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Public Act 096-0775 |
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AN ACT in relation to public employee benefits.
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Be it enacted by the People of the State of Illinois, | ||||
represented in the General Assembly:
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Section 5. The Illinois Pension Code is amended by changing | ||||
Sections 2-121, 3-109, 4-109.1, 7-141.1, and 14-104 as follows:
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(40 ILCS 5/2-121) (from Ch. 108 1/2, par. 2-121)
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Sec. 2-121. Survivor's annuity - conditions for payment.
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(a) A survivor's annuity shall be payable to a surviving | ||||
spouse or
eligible child (1) upon the death in service of a | ||||
participant with at least
2 years of service credit, or (2) | ||||
upon the death of an annuitant in receipt
of a retirement | ||||
annuity, or (3) upon the death of a participant who terminated
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service with at least 4 years of service credit.
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The change in this subsection (a) made by this amendatory | ||||
Act of 1995
applies to survivors of participants who die on or | ||||
after December 1, 1994,
without regard to whether or not the | ||||
participant was in service on or after
the effective date of | ||||
this amendatory Act of 1995.
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(b) To be eligible for the survivor's annuity, the spouse | ||||
and the
participant or annuitant must have been married for a | ||||
continuous period of at
least one year immediately preceding | ||||
the date of death, but need not have
been married on the day of | ||||
the participant's last termination of service,
regardless of |
whether such termination occurred prior to the effective date
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of this amendatory Act of 1985.
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(c) The annuity shall be payable beginning on the date of a
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participant's death, or the first of the month following an | ||
annuitant's
death, if the spouse is then age 50 or over, or | ||
beginning at age 50 if the
spouse is then under age 50. If an | ||
eligible child or children of the
participant or annuitant (or | ||
a child or children of the eligible spouse
meeting the criteria | ||
of item (1), (2), or (3) of subsection (d) of this
Section) | ||
also survive, and the child or children are under
the care of | ||
the eligible spouse, the annuity shall begin as of the date of
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a participant's death, or the first of the month following an | ||
annuitant's
death, without regard to the spouse's age.
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The change to this subsection made by this amendatory Act | ||
of 1998
(relating to children of an eligible spouse) applies to | ||
the eligible spouse
of a participant or annuitant who dies on | ||
or after the effective date of this
amendatory Act, without | ||
regard to whether the participant or annuitant is in
service on | ||
or after that effective date.
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(c-5) Upon the death in service of a participant during the | ||
90th General Assembly, the survivor's annuity shall be payable | ||
prior to age 50, notwithstanding subsection (c) of this | ||
Section, provided that the deceased participant had at least 6 | ||
years of service. This subsection (c-5) applies to the eligible | ||
spouse of a deceased participant without regard to whether the | ||
deceased participant was in service on or after the effective |
date of this amendatory Act of the 96th General Assembly, and | ||
retroactive benefits may be paid for periods of eligibility | ||
after February 28, 2009. | ||
(d) For the purposes of this Section and Section 2-121.1, | ||
"eligible child"
means a child of the deceased participant or | ||
annuitant
who is at least one of the following:
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(1) unmarried and under the age of 18;
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(2) unmarried, a full-time student, and under the age | ||
of 22;
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(3) dependent by reason of physical or mental | ||
disability.
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The inclusion of unmarried students under age 22 in the | ||
calculation of
survivor's annuities by this amendatory Act of | ||
1991 shall apply to all
eligible students beginning January 1, | ||
1992, without regard to whether the
deceased participant or | ||
annuitant was in service on or after the effective
date of this | ||
amendatory Act of 1991.
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(e) Remarriage of a surviving spouse prior to attainment of | ||
age 55
shall disqualify the surviving spouse from the receipt | ||
of a survivor's
annuity, if the remarriage occurs before the | ||
effective date of this
amendatory Act of the 91st General | ||
Assembly.
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The changes made to this subsection by this amendatory Act | ||
of the 91st
General Assembly (pertaining to remarriage prior to | ||
age 55) apply without
regard to whether the deceased | ||
participant or annuitant was in service on or
after the |
effective date of this amendatory Act.
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(Source: P.A. 95-279, eff. 1-1-08.)
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(40 ILCS 5/3-109) (from Ch. 108 1/2, par. 3-109)
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Sec. 3-109. Persons excluded.
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(a) The following persons shall not be eligible to | ||
participate in a fund
created under this Article:
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(1) part-time police officers, special police | ||
officers, night watchmen,
temporary employees, traffic | ||
guards or so-called auxiliary police officers
specially | ||
appointed to aid or direct traffic at or near schools or | ||
public
functions, or to aid in civil defense, municipal | ||
parking lot attendants,
clerks or other civilian employees | ||
of a police department who perform
clerical duties | ||
exclusively;
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(2) any police officer who fails to pay the | ||
contributions required
under Section 3-125.1, computed (i) | ||
for funds established prior to August
5, 1963, from the | ||
date the municipality established the fund or the date of
a | ||
police officer's first appointment (including an | ||
appointment on probation),
whichever is later, or (ii) for | ||
funds established after August 5, 1963,
from the date, as | ||
determined from the statistics or census provided in
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Section 3-103, the municipality became subject to this | ||
Article by attaining
the minimum population or by | ||
referendum, or the date of a police officer's
first |
appointment (including an appointment on probation), | ||
whichever is
later, and continuing during his or her entire | ||
service as a police officer; and
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(3) any person who has elected under Section 3-109.1 to | ||
participate in
the Illinois Municipal Retirement Fund | ||
rather than in a fund established
under this Article, | ||
without regard to whether the person continues to be
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employed as chief of police or is employed in some other | ||
rank or capacity
within the police department, unless the | ||
person has lawfully rescinded that
election.
