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Public Act 096-1258
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| SB2554 Enrolled | LRB096 15969 AMC 31214 b |
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AN ACT concerning public employee benefits.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Illinois Pension Code is amended by changing |
Section 7-173 as follows:
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(40 ILCS 5/7-173) (from Ch. 108 1/2, par. 7-173)
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Sec. 7-173. Contributions by employees.
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(a) Each participating employee shall make contributions |
to the fund as
follows:
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1. For retirement annuity purposes, normal |
contributions of 3 3/4%
of earnings.
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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
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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.
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3. Survivor contributions, by each participating |
employee, of 3/4%
of each payment of earnings.
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(b) Each employee shall make contributions to the fund for |
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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.
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(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
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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
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provided in the School Code and remitted to the board.
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(d) An employee who has made additional contributions under
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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.
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(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 |
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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
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participation.
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(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
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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.
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(Source: P.A. 87-1265.)
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Section 90. The State Mandates Act is amended by adding |
Section 8.34 as follows:
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(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.
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Section 99. Effective date. This Act takes effect upon |
becoming law.
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