HB0166 EngrossedLRB100 02316 RPS 12321 b

1    AN ACT concerning public employee benefits.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Pension Code is amended by changing
5Sections 1-160, 8-174, 11-170, and 11-197.7 as follows:
 
6    (40 ILCS 5/1-160)
7    Sec. 1-160. Provisions applicable to new hires.
8    (a) The provisions of this Section apply to a person who,
9on or after January 1, 2011, first becomes a member or a
10participant under any reciprocal retirement system or pension
11fund established under this Code, other than a retirement
12system or pension fund established under Article 2, 3, 4, 5, 6,
1315 or 18 of this Code, notwithstanding any other provision of
14this Code to the contrary, but do not apply to any self-managed
15plan established under this Code, to any person with respect to
16service as a sheriff's law enforcement employee under Article
177, or to any participant of the retirement plan established
18under Section 22-101. Notwithstanding anything to the contrary
19in this Section, for purposes of this Section, a person who
20participated in a retirement system under Article 15 prior to
21January 1, 2011 shall be deemed a person who first became a
22member or participant prior to January 1, 2011 under any
23retirement system or pension fund subject to this Section. The

 

 

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1changes made to this Section by Public Act 98-596 are a
2clarification of existing law and are intended to be
3retroactive to January 1, 2011 (the effective date of Public
4Act 96-889), notwithstanding the provisions of Section 1-103.1
5of this Code.
6    This Section does not apply to a person who first becomes a
7noncovered employee under Article 14 on or after the
8implementation date of the plan created under Section 1-161 for
9that Article, unless that person elects under subsection (b) of
10Section 1-161 to instead receive the benefits provided under
11this Section and the applicable provisions of that Article.
12    This Section does not apply to a person who first becomes a
13member or participant under Article 16 on or after the
14implementation date of the plan created under Section 1-161 for
15that Article, unless that person elects under subsection (b) of
16Section 1-161 to instead receive the benefits provided under
17this Section and the applicable provisions of that Article.
18    This Section does not apply to a person who elects under
19subsection (c-5) of Section 1-161 to receive the benefits under
20Section 1-161.
21    This Section does not apply to a person who first becomes a
22member or participant of an affected pension fund on or after 6
23months after the resolution or ordinance date, as defined in
24Section 1-162, unless that person elects under subsection (c)
25of Section 1-162 to receive the benefits provided under this
26Section and the applicable provisions of the Article under

 

 

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1which he or she is a member or participant.
2    (b) "Final average salary" means the average monthly (or
3annual) salary obtained by dividing the total salary or
4earnings calculated under the Article applicable to the member
5or participant during the 96 consecutive months (or 8
6consecutive years) of service within the last 120 months (or 10
7years) of service in which the total salary or earnings
8calculated under the applicable Article was the highest by the
9number of months (or years) of service in that period. For the
10purposes of a person who first becomes a member or participant
11of any retirement system or pension fund to which this Section
12applies on or after January 1, 2011, in this Code, "final
13average salary" shall be substituted for the following:
14        (1) In Article 7 (except for service as sheriff's law
15    enforcement employees), "final rate of earnings".
16        (2) In Articles 8, 9, 10, 11, and 12, "highest average
17    annual salary for any 4 consecutive years within the last
18    10 years of service immediately preceding the date of
19    withdrawal".
20        (3) In Article 13, "average final salary".
21        (4) In Article 14, "final average compensation".
22        (5) In Article 17, "average salary".
23        (6) In Section 22-207, "wages or salary received by him
24    at the date of retirement or discharge".
25    (b-5) Beginning on January 1, 2011, for all purposes under
26this Code (including without limitation the calculation of

 

 

