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92_HB2367eng HB2367 Engrossed LRB9205287EGfg 1 AN ACT in relation to public employee benefits. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Illinois Pension Code is amended by 5 changing Sections 7-132, 7-146, 7-151, 7-152, 7-166, and 6 7-172 as follows: 7 (40 ILCS 5/7-132) (from Ch. 108 1/2, par. 7-132) 8 Sec. 7-132. Municipalities, instrumentalities and 9 participating instrumentalities included and effective dates. 10 (A) Municipalities and their instrumentalities. 11 (a) The following described municipalities, but not 12 including any with more than 1,000,000 inhabitants, and the 13 instrumentalities thereof, shall be included within and be 14 subject to this Article beginning upon the effective dates 15 specified by the Board: 16 (1) Except as to the municipalities and 17 instrumentalities thereof specifically excluded under 18 this Article, every county shall be subject to this 19 Article, and all cities, villages and incorporated towns 20 having a population in excess of 5,000 inhabitants as 21 determined by the last preceding decennial or subsequent 22 federal census, shall be subject to this Article 23 following publication of the census by the Bureau of the 24 Census. Within 90 days after publication of the census, 25 the Board shall notify any municipality that has become 26 subject to this Article as a result of that census, and 27 shall provide information to the corporate authorities of 28 the municipality explaining the duties and consequences 29 of participation. The notification shall also include a 30 proposed date upon which participation by the 31 municipality will commence. HB2367 Engrossed -2- LRB9205287EGfg 1 However, for any city, village or incorporated town 2 that attains a population over 5,000 inhabitants after 3 having provided social security coverage for its 4 employees under the Social Security Enabling Act, 5 participation under this Article shall not be mandatory 6 but may be elected in accordance with subparagraph (3) or 7 (4) of this paragraph (a), whichever is applicable. 8 (2) School districts, other than those specifically 9 excluded under this Article, shall be subject to this 10 Article, without election, with respect to all employees 11 thereof. 12 (3) Towns and all other bodies politic and 13 corporate which are formed by vote of, or are subject to 14 control by, the electors in towns and are located in 15 towns which are not participating municipalities on the 16 effective date of this Act, may become subject to this 17 Article by election pursuant to Section 7-132.1. 18 (4) Any other municipality (together with its 19 instrumentalities), other than those specifically 20 excluded from participation and those described in 21 paragraph (3) above, may elect to be included either by 22 referendum under Section 7-134 or by the adoption of a 23 resolution or ordinance by its governing body. A copy of 24 such resolution or ordinance duly authenticated and 25 certified by the clerk of the municipality or other 26 appropriate official of its governing body shall 27 constitute the required notice to the board of such 28 action. 29 (b) A municipality that is about to begin participation 30 shall submit to the Board an application to participate, in a 31 form acceptable to the Board, not later than 90 days prior to 32 the proposed effective date of participation. The Board 33 shall act upon the application within 90 days, and if it 34 finds that the application is in conformity with its HB2367 Engrossed -3- LRB9205287EGfg 1 requirements and the requirements of this Article, 2 participation by the applicant shall commence on a date 3 acceptable to the municipality and specified by the Board, 4 but in no event more than one year from the date of 5 application. 6 (c) A participating municipality which succeeds to the 7 functions of a participating municipality which is dissolved 8 or terminates its existence shall assume and be transferred 9 the net accumulation balance in the municipality reserve and 10 the municipality account receivable balance of the terminated 11 municipality. 12 (d) In the case of a Veterans Assistance Commission 13 whose employees were being treated by the Fund on January 1, 14 1990 as employees of the county served by the Commission, the 15 Fund may continue to treat the employees of the Veterans 16 Assistance Commission as county employees for the purposes of 17 this Article, unless the Commission becomes a participating 18 instrumentality in accordance with subsection (B) of this 19 Section. 20 (B) Participating instrumentalities. 