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90_SB0717
SEE INDEX
Amends the Illinois Municipal Retirement Fund (IMRF)
Article of the Pension Code. Removes the pre-existing
condition limitation on temporary disability benefits for
persons whose date of disability is after May 31, 1997.
Allows members and retirees to receive up to 24 months of
credit for military service not preceded by employment upon
payment of the corresponding employee and employer
contributions; requires employer approval. Allows all credit
for military service or a leave of absence established by a
sheriff's law enforcement employee to be deemed credit in
that capacity. Allows an inactive member to designate a
death benefit beneficiary. Changes certain obsolete
references to educational service regions. Deletes
provisions limiting retroactive payment of retirement
benefits. Accelerates the automatic increase in surviving
spouse's annuity for survivors of annuitants who die in
December. Provides for participation by persons who return
to service in a position requiring between 600 and 1000 hours
per year after retiring from such a position with an employer
that allowed participation for those employees. Restores the
availability of reversionary annuities. Authorizes employers
to increase disability benefits from 50% to 60% of earnings,
with the the resulting costs to be paid by the employer and
employees. Authorizes the Fund to offer deferred
compensation and tax-deferred annuity programs to its
members. Requires an employee contribution for certain prior
service credits granted to employees of entities that begin
participating in the Fund after January 1, 1998. Makes other
changes. Amends the Unemployment Insurance Act. Provides
that the Department of Employment Security shall make
available to the Illinois Municipal Retirement Fund, upon
request, information that may assist the Fund in determining
whether a recipient of a disability payment from the Fund is
employed. Amends the State Mandates Act to require
implementation without reimbursement. Effective immediately.
LRB9001752EGfg
LRB9001752EGfg
1 AN ACT in relation to public employee pension benefits,
2 amending named Acts.
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
6 changing Sections 7-109.3, 7-111, 7-113, 7-116, 7-118,
7 7-132.2, 7-137, 7-139, 7-141, 7-145, 7-146, 7-152, 7-156,
8 7-171, and 7-172 and adding Section 7-199.3 as follows:
9 (40 ILCS 5/7-109.3) (from Ch. 108 1/2, par. 7-109.3)
10 Sec. 7-109.3. "Sheriff's Law Enforcement Employees".
11 (a) "Sheriff's law enforcement employee" means:
12 (1) A county sheriff and all deputies, other than
13 special deputies, employed on a full time basis in the
14 office of the sheriff.
15 (2) A person who has elected to participate in this
16 Fund under Section 3-109.1 of this Code, and who is
17 employed by a participating municipality to perform
18 police duties.
19 (3) A law enforcement officer employed on a full
20 time basis by a Forest Preserve District, provided that
21 such officer shall be deemed a "sheriff's law enforcement
22 employee" for the purposes of this Article, and service
23 in that capacity shall be deemed to be service as a
24 sheriff's law enforcement employee, only if the board of
25 commissioners of the District have so elected by adoption
26 of an affirmative resolution. Such election, once made,
27 may not be rescinded.
28 (4) A person not eligible to participate in a fund
29 established under Article 3 of this Code who is employed
30 on a full-time basis by a participating municipality or
31 participating instrumentality to perform police duties at
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1 an airport, but only if the governing authority of the
2 employer has approved sheriff's law enforcement employee
3 status for its airport police employees by adoption of an
4 affirmative resolution. Such approval, once given, may
5 not be rescinded.
6 (b) An employee who is a sheriff's law enforcement
7 employee and prior to the time for which he is granted
8 military leave or authorized leave of absence shall receive
9 service credit in that capacity. Sheriff's law enforcement
10 employees shall not be entitled to out of State service
11 credit under Section 7-139.
12 (Source: P.A. 86-273; 87-850.)
13 (40 ILCS 5/7-111) (from Ch. 108 1/2, par. 7-111)
14 Sec. 7-111. "Prior Service": The period beginning on
15 the day a participating employee first became an employee of
16 a municipality, or of an instrumentality thereof, or of a
17 municipality or instrumentality that was superseded by the
18 employing participating municipality, or of a participating
19 instrumentality, and ending on the effective date of
20 participation of the municipality or participating
21 instrumentality, or upon the latest termination of service
22 prior to such effective date, but excluding (a) the
23 intervening periods during which the employee was separated
24 from the service of the municipality and all
25 instrumentalities thereof, or of the participating
26 instrumentality, or (b) periods during which the employee was
27 employed in a position normally requiring less than 600 hours
28 of service during a year, and or (c) periods during which the
29 employee served by persons beginning participating employment
30 in a position normally requiring performance of duty less
31 than 1000 hours per year, if the with a participating
32 municipality or participating instrumentality adopted, which
33 prior to its effective the date of participation, it is
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1 included and subject to this Article adopts a resolution or
2 ordinance excluding persons in such positions from
3 participation.
4 (Source: P.A. 82-459.)
5 (40 ILCS 5/7-113) (from Ch. 108 1/2, par. 7-113)
6 Sec. 7-113. "Creditable Service": All periods of prior
7 service or current service for which credits are granted
8 under the provisions of Section 7-139, including all periods
9 during which a participating employee was an employee of a
10 municipality or instrumentality which was superseded by the
11 employing participating municipality.
12 (Source: Laws 1967, p. 2091.)
13 (40 ILCS 5/7-116) (from Ch. 108 1/2, par. 7-116)
14 Sec. 7-116. "Final rate of earnings":
15 (a) For retirement and survivor annuities, the monthly
16 earnings obtained by dividing the total earnings received by
17 the employee during the period of either (1) the 48
18 consecutive months of service within the last 120 months of
19 service in which his total earnings were the highest, or (2)
20 the employee's (his total period of service,) by the number
21 of months of service in such period.
22 (b) For death benefits, the higher of the rate
23 determined under paragraph (a) of this Section or total
24 earnings received in the last 12 months of service divided by
25 twelve. If the deceased employee has less than 12 months of
26 service, the monthly final rate shall be the monthly rate of
27 pay the employee was receiving when he began service.
28 (c) For disability benefits, the total earnings of a
29 participating employee in the last 12 calendar months of
30 service prior to the date he becomes disabled divided by 12.
31 (d) In computing the final rate of earnings: (1) the
32 earnings rate for all periods of prior service shall be
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1 considered equal to the average earnings rate for the last 3
2 calendar years of prior service for which creditable service
3 is received under Section 7-139 most immediately preceding
4 the effective date, or, if there is less than 3 years of
5 creditable prior service, the average for the total prior
6 service period for which creditable service is received under
7 Section 7-139; (2) for out of state service and authorized
8 leave, the earnings rate shall be the rate upon which service
9 credits are granted; (3) periods of military leave shall not
10 be considered; (4) the earnings rate for all periods of
11 disability shall be considered equal to the rate of earnings
12 upon which the employee's disability benefits are computed
13 for such periods; (5) the earnings to be considered for each
14 of the final three months of the final earnings period shall
15 not exceed 125% of the highest earnings of any other month in
16 the final earnings period; and (6) the annual amount of final
17 rate of earnings shall be the monthly amount multiplied by
18 the number of months of service normally required by the
19 position in a year.
20 (Source: P.A. 78-255.)
21 (40 ILCS 5/7-118) (from Ch. 108 1/2, par. 7-118)
22 Sec. 7-118. "Beneficiary":
23 (a) The surviving spouse of an employee or of an
24 employee annuitant, or if no surviving spouse survives, the
25 person or persons designated by a participating employee or
26 employee annuitant, or if no person so designated survives,
27 or if no designation is on file, the estate of the employee
28 or employee annuitant. The person or persons designated by a
29 beneficiary annuitant, or if no person designated survives,
30 or if no designation is on file, the estate of the
31 beneficiary annuitant. The estate of a surviving spouse
32 annuitant where the employee or employee annuitant filed no
33 designation, or no person designated survives at the death of
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1 a surviving spouse annuitant. Designations of beneficiaries
2 shall be in writing on forms prescribed by the board and
3 effective upon filing in the fund offices. The designation
4 forms shall provide for contingent beneficiaries. Divorce,
5 dissolution or annulment of marriage revokes the designation
6 of an employee's former spouse as a beneficiary on a
7 designation executed before entry of judgment for divorce,
8 dissolution or annulment of marriage.
9 (b) Notwithstanding the foregoing, an employee, former
10 employee who has not yet received a retirement annuity or
11 separation benefit, or employee annuitant may elect to name
12 any person, trust or charity to be the primary beneficiary of
13 any death benefit payable by reason of his death. Such
14 election shall state specifically whether it is his intention
15 to exclude the spouse, shall be in writing, and may be
16 revoked at any time. Such election or revocation shall take
17 effect upon being filed in the fund offices.