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1benefits and employee contributions), the annual earnings,
2salary, or wages (based on the plan year) of a member or
3participant to whom this Section applies shall not exceed
4$106,800; however, that amount shall annually thereafter be
5increased by the lesser of (i) 3% of that amount, including all
6previous adjustments, or (ii) one-half the annual unadjusted
7percentage increase (but not less than zero) in the consumer
8price index-u for the 12 months ending with the September
9preceding each November 1, including all previous adjustments.
10    For the purposes of this Section, "consumer price index-u"
11means the index published by the Bureau of Labor Statistics of
12the United States Department of Labor that measures the average
13change in prices of goods and services purchased by all urban
14consumers, United States city average, all items, 1982-84 =
15100. The new amount resulting from each annual adjustment shall
16be determined by the Public Pension Division of the Department
17of Insurance and made available to the boards of the retirement
18systems and pension funds by November 1 of each year.
19    (c) A member or participant is entitled to a retirement
20annuity upon written application if he or she has attained age
2167 (beginning January 1, 2015, age 65 with respect to service
22under Article 12 of this Code that is subject to this Section)
23and has at least 10 years of service credit and is otherwise
24eligible under the requirements of the applicable Article.
25    A member or participant who has attained age 62 (beginning
26January 1, 2015, age 60 with respect to service under Article

 

 

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112 of this Code that is subject to this Section) and has at
2least 10 years of service credit and is otherwise eligible
3under the requirements of the applicable Article may elect to
4receive the lower retirement annuity provided in subsection (d)
5of this Section.
6    (c-5) A person who first becomes a member or a participant
7subject to this Section under Article 8 or Article 11 of this
8Code on or after July 6, 2017 (the effective date of Public Act
9100-23) this amendatory Act of the 100th General Assembly,
10notwithstanding any other provision of this Code to the
11contrary, is entitled to a retirement annuity under Article 8
12or Article 11 upon written application if he or she has
13attained age 65 and has at least 10 years of service credit
14under Article 8 or Article 11 of this Code and is otherwise
15eligible under the requirements of Article 8 or Article 11 of
16this Code, whichever is applicable.
17    (d) The retirement annuity of a member or participant who
18is retiring after attaining age 62 (beginning January 1, 2015,
19age 60 with respect to service under Article 12 of this Code
20that is subject to this Section) with at least 10 years of
21service credit shall be reduced by one-half of 1% for each full
22month that the member's age is under age 67 (beginning January
231, 2015, age 65 with respect to service under Article 12 of
24this Code that is subject to this Section).
25    (d-5) The retirement annuity payable under Article 8 or
26Article 11 to an eligible of a person subject to subsection

 

 

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1(c-5) of this Section who first becomes a member or a
2participant under Article 8 or Article 11 of this Code on or
3after the effective date of this amendatory Act of the 100th
4General Assembly who is retiring at age 60 with at least 10
5years of service credit under Article 8 or Article 11 shall be
6reduced by one-half of 1% for each full month that the member's
7age is under age 65.
8    (d-10) Each person who first became a member or participant
9under Article 8 or Article 11 of this Code on or after January
101, 2011 and prior to the effective date of this amendatory Act
11of the 100th General Assembly shall make an irrevocable
12election either:
13        (i) to be eligible for the reduced retirement age
14    provided in subsections (c-5) and (d-5) of this Section,
15    the eligibility for which is conditioned upon the member or
16    participant agreeing to the increases in employee
17    contributions for age and service annuities provided in
18    subsection (a-5) of Section 8-174 of this Code (for service
19    under Article 8) or subsection (a-5) of Section 11-170 of
20    this Code (for service under Article 11); or
21        (ii) to not agree to item (i) of this subsection
22    (d-10), in which case the member or participant shall
23    continue to be subject to the retirement age provisions in
24    subsections (c) and (d) of this Section and the employee
25    contributions for age and service annuity as provided in
26    subsection (a) of Section 8-174 of this Code (for service

 

 

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1    under Article 8) or subsection (a) of Section 11-170 of
2    this Code (for service under Article 11).
3    The election provided for in this subsection shall be made
4between October 1, 2017 and November 15, 2017. A person subject
5to this subsection who makes the required election shall remain
6bound by that election. A person subject to this subsection who
7fails for any reason to make the required election within the
8time specified in this subsection shall be deemed to have made
9the election under item (ii).
10    (e) Any retirement annuity or supplemental annuity shall be
11subject to annual increases on the January 1 occurring either
12on or after the attainment of age 67 (beginning January 1,
132015, age 65 with respect to service under Article 12 of this
14Code that is subject to this Section and beginning on the
15effective date of this amendatory Act of the 100th General
16Assembly, age 65 with respect to service under Article 8 or
17Article 11 for eligible persons who: (i) are subject to
18subsection (c-5) of this Section first became members or
19participants under Article 8 or Article 11 of this Code on or
20after the effective date of this amendatory Act of the 100th
21General Assembly; or (ii) first became members or participants
22under Article 8 or Article 11 of this Code on or after January
231, 2011 and before the effective date of this amendatory Act of
24the 100th General Assembly and made the election under item (i)
25of subsection (d-10) of this Section) or the first anniversary
26of the annuity start date, whichever is later. Each annual