21 (a) The participating instrumentalities designated in 22 paragraph (b) of this subsection shall be included within and 23 be subject to this Article if: 24 (1) an application to participate, in a form 25 acceptable to the Board and adopted by a two-thirds vote 26 of the governing body, is presented to the Board not 27 later than 90 days prior to the proposed effective date; 28 and 29 (2) the Board finds that the application is in 30 conformity with its requirements, that the applicant has 31 reasonable expectation to continue as a political entity 32 for a period of at least 10 years and has the prospective 33 financial capacity to meet its current and future 34 obligations to the Fund, and that the actuarial soundness HB2367 Engrossed -4- LRB9205287EGfg 1 of the Fund may be reasonably expected to be unimpaired 2 by approval of participation by the applicant. 3 The Board shall notify the applicant of its findings 4 within 90 days after receiving the application, and if the 5 Board approves the application, participation by the 6 applicant shall commence on the effective date specified by 7 the Board. 8 (b) The following participating instrumentalities, so 9 long as they meet the requirements of Section 7-108 and the 10 area served by them or within their jurisdiction is not 11 located entirely within a municipality having more than one 12 million inhabitants, may be included hereunder: 13 i. Township School District Trustees. 14 ii. Multiple County and Consolidated Health 15 Departments created under Division 5-25 of the Counties 16 Code or its predecessor law. 17 iii. Public Building Commissions created under the 18 Public Building Commission Act, and located in counties 19 of less than 1,000,000 inhabitants. 20 iv. A multitype, consolidated or cooperative 21 library system created under the Illinois Library System 22 Act. Any library system created under the Illinois 23 Library System Act that has one or more predecessors that 24 participated in the Fund may participate in the Fund upon 25 application. The Board shall establish procedures for 26 implementing the transfer of rights and obligations from 27 the predecessor system to the successor system. 28 v. Regional Planning Commissions created under 29 Division 5-14 of the Counties Code or its predecessor 30 law. 31 vi. Local Public Housing Authorities created under 32 the Housing Authorities Act, located in counties of less 33 than 1,000,000 inhabitants. 34 vii. Illinois Municipal League. HB2367 Engrossed -5- LRB9205287EGfg 1 viii. Northeastern Illinois Metropolitan Area 2 Planning Commission. 3 ix. Southwestern Illinois Metropolitan Area 4 Planning Commission. 5 x. Illinois Association of Park Districts. 6 xi. Illinois Supervisors, County Commissioners and 7 Superintendents of Highways Association. 8 xii. Tri-City Regional Port District. 9 xiii. An association, or not-for-profit 10 corporation, membership in which is authorized under 11 Section 85-15 of the Township Code. 12 xiv. Drainage Districts operating under the 13 Illinois Drainage Code. 14 xv. Local mass transit districts created under the 15 Local Mass Transit District Act. 16 xvi. Soil and water conservation districts created 17 under the Soil and Water Conservation Districts Law. 18 xvii. Commissions created to provide water supply 19 or sewer services or both under Division 135 or Division 20 136 of Article 11 of the Illinois Municipal Code. 21 xviii. Public water districts created under the 22 Public Water District Act. 23 xix. Veterans Assistance Commissions established 24 under Section 9 of the Military Veterans Assistance Act 25 that serve counties with a population of less than 26 1,000,000. 27 xx. The governing body of an entity, other than a 28 vocational education cooperative, created under an 29 intergovernmental cooperative agreement established 30 between participating municipalities under the 31 Intergovernmental Cooperation Act, which by the terms of 32 the agreement is the employer of the persons performing 33 services under the agreement under the usual common law 34 rules determining the employer-employee relationship. HB2367 Engrossed -6- LRB9205287EGfg 1 The governing body of such an intergovernmental 2 cooperative entity established prior to July 1, 1988 may 3 make participation retroactive to the effective date of 4 the agreement and, if so, the effective date of 5 participation shall be the date the required application 6 is filed with the fund. If any such entity is unable to 7 pay the required employer contributions to the fund, then 8 the participating municipalities shall make payment of 9 the required contributions and the payments shall be 10 allocated as provided in the agreement or, if not so 11 provided, equally among them. 12 xxi. The Illinois Municipal Electric Agency. 13 xxii. The Waukegan Port District. 14 xxiii. The Fox Waterway Agency created under the 15 Fox Waterway Agency Act. 16 xxiv. The Illinois Municipal Gas Agency. 