Rep. Michael J. Zalewski

Filed: 11/9/2018

 

 


 

 


 
10000HB0166ham001LRB100 02316 RPS 43153 a

1
AMENDMENT TO HOUSE BILL 166

2    AMENDMENT NO. ______. Amend House Bill 166 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Pension Code is amended by
5changing Sections 1-160, 8-174, 11-170, and 11-197.7 as
6follows:
 
7    (40 ILCS 5/1-160)
8    Sec. 1-160. Provisions applicable to new hires.
9    (a) The provisions of this Section apply to a person who,
10on or after January 1, 2011, first becomes a member or a
11participant under any reciprocal retirement system or pension
12fund established under this Code, other than a retirement
13system or pension fund established under Article 2, 3, 4, 5, 6,
1415 or 18 of this Code, notwithstanding any other provision of
15this Code to the contrary, but do not apply to any self-managed
16plan established under this Code, to any person with respect to

 

 

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1service as a sheriff's law enforcement employee under Article
27, or to any participant of the retirement plan established
3under Section 22-101. Notwithstanding anything to the contrary
4in this Section, for purposes of this Section, a person who
5participated in a retirement system under Article 15 prior to
6January 1, 2011 shall be deemed a person who first became a
7member or participant prior to January 1, 2011 under any
8retirement system or pension fund subject to this Section. The
9changes made to this Section by Public Act 98-596 are a
10clarification of existing law and are intended to be
11retroactive to January 1, 2011 (the effective date of Public
12Act 96-889), notwithstanding the provisions of Section 1-103.1
13of this Code.
14    This Section does not apply to a person who first becomes a
15noncovered employee under Article 14 on or after the
16implementation date of the plan created under Section 1-161 for
17that Article, unless that person elects under subsection (b) of
18Section 1-161 to instead receive the benefits provided under
19this Section and the applicable provisions of that Article.
20    This Section does not apply to a person who first becomes a
21member or participant under Article 16 on or after the
22implementation date of the plan created under Section 1-161 for
23that Article, unless that person elects under subsection (b) of
24Section 1-161 to instead receive the benefits provided under
25this Section and the applicable provisions of that Article.
26    This Section does not apply to a person who elects under

 

 

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1subsection (c-5) of Section 1-161 to receive the benefits under
2Section 1-161.
3    This Section does not apply to a person who first becomes a
4member or participant of an affected pension fund on or after 6
5months after the resolution or ordinance date, as defined in
6Section 1-162, unless that person elects under subsection (c)
7of Section 1-162 to receive the benefits provided under this
8Section and the applicable provisions of the Article under
9which he or she is a member or participant.
10    (b) "Final average salary" means the average monthly (or
11annual) salary obtained by dividing the total salary or
12earnings calculated under the Article applicable to the member
13or participant during the 96 consecutive months (or 8
14consecutive years) of service within the last 120 months (or 10
15years) of service in which the total salary or earnings
16calculated under the applicable Article was the highest by the
17number of months (or years) of service in that period. For the
18purposes of a person who first becomes a member or participant
19of any retirement system or pension fund to which this Section
20applies on or after January 1, 2011, in this Code, "final
21average salary" shall be substituted for the following:
22        (1) In Article 7 (except for service as sheriff's law
23    enforcement employees), "final rate of earnings".
24        (2) In Articles 8, 9, 10, 11, and 12, "highest average
25    annual salary for any 4 consecutive years within the last
26    10 years of service immediately preceding the date of

 

 

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1    withdrawal".
2        (3) In Article 13, "average final salary".
3        (4) In Article 14, "final average compensation".
4        (5) In Article 17, "average salary".
5        (6) In Section 22-207, "wages or salary received by him
6    at the date of retirement or discharge".
7    (b-5) Beginning on January 1, 2011, for all purposes under
8this Code (including without limitation the calculation of
9benefits and employee contributions), the annual earnings,
10salary, or wages (based on the plan year) of a member or
11participant to whom this Section applies shall not exceed
12$106,800; however, that amount shall annually thereafter be
13increased by the lesser of (i) 3% of that amount, including all
14previous adjustments, or (ii) one-half the annual unadjusted
15percentage increase (but not less than zero) in the consumer
16price index-u for the 12 months ending with the September
17preceding each November 1, including all previous adjustments.
18    For the purposes of this Section, "consumer price index-u"
19means the index published by the Bureau of Labor Statistics of
20the United States Department of Labor that measures the average
21change in prices of goods and services purchased by all urban
22consumers, United States city average, all items, 1982-84 =
23100. The new amount resulting from each annual adjustment shall
24be determined by the Public Pension Division of the Department
25of Insurance and made available to the boards of the retirement
26systems and pension funds by November 1 of each year.