 

 

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1increase shall be calculated at 3% or one-half the annual
2unadjusted percentage increase (but not less than zero) in the
3consumer price index-u for the 12 months ending with the
4September preceding each November 1, whichever is less, of the
5originally granted retirement annuity. If the annual
6unadjusted percentage change in the consumer price index-u for
7the 12 months ending with the September preceding each November
81 is zero or there is a decrease, then the annuity shall not be
9increased.
10    For the purposes of Section 1-103.1 of this Code, the
11changes made to this Section by this amendatory Act of the
12100th General Assembly are applicable without regard to whether
13the employee was in active service on or after the effective
14date of this amendatory Act of the 100th General Assembly.
15    (f) The initial survivor's or widow's annuity of an
16otherwise eligible survivor or widow of a retired member or
17participant who first became a member or participant on or
18after January 1, 2011 shall be in the amount of 66 2/3% of the
19retired member's or participant's retirement annuity at the
20date of death. In the case of the death of a member or
21participant who has not retired and who first became a member
22or participant on or after January 1, 2011, eligibility for a
23survivor's or widow's annuity shall be determined by the
24applicable Article of this Code. The initial benefit shall be
2566 2/3% of the earned annuity without a reduction due to age. A
26child's annuity of an otherwise eligible child shall be in the

 

 

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1amount prescribed under each Article if applicable. Any
2survivor's or widow's annuity shall be increased (1) on each
3January 1 occurring on or after the commencement of the annuity
4if the deceased member died while receiving a retirement
5annuity or (2) in other cases, on each January 1 occurring
6after the first anniversary of the commencement of the annuity.
7Each annual increase shall be calculated at 3% or one-half the
8annual unadjusted percentage increase (but not less than zero)
9in the consumer price index-u for the 12 months ending with the
10September preceding each November 1, whichever is less, of the
11originally granted survivor's annuity. If the annual
12unadjusted percentage change in the consumer price index-u for
13the 12 months ending with the September preceding each November
141 is zero or there is a decrease, then the annuity shall not be
15increased.
16    (g) The benefits in Section 14-110 apply only if the person
17is a State policeman, a fire fighter in the fire protection
18service of a department, a security employee of the Department
19of Corrections or the Department of Juvenile Justice, or a
20security employee of the Department of Innovation and
21Technology, as those terms are defined in subsection (b) and
22subsection (c) of Section 14-110. A person who meets the
23requirements of this Section is entitled to an annuity
24calculated under the provisions of Section 14-110, in lieu of
25the regular or minimum retirement annuity, only if the person
26has withdrawn from service with not less than 20 years of

 

 

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1eligible creditable service and has attained age 60, regardless
2of whether the attainment of age 60 occurs while the person is
3still in service.
4    (h) If a person who first becomes a member or a participant
5of a retirement system or pension fund subject to this Section
6on or after January 1, 2011 is receiving a retirement annuity
7or retirement pension under that system or fund and becomes a
8member or participant under any other system or fund created by
9this Code and is employed on a full-time basis, except for
10those members or participants exempted from the provisions of
11this Section under subsection (a) of this Section, then the
12person's retirement annuity or retirement pension under that
13system or fund shall be suspended during that employment. Upon
14termination of that employment, the person's retirement
15annuity or retirement pension payments shall resume and be
16recalculated if recalculation is provided for under the
17applicable Article of this Code.
18    If a person who first becomes a member of a retirement
19system or pension fund subject to this Section on or after
20January 1, 2012 and is receiving a retirement annuity or
21retirement pension under that system or fund and accepts on a
22contractual basis a position to provide services to a
23governmental entity from which he or she has retired, then that
24person's annuity or retirement pension earned as an active
25employee of the employer shall be suspended during that
26contractual service. A person receiving an annuity or