17 (c) The governing boards of special education joint 18 agreements created under Section 10-22.31 of the School Code 19 without designation of an administrative district shall be 20 included within and be subject to this Article as 21 participating instrumentalities when the joint agreement 22 becomes effective. However, the governing board of any such 23 special education joint agreement in effect before September 24 5, 1975 shall not be subject to this Article unless the joint 25 agreement is modified by the school districts to provide that 26 the governing board is subject to this Article, except as 27 otherwise provided by this Section. 28 The governing board of the Special Education District of 29 Lake County shall become subject to this Article as a 30 participating instrumentality on July 1, 1997. 31 Notwithstanding subdivision (a)1 of Section 7-139, on the 32 effective date of participation, employees of the governing 33 board of the Special Education District of Lake County shall 34 receive creditable service for their prior service with that HB2367 Engrossed -7- LRB9205287EGfg 1 employer, up to a maximum of 5 years, without any employee 2 contribution. Employees may establish creditable service for 3 the remainder of their prior service with that employer, if 4 any, by applying in writing and paying an employee 5 contribution in an amount determined by the Fund, based on 6 the employee contribution rates in effect at the time of 7 application for the creditable service and the employee's 8 salary rate on the effective date of participation for that 9 employer, plus interest at the effective rate from the date 10 of the prior service to the date of payment. Application for 11 this creditable service must be made before July 1, 1998; the 12 payment may be made at any time while the employee is still 13 in service. The employer may elect to make the required 14 contribution on behalf of the employee. 15 The governing board of a special education joint 16 agreement created under Section 10-22.31 of the School Code 17 for which an administrative district has been designated, if 18 there are employees of the cooperative educational entity who 19 are not employees of the administrative district, may elect 20 to participate in the Fund and be included within this 21 Article as a participating instrumentality, subject to such 22 application procedures and rules as the Board may prescribe. 23 The Boards of Control of cooperative or joint educational 24 programs or projects created and administered under Section 25 3-15.14 of the School Code, whether or not the Boards act as 26 their own administrative district, shall be included within 27 and be subject to this Article as participating 28 instrumentalities when the agreement establishing the 29 cooperative or joint educational program or project becomes 30 effective. 31 The governing board of a special education joint 32 agreement entered into after June 30, 1984 and prior to 33 September 17, 1985 which provides for representation on the 34 governing board by less than all the participating districts HB2367 Engrossed -8- LRB9205287EGfg 1 shall be included within and subject to this Article as a 2 participating instrumentality. Such participation shall be 3 effective as of the date the joint agreement becomes 4 effective. 5 The governing boards of educational service centers 6 established under Section 2-3.62 of the School Code shall be 7 included within and subject to this Article as participating 8 instrumentalities. The governing boards of vocational 9 education cooperative agreements created under the 10 Intergovernmental Cooperation Act and approved by the State 11 Board of Education shall be included within and be subject to 12 this Article as participating instrumentalities. If any such 13 governing boards or boards of control are unable to pay the 14 required employer contributions to the fund, then the school 15 districts served by such boards shall make payment of 16 required contributions as provided in Section 7-172. The 17 payments shall be allocated among the several school 18 districts in proportion to the number of students in average 19 daily attendance for the last full school year for each 20 district in relation to the total number of students in 21 average attendance for such period for all districts served. 22 If such educational service centers, vocational education 23 cooperatives or cooperative or joint educational programs or 24 projects created and administered under Section 3-15.14 of 25 the School Code are dissolved, the assets and obligations 26 shall be distributed among the districts in the same 27 proportions unless otherwise provided. 