Section 1-160, but not less than 6.5% of | 11 | | each payment of salary combined with the employee contributions | 12 | | provided for in subsection (b) of Section 8-137 and Section | 13 | | 8-182 of this Article; or (ii) the aggregate employee | 14 | | contribution consisting of 9.5% of each payment of salary | 15 | | combined with the employee contributions provided for in | 16 | | subsection (b) of Section 8-137 and 8-182 of this Article. | 17 | | For the one-year period beginning Beginning with the first | 18 | | pay period in January of each year on or after the date when | 19 | | the funded ratio of the fund as determined in the annual | 20 | | actuarial valuation is first determined to have reached the 90% | 21 | | funding goal, and each subsequent one-year pay period | 22 | | thereafter for as long as the fund maintains a funding ratio of | 23 | | 75% or more, employee contributions for age and service annuity | 24 | | for those employees who made the election under item (i) of | 25 | | subsection (d-10) of Section 1-160 shall be 5.5% of each | 26 | | payment of salary. If the funding ratio falls below 75%, then |
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| 1 | | employee contributions for age and service annuity for those | 2 | | employees who made the election under item (i) of subsection | 3 | | (d-10) shall revert to the lesser of: (A) the total normal | 4 | | cost, calculated using the entry age normal actuarial method, | 5 | | projected for the prior that fiscal year for the benefits and | 6 | | expenses of the plan of benefits applicable to those members | 7 | | and participants who first became members or participants on or | 8 | | after the effective date of this amendatory Act of the 100th | 9 | | General Assembly and to those employees who made the election | 10 | | under item (i) of subsection (d-10) of Section 1-160, but not | 11 | | less than 6.5% of each payment of salary combined with the | 12 | | employee contributions provided for in subsection (b) of | 13 | | Section 8-137 and Section 8-182 of this Article; or (B) the | 14 | | aggregate employee contribution consisting of 9.5% of each | 15 | | payment of salary combined with the employee contributions | 16 | | provided for in subsection (b) of Section 8-137 and 8-182 of | 17 | | this Article. If the fund once again is determined to have | 18 | | reached a funding ratio of 75%, the 5.5% of salary contribution | 19 | | for age and service annuity shall resume. An employee who made | 20 | | the election under item (ii) of subsection (d-10) of Section | 21 | | 1-160 shall continue to have the contributions for age and | 22 | | service annuity determined under subsection (a) of this | 23 | | Section. | 24 | | If contributions are reduced to less than the aggregate | 25 | | employee contribution described in item (ii) or item (B) of | 26 | | this subsection due to application of the normal cost |
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| 1 | | criterion, the employee contribution amount shall be | 2 | | consistent for from July 1 of the fiscal year through June 30 | 3 | | of that fiscal year. | 4 | | The normal cost, for the purposes of this subsection (a-5) | 5 | | and subsection (a-10), shall be calculated by an independent | 6 | | enrolled actuary mutually agreed upon by the fund and the City. | 7 | | The fees and expenses of the independent actuary shall be the | 8 | | responsibility of the City. For purposes of this subsection | 9 | | (a-5), the fund and the City shall both be considered to be the | 10 | | clients of the actuary, and the actuary shall utilize | 11 | | participant data and actuarial standards to calculate the | 12 | | normal cost. The fund shall provide information that the | 13 | | actuary requests in order to calculate the applicable normal | 14 | | cost. | 15 | | (a-10) For each employee subject to subsection (c-5) of | 16 | | Section 1-160 who on or after the effective date of this | 17 | | amendatory Act of the 100th General Assembly first becomes a | 18 | | member or participant under this Article , 9.5% of each payment | 19 | | of salary shall be contributed to the fund as a deduction from | 20 | | salary for age and service annuity. Beginning January 1, 2018 | 21 | | and each year thereafter, employee contributions for each | 22 | | employee subject to this subsection (a-10) shall be the lesser | 23 | | of: (i) the total normal cost, calculated using the entry age | 24 | | normal actuarial method, projected for the prior that fiscal | 25 | | year for the benefits and expenses of the plan of benefits | 26 | | applicable to those members and participants who first become |
