Illinois General Assembly - Full Text of Public Act 096-1258
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Public Act 096-1258


 

Public Act 1258 96TH GENERAL ASSEMBLY

  
  
  

 


 
Public Act 096-1258
 
SB2554 EnrolledLRB096 15969 AMC 31214 b

    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
Section 7-173 as follows:
 
    (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 paid 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. 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.)
 
    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: 7/23/2010