Public Act 096-1084
Public Act 1084 96TH GENERAL ASSEMBLY
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Public Act 096-1084
| | SB3405 Enrolled | LRB096 15967 AMC 31212 b |
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| AN ACT concerning public employee benefits.
| Be it enacted by the People of the State of Illinois,
| represented in the General Assembly:
| Section 5. The Illinois Pension Code is amended by changing | Sections 7-170, 7-171, 7-172, 7-173, and 7-211 as follows:
| (40 ILCS 5/7-170) (from Ch. 108 1/2, par. 7-170)
| Sec. 7-170. Federal Social Security coverage. (a) It is | declared to be the policy and purpose to extend to covered
| employees as defined in Section 7-138, the benefits of the | Federal Old
Age and Survivors Insurance System as authorized by | the Federal Social
Security Act and amendments thereto. To | effect this, the board shall
take such action as may be | required by applicable State and Federal laws
or regulations.
| (b) The board shall execute an agreement with the State | Agency to
secure coverage of covered employees as provided in | paragraph (a) of
this section.
| (c) Each participating municipality and each participating | instrumentality
shall remit payment of contributions for | Social Security purposes on behalf
of covered employees and | covered municipalities and participating
instrumentalities
as | required by applicable State and federal laws and regulations | the board and the State Agency established by the Social
| Security Enabling Act.
|
| (d) Contributions of covered employees to this fund for | Federal
Social Security purposes shall be paid to the State | Agency in such
amounts and at such time as required by | applicable State and federal laws and regulations are | designated by State laws or regulations.
| (e) (Blank) Contributions in behalf of covered | municipalities and
participating instrumentalities for Federal | Social Security purposes and
the required pro rata share of | administrative expenses shall be paid to
the State Agency from | this fund in accordance with applicable State laws
and | regulations.
| (f) The board shall maintain such records and submit such | reports as may
be required by applicable State and Federal laws | or regulations.
| (Source: P.A. 81-793.)
| (40 ILCS 5/7-171) (from Ch. 108 1/2, par. 7-171)
| Sec. 7-171. Finance; taxes.
| (a) Each municipality other than a school district shall
| appropriate an amount sufficient to provide for the current
| municipality contributions required by Section 7-172 of
this | Article, for the fiscal year for which the appropriation is | made
and all amounts due for municipal contributions for | previous years.
Those municipalities which have been assessed | an annual amount to
amortize its unfunded obligation, as | provided in subparagraph 4 5 of
paragraph (a) of Section 7-172 |
| of this Article, shall include in the
appropriation an amount | sufficient to pay the amount assessed. The
appropriation shall | be based upon an estimate of assets available for
municipality | contributions and liabilities therefor for the fiscal year
for | which appropriations are to be made, including funds available | from
levies for this purpose in prior years.
| (b) For the purpose of providing monies for municipality
| contributions, beginning for the year in which a municipality | is
included in this fund:
| (1) A municipality other than a school district may | levy a tax
which shall not exceed the amount appropriated | for municipality contributions.
| (2) A school district may levy a tax in an amount | reasonably calculated
at the time of the levy to provide | for the municipality contributions required
under Section | 7-172 of this Article for the fiscal years for which | revenues
from the levy will be received and all amounts due | for municipal contributions
for previous years. Any levy | adopted before the effective date of this
amendatory Act of | 1995 by a school district shall be considered valid and
| authorized to the extent that the amount was reasonably | calculated at the time
of the levy to provide for the | municipality contributions required under
Section 7-172 | for the fiscal years for which revenues from the levy will | be
received and all amounts due for municipal contributions | for previous years.
In no event shall a budget adopted by a |
| school district limit a levy of that
school district | adopted under this Section.
| (c) Any county which is served by a regional office of | education that
serves 2 or more
counties may include in its
| appropriation an amount sufficient to provide its | proportionate share of the
municipality contributions for that | regional office of education. The tax levy authorized by this | Section may include an amount
necessary to provide monies for | this contribution.
| (d) Any county that is a part of a multiple-county health | department
or consolidated health department which is formed | under "An Act in
relation to the establishment and maintenance | of county and
multiple-county public health departments", | approved July 9, 1943, as
amended, and which is a participating | instrumentality may include in the
county's appropriation an | amount sufficient to provide its proportionate
share of | municipality contributions of the department. The tax levy
| authorized by this Section may include the amount necessary to | provide
monies for this contribution.
| (d-5) A school district participating in a special | education joint
agreement created under Section 10-22.31 of the | School Code that is a
participating instrumentality may include | in the school district's
tax levy under this Section an amount | sufficient to provide its
proportionate share of the | municipality contributions for current and prior
service by | employees of the participating instrumentality created under |
| the
joint agreement.