28 (d) The governing boards of special recreation joint 29 agreements created under Section 8-10b of the Park District 30 Code, operating without designation of an administrative 31 district or an administrative municipality appointed to 32 administer the program operating under the authority of such 33 joint agreement shall be included within and be subject to 34 this Article as participating instrumentalities when the HB2367 Engrossed -9- LRB9205287EGfg 1 joint agreement becomes effective. However, the governing 2 board of any such special recreation joint agreement in 3 effect before January 1, 1980 shall not be subject to this 4 Article unless the joint agreement is modified, by the 5 districts and municipalities which are parties to the 6 agreement, to provide that the governing board is subject to 7 this Article. 8 If the Board returns any employer and employee 9 contributions to any employer which erroneously submitted 10 such contributions on behalf of a special recreation joint 11 agreement, the Board shall include interest computed from the 12 end of each year to the date of payment, not compounded, at 13 the rate of 7% per annum. 14 (e) Each multi-township assessment district, the board 15 of trustees of which has adopted this Article by ordinance 16 prior to April 1, 1982, shall be a participating 17 instrumentality included within and subject to this Article 18 effective December 1, 1981. The contributions required under 19 Section 7-172 shall be included in the budget prepared under 20 and allocated in accordance with Section 2-30 of the Property 21 Tax Code. 22 (f) Beginning January 1, 1992, each prospective 23 participating municipality or participating instrumentality 24 shall pay to the Fund the cost, as determined by the Board, 25 of a study prepared by the Fund or its actuary, detailing the 26 prospective costs of participation in the Fund to be expected 27 by the municipality or instrumentality. 28 (Source: P.A. 89-162, eff. 7-19-95; 90-511, eff. 8-22-97.) 29 (40 ILCS 5/7-146) (from Ch. 108 1/2, par. 7-146) 30 Sec. 7-146. Temporary disability benefits - Eligibility. 31 Temporary disability benefits shall be payable to 32 participating employees as hereinafter provided. 33 (a) The participating employee shall be considered HB2367 Engrossed -10- LRB9205287EGfg 1 temporarily disabled if: 2 1. He is unable to perform the duties of any 3 position which might reasonably be assigned to him by his 4 employing municipality or instrumentality thereof or 5 participating instrumentality due to mental or physical 6 disability caused by bodily injury or disease, other than 7 as a result of self-inflicted injury or addiction to 8 narcotic drugs; 9 2. The Board has received written certifications 10 from at least one1licensed and practicing physician and 11 the governing body of the employing municipality or 12 instrumentality thereof or participating instrumentality 13 stating that the employee meets the conditions set forth 14 in subparagraph 1 of this paragraph (a). 15 (b) A temporary disability benefit shall be payable to a 16 temporarily disabled employee provided: 17 1. He: 18 (i) has at least one year of service 19 immediately preceding at the date the temporary 20 disability was incurred and has made contributions 21 to the fund for at least the number of months of 22 service normally required in his position during a 23 12-month period, or has at least 5 years of service 24 credit, the last year of which immediately precedes 25 such date; or 26 (ii) had qualified under clause (i) above, but 27 had an interruption in service with the same 28 participating municipality or participating 29 instrumentality of not more than 3 months in the 12 30 months preceding the date the temporary disability 31 was incurred and was not paid a separation benefit; 32 or 33 (iii) had qualified under clause (i) above, 34 but had an interruption after 20 or more years of HB2367 Engrossed -11- LRB9205287EGfg 1 creditable service, was not paid a separation 2 benefit, and returned to service prior to the date 3 the disability was incurred. 4 Item (iii) of this subdivision shall apply to all 5 employees whose disabilities were incurred on or after 6 July 1, 1985, and any such employee who becomes eligible 7 for a disability benefit under item (iii) shall be 8 entitled to receive a lump sum payment of any accumulated 9 disability benefits which may accrue from the date the 10 disability was incurred until the effective date of this 11 amendatory Act of 1987. 12 Periods of qualified leave granted in compliance 13 with the federal Family and Medical Leave Act shall be 14 ignored for purposes of determining the number of 15 consecutive months of employment under this subdivision 16 (b)1. 17 2. He has been temporarily disabled for at least 30 18 days, except where a former temporary or permanent and 19 total disability has reoccurred within 6 months after the 20 employee has returned to service. 21 3. He is receiving no earnings from a participating 22 municipality or instrumentality thereof or participating 23 instrumentality, except as allowed under subsection (f) 24 of Section 7-152. 25 4. He has not refused to submit to a reasonable 26 physical examination by a physician appointed by the 27 Board. 