 

 

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1    (c) A member or participant is entitled to a retirement
2annuity upon written application if he or she has attained age
367 (beginning January 1, 2015, age 65 with respect to service
4under Article 12 of this Code that is subject to this Section)
5and has at least 10 years of service credit and is otherwise
6eligible under the requirements of the applicable Article.
7    A member or participant who has attained age 62 (beginning
8January 1, 2015, age 60 with respect to service under Article
912 of this Code that is subject to this Section) and has at
10least 10 years of service credit and is otherwise eligible
11under the requirements of the applicable Article may elect to
12receive the lower retirement annuity provided in subsection (d)
13of this Section.
14    (c-5) A person who first becomes a member or a participant
15subject to this Section under Article 8 or Article 11 of this
16Code on or after July 6, 2017 (the effective date of Public Act
17100-23) this amendatory Act of the 100th General Assembly,
18notwithstanding any other provision of this Code to the
19contrary, is entitled to a retirement annuity under Article 8
20or Article 11 upon written application if he or she has
21attained age 65 and has at least 10 years of service credit
22under Article 8 or Article 11 of this Code and is otherwise
23eligible under the requirements of Article 8 or Article 11 of
24this Code, whichever is applicable.
25    (d) The retirement annuity of a member or participant who
26is retiring after attaining age 62 (beginning January 1, 2015,

 

 

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1age 60 with respect to service under Article 12 of this Code
2that is subject to this Section) with at least 10 years of
3service credit shall be reduced by one-half of 1% for each full
4month that the member's age is under age 67 (beginning January
51, 2015, age 65 with respect to service under Article 12 of
6this Code that is subject to this Section).
7    (d-5) The retirement annuity payable under Article 8 or
8Article 11 to an eligible of a person subject to subsection
9(c-5) of this Section who first becomes a member or a
10participant under Article 8 or Article 11 of this Code on or
11after the effective date of this amendatory Act of the 100th
12General Assembly who is retiring at age 60 with at least 10
13years of service credit under Article 8 or Article 11 shall be
14reduced by one-half of 1% for each full month that the member's
15age is under age 65.
16    (d-10) Each person who first became a member or participant
17under Article 8 or Article 11 of this Code on or after January
181, 2011 and prior to the effective date of this amendatory Act
19of the 100th General Assembly shall make an irrevocable
20election either:
21        (i) to be eligible for the reduced retirement age
22    provided in subsections (c-5) and (d-5) of this Section,
23    the eligibility for which is conditioned upon the member or
24    participant agreeing to the increases in employee
25    contributions for age and service annuities provided in
26    subsection (a-5) of Section 8-174 of this Code (for service

 

 

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1    under Article 8) or subsection (a-5) of Section 11-170 of
2    this Code (for service under Article 11); or
3        (ii) to not agree to item (i) of this subsection
4    (d-10), in which case the member or participant shall
5    continue to be subject to the retirement age provisions in
6    subsections (c) and (d) of this Section and the employee
7    contributions for age and service annuity as provided in
8    subsection (a) of Section 8-174 of this Code (for service
9    under Article 8) or subsection (a) of Section 11-170 of
10    this Code (for service under Article 11).
11    The election provided for in this subsection shall be made
12between October 1, 2017 and November 15, 2017. A person subject
13to this subsection who makes the required election shall remain
14bound by that election. A person subject to this subsection who
15fails for any reason to make the required election within the
16time specified in this subsection shall be deemed to have made
17the election under item (ii).
18    (e) Any retirement annuity or supplemental annuity shall be
19subject to annual increases on the January 1 occurring either
20on or after the attainment of age 67 (beginning January 1,
212015, age 65 with respect to service under Article 12 of this
22Code that is subject to this Section and beginning on the
23effective date of this amendatory Act of the 100th General
24Assembly, age 65 with respect to service under Article 8 or
25Article 11 for eligible persons who: (i) are subject to
26subsection (c-5) of this Section first became members or

 

 

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1participants under Article 8 or Article 11 of this Code on or
2after the effective date of this amendatory Act of the 100th
3General Assembly; or (ii) first became members or participants
4under Article 8 or Article 11 of this Code on or after January
51, 2011 and before the effective date of this amendatory Act of
6the 100th General Assembly and made the election under item (i)
7of subsection (d-10) of this Section) or the first anniversary
8of the annuity start date, whichever is later. Each annual
9increase shall be calculated at 3% or one-half the annual
10unadjusted percentage increase (but not less than zero) in the
11consumer price index-u for the 12 months ending with the
12September preceding each November 1, whichever is less, of the
13originally granted retirement annuity. If the annual
14unadjusted percentage change in the consumer price index-u for
15the 12 months ending with the September preceding each November
161 is zero or there is a decrease, then the annuity shall not be
17increased.
18    For the purposes of Section 1-103.1 of this Code, the
19changes made to this Section by this amendatory Act of the
20100th General Assembly are applicable without regard to whether
21the employee was in active service on or after the effective
22date of this amendatory Act of the 100th General Assembly.
23    (f) The initial survivor's or widow's annuity of an
24otherwise eligible survivor or widow of a retired member or
25participant who first became a member or participant on or
26after January 1, 2011 shall be in the amount of 66 2/3% of the