| (e) Such tax shall be levied and collected in like manner, | with the
general taxes of the municipality and shall be in | addition to all other
taxes which the municipality is now or | may hereafter be authorized to
levy upon all taxable property | therein, and shall be exclusive of and in
addition to the | amount of tax levied for general purposes under Section
8-3-1 | of the "Illinois Municipal Code", approved May 29, 1961, as
| amended, or under any other law or laws which may limit the | amount of
tax which the municipality may levy for general | purposes. The tax may
be levied by the governing body of the | municipality without being
authorized as being additional to | all other taxes by a vote of the
people of the municipality.
| (f) The county clerk of the county in which any such | municipality is
located, in reducing tax levies shall not | consider any such tax as a
part of the general tax levy for | municipality purposes, and shall not
include the same in the | limitation of any other tax rate which may be
extended.
| (g) The amount of the tax to be levied in any year shall, | within the
limits herein prescribed, be determined by the | governing body of the
respective municipality.
| (h) The revenue derived from any such tax levy shall be | used only
for the purposes specified in this Article and, as | collected, shall be
paid to the treasurer of the municipality | levying the tax. Monies
received by a county treasurer for use | in making contributions to a regional
office of education for |
| its
municipality contributions shall be held by him for that | purpose and paid to
the regional office of education in the | same manner as other
monies appropriated for the expense of the | regional office.
| (Source: P.A. 89-329, eff. 8-17-95; 90-448, eff. 8-16-97; | 90-511, eff.
8-22-97; 90-655, eff. 7-30-98.)
| (40 ILCS 5/7-172) (from Ch. 108 1/2, par. 7-172)
| Sec. 7-172. Contributions by participating municipalities | and
participating instrumentalities.
| (a) Each participating municipality and each participating
| instrumentality shall make payment to the fund as follows:
| 1. municipality contributions in an amount determined | by applying
the municipality contribution rate to each | payment of earnings paid to
each of its participating | employees;
| 2. an amount equal to the employee contributions | provided by paragraphs
(a) and (b) of Section 7-173, | whether or not the employee contributions are
withheld as | permitted by that Section;
| 3. all accounts receivable, together with interest | charged thereon,
as provided in Section 7-209;
| 4. if it has no participating employees with current | earnings, an
amount payable which, over a period of 20 | years beginning with the year
following an award of | benefit, will amortize, at the effective rate for
that |
| year, any negative balance in its municipality reserve | resulting
from the award. This amount when established will | be payable as a
separate contribution whether or not it | later has participating employees.
| (b) A separate municipality contribution rate shall be | determined
for each calendar year for all participating | municipalities together
with all instrumentalities thereof. | The municipality contribution rate
shall be determined for | participating instrumentalities as if they were
participating | municipalities. The municipality contribution rate shall
be | the sum of the following percentages:
| 1. The percentage of earnings of all the participating | employees of all
participating municipalities and | participating instrumentalities which, if paid
over the | entire period of their service, will be sufficient when | combined with
all employee contributions available for the | payment of benefits, to provide
all annuities for | participating employees, and the $3,000 death benefit
| payable under Sections 7-158 and 7-164, such percentage to | be known as the
normal cost rate.
| 2. The percentage of earnings of the participating | employees of each
participating municipality and | participating instrumentalities necessary
to adjust for | the difference between the present value of all benefits,
| excluding temporary and total and permanent disability and | death benefits, to
be provided for its participating |
| employees and the sum of its accumulated
municipality | contributions and the accumulated employee contributions | and the
present value of expected future employee and | municipality contributions
pursuant to subparagraph 1 of | this paragraph (b). This adjustment shall be
spread over | the remainder of the period that is allowable under | generally
accepted accounting principles.
| 3. The percentage of earnings of the participating | employees of all
municipalities and participating | instrumentalities necessary to provide
the present value | of all temporary and total and permanent disability
| benefits granted during the most recent year for which | information is
available.
| 4. The percentage of earnings of the participating | employees of all
participating municipalities and | participating instrumentalities
necessary to provide the | present value of the net single sum death
benefits expected | to become payable from the reserve established under
| Section 7-206 during the year for which this rate is fixed.
| 5. The percentage of earnings necessary to meet any | deficiency
arising in the Terminated Municipality Reserve.
| (c) A separate municipality contribution rate shall be | computed for
each participating municipality or participating | instrumentality
for its sheriff's law enforcement employees.
| A separate municipality contribution rate shall be | computed for the
sheriff's law enforcement employees of each |
| forest preserve district that
elects to have such employees. | For the period from January 1, 1986 to
December 31, 1986, such | rate shall be the forest preserve district's regular
rate plus | 2%.