 

 

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1retirement pension under this Code shall notify the pension
2fund or retirement system from which he or she is receiving an
3annuity or retirement pension, as well as his or her
4contractual employer, of his or her retirement status before
5accepting contractual employment. A person who fails to submit
6such notification shall be guilty of a Class A misdemeanor and
7required to pay a fine of $1,000. Upon termination of that
8contractual employment, the person's retirement annuity or
9retirement pension payments shall resume and, if appropriate,
10be recalculated under the applicable provisions of this Code.
11    (i) (Blank).
12    (j) In the case of a conflict between the provisions of
13this Section and any other provision of this Code, the
14provisions of this Section shall control.
15(Source: P.A. 100-23, eff. 7-6-17; 100-201, eff. 8-18-17;
16100-563, eff. 12-8-17; 100-611, eff. 7-20-18.)
 
17    (40 ILCS 5/8-174)   (from Ch. 108 1/2, par. 8-174)
18    Sec. 8-174. Contributions for age and service annuities for
19present employees and future entrants.
20    (a) Beginning on the effective date and prior to July 1,
211947, 3 1/4%; and beginning on July 1, 1947 and prior to July
221, 1953, 5%; and beginning July 1, 1953, and prior to January
231, 1972, 6%; and beginning January 1, 1972, 6-1/2% of each
24payment of the salary of each present employee and future
25entrant, except as provided in subsection (a-5) and (a-10),

 

 

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1shall be contributed to the fund as a deduction from salary for
2age and service annuity.
3    (a-5) Except as provided in subsection (a-10), for an
4employee who on or after January 1, 2011 and prior to the
5effective date of this amendatory Act of the 100th General
6Assembly first became a member or participant under this
7Article and made the election under item (i) of subsection
8(d-10) of Section 1-160: prior to the effective date of this
9amendatory Act of the 100th General Assembly, 6.5%; and
10beginning on the effective date of this amendatory Act of the
11100th General Assembly and prior to January 1, 2018, 7.5%; and
12beginning January 1, 2018 and prior to January 1, 2019, 8.5%;
13and beginning January 1, 2019 and thereafter, employee
14contributions for those employees who made the election under
15item (i) of subsection (d-10) of Section 1-160 shall be the
16lesser of: (i) the total normal cost, calculated using the
17entry age normal actuarial method, projected for the prior that
18fiscal year for the benefits and expenses of the plan of
19benefits applicable to those members and participants who first
20became members or participants on or after the effective date
21of this amendatory Act of the 100th General Assembly and to
22those employees who made the election under item (i) of
23subsection (d-10) of Section 1-160, but not less than 6.5% of
24each payment of salary combined with the employee contributions
25provided for in subsection (b) of Section 8-137 and Section
268-182 of this Article; or (ii) the aggregate employee

 

 

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1contribution consisting of 9.5% of each payment of salary
2combined with the employee contributions provided for in
3subsection (b) of Section 8-137 and 8-182 of this Article.
4    For the one-year period beginning Beginning with the first
5pay period in January of each year on or after the date when
6the funded ratio of the fund as determined in the annual
7actuarial valuation is first determined to have reached the 90%
8funding goal, and each subsequent one-year pay period
9thereafter for as long as the fund maintains a funding ratio of
1075% or more, employee contributions for age and service annuity
11for those employees who made the election under item (i) of
12subsection (d-10) of Section 1-160 shall be 5.5% of each
13payment of salary. If the funding ratio falls below 75%, then
14employee contributions for age and service annuity for those
15employees who made the election under item (i) of subsection
16(d-10) shall revert to the lesser of: (A) the total normal
17cost, calculated using the entry age normal actuarial method,
18projected for the prior that fiscal year for the benefits and
19expenses of the plan of benefits applicable to those members
20and participants who first became members or participants on or
21after the effective date of this amendatory Act of the 100th
22General Assembly and to those employees who made the election
23under item (i) of subsection (d-10) of Section 1-160, but not
24less than 6.5% of each payment of salary combined with the
25employee contributions provided for in subsection (b) of
26Section 8-137 and Section 8-182 of this Article; or (B) the

