State of Illinois
92nd General Assembly
Legislation

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92_HB2367ham001

 










                                           LRB9205287EGfgam01

 1                    AMENDMENT TO HOUSE BILL 2367

 2        AMENDMENT NO.     .  Amend House Bill 2367  by  replacing
 3    everything after the enacting clause with the following:

 4        "Section  5.   The  Illinois  Pension  Code is amended by
 5    changing Sections 7-146, 7-151, 7-152, 7-166,  and  7-172  as
 6    follows:

 7        (40 ILCS 5/7-146) (from Ch. 108 1/2, par. 7-146)
 8        Sec. 7-146.  Temporary disability benefits - Eligibility.
 9    Temporary   disability   benefits   shall   be   payable   to
10    participating employees as hereinafter provided.
11        (a)  The   participating  employee  shall  be  considered
12    temporarily disabled if:
13             1.  He is  unable  to  perform  the  duties  of  any
14        position which might reasonably be assigned to him by his
15        employing  municipality  or  instrumentality  thereof  or
16        participating  instrumentality  due to mental or physical
17        disability caused by bodily injury or disease, other than
18        as a result of  self-inflicted  injury  or  addiction  to
19        narcotic drugs;
20             2.  The  Board  has  received written certifications
21        from at least one 1 licensed and practicing physician and
22        the governing  body  of  the  employing  municipality  or
 
                            -2-            LRB9205287EGfgam01
 1        instrumentality  thereof or participating instrumentality
 2        stating that the employee meets the conditions set  forth
 3        in subparagraph 1 of this paragraph (a).
 4        (b)  A temporary disability benefit shall be payable to a
 5    temporarily disabled employee provided:
 6             1.  He:
 7                  (i)  has   at   least   one   year  of  service
 8             immediately preceding  at  the  date  the  temporary
 9             disability  was  incurred and has made contributions
10             to the fund for at least the  number  of  months  of
11             service  normally  required in his position during a
12             12-month period, or has at least 5 years of  service
13             credit,  the last year of which immediately precedes
14             such date; or
15                  (ii)  had qualified under clause (i) above, but
16             had  an  interruption  in  service  with  the   same
17             participating    municipality    or    participating
18             instrumentality  of not more than 3 months in the 12
19             months preceding the date the  temporary  disability
20             was  incurred and was not paid a separation benefit;
21             or
22                  (iii)  had qualified under  clause  (i)  above,
23             but  had  an  interruption after 20 or more years of
24             creditable  service,  was  not  paid  a   separation
25             benefit,  and  returned to service prior to the date
26             the disability was incurred.
27             Item (iii) of this subdivision shall  apply  to  all
28        employees  whose  disabilities  were incurred on or after
29        July 1, 1985, and any such employee who becomes  eligible
30        for  a  disability  benefit  under  item  (iii)  shall be
31        entitled to receive a lump sum payment of any accumulated
32        disability benefits which may accrue from  the  date  the
33        disability  was incurred until the effective date of this
34        amendatory Act of 1987.
 
                            -3-            LRB9205287EGfgam01
 1             Periods of qualified  leave  granted  in  compliance
 2        with  the  federal  Family and Medical Leave Act shall be
 3        ignored  for  purposes  of  determining  the  number   of
 4        consecutive  months  of employment under this subdivision
 5        (b)1.
 6             2.  He has been temporarily disabled for at least 30
 7        days, except where a former temporary  or  permanent  and
 8        total disability has reoccurred within 6 months after the
 9        employee has returned to service.
10             3.  He is receiving no earnings from a participating
11        municipality  or instrumentality thereof or participating
12        instrumentality, except as allowed under  subsection  (f)
13        of Section 7-152.
14             4.  He  has  not  refused  to submit to a reasonable
15        physical examination by  a  physician  appointed  by  the
16        Board.
17             5.  His  disability is not the result of a mental or
18        physical condition which existed on the earliest date  of
19        service   from   which   he  has  uninterrupted  service,
20        including prior service, at the date of  his  disability,
21        provided  that  this  limitation is not applicable if the
22        date of disability is after December 31, 2001, nor is  it
23        shall  not be applicable to a participating employee who:
24        (i) on the date of disability has 5 years  of  creditable
25        service,  exclusive  of creditable service for periods of
26        disability; or (ii) received no medical treatment for the
27        condition for the  3  years  immediately  prior  to  such
28        earliest date of service.
29             6.  He  is  not  separated  from  the service of the
30        participating municipality or instrumentality thereof  or
31        participating  instrumentality  which employed him on the
32        date his  temporary  disability  was  incurred;  for  the
33        purposes  of  payment of temporary disability benefits, a
34        participating employee, whose employment relationship  is
 
                            -4-            LRB9205287EGfgam01
 1        terminated by his employing municipality, shall be deemed
 2        not  to  be  separated  from the service of his employing
 3        municipality  or  participating  instrumentality  if   he
 4        continues  disabled  by the same condition and so long as
 5        he is otherwise entitled to such disability benefit.
 6    (Source: P.A. 90-766, eff. 8-14-98.)

