State of Illinois
92nd General Assembly

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 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 7-151, 7-152, 7-166, and 7-172 as follows:

 6        (40 ILCS 5/7-151) (from Ch. 108 1/2, par. 7-151)
 7        Sec.  7-151.   Total  and permanent disability benefits -
 8    Commencement and  duration.   Permanent  disability  benefits
 9    shall be payable:
10        (a)  As  of  the  date  temporary disability benefits are
11    exhausted;
12        (b)  Once a month as of the end of each month;
13        (c)  For less than a month in a fraction  equal  to  that
14    created  by  making  the  number of days of disability in the
15    month the numerator and the number of the days in  the  month
16    the denominator;
17        (d)  To  the  beneficiary  of a deceased employee for the
18    unpaid amount accrued to the date of death;
19        (e)  While total and permanent disability continues;
20        (f)  For the period ending on the last day of  the  month
21    which is the later of the following:
22        1.  the month that the participating employee attains the
23    age  for a full Social Security old-age insurance benefit age
24    65;
25        2.  the month which  is  5  years  after  the  month  the
26    participating employee became disabled as provided in Section
27    7-146.
28    (Source: P.A. 86-272.)

29        (40 ILCS 5/7-152) (from Ch. 108 1/2, par. 7-152)
30        Sec. 7-152.  Disability benefits - Amount.  The amount of
                            -2-                LRB9204511EGfg
 1    the  monthly  temporary  and  total  and permanent disability
 2    benefits shall be 50% of the participating  employee's  final
 3    rate of earnings on the date disability was incurred, subject
 4    to the following adjustments:
 5        (a)  If  the participating employee has a reduced rate of
 6    earnings  at  the  time  his  employment  ceases  because  of
 7    disability, the rate of earnings shall  be  computed  on  the
 8    basis of his last 12 month period of full-time employment.
 9        (b)  If  the  participating  employee  is  eligible for a
10    disability benefit under the federal Social Security Act, the
11    amount of monthly disability benefits shall be  reduced,  but
12    not  to  less  than  $10  a  month, by the amount he would be
13    eligible to receive as a disability benefit under the federal
14    Social Security Act, whether or not because of service  as  a
15    covered  employee under this Article.  The reduction shall be
16    effective as of the month the employee is eligible for Social
17    Security  disability  benefits.   The  Board  may  make  such
18    reduction if it appears that the employee may be so  eligible
19    pending  determination of eligibility and make an appropriate
20    adjustment if necessary after  such  determination.   If  the
21    employee,  because  of  his  refusal to accept rehabilitation
22    services under the federal Rehabilitation Act of 1973 or  the
23    federal  Social  Security  Act,  or  because  he is receiving
24    workers'  compensation  benefits,  has  his  Social  Security
25    benefits reduced or terminated, the disability benefit  shall
26    be  reduced as if the employee were receiving his full Social
27    Security disability benefit.
28        (c)  If the employee (i) is  over  the  age  for  a  full
29    Social  Security  old-age  insurance benefit age 65, (ii) was
30    not  eligible  for  a  Social  Security  disability   benefit
31    immediately  before  reaching  that  age, age 65 and (iii) is
32    eligible  for  a  full  Social  Security  old-age   insurance
33    benefit,  then  the  amount of the monthly disability benefit
34    shall be reduced, but not to less than $10 a  month,  by  the
                            -3-                LRB9204511EGfg
 1    amount of the old-age insurance benefit to which the employee
 2    is  entitled,  whether  or  not  the employee applies for the
 3    Social Security old-age insurance  benefit.   This  reduction
 4    shall  be  made  in  the  month  after the month in which the
 5    employee attains the age for a full Social  Security  old-age
 6    insurance  benefit  age  65.   However,  if  the employee was
 7    receiving  a  Social  Security  disability   benefit   before
 8    reaching the age for a full Social Security old-age insurance
 9    benefit age 65, the disability benefits after that age age 65
10    shall be determined under subsection (b) of this Section.
11        (d)  The  amount  of  disability  benefits  shall  not be
12    reduced by reason of any increase, other than  one  resulting
13    from  a  correction  in  the  employee's wage records, in the
14    amount of disability or old-age insurance benefits under  the
15    federal  Social  Security  Act  which  takes effect after the
16    month of the initial reduction under paragraph (b) or (c)  of
17    this Section.
18        (e)  If  the  employee in any month receives compensation
19    from gainful employment which is more than 25% of  the  final
20    rate  of earnings on which his disability benefits are based,
21    the temporary disability benefit payable for that month shall
22    be reduced by an amount equal to such excess.
23        (f)  An employee who has been disabled for  at  least  30
24    days may return to work for the employer on a part-time basis
25    for  a  trial work period of up to one year, during which the
26    disability shall be deemed to continue.  Service credit shall
27    continue to accrue and the disability benefit shall  continue
28    to  be  paid  during  the  trial work period, but the benefit
29    shall be reduced by the amount of earnings  received  by  the
30    disabled  employee.   Return  to service on a full-time basis
31    shall terminate the trial work period.  The  reduction  under
32    this  subsection  (f)  shall  be in lieu of the reduction, if
33    any, required under subsection (e).
34        (g)  Beginning January 1, 1988, every total and permanent
                            -4-                LRB9204511EGfg
 1    disability benefit shall be increased by 3% of  the  original
 2    amount  of  the  benefit,  not  compounded, on each January 1
 3    following the later of (1) the date the total  and  permanent
 4    disability  benefit  begins,  or  (2)  the date the total and
 5    permanent disability benefit would have begun if the employee
 6    had been paid a temporary disability benefit for 30 months.
 7    (Source: P.A. 87-740.)

