Full Text of SB1523 98th General Assembly
SB1523enr 98TH 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, 12-130, 12-133.1, 12-133.2, 12-140, 12-149, | 6 | | and 12-150 and adding Sections 12-150.5, 12-155.5, and 12-195 | 7 | | as follows: | 8 | | (40 ILCS 5/1-160) | 9 | | Sec. 1-160. Provisions applicable to new hires. | 10 | | (a) The provisions of this Section apply to a person who, | 11 | | on or after January 1, 2011, first becomes a member or a | 12 | | participant under any reciprocal retirement system or pension | 13 | | fund established under this Code, other than a retirement | 14 | | system or pension fund established under Article 2, 3, 4, 5, 6, | 15 | | 15 or 18 of this Code, notwithstanding any other provision of | 16 | | this Code to the contrary, but do not apply to any self-managed | 17 | | plan established under this Code, to any person with respect to | 18 | | service as a sheriff's law enforcement employee under Article | 19 | | 7, or to any participant of the retirement plan established | 20 | | under Section 22-101. | 21 | | (b) "Final average salary" means the average monthly (or | 22 | | annual) salary obtained by dividing the total salary or | 23 | | earnings calculated under the Article applicable to the member |
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| 1 | | or participant during the 96 consecutive months (or 8 | 2 | | consecutive years) of service within the last 120 months (or 10 | 3 | | years) of service in which the total salary or earnings | 4 | | calculated under the applicable Article was the highest by the | 5 | | number of months (or years) of service in that period. For the | 6 | | purposes of a person who first becomes a member or participant | 7 | | of any retirement system or pension fund to which this Section | 8 | | applies on or after January 1, 2011, in this Code, "final | 9 | | average salary" shall be substituted for the following: | 10 | | (1) In Article 7 (except for service as sheriff's law | 11 | | enforcement employees), "final rate of earnings". | 12 | | (2) In Articles 8, 9, 10, 11, and 12, "highest average | 13 | | annual salary for any 4 consecutive years within the last | 14 | | 10 years of service immediately preceding the date of | 15 | | withdrawal". | 16 | | (3) In Article 13, "average final salary". | 17 | | (4) In Article 14, "final average compensation". | 18 | | (5) In Article 17, "average salary". | 19 | | (6) In Section 22-207, "wages or salary received by him | 20 | | at the date of retirement or discharge". | 21 | | (b-5) Beginning on January 1, 2011, for all purposes under | 22 | | this Code (including without limitation the calculation of | 23 | | benefits and employee contributions), the annual earnings, | 24 | | salary, or wages (based on the plan year) of a member or | 25 | | participant to whom this Section applies shall not exceed | 26 | | $106,800; however, that amount shall annually thereafter be |
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| 1 | | increased by the lesser of (i) 3% of that amount, including all | 2 | | previous adjustments, or (ii) one-half the annual unadjusted | 3 | | percentage increase (but not less than zero) in the consumer | 4 | | price index-u
for the 12 months ending with the September | 5 | | preceding each November 1, including all previous adjustments. | 6 | | For the purposes of this Section, "consumer price index-u" | 7 | | means
the index published by the Bureau of Labor Statistics of | 8 | | the United States
Department of Labor that measures the average | 9 | | change in prices of goods and
services purchased by all urban | 10 | | consumers, United States city average, all
items, 1982-84 = | 11 | | 100. The new amount resulting from each annual adjustment
shall | 12 | | be determined by the Public Pension Division of the Department | 13 | | of Insurance and made available to the boards of the retirement | 14 | | systems and pension funds by November 1 of each year. | 15 | | (c) A member or participant is entitled to a retirement
| 16 | | annuity upon written application if he or she has attained age | 17 | | 67 (beginning January 1, 2015, age 65 with respect to service | 18 | | under Article 12 of this Code that is subject to this Section) | 19 | | and has at least 10 years of service credit and is otherwise | 20 | | eligible under the requirements of the applicable Article. | 21 | | A member or participant who has attained age 62 (beginning | 22 | | January 1, 2015, age 60 with respect to service under Article | 23 | | 12 of this Code that is subject to this Section) and has at | 24 | | least 10 years of service credit and is otherwise eligible | 25 | | under the requirements of the applicable Article may elect to | 26 | | receive the lower retirement annuity provided
in subsection (d) |
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| 1 | | of this Section. | 2 | | (d) The retirement annuity of a member or participant who | 3 | | is retiring after attaining age 62 (beginning January 1, 2015, | 4 | | age 60 with respect to service under Article 12 of this Code | 5 | | that is subject to this Section) with at least 10 years of | 6 | | service credit shall be reduced by one-half