 

 

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1aggregate employee contribution consisting of 9.5% of each
2payment of salary combined with the employee contributions
3provided for in subsection (b) of Section 8-137 and 8-182 of
4this Article. If the fund once again is determined to have
5reached a funding ratio of 75%, the 5.5% of salary contribution
6for age and service annuity shall resume. An employee who made
7the election under item (ii) of subsection (d-10) of Section
81-160 shall continue to have the contributions for age and
9service annuity determined under subsection (a) of this
10Section.
11    If contributions are reduced to less than the aggregate
12employee contribution described in item (ii) or item (B) of
13this subsection due to application of the normal cost
14criterion, the employee contribution amount shall be
15consistent for from July 1 of the fiscal year through June 30
16of that fiscal year.
17    The normal cost, for the purposes of this subsection (a-5)
18and subsection (a-10), shall be calculated by an independent
19enrolled actuary mutually agreed upon by the fund and the City.
20The fees and expenses of the independent actuary shall be the
21responsibility of the City. For purposes of this subsection
22(a-5), the fund and the City shall both be considered to be the
23clients of the actuary, and the actuary shall utilize
24participant data and actuarial standards to calculate the
25normal cost. The fund shall provide information that the
26actuary requests in order to calculate the applicable normal

 

 

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1cost.
2    (a-10) For each employee subject to subsection (c-5) of
3Section 1-160 who on or after the effective date of this
4amendatory Act of the 100th General Assembly first becomes a
5member or participant under this Article, 9.5% of each payment
6of salary shall be contributed to the fund as a deduction from
7salary for age and service annuity. Beginning January 1, 2018
8and each year thereafter, employee contributions for each
9employee subject to this subsection (a-10) shall be the lesser
10of: (i) the total normal cost, calculated using the entry age
11normal actuarial method, projected for the prior that fiscal
12year for the benefits and expenses of the plan of benefits
13applicable to those members and participants who first become
14members or participants on or after the effective date of this
15amendatory Act of the 100th General Assembly and to those
16employees who made the election under item (i) of subsection
17(d-10) of Section 1-160, but not less than 6.5% of each payment
18of salary combined with the employee contributions provided for
19in subsection (b) of Section 8-137 and Section 8-182 of this
20Article; or (ii) the aggregate employee contribution
21consisting of 9.5% of each payment of salary combined with the
22employee contributions provided for in subsection (b) of
23Section 8-137 and Section 8-182 of this Article.
24    For the one-year period beginning Beginning with the first
25pay period in January of each year on or after the date when
26the funded ratio of the fund as determined in the annual

 

 

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1actuarial valuation is first determined to have reached the 90%
2funding goal, and each subsequent one-year pay period
3thereafter for as long as the fund maintains a funding ratio of
475% or more, employee contributions for age and service annuity
5for each employee subject to this subsection (a-10) shall be
65.5% of each payment of salary. If the funding ratio falls
7below 75%, then employee contributions for age and service
8annuity for each employee subject to this subsection (a-10)
9shall revert to the lesser of: (A) the total normal cost,
10calculated using the entry age normal actuarial method,
11projected for the prior that fiscal year for the benefits and
12expenses of the plan of benefits applicable to those members
13and participants who first become members or participants on or
14after the effective date of this amendatory Act of the 100th
15General Assembly and to those employees who made the election
16under item (i) of subsection (d-10) of Section 1-160, but not
17less than 6.5% of each payment of salary combined with the
18employee contributions provided for in subsection (b) of
19Section 8-137 and Section 8-182 of this Article; or (B) the
20aggregate employee contribution consisting of 9.5% of each
21payment of salary combined with the employee contributions
22provided for in subsection (b) of Section 8-137 and Section
238-182 of this Article. If the fund once again is determined to
24have reached a funding ratio of 75%, the 5.5% of salary
25contribution for age and service annuity shall resume.
26    If contributions are reduced to less than the aggregate

 

 