 8        (40 ILCS 5/7-166) (from Ch. 108 1/2, par. 7-166)
 9        Sec.   7-166.   Separation   benefits   -    Eligibility.
10    Separation  benefits  shall  be  payable  as  hereinafter set
11    forth:
12             1.  Upon  separation  from  the   service   of   all
13        participating    municipalities   and   instrumentalities
14        thereof   and   participating   instrumentalities,    any
15        participating  employee  who,  on the date of application
16        for such benefit, is not entitled to a retirement annuity
17        shall be entitled to a separation benefit.;
18             2.  Upon  separation  from  the   service   of   all
19        participating    municipalities   and   instrumentalities
20        thereof   and   participating   instrumentalities,    any
21        participating  employee  who,  on the date of application
22        for such benefit, is entitled to a retirement annuity  of
23        less  than  $30  per  month  for life may elect to take a
24        separation benefit in lieu of the retirement annuity.
25             3.  Upon  separation  from  the   service   of   all
26        participating    municipalities   and   instrumentalities
27        thereof   and   participating   instrumentalities,    any
28        participating  employee  who,  on the date of application
29        for such benefit, is entitled to  a  retirement  annuity,
30        but  wishes  instead  to  use  the  amounts to his or her
31        credit  in  the  Fund  to  purchase  credit  in   another
32        retirement  plan,  may elect to take a separation benefit
33        in lieu of the retirement annuity.
                            -5-                LRB9204511EGfg
 1    (Source: P.A. 91-887, eff. 7-6-00.)