18 (c) If a surviving spouse annuity is payable to a former
19 spouse upon the death of an employee annuitant, the former
20 spouse, unless designated by the employee annuitant after
21 dissolution of the marriage, shall not be the beneficiary for
22 the purposes of the $3,000 death benefit payable under
23 subparagraph 6 of Section 7-164. This benefit shall be paid
24 to the designated beneficiary of the employee annuitant or,
25 if there is no designation, then to the estate of the
26 employee annuitant.
27 (Source: P.A. 89-136, eff. 7-14-95.)
28 (40 ILCS 5/7-132.2) (from Ch. 108 1/2, par. 7-132.2)
29 Sec. 7-132.2. Regional office of education Educational
30 Service Regions.
31 (a) A regional office of education serving 2 Educational
32 Service Regions comprised of two or more counties, except
33 those serving including a county of 1,000,000 inhabitants or
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1 more, formed pursuant to Article 3A of the School Code shall
2 be included within and be subject to this Article, effective
3 as of the effective date of consolidation. For the purpose
4 of this Article, a regional office of education serving 2 an
5 Educational Service Region comprised of two or more counties
6 shall be considered a participating instrumentality but the
7 requirements of Sections 7-106 and 7-132 shall not apply to
8 it. Each county served by a regional office of education
9 that serves 2 in an Educational Service Region comprised of
10 two or more counties shall pay its proportional cost of the
11 office's region's municipality contributions. This cost
12 shall be included in the budget prepared under and
13 apportioned in the manner provided by Section 3A-7 of the
14 School Code. Each county may include the cost for its share
15 of the municipality contributions required for the regional
16 office of education region in its appropriation and tax levy
17 under Section 7-171 of this Article.
18 (b) At the request of the county, the Board may
19 designate any participating regional office of education
20 Educational Service Region to be a separate reporting entity
21 distinct from the county.
22 (Source: P.A. 87-740.)
23 (40 ILCS 5/7-137) (from Ch. 108 1/2, par. 7-137)
24 Sec. 7-137. Participating and covered employees.
25 (a) The persons described in this paragraph (a) shall be
26 included within and be subject to this Article and eligible
27 to benefits from this fund, beginning upon the dates
28 hereinafter specified:
29 1. Except as to the employees specifically excluded
30 under the provisions of this Article, all persons who are
31 employees of any municipality (or instrumentality
32 thereof) or participating instrumentality on the
33 effective date of participation of the municipality or
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1 participating instrumentality beginning upon such
2 effective date.
3 2. Except as to the employees specifically excluded
4 under the provisions of this Article, all persons, who
5 became employees of any participating municipality (or
6 instrumentality thereof) or participating instrumentality
7 after the effective date of participation of such
8 municipality or participating instrumentality, beginning
9 upon the date such person becomes an employee.
10 3. All persons who file notice with the board as
11 provided in paragraph (b)2 or (b)3 and 3 of this Section,
12 beginning upon the date of filing such notice.
13 (b) The following described persons shall not be
14 considered participating employees eligible for benefits from
15 this fund, but shall be included within and be subject to
16 this Article (each of the descriptions is not exclusive but
17 is cumulative):
18 1. Any person who occupies an office or is employed
19 in a position normally requiring performance of duty
20 during less than 600 hours a year for a municipality
21 (including all instrumentalities thereof) or a
22 participating instrumentality. If a school treasurer
23 performs services for more than one school district, the
24 total number of hours of service normally required for
25 the several school districts shall be considered to
26 determine whether he qualifies under this paragraph;
27 2. Any person who holds elective office unless he
28 has elected while in that office in a written notice on
29 file with the board to become a participating employee;
30 3. Any person working for a city hospital unless
31 any such person, while in active employment, has elected
32 in a written notice on file with the board to become a
33 participating employee and notification thereof is
34 received by the board;
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1 4. Any person who becomes an employee after June
2 30, 1979 as a public service employment program
3 participant under the federal Comprehensive Employment
4 and Training Act and whose wages or fringe benefits are
5 paid in whole or in part by funds provided under such
6 Act.
7 (c) Any person electing to be a participating employee,
8 pursuant to paragraph (b) of this Section may not change such
9 election, except as provided in Section 7-137.1.
10 (d) Any employee who occupied the position of school
11 nurse in any participating municipality on August 8, 1961 and
12 continuously thereafter until the effective date of the
13 exercise of the option authorized by this subparagraph, who
14 on August 7, 1961 was a member of the Teachers' Retirement
15 System of Illinois, by virtue of certification by the
16 Department of Registration and Education as a public health
17 nurse, may elect to terminate participation in this Fund in
18 order to re-establish membership in such System. The
19 election may be exercised by filing written notice thereof
20 with the Board or with the Board of Trustees of said
21 Teachers' Retirement System, not later than September 30,
22 1963, and shall be effective on the first day of the calendar
23 month next following the month in which the notice was filed.
24 If the written notice is filed with such Teachers' Retirement
25 System, that System shall immediately notify this Fund, but
26 neither failure nor delay in notification shall affect the
27 validity of the employee's election. If the option is
28 exercised, the Fund shall notify such Teachers' Retirement
29 System of such fact and transfer to that system the amounts
30 contributed by the employee to this Fund, including interest
31 at 3% per annum, but excluding contributions applicable to
32 social security coverage during the period beginning August
33 8, 1961 to the effective date of the employee's election.
34 Participation in this Fund as to any credits on or after
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1 August 8, 1961 and up to the effective date of the employee's
2 election shall terminate on such effective date.
3 (e) Any participating municipality or participating
4 instrumentality, other than a school district or special
5 education joint agreement created under Section 10-22.31 of
6 the School Code, may, by a resolution or ordinance duly
7 adopted by its governing body, elect to exclude from
8 participation and eligibility for benefits all persons who
9 are employed after the effective date of such resolution or
10 ordinance and who occupy an office or are employed in a
11 position normally requiring performance of duty for less than
12 1000 hours per year for the participating municipality
13 (including all instrumentalities thereof) or participating
14 instrumentality, except for persons employed in a position
15 normally requiring performance of duty for 600 hours or more
16 per year (i) by such participating municipality or
17 participating instrumentality prior to the effective date of
18 the resolution or ordinance, (ii) by any participating
19 municipality or participating instrumentality prior to
20 January 1, 1982, and (iii) by a participating municipality or
21 participating instrumentality that, which had not adopted
22 such a resolution when the person was employed, and the
23 function served by the employee's position is assumed by
24 another participating municipality or participating
25 instrumentality, or (iv) by any participating municipality or
26 participating instrumentality upon a return to employment
27 after retirement from a position (not necessarily with the
28 same employer) normally requiring the performance of duty for
29 at least 600 but less than 1000 hours per year for which the
30 person participated in the Fund. A participating
31 municipality or participating instrumentality included in and
32 subject to this Article after January 1, 1982 may adopt such
33 resolution or ordinance only prior to the date it becomes
34 included in and subject to this Article. Notwithstanding the
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1 foregoing, a participating municipality or participating
2 instrumentality which is formed solely to succeed to the
3 functions of a participating municipality or participating
4 instrumentality shall be considered to have adopted any such
5 resolution or ordinance which may have been applicable to the
6 employees performing such functions. The election made by
7 the resolution or ordinance shall take effect at the time
8 specified in the resolution or ordinance, and once effective
9 shall be irrevocable.
10 The change in this subsection made by this amendatory Act
11 of 1997 also applies to persons whose initial withdrawal from
12 service occurred before the effective date of this amendatory
13 Act of 1997.
14 (Source: P.A. 86-272; 87-740; 87-850.)
15 (40 ILCS 5/7-139) (from Ch. 108 1/2, par. 7-139)
16 Sec. 7-139. Credits and creditable service to employees.
17 (a) Each participating employee shall be granted credits
18 and creditable service, for purposes of determining the
19 amount of any annuity or benefit to which he or a beneficiary
20 is entitled, as follows:
21 1. For prior service: Each participating employee who is
22 an employee of a participating municipality or participating
23 instrumentality on the effective date shall be granted
24 creditable service, but no credits under paragraph 2 of this
25 subsection (a), for periods his entire period of prior
26 service for which credit has not been received under any
27 other pension fund or retirement system established under
28 this Code, as follows:.
29 If the effective date of participation for the
30 participating municipality or participating instrumentality
31 is on or before January 1, 1998, creditable service shall be
32 granted for the entire period of prior service with that
33 employer without any employee contribution.
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1 If the effective date of participation for the
2 participating municipality or participating instrumentality
3 is after January 1, 1998, creditable service shall be granted
4 for the last 20% of the period of prior service with that
5 employer, but no more than 5 years, without any employee
6 contribution. A participating employee may establish
7 creditable service for the remainder of the period of prior
8 service with that employer by making an application in
9 writing, accompanied by payment of an employee contribution
10 in an amount determined by the Fund, based on the employee
11 contribution rates in effect at the time of application for
12 the creditable service and the employee's salary rate on the
13 effective date of participation for that employer, plus
14 interest at the effective rate from the date of the prior
15 service to the date of payment. Application for this
16 creditable service may be made at any time while the employee
17 is still in service.