of 1% for each full | 7 | | month that the member's age is under age 67 (beginning January | 8 | | 1, 2015, age 65 with respect to service under Article 12 of | 9 | | this Code that is subject to this Section) . | 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) or the first anniversary | 15 | | of the annuity start date, whichever is later. Each annual | 16 | | increase shall be calculated at 3% or one-half the annual | 17 | | unadjusted percentage increase (but not less than zero) in the | 18 | | consumer price index-u for the 12 months ending with the | 19 | | September preceding each November 1, whichever is less, of the | 20 | | originally granted retirement annuity. If the annual | 21 | | unadjusted percentage change in the consumer price index-u for | 22 | | the 12 months ending with the September preceding each November | 23 | | 1 is zero or there is a decrease, then the annuity shall not be | 24 | | increased. | 25 | | (f) The initial survivor's or widow's annuity of an | 26 | | otherwise eligible survivor or widow of a retired member or |
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| 1 | | participant who first became a member or participant on or | 2 | | after January 1, 2011 shall be in the amount of 66 2/3% of the | 3 | | retired member's or participant's retirement annuity at the | 4 | | date of death. In the case of the death of a member or | 5 | | participant who has not retired and who first became a member | 6 | | or participant on or after January 1, 2011, eligibility for a | 7 | | survivor's or widow's annuity shall be determined by the | 8 | | applicable Article of this Code. The initial benefit shall be | 9 | | 66 2/3% of the earned annuity without a reduction due to age. A | 10 | | child's annuity of an otherwise eligible child shall be in the | 11 | | amount prescribed under each Article if applicable. Any | 12 | | survivor's or widow's annuity shall be increased (1) on each | 13 | | January 1 occurring on or after the commencement of the annuity | 14 | | if
the deceased member died while receiving a retirement | 15 | | annuity or (2) in
other cases, on each January 1 occurring | 16 | | after the first anniversary
of the commencement of the annuity. | 17 | | Each annual increase shall be calculated at 3% or one-half the | 18 | | annual unadjusted percentage increase (but not less than zero) | 19 | | in the consumer price index-u for the 12 months ending with the | 20 | | September preceding each November 1, whichever is less, of the | 21 | | originally granted survivor's annuity. If the annual | 22 | | unadjusted percentage change in the consumer price index-u for | 23 | | the 12 months ending with the September preceding each November | 24 | | 1 is zero or there is a decrease, then the annuity shall not be | 25 | | increased. | 26 | | (g) The benefits in Section 14-110 apply only if the person |
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| 1 | | is a State policeman, a fire fighter in the fire protection | 2 | | service of a department, or a security employee of the | 3 | | Department of Corrections or the Department of Juvenile | 4 | | Justice, as those terms are defined in subsection (b) of | 5 | | Section 14-110. A person who meets the requirements of this | 6 | | Section is entitled to an annuity calculated under the | 7 | | provisions of Section 14-110, in lieu of the regular or minimum | 8 | | retirement annuity, only if the person has withdrawn from | 9 | | service with not less than 20
years of eligible creditable | 10 | | service and has attained age 60, regardless of whether
the | 11 | | attainment of age 60 occurs while the person is
still in | 12 | | service. | 13 | | (h) If a person who first becomes a member or a participant | 14 | | of a retirement system or pension fund subject to this Section | 15 | | on or after January 1, 2011 is receiving a retirement annuity | 16 | | or retirement pension under that system or fund and becomes a | 17 | | member or participant under any other system or fund created by | 18 | | this Code and is employed on a full-time basis, except for | 19 | | those members or participants exempted from the provisions of | 20 | | this Section under subsection (a) of this Section, then the | 21 | | person's retirement annuity or retirement pension under that | 22 | | system or fund shall be suspended during that employment. Upon | 23 | | termination of that employment, the person's retirement | 24 | | annuity or retirement pension payments shall resume and be | 25 | | recalculated if recalculation is provided for under the | 26 | | applicable Article of this Code. |
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| 1 | | If a person who first becomes a member of a retirement | 2 | | system or pension fund subject to this Section on or after | 3 | | January 1, 2012 and is receiving a retirement annuity or | 4 | | retirement pension under that system or fund and accepts on a | 5 | | contractual basis a position to provide services to a | 6 | | governmental entity from which he or she has retired, then that | 7 | | person's annuity or retirement pension earned as an active | 8 | | employee of the employer shall be suspended during that | 9 | | contractual service. A person receiving an annuity or | 10 | | retirement pension under this Code shall notify the pension | 11 | | fund or retirement system from which he or she is receiving an | 12 | | annuity or retirement pension, as well as his or her | 13 | | contractual employer, of his or her retirement status before | 14 | | accepting contractual employment. A person who fails to submit | 15 | | such notification shall be guilty of a Class A misdemeanor and | 16 | | required to pay a fine of $1,000. Upon termination of that | 17 | | contractual employment, the person's retirement annuity or | 18 | | retirement pension payments shall resume and, if appropriate, | 19 | | be recalculated under the applicable provisions of this Code. | 20 | | (i) (Blank). | 21 | | (j) In the case of a conflict between the provisions of | 22 | | this Section and any other provision of this Code, the | 23 | | provisions of this Section shall control.
| 24 | | (Source: P.A. 97-609, eff. 1-1-12; 98-92, eff. 7-16-13.)