| In the event that the Board determines that there is an | actuarial
deficiency in the account of any municipality with | respect to a person who
has elected to participate in the Fund | under Section 3-109.1 of this Code,
the Board may adjust the | municipality's contribution rate so as to make up
that | deficiency over such reasonable period of time as the Board may | determine.
| (d) The Board may establish a separate municipality | contribution
rate for all employees who are program | participants employed under the
federal Comprehensive | Employment Training Act by all of the
participating | municipalities and instrumentalities. The Board may also
| provide that, in lieu of a separate municipality rate for these
| employees, a portion of the municipality contributions for such | program
participants shall be refunded or an extra charge | assessed so that the
amount of municipality contributions | retained or received by the fund
for all CETA program | participants shall be an amount equal to that which
would be | provided by the separate municipality contribution rate for all
| such program participants. Refunds shall be made to prime | sponsors of
programs upon submission of a claim therefor and | extra charges shall be
assessed to participating |
| municipalities and instrumentalities. In
establishing the | municipality contribution rate as provided in paragraph
(b) of | this Section, the use of a separate municipality contribution
| rate for program participants or the refund of a portion of the
| municipality contributions, as the case may be, may be | considered.
| (e) Computations of municipality contribution rates for | the
following calendar year shall be made prior to the | beginning of each
year, from the information available at the | time the computations are
made, and on the assumption that the | employees in each participating
municipality or participating | instrumentality at such time will continue
in service until the | end of such calendar year at their respective rates
of earnings | at such time.
| (f) Any municipality which is the recipient of State | allocations
representing that municipality's contributions for | retirement annuity
purposes on behalf of its employees as | provided in Section 12-21.16 of
the Illinois Public Aid Code | shall pay the allocations so
received to the Board for such | purpose. Estimates of State allocations to
be received during | any taxable year shall be considered in the
determination of | the municipality's tax rate for that year under Section
7-171. | If a special tax is levied under Section 7-171, none of the
| proceeds may be used to reimburse the municipality for the | amount of State
allocations received and paid to the Board. Any | multiple-county or
consolidated health department which |
| receives contributions from a county
under Section 11.2 of "An | Act in relation to establishment and maintenance
of county and | multiple-county health departments", approved July 9, 1943,
as | amended, or distributions under Section 3 of the Department of | Public
Health Act, shall use these only for municipality | contributions by the
health department.
| (g) Municipality contributions for the several purposes | specified
shall, for township treasurers and employees in the | offices of the
township treasurers who meet the qualifying | conditions for coverage
hereunder, be allocated among the | several school districts and parts of
school districts serviced | by such treasurers and employees in the
proportion which the | amount of school funds of each district or part of
a district | handled by the treasurer bears to the total amount of all
| school funds handled by the treasurer.
| From the funds subject to allocation among districts and | parts of
districts pursuant to the School Code, the trustees | shall withhold the
proportionate share of the liability for | municipality contributions imposed
upon such districts by this | Section, in respect to such township treasurers
and employees | and remit the same to the Board.
| The municipality contribution rate for an educational | service center shall
initially be the same rate for each year | as the regional office of
education or school district
which | serves as its administrative agent. When actuarial data become
| available, a separate rate shall be established as provided in |
| subparagraph
(i) of this Section.
| The municipality contribution rate for a public agency, | other than a
vocational education cooperative, formed under the | Intergovernmental
Cooperation Act shall initially be the | average rate for the municipalities
which are parties to the | intergovernmental agreement. When actuarial data
become | available, a separate rate shall be established as provided in
| subparagraph (i) of this Section.
| (h) Each participating municipality and participating
| instrumentality shall make the contributions in the amounts | provided in
this Section in the manner prescribed from time to | time by the Board and
all such contributions shall be | obligations of the respective
participating municipalities and | participating instrumentalities to this
fund. The failure to | deduct any employee contributions shall not
relieve the | participating municipality or participating instrumentality
of | its obligation to this fund. Delinquent payments of | contributions
due under this Section may, with interest, be | recovered by civil action
against the participating | municipalities or participating
instrumentalities. | Municipality contributions, other than the amount
necessary | for employee contributions and Social Security contributions, | for
periods of service by employees from whose earnings no | deductions were made
for employee contributions to the fund, | may be charged to the municipality
reserve for the municipality | or participating instrumentality.
|
| (i) Contributions by participating instrumentalities shall | be
determined as provided herein except that the percentage | derived under
subparagraph 2 of paragraph (b) of this Section, | and the amount payable
under subparagraph 4 5 of paragraph (a) | of this Section, shall be based on
an amortization period of 10 | years.