18 Any person who has withdrawn from the service of a
19 participating municipality or participating instrumentality
20 prior to the effective date, who reenters the service of the
21 same municipality or participating instrumentality after the
22 effective date and becomes a participating employee is
23 entitled to creditable service for prior service as otherwise
24 provided in this subdivision (a)(1) only if he or she renders
25 2 years of service as a participating employee after the
26 effective date. provided Application for such service must
27 be is made while in a participating status. The salary rate
28 to be used in the calculation of the required employee
29 contribution, if any, shall be the employee's salary rate at
30 the time of first reentering service with the employer after
31 the employer's effective date of participation.
32 2. For current service, each participating employee
33 shall be credited with:
34 a. Additional credits of amounts equal to each
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1 payment of additional contributions received from him
2 under Section 7-173, as of the date the corresponding
3 payment of earnings is payable to him.
4 b. Normal credits of amounts equal to each payment
5 of normal contributions received from him, as of the date
6 the corresponding payment of earnings is payable to him,
7 and normal contributions made for the purpose of
8 establishing out-of-state service credits as permitted
9 under the conditions set forth in paragraph 6 of this
10 subsection (a).
11 c. Municipality credits in an amount equal to 1.4
12 times the normal credits, except those established by
13 out-of-state service credits, as of the date of
14 computation of any benefit if these credits would
15 increase the benefit.
16 d. Survivor credits equal to each payment of
17 survivor contributions received from the participating
18 employee as of the date the corresponding payment of
19 earnings is payable, and survivor contributions made for
20 the purpose of establishing out-of-state service credits.
21 3. For periods of temporary and total and permanent
22 disability benefits, each employee receiving disability
23 benefits shall be granted creditable service for the period
24 during which disability benefits are payable. Normal and
25 survivor credits, based upon the rate of earnings applied for
26 disability benefits, shall also be granted if such credits
27 would result in a higher benefit to any such employee or his
28 beneficiary.
29 4. For authorized leave of absence without pay: A
30 participating employee shall be granted credits and
31 creditable service for periods of authorized leave of absence
32 without pay under the following conditions:
33 a. An application for credits and creditable
34 service is shall be submitted to the board while the
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1 employee is in a status of active employment, and within
2 2 years after termination of the leave of absence period
3 for which credits and creditable service are sought.
4 b. Not more than 12 complete months of creditable
5 service for authorized leave of absence without pay shall
6 be counted for purposes of determining any benefits
7 payable under this Article.
8 c. Credits and creditable service shall be granted
9 for leave of absence only if such leave is approved by
10 the governing body of the municipality, including
11 approval of the estimated cost thereof to the
12 municipality as determined by the fund, and employee
13 contributions, plus interest at the effective rate
14 applicable for each year from the end of the period of
15 leave to date of payment, have been paid to the fund in
16 accordance with Section 7-173. The contributions shall
17 be computed upon the assumption earnings continued during
18 the period of leave at the rate in effect when the leave
19 began.
20 d. Benefits under the provisions of Sections 7-141,
21 7-146, 7-150 and 7-163 shall become payable to employees
22 on authorized leave of absence, or their designated
23 beneficiary, only if such leave of absence is creditable
24 hereunder, and if the employee has at least one year of
25 creditable service other than the service granted for
26 leave of absence. Any employee contributions due may be
27 deducted from any benefits payable.
28 e. No credits or creditable service shall be
29 allowed for leave of absence without pay during any
30 period of prior service.
31 5. For military service: The governing body of a
32 municipality or participating instrumentality may elect to
33 allow creditable service to participating employees who leave
34 their employment to serve in the armed forces of the United
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1 States for all periods of such service, provided that the
2 such person returns to active employment within 90 days after
3 completion of full time active duty, but no creditable
4 service shall be allowed such person for any period that can
5 be used in the computation of a pension or any other pay or
6 benefit, other than pay for active duty, for service in any
7 branch of the armed forces of the United States. If
8 necessary to the computation of any benefit, the board shall
9 establish municipality credits for participating employees
10 under this paragraph on the assumption that the employee
11 received earnings at the rate received at the time he left
12 the employment to enter the armed forces. A participating
13 employee in the armed forces shall not be considered an
14 employee during such period of service and no additional
15 death and no disability benefits are payable for death or
16 disability during such period.
17 Any participating employee who left his employment with a
18 municipality or participating instrumentality to serve in the
19 armed forces of the United States and who again became a
20 participating employee within 90 days after completion of
21 full time active duty by entering the service of a different
22 municipality or participating instrumentality, which has
23 elected to allow creditable service for periods of military
24 service under the preceding paragraph, shall also be allowed
25 creditable service for his period of military service on the
26 same terms that would apply if he had been employed, before
27 entering military service, by the municipality or
28 instrumentality which employed him after he left the military
29 service and the employer costs arising in relation to such
30 grant of creditable service shall be charged to and paid by
31 that municipality or instrumentality.
32 Notwithstanding the foregoing, any participating employee
33 shall be entitled to creditable service as required by any
34 federal law relating to re-employment rights of persons who
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1 served in the United States Armed Services. Such creditable
2 service shall be granted upon payment by the member of an
3 amount equal to the employee contributions which would have
4 been required had the employee continued in service at the
5 same rate of earnings during the military leave period, plus
6 interest at the effective rate.
7 5.1. In addition to any creditable service established
8 under paragraph 5 of this subsection (a), creditable service
9 may be granted for up to 24 months of service in the armed
10 forces of the United States.
11 In order to receive creditable service for military
12 service under this paragraph 5.1, a participating employee or
13 annuitant must (1) apply to the Fund in writing and provide
14 evidence of the military service that is satisfactory to the
15 Board; (2) obtain the written approval of the current
16 employer or, in the case of an annuitant, any former employer
17 under which the annuitant participated in the Fund; and (3)
18 make contributions to the Fund equal to (i) the employee
19 contributions that would have been required had the service
20 been rendered as a member, plus (ii) an amount determined by
21 the board to be equal to the employer's normal cost of the
22 benefits accrued for that military service, plus (iii)
23 interest on items (i) and (ii) from the date of first
24 membership in the Fund to the date of payment. If payment is
25 made during the 6-month period that begins 3 months after the
26 effective date of this amendatory Act of 1997, the required
27 interest shall be at the rate of 2.5% per year, compounded
28 annually; otherwise, the required interest shall be
29 calculated at the regular interest rate.
30 This paragraph 5.1 applies to any person who on or after
31 its effective date is a participating employee under the
32 Fund, and also to any person whose status as a participating
33 employee terminated prior to that date, whether or not the
34 person is an annuitant on that date. In the case of an
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1 annuitant who applies for credit allowable under this
2 paragraph and makes the required contributions, the annuity
3 shall be recalculated to include the additional service
4 credit, with the increase taking effect on the date the Fund
5 receives written notification of the annuitant's intent to
6 purchase the credit, if payment of all the required
7 contributions is made within 60 days of that notice, or else
8 on the first annuity payment date following the date of
9 payment of the required contributions. In calculating the
10 automatic annual increase for an annuity that has been
11 recalculated under this Section, the increase attributable to
12 the additional service allowable under this amendatory Act of
13 1997 shall be included in the calculation of automatic annual
14 increases accruing after the effective date of the
15 recalculation.
16 6. For out-of-state service: Creditable service shall be
17 granted for service rendered to an out-of-state local
18 governmental body under the following conditions: The
19 employee had participated and has irrevocably forfeited all
20 rights to benefits in the out-of-state public employees
21 pension system; the governing body of his participating
22 municipality or instrumentality authorizes the employee to
23 establish such service; the employee has 2 years current
24 service with this municipality or participating
25 instrumentality; the employee makes a payment of
26 contributions, which shall be computed at 8% (normal) plus 2%
27 (survivor) times length of service purchased times the
28 average rate of earnings for the first 2 years of service
29 with the municipality or participating instrumentality whose
30 governing body authorizes the service established plus
31 interest at the effective rate on the date such credits are
32 established, payable from the date the employee completes the
33 required 2 years of current service to date of payment. In
34 no case shall more than 120 months of creditable service be
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1 granted under this provision.
2 7. For retroactive service: Any employee who could have
3 but did not elect to become a participating employee, or who
4 should have been a participant in the Municipal Public
5 Utilities Annuity and Benefit Fund before that fund was
6 superseded, may receive creditable service for the period of
7 service not to exceed 50 months. Any employee who is a
8 participating employee on or after September 24, 1981 and who
9 was excluded from participation by the age restrictions
10 removed by Public Act 82-596 may receive creditable service
11 for the period, on or after January 1, 1979, excluded by the
12 age restriction and, in addition, if the governing body of
13 the participating municipality or participating
14 instrumentality elects to allow creditable service for all
15 employees excluded by the age restriction prior to January 1,
16 1979, for service during the period prior to that date
17 excluded by the age restriction. Any employee who was
18 excluded from participation by the age restriction removed by
19 Public Act 82-596 and who is not a participating employee on
20 or after September 24, 1981 may receive creditable service
21 for service after January 1, 1979. Creditable service under
22 this paragraph shall be granted upon payment of the employee
23 contributions which would have been required had he
24 participated, with interest at the effective rate for each
25 year from the end of the period of service established to
26 date of payment.