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(b) A police officer who is reappointed shall, before being | ||
declared
eligible to participate in the pension fund, repay to | ||
the fund as required
by Section 3-124 any refund received | ||
thereunder.
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(c) Any person otherwise qualified to participate who was
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excluded from participation by reason of the age restriction | ||
removed by
Public Act 79-1165 may elect to participate by | ||
making a written application
to the Board before January 1, | ||
1990. Persons so electing shall begin
participation on the | ||
first day of the month following the date of
application. Such | ||
persons may also elect to establish creditable service
for | ||
periods of employment as a police officer during which they did | ||
not
participate by paying into the police pension fund, before | ||
January 1, 1990,
the amount that the person would have | ||
contributed had deductions from
salary been made for such | ||
purpose at the time such service was rendered,
together with |
interest thereon at 6% per annum from the time such service
was | ||
rendered until the date the payment is made.
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(d) A person otherwise qualified to participate who was | ||
excluded from
participation by reason of the fitness | ||
requirement removed by this amendatory
Act of 1995 may elect to | ||
participate by making a written application to the
Board before | ||
July 1, 1996. Persons so electing shall begin participation on
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the first day of the month following the month in which the | ||
application is
received by the Board. These persons may also | ||
elect to establish creditable
service for periods of employment | ||
as a police officer during which they did not
participate by | ||
paying into the police pension fund, before January 1, 1997, | ||
the
amount that the person would have contributed had | ||
deductions from salary been
made for this purpose at the time | ||
the service was rendered, together with
interest thereon at 6% | ||
per annum, compounded annually, from the time the
service was | ||
rendered until the date of payment.
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(e) A person employed by the Village of Shiloh who is | ||
otherwise qualified to participate and was excluded from
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participation by reason of his or her failure to make written | ||
application to the Board within 3 months after receiving his or | ||
her first appointment or reappointment as required under | ||
Section 3-106 may elect to participate by making a written | ||
application to the
Board before July 1, 2008. Persons so | ||
electing shall begin participation on
the first day of the | ||
month following the month in which the application is
received |
by the Board. These persons may also elect to establish | ||
creditable
service for periods of employment as a police | ||
officer during which they did not
participate by paying into | ||
the police pension fund, before January 1, 2009, the
amount | ||
that the person would have contributed had deductions from | ||
salary been
made for this purpose at the time the service was | ||
rendered, together with
interest thereon at 6% per annum, | ||
compounded annually, from the time the
service was rendered | ||
until the date of payment. The Village of Shiloh must pay to | ||
the System the corresponding employer contributions, plus | ||
interest.
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(f) A person who has entered into a personal services | ||
contract to perform police duties for the Village of | ||
Bartonville on or before the effective date of this amendatory | ||
Act of the 96th General Assembly may be appointed as an officer | ||
in the Village of Bartonville within 6 months after the | ||
effective date of this amendatory Act, but shall be excluded | ||
from participating under this Article. | ||
(Source: P.A. 95-483, eff. 8-28-07.)
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(40 ILCS 5/4-109.1) (from Ch. 108 1/2, par. 4-109.1)
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Sec. 4-109.1. Increase in pension.
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(a) Except as provided in subsection (e), the monthly | ||
pension of a
firefighter who retires after July 1, 1971 and | ||
prior to January 1, 1986, shall,
upon either the first of the | ||
month following the first anniversary of the date
of retirement |
if 60 years of age or over at retirement date, or upon the | ||
first
day of the month following attainment of age 60 if it | ||
occurs after the first
anniversary of retirement, be increased | ||
by 2% of the originally granted monthly
pension and by an | ||
additional 2% in each January thereafter. Effective January
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1976, the rate of the annual increase shall be 3% of the | ||
originally granted
monthly pension.
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(b) The monthly pension of a firefighter who retired
from | ||
service with 20 or more years of service, on or before
July 1, | ||
1971, shall be increased, in January of the year
following the | ||
year of attaining age 65 or in January
1972, if then over age | ||
65, by 2% of the originally granted monthly
pension, for each | ||
year the firefighter received pension payments.
In each January | ||
thereafter, he or she shall receive an additional
increase of | ||
2% of the original monthly pension. Effective
January 1976, the | ||
rate of the annual increase shall be 3%.