 7        (40 ILCS 5/7-151) (from Ch. 108 1/2, par. 7-151)
 8        Sec. 7-151.  Total and permanent  disability  benefits  -
 9    Commencement  and  duration.   Permanent  disability benefits
10    shall be payable:
11        (a)  As of the date  temporary  disability  benefits  are
12    exhausted;
13        (b)  Once a month as of the end of each month;
14        (c)  For  less  than  a month in a fraction equal to that
15    created by making the number of days  of  disability  in  the
16    month  the  numerator and the number of the days in the month
17    the denominator;
18        (d)  To the beneficiary of a deceased  employee  for  the
19    unpaid amount accrued to the date of death;
20        (e)  While total and permanent disability continues;
21        (f)  For  the  period ending on the last day of the month
22    which is the later of the following:
23        1.  the month that the participating employee attains the
24    age for a full Social Security old-age insurance benefit  age
25    65;
26        2.  the  month  which  is  5  years  after  the month the
27    participating employee became disabled as provided in Section
28    7-146.
29    (Source: P.A. 86-272.)

30        (40 ILCS 5/7-152) (from Ch. 108 1/2, par. 7-152)
31        Sec. 7-152.  Disability benefits - Amount.  The amount of
32    the monthly temporary  and  total  and  permanent  disability
 
                            -5-            LRB9205287EGfgam01
 1    benefits  shall  be 50% of the participating employee's final
 2    rate of earnings on the date disability was incurred, subject
 3    to the following adjustments:
 4        (a)  If the participating employee has a reduced rate  of
 5    earnings  at  the  time  his  employment  ceases  because  of
 6    disability,  the  rate  of  earnings shall be computed on the
 7    basis of his last 12 month period of full-time employment.
 8        (b)  If the participating  employee  is  eligible  for  a
 9    disability benefit under the federal Social Security Act, the
10    amount  of  monthly disability benefits shall be reduced, but
11    not to less than $10 a month,  by  the  amount  he  would  be
12    eligible to receive as a disability benefit under the federal
13    Social  Security  Act, whether or not because of service as a
14    covered employee under this Article.  The reduction shall  be
15    effective as of the month the employee is eligible for Social
16    Security  disability  benefits.   The  Board  may  make  such
17    reduction  if it appears that the employee may be so eligible
18    pending determination of eligibility and make an  appropriate
19    adjustment  if  necessary  after  such determination.  If the
20    employee, because of his  refusal  to  accept  rehabilitation
21    services  under the federal Rehabilitation Act of 1973 or the
22    federal Social Security  Act,  or  because  he  is  receiving
23    workers'  compensation  benefits,  has  his  Social  Security
24    benefits  reduced or terminated, the disability benefit shall
25    be reduced as if the employee were receiving his full  Social
26    Security disability benefit.
27        (c)  If  the  employee  (i)  is  over  the age for a full
28    Social Security old-age insurance benefit age  65,  (ii)  was
29    not   eligible  for  a  Social  Security  disability  benefit
30    immediately before reaching that age, age  65  and  (iii)  is
31    eligible   for  a  full  Social  Security  old-age  insurance
32    benefit, then the amount of the  monthly  disability  benefit
33    shall  be  reduced,  but not to less than $10 a month, by the
34    amount of the old-age insurance benefit to which the employee
 