27 8. For accumulated unused sick leave: A participating
28 employee who is applying for a retirement annuity shall be
29 entitled to creditable service for that portion of the
30 employee's his accumulated unused sick leave for which
31 payment is not received, as follows:
32 a. Sick leave days shall be limited to those
33 accumulated under a sick leave plan established by a
34 participating municipality or participating
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1 instrumentality which is available to all employees or a
2 class of employees.
3 b. Only sick leave days accumulated with a
4 participating municipality or participating
5 instrumentality with which the employee was in service
6 within 60 days of the effective date of his retirement
7 annuity shall be credited; If the employee was in service
8 with more than one employer during this period only the
9 sick leave days with the employer with which the employee
10 has the greatest number of unpaid sick leave days shall
11 be considered.
12 c. The creditable service granted shall be
13 considered solely for the purpose of computing the amount
14 of the retirement annuity and shall not be used to
15 establish any minimum service period required by any
16 provision of the Illinois Pension Code, the effective
17 date of the retirement annuity, or the final rate of
18 earnings.
19 d. The creditable service shall be at the rate of
20 1/20 of a month for each full sick day, provided that no
21 more than 12 months may be credited under this
22 subdivision 8.
23 e. Employee contributions shall not be required for
24 creditable service under this subdivision 8.
25 f. Each participating municipality and
26 participating instrumentality with which an employee has
27 service within 60 days of the effective date of his
28 retirement annuity shall certify to the board the number
29 of accumulated unpaid sick leave days credited to the
30 employee at the time of termination of service.
31 9. For service transferred from another system: Credits
32 and creditable service shall be granted for service under
33 Article 3, 4, 5, 14 or 16 of this Act, to any active member
34 of this Fund, and to any inactive member who has been a
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1 county sheriff, upon transfer of such credits pursuant to
2 Section 3-110.3, 4-108.3, 5-235, 14-105.6 or 16-131.4, and
3 payment by the member of the amount by which (1) the employer
4 and employee contributions that would have been required if
5 he had participated in this Fund as a sheriff's law
6 enforcement employee during the period for which credit is
7 being transferred, plus interest thereon at the effective
8 rate for each year, compounded annually, from the date of
9 termination of the service for which credit is being
10 transferred to the date of payment, exceeds (2) the amount
11 actually transferred to the Fund. Such transferred service
12 shall be deemed to be service as a sheriff's law enforcement
13 employee for the purposes of Section 7-142.1.
14 (b) Creditable service - amount: 1. One month of
15 creditable service shall be allowed for each month for which
16 a participating employee made contributions as required under
17 Section 7-173, or for which creditable service is otherwise
18 granted hereunder. Not more than 1 month of service shall be
19 credited and counted for 1 calendar month, and not more than
20 1 year of service shall be credited and counted for any
21 calendar year. A calendar month means a nominal month
22 beginning on the first day thereof, and a calendar year means
23 a year beginning January 1 and ending December 31.
24 2. A seasonal employee shall be given 12 months of
25 creditable service if he renders the number of months of
26 service normally required by the position in a 12-month
27 period and he remains in service for the entire 12-month
28 period. Otherwise a fractional year of service in the number
29 of months of service rendered shall be credited.
30 3. An intermittent employee shall be given creditable
31 service for only those months in which a contribution is made
32 under Section 7-173.
33 (c) No application for correction of credits or
34 creditable service shall be considered unless the board
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1 receives an application for correction while (1) the
2 applicant is a participating employee and in active
3 employment with a participating municipality or
4 instrumentality, or (2) while the applicant is actively
5 participating in a pension fund or retirement system which is
6 a participating system under the Retirement Systems
7 Reciprocal Act. A participating employee or other applicant
8 shall not be entitled to credits or creditable service unless
9 the required employee contributions are made in a lump sum or
10 in installments made in accordance with board rule.
11 (d) Upon the granting of a retirement, surviving spouse
12 or child annuity, a death benefit or a separation benefit, on
13 account of any employee, all individual accumulated credits
14 shall thereupon terminate. Upon the withdrawal of additional
15 contributions, the credits applicable thereto shall thereupon
16 terminate.
17 (Source: P.A. 86-273; 86-1028; 87-740.)
18 (40 ILCS 5/7-141) (from Ch. 108 1/2, par. 7-141)
19 Sec. 7-141. Retirement annuities - Conditions.
20 Retirement annuities shall be payable as hereinafter set
21 forth:
22 (a) A participating employee who, regardless of cause,
23 is separated from the service of all participating
24 municipalities and instrumentalities thereof and
25 participating instrumentalities shall be entitled to a
26 retirement annuity provided:
27 1. He is at least age 55, or in the case of a
28 person who is eligible to have his annuity calculated
29 under Section 7-142.1, he is at least age 50.;
30 2. He is (i) an employee who was employed by any
31 participating municipality or participating
32 instrumentality which had not elected to exclude persons
33 employed in positions normally requiring performance of
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1 duty for less than 1000 hours per year or was employed in
2 a position normally requiring performance of duty for 600
3 hours or more per year prior to such election by any
4 participating municipality or participating
5 instrumentality included in and subject to this Article
6 on or before the effective date of this amendatory Act of
7 1981 which made such election and is not entitled to
8 receive earnings for employment in a position normally
9 requiring performance of duty for 600 hours or more per
10 year for any participating municipality and
11 instrumentalities thereof and participating
12 instrumentality; or (ii) an employee who was employed
13 only by a participating municipality or participating
14 instrumentality, or participating municipalities or
15 participating instrumentalities, which have elected to
16 exclude persons in positions normally requiring
17 performance of duty for less than 1000 hours per year
18 after the effective date of such exclusion or which are
19 included under and subject to the Article after the
20 effective date of this amendatory Act of 1981 and elects
21 to exclude persons in such positions, and is not entitled
22 to receive earnings for employment in a position normally
23 requiring performance of duty for 1000 hours or more per
24 year by such a participating municipality or
25 participating instrumentality.;
26 3. The amount of his annuity, before the
27 application of paragraph (b) of Section 7-142, is at
28 least $10 per month.;
29 4. If he first became a participating employee
30 after December 31, 1961, he has at least 8 years of
31 service.
32 (b) Retirement annuities shall be payable:
33 1. As provided in Section 7-119.;
34 2. Except as provided in item 3, upon receipt by
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1 the fund of a written application by the board. The
2 effective date may be no earlier than the first day of
3 the first full calendar month after termination of
4 participating employment. not more than one year prior to
5 the date of the receipt by the fund of the application;
6 3. Upon attainment of age 70 1/2 if (i) the member
7 has not submitted an application for the annuity, (ii)
8 the member has at least 8 years of service credit and is
9 no longer in service, (iii) the pension amount is at
10 least $30 per month, and (iv) the Fund is able to locate
11 the member.;
12 4. To the beneficiary of the deceased annuitant for
13 the unpaid amount accrued to date of death, if any.
14 (c) The amendment to subdivision (b)(2) of this Section
15 made by this amendatory Act of 1997, removing the one year
16 limitation on retroactive annuity, applies to every person
17 who has not yet begun receiving a retirement annuity, without
18 regard to whether the person terminated employment prior to
19 the effective date of this amendatory Act.
20 (Source: P.A. 87-740.)
21 (40 ILCS 5/7-145) (from Ch. 108 1/2, par. 7-145)
22 Sec. 7-145. Reversionary annuities.
23 (a) An employee entitled to a retirement annuity may
24 elect to provide a reversionary annuity for a beneficiary if,
25 at the time such retirement annuity begins:
26 1. Under the provisions of paragraph (a) 1 of Section
27 7-142 he is entitled to an immediate annuity of at least $10
28 per month; and
29 2. His accumulated additional and optional credits are
30 sufficient to provide a reversionary annuity, of at least $10
31 per month, for the beneficiary.
32 (b) An election shall become effective only:
33 1. If a written notice thereof by the employee is
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1 received by the board together with his application for
2 retirement annuity; and
3 2. If the amount of the beneficiary's reversionary
4 annuity specified in the notice is not less than $10 nor more
5 than that which can be provided, at the time, by the
6 accumulation of additional and optional credits.
7 (c) The amount of the reversionary annuity shall be that
8 specified in the notice of election.
9 (d) Reversionary annuity shall begin the first day of
10 the month following the month in which the last payment of
11 the employee annuity is payable because of death, provided
12 the beneficiary is alive at such time. If the beneficiary
13 does not survive the annuitant, no reversionary annuity shall
14 be payable, but only the death benefit as provided in
15 Sections 7-163 and 7-164.
16 (e) No reversionary annuity shall be awarded to be
17 effective on or after January 1, 1986, but reversionary
18 annuities granted prior to that date shall continue to be
19 paid.