| 25 | | (40 ILCS 5/12-130) (from Ch. 108 1/2, par. 12-130)
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| 1 | | Sec. 12-130. Retirement prior to age 60. An employee | 2 | | withdrawing prior
to January 1, 1990 with at least 10 years of | 3 | | service and before attainment
of age 55 shall be entitled at | 4 | | his option to a retirement annuity beginning at age 55.
| 5 | | An employee withdrawing prior to January 1, 1990 with at | 6 | | least 10 years
of service upon or after attainment of age 55, | 7 | | and before age 60, shall be
entitled to a retirement annuity | 8 | | beginning at any time thereafter.
| 9 | | An employee who withdraws on or after January 1, 1990 and | 10 | | has attained age 45 before January 1, 2015 with at least 10
| 11 | | years of service and prior to age 60 shall be entitled, at his | 12 | | option, to a
retirement annuity beginning at any time after | 13 | | withdrawal or attainment of
age 50, whichever occurs later. An | 14 | | employee who has not attained age 45 before January 1, 2015 and | 15 | | withdraws on or after that date with at least 10
years of | 16 | | service and prior to age 60 shall be entitled, at his option, | 17 | | to a
retirement annuity beginning at any time after withdrawal | 18 | | or attainment of
age 58, whichever occurs later.
| 19 | | Notwithstanding Section 1-103.1, the changes to this | 20 | | Section made by this amendatory Act of the 98th General | 21 | | Assembly apply regardless of whether the employee was in active | 22 | | service on or after the effective date of this amendatory Act, | 23 | | but do not apply to a person whose service under this Article | 24 | | is subject to Section 1-160. | 25 | | Any employee upon withdrawal after at least 15 years of | 26 | | service, upon
or after attainment of age 50, and before |
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| 1 | | attainment of age 55, who
received ordinary disability benefit | 2 | | for the maximum period of time
provided herein, and who | 3 | | continues to be disabled, shall be entitled to
a retirement | 4 | | annuity.
| 5 | | The amount of retirement annuity for any employee who | 6 | | entered service
prior to July 1, 1971 shall be provided from | 7 | | the total of the
accumulations as stated in this Section, at | 8 | | the employee's attained age
on the date of retirement:
| 9 | | (a) the accumulation from employee contributions for | 10 | | service annuity
on the date of withdrawal, improved by
| 11 | | regular interest from the date the employee withdraws to | 12 | | the date he
enters upon annuity;
| 13 | | (b) 1/10 of the accumulation, on the date of | 14 | | withdrawal, from
employer contributions for service | 15 | | annuity, for each complete year of
service above 10 years | 16 | | up to 100% of such accumulation, improved by
regular | 17 | | interest from the date the employee withdraws to the date | 18 | | he
enters upon annuity.
| 19 | | (Source: P.A. 86-272; 86-1028.)
| 20 | | (40 ILCS 5/12-133.1) (from Ch. 108 1/2, par. 12-133.1)
| 21 | | Sec. 12-133.1. Annual increase in basic retirement | 22 | | annuity.
| 23 | | (a) Any employee upon withdrawal from service on or after | 24 | | July 1,
1965, and retiring on a retirement annuity, shall be | 25 | | entitled to an annual
increase in his basic retirement annuity |
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| 1 | | as defined herein while he is
in receipt of such annuity.
| 2 | | The term "basic retirement annuity" shall mean the | 3 | | retirement
annuity of the amount fixed and payable at date of | 4 | | retirement of the
employee.
| 5 | | (b) The annual increase in annuity shall be 1 1/2% of the | 6 | | basic retirement
annuity. The increase shall first occur in the | 7 | | month of January or the month
of July, whichever first occurs | 8 | | next following or coincidental with the first
anniversary of | 9 | | retirement. Effective January 1, 1972, the annual rate of
| 10 | | increase in annuity thereafter shall be 2% of the basic | 11 | | retirement annuity,
provided that beginning as of January 1, | 12 | | 1976, the annual rate of increase
shall be 3% of the basic | 13 | | retirement annuity.
