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| [ Introduced ] | [ Engrossed ] | [ House Amendment 001 ] |
90_HB2443ham002
LRB9008332EGfgam02
1 AMENDMENT TO HOUSE BILL 2443
2 AMENDMENT NO. . Amend House Bill 2443, AS AMENDED,
3 by replacing the title with the following:
4 "AN ACT to amend the Illinois Pension Code by adding
5 Section 12-133.5 and changing Section 12-166, and to amend
6 the State Mandates Act."; and
7 by replacing everything after the enacting clause with the
8 following:
9 "Section 5. The Illinois Pension Code is amended by
10 adding Section 12-133.5 and changing Section 12-166 as
11 follows:
12 (40 ILCS 5/12-133.5 new)
13 Sec. 12-133.5. Early retirement incentives.
14 (a) To be eligible for the benefits provided in this
15 Section, a person must:
16 (1) have been, on July 1, 1998, an employee (i)
17 contributing to the Fund in active payroll status in a
18 position of employment under this Article, or (ii)
19 receiving duty or ordinary disability benefits under
20 Section 12-140, 12-142, or 12-143;
21 (2) not have begun to receive a retirement annuity
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1 under this Article before August 31, 1998;
2 (3) file with the Board, within 90 days after the
3 effective date of this Section, a written election
4 requesting the benefits provided in this Section;
5 (4) withdraw from service on or after August 31,
6 1998 and no later than December 31, 1998;
7 (5) have attained age 50 on or before the date of
8 withdrawal; and
9 (6) have, by the date of withdrawal, a total of at
10 least 20 years of creditable service with participating
11 systems under the Retirement Systems Reciprocal Act, of
12 which at least 15 years must be under this Fund (not
13 including any creditable service established under this
14 Section).
15 (b) An eligible person may establish up to 5 years of
16 creditable service under this Article, in increments of one
17 month, by making the contributions specified in subsection
18 (c).
19 The creditable service established under this Section may
20 be used for all purposes under this Article and the
21 Retirement Systems Reciprocal Act, except for the computation
22 of the highest average annual salary under Section 12-133 or
23 the determination of salary under this or any other Article
24 of this Code.
25 (c) For each month of creditable service established
26 under this Section, the person must pay to the Fund an
27 employee contribution to be determined by the Fund, equal to
28 4.50% of the person's monthly salary rate in effect on the
29 date of withdrawal. Subject to the requirements of
30 subsection (d), the person may elect to pay the required
31 employee contribution before the retirement annuity begins or
32 through deduction from the retirement annuity over a period
33 of up to 24 months.
34 If a person who retires under this Section dies before
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1 all payments of employee contribution have been made, the
2 remaining payments shall be deducted from any survivor or
3 death benefits payable to the person's surviving spouse or
4 beneficiary.
5 All employee contributions paid under this Section shall
6 be deemed employee contributions for the purposes of
7 determining the tax levy under Section 12-149. Employee
8 contributions made under this Section may be refunded under
9 the same terms and conditions as other employee contributions
10 under this Article.
11 (d) A person who retires under the provisions of this
12 Section shall have his or her retirement annuity calculated
13 under the provisions of Section 12-133, except that the
14 retirement annuity shall not be subject to the reduction for
15 retirement under age 60 that is specified in Section 12-133.
16 (e) Notwithstanding Section 12-146 of this Article, an
17 annuitant who re-enters service under this Article after
18 receiving a retirement annuity based on the additional
19 benefits provided under this Section thereby forfeits the
20 right to continue to receive those additional benefits and
21 upon again retiring shall have his or her retirement annuity
22 recalculated without the additional benefits provided in this
23 Section.
24 (40 ILCS 5/12-166) (from Ch. 108 1/2, par. 12-166)
25 Sec. 12-166. To invest money. To invest and reinvest
26 the moneys of the fund subject to the requirements and
27 restrictions set forth in this Article and in Sections 1-109,
28 1-109.1, 1-109.2, 1-110, 1-111, 1-114, and 1-115 in
29 accordance with the provisions set forth in Section 1-113 of
30 this Act.
31 No investments shall be purchased or sold or in any
32 manner hypothecated except by the action of the board duly
33 entered in the record of its proceedings.
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1 The board may hold, purchase, sell, assign, transfer or
2 dispose of any of the securities and investments in which any
3 of the moneys of the fund or the proceeds of those said
4 investments have been invested.
5 The board shall have the authority to enter into any
6 agreements and to execute any documents that it determines to
7 be necessary to complete any investment transaction.
8 All investments shall be clearly held and accounted for
9 to indicate ownership by the fund. The board may direct the
10 registration of securities or the holding of interests in
11 real property in the name of the fund or in the name of a
12 nominee created for the express purpose of registering
13 securities or holding interests in real property by a
14 national or state bank or trust company authorized to conduct
15 a trust business in the State of Illinois. The board may
16 hold title to interests in real property in the name of the
17 fund or in the name of a title holding corporation created
18 for the express purpose of holding title to interests in real
19 property.
20 Investments shall be carried at cost or at a value
21 determined in accordance with generally accepted accounting
22 principles and accounting procedures approved by the board.
23 No bank or savings and loan association shall receive
24 investment funds as permitted by this Section, unless it has
25 complied with the requirements established pursuant to
26 Section 6 of the Public Funds Investment Act. Those
27 requirements shall be applicable only at the time of
28 investment and shall not require the liquidation of any
29 investment at any time.
30 The board of trustees of any fund established under this
31 Article may not transfer its investment authority, nor
32 transfer the assets of the fund to any other person or entity
33 for the purpose of consolidating or merging its assets and
34 management with any other pension fund or public investment
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1 authority, unless the board resolution authorizing such
2 transfer is submitted for approval to the contributors and
3 retirees of the fund at elections held not less than 30 days
4 after the adoption of such resolution by the board, and such
5 resolution is approved by a majority of the votes cast on the
6 question in both the contributors election and the retirees
7 election. The election procedures and qualifications
8 governing the election of trustees shall govern the
9 submission of resolutions for approval under this paragraph,
10 insofar as they may be made applicable.
11 (Source: P.A. 83-970.)
12 Section 90. The State Mandates Act is amended by adding
13 Section 8.22 as follows:
14 (30 ILCS 805/8.22 new)
15 Sec. 8.22. Exempt mandate. Notwithstanding Sections 6
16 and 8 of this Act, no reimbursement by the State is required
17 for the implementation of any mandate created by this
18 amendatory Act of 1998.
19 Section 99. Effective date. This Act takes effect upon
20 becoming law.".