20 (Source: P.A. 84-812.)
21 (40 ILCS 5/7-146) (from Ch. 108 1/2, par. 7-146)
22 Sec. 7-146. Temporary disability benefits - Eligibility.
23 Temporary disability benefits shall be payable to
24 participating employees as hereinafter provided.
25 (a) The participating employee shall be considered
26 temporarily disabled if:
27 1. He is unable to perform the duties of any
28 position which might reasonably be assigned to him by his
29 employing municipality or instrumentality thereof or
30 participating instrumentality due to mental or physical
31 disability caused by bodily injury or disease, other than
32 as a result of self-inflicted injury or addiction to
33 narcotic drugs;
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1 2. The Board has received written certifications
2 from at least one 1 licensed and practicing physician and
3 the governing body of the employing municipality or
4 instrumentality thereof or participating instrumentality
5 stating that the employee meets the conditions set forth
6 in subparagraph 1 of this paragraph (a).
7 (b) A temporary disability benefit shall be payable to a
8 temporarily disabled employee provided:
9 1. He:
10 (i) has at least 1 year of service immediately
11 preceding at the date the temporary disability was
12 incurred and has made contributions to the fund for
13 at least the number of months of service normally
14 required in his position during a 12-month period,
15 or has at least 5 years of service credit, the last
16 year of which immediately precedes such date; or
17 (ii) had qualified under clause (i) above, but
18 had an interruption in service with the same
19 participating municipality or participating
20 instrumentality of not more than 3 months in the 12
21 months preceding the date the temporary disability
22 was incurred and was not paid a separation benefit;
23 or
24 (iii) had qualified under clause (i) above,
25 but had an interruption after 20 or more years of
26 creditable service, was not paid a separation
27 benefit, and returned to service prior to the date
28 the disability was incurred.
29 Item (iii) of this subdivision shall apply to all
30 employees whose disabilities were incurred on or after
31 July 1, 1985, and any such employee who becomes eligible
32 for a disability benefit under item (iii) shall be
33 entitled to receive a lump sum payment of any accumulated
34 disability benefits which may accrue from the date the
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1 disability was incurred until the effective date of this
2 amendatory Act of 1987.
3 2. He has been temporarily disabled for at least 30
4 days, except where a former temporary or permanent and
5 total disability has reoccurred within 6 months after the
6 employee has returned to service.
7 3. He is receiving no earnings from a participating
8 municipality or instrumentality thereof or participating
9 instrumentality, except as allowed under subsection (f)
10 of Section 7-152.
11 4. He has not refused to submit to a reasonable
12 physical examination by a physician appointed by the
13 Board.
14 5. His disability is not the result of a mental or
15 physical condition which existed on the earliest date of
16 service from which he has uninterrupted service,
17 including prior service, at the date of his disability,
18 provided that this limitation is not applicable if the
19 date of disability is after May 31, 1997, nor is it shall
20 not be applicable to a participating employee who: (i) on
21 the date of disability has 5 years of creditable service,
22 exclusive of creditable service for periods of
23 disability; or (ii) received no medical treatment for the
24 condition for the 3 years immediately prior to such
25 earliest date of service.
26 6. He is not separated from the service of the
27 participating municipality or instrumentality thereof or
28 participating instrumentality which employed him on the
29 date his temporary disability was incurred; for the
30 purposes of payment of temporary disability benefits, a
31 participating employee, whose employment relationship is
32 terminated by his employing municipality, shall be deemed
33 not to be separated from the service of his employing
34 municipality or participating instrumentality if he
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1 continues disabled by the same condition and so long as
2 he is otherwise entitled to such disability benefit.
3 (Source: P.A. 86-272; 87-740.)
4 (40 ILCS 5/7-152) (from Ch. 108 1/2, par. 7-152)
5 Sec. 7-152. Disability benefits - Amount. The amount of
6 the monthly temporary and total and permanent disability
7 benefits shall be 50% of the participating employee's final
8 rate of earnings on the date disability was incurred, subject
9 to the following adjustments:
10 (a) The amount of the monthly temporary and total and
11 permanent disability benefits shall be 60% (rather than 50%)
12 of the participating employee's final rate of earnings on the
13 date disability was incurred, if the date of disability
14 occurs after the employer files with the board an undertaking
15 to be responsible for the additional costs resulting from
16 this increase. The undertaking may provide for all or a
17 portion of those additional costs to be collected by the
18 employer from its employees, through deductions from earnings
19 or in any other manner. The undertaking may be terminated by
20 the employer (or rejected by the board) at any time, in which
21 case benefits granted thereafter shall be based on the 50%
22 rate, but benefits already based on the 60% rate shall be
23 unaffected by the termination of the undertaking.
24 (a-5) If the participating employee has a reduced rate
25 of earnings at the time his employment ceases because of
26 disability, the rate of earnings shall be computed on the
27 basis of his last 12 month period of full-time employment.
28 (b) If the participating employee is eligible for a
29 disability benefit under the Federal Social Security Act, the
30 amount of monthly disability benefits shall be reduced, but
31 not to less than $10 a month, by the amount he would be
32 eligible to receive as a disability benefit under the Federal
33 Social Security Act, whether or not because of service as a
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1 covered employee under this Article. The reduction shall be
2 effective as of the month the employee is eligible for Social
3 Security disability benefits. The Board may make such
4 reduction if it appears that the employee may be so eligible
5 pending determination of eligibility and make an appropriate
6 adjustment if necessary after such determination. If the
7 employee, because of his refusal to accept rehabilitation
8 services under the Federal Rehabilitation Act of 1973 or the
9 Federal Social Security Act, or because he is receiving
10 workers' compensation benefits, has his Social Security
11 benefits reduced or terminated, the disability benefit shall
12 be reduced as if the employee were receiving his full Social
13 Security disability benefit.
14 (c) If the employee is over age 65, was not eligible for
15 a Social Security benefit immediately before reaching age 65
16 and is eligible for a Social Security old-age insurance
17 benefit, the amount of the monthly disability benefit shall
18 be reduced, but not to less than $10 a month, by the amount
19 of the old-age insurance benefit to which the employee is
20 entitled whether or not the employee applies for the Social
21 Security old-age insurance benefit. This reduction shall be
22 made in the month after the month in which the employee
23 attains age 65. However, if the employee was receiving a
24 Social Security disability benefit before reaching age 65,
25 the disability benefits after age 65 shall be determined
26 under subsection (b) of this Section.
27 (d) The amount of disability benefits shall not be
28 reduced by reason of any increase, other than one resulting
29 from a correction in the employee's wage records, in the
30 amount of disability or old-age insurance benefits under the
31 Federal Social Security Act which takes effect after the
32 month of the initial reduction under paragraph (b) or (c) of
33 this Section.
34 (e) If the employee in any month receives compensation
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1 from gainful employment which is more than 25% of the final
2 rate of earnings on which his disability benefits are based,
3 the temporary disability benefit payable for that month shall
4 be reduced by an amount equal to such excess.
5 (f) An employee who has been disabled for at least 30
6 days may return to work for the employer on a part-time basis
7 for a trial work period of up to one year, during which the
8 disability shall be deemed to continue. Service credit shall
9 continue to accrue and the disability benefit shall continue
10 to be paid during the trial work period, but the benefit
11 shall be reduced by the amount of earnings received by the
12 disabled employee. Return to service on a full-time basis
13 shall terminate the trial work period. The reduction under
14 this subsection (f) shall be in lieu of the reduction, if
15 any, required under subsection (e).
16 (g) Beginning January 1, 1988, every total and permanent
17 disability benefit shall be increased by 3% of the original
18 amount of the benefit, not compounded, on each January 1
19 following the later of (1) the date the total and permanent
20 disability benefit begins, or (2) the date the total and
21 permanent disability benefit would have begun if the employee
22 had been paid a temporary disability benefit for 30 months.
23 (Source: P.A. 87-740.)
24 (40 ILCS 5/7-156) (from Ch. 108 1/2, par. 7-156)
25 Sec. 7-156. Surviving spouse annuities - amount.
26 (a) The amount of surviving spouse annuity shall be:
27 (1). Upon the death of an employee annuitant or
28 such person entitled, upon application, to a retirement
29 annuity at date of death, (i) an amount equal to 1/2 of
30 the retirement annuity which was or would have been
31 payable exclusive of the amount so payable which was
32 provided from additional credits, and disregarding any
33 election made under paragraph (b) of Section 7-142, plus
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1 (ii) an annuity which could be provided at the then
2 attained age of the surviving spouse and under actuarial
3 tables then in effect, from the excess of the additional
4 credits, (excluding any such credits used to create a
5 reversionary annuity) used to provide the annuity granted
6 pursuant to paragraph (a)(2) of Section 7-142 of this
7 article over the total annuity payments made pursuant
8 thereto.