 2        (40 ILCS 5/7-172) (from Ch. 108 1/2, par. 7-172)
 3        Sec.    7-172.     Contributions     by     participating
 4    municipalities and participating instrumentalities.
 5        (a)  Each    participating    municipality    and    each
 6    participating  instrumentality shall make payment to the fund
 7    as follows:
 8             1.  municipality   contributions   in   an    amount
 9        determined by applying the municipality contribution rate
10        to   each  payment  of  earnings  paid  to  each  of  its
11        participating employees;
12             2.  an amount equal to  the  employee  contributions
13        provided  by  paragraphs  (a)  and  (b) of Section 7-173,
14        whether or not the employee contributions are withheld as
15        permitted by that Section;
16             3.  all accounts receivable, together with  interest
17        charged thereon, as provided in Section 7-209;
18             4.  if   it  has  no  participating  employees  with
19        current earnings, an amount payable which, over a  period
20        of 20 years beginning with the year following an award of
21        benefit,  will  amortize,  at the effective rate for that
22        year, any negative balance in  its  municipality  reserve
23        resulting  from  the award.  This amount when established
24        will be payable as a separate contribution whether or not
25        it later has participating employees.
26        (b)  A separate municipality contribution rate  shall  be
27    determined  for  each  calendar  year  for  all participating
28    municipalities together with all  instrumentalities  thereof.
29    The  municipality  contribution  rate shall be determined for
30    participating instrumentalities as if they were participating
31    municipalities.  The municipality contribution rate shall  be
32    the sum of the following percentages:
33             1.  The   percentage   of   earnings   of   all  the
                            -6-                LRB9204511EGfg
 1        participating    employees    of    all     participating
 2        municipalities and participating instrumentalities which,
 3        if  paid over the entire period of their service, will be
 4        sufficient when combined with all employee  contributions
 5        available  for  the  payment  of benefits, to provide all
 6        annuities for participating  employees,  and  the  $3,000
 7        death  benefit  payable  under  Sections 7-158 and 7-164,
 8        such percentage to be known as the normal cost rate.
 9             2.  The percentage of earnings of the  participating
10        employees   of   each   participating   municipality  and
11        participating instrumentalities necessary to  adjust  for
12        the difference between the present value of all benefits,
13        excluding  temporary  and  total and permanent disability
14        and death benefits, to be provided for its  participating
15        employees  and  the  sum  of its accumulated municipality
16        contributions and the accumulated employee  contributions
17        and  the  present  value  of expected future employee and
18        municipality contributions pursuant to subparagraph 1  of
19        this paragraph (b).  This adjustment shall be spread over
20        the  remainder  of  the  period  that  is allowable under
21        generally accepted accounting principles of 40 years from
22        the  first  of   the   year   following   the   date   of
23        determination.
24             3.  The  percentage of earnings of the participating
25        employees  of  all   municipalities   and   participating
26        instrumentalities  necessary to provide the present value
27        of all  temporary  and  total  and  permanent  disability
28        benefits  granted  during  the most recent year for which
29        information is available.
30             4.  The percentage of earnings of the  participating
31        employees   of   all   participating  municipalities  and
32        participating instrumentalities necessary to provide  the
33        present  value  of  the  net  single  sum  death benefits
34        expected to become payable from the  reserve  established
                            -7-                LRB9204511EGfg
 1        under  Section  7-206 during the year for which this rate
 2        is fixed.
 3             5.  The percentage of earnings necessary to meet any
 4        deficiency  arising  in   the   Terminated   Municipality
 5        Reserve.
 6        (c)  A  separate  municipality contribution rate shall be
 7    computed for each participating municipality or participating
 8    instrumentality for its sheriff's law enforcement employees.
 9        A  separate  municipality  contribution  rate  shall   be
10    computed  for the sheriff's law enforcement employees of each
11    forest preserve district that elects to have such  employees.
12    For  the  period  from  January 1, 1986 to December 31, 1986,
13    such rate shall be the  forest  preserve  district's  regular
14    rate plus 2%.
15        In  the  event that the Board determines that there is an
16    actuarial deficiency in the account of any municipality  with
17    respect  to  a  person  who has elected to participate in the
18    Fund under Section 3-109.1 of this Code, the Board may adjust
19    the municipality's contribution rate so as to  make  up  that
20    deficiency  over  such reasonable period of time as the Board
21    may determine.
22        (d)  The Board  may  establish  a  separate  municipality
23    contribution   rate   for   all  employees  who  are  program
24    participants  employed  under   the   federal   Comprehensive
25    Employment   Training   Act   by  all  of  the  participating
26    municipalities and instrumentalities.   The  Board  may  also
27    provide  that,  in  lieu  of a separate municipality rate for
28    these employees, a portion of the municipality  contributions
29    for  such  program participants shall be refunded or an extra
30    charge  assessed  so  that   the   amount   of   municipality
31    contributions  retained  or received by the fund for all CETA
32    program participants shall be an amount equal to  that  which
33    would  be  provided by the separate municipality contribution