                            -6-            LRB9205287EGfgam01
 1    is entitled, whether or not  the  employee  applies  for  the
 2    Social  Security  old-age  insurance benefit.  This reduction
 3    shall be made in the month  after  the  month  in  which  the
 4    employee  attains  the age for a full Social Security old-age
 5    insurance benefit age  65.   However,  if  the  employee  was
 6    receiving   a   Social  Security  disability  benefit  before
 7    reaching the age for a full Social Security old-age insurance
 8    benefit age 65, the disability benefits after that age age 65
 9    shall be determined under subsection (b) of this Section.
10        (d)  The amount  of  disability  benefits  shall  not  be
11    reduced  by  reason of any increase, other than one resulting
12    from a correction in the  employee's  wage  records,  in  the
13    amount  of disability or old-age insurance benefits under the
14    federal Social Security Act  which  takes  effect  after  the
15    month  of the initial reduction under paragraph (b) or (c) of
16    this Section.
17        (e)  If the employee in any month  receives  compensation
18    from  gainful  employment which is more than 25% of the final
19    rate of earnings on which his disability benefits are  based,
20    the temporary disability benefit payable for that month shall
21    be reduced by an amount equal to such excess.
22        (f)  An  employee  who  has been disabled for at least 30
23    days may return to work for the employer on a part-time basis
24    for a trial work period of up to one year, during  which  the
25    disability shall be deemed to continue.  Service credit shall
26    continue  to accrue and the disability benefit shall continue
27    to be paid during the trial  work  period,  but  the  benefit
28    shall  be  reduced  by the amount of earnings received by the
29    disabled employee.  Return to service on  a  full-time  basis
30    shall  terminate  the trial work period.  The reduction under
31    this subsection (f) shall be in lieu  of  the  reduction,  if
32    any, required under subsection (e).
33        (g)  Beginning January 1, 1988, every total and permanent
34    disability  benefit  shall be increased by 3% of the original
 
                            -7-            LRB9205287EGfgam01
 1    amount of the benefit, not  compounded,  on  each  January  1
 2    following  the  later of (1) the date the total and permanent
 3    disability benefit begins, or (2)  the  date  the  total  and
 4    permanent disability benefit would have begun if the employee
 5    had been paid a temporary disability benefit for 30 months.
 6    (Source: P.A. 87-740.)

 7        (40 ILCS 5/7-166) (from Ch. 108 1/2, par. 7-166)
 8        Sec.    7-166.   Separation   benefits   -   Eligibility.
 9    Separation benefits  shall  be  payable  as  hereinafter  set
10    forth:
11             1.  Upon   separation   from   the  service  of  all
12        participating   municipalities   and    instrumentalities
13        thereof    and   participating   instrumentalities,   any
14        participating employee who, on the  date  of  application
15        for such benefit, is not entitled to a retirement annuity
16        shall be entitled to a separation benefit.;
17             2.  Upon   separation   from   the  service  of  all
18        participating   municipalities   and    instrumentalities
19        thereof    and   participating   instrumentalities,   any
20        participating employee who, on the  date  of  application
21        for  such benefit, is entitled to a retirement annuity of
22        less than $30 per month for life  may  elect  to  take  a
23        separation benefit in lieu of the retirement annuity.
24             3.  Upon   separation   from   the  service  of  all
25        participating   municipalities   and    instrumentalities
26        thereof    and   participating   instrumentalities,   any
27        participating employee who, on the  date  of  application
28        for  such  benefit,  is entitled to a retirement annuity,
29        but wishes instead to use  the  amounts  to  his  or  her
30        credit   in  the  Fund  to  purchase  credit  in  another
31        retirement plan, may elect to take a  separation  benefit
32        in lieu of the retirement annuity.
33    (Source: P.A. 91-887, eff. 7-6-00.)
 
                            -8-            LRB9205287EGfgam01
 1        (40 ILCS 5/7-172) (from Ch. 108 1/2, par. 7-172)
 2        Sec.     7-172.      Contributions    by    participating
 3    municipalities and participating instrumentalities.
 4        (a)  Each    participating    municipality    and    each
 5    participating instrumentality shall make payment to the  fund
 6    as follows:
 7             1.  municipality    contributions   in   an   amount
 8        determined by applying the municipality contribution rate
 9        to  each  payment  of  earnings  paid  to  each  of   its
10        participating employees;
11             2.  an  amount  equal  to the employee contributions
12        provided by paragraphs (a)  and  (b)  of  Section  7-173,
13        whether or not the employee contributions are withheld as
14        permitted by that Section;
15             3.  all  accounts receivable, together with interest
16        charged thereon, as provided in Section 7-209;
17             4.  if  it  has  no  participating  employees   with
18        current  earnings, an amount payable which, over a period
19        of 20 years beginning with the year following an award of
20        benefit, will amortize, at the effective  rate  for  that
21        year,  any  negative  balance in its municipality reserve
22        resulting from the award.  This amount  when  established
23        will be payable as a separate contribution whether or not
24        it later has participating employees.
25        (b)  A  separate  municipality contribution rate shall be
26    determined for  each  calendar  year  for  all  participating
27    municipalities  together  with all instrumentalities thereof.
28    The municipality contribution rate shall  be  determined  for
29    participating instrumentalities as if they were participating
30    municipalities.   The municipality contribution rate shall be
31    the sum of the following percentages:
32             1.  The  percentage   of   earnings   of   all   the
33        participating     employees    of    all    participating
34        municipalities and participating instrumentalities which,
 