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(c) The monthly pension of a firefighter who is receiving
a | ||
disability pension under this Article shall be increased, in
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January of the year following the year the firefighter attains
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age 60, or in January 1974, if then over age 60, by 2% of the
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originally granted monthly pension for each
year he or she | ||
received pension payments.
In each January thereafter, the | ||
firefighter shall receive an additional
increase of 2% of the | ||
original monthly pension. Effective January 1976,
the rate of | ||
the annual increase shall be 3%.
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(c-1) On January 1, 1998, every child's disability benefit |
payable on that
date under Section 4-110 or 4-110.1 shall be | ||
increased by an amount equal to
1/12 of 3% of the amount of the | ||
benefit, multiplied by the number of months for
which the | ||
benefit has been payable. On each January 1 thereafter, every
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child's disability benefit payable under Section 4-110 or | ||
4-110.1 shall be
increased by 3% of the amount of the benefit | ||
then being paid, including any
previous increases received | ||
under this Article. These increases are not
subject to any | ||
limitation on the maximum benefit amount included in Section
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4-110 or 4-110.1.
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(c-2) On July 1, 2004, every pension payable to or on | ||
behalf of a minor
or disabled surviving child that is payable | ||
on that date under Section 4-114
shall be increased by an | ||
amount equal to 1/12 of 3% of the amount of the
pension, | ||
multiplied by the number of months for which the benefit has | ||
been
payable. On July 1, 2005, July 1, 2006, July 1, 2007, and | ||
July 1, 2008, every pension payable to or on behalf
of a minor | ||
or disabled surviving child that is payable under Section 4-114
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shall be increased by 3% of the amount of the pension then | ||
being paid,
including any previous increases received under | ||
this Article. These increases
are not subject to any limitation | ||
on the maximum benefit amount included in
Section 4-114.
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(d) The monthly pension of a firefighter who retires after | ||
January 1,
1986, shall, upon either the first of the month | ||
following the first
anniversary of the date of retirement if 55 | ||
years of age or over, or
upon the first day of the month |
following attainment of
age 55 if it occurs after the first | ||
anniversary of retirement, be increased
by 1/12 of 3% of the | ||
originally granted monthly pension for each full
month that has | ||
elapsed since the pension began, and by an
additional 3% in | ||
each January thereafter.
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The changes made to this subsection (d) by this amendatory | ||
Act of the 91st
General Assembly apply to all initial increases | ||
that become payable under this
subsection on or after January | ||
1, 1999. All initial increases that became
payable under this | ||
subsection on or after January 1, 1999 and before the
effective | ||
date of this amendatory Act shall be recalculated and the | ||
additional
amount accruing for that period, if any, shall be | ||
payable to the pensioner in a
lump sum.
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(e) Notwithstanding the provisions of subsection (a), upon | ||
the
first day of the month following (1) the first anniversary | ||
of the date of
retirement, or (2) the attainment of age 55, or | ||
(3) July 1, 1987, whichever
occurs latest, the monthly pension | ||
of a firefighter who retired on or after
January 1, 1977 and on | ||
or before January 1, 1986 and did not receive an
increase under | ||
subsection (a) before July 1, 1987,
shall be increased by 3% of | ||
the originally granted monthly pension for
each full year that | ||
has elapsed since the pension began, and by an
additional 3% in | ||
each January thereafter. The increases provided under
this | ||
subsection are in lieu of the increases provided in subsection | ||
(a).
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(f) In July 2009, the monthly pension of a
firefighter who |
retired before July 1, 1977 shall be recalculated and increased | ||
to reflect the amount that the firefighter would have received | ||
in July 2009 had the firefighter been receiving a 3% compounded | ||
increase for each year he or she received pension payments | ||
after January 1, 1986, plus any increases in pension received | ||
for each year prior to January 1, 1986. In each January | ||
thereafter, he or she shall receive an additional
increase of | ||
3% of the amount of the pension then being paid. The changes | ||
made to this Section by this amendatory Act of the 96th General | ||
Assembly apply without regard to whether the firefighter was in | ||
service on or after its effective date. | ||
(Source: P.A. 93-689, eff. 7-1-04.)
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(40 ILCS 5/7-141.1)
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Sec. 7-141.1. Early retirement incentive.
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(a) The General Assembly finds and declares that:
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(1) Units of local government across the State have | ||
been functioning
under a financial crisis.
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(2) This financial crisis is expected to continue.
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(3) Units of local government must depend on additional | ||
sources of
revenue and, when those sources are not | ||
forthcoming, must establish
cost-saving programs.
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(4) An early retirement incentive designed | ||
specifically to target
highly-paid senior employees could | ||
result in significant annual cost
savings.
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(5) The early retirement incentive should be made |
available only to
those units of local government that | ||
determine that an early retirement
incentive is in their | ||
best interest.
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(6) A unit of local government adopting a program of | ||
early retirement
incentives under this Section is | ||
encouraged to implement personnel procedures
to prohibit, | ||
for at least 5 years, the rehiring (whether on payroll or | ||
by
independent contract) of employees who receive early | ||
retirement incentives.