28 5. His disability is not the result of a mental or 29 physical condition which existed on the earliest date of 30 service from which he has uninterrupted service, 31 including prior service, at the date of his disability, 32 provided that this limitation is not applicable if the 33 date of disability is after December 31, 2001, nor is it 34shall not beapplicable to a participating employee who: HB2367 Engrossed -12- LRB9205287EGfg 1 (i) on the date of disability has 5 years of creditable 2 service, exclusive of creditable service for periods of 3 disability; or (ii) received no medical treatment for the 4 condition for the 3 years immediately prior to such 5 earliest date of service. 6 6. He is not separated from the service of the 7 participating municipality or instrumentality thereof or 8 participating instrumentality which employed him on the 9 date his temporary disability was incurred; for the 10 purposes of payment of temporary disability benefits, a 11 participating employee, whose employment relationship is 12 terminated by his employing municipality, shall be deemed 13 not to be separated from the service of his employing 14 municipality or participating instrumentality if he 15 continues disabled by the same condition and so long as 16 he is otherwise entitled to such disability benefit. 17 (Source: P.A. 90-766, eff. 8-14-98.) 18 (40 ILCS 5/7-151) (from Ch. 108 1/2, par. 7-151) 19 Sec. 7-151. Total and permanent disability benefits - 20 Commencement and duration. Permanent disability benefits 21 shall be payable: 22 (a) As of the date temporary disability benefits are 23 exhausted; 24 (b) Once a month as of the end of each month; 25 (c) For less than a month in a fraction equal to that 26 created by making the number of days of disability in the 27 month the numerator and the number of the days in the month 28 the denominator; 29 (d) To the beneficiary of a deceased employee for the 30 unpaid amount accrued to the date of death; 31 (e) While total and permanent disability continues; 32 (f) For the period ending on the last day of the month 33 which is the later of the following: HB2367 Engrossed -13- LRB9205287EGfg 1 1. the month that the participating employee attains the 2 age for a full Social Security old-age insurance benefitage365; 4 2. the month which is 5 years after the month the 5 participating employee became disabled as provided in Section 6 7-146. 7 (Source: P.A. 86-272.) 8 (40 ILCS 5/7-152) (from Ch. 108 1/2, par. 7-152) 9 Sec. 7-152. Disability benefits - Amount. The amount of 10 the monthly temporary and total and permanent disability 11 benefits shall be 50% of the participating employee's final 12 rate of earnings on the date disability was incurred, subject 13 to the following adjustments: 14 (a) If the participating employee has a reduced rate of 15 earnings at the time his employment ceases because of 16 disability, the rate of earnings shall be computed on the 17 basis of his last 12 month period of full-time employment. 18 (b) If the participating employee is eligible for a 19 disability benefit under the federal Social Security Act, the 20 amount of monthly disability benefits shall be reduced, but 21 not to less than $10 a month, by the amount he would be 22 eligible to receive as a disability benefit under the federal 23 Social Security Act, whether or not because of service as a 24 covered employee under this Article. The reduction shall be 25 effective as of the month the employee is eligible for Social 26 Security disability benefits. The Board may make such 27 reduction if it appears that the employee may be so eligible 28 pending determination of eligibility and make an appropriate 29 adjustment if necessary after such determination. If the 30 employee, because of his refusal to accept rehabilitation 31 services under the federal Rehabilitation Act of 1973 or the 32 federal Social Security Act, or because he is receiving 33 workers' compensation benefits, has his Social Security HB2367 Engrossed -14- LRB9205287EGfg 1 benefits reduced or terminated, the disability benefit shall 2 be reduced as if the employee were receiving his full Social 3 Security disability benefit. 4 (c) If the employee (i) is over the age for a full 5 Social Security old-age insurance benefitage 65, (ii) was 6 not eligible for a Social Security disability benefit 7 immediately before reaching that age,age 65and (iii) is 8 eligible for a full Social Security old-age insurance 9 benefit, then the amount of the monthly disability benefit 10 shall be reduced, but not to less than $10 a month, by the 11 amount of the old-age insurance benefit to which the employee 12 is entitled, whether or not the employee applies for the 13 Social Security old-age insurance benefit. This reduction 14 shall be made in the month after the month in which the 15 employee attains the age for a full Social Security old-age 16 insurance benefitage 65. However, if the employee was 17 receiving a Social Security disability benefit before 18 reaching the age for a full Social Security old-age insurance 19 benefitage 65, the disability benefits after that ageage 6520 shall be determined under subsection (b) of this Section. 