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1employee contribution described in item (ii) or item (B) of
2this subsection (a-10) due to application of the normal cost
3criterion, the employee contribution amount shall be
4consistent for from July 1 of the fiscal year through June 30
5of that fiscal year.
6    Such deductions beginning on the effective date and prior
7to July 1, 1947 shall be made for a future entrant while he is
8in the service until he attains age 65 and for a present
9employee while he is in the service until the amount so
10deducted from his salary with the amount deducted from his
11salary or paid by him according to law to any municipal pension
12fund in force on the effective date with interest on both such
13amounts at 4% per annum equals the sum that would have been to
14his credit from sums deducted from his salary if deductions at
15the rate herein stated had been made during his entire service
16until he attained age 65 with interest at 4% per annum for the
17period subsequent to his attainment of age 65. Such deductions
18beginning July 1, 1947 shall be made and continued for
19employees while in the service.
20    (b) Concurrently with each employee contribution, the city
21shall contribute beginning on the effective date and prior to
22July 1, 1947, 5 3/4%; and beginning July 1, 1947 and prior to
23July 1, 1953, 7%; and beginning July 1, 1953 and prior to July
246, 2017, 6% of each payment of such salary until the employee
25attains age 65. Beginning July 6, 2017, the Fund shall credit
26sums equal to 6% of each payment of such salary for annuity

 

 

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1purposes. The amounts credited for annuity purposes shall not
2be credited for refund purposes (Blank).
3    (c) Each employee contribution made prior to the date the
4age and service annuity for an employee is fixed and each
5corresponding city contribution shall be credited to the
6employee and allocated to the account of the employee for whose
7benefit it is made.
8    (d) Notwithstanding Section 1-103.1, the changes to this
9Section made by this amendatory Act of the 100th General
10Assembly apply regardless of whether the employee was in active
11service on or after the effective date of this amendatory Act
12of the 100th General Assembly.
13(Source: P.A. 100-23, eff. 7-6-17.)
 
14    (40 ILCS 5/11-170)  (from Ch. 108 1/2, par. 11-170)
15    Sec. 11-170. Contributions for age and service annuities
16for present employees, future entrants and re-entrants.
17    (a) Beginning on the effective date and prior to July 1,
181947, 3 1/4%; and beginning on July 1, 1947 and prior to July
191, 1953, 5%; and beginning July 1, 1953 and prior to January 1,
201972, 6%; and beginning January 1, 1972, 6 1/2% of each payment
21of the salary of each present employee, future entrant and
22re-entrant, except as provided in subsection (a-5) and (a-10),
23shall be contributed to the fund as a deduction from salary for
24age and service annuity.
25    (a-5) Except as provided in subsection (a-10), for an

 

 

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1employee who on or after January 1, 2011 and prior to the
2effective date of this amendatory Act of the 100th General
3Assembly first became a member or participant under this
4Article and made the election under item (i) of subsection
5(d-10) of Section 1-160: prior to the effective date of this
6amendatory Act of the 100th General Assembly, 6.5%; and
7beginning on the effective date of this amendatory Act of the
8100th General Assembly and prior to January 1, 2018, 7.5%; and
9beginning January 1, 2018 and prior to January 1, 2019, 8.5%;
10and beginning January 1, 2019 and thereafter, employee
11contributions for those employees who made the election under
12item (i) of subsection (d-10) of Section 1-160 shall be the
13lesser of: (i) the total normal cost, calculated using the
14entry age normal actuarial method, projected for the prior that
15fiscal year for the benefits and expenses of the plan of
16benefits applicable to those members and participants who first
17became members or participants on or after the effective date
18of this amendatory Act of the 100th General Assembly and to
19those employees who made the election under item (i) of
20subsection (d-10) of Section 1-160, but not less than 6.5% of
21each payment of salary combined with the employee contributions
22provided for in subsection (b) of Section 11-134.1 and Section
2311-174 of this Article; or (ii) the aggregate employee
24contribution consisting of 9.5% of each payment of salary
25combined with the employee contributions provided for in
26subsection (b) of Section 11-134.1 and 11-174 of this Article.