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(7) A unit of local government adopting a program of | ||
early retirement
incentives under this Section is also | ||
encouraged to replace as few of the
participating employees | ||
as possible and to hire replacement employees for
salaries | ||
totaling no more than 80% of the total salaries formerly | ||
paid to the
employees who participate in the early | ||
retirement program.
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It is the primary purpose of this Section to encourage | ||
units of local
government that can realize true cost savings, | ||
or have determined that an early
retirement program is in their | ||
best interest, to implement an early retirement
program.
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(b) Until the effective date of this amendatory Act of | ||
1997, this
Section does not apply to any employer that is a | ||
city, village, or incorporated
town, nor to the employees of | ||
any such employer. Beginning on the effective
date of this | ||
amendatory Act of 1997, any employer under this Article, | ||
including
an employer that is a city, village, or incorporated |
town, may establish an
early retirement incentive program for | ||
its employees under this Section. The
decision of a city, | ||
village, or incorporated town to consider or establish an
early | ||
retirement program is at the sole discretion of that city, | ||
village, or
incorporated town, and nothing in this amendatory | ||
Act of 1997 limits or
otherwise diminishes this discretion. | ||
Nothing contained in this Section shall
be construed to require | ||
a city, village, or incorporated town to establish an
early | ||
retirement program and no city, village, or incorporated town | ||
may be
compelled to implement such a program.
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The benefits provided in this Section are available only to | ||
members
employed by a participating employer that has filed | ||
with the Board of the
Fund a resolution or ordinance expressly | ||
providing for the creation of an
early retirement incentive | ||
program under this Section for its employees and
specifying the | ||
effective date of the early retirement incentive program.
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Subject to the limitation in subsection (h), an employer may | ||
adopt a resolution
or ordinance providing a program of early | ||
retirement incentives under this
Section at any time.
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The resolution or ordinance shall be in substantially the | ||
following form:
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RESOLUTION (ORDINANCE) NO. ....
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A RESOLUTION (ORDINANCE) ADOPTING AN EARLY
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RETIREMENT INCENTIVE PROGRAM FOR EMPLOYEES
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IN THE ILLINOIS MUNICIPAL RETIREMENT FUND
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WHEREAS, Section 7-141.1 of the Illinois Pension Code | ||
provides that a
participating employer may elect to adopt an | ||
early retirement
incentive program offered by the Illinois | ||
Municipal Retirement Fund by
adopting a resolution or | ||
ordinance; and
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WHEREAS, The goal of adopting an early retirement program | ||
is
to realize a substantial savings in personnel costs by | ||
offering early
retirement incentives to employees who have | ||
accumulated many years of
service credit; and
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WHEREAS, Implementation of the early retirement program | ||
will provide a
budgeting tool to aid in controlling payroll | ||
costs; and
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WHEREAS, The (name of governing body) has determined that | ||
the adoption of an
early retirement incentive program is in the | ||
best interests of the (name of
participating employer); | ||
therefore be it
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RESOLVED (ORDAINED) by the (name of governing body) of | ||
(name of
participating employer) that:
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(1) The (name of participating employer) does hereby adopt | ||
the Illinois
Municipal Retirement Fund early retirement | ||
incentive program as provided in
Section 7-141.1 of the | ||
Illinois Pension Code. The early retirement incentive
program | ||
shall take effect on (date).
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(2) In order to help achieve a true cost savings, a person | ||
who retires under
the early retirement incentive program shall | ||
lose those incentives if he or she
later accepts employment |
with any IMRF employer in a position for which
participation in | ||
IMRF is required or is elected by the employee.
| ||
(3) In order to utilize an early retirement incentive as a | ||
budgeting
tool, the (name of participating employer) will use | ||
its best efforts either
to limit the number of employees who | ||
replace the employees who retire under
the early retirement | ||
program or to limit the salaries paid to the employees who
| ||
replace the employees who retire under the early retirement | ||
program.
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(4) The effective date of each employee's retirement under | ||
this early
retirement program shall be set by (name of | ||
employer) and shall be no
earlier than the effective date of | ||
the program and no later than one year after
that effective | ||
date; except that the employee may require that the retirement
| ||
date set by the employer be no later than the June 30 next | ||
occurring after the
effective date of the program and no | ||
earlier than the date upon which the
employee qualifies for | ||
retirement.
| ||
(5) To be eligible for the early retirement incentive under | ||
this Section,
the employee must have attained age 50 and have | ||
at least 20 years of creditable
service by his or her | ||
retirement date.
| ||
(6) The (clerk or secretary) shall promptly file a | ||
certified copy of
this resolution (ordinance) with the Board of | ||
Trustees of the Illinois
Municipal Retirement Fund.