| (j) Notwithstanding the other provisions of this Section, | the additional unfunded liability accruing as a result of this | amendatory Act of the 94th General Assembly
shall be amortized | over a period of 30 years beginning on January 1 of the
second | calendar year following the calendar year in which this | amendatory Act takes effect, except that the employer may | provide for a longer amortization period by adopting a | resolution or ordinance specifying a 35-year or 40-year period | and submitting a certified copy of the ordinance or resolution | to the fund no later than June 1 of the calendar year following | the calendar year in which this amendatory Act takes effect.
| (Source: P.A. 94-712, eff. 6-1-06.)
| (40 ILCS 5/7-173) (from Ch. 108 1/2, par. 7-173)
| Sec. 7-173. Contributions by employees.
| (a) Each participating employee shall make contributions | to the fund as
follows:
| 1. For retirement annuity purposes, normal | contributions of 3 3/4%
of earnings.
| 2. Additional contributions of such percentages of |
| each payment of
earnings, as shall be elected by the | employee for retirement annuity
purposes, but not in excess | of 10%. The selected rate shall be
applicable to all | earnings beginning on the first day of the second
month | following receipt by the Board of written notice of | election to
make such contributions. Additional | contributions at the selected rate
shall be made | concurrently with normal contributions.
| 3. Survivor contributions, by each participating | employee, of 3/4%
of each payment of earnings.
| (b) Each employee shall make contributions to the fund for | Federal
Social Security taxes, for periods during which he is a | covered
employee, as required by the Social Security Enabling | Act and State and federal law. For
participating employees, | such contributions shall be in addition to
those required under | paragraph (a) of this Section.
| (c) Contributions shall be deducted from each | corresponding payment
of earnings paid to each employee and | shall be remitted to the board by
the participating | municipality or participating instrumentality making
such | payment. The remittance, together with a report of the earnings
| and contributions shall be made as directed by the board. For | township
treasurers and employees of township treasurers | qualifying as employees
hereunder, the contributions herein | required as deductions from salary
shall be withheld by the | school township trustees from funds available
for the payment |
| of the compensation of such treasurers and employees as
| provided in the School Code and remitted to the board.
| (d) An employee who has made additional contributions under
| paragraph (a)2 of this Section may upon retirement or at any | time prior
thereto, elect to withdraw the total of such | additional contributions
including interest credited thereon | to the end of the preceding calendar
year.
| (e) Failure to make the deductions for employee | contributions
provided in paragraph (c) of this Section shall | not relieve the employee
from liability for such contributions. | The amount of such liability may
be deducted, with interest | charged under Section 7-209, from any
annuities or benefits | payable hereunder to the employee or any other
person receiving | an annuity or benefit by reason of such employee's
| participation.
| (f) A participating employee who has at least 40 years of | creditable
service in the Fund may elect to cease making the | contributions required
under this Section. The status of the | employee under this Article shall be
unaffected by this | election, except that the employee shall not receive any
| additional creditable service for the periods of employment | following the
election. An election under this subsection | relieves the employer from
making additional employer | contributions in relation to that employee.
| (Source: P.A. 87-1265.)
|
| (40 ILCS 5/7-211) (from Ch. 108 1/2, par. 7-211)
| Sec. 7-211. Authorizations.
| (a) Each participating municipality and instrumentality | thereof and
each participating instrumentality shall:
| 1. Deduct all normal and additional contributions and | contributions
for federal Social Security taxes as | required by the Social Security
Enabling Act from each | payment of earnings payable to each participating
employee | who is entitled to any earnings from such municipality or
| instrumentality thereof or participating instrumentality, | and remit
all normal and additional such contributions | immediately to the board; and
| 2. Pay to the board contributions required by this | Article.
| (b) Each participating employee shall, by virtue of the | payment of
contributions to this fund, receive a vested | interest in the annuities
and benefits provided in this Article | and in consideration of such vested
interest shall be deemed to | have agreed and authorized the deduction from
earnings of all | contributions payable to this fund in accordance with this
| Article.
| (c) Payment of earnings less the amounts of contributions | provided in
this Article and in the Social Security Enabling | Act shall be a full
and complete discharge of all claims for | payment for services rendered
by any employee during the period | covered by any such payment.
|
| (d) Any covered annuitant may authorize the withholding of | all or a portion
of his or her annuity, for the payment of | premiums on group accident and health
insurance provided | pursuant to Section 7-199.1. The annuitant may revoke
this | authorization at any time.
| (Source: P.A. 91-887, eff. 7-6-00.)
| Section 90. The State Mandates Act is amended by adding | Section 8.34 as follows:
| (30 ILCS 805/8.34 new) | Sec. 8.34. 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.
|
Effective Date: 7/16/2010
|
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