9 (2). Upon the death of a participating employee on
10 or after attainment of age 55, an amount equal to 1/2 of
11 the retirement annuity which he could have had as of the
12 date of death had he then retired and applied for
13 annuity, exclusive of the portion thereof which could
14 have been provided from additional credits, and
15 disregarding paragraph (b) of Section 7-142, plus an
16 amount equal to the annuity which could be provided from
17 the total of his accumulated additional credits at date
18 of death, on the basis of the attained age of the
19 surviving spouse on such date.
20 (3). Upon the death of a participating employee
21 before age 55, an amount equal to 1/2 of the retirement
22 annuity which he could have had as of his attained age on
23 the date of death, had he then retired and applied for
24 annuity, and the provisions of this Article that no such
25 annuity shall begin until the employee has attained at
26 least age 55 were not applicable, exclusive of the
27 portion thereof which could have been provided from
28 additional credits and disregarding paragraph (b) of
29 Section 7-142, plus an amount equal to the annuity which
30 could be provided from the total of his accumulated
31 additional credits at date of death, on the basis of the
32 attained age of the surviving spouse on such date.
33 If a surviving spouse is more than 5 years younger than
34 the deceased, that portion of the annuity which is not based
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1 on additional credits shall be reduced in the ratio of the
2 value of a life annuity of $1 per year at an age of 5 years
3 less than the attained age of the deceased, at the earlier of
4 the date of the death or the date his retirement annuity
5 begins, to the value of a life annuity of $1 per year at the
6 attained age of the surviving spouse on such date, according
7 to actuarial tables approved by the Board.
8 In computing the amount of a surviving spouse annuity,
9 incremental increases of retirement annuities to the date of
10 death of the employee annuitant shall be considered.
11 (b) Each surviving spouse annuity payable on January 1,
12 1988 shall be increased on that date by 3% of the original
13 amount of the annuity. Each surviving spouse annuity that
14 begins after January 1, 1988 shall be increased on the
15 January 1 next occurring after the annuity begins, by an
16 amount equal to (i) 3% of the original amount thereof if the
17 deceased employee was receiving a retirement annuity at the
18 time of his death; otherwise (ii) 0.167% of the original
19 amount thereof for each complete month which has elapsed
20 since the date the annuity began. However, if the death of a
21 retirement annuitant occurs in the month of December, the
22 initial increase under this subsection shall be effective
23 with the first payment of the surviving spouse annuity; in
24 this case, references in this Article to the original amount
25 of the surviving spouse annuity shall be deemed to refer to
26 the calculated amount of the annuity before the immediate
27 increase was applied.
28 On each January 1 after the date of the initial increase
29 under this subsection, each surviving spouse annuity shall be
30 increased by 3% of the originally granted amount of the
31 annuity.
32 The change in this subsection made by this amendatory Act
33 of 1997 applies to deaths occurring on or after December 1,
34 1997, without regard to whether the deceased employee was in
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1 service on or after the effective date of this amendatory Act
2 of 1997.
3 (Source: P.A. 85-941.)
4 (40 ILCS 5/7-171) (from Ch. 108 1/2, par. 7-171)
5 Sec. 7-171. Finance; taxes.
6 (a) Each municipality other than a school district shall
7 appropriate an amount sufficient to provide for the current
8 municipality contributions required by Section 7-172 of this
9 Article, for the fiscal year for which the appropriation is
10 made and all amounts due for municipal contributions for
11 previous years. Those municipalities which have been assessed
12 an annual amount to amortize its unfunded obligation, as
13 provided in subparagraph 5 of paragraph (a) of Section 7-172
14 of this Article, shall include in the appropriation an amount
15 sufficient to pay the amount assessed. The appropriation
16 shall be based upon an estimate of assets available for
17 municipality contributions and liabilities therefor for the
18 fiscal year for which appropriations are to be made,
19 including funds available from levies for this purpose in
20 prior years.
21 (b) For the purpose of providing monies for municipality
22 contributions, beginning for the year in which a municipality
23 is included in this fund:
24 (1) A municipality other than a school district may
25 levy a tax which shall not exceed the amount appropriated
26 for municipality contributions.
27 (2) A school district may levy a tax in an amount
28 reasonably calculated at the time of the levy to provide
29 for the municipality contributions required under Section
30 7-172 of this Article for the fiscal years for which
31 revenues from the levy will be received and all amounts
32 due for municipal contributions for previous years. Any
33 levy adopted before the effective date of this amendatory
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1 Act of 1995 by a school district shall be considered
2 valid and authorized to the extent that the amount was
3 reasonably calculated at the time of the levy to provide
4 for the municipality contributions required under Section
5 7-172 for the fiscal years for which revenues from the
6 levy will be received and all amounts due for municipal
7 contributions for previous years. In no event shall a
8 budget adopted by a school district limit a levy of that
9 school district adopted under this Section.
10 (c) Any county which is served by a regional office of
11 education that serves 2 a part of an educational service
12 region comprised of two or more counties formed under Section
13 3A of the School Code may include in its appropriation an
14 amount sufficient to provide its proportionate share of the
15 municipality contributions for that regional office of
16 education of the region. The tax levy authorized by this
17 Section may include an amount necessary to provide monies for
18 this contribution.
19 (d) Any county that is a part of a multiple-county
20 health department or consolidated health department which is
21 formed under "An Act in relation to the establishment and
22 maintenance of county and multiple-county public health
23 departments", approved July 9, 1943, as amended, and which is
24 a participating instrumentality may include in the county's
25 appropriation an amount sufficient to provide its
26 proportionate share of municipality contributions of the
27 department. The tax levy authorized by this Section may
28 include the amount necessary to provide monies for this
29 contribution.
30 (e) Such tax shall be levied and collected in like
31 manner, with the general taxes of the municipality and shall
32 be in addition to all other taxes which the municipality is
33 now or may hereafter be authorized to levy upon all taxable
34 property therein, and shall be exclusive of and in addition
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1 to the amount of tax levied for general purposes under
2 Section 8-3-1 of the "Illinois Municipal Code", approved May
3 29, 1961, as amended, or under any other law or laws which
4 may limit the amount of tax which the municipality may levy
5 for general purposes. The tax may be levied by the governing
6 body of the municipality without being authorized as being
7 additional to all other taxes by a vote of the people of the
8 municipality.
9 (f) The county clerk of the county in which any such
10 municipality is located, in reducing tax levies shall not
11 consider any such tax as a part of the general tax levy for
12 municipality purposes, and shall not include the same in the
13 limitation of any other tax rate which may be extended.
14 (g) The amount of the tax to be levied in any year
15 shall, within the limits herein prescribed, be determined by
16 the governing body of the respective municipality.
17 (h) The revenue derived from any such tax levy shall be
18 used only for the purposes specified in this Article, and, as
19 collected, shall be paid to the treasurer of the municipality
20 levying the tax. Monies received by a county treasurer for
21 use in making contributions to a regional office of education
22 consolidated educational service region for its municipality
23 contributions shall be held by him for that purpose and paid
24 to the regional office of education region in the same manner
25 as other monies appropriated for the expense of the regional
26 office region.
27 (Source: P.A. 89-329, eff. 8-17-95.)
28 (40 ILCS 5/7-172) (from Ch. 108 1/2, par. 7-172)
29 Sec. 7-172. Contributions by participating
30 municipalities and participating instrumentalities.
31 (a) Each participating municipality and each
32 participating instrumentality shall make payment to the fund
33 as follows:
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1 1. municipality contributions in an amount
2 determined by applying the municipality contribution rate
3 to each payment of earnings paid to each of its
4 participating employees;
5 2. an amount equal to the employee contributions
6 provided by paragraphs (a) and (b) of Section 7-173,
7 whether or not the employee contributions are withheld as
8 permitted by that Section;
9 3. all accounts receivable, together with interest
10 charged thereon, as provided in Section 7-209;
11 4. if it has no participating employees with
12 current earnings, an amount payable which, over a period
13 of 20 years beginning with the year following an award of
14 benefit, will amortize, at the effective rate for that
15 year, any negative balance in its municipality reserve
16 resulting from the award. This amount when established
17 will be payable as a separate contribution whether or not
18 it later has participating employees.
19 (b) A separate municipality contribution rate shall be
20 determined for each calendar year for all participating
21 municipalities together with all instrumentalities thereof.
22 The municipality contribution rate shall be determined for
23 participating instrumentalities as if they were participating
24 municipalities. The municipality contribution rate shall be
25 the sum of the following percentages:
26 1. The percentage of earnings of all the
27 participating employees of all participating
28 municipalities and participating instrumentalities which,
29 if paid over the entire period of their service, will be
30 sufficient when combined with all employee contributions
31 available for the payment of benefits, to provide all
32 annuities for participating employees, and the $3,000
33 death benefit payable under Sections 7-158 and 7-164,
34 such percentage to be known as the normal cost rate.