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CERTIFICATION
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I, (name), the (clerk or secretary) of the (name of | ||
participating
employer) of the County of (name), State of | ||
Illinois, do hereby certify
that I am the keeper of the books | ||
and records of the (name of employer)
and that the foregoing is | ||
a true and correct copy of a resolution
(ordinance) duly | ||
adopted by the (governing body) at a meeting duly convened
and | ||
held on (date).
| ||
SEAL
| ||
(Signature of clerk or secretary)
| ||
(c) To be eligible for the benefits provided under an early | ||
retirement
incentive program adopted under this Section, a | ||
member must:
| ||
(1) be a participating employee of this Fund who, on | ||
the effective date of
the program, (i) is in active payroll | ||
status as an employee of a participating
employer that has | ||
filed the required ordinance or resolution with the Board,
| ||
(ii) is on layoff status from such a position with a right | ||
of re-employment or
recall to service, (iii) is on a leave | ||
of absence from such a position, or (iv)
is on disability | ||
but has not been receiving benefits under Section 7-146 or
| ||
7-150 for a period of more than 2 years from the date of | ||
application;
| ||
(2) have never previously received a retirement | ||
annuity under
this Article or under the Retirement Systems | ||
Reciprocal Act using service
credit established under this |
Article;
| ||
(3) (blank);
| ||
(4) have at least 20 years of creditable service in the | ||
Fund by the date
of retirement, without the use of any | ||
creditable service established under this
Section;
| ||
(5) have attained age 50 by the date of retirement, | ||
without the use of any
age enhancement received under this | ||
Section; and
| ||
(6) be eligible to receive a retirement annuity under | ||
this Article by the
date of retirement, for which purpose | ||
the age enhancement and creditable
service established | ||
under this Section may be considered.
| ||
(d) The employer shall determine the retirement date for | ||
each employee
participating in the early retirement program | ||
adopted under this Section. The
retirement date shall be no | ||
earlier than the effective date of the program and
no later | ||
than one year after that effective date, except that the | ||
employee may
require that the retirement date set by the | ||
employer be no later than the June
30 next occurring after the | ||
effective date of the program and no earlier than
the date upon | ||
which the employee qualifies for retirement. The employer shall
| ||
give each employee participating in the early retirement | ||
program at least 30
days written notice of the employee's | ||
designated retirement date, unless the
employee waives this | ||
notice requirement.
| ||
(e) An eligible person may establish up to 5 years of |
creditable service
under this Section. In addition, for each | ||
period of creditable service
established under this Section, a | ||
person shall have his or her age at
retirement deemed enhanced | ||
by an equivalent period.
| ||
The creditable service established under this Section may | ||
be used for all
purposes under this Article and the Retirement | ||
Systems Reciprocal Act,
except for the computation of final | ||
rate of earnings and the determination
of earnings, salary, or | ||
compensation under this or any other Article of the
Code.
| ||
The age enhancement established under this Section may be | ||
used for all
purposes under this Article (including calculation | ||
of the reduction imposed
under subdivision (a)1b(iv) of Section | ||
7-142), except for purposes of a
reversionary annuity under | ||
Section 7-145 and any distributions required because
of age. | ||
The age enhancement established under this Section may be used | ||
in
calculating a proportionate annuity payable by this Fund | ||
under the Retirement
Systems Reciprocal Act, but shall not be | ||
used in determining benefits payable
under other Articles of | ||
this Code under the Retirement Systems Reciprocal Act.
| ||
(f) For all creditable service established under this | ||
Section, the
member must pay to the Fund an employee | ||
contribution consisting of 4.5%
of the member's highest annual | ||
salary rate used in the determination of the
final rate of | ||
earnings for retirement annuity purposes for each year of
| ||
creditable service granted under this Section. For creditable | ||
service
established under this Section by a person who is a |
sheriff's law
enforcement employee to be deemed service as a | ||
sheriff's law enforcement
employee, the employee contribution | ||
shall be at the rate of 6.5%
of highest annual salary per year | ||
of creditable service granted.
Contributions for fractions of a | ||
year of service shall be prorated.
Any amounts that are | ||
disregarded in determining the final rate of earnings
under | ||
subdivision (d)(5) of Section 7-116 (the 125% rule) shall also | ||
be
disregarded in determining the required contribution under | ||
this subsection (f).
| ||
The employee contribution shall be paid to the Fund as | ||
follows: If the
member is entitled to a lump sum payment for | ||
accumulated vacation, sick leave,
or personal leave upon | ||
withdrawal from service, the employer shall deduct the
employee | ||
contribution from that lump sum and pay the deducted amount | ||
directly
to the Fund. If there is no such lump sum payment or | ||
the required employee
contribution exceeds the net amount of | ||
the lump sum payment, then the remaining
amount due, at the | ||
option of the employee, may either be paid to the Fund
before | ||
the annuity commences or deducted from the retirement annuity | ||
in 24
equal monthly installments.
| ||
(g) An annuitant who has received any age enhancement or | ||
creditable service
under this Section and thereafter accepts | ||
employment with or enters into a
personal services contract | ||
with an employer under this Article thereby forfeits
that age | ||
enhancement and creditable service; except that this | ||
restriction
does not apply to (1) service in an elective |
office, so long as the annuitant
does not participate in this | ||
Fund with respect to that office and (2) a person appointed as | ||
an officer under subsection (f) of Section 3-109 of this Code . | ||
A person
forfeiting early retirement incentives under this | ||
subsection (i) must repay to
the Fund that portion of the | ||
retirement annuity already received which is
attributable to | ||
the early retirement incentives that are being forfeited, (ii)
| ||
shall not be eligible to participate in any future early | ||
retirement program
adopted under this Section, and (iii) is | ||
entitled to a refund of the employee
contribution paid under | ||
subsection (f). The Board shall deduct the required
repayment | ||
from the refund and may impose a reasonable payment schedule | ||
for
repaying the amount, if any, by which the required | ||
repayment exceeds the refund
amount.