 

 

HB0166 Engrossed- 20 -LRB100 02316 RPS 12321 b

1    For the one-year period beginning Beginning with the first
2pay period in January of each year on or after the date when
3the funded ratio of the fund as determined in the annual
4actuarial valuation is first determined to have reached the 90%
5funding goal, and each subsequent one-year pay period
6thereafter for as long as the fund maintains a funding ratio of
775% or more, employee contributions for age and service annuity
8for those employees who made the election under item (i) of
9subsection (d-10) of Section 1-160 shall be 5.5% of each
10payment of salary. If the funding ratio falls below 75%, then
11employee contributions for age and service annuity for those
12employees who made the election under item (i) of subsection
13(d-10) shall revert to the lesser of: (A) the total normal
14cost, calculated using the entry age normal actuarial method,
15projected for the prior that fiscal year for the benefits and
16expenses of the plan of benefits applicable to those members
17and participants who first became members or participants on or
18after the effective date of this amendatory Act of the 100th
19General Assembly and to those employees who made the election
20under item (i) of subsection (d-10) of Section 1-160, but not
21less than 6.5% of each payment of salary combined with the
22employee contributions provided for in subsection (b) of
23Section 11-134.1 and Section 11-174 of this Article; or (B) the
24aggregate employee contribution consisting of 9.5% of each
25payment of salary combined with the employee contributions
26provided for in subsection (b) of Section 11-134.1 and 11-174

 

 

HB0166 Engrossed- 21 -LRB100 02316 RPS 12321 b

1of this Article. If the fund once again is determined to have
2reached a funding ratio of 75%, the 5.5% of salary contribution
3for age and service annuity shall resume. An employee who made
4the election under item (ii) of subsection (d-10) of Section
51-160 shall continue to have the contributions for age and
6service annuity determined under subsection (a) of this
7Section.
8    If contributions are reduced to less than the aggregate
9employee contribution described in item (ii) or item (B) of
10this subsection due to application of the normal cost
11criterion, the employee contribution amount shall be
12consistent for from July 1 of the fiscal year through June 30
13of that fiscal year.
14    The normal cost, for the purposes of this subsection (a-5)
15and subsection (a-10), shall be calculated by an independent
16enrolled actuary mutually agreed upon by the fund and the City.
17The fees and expenses of the independent actuary shall be the
18responsibility of the City. For purposes of this subsection
19(a-5), the fund and the City shall both be considered to be the
20clients of the actuary, and the actuary shall utilize
21participant data and actuarial standards to calculate the
22normal cost. The fund shall provide information that the
23actuary requests in order to calculate the applicable normal
24cost.
25    (a-10) For each employee subject to subsection (c-5) of
26Section 1-160 who on or after the effective date of this

 

 

HB0166 Engrossed- 22 -LRB100 02316 RPS 12321 b

1amendatory Act of the 100th General Assembly first becomes a
2member or participant under this Article, 9.5% of each payment
3of salary shall be contributed to the fund as a deduction from
4salary for age and service annuity. Beginning January 1, 2018
5and each year thereafter, employee contributions for each
6employee subject to this subsection (a-10) shall be the lesser
7of: (i) the total normal cost, calculated using the entry age
8normal actuarial method, projected for the prior that fiscal
9year for the benefits and expenses of the plan of benefits
10applicable to those members and participants who first become
11members or participants on or after the effective date of this
12amendatory Act of the 100th General Assembly and to those
13employees who made the election under item (i) of subsection
14(d-10) of Section 1-160, but not less than 6.5% of each payment
15of salary combined with the employee contributions provided for
16in subsection (b) of Section 11-134.1 and Section 11-174 of
17this Article; or (ii) the aggregate employee contribution
18consisting of 9.5% of each payment of salary combined with the
19employee contributions provided for in subsection (b) of
20Section 11-134.1 and Section 11-174 of this Article.
21    For the one-year period beginning Beginning with the first
22pay period in January of each year on or after the date when
23the funded ratio of the fund as determined in the annual
24actuarial valuation is first determined to have reached the 90%
25funding goal, and each subsequent one-year pay period
26thereafter for as long as the fund maintains a funding ratio of

 

 