| 14 | | (b-1) Notwithstanding subsection (b), all automatic annual | 15 | | increases payable under this Section on or after January 1, | 16 | | 2015 shall be calculated at 3% or one-half the annual | 17 | | unadjusted percentage increase (but not less than 0) in the | 18 | | Consumer Price Index-U for the 12 months ending with the | 19 | | September preceding each November 1, whichever is less, of the | 20 | | originally granted retirement annuity. | 21 | | For the purposes of this Article, "Consumer Price Index-U" | 22 | | means
the index published by the Bureau of Labor Statistics of | 23 | | the United States
Department of Labor that measures the average | 24 | | change in prices of goods and
services purchased by all urban | 25 | | consumers, United States city average, all
items, 1982-84 = | 26 | | 100. The new amount resulting from each annual adjustment shall |
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| 1 | | be determined by the Public Pension Division of the Department | 2 | | of Insurance. | 3 | | Notwithstanding Section 1-103.1, this subsection (b-1) is | 4 | | applicable without regard to whether the employee was in active | 5 | | service on or after the effective date of this amendatory Act | 6 | | of the 98th General Assembly. This subsection (b-1) is also | 7 | | applicable to any former employee who on or after the effective | 8 | | date of this amendatory Act of the 98th General Assembly is | 9 | | receiving a retirement annuity pursuant to the provisions of | 10 | | this Section. | 11 | | (b-2) Notwithstanding any other provision of this Article, | 12 | | no automatic annual increase in retirement annuity payable | 13 | | under this Section shall be granted to any person by the Fund | 14 | | in 2015, 2017, and 2019 under this Article or under Section | 15 | | 1-160 of this Code as it applies to this Article. In the years | 16 | | 2016, 2018, 2020, and thereafter, the Fund shall continue to | 17 | | pay amounts accruing from automatic annual increases in the | 18 | | manner provided by this Code. | 19 | | Notwithstanding Section 1-103.1, this subsection (b-2) is | 20 | | applicable without regard to whether the employee was in active | 21 | | service on or after the effective date of this amendatory Act | 22 | | of the 98th General Assembly. This subsection (b-2) is also | 23 | | applicable to any former employee who on or after the effective | 24 | | date of this amendatory Act of the 98th General Assembly is | 25 | | receiving a retirement annuity pursuant to the provisions of | 26 | | this Article. |
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| 1 | | (c) For an employee who retires with less than 30 years of | 2 | | service, the increase in the basic retirement annuity shall | 3 | | begin
not earlier than in the month of January or the month of | 4 | | July, whichever occurs
first, following or coincidental with | 5 | | the employee's attainment of age 60.
| 6 | | Subject to the provisions of subsection (b-2), for For an | 7 | | employee who retires with at least 30 years of service, the
| 8 | | annual increase under this Section shall begin in the month of | 9 | | January or the
month of July, whichever first occurs next | 10 | | following or coincidental with the
later of (1) the first | 11 | | anniversary of retirement or (2) July 1, 1998, without
regard | 12 | | to the attainment of age 60 and without regard to whether or | 13 | | not the
employee was in service on or after the effective date | 14 | | of this amendatory Act
of 1998.
| 15 | | (d) The increase in the basic retirement annuity shall not | 16 | | be applicable
unless the employee otherwise qualified has made | 17 | | contributions to the fund as
provided herein for an equivalent | 18 | | period of one full year. If such
contributions were not made, | 19 | | the employee may make the required payment to the
fund at the | 20 | | time of retirement, in a single sum, without interest.
| 21 | | (e) The additional contributions by an employee towards the | 22 | | annual
increase in basic retirement annuity shall not be | 23 | | refundable, except to
an employee who withdraws and applies for | 24 | | a refund under this Article,
or dies while in service, and also | 25 | | in cases where a temporary annuity
becomes payable. In such | 26 | | cases his contributions shall be refunded
without interest.
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| 1 | | (Source: P.A. 90-766, eff. 8-14-98.)
| 2 | | (40 ILCS 5/12-133.2) (from Ch. 108 1/2, par. 12-133.2)
| 3 | | Sec. 12-133.2. Increases to employee annuitants. The | 4 | | provisions of subsections (b-1) and (b-2) of Section 12-133.1 | 5 | | also apply to the benefits provided under this Section. | 6 | | Employees who
retired on service retirement annuity prior | 7 | | to July 1, 1965 who were at
least 55 years of age at date of | 8 | | retirement and had at least 20 years of
credited service, who | 9 | | shall have attained age 65, and any employee retired
on or | 10 | | after such date who meets such qualifying conditions and who is | 11 | | not
eligible for an annual increase in basic retirement annuity | 12 | | otherwise
provided in this Article, shall be entitled to | 13 | | receive benefits under this
Section.
| 14 | | These benefits shall be in an amount equal to 1 1/2% of the | 15 | | service
retirement annuity multiplied by the number of full | 16 | | years that the annuitant
was in receipt of such annuity. This | 17 | | payment shall begin in January of 1970,
and an additional 1 | 18 | | 1/2% based upon the original grant of annuity shall be
added in | 19 | | January of each year thereafter. Beginning January 1, 1972, the
| 20 | | annual rate of increase in annuity shall be 2% of the original | 21 | | grant of annuity
and shall also apply thereafter to any person | 22 | | who shall have had at least 15
years of credited service and | 23 | | less than 20 years on the same basis as was
applicable to | 24 | | persons retired with 20 or more years of service; provided that
| 25 | | beginning January 1, 1976, the annual rate of increase in |
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| 1 | | retirement annuity
shall be 3% of the basic retirement annuity.
| 2 | | An employee annuitant who otherwise qualifies for the | 3 | | aforesaid
benefit shall make a one-time contribution of 1% of | 4 | | the final monthly average
salary multiplied by the number of | 5 | | completed years of service forming the
basis of his service | 6 | | retirement annuity, provided that if the annuity was
computed | 7 | | on any other basis, the contribution shall be 1% of the rate of
| 8 | | monthly salary in effect on the date of retirement multiplied | 9 | | by the number of
completed years of service forming the basis | 10 | | of his service retirement annuity.
