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Public Act 097-0272
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| HB3253 Enrolled | LRB097 10456 JDS 50688 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 |
Sections 7-142.1 and 7-145.1 as follows:
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(40 ILCS 5/7-142.1) (from Ch. 108 1/2, par. 7-142.1) |
Sec. 7-142.1. Sheriff's law enforcement employees.
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(a) In lieu of the retirement annuity provided by |
subparagraph 1 of
paragraph (a) of Section 7-142:
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Any sheriff's law enforcement employee who
has 20 or more |
years of service in that capacity and who terminates
service |
prior to January 1, 1988 shall be entitled at his
option to |
receive a monthly retirement annuity for his service as a
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sheriff's law enforcement employee computed by multiplying 2% |
for each year
of such service up to 10 years, 2 1/4% for each |
year
of such service above 10 years and up to 20 years, and
2 |
1/2% for each year of such service above
20 years, by his |
annual final rate of earnings and dividing by 12.
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Any sheriff's law enforcement employee who has 20 or more |
years of
service in that capacity and who terminates service on |
or after January 1,
1988 and before July 1, 2004 shall be |
entitled at his option to receive
a monthly retirement
annuity |
for his service as a sheriff's law enforcement employee |
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computed by
multiplying 2.5% for each year of such service up |
to 20 years, 2% for each
year of such service above 20 years |
and up to 30 years, and 1% for each
year of such service above |
30 years, by his annual final rate of earnings
and dividing by |
12.
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Any sheriff's law enforcement employee who has 20 or more |
years of
service in that capacity and who terminates service on |
or after July 1,
2004 shall be entitled at his or her option to |
receive a monthly retirement
annuity for service as a sheriff's |
law enforcement employee computed by
multiplying 2.5% for each |
year of such service by his annual final rate of
earnings and |
dividing by 12.
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If a sheriff's law enforcement employee has service in any |
other
capacity, his retirement annuity for service as a |
sheriff's law enforcement
employee may be computed under this |
Section and the retirement annuity for
his other service under |
Section 7-142.
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In no case shall the total monthly retirement annuity for |
persons who retire before July 1, 2004 exceed 75% of the
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monthly final rate of earnings. In no case shall the total |
monthly retirement annuity for persons who retire on or after |
July 1, 2004 exceed 80% of the
monthly final rate of earnings.
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(b) Whenever continued group insurance coverage is elected |
in accordance
with the provisions of Section 367h of the |
Illinois Insurance Code, as now
or hereafter amended, the total |
monthly premium for such continued group
insurance coverage or |
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such portion thereof as is not paid
by the municipality shall, |
upon request of the person electing such
continued group |
insurance coverage, be deducted from any monthly pension
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benefit otherwise payable to such person pursuant to this |
Section, to be
remitted by the Fund to the insurance company
or |
other entity providing the group insurance coverage.
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(c) A sheriff's law enforcement employee who began service |
in that capacity prior to the effective date of this amendatory |
Act of the 97th General Assembly and who has service in any |
other
capacity may convert up to 10 years of that service into |
service as a sheriff's
law enforcement employee by paying to |
the Fund an amount equal to (1) the
additional employee |
contribution required under Section 7-173.1, plus (2) the |
additional employer contribution required under Section 7-172, |
plus (3) interest on items (1) and (2) at the
prescribed rate |
from the date of the service to the date of payment.
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(d) The changes to subsections (a) and (b) of this Section |
made by this amendatory Act of the 94th General Assembly apply |
only to persons in service on or after July 1, 2004. In the |
case of such a person who begins to receive a retirement |
annuity before the effective date of this amendatory Act of the |
94th General Assembly, the annuity shall be recalculated |
prospectively to reflect those changes, with the resulting |
increase beginning to accrue on the first annuity payment date |
following the effective date of this amendatory Act.