                            -9-            LRB9205287EGfgam01
 1        if paid over the entire period of their service, will  be
 2        sufficient  when combined with all employee contributions
 3        available for the payment of  benefits,  to  provide  all
 4        annuities  for  participating  employees,  and the $3,000
 5        death benefit payable under  Sections  7-158  and  7-164,
 6        such percentage to be known as the normal cost rate.
 7             2.  The  percentage of earnings of the participating
 8        employees  of   each   participating   municipality   and
 9        participating  instrumentalities  necessary to adjust for
10        the difference between the present value of all benefits,
11        excluding temporary and total  and  permanent  disability
12        and  death benefits, to be provided for its participating
13        employees and the sum  of  its  accumulated  municipality
14        contributions  and the accumulated employee contributions
15        and the present value of  expected  future  employee  and
16        municipality  contributions pursuant to subparagraph 1 of
17        this paragraph (b).  This adjustment shall be spread over
18        the remainder of  the  period  that  is  allowable  under
19        generally accepted accounting principles of 40 years from
20        the   first   of   the   year   following   the  date  of
21        determination.
22             3.  The percentage of earnings of the  participating
23        employees   of   all   municipalities  and  participating
24        instrumentalities necessary to provide the present  value
25        of  all  temporary  and  total  and  permanent disability
26        benefits granted during the most recent  year  for  which
27        information is available.
28             4.  The  percentage of earnings of the participating
29        employees  of  all   participating   municipalities   and
30        participating  instrumentalities necessary to provide the
31        present value  of  the  net  single  sum  death  benefits
32        expected  to  become payable from the reserve established
33        under Section 7-206 during the year for which  this  rate
34        is fixed.
 
                            -10-           LRB9205287EGfgam01
 1             5.  The percentage of earnings necessary to meet any
 2        deficiency   arising   in   the  Terminated  Municipality
 3        Reserve.
 4        (c)  A separate municipality contribution rate  shall  be
 5    computed for each participating municipality or participating
 6    instrumentality for its sheriff's law enforcement employees.
 7        A   separate  municipality  contribution  rate  shall  be
 8    computed for the sheriff's law enforcement employees of  each
 9    forest  preserve district that elects to have such employees.
10    For the period from January 1, 1986  to  December  31,  1986,
11    such  rate  shall  be  the forest preserve district's regular
12    rate plus 2%.
13        In the event that the Board determines that there  is  an
14    actuarial  deficiency in the account of any municipality with
15    respect to a person who has elected  to  participate  in  the
16    Fund under Section 3-109.1 of this Code, the Board may adjust
17    the  municipality's  contribution  rate so as to make up that
18    deficiency over such reasonable period of time as  the  Board
19    may determine.
20        (d)  The  Board  may  establish  a  separate municipality
21    contribution  rate  for  all  employees   who   are   program
22    participants   employed   under   the  federal  Comprehensive
23    Employment  Training  Act  by  all   of   the   participating
24    municipalities  and  instrumentalities.   The  Board may also
25    provide that, in lieu of a  separate  municipality  rate  for
26    these  employees, a portion of the municipality contributions
27    for such program participants shall be refunded or  an  extra
28    charge   assessed   so   that   the  amount  of  municipality
29    contributions retained or received by the fund for  all  CETA
30    program  participants  shall be an amount equal to that which
31    would be provided by the separate  municipality  contribution
32    rate  for  all  such  program participants.  Refunds shall be
33    made to prime sponsors of programs upon submission of a claim
34    therefor and extra charges shall be assessed to participating
 