| 11 | | (Source: P.A. 87-1265.)
| 12 | | (40 ILCS 5/12-140) (from Ch. 108 1/2, par. 12-140)
| 13 | | Sec. 12-140. Duty disability benefit. An employee who | 14 | | becomes
disabled as the direct result of injury incurred in the | 15 | | performance of an
act of duty and cannot perform the duties of | 16 | | the regularly assigned position,
is entitled to receive, while | 17 | | so disabled, a benefit of 75% of the salary
at the date when | 18 | | such duty disability benefits commence,
subject to the | 19 | | conditions hereinafter stated , except that beginning January | 20 | | 1, 2015, such duty disability benefits shall be reduced to 74% | 21 | | of that salary; beginning January 1, 2017, such duty disability | 22 | | benefits shall be reduced to 73% of that salary; and beginning | 23 | | January 1, 2019, such duty disability benefits shall be reduced | 24 | | to 72% of that salary .
| 25 | | In the event an employee returns to service from any duty |
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| 1 | | disability and
renders actual employment in pay status | 2 | | performing the duties of the regularly
assigned position for at | 3 | | least 60 days, and again becomes disabled, whether
due to the | 4 | | previous disability or a new disability, the salary to be used
| 5 | | in the computation of the benefit shall be the salary in effect | 6 | | at the date
of the last day of service prior to the latest | 7 | | disability.
| 8 | | The employee shall also receive a further benefit of $20 | 9 | | per month on account
of each eligible minor child as prescribed | 10 | | in Section 12-137, but the combined
benefit to employee and | 11 | | children shall not exceed the annual salary at the
date of such | 12 | | disability less the sums that would be deducted from his
salary | 13 | | for service annuity and spouse's service annuity.
| 14 | | The benefit prescribed herein shall be payable during | 15 | | disability until
the employee attains age 65, if disability is | 16 | | incurred before age 60, or
for a period of 5 years if | 17 | | disability
is incurred at age 60 or older. If the disability is | 18 | | incurred after age
65, this 5 year period may be reduced if | 19 | | such reduction can be justified on
the basis of actuarial cost | 20 | | data approved by the board upon the
recommendation of the | 21 | | actuary. At such time if the employee
remains disabled the | 22 | | employee may retire on a retirement annuity.
| 23 | | If an employee dies as the direct result of injury incurred
| 24 | | in the performance of an act of duty, or if death results from | 25 | | any cause
which is compensable under the Workers' Occupational | 26 | | Diseases
Act, a surviving spouse shall be entitled to a benefit |
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| 1 | | (subject to the modifications
stated in Section 12-141) of 50% | 2 | | of the employee's salary as it was at the
date of injury | 3 | | resulting in death, until the date when the employee would
have | 4 | | attained age 65, if injury was incurred under age 60, or for a | 5 | | period
of 5 years if disability is incurred
at age 60 or older. | 6 | | After such
date, the spouse shall be entitled to receive the | 7 | | reversionary annuity that
would have been fixed had the | 8 | | employee continued in service at the rate
of salary received at | 9 | | the date of his injury resulting in death, until the
employee | 10 | | attained age 65 or as stated herein
and had then retired.
| 11 | | If a spouse remarries while under age 55 while in receipt | 12 | | of a benefit
under this section, the benefit shall terminate. | 13 | | Such termination shall
be final and shall not be affected by | 14 | | any change thereafter in his or her
marital status.
| 15 | | Notwithstanding Section 1-103.1, the changes to this | 16 | | Section made by this amendatory Act of the 98th General | 17 | | Assembly apply to duty disability benefits payable on or after | 18 | | January 1, 2015, regardless of whether the recipient is deemed | 19 | | to be in service on or after the effective date of this | 20 | | amendatory Act. | 21 | | (Source: P.A. 86-272.)