HB0166 Engrossed- 23 -LRB100 02316 RPS 12321 b

175% or more, employee contributions for age and service annuity
2for each employee subject to this subsection (a-10) shall be
35.5% of each payment of salary. If the funding ratio falls
4below 75%, then employee contributions for age and service
5annuity for each employee subject to this subsection (a-10)
6shall revert to the lesser of: (A) the total normal cost,
7calculated using the entry age normal actuarial method,
8projected for the prior that fiscal year for the benefits and
9expenses of the plan of benefits applicable to those members
10and participants who first become members or participants on or
11after the effective date of this amendatory Act of the 100th
12General Assembly and to those employees who made the election
13under item (i) of subsection (d-10) of Section 1-160, but not
14less than 6.5% of each payment of salary combined with the
15employee contributions provided for in subsection (b) of
16Section 11-134.1 and Section 11-174 of this Article; or (B) the
17aggregate employee contribution consisting of 9.5% of each
18payment of salary combined with the employee contributions
19provided for in subsection (b) of Section 11-134.1 and Section
2011-174 of this Article. If the fund once again is determined to
21have reached a funding ratio of 75%, the 5.5% of salary
22contribution for age and service annuity shall resume.
23    If contributions are reduced to less than the aggregate
24employee contribution described in item (ii) or item (B) of
25this subsection (a-10) due to application of the normal cost
26criterion, the employee contribution amount shall be

 

 

HB0166 Engrossed- 24 -LRB100 02316 RPS 12321 b

1consistent for from July 1 of the fiscal year through June 30
2of that fiscal year.
3    Such deductions beginning on the effective date and prior
4to June 30, 1947, inclusive shall be made for a future entrant
5while he is in service until he attains age 65, and for a
6present employee while he is in service until the amount so
7deducted from his salary with interest at the rate of 4% per
8annum shall be equal to the sum which would have accumulated to
9his credit from sums deducted from his salary if deductions at
10the rate herein stated had been made during his entire service
11until he attained age 65 with interest at 4% per annum for the
12period subsequent to his attainment of age 65. Such deductions
13beginning July 1, 1947 shall be made and continued for
14employees while in the service.
15    (b) Concurrently with each employee contribution, the city
16shall contribute beginning on the effective date and prior to
17July 1, 1947, 5 3/4%; and beginning July 1, 1947 and prior to
18July 1, 1953, 7%; and beginning July 1, 1953 and prior to July
196, 2017, 6% of each payment of such salary until the employee
20attains age 65. Beginning July 6, 2017, the Fund shall credit
21sums equal to 6% of each payment of such salary for annuity
22purposes. The amounts credited for annuity purposes shall not
23be credited for refund purposes (Blank).
24    (c) Each employee contribution made prior to the date age
25and service annuity for an employee is fixed and each
26corresponding city contribution shall be allocated to the

 

 

HB0166 Engrossed- 25 -LRB100 02316 RPS 12321 b

1account of and credited to the employee for whose benefit it is
2made.
3    (d) Notwithstanding Section 1-103.1, the changes to this
4Section made by this amendatory Act of the 100th General
5Assembly apply regardless of whether the employee was in active
6service on or after the effective date of this amendatory Act.
7(Source: P.A. 100-23, eff. 7-6-17.)
 
8    (40 ILCS 5/11-197.7)
9    Sec. 11-197.7. Payment of annuity other than direct. The
10board, at the written direction and request of any annuitant,
11may, solely as an accommodation to such annuitant, pay the
12annuity due him or her to a bank, savings and loan association,
13or any other financial institution insured by an agency of the
14federal government, for deposit to his or her account, or to a
15bank or trust company for deposit in a trust established by him
16or her for his benefit with such bank, savings and loan
17association, or trust company, and such annuitant may withdraw
18such direction at any time. An annuitant who directs the board
19to pay the annuity due him or her to a financial institution
20shall hold the board and the fund harmless from any claim or
21loss related to any error as to whether the financial
22institution is or continues to be federally insured. The board
23may also, in the case of any disability beneficiary or
24annuitant for whom no estate guardian has been appointed and
25who is confined in a publicly owned and operated mental

 

 

HB0166 Engrossed- 26 -LRB100 02316 RPS 12321 b

1institution, pay such disability benefit or annuity due such
2person to the superintendent or other head of such institution
3or hospital for deposit to such person's trust fund account
4maintained for him or her by such institution or hospital, if
5by law such trust fund accounts are authorized or recognized.
6(Source: P.A. 100-23, eff. 7-6-17.)
 
7    Section 99. Effective date. This Act takes effect upon
8becoming law.