21 (d) The amount of disability benefits shall not be 22 reduced by reason of any increase, other than one resulting 23 from a correction in the employee's wage records, in the 24 amount of disability or old-age insurance benefits under the 25 federal Social Security Act which takes effect after the 26 month of the initial reduction under paragraph (b) or (c) of 27 this Section. 28 (e) If the employee in any month receives compensation 29 from gainful employment which is more than 25% of the final 30 rate of earnings on which his disability benefits are based, 31 the temporary disability benefit payable for that month shall 32 be reduced by an amount equal to such excess. 33 (f) An employee who has been disabled for at least 30 34 days may return to work for the employer on a part-time basis HB2367 Engrossed -15- LRB9205287EGfg 1 for a trial work period of up to one year, during which the 2 disability shall be deemed to continue. Service credit shall 3 continue to accrue and the disability benefit shall continue 4 to be paid during the trial work period, but the benefit 5 shall be reduced by the amount of earnings received by the 6 disabled employee. Return to service on a full-time basis 7 shall terminate the trial work period. The reduction under 8 this subsection (f) shall be in lieu of the reduction, if 9 any, required under subsection (e). 10 (g) Beginning January 1, 1988, every total and permanent 11 disability benefit shall be increased by 3% of the original 12 amount of the benefit, not compounded, on each January 1 13 following the later of (1) the date the total and permanent 14 disability benefit begins, or (2) the date the total and 15 permanent disability benefit would have begun if the employee 16 had been paid a temporary disability benefit for 30 months. 17 (Source: P.A. 87-740.) 18 (40 ILCS 5/7-166) (from Ch. 108 1/2, par. 7-166) 19 Sec. 7-166. Separation benefits - Eligibility. 20 Separation benefits shall be payable as hereinafter set 21 forth: 22 1. Upon separation from the service of all 23 participating municipalities and instrumentalities 24 thereof and participating instrumentalities, any 25 participating employee who, on the date of application 26 for such benefit, is not entitled to a retirement annuity 27 shall be entitled to a separation benefit.;28 2. Upon separation from the service of all 29 participating municipalities and instrumentalities 30 thereof and participating instrumentalities, any 31 participating employee who, on the date of application 32 for such benefit, is entitled to a retirement annuity of 33 less than $30 per month for life may elect to take a HB2367 Engrossed -16- LRB9205287EGfg 1 separation benefit in lieu of the retirement annuity. 2 3. Upon separation from the service of all 3 participating municipalities and instrumentalities 4 thereof and participating instrumentalities, any 5 participating employee who, on the date of application 6 for such benefit, is entitled to a retirement annuity, 7 but wishes instead to use the amounts to his or her 8 credit in the Fund to purchase credit in another 9 retirement plan, may elect to take a separation benefit 10 in lieu of the retirement annuity. 11 (Source: P.A. 91-887, eff. 7-6-00.) 12 (40 ILCS 5/7-172) (from Ch. 108 1/2, par. 7-172) 13 Sec. 7-172. Contributions by participating 14 municipalities and participating instrumentalities. 15 (a) Each participating municipality and each 16 participating instrumentality shall make payment to the fund 17 as follows: 18 1. municipality contributions in an amount 19 determined by applying the municipality contribution rate 20 to each payment of earnings paid to each of its 21 participating employees; 22 2. an amount equal to the employee contributions 23 provided by paragraphs (a) and (b) of Section 7-173, 24 whether or not the employee contributions are withheld as 25 permitted by that Section; 26 3. all accounts receivable, together with interest 27 charged thereon, as provided in Section 7-209; 28 4. if it has no participating employees with 29 current earnings, an amount payable which, over a period 30 of 20 years beginning with the year following an award of 31 benefit, will amortize, at the effective rate for that 32 year, any negative balance in its municipality reserve 33 resulting from the award. This amount when established HB2367 Engrossed -17- LRB9205287EGfg 1 will be payable as a separate contribution whether or not 2 it later has participating employees. 3 (b) A separate municipality contribution rate shall be 4 determined for each calendar year for all participating 5 municipalities together with all instrumentalities thereof. 