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(e) Any elected county officer who was entitled to receive |
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a stipend from the State on or after July 1, 2009 and on or |
before June 30, 2010 may establish earnings credit for the |
amount of stipend not received, if the elected county official |
applies in writing to the fund within 6 months after the |
effective date of this amendatory Act of the 96th General |
Assembly and pays to the fund an amount equal to (i) employee |
contributions on the amount of stipend not received, (ii) |
employer contributions determined by the Board equal to the |
employer's normal cost of the benefit on the amount of stipend |
not received, plus (iii) interest on items (i) and (ii) at the |
actuarially assumed rate. |
(f) Notwithstanding any other provision of this Article,
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the provisions of this subsection (f) apply to a person who |
first
becomes a sheriff's law enforcement employee under this |
Article on or after January 1, 2011. |
A sheriff's law enforcement employee age 55 or more who has |
10 or more years of service in that capacity shall be entitled |
at his option to receive a monthly retirement annuity for his |
or her service as a sheriff's law enforcement employee computed |
by multiplying 2.5% for each year of such service by his or her |
final rate of earnings. |
The retirement annuity of a sheriff's law enforcement |
employee who is retiring after attaining age 50 with 10 or more |
years of creditable service shall be reduced by one-half of 1% |
for each month that the sheriff's law enforcement employee's |
age is under age 55. |
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The maximum retirement annuity under this subsection (f) |
shall be 75%
of final rate of earnings. |
For the purposes of this subsection (f), "final rate of |
earnings" means the average monthly earnings obtained by |
dividing the total salary of the sheriff's law enforcement |
employee during the 96 consecutive months of service within the |
last 120 months of service in which the total earnings was the |
highest by the number of months of service in that period. |
Notwithstanding any other provision of this Article, |
beginning on January 1, 2011, for all purposes under this Code |
(including without limitation the calculation of benefits and |
employee contributions), the annual earnings of a sheriff's law |
enforcement employee to whom this Section applies shall not |
include overtime and shall not exceed $106,800; however, that |
amount shall annually thereafter be increased by the lesser of |
(i) 3% of that amount, including all previous adjustments, or |
(ii) one-half the annual unadjusted percentage increase (but |
not less than zero) in the consumer price index-u for the 12 |
months ending with the September preceding each November 1, |
including all previous adjustments. |
(g) Notwithstanding any other provision of this Article, |
the monthly annuity
of a person who first becomes a sheriff's |
law enforcement employee under this Article on or after January |
1, 2011 shall be increased on the January 1 occurring either on |
or after the attainment of age 60 or the first anniversary of |
the annuity start date, whichever is later. Each annual |
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increase shall be calculated at 3% or one-half the annual |
unadjusted percentage increase (but not less than zero) in the |
consumer price index-u for the 12 months ending with the |
September preceding each November 1, whichever is less, of the |
originally granted retirement annuity. If the annual |
unadjusted percentage change in the consumer price index-u for |
a 12-month period ending in September is zero or, when compared |
with the preceding period, decreases, then the annuity shall |
not be increased. |
(h) Notwithstanding any other provision of this Article, |
for a person who first becomes a sheriff's law enforcement |
employee under this Article on or after January 1, 2011, the |
annuity to which the surviving spouse, children, or parents are |
entitled under this subsection (h) shall be in the amount of 66 |
2/3% of the sheriff's law enforcement employee's earned annuity |
at the date of death. |
(i) Notwithstanding any other provision of this Article, |
the monthly annuity
of a survivor of a person who first becomes |
a sheriff's law enforcement employee under this Article on or |
after January 1, 2011 shall be increased on the January 1 after |
attainment of age 60 by the recipient of the survivor's annuity |
and
each January 1 thereafter by 3% or one-half the annual |
unadjusted percentage increase in the consumer price index-u |
for the
12 months ending with the September preceding each |
November 1, whichever is less, of the originally granted |
pension. If the annual unadjusted percentage change in
the |
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consumer price index-u for a 12-month period ending in |
September is zero or, when compared with the preceding period, |
decreases, then the annuity shall not
be increased. |
(j) For the purposes of this Section, "consumer price |
index-u" means the index published by the Bureau of Labor |
Statistics of the United States Department of Labor that |
measures the average change in prices of goods and services |
purchased by all urban consumers, United States city average, |
all items, 1982-84 = 100. The new amount resulting from each |
annual adjustment shall be determined by the Public Pension |
Division of the Department of Insurance and made available to |
the boards of the pension funds. |
(Source: P.A. 96-961, eff. 7-2-10; 96-1495, eff. 1-1-11.)