| 22 | | (40 ILCS 5/12-149)
(from Ch. 108 1/2, par. 12-149)
| 23 | | Sec. 12-149. Financing. | 24 | | (a) The board of park commissioners of any such
park | 25 | | district shall annually levy a tax (in addition to the taxes |
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| 1 | | now
authorized by law) upon all taxable property embraced in | 2 | | the district,
at the rate which, when added to the employee | 3 | | contributions under this
Article and applied to the fund | 4 | | created
hereunder, shall be sufficient to provide for the | 5 | | purposes of this
Article in accordance with the provisions | 6 | | thereof. Such tax shall be
levied and collected with and in | 7 | | like manner as the general taxes of
such district, and shall | 8 | | not in any event be included within any
limitations of rate for | 9 | | general park purposes as now or hereafter
provided by law, but | 10 | | shall be excluded therefrom and be in addition
thereto. | 11 | | The amount of such annual tax to and including the year | 12 | | 1977
shall not exceed .0275% of the value, as equalized or | 13 | | assessed by the
Department of Revenue, of all taxable property | 14 | | embraced
within the park district, provided that for the year | 15 | | 1978, and for each
year thereafter, the amount of such annual | 16 | | tax shall be at a rate on the
dollar of assessed valuation of | 17 | | all taxable property that will produce,
when extended, for the | 18 | | year 1978 the following sum: 0.825 times the
amount of employee | 19 | | contributions during the fiscal year 1976; for the
year 1979, | 20 | | 0.85 times the amount of employee contributions during the
| 21 | | fiscal year 1977; for the year 1980, 0.90 times the amount of | 22 | | employee
contributions during the fiscal year 1978; for the | 23 | | year 1981, 0.95 times
the amount of employee contributions | 24 | | during the fiscal year 1979; for the year
1982, 1.00 times the | 25 | | amount of employee contributions during the fiscal year
1980; | 26 | | for the year 1983, 1.05 times the amount of contributions made |
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| 1 | | on behalf
of employees during the fiscal year 1981; and for the | 2 | | year 1984 and each year
thereafter through the year 2013 , an | 3 | | amount equal to 1.10 times the employee contributions during | 4 | | the
fiscal year 2-years prior to the year for which the | 5 | | applicable tax is levied.
For the year 2014, this calculation | 6 | | shall be 1.10 times the amount of employee contributions during | 7 | | the 12-month fiscal year ending June 30, 2012; and for the year | 8 | | 2015, this calculation shall be 1.70 1.10 times the amount of | 9 | | employee contributions during the 12-month fiscal year ending | 10 | | December 31, 2013. For the year 2016, this calculation shall be | 11 | | an amount equal to 1.70 times; for the years 2017 and 2018, | 12 | | this calculation shall be an amount equal to 2.30 times; and | 13 | | for the year 2019 and each year thereafter, until the Fund | 14 | | attains a funded ratio of at least 90% with the funded ratio | 15 | | being the ratio of the actuarial value of assets to the total | 16 | | actuarial liability, this calculation shall be an amount equal | 17 | | to 2.90 times the employee contributions during the
fiscal year | 18 | | 2 years prior to the year for which the applicable tax is | 19 | | levied. Beginning in the fiscal year in which the Fund attains | 20 | | a funding ratio of at least 90%, the contribution shall be the | 21 | | lesser of (1) 2.90 times the employee contributions during the | 22 | | fiscal year 2 years prior to the year for which the applicable | 23 | | tax is levied, or (2) the amount needed to maintain a funded | 24 | | ratio of 90%. | 25 | | In addition to the contributions required under the other | 26 | | provisions of this Article, by November 1 of the following |
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| 1 | | specified years, the employer shall contribute to the Fund the | 2 | | following specified amounts: $12,500,000 in 2015; $12,500,000 | 3 | | in 2016; and $50,000,000 in 2019. The additional employer | 4 | | contributions required under this subsection (a) are intended | 5 | | to decrease the unfunded liability of the Fund and shall not | 6 | | decrease the amount of the employer contributions required | 7 | | under the other provisions of this Article. The additional | 8 | | employer contributions made under this subsection (a) may be | 9 | | used by the Fund for any of its lawful purposes. | 10 | | (b) As used in this Section, the term "employee | 11 | | contributions" means contributions
by employees for retirement | 12 | | annuity, spouse's annuity, automatic increase in
retirement | 13 | | annuity, and death benefit.
| 14 | | In making required contributions under this Section, the | 15 | | employer may, in lieu of levying all or a portion of the tax | 16 | | required under this Section, deposit an amount not less than | 17 | | the required amount of employer contributions derived from any | 18 | | source legally available for that purpose. | 19 | | (c) In respect to park district employees, other than | 20 | | policemen, who are
transferred to the employment of a city by | 21 | | virtue of the "Exchange of
Functions Act of 1957", the | 22 | | corporate authorities of the city shall
annually levy a tax | 23 | | upon all taxable property embraced in the city, as
equalized or | 24 | | assessed by the Department of Revenue, at such rate per
cent of | 25 | | the value of such property as shall be sufficient, when added
| 26 | | to the amounts deducted from the salary or wages of such |
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| 1 | | employees, to
provide the benefits to which such employees, | 2 | | their dependents and
beneficiaries are entitled under the | 3 | | provisions of this Article. The
park district shall not levy a | 4 | | tax hereunder in respect to such
employees. The tax levied by | 5 | | the city under authority of this Article
shall be in addition | 6 | | to and exclusive of all other taxes authorized by
law to be | 7 | | levied by the city for corporate, annuity fund or other
| 8 | | purposes.
| 9 | | (d) All moneys accruing from the levy and collection of | 10 | | taxes, pursuant
to this section, shall be remitted to the board | 11 | | by the employers as soon
as they are received. Where a city has | 12 | | levied a tax pursuant to this
Section in respect to park | 13 | | district employees transferred to the
employment of a city, the | 14 | | treasurer of such city or other authorized
officer shall remit | 15 | | the moneys accruing from the levy and collection of
such tax as | 16 | | soon as they are received. Such remittances shall be made
upon | 17 | | a pro rata share basis, whereby each employer shall pay to the
| 18 | | board such employer's proportionate percentage of each payment | 19 | | of taxes
received by it, according to the ratio which its tax | 20 | | levy for this fund
bears to the total tax levy of such | 21 | | employer.