 

 

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1retired member's or participant's retirement annuity at the
2date of death. In the case of the death of a member or
3participant who has not retired and who first became a member
4or participant on or after January 1, 2011, eligibility for a
5survivor's or widow's annuity shall be determined by the
6applicable Article of this Code. The initial benefit shall be
766 2/3% of the earned annuity without a reduction due to age. A
8child's annuity of an otherwise eligible child shall be in the
9amount prescribed under each Article if applicable. Any
10survivor's or widow's annuity shall be increased (1) on each
11January 1 occurring on or after the commencement of the annuity
12if the deceased member died while receiving a retirement
13annuity or (2) in other cases, on each January 1 occurring
14after the first anniversary of the commencement of the annuity.
15Each annual increase shall be calculated at 3% or one-half the
16annual unadjusted percentage increase (but not less than zero)
17in the consumer price index-u for the 12 months ending with the
18September preceding each November 1, whichever is less, of the
19originally granted survivor's annuity. If the annual
20unadjusted percentage change in the consumer price index-u for
21the 12 months ending with the September preceding each November
221 is zero or there is a decrease, then the annuity shall not be
23increased.
24    (g) The benefits in Section 14-110 apply only if the person
25is a State policeman, a fire fighter in the fire protection
26service of a department, a security employee of the Department

 

 

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1of Corrections or the Department of Juvenile Justice, or a
2security employee of the Department of Innovation and
3Technology, as those terms are defined in subsection (b) and
4subsection (c) of Section 14-110. A person who meets the
5requirements of this Section is entitled to an annuity
6calculated under the provisions of Section 14-110, in lieu of
7the regular or minimum retirement annuity, only if the person
8has withdrawn from service with not less than 20 years of
9eligible creditable service and has attained age 60, regardless
10of whether the attainment of age 60 occurs while the person is
11still in service.
12    (h) If a person who first becomes a member or a participant
13of a retirement system or pension fund subject to this Section
14on or after January 1, 2011 is receiving a retirement annuity
15or retirement pension under that system or fund and becomes a
16member or participant under any other system or fund created by
17this Code and is employed on a full-time basis, except for
18those members or participants exempted from the provisions of
19this Section under subsection (a) of this Section, then the
20person's retirement annuity or retirement pension under that
21system or fund shall be suspended during that employment. Upon
22termination of that employment, the person's retirement
23annuity or retirement pension payments shall resume and be
24recalculated if recalculation is provided for under the
25applicable Article of this Code.
26    If a person who first becomes a member of a retirement

 

 

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1system or pension fund subject to this Section on or after
2January 1, 2012 and is receiving a retirement annuity or
3retirement pension under that system or fund and accepts on a
4contractual basis a position to provide services to a
5governmental entity from which he or she has retired, then that
6person's annuity or retirement pension earned as an active
7employee of the employer shall be suspended during that
8contractual service. A person receiving an annuity or
9retirement pension under this Code shall notify the pension
10fund or retirement system from which he or she is receiving an
11annuity or retirement pension, as well as his or her
12contractual employer, of his or her retirement status before
13accepting contractual employment. A person who fails to submit
14such notification shall be guilty of a Class A misdemeanor and
15required to pay a fine of $1,000. Upon termination of that
16contractual employment, the person's retirement annuity or
17retirement pension payments shall resume and, if appropriate,
18be recalculated under the applicable provisions of this Code.
19    (i) (Blank).
20    (j) In the case of a conflict between the provisions of
21this Section and any other provision of this Code, the
22provisions of this Section shall control.
23(Source: P.A. 100-23, eff. 7-6-17; 100-201, eff. 8-18-17;
24100-563, eff. 12-8-17; 100-611, eff. 7-20-18.)
 