34    rate for all such program  participants.   Refunds  shall  be
                            -8-                LRB9204511EGfg
 1    made to prime sponsors of programs upon submission of a claim
 2    therefor and extra charges shall be assessed to participating
 3    municipalities  and  instrumentalities.   In establishing the
 4    municipality contribution rate as provided in  paragraph  (b)
 5    of   this   Section,  the  use  of  a  separate  municipality
 6    contribution rate for program participants or the refund of a
 7    portion of the municipality contributions, as  the  case  may
 8    be, may be considered.
 9        (e)  Computations  of municipality contribution rates for
10    the following calendar  year  shall  be  made  prior  to  the
11    beginning of each year, from the information available at the
12    time  the  computations  are made, and on the assumption that
13    the  employees  in   each   participating   municipality   or
14    participating  instrumentality  at such time will continue in
15    service  until  the  end  of  such  calendar  year  at  their
16    respective rates of earnings at such time.
17        (f)  Any municipality which is  the  recipient  of  State
18    allocations  representing  that  municipality's contributions
19    for retirement annuity purposes on behalf of its employees as
20    provided in Section 12-21.16 of the Illinois Public Aid  Code
21    shall  pay  the allocations so received to the Board for such
22    purpose.  Estimates  of  State  allocations  to  be  received
23    during   any   taxable   year  shall  be  considered  in  the
24    determination of the municipality's tax rate  for  that  year
25    under  Section  7-171.   If  a  special  tax  is levied under
26    Section 7-171, none of the proceeds may be used to  reimburse
27    the municipality for the amount of State allocations received
28    and  paid  to the Board.  Any multiple-county or consolidated
29    health department which receives contributions from a  county
30    under  Section  11.2  of "An Act in relation to establishment
31    and  maintenance  of  county   and   multiple-county   health
32    departments",   approved   July   9,  1943,  as  amended,  or
33    distributions under Section 3 of  the  Department  of  Public
34    Health   Act,   shall   use   these   only  for  municipality
                            -9-                LRB9204511EGfg
 1    contributions by the health department.
 2        (g)  Municipality contributions for the several  purposes
 3    specified shall, for township treasurers and employees in the
 4    offices  of  the  township treasurers who meet the qualifying
 5    conditions for coverage hereunder,  be  allocated  among  the
 6    several  school  districts  and  parts  of  school  districts
 7    serviced  by  such treasurers and employees in the proportion
 8    which the amount of school funds of each district or part  of
 9    a district handled by the treasurer bears to the total amount
10    of all school funds handled by the treasurer.
11        From  the funds subject to allocation among districts and
12    parts of districts pursuant to the School Code, the  trustees
13    shall  withhold  the proportionate share of the liability for
14    municipality contributions imposed  upon  such  districts  by
15    this  Section,  in  respect  to  such township treasurers and
16    employees and remit the same to the Board.
17        The municipality contribution  rate  for  an  educational
18    service center shall initially be the same rate for each year
19    as  the regional office of education or school district which
20    serves as its  administrative  agent.   When  actuarial  data
21    become  available,  a  separate  rate shall be established as
22    provided in subparagraph (i) of this Section.
23        The municipality contribution rate for a  public  agency,
24    other  than  a vocational education cooperative, formed under
25    the Intergovernmental Cooperation Act shall initially be  the
26    average  rate for the municipalities which are parties to the
27    intergovernmental  agreement.   When  actuarial  data  become
28    available, a separate rate shall be established  as  provided
29    in subparagraph (i) of this Section.
30        (h)  Each  participating  municipality  and participating
31    instrumentality shall make the contributions in  the  amounts
32    provided  in  this Section in the manner prescribed from time
33    to time by the Board and  all  such  contributions  shall  be
34    obligations  of  the  respective participating municipalities
                            -10-               LRB9204511EGfg
 1    and  participating  instrumentalities  to  this  fund.    The
 2    failure  to  deduct  any  employee  contributions  shall  not
 3    relieve   the  participating  municipality  or  participating
 4    instrumentality of its obligation to this  fund.   Delinquent
 5    payments  of  contributions  due under this Section may, with
 6    interest,  be  recovered  by   civil   action   against   the
 7    participating       municipalities      or      participating
 8    instrumentalities.  Municipality  contributions,  other  than
 9    the  amount  necessary  for employee contributions and Social
10    Security contributions, for periods of service  by  employees
11    from  whose  earnings  no  deductions  were made for employee
12    contributions to the fund, may be charged to the municipality
13    reserve    for    the    municipality    or     participating
14    instrumentality.
15        (i)  Contributions   by  participating  instrumentalities
16    shall be  determined  as  provided  herein  except  that  the
17    percentage  derived  under subparagraph 2 of paragraph (b) of
18    this Section, and the amount payable under subparagraph 5  of
19    paragraph   (a)  of  this  Section,  shall  be  based  on  an
20    amortization period of 10 years.
21    (Source: P.A. 90-448, eff. 8-16-97.)

22        Section 90.  The State Mandates Act is amended by  adding
23    Section 8.25 as follows:

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

29        Section  99.  Effective date.  This Act takes effect upon
30    becoming law.

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