| 22 | | (e) Should any board of park commissioners included under | 23 | | the provisions
of this Article be without authority to levy the | 24 | | tax provided in this
Section the corporation authorities | 25 | | (meaning the supervisor, clerk and
assessor) of the town or | 26 | | towns for which such board shall be the board
of park |
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| 1 | | commissioners shall levy such tax.
| 2 | | (f) Employer contributions to the Fund may be reduced by | 3 | | $5,000,000 for
calendar years 2004 and 2005.
| 4 | | (Source: P.A. 97-973, eff. 8-16-12.)
| 5 | | (40 ILCS 5/12-150) (from Ch. 108 1/2, par. 12-150)
| 6 | | Sec. 12-150. Contributions by employees for service
| 7 | | annuity. | 8 | | (a) From each payment of salary to a present employee | 9 | | beginning
August 4, 1961, and prior to September 1, 1971, there | 10 | | shall be deducted
as contributions for service annuity 6% of | 11 | | such payment. Beginning
September 1, 1971, the deduction shall | 12 | | be 6 1/2% of salary. Beginning
January 1, 2015, the deduction | 13 | | shall be 8% of salary.
Beginning January 1, 2017, the deduction | 14 | | shall be 9% of salary. Beginning January 1, 2019, the deduction | 15 | | shall be 10% of salary. These
contributions shall continue | 16 | | until the amounts thus deducted will
provide an accumulation, | 17 | | at regular interest, at least equal to the
amount that would be | 18 | | provided on such date from employee contributions,
assuming | 19 | | regular interest to such date, if such employee had been
| 20 | | contributing in accordance with the provisions of "The 1919 | 21 | | Act" and
this Article from the beginning of his service and the | 22 | | salary of the
employee during his prior service was the same as | 23 | | it was on July 1,
1919, or on July 1, 1937 in the case of an | 24 | | employee of the board.
| 25 | | (b) From each payment of salary to a future entrant |
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| 1 | | beginning August
4, 1961, and prior to September 1, 1971, there | 2 | | shall be deducted as
contributions for service annuity 6% of | 3 | | such payment. Beginning
September 1, 1971, the deduction shall | 4 | | be 6 1/2% of salary.
Beginning January 1, 1990, the deduction | 5 | | shall be 7% of salary. Beginning
January 1, 2015, the deduction | 6 | | shall be 8% of salary.
Beginning January 1, 2017, the deduction | 7 | | shall be 9% of salary. Beginning January 1, 2019, the deduction | 8 | | shall be 10% of salary. Beginning with the first pay period on | 9 | | or after the date when the funded ratio of the Fund is first | 10 | | determined to have reached the 90% funding goal, and each pay | 11 | | period thereafter for as long as the Fund maintains a funding | 12 | | ratio of 90% or more, employee contributions shall be 8.5% of | 13 | | salary for the service annuity. If the funding ratio falls | 14 | | below 90%, then employee contributions for the service annuity | 15 | | shall revert to 10% of salary until such time as the Fund once | 16 | | again is determined to have reached the 90% funding goal, at | 17 | | which time the 8.5% of salary employee contribution for the | 18 | | service annuity shall resume.
| 19 | | (c) For service rendered prior to August 4, 1961, the rates | 20 | | of
contribution by employees for service annuity shall be as | 21 | | follows: July
1, 1919 to July 20, 1947, inclusive, 4% of | 22 | | salary; July 21, 1947 to
August 3, 1961, inclusive, 5% of | 23 | | salary.
| 24 | | For the period from July 1, 1919, to August 4, 1961 such | 25 | | deductions
for a present employee shall continue until such | 26 | | date as the amounts
deducted will provide an accumulation at |
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| 1 | | least equal to that which would
be provided on such date, | 2 | | assuming regular interest to such date, from
deductions from | 3 | | salary of such employee if such employee had been under
the | 4 | | provisions of "The 1919 Act" and this Article from the | 5 | | beginning of
his service and the salary of such employee during | 6 | | his period of prior
service was the same as it was on July 1, | 7 | | 1919 or on July 1, 1937 in the
case of an employee of the board.
| 8 | | (d) Any employee shall have the option to contribute for | 9 | | service
annuity an amount, together with regular interest, | 10 | | equal to the
difference between the amount he had accumulated | 11 | | in the fund on June 30,
1947, from contributions at the rate of | 12 | | 4% of salary, together with
regular interest, and the amount he | 13 | | would have accumulated, together
with regular interest, if he | 14 | | had made contributions at the rate of 5% of
salary. All such | 15 | | contributions shall be subject to salary limitations
and other | 16 | | conditions in effect prior to July 1, 1947. Upon making such
| 17 | | contribution the employer of such employee shall contribute in | 18 | | the ratio
of 2 to 1 with such employee.