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1 2. The percentage of earnings of the participating
2 employees of each participating municipality and
3 participating instrumentalities necessary to adjust for
4 the difference between the present value of all benefits,
5 excluding temporary and total and permanent disability
6 and death benefits, to be provided for its participating
7 employees and the sum of its accumulated municipality
8 contributions and the accumulated employee contributions
9 and the present value of expected future employee and
10 municipality contributions pursuant to subparagraph 1 of
11 this paragraph (b). This adjustment shall be spread over
12 the remainder of the period of 40 years from the first of
13 the year following the date of determination.
14 3. The percentage of earnings of the participating
15 employees of all municipalities and participating
16 instrumentalities necessary to provide the present value
17 of all temporary and total and permanent disability
18 benefits granted during the most recent year for which
19 information is available.
20 4. The percentage of earnings of the participating
21 employees of all participating municipalities and
22 participating instrumentalities necessary to provide the
23 present value of the net single sum death benefits
24 expected to become payable from the reserve established
25 under Section 7-206 during the year for which this rate
26 is fixed.
27 5. The percentage of earnings necessary to meet any
28 deficiency arising in the Terminated Municipality
29 Reserve.
30 (c) A separate municipality contribution rate shall be
31 computed for each participating municipality or participating
32 instrumentality for its sheriff's law enforcement employees.
33 A separate municipality contribution rate shall be
34 computed for the sheriff's law enforcement employees of each
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1 forest preserve district that elects to have such employees.
2 For the period from January 1, 1986 to December 31, 1986,
3 such rate shall be the forest preserve district's regular
4 rate plus 2%.
5 In the event that the Board determines that there is an
6 actuarial deficiency in the account of any municipality with
7 respect to a person who has elected to participate in the
8 Fund under Section 3-109.1 of this Code, the Board may adjust
9 the municipality's contribution rate so as to make up that
10 deficiency over such reasonable period of time as the Board
11 may determine.
12 (d) The Board may establish a separate municipality
13 contribution rate for all employees who are program
14 participants employed under the Federal Comprehensive
15 Employment Training Act by all of the participating
16 municipalities and instrumentalities. The Board may also
17 provide that, in lieu of a separate municipality rate for
18 these employees, a portion of the municipality contributions
19 for such program participants shall be refunded or an extra
20 charge assessed so that the amount of municipality
21 contributions retained or received by the fund for all CETA
22 program participants shall be an amount equal to that which
23 would be provided by the separate municipality contribution
24 rate for all such program participants. Refunds shall be
25 made to prime sponsors of programs upon submission of a claim
26 therefor and extra charges shall be assessed to participating
27 municipalities and instrumentalities. In establishing the
28 municipality contribution rate as provided in paragraph (b)
29 of this Section, the use of a separate municipality
30 contribution rate for program participants or the refund of a
31 portion of the municipality contributions, as the case may
32 be, may be considered.
33 (e) Computations of municipality contribution rates for
34 the following calendar year shall be made prior to the
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1 beginning of each year, from the information available at the
2 time the computations are made, and on the assumption that
3 the employees in each participating municipality or
4 participating instrumentality at such time will continue in
5 service until the end of such calendar year at their
6 respective rates of earnings at such time.
7 (f) Any municipality which is the recipient of State
8 allocations representing that municipality's contributions
9 for retirement annuity purposes on behalf of its employees as
10 provided in Section 12-21.16 of the Illinois Public Aid Code
11 shall pay the allocations so received to the Board for such
12 purpose. Estimates of State allocations to be received
13 during any taxable year shall be considered in the
14 determination of the municipality's tax rate for that year
15 under Section 7-171. If a special tax is levied under
16 Section 7-171, none of the proceeds may be used to reimburse
17 the municipality for the amount of State allocations received
18 and paid to the Board. Any multiple-county or consolidated
19 health department which receives contributions from a county
20 under Section 11.2 of "An Act in relation to establishment
21 and maintenance of county and multiple-county health
22 departments", approved July 9, 1943, as amended, or
23 distributions under Section 3 of the Department of Public
24 Health Act, shall use these only for municipality
25 contributions by the health department.
26 (g) Municipality contributions for the several purposes
27 specified shall, for township treasurers and employees in the
28 offices of the township treasurers who meet the qualifying
29 conditions for coverage hereunder, be allocated among the
30 several school districts and parts of school districts
31 serviced by such treasurers and employees in the proportion
32 which the amount of school funds of each district or part of
33 a district handled by the treasurer bears to the total amount
34 of all school funds handled by the treasurer.
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1 From the funds subject to allocation among districts and
2 parts of districts pursuant to the School Code, the trustees
3 shall withhold the proportionate share of the liability for
4 municipality contributions imposed upon such districts by
5 this Section, in respect to such township treasurers and
6 employees and remit the same to the Board.
7 The municipality contribution rate for an educational
8 service center shall initially be the same rate for each year
9 as the regional office of education consolidated educational
10 service region or school district which serves as its
11 administrative agent. When actuarial data become available,
12 a separate rate shall be established as provided in
13 subparagraph (i) of this Section.
14 The municipality contribution rate for a public agency,
15 other than a vocational education cooperative, formed under
16 the Intergovernmental Cooperation Act shall initially be the
17 average rate for the municipalities which are parties to the
18 intergovernmental agreement. When actuarial data become
19 available, a separate rate shall be established as provided
20 in subparagraph (i) of this Section.
21 (h) Each participating municipality and participating
22 instrumentality shall make the contributions in the amounts
23 provided in this Section in the manner prescribed from time
24 to time by the Board and all such contributions shall be
25 obligations of the respective participating municipalities
26 and participating instrumentalities to this fund. The
27 failure to deduct any employee contributions shall not
28 relieve the participating municipality or participating
29 instrumentality of its obligation to this fund. Delinquent
30 payments of contributions due under this Section may, with
31 interest, be recovered by civil action against the
32 participating municipalities or participating
33 instrumentalities. Municipality contributions, other than
34 the amount necessary for employee contributions and Social
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1 Security contributions, for periods of service by employees
2 from whose earnings no deductions were made for employee
3 contributions to the fund, may be charged to the municipality
4 reserve for the municipality or participating
5 instrumentality.
6 (i) Contributions by participating instrumentalities
7 shall be determined as provided herein except that the
8 percentage derived under subparagraph 2 of paragraph (b) of
9 this Section, and the amount payable under subparagraph 5 of
10 paragraph (a) of this Section, shall be based on an
11 amortization period of 10 years.
12 (Source: P.A. 86-273; 87-850.)
13 (40 ILCS 5/7-199.3 new)
14 Sec. 7-199.3. To establish and administer deferred
15 compensation and tax-deferred annuity programs for units of
16 local government.
17 The Board may establish and administer deferred
18 compensation, tax deferred annuity, and similar tax-savings
19 programs for employees of units of local government, which
20 shall be known as the "IMRF-Plus" program. The program shall
21 provide for the Board to review proposed investment offerings
22 and shall require that only investments determined to be
23 acceptable by the Board may be used for investing
24 compensation contributed to the program.
25 The program shall include appropriate provisions
26 pertaining to its day to day operation, including methods of
27 electing to contribute income, methods of changing the amount
28 of income contributed, methods of selecting from among
29 investment options available under the program, and any other
30 provisions that the Board may deem appropriate.
31 The program shall provide for the preparation of
32 pamphlets describing the program and outlining the options
33 and opportunities available to local government employees
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1 under the program. These pamphlets shall be distributed from
2 time to time to all eligible employees.
3 The program established under this Section shall not be
4 implemented or amended until the Board is satisfied that
5 compensation contributed under the program is not subject to
6 income tax for the year in which it is earned and that the
7 taxation of such compensation will be deferred until the time
8 of its distribution to the employee.
9 The program shall also provide for the recovery of the
10 expenses of its administration by charging those expenses
11 against the earnings from investments, by charging fees
12 equitably prorated among the participating local government
13 employees, or by some other appropriate and equitable method
14 determined by the Board. Different methods for recovery of
15 administrative expenses may be provided in relation to
16 different types of investment programs, and the Board may
17 provide for the allocation of administration expenses among
18 varying types of programs for this purpose.
19 The Board shall review and oversee the administration of
20 the program.
21 This Section does not limit the power or authority of any
22 unit of local government, school district, or institution
23 supported in whole or in part by public funds to establish
24 and administer any other deferred compensation plans or
25 tax-deferred annuity programs that may be authorized by law.
26 Section 10. The Unemployment Insurance Act is amended by
27 changing Section 1900 as follows:
28 (820 ILCS 405/1900) (from Ch. 48, par. 640)
29 Sec. 1900. Disclosure of information.
30 A. Except as provided in this Section, information
31 obtained from any individual or employing unit during the
32 administration of this Act shall:
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1 1. be confidential,
2 2. not be published or open to public inspection,
3 3. not be used in any court in any pending action
4 or proceeding,
5 4. not be admissible in evidence in any action or
6 proceeding other than one arising out of this Act.