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| 1 | | members or participants on or after the effective date of this | 2 | | amendatory Act of the 100th General Assembly and to those | 3 | | employees who made the election under item (i) of subsection | 4 | | (d-10) of Section 1-160, but not less than 6.5% of each payment | 5 | | of salary combined with the employee contributions provided for | 6 | | in subsection (b) of Section 8-137 and Section 8-182 of this | 7 | | Article; or (ii) the aggregate employee contribution | 8 | | consisting of 9.5% of each payment of salary combined with the | 9 | | employee contributions provided for in subsection (b) of | 10 | | Section 8-137 and Section 8-182 of this Article. | 11 | | For the one-year period beginning Beginning with the first | 12 | | pay period in January of each year on or after the date when | 13 | | the funded ratio of the fund as determined in the annual | 14 | | actuarial valuation is first determined to have reached the 90% | 15 | | funding goal, and each subsequent one-year pay period | 16 | | thereafter for as long as the fund maintains a funding ratio of | 17 | | 75% or more, employee contributions for age and service annuity | 18 | | for each employee subject to this subsection (a-10) shall be | 19 | | 5.5% of each payment of salary. If the funding ratio falls | 20 | | below 75%, then employee contributions for age and service | 21 | | annuity for each employee subject to this subsection (a-10) | 22 | | shall revert to the lesser of: (A) the total normal cost, | 23 | | calculated using the entry age normal actuarial method, | 24 | | projected for the prior that fiscal year for the benefits and | 25 | | expenses of the plan of benefits applicable to those members | 26 | | and participants who first become members or participants on or |
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| 1 | | after the effective date of this amendatory Act of the 100th | 2 | | General Assembly and to those employees who made the election | 3 | | under item (i) of subsection (d-10) of Section 1-160, but not | 4 | | less than 6.5% of each payment of salary combined with the | 5 | | employee contributions provided for in subsection (b) of | 6 | | Section 8-137 and Section 8-182 of this Article; or (B) the | 7 | | aggregate employee contribution consisting of 9.5% of each | 8 | | payment of salary combined with the employee contributions | 9 | | provided for in subsection (b) of Section 8-137 and Section | 10 | | 8-182 of this Article. If the fund once again is determined to | 11 | | have reached a funding ratio of 75%, the 5.5% of salary | 12 | | contribution for age and service annuity shall resume. | 13 | | If contributions are reduced to less than the aggregate | 14 | | employee contribution described in item (ii) or item (B) of | 15 | | this subsection (a-10) due to application of the normal cost | 16 | | criterion, the employee contribution amount shall be | 17 | | consistent for from July 1 of the fiscal year through June 30 | 18 | | of that fiscal year. | 19 | | Such deductions beginning on the effective date and prior | 20 | | to July 1,
1947 shall be made for a future entrant while he is | 21 | | in the service until
he attains age 65 and for a present | 22 | | employee while he is in the service
until the amount so | 23 | | deducted from his salary with the amount deducted
from his | 24 | | salary or paid by him according to law to any municipal pension
| 25 | | fund in force on the effective date with interest on both such | 26 | | amounts
at 4% per annum equals the sum that would have been to |
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| 1 | | his credit from
sums deducted from his salary if deductions at | 2 | | the rate herein stated
had been made during his entire service | 3 | | until he attained age 65 with
interest at 4% per annum for the | 4 | | period subsequent to his attainment of
age 65. Such deductions | 5 | | beginning July 1, 1947 shall be made and
continued for | 6 | | employees while in the service.
| 7 | | (b) Concurrently with each employee contribution, the city | 8 | | shall contribute beginning on the effective date and prior to | 9 | | July 1, 1947, 5 3/4%; and beginning July 1, 1947 and prior to | 10 | | July 1, 1953, 7%; and beginning July 1, 1953 and prior to July | 11 | | 6, 2017, 6% of each payment of such salary until the employee | 12 | | attains age 65. Beginning July 6, 2017, the Fund shall credit | 13 | | sums equal to 6% of each payment of such salary for annuity | 14 | | purposes. The amounts credited for annuity purposes shall not | 15 | | be credited for refund purposes (Blank) .
| 16 | | (c) Each employee contribution made prior to the date the | 17 | | age and
service annuity for an employee is fixed and each | 18 | | corresponding city
contribution shall be credited to the | 19 | | employee and allocated to the
account of the employee for whose | 20 | | benefit it is made.
| 21 | | (d) Notwithstanding Section 1-103.1, the changes to this | 22 | | Section made by this amendatory Act of the 100th General | 23 | | Assembly apply regardless of whether the employee was in active | 24 | | service on or after the effective date of this amendatory Act | 25 | | of the 100th General Assembly. | 26 | | (Source: P.A. 100-23, eff. 7-6-17.)