6 The municipality contribution rate shall be determined for 7 participating instrumentalities as if they were participating 8 municipalities. The municipality contribution rate shall be 9 the sum of the following percentages: 10 1. The percentage of earnings of all the 11 participating employees of all participating 12 municipalities and participating instrumentalities which, 13 if paid over the entire period of their service, will be 14 sufficient when combined with all employee contributions 15 available for the payment of benefits, to provide all 16 annuities for participating employees, and the $3,000 17 death benefit payable under Sections 7-158 and 7-164, 18 such percentage to be known as the normal cost rate. 19 2. The percentage of earnings of the participating 20 employees of each participating municipality and 21 participating instrumentalities necessary to adjust for 22 the difference between the present value of all benefits, 23 excluding temporary and total and permanent disability 24 and death benefits, to be provided for its participating 25 employees and the sum of its accumulated municipality 26 contributions and the accumulated employee contributions 27 and the present value of expected future employee and 28 municipality contributions pursuant to subparagraph 1 of 29 this paragraph (b). This adjustment shall be spread over 30 the remainder of the period that is allowable under 31 generally accepted accounting principlesof 40 years from32the first of the year following the date of33determination. 34 3. The percentage of earnings of the participating HB2367 Engrossed -18- LRB9205287EGfg 1 employees of all municipalities and participating 2 instrumentalities necessary to provide the present value 3 of all temporary and total and permanent disability 4 benefits granted during the most recent year for which 5 information is available. 6 4. The percentage of earnings of the participating 7 employees of all participating municipalities and 8 participating instrumentalities necessary to provide the 9 present value of the net single sum death benefits 10 expected to become payable from the reserve established 11 under Section 7-206 during the year for which this rate 12 is fixed. 13 5. The percentage of earnings necessary to meet any 14 deficiency arising in the Terminated Municipality 15 Reserve. 16 (c) A separate municipality contribution rate shall be 17 computed for each participating municipality or participating 18 instrumentality for its sheriff's law enforcement employees. 19 A separate municipality contribution rate shall be 20 computed for the sheriff's law enforcement employees of each 21 forest preserve district that elects to have such employees. 22 For the period from January 1, 1986 to December 31, 1986, 23 such rate shall be the forest preserve district's regular 24 rate plus 2%. 25 In the event that the Board determines that there is an 26 actuarial deficiency in the account of any municipality with 27 respect to a person who has elected to participate in the 28 Fund under Section 3-109.1 of this Code, the Board may adjust 29 the municipality's contribution rate so as to make up that 30 deficiency over such reasonable period of time as the Board 31 may determine. 32 (d) The Board may establish a separate municipality 33 contribution rate for all employees who are program 34 participants employed under the federal Comprehensive HB2367 Engrossed -19- LRB9205287EGfg 1 Employment Training Act by all of the participating 2 municipalities and instrumentalities. The Board may also 3 provide that, in lieu of a separate municipality rate for 4 these employees, a portion of the municipality contributions 5 for such program participants shall be refunded or an extra 6 charge assessed so that the amount of municipality 7 contributions retained or received by the fund for all CETA 8 program participants shall be an amount equal to that which 9 would be provided by the separate municipality contribution 10 rate for all such program participants. Refunds shall be 11 made to prime sponsors of programs upon submission of a claim 12 therefor and extra charges shall be assessed to participating 13 municipalities and instrumentalities. In establishing the 14 municipality contribution rate as provided in paragraph (b) 15 of this Section, the use of a separate municipality 16 contribution rate for program participants or the refund of a 17 portion of the municipality contributions, as the case may 18 be, may be considered. 