                            -11-           LRB9205287EGfgam01
 1    municipalities and instrumentalities.   In  establishing  the
 2    municipality  contribution  rate as provided in paragraph (b)
 3    of  this  Section,  the  use  of  a   separate   municipality
 4    contribution rate for program participants or the refund of a
 5    portion  of  the  municipality contributions, as the case may
 6    be, may be considered.
 7        (e)  Computations of municipality contribution rates  for
 8    the  following  calendar  year  shall  be  made  prior to the
 9    beginning of each year, from the information available at the
10    time the computations are made, and on  the  assumption  that
11    the   employees   in   each   participating  municipality  or
12    participating instrumentality at such time will  continue  in
13    service  until  the  end  of  such  calendar  year  at  their
14    respective rates of earnings at such time.
15        (f)  Any  municipality  which  is  the recipient of State
16    allocations representing  that  municipality's  contributions
17    for retirement annuity purposes on behalf of its employees as
18    provided  in Section 12-21.16 of the Illinois Public Aid Code
19    shall pay the allocations so received to the Board  for  such
20    purpose.   Estimates  of  State  allocations  to  be received
21    during  any  taxable  year  shall  be   considered   in   the
22    determination  of  the  municipality's tax rate for that year
23    under Section 7-171.   If  a  special  tax  is  levied  under
24    Section  7-171, none of the proceeds may be used to reimburse
25    the municipality for the amount of State allocations received
26    and paid to the Board.  Any multiple-county  or  consolidated
27    health  department which receives contributions from a county
28    under Section 11.2 of "An Act in  relation  to  establishment
29    and   maintenance   of   county  and  multiple-county  health
30    departments",  approved  July  9,  1943,   as   amended,   or
31    distributions  under  Section  3  of the Department of Public
32    Health  Act,  shall   use   these   only   for   municipality
33    contributions by the health department.
34        (g)  Municipality  contributions for the several purposes
 
                            -12-           LRB9205287EGfgam01
 1    specified shall, for township treasurers and employees in the
 2    offices of the township treasurers who  meet  the  qualifying
 3    conditions  for  coverage  hereunder,  be allocated among the
 4    several  school  districts  and  parts  of  school  districts
 5    serviced by such treasurers and employees in  the  proportion
 6    which  the amount of school funds of each district or part of
 7    a district handled by the treasurer bears to the total amount
 8    of all school funds handled by the treasurer.
 9        From the funds subject to allocation among districts  and
10    parts  of districts pursuant to the School Code, the trustees
11    shall withhold the proportionate share of the  liability  for
12    municipality  contributions  imposed  upon  such districts by
13    this Section, in respect  to  such  township  treasurers  and
14    employees and remit the same to the Board.
15        The  municipality  contribution  rate  for an educational
16    service center shall initially be the same rate for each year
17    as the regional office of education or school district  which
18    serves  as  its  administrative  agent.   When actuarial data
19    become available, a separate rate  shall  be  established  as
20    provided in subparagraph (i) of this Section.
21        The  municipality  contribution rate for a public agency,
22    other than a vocational education cooperative,  formed  under
23    the  Intergovernmental Cooperation Act shall initially be the
24    average rate for the municipalities which are parties to  the
25    intergovernmental  agreement.   When  actuarial  data  become
26    available,  a  separate rate shall be established as provided
27    in subparagraph (i) of this Section.
28        (h)  Each participating  municipality  and  participating
29    instrumentality  shall  make the contributions in the amounts
30    provided in this Section in the manner prescribed  from  time
31    to  time  by  the  Board  and all such contributions shall be
32    obligations of the  respective  participating  municipalities
33    and   participating  instrumentalities  to  this  fund.   The
34    failure  to  deduct  any  employee  contributions  shall  not
 
                            -13-           LRB9205287EGfgam01
 1    relieve  the  participating  municipality  or   participating
 2    instrumentality  of  its obligation to this fund.  Delinquent
 3    payments of contributions due under this  Section  may,  with
 4    interest,   be   recovered   by   civil  action  against  the
 5    participating      municipalities      or       participating
 6    instrumentalities.   Municipality  contributions,  other than
 7    the amount necessary for employee  contributions  and  Social
 8    Security  contributions,  for periods of service by employees
 9    from whose earnings no  deductions  were  made  for  employee
10    contributions to the fund, may be charged to the municipality
11    reserve     for    the    municipality    or    participating
12    instrumentality.
13        (i)  Contributions  by  participating   instrumentalities
14    shall  be  determined  as  provided  herein  except  that the
15    percentage derived under subparagraph 2 of paragraph  (b)  of
16    this  Section, and the amount payable under subparagraph 5 of
17    paragraph  (a)  of  this  Section,  shall  be  based  on   an
18    amortization period of 10 years.
19    (Source: P.A. 90-448, eff. 8-16-97.)

20        Section  90.  The State Mandates Act is amended by adding
21    Section 8.25 as follows:

22        (30 ILCS 805/8.25 new)
23        Sec. 8.25. Exempt mandate.   Notwithstanding  Sections  6
24    and  8 of this Act, no reimbursement by the State is required
25    for  the  implementation  of  any  mandate  created  by  this
26    amendatory Act of the 92nd General Assembly.

27        Section 99. Effective date.  This Act takes  effect  upon
28    becoming law.".

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