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90_HB2443eng
40 ILCS 5/12-133.5 new
40 ILCS 5/12-166 from Ch. 108 1/2, par. 12-166
30 ILCS 805/8.22 new
Amends the Chicago Park District Article of the Pension
Code. Provides an early retirement program for certain
employees who withdraw from service on or after August 31,
1998 and no later than December 31, 1998. Allows the retiree
to establish up to 5 years of additional service credit;
requires an additional employee contribution. Also expands
the investment authority of the Board. Amends the State
Mandates Act to require implementation without reimbursement.
Effective immediately.
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1 AN ACT to amend the Illinois Pension Code by adding
2 Section 12-133.5 and changing Section 12-166, and to amend
3 the State Mandates Act.
4 Be it enacted by the People of the State of Illinois,
5 represented in the General Assembly:
6 Section 5. The Illinois Pension Code is amended by
7 adding Section 12-133.5 and changing Section 12-166 as
8 follows:
9 (40 ILCS 5/12-133.5 new)
10 Sec. 12-133.5. Early retirement incentives.
11 (a) To be eligible for the benefits provided in this
12 Section, a person must:
13 (1) have been, on July 1, 1998, an employee (i)
14 contributing to the Fund in active payroll status in a
15 position of employment under this Article, or (ii)
16 receiving duty or ordinary disability benefits under
17 Section 12-140, 12-142, or 12-143;
18 (2) not have begun to receive a retirement annuity
19 under this Article before August 31, 1998;
20 (3) file with the Board, within 90 days after the
21 effective date of this Section, a written election
22 requesting the benefits provided in this Section;
23 (4) withdraw from service on or after August 31,
24 1998 and no later than December 31, 1998;
25 (5) have attained age 50 on or before the date of
26 withdrawal; and
27 (6) have, by the date of withdrawal, a total of at
28 least 20 years of creditable service with participating
29 systems under the Retirement Systems Reciprocal Act, of
30 which at least 15 years must be under this Fund (not
31 including any creditable service established under this
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1 Section).
2 (b) An eligible person may establish up to 5 years of
3 creditable service under this Article, in increments of one
4 month, by making the contributions specified in subsection
5 (c).
6 The creditable service established under this Section may
7 be used for all purposes under this Article and the
8 Retirement Systems Reciprocal Act, except for the computation
9 of the highest average annual salary under Section 12-133 or
10 the determination of salary under this or any other Article
11 of this Code.
12 (c) For each month of creditable service established
13 under this Section, the person must pay to the Fund an
14 employee contribution to be determined by the Fund, equal to
15 4.50% of the person's monthly salary rate in effect on the
16 date of withdrawal. Subject to the requirements of
17 subsection (d), the person may elect to pay the required
18 employee contribution before the retirement annuity begins or
19 through deduction from the retirement annuity over a period
20 of up to 24 months.
21 If a person who retires under this Section dies before
22 all payments of employee contribution have been made, the
23 remaining payments shall be deducted from any survivor or
24 death benefits payable to the person's surviving spouse or
25 beneficiary.
26 All employee contributions paid under this Section shall
27 be deemed employee contributions for the purposes of
28 determining the tax levy under Section 12-149. Employee
29 contributions made under this Section may be refunded under
30 the same terms and conditions as other employee contributions
31 under this Article.
32 (d) A person who retires under the provisions of this
33 Section shall have his or her retirement annuity calculated
34 under the provisions of Section 12-133, except that the
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1 retirement annuity shall not be subject to the reduction for
2 retirement under age 60 that is specified in Section 12-133.
3 (e) Notwithstanding Section 12-146 of this Article, an
4 annuitant who re-enters service under this Article after
5 receiving a retirement annuity based on the additional
6 benefits provided under this Section thereby forfeits the
7 right to continue to receive those additional benefits and
8 upon again retiring shall have his or her retirement annuity
9 recalculated without the additional benefits provided in this
10 Section.
11 (40 ILCS 5/12-166) (from Ch. 108 1/2, par. 12-166)
12 Sec. 12-166. To invest money. To invest and reinvest
13 the moneys of the fund subject to the requirements and
14 restrictions set forth in this Article and in Sections 1-109,
15 1-109.1, 1-109.2, 1-110, 1-111, 1-114, and 1-115 in
16 accordance with the provisions set forth in Section 1-113 of
17 this Act.
18 No investments shall be purchased or sold or in any
19 manner hypothecated except by the action of the board duly
20 entered in the record of its proceedings.
21 The board may hold, purchase, sell, assign, transfer or
22 dispose of any of the securities and investments in which any
23 of the moneys of the fund or the proceeds of those said
24 investments have been invested.
25 The board shall have the authority to enter into any
26 agreements and to execute any documents that it determines to
27 be necessary to complete any investment transaction.
28 All investments shall be clearly held and accounted for
29 to indicate ownership by the fund. The board may direct the
30 registration of securities or the holding of interests in
31 real property in the name of the fund or in the name of a
32 nominee created for the express purpose of registering
33 securities or holding interests in real property by a
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1 national or state bank or trust company authorized to conduct
2 a trust business in the State of Illinois. The board may
3 hold title to interests in real property in the name of the
4 fund or in the name of a title holding corporation created
5 for the express purpose of holding title to interests in real
6 property.
7 Investments shall be carried at cost or at a value
8 determined in accordance with generally accepted accounting
9 principles and accounting procedures approved by the board.
10 No bank or savings and loan association shall receive
11 investment funds as permitted by this Section, unless it has
12 complied with the requirements established pursuant to
13 Section 6 of the Public Funds Investment Act. Those
14 requirements shall be applicable only at the time of
15 investment and shall not require the liquidation of any
16 investment at any time.
17 The board of trustees of any fund established under this
18 Article may not transfer its investment authority, nor
19 transfer the assets of the fund to any other person or entity
20 for the purpose of consolidating or merging its assets and
21 management with any other pension fund or public investment
22 authority, unless the board resolution authorizing such
23 transfer is submitted for approval to the contributors and
24 retirees of the fund at elections held not less than 30 days
25 after the adoption of such resolution by the board, and such
26 resolution is approved by a majority of the votes cast on the
27 question in both the contributors election and the retirees
28 election. The election procedures and qualifications
29 governing the election of trustees shall govern the
30 submission of resolutions for approval under this paragraph,
31 insofar as they may be made applicable.
32 (Source: P.A. 83-970.)
33 Section 90. The State Mandates Act is amended by adding
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1 Section 8.22 as follows:
2 (30 ILCS 805/8.22 new)
3 Sec. 8.22. Exempt mandate. Notwithstanding Sections 6
4 and 8 of this Act, no reimbursement by the State is required
5 for the implementation of any mandate created by this
6 amendatory Act of 1998.
7 Section 99. Effective date. This Act takes effect upon
8 becoming law.