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| 1 | | (40 ILCS 5/11-170) (from Ch. 108 1/2, par. 11-170)
| 2 | | Sec. 11-170. Contributions for age and service annuities | 3 | | for present
employees, future entrants and re-entrants.
| 4 | | (a) Beginning on the effective date and prior to July 1, | 5 | | 1947, 3
1/4%; and beginning on July 1, 1947 and prior to July | 6 | | 1, 1953, 5%; and
beginning July 1, 1953 and prior to January 1, | 7 | | 1972, 6%; and beginning
January 1, 1972, 6 1/2% of each payment | 8 | | of the salary of each present
employee, future entrant and | 9 | | re-entrant, except as provided in subsection (a-5) and (a-10), | 10 | | shall be contributed to the fund
as a deduction from salary for | 11 | | age and service annuity. | 12 | | (a-5) Except as provided in subsection (a-10), for an | 13 | | employee who on or after January 1, 2011 and prior to the | 14 | | effective date of this amendatory Act of the 100th General | 15 | | Assembly first became a member or participant under this | 16 | | Article and made the election under item (i) of subsection | 17 | | (d-10) of Section 1-160: prior to the effective date of this | 18 | | amendatory Act of the 100th General Assembly, 6.5%; and | 19 | | beginning on the effective date of this amendatory Act of the | 20 | | 100th General Assembly and prior to January 1, 2018, 7.5%; and | 21 | | beginning January 1, 2018 and prior to January 1, 2019, 8.5%; | 22 | | and beginning January 1, 2019 and thereafter, employee
| 23 | | contributions for those employees who made the
election under | 24 | | item (i) of subsection (d-10) of Section 1-160
shall be the | 25 | | lesser of: (i) the total normal cost, calculated
using the |
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| 1 | | entry age normal actuarial method, projected for the prior that
| 2 | | fiscal year for the benefits and expenses of the plan of
| 3 | | benefits applicable to those members and participants who first | 4 | | became members or participants on or after the effective date
| 5 | | of this amendatory Act of the 100th General Assembly and to
| 6 | | those employees who made the election under item (i) of
| 7 | | subsection (d-10) of Section 1-160, but not less than 6.5% of
| 8 | | each payment of salary combined with the employee contributions
| 9 | | provided for in subsection (b) of Section 11-134.1 and Section
| 10 | | 11-174 of this Article; or
(ii) the aggregate employee | 11 | | contribution consisting of 9.5% of
each payment of salary | 12 | | combined with the employee contributions
provided for in | 13 | | subsection (b) of Section 11-134.1 and 11-174 of
this Article. | 14 | | For the one-year period beginning Beginning with
the first | 15 | | pay period in January of each year on or after the date when | 16 | | the funded ratio
of the fund as determined in the annual | 17 | | actuarial valuation is first determined to have reached the 90% | 18 | | funding
goal, and each subsequent one-year pay period | 19 | | thereafter for as long as the fund
maintains a funding ratio of | 20 | | 75% or more, employee
contributions for age and service annuity | 21 | | for those employees
who made the election under item (i) of | 22 | | subsection (d-10) of
Section 1-160 shall be 5.5% of each | 23 | | payment of salary. If the
funding ratio falls below 75%, then | 24 | | employee contributions for age and service annuity for those | 25 | | employees who made the
election under item (i) of subsection | 26 | | (d-10) shall revert to the lesser of: (A) the total normal |
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| 1 | | cost, calculated
using the entry age normal actuarial method, | 2 | | projected for the prior that
fiscal year for the benefits and | 3 | | expenses of the plan of
benefits applicable to those members | 4 | | and participants who first became members or participants on or | 5 | | after the effective date
of this amendatory Act of the 100th | 6 | | General Assembly and to
those employees who made the election | 7 | | under item (i) of
subsection (d-10) of Section 1-160, but not | 8 | | less than 6.5% of
each payment of salary combined with the | 9 | | employee contributions
provided for in subsection (b) of | 10 | | Section 11-134.1 and Section
11-174 of this Article; or
(B) the | 11 | | aggregate employee contribution consisting of 9.5% of
each | 12 | | payment of salary combined with the employee contributions
| 13 | | provided for in subsection (b) of Section 11-134.1 and 11-174 | 14 | | of
this Article. If the fund once again is determined to
have | 15 | | reached a funding ratio of 75%, the 5.5% of
salary contribution | 16 | | for age and service annuity shall resume.