| ||
(h) The additional unfunded liability accruing as a result | ||
of the adoption
of a program of early retirement incentives | ||
under this Section by an employer
shall be amortized over a | ||
period of 10 years beginning on January 1 of the
second | ||
calendar year following the calendar year in which the latest | ||
date for
beginning to receive a retirement annuity under the | ||
program (as determined by
the employer under subsection (d) of | ||
this Section) occurs; except that the
employer may provide for | ||
a shorter amortization period (of no less than 5
years) by | ||
adopting an ordinance or resolution specifying the length of | ||
the
amortization period and submitting a certified copy of the | ||
ordinance or
resolution to the Fund no later than 6 months |
after the effective date of the
program. An employer, at its | ||
discretion, may accelerate payments to the Fund.
| ||
An employer may provide more than one early retirement | ||
incentive program
for its employees under this Section. | ||
However, an employer that has provided
an early retirement | ||
incentive program for its employees under this Section may
not | ||
provide another early retirement incentive program under this | ||
Section until the liability arising from the earlier program | ||
has been fully paid to
the Fund.
| ||
(Source: P.A. 94-456, eff. 8-4-05.)
| ||
(40 ILCS 5/14-104) (from Ch. 108 1/2, par. 14-104) | ||
Sec. 14-104. Service for which contributions permitted.
| ||
Contributions provided for in this Section shall cover the | ||
period of
service granted. Except as otherwise provided in this | ||
Section, the
contributions shall be based upon the employee's | ||
compensation and
contribution rate in effect on the date he | ||
last became a member of the
System; provided that for all | ||
employment prior to January 1, 1969 the
contribution rate shall | ||
be that in effect for a noncovered employee on
the date he last | ||
became a member of the System. Except as otherwise provided
in | ||
this Section, contributions permitted under this Section shall | ||
include
regular interest from the date an employee last became | ||
a member of the System
to the date of payment.
| ||
These contributions must be paid in full before retirement | ||
either in
a lump sum or in installment payments in accordance |
with such rules as
may be adopted by the board.
| ||
(a) Any member may make contributions as required in this | ||
Section
for any period of service, subsequent to the date of | ||
establishment, but
prior to the date of membership.
| ||
(b) Any employee who had been previously excluded from | ||
membership
because of age at entry and subsequently became | ||
eligible may elect to
make contributions as required in this | ||
Section for the period of service
during which he was | ||
ineligible.
| ||
(c) An employee of the Department of Insurance who, after | ||
January 1,
1944 but prior to becoming eligible for membership, | ||
received salary from
funds of insurance companies in the | ||
process of rehabilitation,
liquidation, conservation or | ||
dissolution, may elect to make
contributions as required in | ||
this Section for such service.
| ||
(d) Any employee who rendered service in a State office to | ||
which he
was elected, or rendered service in the elective | ||
office of Clerk of the
Appellate Court prior to the date he | ||
became a member, may make
contributions for such service as | ||
required in this Section. Any member
who served by appointment | ||
of the Governor under the Civil Administrative
Code of Illinois | ||
and did not participate in this System may make
contributions | ||
as required in this Section for such service.
| ||
(e) Any person employed by the United States government or | ||
any
instrumentality or agency thereof from January 1, 1942 | ||
through November
15, 1946 as the result of a transfer from |
State service by executive
order of the President of the United | ||
States shall be entitled to prior
service credit covering the | ||
period from January 1, 1942 through December
31, 1943 as | ||
provided for in this Article and to membership service
credit | ||
for the period from January 1, 1944 through November 15, 1946 | ||
by
making the contributions required in this Section. A person | ||
so employed
on January 1, 1944 but whose employment began after | ||
January 1, 1942 may
qualify for prior service and membership | ||
service credit under the same
conditions.
| ||
(f) An employee of the Department of Labor of the State of | ||
Illinois who
performed services for and under the supervision | ||
of that Department
prior to January 1, 1944 but who was | ||
compensated for those services
directly by federal funds and | ||
not by a warrant of the Auditor of Public
Accounts paid by the | ||
State Treasurer may establish credit for such
employment by | ||
making the contributions required in this Section. An
employee | ||
of the Department of Agriculture of the State of Illinois, who
| ||
performed services for and under the supervision of that | ||
Department
prior to June 1, 1963, but was compensated for those | ||
services directly
by federal funds and not paid by a warrant of | ||
the Auditor of Public
Accounts paid by the State Treasurer, and | ||
who did not contribute to any
other public employee retirement | ||
system for such service, may establish
credit for such | ||
employment by making the contributions required in this
| ||
Section.
