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90_HB2597
40 ILCS 5/5-132.3 new
30 ILCS 805/8.22 new
Amends the Chicago Police Article of the Pension Code to
provide early retirement incentives. Grants up to 5 years of
creditable service and up to 5 years of age enhancement.
Requires employee contributions at half the regular rate.
Requires the City to pay the resulting unfunded accrued
liability to the Fund over 7 years, with interest. Amends
the State Mandates Act to require implementation without
reimbursement. Effective immediately.
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LRB9009031EGfg
1 AN ACT to amend the Illinois Pension Code by adding
2 Section 5-132.3 and to amend the State Mandates Act.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Illinois Pension Code is amended by adding
6 Section 5-132.3 as follows:
7 (40 ILCS 5/5-132.3 new)
8 Sec. 5-132.3. Early retirement incentives.
9 (a) To be eligible for the benefits provided in this
10 Section, a person must:
11 (1) on any day during October, 1998, be (i) an
12 active policeman participating in the Fund, (ii) on
13 layoff status from such a position with a right of
14 re-employment or recall to service, or (iii) on leave of
15 absence from such a position, but only if the employee
16 has not been receiving disability benefits under this
17 Article for a continuous period of 2 years or more as of
18 the date of application;
19 (2) have not previously retired under this Article;
20 (3) file with the Board on or before July 1, 1999,
21 a written application requesting the benefits provided in
22 this Section;
23 (4) establish eligibility to receive a retirement
24 annuity under this Article (for which purpose any age
25 enhancement or creditable service received under this
26 Section may be used) and elect to receive the retirement
27 annuity beginning not earlier than the first day of the
28 month following the month in which this amendatory Act of
29 1998 takes effect, and not later than January 1, 2000 or
30 such other date as may be established under subsection
31 (e).
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1 (b) An eligible person may establish up to 5 years of
2 creditable service under this Article, in increments of one
3 month, by making the contributions specified in subsection
4 (c). In addition, for each month of creditable service
5 established under this Section, a person's age at retirement
6 shall be deemed to be one month older than it actually is.
7 The creditable service established under this Section may
8 be used for all purposes under this Article, except that it
9 shall not affect the computation of salary.
10 The age enhancement established under this Section may be
11 used for all purposes under this Article, except for purposes
12 of calculating annuities based on a money-purchase formula,
13 the reversionary annuity under Section 5-132.2, and any
14 distributions based upon age that are required under federal
15 law.
16 (c) For all creditable service established under this
17 Section, a person must pay to the Fund an employee
18 contribution to be determined by the Fund, based on the
19 amount of service to be established, the member's final
20 average salary (as used in computing the retirement annuity),
21 and one-half of the total retirement contribution rate in
22 effect for the member under this Article on the date of
23 withdrawal. The employee may elect to pay the entire
24 contribution before the retirement annuity commences, or to
25 have it deducted from the annuity over a period not longer
26 than 24 months. If the retired employee dies before the
27 contribution has been paid in full, the unpaid installments
28 may be deducted from any annuity or other benefit payable to
29 the employee's survivors.
30 (d) Notwithstanding Section 5-159, an annuitant who has
31 received any age enhancement or creditable service under this
32 Section and who reenters service under this Article other
33 than as a part-time crossing guard shall thereby forfeit such
34 age enhancement and creditable service, and become entitled
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1 to a refund of the contributions made pursuant to this
2 Section.
3 (e) In order to ensure that the public health and safety
4 are not jeopardized by the simultaneous retirement of large
5 numbers of critical personnel, the superintendent of the
6 police department may extend the January 1, 2000 deadline for
7 beginning to receive a retirement annuity that is established
8 in subdivision (a)(4) of this Section to a date no later than
9 January 1, 2001, by notifying the Board in writing no later
10 than October 31, 1999.
11 (f) The Board shall determine the unfunded accrued
12 liability created by the granting of early retirement
13 benefits to policemen under this Section, and shall certify
14 the amount of that liability to the mayor, comptroller,
15 treasurer, and city council of the City by February 1, 2000,
16 or as soon thereafter as is practical. In addition to any
17 other payments to the Fund required under this Code, the City
18 shall pay to the Fund the amount of that unfunded accrued
19 liability over a period of 7 years at the rate of 14.3% of
20 the certified amount per year, plus interest on the unpaid
21 balance at the actuarial rate as calculated and certified
22 annually by the Board.
23 Section 90. The State Mandates Act is amended by adding
24 Section 8.22 as follows:
25 (30 ILCS 805/8.22 new)
26 Sec. 8.22. Exempt mandate. Notwithstanding Sections 6
27 and 8 of this Act, no reimbursement by the State is required
28 for the implementation of any mandate created by this
29 amendatory Act of 1998.
30 Section 99. Effective date. This Act takes effect upon
31 becoming law.