An employee who made | 17 | | the election under item (ii) of subsection
(d-10) of Section | 18 | | 1-160 shall continue to have the
contributions for age and | 19 | | service annuity determined under
subsection (a) of this | 20 | | Section. | 21 | | If contributions are reduced to less than the
aggregate | 22 | | employee contribution described in item (ii) or item (B) of | 23 | | this
subsection due to application of the normal cost | 24 | | criterion,
the employee contribution amount shall be
| 25 | | consistent for from July 1 of the fiscal year
through June 30 | 26 | | of that fiscal year. |
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| 1 | | The normal cost, for the purposes of this subsection (a-5) | 2 | | and subsection (a-10), shall be calculated by an independent | 3 | | enrolled actuary mutually agreed upon by the fund and the City. | 4 | | The fees and expenses of the independent actuary shall be the | 5 | | responsibility of the City. For purposes of this subsection | 6 | | (a-5), the fund and the City shall both be considered to be the | 7 | | clients of the actuary, and the actuary shall utilize | 8 | | participant data and actuarial standards to calculate the | 9 | | normal cost. The fund shall provide information that the | 10 | | actuary requests in order to calculate the applicable normal | 11 | | cost. | 12 | | (a-10) For each employee subject to subsection (c-5) of | 13 | | Section 1-160 who on or after the effective date of this | 14 | | amendatory Act of the 100th General Assembly first becomes a | 15 | | member or participant under this Article , 9.5% of each payment | 16 | | of salary shall be contributed to the fund as a deduction from | 17 | | salary for age and service annuity. Beginning January 1, 2018
| 18 | | and each year thereafter, employee contributions
for each | 19 | | employee subject to this subsection (a-10) shall be
the lesser | 20 | | of: (i) the total normal cost, calculated using the entry age | 21 | | normal actuarial method, projected for the prior that
fiscal | 22 | | year for the benefits and expenses of the plan of
benefits | 23 | | applicable to those members and participants who first
become | 24 | | members or participants on or after the effective date of this | 25 | | amendatory Act of the 100th General Assembly and to
those | 26 | | employees who made the election under item (i) of
subsection |
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| 1 | | (d-10) of Section 1-160, but not less than 6.5% of
each payment | 2 | | of salary combined with the employee contributions
provided for | 3 | | in subsection (b) of Section 11-134.1 and Section
11-174 of | 4 | | this Article; or (ii) the aggregate
employee contribution | 5 | | consisting of 9.5% of each payment of
salary combined with the | 6 | | employee contributions provided for in
subsection (b) of | 7 | | Section 11-134.1 and Section 11-174 of this
Article. | 8 | | For the one-year period beginning Beginning with the first | 9 | | pay period in January of each year on or after the date when | 10 | | the funded ratio of the fund as determined in the annual | 11 | | actuarial valuation is first determined to have reached the 90% | 12 | | funding goal, and each subsequent one-year pay period | 13 | | thereafter for as long as the fund maintains a funding ratio of | 14 | | 75% or more, employee contributions for age and service annuity | 15 | | for each employee subject to this subsection (a-10) shall be | 16 | | 5.5% of each payment of salary. If the funding ratio falls | 17 | | below 75%, then employee contributions for age and service | 18 | | annuity for each employee subject to this subsection (a-10) | 19 | | shall revert to the lesser of: (A) the total normal cost, | 20 | | calculated using the entry age normal actuarial method, | 21 | | projected for the prior that
fiscal year for the benefits and | 22 | | expenses of the plan of
benefits applicable to those members | 23 | | and participants who first
become members or participants on or | 24 | | after the effective date of this amendatory Act of the 100th | 25 | | General Assembly and to
those employees who made the election | 26 | | under item (i) of
subsection (d-10) of Section 1-160, but not |
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| 1 | | less than 6.5% of
each payment of salary combined with the | 2 | | employee contributions
provided for in subsection (b) of | 3 | | Section 11-134.1 and Section
11-174 of this Article; or (B) the | 4 | | aggregate
employee contribution consisting of 9.5% of each | 5 | | payment of