| ||
(g) Any employee who executed a waiver of membership within
|
60 days prior to January 1, 1944 may, at any time while in the | ||
service of a
department, file with the board a rescission of | ||
such waiver. Upon
making the contributions required by this | ||
Section, the member shall be
granted the creditable service | ||
that would have been received if the
waiver had not been | ||
executed.
| ||
(h) Until May 1, 1990, an employee who was employed on a | ||
full-time
basis by a regional planning commission for at least | ||
5 continuous years may
establish creditable service for such | ||
employment by making the
contributions required under this | ||
Section, provided that any credits earned
by the employee in | ||
the commission's retirement plan have been terminated.
| ||
(i) Any person who rendered full time contractual services | ||
to the General
Assembly as a member of a legislative staff may | ||
establish service credit for up
to 8 years of such services by | ||
making the contributions required under this
Section, provided | ||
that application therefor is made not later than July 1,
1991.
| ||
(j) By paying the contributions otherwise required under | ||
this Section,
plus an amount determined by the Board to be | ||
equal to the employer's normal
cost of the benefit plus | ||
interest, but with all of the interest calculated
from the date | ||
the employee last became a member of the System or November 19,
| ||
1991, whichever is later, to the date of payment, an employee | ||
may establish
service credit
for a period of up to 4 years | ||
spent in active military service for which he
does not qualify | ||
for credit under Section 14-105, provided that (1) he was
not |
dishonorably discharged from such military service, and (2) the | ||
amount
of service credit established by a member under this | ||
subsection (j), when
added to the amount of military service | ||
credit granted to the member under
subsection (b) of Section | ||
14-105, shall not exceed 5 years. The change
in the manner of | ||
calculating interest under this subsection (j) made by this
| ||
amendatory Act of the 92nd General Assembly applies to credit | ||
purchased by an
employee on or after its effective date and | ||
does not entitle any person to a
refund of contributions or | ||
interest already paid.
In compliance with Section 14-152.1 of | ||
this Act concerning new benefit increases, any new benefit | ||
increase as a result of the changes to this subsection (j) made | ||
by Public Act 95-483
is funded through the employee | ||
contributions provided for in this subsection (j). Any new | ||
benefit increase as a result of the changes made to this | ||
subsection (j) by Public Act 95-483
is exempt from the | ||
provisions of subsection (d) of Section 14-152.1.
| ||
(k) An employee who was employed on a full-time basis by | ||
the Illinois
State's Attorneys Association Statewide Appellate | ||
Assistance Service
LEAA-ILEC grant project prior to the time | ||
that project became the State's
Attorneys Appellate Service | ||
Commission, now the Office of the State's
Attorneys Appellate | ||
Prosecutor, an agency of State government, may
establish | ||
creditable service for not more than 60 months service for
such | ||
employment by making contributions required under this | ||
Section.
|
(l) By paying the contributions otherwise required under | ||
this Section,
plus an amount determined by the Board to be | ||
equal to the employer's normal
cost of the benefit plus | ||
interest, a member may establish service credit
for periods of | ||
less than one year spent on authorized leave of absence from
| ||
service, provided that (1) the period of leave began on or | ||
after January 1,
1982 and (2) any credit established by the | ||
member for the period of leave in
any other public employee | ||
retirement system has been terminated. A member
may establish | ||
service credit under this subsection for more than one period
| ||
of authorized leave, and in that case the total period of | ||
service credit
established by the member under this subsection | ||
may exceed one year. In
determining the contributions required | ||
for establishing service credit under
this subsection, the | ||
interest shall be calculated from the beginning of the
leave of | ||
absence to the date of payment.
| ||
(l-5) By paying the contributions otherwise required under | ||
this Section,
plus an amount determined by the Board to be | ||
equal to the employer's normal
cost of the benefit plus | ||
interest, a member may establish service credit
for periods of | ||
up to 2 years spent on authorized leave of absence from
| ||
service, provided that during that leave the member represented | ||
or was employed as an officer or employee of a statewide labor | ||
organization that represents members of this System. In
| ||
determining the contributions required for establishing | ||
service credit under
this subsection, the interest shall be |
calculated from the beginning of the
leave of absence to the | ||
date of payment.
| ||
(m) Any person who rendered contractual services to a | ||
member of
the General Assembly as a worker in the member's | ||
district office may establish
creditable service for up to 3 | ||
years of those contractual services by making
the contributions | ||
required under this Section. The System shall determine a
| ||
full-time salary equivalent for the purpose of calculating the | ||
required
contribution. To establish credit under this | ||
subsection, the applicant must
apply to the System by March 1, | ||
1998.
| ||
(n) Any person who rendered contractual services to a | ||
member of
the General Assembly as a worker providing | ||
constituent services to persons in
the member's district may | ||
establish
creditable service for up to 8 years of those | ||
contractual services by making
the contributions required | ||
under this Section. The System shall determine a
full-time | ||
salary equivalent for the purpose of calculating the required
| ||
contribution. To establish credit under this subsection, the | ||
applicant must
apply to the System by March 1, 1998.
| ||
(o) A member who participated in the Illinois Legislative | ||
Staff
Internship Program may establish creditable service for | ||
up to one year
of that participation by making the contribution | ||
required under this Section.