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(40 ILCS 5/7-145.1) |
Sec. 7-145.1. Alternative annuity for county officers. |
(a) The benefits provided in this Section and Section |
7-145.2 are available
only if, prior to the effective date of |
this amendatory Act of the 97th General Assembly, the county |
board has filed with the Board of the Fund a resolution or
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ordinance expressly consenting to the availability of these |
benefits for its
elected county officers. The county board's |
consent is irrevocable with
respect to persons participating in |
the program, but may be revoked at any time
with respect to |
persons who have not paid an additional optional contribution
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under this Section before the date of revocation. |
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An elected county officer may elect to establish |
alternative credits for
an alternative annuity by electing in |
writing before the effective date of this amendatory Act of the |
97th General Assembly to make additional optional
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contributions in accordance with this Section and procedures |
established
by the board. These alternative credits are |
available only for periods of
service as an elected county |
officer. The elected county officer may
discontinue making the |
additional optional contributions by notifying the
Fund in |
writing in accordance with this Section and procedures |
established
by the board. |
Additional optional contributions for the alternative |
annuity shall
be as follows: |
(1) For service as an elected county officer after the |
option is
elected, an additional contribution of 3% of |
salary shall be contributed
to the Fund on the same basis |
and under the same conditions as contributions
required |
under Section 7-173. |
(2) For service as an elected county officer before the |
option is
elected, an additional contribution of 3% of the |
salary for the applicable
period of service, plus interest |
at the effective rate from the date of
service to the date |
of payment, plus any additional amount required by
the |
county board under paragraph (3). All payments for past |
service must
be paid in full before credit is given. |
(3) With respect to service as an elected county |
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officer before the
option is elected, if payment is made |
after the county board has filed with
the Board of the Fund |
a resolution or ordinance requiring an additional
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contribution under this paragraph, then the contribution |
required under
paragraph (2) shall include an amount to be |
determined by the Fund, equal
to the actuarial present |
value of the additional employer cost that would
otherwise |
result from the alternative credits being established for |
that
service. A county board's resolution or ordinance |
requiring additional
contributions under this paragraph |
(3) is irrevocable. |
No additional optional contributions may be made for any |
period of service
for which credit has been previously |
forfeited by acceptance of a refund,
unless the refund is |
repaid in full with interest at the effective rate from
the |
date of refund to the date of repayment. |
(b) In lieu of the retirement annuity otherwise payable |
under this Article,
an elected county officer who (1) has |
elected to participate in the Fund and
make additional optional |
contributions in accordance with this Section, (2)
has held and |
made additional optional contributions with respect to the same
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elected county office for at least 8 years, and (3) has |
attained
age 55 with at least 8 years of service credit (or has |
attained age 50 with at
least 20 years of service as a |
sheriff's law enforcement employee) may elect
to have his |
retirement annuity computed as follows: 3% of the participant's
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salary for each of the first 8 years
of service credit, plus 4% |
of that salary for each of the next 4 years of
service credit, |
plus 5% of that salary for each year of service credit in
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excess of 12 years, subject to a maximum of 80% of that salary. |
This formula applies only to service in an elected county |
office that the
officer held for at least 8 years, and only to |
service for which additional
optional contributions have been |
paid under this Section. If an elected county
officer qualifies |
to have this formula applied to service in more than one
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elected county office, the qualifying service shall be |
accumulated for purposes
of determining the applicable accrual |
percentages, but the salary used for each
office shall be the |
separate salary calculated for that office, as defined in
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subsection (g). |
To the extent that the elected county officer has service |
credit that does
not qualify for this formula, his retirement |
annuity will first be determined
in accordance with this |
formula with respect to the service to which this
formula |