19 (e) Computations of municipality contribution rates for 20 the following calendar year shall be made prior to the 21 beginning of each year, from the information available at the 22 time the computations are made, and on the assumption that 23 the employees in each participating municipality or 24 participating instrumentality at such time will continue in 25 service until the end of such calendar year at their 26 respective rates of earnings at such time. 27 (f) Any municipality which is the recipient of State 28 allocations representing that municipality's contributions 29 for retirement annuity purposes on behalf of its employees as 30 provided in Section 12-21.16 of the Illinois Public Aid Code 31 shall pay the allocations so received to the Board for such 32 purpose. Estimates of State allocations to be received 33 during any taxable year shall be considered in the 34 determination of the municipality's tax rate for that year HB2367 Engrossed -20- LRB9205287EGfg 1 under Section 7-171. If a special tax is levied under 2 Section 7-171, none of the proceeds may be used to reimburse 3 the municipality for the amount of State allocations received 4 and paid to the Board. Any multiple-county or consolidated 5 health department which receives contributions from a county 6 under Section 11.2 of "An Act in relation to establishment 7 and maintenance of county and multiple-county health 8 departments", approved July 9, 1943, as amended, or 9 distributions under Section 3 of the Department of Public 10 Health Act, shall use these only for municipality 11 contributions by the health department. 12 (g) Municipality contributions for the several purposes 13 specified shall, for township treasurers and employees in the 14 offices of the township treasurers who meet the qualifying 15 conditions for coverage hereunder, be allocated among the 16 several school districts and parts of school districts 17 serviced by such treasurers and employees in the proportion 18 which the amount of school funds of each district or part of 19 a district handled by the treasurer bears to the total amount 20 of all school funds handled by the treasurer. 21 From the funds subject to allocation among districts and 22 parts of districts pursuant to the School Code, the trustees 23 shall withhold the proportionate share of the liability for 24 municipality contributions imposed upon such districts by 25 this Section, in respect to such township treasurers and 26 employees and remit the same to the Board. 27 The municipality contribution rate for an educational 28 service center shall initially be the same rate for each year 29 as the regional office of education or school district which 30 serves as its administrative agent. When actuarial data 31 become available, a separate rate shall be established as 32 provided in subparagraph (i) of this Section. 33 The municipality contribution rate for a public agency, 34 other than a vocational education cooperative, formed under HB2367 Engrossed -21- LRB9205287EGfg 1 the Intergovernmental Cooperation Act shall initially be the 2 average rate for the municipalities which are parties to the 3 intergovernmental agreement. When actuarial data become 4 available, a separate rate shall be established as provided 5 in subparagraph (i) of this Section. 6 (h) Each participating municipality and participating 7 instrumentality shall make the contributions in the amounts 8 provided in this Section in the manner prescribed from time 9 to time by the Board and all such contributions shall be 10 obligations of the respective participating municipalities 11 and participating instrumentalities to this fund. The 12 failure to deduct any employee contributions shall not 13 relieve the participating municipality or participating 14 instrumentality of its obligation to this fund. Delinquent 15 payments of contributions due under this Section may, with 16 interest, be recovered by civil action against the 17 participating municipalities or participating 18 instrumentalities. Municipality contributions, other than 19 the amount necessary for employee contributions and Social 20 Security contributions, for periods of service by employees 21 from whose earnings no deductions were made for employee 22 contributions to the fund, may be charged to the municipality 23 reserve for the municipality or participating 24 instrumentality. 25 (i) Contributions by participating instrumentalities 26 shall be determined as provided herein except that the 27 percentage derived under subparagraph 2 of paragraph (b) of 28 this Section, and the amount payable under subparagraph 5 of 29 paragraph (a) of this Section, shall be based on an 30 amortization period of 10 years. 31 (Source: P.A. 90-448, eff. 8-16-97.) 32 Section 90. The State Mandates Act is amended by adding 33 Section 8.25 as follows: HB2367 Engrossed -22- LRB9205287EGfg 1 (30 ILCS 805/8.25 new) 2 Sec. 8.25. Exempt mandate. Notwithstanding Sections 6 3 and 8 of this Act, no reimbursement by the State is required 4 for the implementation of any mandate created by this 5 amendatory Act of the 92nd General Assembly. 6 Section 99. Effective date. This Act takes effect upon 7 becoming law.