The System shall determine a | ||
full-time salary equivalent for the purpose of
calculating the | ||
required contribution. Credit may not be established under
this |
subsection for any period for which service credit is | ||
established under
any other provision of this Code.
| ||
(p) By paying the contributions otherwise required under | ||
this Section,
plus an amount determined by the Board to be | ||
equal to the employer's normal
cost of the benefit plus | ||
interest, a member may establish service credit
for a period of | ||
up to 8 years during which he or she was employed by the
| ||
Visually Handicapped Managers of Illinois in a vending program | ||
operated under
a contractual agreement with the Department of | ||
Rehabilitation Services or its successor agency.
| ||
This subsection (p) applies without regard to whether the | ||
person was in service on or after the effective date of this | ||
amendatory Act of the 94th General Assembly. In the case of a | ||
person who is receiving a retirement annuity on that effective | ||
date, the increase, if any, shall begin to accrue on the first | ||
annuity payment date following receipt by the System of the | ||
contributions required under this subsection (p).
| ||
(q) By paying the required contributions under this | ||
Section, plus an amount determined by the Board to be equal to | ||
the employer's normal cost of the benefit plus interest, an | ||
employee who was laid off but returned to State employment | ||
under circumstances in which the employee is considered to have | ||
been in continuous service for purposes of determining | ||
seniority may establish creditable service for the period of | ||
the layoff, provided that (1) the applicant applies for the | ||
creditable service under this subsection (q) within 6 months |
after the effective date of this amendatory Act of the 94th | ||
General Assembly, (2) the applicant does not receive credit for | ||
that period under any other provision of this Code, (3) at the | ||
time of the layoff, the applicant is not in an initial | ||
probationary status consistent with the rules of the Department | ||
of Central Management Services, and (4) the total amount of | ||
creditable service established by the applicant under this | ||
subsection (q) does not exceed 3 years. For service established | ||
under this subsection (q), the required employee contribution | ||
shall be based on the rate of compensation earned by the | ||
employee on the date of returning to employment after the | ||
layoff and the contribution rate then in effect, and the | ||
required interest shall be calculated from the date of | ||
returning to employment after the layoff to the date of | ||
payment.
| ||
(r) A member who participated in the University of Illinois | ||
Government Public Service Internship Program (GPSI) may | ||
establish creditable service for up to 2 years
of that | ||
participation by making the contribution required under this | ||
Section, plus an amount determined by the Board to be equal to | ||
the employer's normal cost of the benefit plus interest.
The | ||
System shall determine a full-time salary equivalent for the | ||
purpose of
calculating the required contribution. Credit may | ||
not be established under
this subsection for any period for | ||
which service credit is established under
any other provision | ||
of this Code. |
(s)
A member who worked as a nurse under a contractual | ||
agreement for the Department of Public Aid, or its successor | ||
agency, the Department of Human Services, in the Client | ||
Assessment Unit and was subsequently determined to be a State | ||
employee by the United States Internal Revenue Service and the | ||
Illinois Labor Relations Board may establish creditable | ||
service for those contractual services by making the | ||
contributions required under this Section. To establish credit | ||
under this subsection, the applicant must apply to the System | ||
by July 1, 2008. | ||
The Department of Human Services shall pay an employer | ||
contribution based upon an amount determined by the Board to be | ||
equal to the employer's normal cost of the benefit, plus | ||
interest. | ||
In compliance with Section 14-152.1 added by Public Act | ||
94-4, the cost of the benefits provided by Public Act 95-583
| ||
are offset by the required employee and employer contributions.
| ||
(t) Any person who rendered contractual services on a | ||
full-time basis to the Illinois Institute of Natural Resources | ||
and the Illinois Department of Energy and Natural Resources may | ||
establish creditable service for up to 4 years of those | ||
contractual services by making the contributions required | ||
under this Section, plus an amount determined by the Board to | ||
be equal to the employer's normal cost of the benefit plus | ||
interest at the actuarially assumed rate from the first day of | ||
the service for which credit is being established to the date |
of payment. To establish credit under this subsection (t), the | ||
applicant must apply to the System within 6 months after the | ||
effective date of this amendatory Act of the 96th General | ||
Assembly. | ||
(Source: P.A. 94-612, eff. 8-18-05; 94-1111, eff. 2-27-07; | ||
95-483, eff. 8-28-07; 95-583, eff. 8-31-07; 95-652, eff. | ||
10-11-07; 95-876, eff. 8-21-08.)
| ||
Section 90. The State Mandates Act is amended by adding | ||
Section 8.33 as follows: | ||
(30 ILCS 805/8.33 new) | ||
Sec. 8.33. Exempt mandate. Notwithstanding Sections 6 and 8 | ||
of this Act, no reimbursement by the State is required for the | ||
implementation of any mandate created by this amendatory Act of | ||
the 96th General Assembly.
| ||
Section 99. Effective date. This Act takes effect upon | ||
becoming law.
|