applies, and then in accordance with the remaining Sections of |
this
Article with respect to the service to which this formula |
does not apply. |
(c) In lieu of the disability benefits otherwise payable |
under this
Article, an elected county officer who (1) has
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elected to participate in the Fund, and (2) has become
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permanently disabled and as a consequence is unable to perform |
the duties
of his office, and (3) was making optional |
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contributions in accordance with
this Section at the time the |
disability was incurred, may elect to receive
a disability |
annuity calculated in accordance with the formula in subsection
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(b). For the purposes of this subsection, an elected county |
officer shall be
considered permanently disabled only if: (i) |
disability occurs while in
service as an elected county officer |
and is of such a nature as to prevent him
from reasonably |
performing the duties of his office at the time; and (ii) the
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board has received a written certification by at least 2 |
licensed physicians
appointed by it stating that the officer is |
disabled and that the disability
is likely to be permanent. |
(d) Refunds of additional optional contributions shall be |
made on the
same basis and under the same conditions as |
provided under Section 7-166,
7-167 and 7-168. Interest shall |
be credited at the effective rate on the
same basis and under |
the same conditions as for other contributions. |
If an elected county officer fails to hold that same |
elected county
office for at least 8 years, he or she shall be |
entitled after leaving office
to receive a refund of the |
additional optional contributions made with respect
to that |
office, plus interest at the effective rate. |
(e) The plan of optional alternative benefits and |
contributions shall be
available to persons who are elected |
county officers and active contributors
to the Fund on or after |
November 15, 1994 and elected to establish alternative credit |
before the effective date of this amendatory Act of the 97th |
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General Assembly. A person who was an elected county
officer |
and an active contributor to the Fund on November 15, 1994 but |
is
no longer an active contributor may apply to make additional |
optional
contributions under this Section at any time within 90 |
days after the
effective date of this amendatory Act of 1997; |
if the person is an annuitant,
the resulting increase in |
annuity shall begin to accrue on the first day of
the month |
following the month in which the required payment is received |
by the
Fund. |
(f) For the purposes of this Section and Section 7-145.2, |
the terms "elected
county officer" and "elected county office" |
include, but are not limited to:
(1) the county clerk, |
recorder, treasurer, coroner, assessor (if elected),
auditor, |
sheriff, and
State's Attorney; members of the county board; and |
the clerk of the circuit
court; and (2) a person who has been |
appointed to fill a vacancy in an
office that is normally |
filled by election on a countywide basis, for the
duration of |
his or her service in that office. The terms "elected county
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officer" and "elected county office" do not include any officer |
or office of
a county that has not consented to the |
availability of benefits under this
Section and Section |
7-145.2. |
(g) For the purposes of this Section and Section 7-145.2, |
the term
"salary" means the final rate of earnings for the |
elected county office held,
calculated in a manner consistent |
with Section 7-116, but for that office
only. If an elected |
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county officer qualifies to have the formula in subsection
(b) |
applied to service in more than one elected county office, a |
separate
salary shall be calculated and applied with respect to |
each such office. |
(h) The changes to this Section made by this amendatory Act |
of the 91st
General Assembly apply to persons who first make an |
additional optional
contribution under this Section on or after |
the effective date of this
amendatory Act. |
(i) Any elected county officer who was entitled to receive |
a stipend from the State on or after July 1, 2009 and on or |
before June 30, 2010 may establish earnings credit for the |
amount of stipend not received, if the elected county official |
applies in writing to the fund within 6 months after the |
effective date of this amendatory Act of the 96th General |
Assembly and pays to the fund an amount equal to (i) employee |
contributions on the amount of stipend not received, (ii) |
employer contributions determined by the Board equal to the |
employer's normal cost of the benefit on the amount of stipend |
not received, plus (iii) interest on items (i) and (ii) at the |
actuarially assumed rate. |
(Source: P.A. 96-961, eff. 7-2-10.)
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Section 90. The State Mandates Act is amended by adding |
Section 8.35 as follows:
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(30 ILCS 805/8.35 new) |