salary combined with the employee contributions | 6 | | provided for in
subsection (b) of Section 11-134.1 and Section | 7 | | 11-174 of this
Article. If the fund once again is determined to | 8 | | have reached a funding ratio of 75%, the 5.5% of salary | 9 | | contribution for age and service annuity shall resume. | 10 | | If contributions are reduced to less than the
aggregate | 11 | | employee contribution described in item (ii) or item (B) of | 12 | | this
subsection (a-10) due to application of the normal cost
| 13 | | criterion, the employee contribution amount shall be | 14 | | consistent for from July 1 of the fiscal year through June 30
| 15 | | of that fiscal year. | 16 | | Such deductions
beginning on the effective date and prior | 17 | | to June 30, 1947, inclusive
shall be made for a future entrant | 18 | | while he is in service until he
attains age 65, and for a | 19 | | present employee while he is in service until
the amount so | 20 | | deducted from his salary with interest at the rate of 4%
per | 21 | | annum shall be equal to the sum which would have accumulated to | 22 | | his
credit from sums deducted from his salary if deductions at | 23 | | the rate
herein stated had been made during his entire service | 24 | | until he attained
age 65 with interest at 4% per annum for the | 25 | | period subsequent to his
attainment of age 65. Such deductions | 26 | | beginning July 1, 1947 shall be
made and continued for |
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| 1 | | employees while in the service.
| 2 | | (b) Concurrently with each employee contribution, the city | 3 | | shall contribute beginning on the effective date and prior to | 4 | | July 1, 1947, 5 3/4%; and beginning July 1, 1947 and prior to | 5 | | July 1, 1953, 7%; and beginning July 1, 1953 and prior to July | 6 | | 6, 2017, 6% of each payment of such salary until the employee | 7 | | attains age 65. Beginning July 6, 2017, the Fund shall credit | 8 | | sums equal to 6% of each payment of such salary for annuity | 9 | | purposes. The amounts credited for annuity purposes shall not | 10 | | be credited for refund purposes (Blank) .
| 11 | | (c) Each employee contribution made prior to the date age | 12 | | and
service annuity for an employee is fixed and each | 13 | | corresponding city
contribution shall be allocated to the | 14 | | account of and credited to the
employee for whose benefit it is | 15 | | made.
| 16 | | (d) Notwithstanding Section 1-103.1, the changes to this | 17 | | Section made by this amendatory Act of the 100th General | 18 | | Assembly apply regardless of whether the employee was in active | 19 | | service on or after the effective date of this amendatory Act. | 20 | | (Source: P.A. 100-23, eff. 7-6-17.) | 21 | | (40 ILCS 5/11-197.7) | 22 | | Sec. 11-197.7. Payment of annuity other than direct. The | 23 | | board, at the written direction and request of any annuitant, | 24 | | may, solely as an accommodation to such annuitant, pay the | 25 | | annuity due him or her to a bank, savings and loan association, |
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| 1 | | or any other financial institution insured by an agency of the | 2 | | federal government, for deposit to his or her account, or to a | 3 | | bank or trust company for deposit in a trust established by him | 4 | | or her for his benefit with such bank, savings and loan | 5 | | association, or trust company, and such annuitant may withdraw | 6 | | such direction at any time. An annuitant who directs the board | 7 | | to pay the annuity due him or her to a financial institution | 8 | | shall hold the board and the fund harmless from any claim or | 9 | | loss related to any error as to whether the financial | 10 | | institution is or continues to be federally insured. The board | 11 | | may also, in the case of any disability beneficiary or | 12 | | annuitant for whom no estate guardian has been appointed and | 13 | | who is confined in a publicly owned and operated mental | 14 | | institution, pay such disability benefit or annuity due such | 15 | | person to the superintendent or other head of such institution | 16 | | or hospital for deposit to such person's trust fund account | 17 | | maintained for him or her by such institution or hospital, if | 18 | | by law such trust fund accounts are authorized or recognized .
| 19 | | (Source: P.A. 100-23, eff. 7-6-17.)
| 20 | | Section 99. Effective date. This Act takes effect upon | 21 | | becoming law.
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