| 19 | | (Source: P.A. 86-272.)
| 20 | | (40 ILCS 5/12-150.5 new) | 21 | | Sec. 12-150.5. Use of contributions for health care | 22 | | subsidies. The Fund shall not use any contribution received by | 23 | | the Fund under this Article to provide a subsidy for the cost | 24 | | of participation in a retiree health care program. |
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| 1 | | (40 ILCS 5/12-155.5 new) | 2 | | Sec. 12-155.5. Funding obligation. | 3 | | (a) Beginning January 1, 2015, the board of park | 4 | | commissioners shall be obligated to contribute to the Fund in | 5 | | each fiscal year an amount not less than the amount determined | 6 | | annually under subsection (a) of Section 12-149 of this Code. | 7 | | Notwithstanding any other provision of law, if the board of | 8 | | park commissioners fails to pay the amount guaranteed under | 9 | | this Section within 60 days after the date set forth by the | 10 | | retirement board, the retirement board may bring a mandamus | 11 | | action in the Circuit Court of Cook County to compel the board | 12 | | of park commissioners to make the required payment, | 13 | | irrespective of other remedies that may be available to the | 14 | | Fund.
The obligations and causes of action created under this | 15 | | Section shall be in addition to any other right or remedy | 16 | | otherwise accorded by common law or State or federal law, and | 17 | | nothing in this Section shall be construed to deny, abrogate, | 18 | | impair, or waive any such common law or statutory right or | 19 | | remedy. | 20 | | (b) In ordering the board of park commissioners to make the | 21 | | required payment, the court may order a reasonable payment | 22 | | schedule to enable the board of park commissioners to make the | 23 | | required payment without significantly imperiling the public | 24 | | health, safety, or welfare. Any payments required to be made by | 25 | | the board of park commissioners pursuant to this Section are | 26 | | expressly subordinated to the payment of the principal, |
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| 1 | | interest, and premium, if any, on any bonded debt obligation of | 2 | | the board of park commissioners, either currently outstanding | 3 | | or to be issued, for which the source of repayment or security | 4 | | thereon is derived directly or indirectly from tax revenues | 5 | | collected by the board of park commissioners. Payments on such | 6 | | bonded obligations include any statutory fund transfers or | 7 | | other prefunding mechanisms or formulas set forth, now or | 8 | | hereafter, in State law or bond indentures, into debt service | 9 | | funds or accounts of the board of park commissioners related to | 10 | | such bonded obligations, consistent with the payment schedules | 11 | | associated with such obligations. | 12 | | (40 ILCS 5/12-195 new) | 13 | | Sec. 12-195. Application and expiration of new benefit | 14 | | increases. | 15 | | (a) As used in this Section, "new benefit increase" means | 16 | | an increase in the amount of any benefit provided under this | 17 | | Article, or an expansion of the conditions of eligibility for | 18 | | any benefit under this Article, that results from an amendment | 19 | | to this Code that takes effect after the effective date of this | 20 | | amendatory Act of the 98th General Assembly. | 21 | | (b) Notwithstanding any other provision of this Code or any | 22 | | subsequent amendment to this Code, every new benefit increase | 23 | | is subject to this Section and shall be deemed to be granted | 24 | | only in conformance with and contingent upon compliance with | 25 | | the provisions of this Section. |
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| 1 | | (c) The Public Act enacting a new benefit increase must | 2 | | identify and provide for payment to the Fund of additional | 3 | | funding at least sufficient to fund the resulting annual | 4 | | increase in cost to the Fund as it accrues. | 5 | | Every new benefit increase is contingent upon the General | 6 | | Assembly providing the additional funding required under this | 7 | | subsection (c). The State Actuary shall analyze whether | 8 | | adequate additional funding has been provided for the new | 9 | | benefit increase. A new benefit increase created by a Public | 10 | | Act that does not include the additional funding required under | 11 | | this subsection (c) is null and void. If the State Actuary | 12 | | determines that the additional funding provided for a new | 13 | | benefit increase under this subsection (c) is or has become | 14 | | inadequate, it may so certify to the Governor and the State | 15 | | Comptroller and, in the absence of corrective action by the | 16 | | General Assembly, the new benefit increase shall expire at the | 17 | | end of the fiscal year in which the certification is made. | 18 | | Section 90. The State Mandates Act is amended by adding | 19 | | Section 8.37 as follows: | 20 | | (30 ILCS 805/8.37 new) | 21 | | Sec. 8.37. Exempt mandate. Notwithstanding Sections 6 and 8 | 22 | | of this Act, no reimbursement by the State is required for the | 23 | | implementation of any mandate created by this amendatory Act of | 24 | | the 98th General Assembly. |
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| 1 | | Section 97. Inseverability and severability. The changes | 2 | | made by this amendatory Act are inseverable, except that | 3 | | Section 12-195 of the Illinois Pension Code is severable under | 4 | | Section 1.31 of the Statute on Statutes.
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