7 B. No finding, determination, decision, ruling or order
8 (including any finding of fact, statement or conclusion made
9 therein) issued pursuant to this Act shall be admissible or
10 used in evidence in any action other than one arising out of
11 this Act, nor shall it be binding or conclusive except as
12 provided in this Act, nor shall it constitute res judicata,
13 regardless of whether the actions were between the same or
14 related parties or involved the same facts.
15 C. Any officer or employee of this State who, except
16 with authority of the Director under this Section, shall
17 disclose information shall be guilty of a Class B misdemeanor
18 and shall be disqualified from holding any appointment or
19 employment by the State.
20 D. An individual or his duly authorized agent may be
21 supplied with information from records only to the extent
22 necessary for the proper presentation of his claim for
23 benefits or with his existing or prospective rights to
24 benefits. Discretion to disclose this information belongs
25 solely to the Director and is not subject to a release or
26 waiver by the individual.
27 E. An employing unit may be furnished with information,
28 only if deemed by the Director as necessary to enable it to
29 fully discharge its obligations or safeguard its rights under
30 the Act. Discretion to disclose this information belongs
31 solely to the Director and is not subject to a release or
32 waiver by the employing unit.
33 F. The Director may furnish any information that he may
34 deem proper to any public officer or public agency of this or
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1 any other State or of the federal government dealing with:
2 1. the administration of relief,
3 2. public assistance,
4 3. unemployment compensation,
5 4. a system of public employment offices,
6 5. wages and hours of employment, or
7 6. a public works program.
8 The Director may make available to the Illinois
9 Industrial Commission information regarding employers for the
10 purpose of verifying the insurance coverage required under
11 the Workers' Compensation Act and Workers' Occupational
12 Diseases Act.
13 G. The Director may disclose information submitted by
14 the State or any of its political subdivisions, municipal
15 corporations, instrumentalities, or school or community
16 college districts, except for information which specifically
17 identifies an individual claimant.
18 H. The Director shall disclose only that information
19 required to be disclosed under Section 303 of the Social
20 Security Act, as amended, including:
21 1. any information required to be given the United
22 States Department of Labor under Section 303(a)(6); and
23 2. the making available upon request to any agency
24 of the United States charged with the administration of
25 public works or assistance through public employment, the
26 name, address, ordinary occupation and employment status
27 of each recipient of unemployment compensation, and a
28 statement of such recipient's right to further
29 compensation under such law as required by Section
30 303(a)(7); and
31 3. records to make available to the Railroad
32 Retirement Board as required by Section 303(c)(1); and
33 4. information that will assure reasonable
34 cooperation with every agency of the United States
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1 charged with the administration of any unemployment
2 compensation law as required by Section 303(c)(2); and
3 5. information upon request and on a reimbursable
4 basis to the United States Department of Agriculture and
5 to any State food stamp agency concerning any information
6 required to be furnished by Section 303(d); and
7 6. any wage information upon request and on a
8 reimbursable basis to any State or local child support
9 enforcement agency required by Section 303(e); and
10 7. any information required under the income
11 eligibility and verification system as required by
12 Section 303(f); and
13 8. information that might be useful in locating an
14 absent parent or that parent's employer for the purpose
15 of a child support enforcement program under Title IV of
16 the Social Security Act upon the request of the public
17 agency administering the Federal Parent Locator Service
18 as required by Section 303(h); and
19 9. information, upon request, to representatives of
20 any federal, State or local governmental public housing
21 agency with respect to individuals who have signed the
22 appropriate consent form approved by the Secretary of
23 Housing and Urban Development and who are applying for or
24 participating in any housing assistance program
25 administered by the United States Department of Housing
26 and Urban Development as required by Section 303(i).
27 I. The Director, upon the request of a public agency of
28 Illinois, of the federal government or of any other state
29 charged with the investigation or enforcement of Section 10-5
30 of the Criminal Code of 1961 (or a similar federal law or
31 similar law of another State), may furnish the public agency
32 information regarding the individual specified in the request
33 as to:
34 1. the current or most recent home address of the
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1 individual, and
2 2. the names and addresses of the individual's
3 employers.
4 J. Nothing in this Section shall be deemed to interfere
5 with the disclosure of certain records as provided for in
6 Section 1706 or with the right to make available to the
7 Internal Revenue Service of the United States Department of
8 the Treasury, or the Department of Revenue of the State of
9 Illinois, information obtained under this Act.
10 K. The Department shall make available to the State
11 Scholarship Commission, upon request that it may be necessary
12 or useful to the Commission in the collection of defaulted or
13 delinquent student loans which the Commission administers,
14 information limited to the names and addresses of a
15 borrower's employers.
16 L. The Department shall make available to the State
17 Employees' Retirement System, the State Universities
18 Retirement System, and the Teachers' Retirement System of the
19 State of Illinois, and the Illinois Municipal Retirement
20 Fund, upon request, information in the possession of the
21 Department that may be necessary or useful to the System or
22 Fund for the purpose of determining whether any recipient of
23 a disability benefit from the System or Fund is gainfully
24 employed.
25 M. This Section shall be applicable to the information
26 obtained in the administration of the State employment
27 service, except that the Director may publish or release
28 general labor market information and may furnish information
29 that he may deem proper to an individual, public officer or
30 public agency of this or any other State or the federal
31 government (in addition to those public officers or public
32 agencies specified in this Section) as he prescribes by Rule.
33 N. The Director may require such safeguards as he deems
34 proper to insure that information disclosed pursuant to this
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1 Section is used only for the purposes set forth in this
2 Section.
3 O. (Blank).
4 P. Within 30 days after the effective date of this
5 amendatory Act of 1993 and annually thereafter, the
6 Department shall provide to the Department of Financial
7 Institutions a list of individuals or entities that, for the
8 most recently completed calendar year, report to the
9 Department as paying wages to workers. The lists shall be
10 deemed confidential and may not be disclosed to any other
11 person.
12 Q. The Director shall make available to an elected
13 federal official the name and address of an individual or
14 entity that is located within the jurisdiction from which the
15 official was elected and that, for the most recently
16 completed calendar year, has reported to the Department as
17 paying wages to workers, where the information will be used
18 in connection with the official duties of the official and
19 the official requests the information in writing, specifying
20 the purposes for which it will be used. For purposes of this
21 subsection, the use of information in connection with the
22 official duties of an official does not include use of the
23 information in connection with the solicitation of
24 contributions or expenditures, in money or in kind, to or on
25 behalf of a candidate for public or political office or a
26 political party or with respect to a public question, as
27 defined in Section 1-3 of the Election Code, or in connection
28 with any commercial solicitation. Any elected federal
29 official who, in submitting a request for information covered
30 by this subsection, knowingly makes a false statement or
31 fails to disclose a material fact, with the intent to obtain
32 the information for a purpose not authorized by this
33 subsection, shall be guilty of a Class B misdemeanor.
34 (Source: P.A. 88-435; 89-446, eff. 2-8-96; 89-493, eff.
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1 1-1-97.)
2 Section 90. The State Mandates Act is amended by adding
3 Section 8.21 as follows:
4 (30 ILCS 805/8.21 new)
5 Sec. 8.21. Exempt mandate. Notwithstanding Sections 6
6 and 8 of this Act, no reimbursement by the State is required
7 for the implementation of any mandate created by this
8 amendatory Act of 1997.
9 Section 99. Effective date. This Act takes effect upon
10 becoming law.
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1 INDEX
2 Statutes amended in order of appearance
3 40 ILCS 5/7-109.3 from Ch. 108 1/2, par. 7-109.3
4 40 ILCS 5/7-111 from Ch. 108 1/2, par. 7-111
5 40 ILCS 5/7-113 from Ch. 108 1/2, par. 7-113
6 40 ILCS 5/7-116 from Ch. 108 1/2, par. 7-116
7 40 ILCS 5/7-118 from Ch. 108 1/2, par. 7-118
8 40 ILCS 5/7-132.2 from Ch. 108 1/2, par. 7-132.2
9 40 ILCS 5/7-137 from Ch. 108 1/2, par. 7-137
10 40 ILCS 5/7-139 from Ch. 108 1/2, par. 7-139
11 40 ILCS 5/7-141 from Ch. 108 1/2, par. 7-141
12 40 ILCS 5/7-145 from Ch. 108 1/2, par. 7-145
13 40 ILCS 5/7-146 from Ch. 108 1/2, par. 7-146
14 40 ILCS 5/7-152 from Ch. 108 1/2, par. 7-152
15 40 ILCS 5/7-156 from Ch. 108 1/2, par. 7-156
16 40 ILCS 5/7-171 from Ch. 108 1/2, par. 7-171
17 40 ILCS 5/7-172 from Ch. 108 1/2, par. 7-172
18 40 ILCS 5/7-199.3 new
19 820 ILCS 405/1900 from Ch. 48, par. 640
20 30 ILCS 805/8.21 new