25    (40 ILCS 5/8-174)   (from Ch. 108 1/2, par. 8-174)

 

 

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1    Sec. 8-174. Contributions for age and service annuities for
2present employees and future entrants.
3    (a) Beginning on the effective date and prior to July 1,
41947, 3 1/4%; and beginning on July 1, 1947 and prior to July
51, 1953, 5%; and beginning July 1, 1953, and prior to January
61, 1972, 6%; and beginning January 1, 1972, 6-1/2% of each
7payment of the salary of each present employee and future
8entrant, except as provided in subsection (a-5) and (a-10),
9shall be contributed to the fund as a deduction from salary for
10age and service annuity.
11    (a-5) Except as provided in subsection (a-10), for an
12employee who on or after January 1, 2011 and prior to the
13effective date of this amendatory Act of the 100th General
14Assembly first became a member or participant under this
15Article and made the election under item (i) of subsection
16(d-10) of Section 1-160: prior to the effective date of this
17amendatory Act of the 100th General Assembly, 6.5%; and
18beginning on the effective date of this amendatory Act of the
19100th General Assembly and prior to January 1, 2018, 7.5%; and
20beginning January 1, 2018 and prior to January 1, 2019, 8.5%;
21and beginning January 1, 2019 and thereafter, employee
22contributions for those employees who made the election under
23item (i) of subsection (d-10) of Section 1-160 shall be the
24lesser of: (i) the total normal cost, calculated using the
25entry age normal actuarial method, projected for the prior that
26fiscal year for the benefits and expenses of the plan of

 

 

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1benefits applicable to those members and participants who first
2became members or participants on or after the effective date
3of this amendatory Act of the 100th General Assembly and to
4those employees who made the election under item (i) of
5subsection (d-10) of Section 1-160, but not less than 6.5% of
6each payment of salary combined with the employee contributions
7provided for in subsection (b) of Section 8-137 and Section
88-182 of this Article; or (ii) the aggregate employee
9contribution consisting of 9.5% of each payment of salary
10combined with the employee contributions provided for in
11subsection (b) of Section 8-137 and 8-182 of this Article.
12    For the one-year period beginning Beginning with the first
13pay period in January of each year on or after the date when
14the funded ratio of the fund as determined in the annual
15actuarial valuation is first determined to have reached the 90%
16funding goal, and each subsequent one-year pay period
17thereafter for as long as the fund maintains a funding ratio of
1875% or more, employee contributions for age and service annuity
19for those employees who made the election under item (i) of
20subsection (d-10) of Section 1-160 shall be 5.5% of each
21payment of salary. If the funding ratio falls below 75%, then
22employee contributions for age and service annuity for those
23employees who made the election under item (i) of subsection
24(d-10) shall revert to the lesser of: (A) the total normal
25cost, calculated using the entry age normal actuarial method,
26projected for the prior that fiscal year for the benefits and

 

 

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1expenses of the plan of benefits applicable to those members
2and participants who first became members or participants on or
3after the effective date of this amendatory Act of the 100th
4General Assembly and to those employees who made the election
5under item (i) of subsection (d-10) of Section 1-160, but not
6less than 6.5% of each payment of salary combined with the
7employee contributions provided for in subsection (b) of
8Section 8-137 and Section 8-182 of this Article; or (B) the
9aggregate employee contribution consisting of 9.5% of each
10payment of salary combined with the employee contributions
11provided for in subsection (b) of Section 8-137 and 8-182 of
12this Article. If the fund once again is determined to have
13reached a funding ratio of 75%, the 5.5% of salary contribution
14for age and service annuity shall resume. An employee who made
15the election under item (ii) of subsection (d-10) of Section
161-160 shall continue to have the contributions for age and
17service annuity determined under subsection (a) of this
18Section.
19    If contributions are reduced to less than the aggregate
20employee contribution described in item (ii) or item (B) of
21this subsection due to application of the normal cost
22criterion, the employee contribution amount shall be
23consistent for from July 1 of the fiscal year through June 30
24of that fiscal year.
25    The normal cost, for the purposes of this subsection (a-5)
26and subsection (a-10), shall be calculated by an independent

 

 

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1enrolled actuary mutually agreed upon by the fund and the City.
2The fees and expenses of the independent actuary shall be the
3responsibility of the City. For purposes of this subsection
4(a-5), the fund and the City shall both be considered to be the
5clients of the actuary, and the actuary shall utilize
6participant data and actuarial standards to calculate the
7normal cost. The fund shall provide information that the
8actuary requests in order to calculate the applicable normal
9cost.
10    (a-10) For each employee subject to subsection (c-5) of
11Section 1-160 who on or after the effective date of this
12amendatory Act of the 100th General Assembly first becomes a
13member or participant under this Article, 9.5% of each payment
14of salary shall be contributed to the fund as a deduction from
15salary for age and service annuity. Beginning January 1, 2018
16and each year thereafter, employee contributions for each
17employee subject to this subsection (a-10) shall be the lesser
18of: (i) the total normal cost, calculated using the entry age
19normal actuarial method, projected for the prior that fiscal
20year for the benefits and expenses of the plan of benefits
21applicable to those members and participants who first become
22members or participants on or after the effective date of this
23amendatory Act of the 100th General Assembly and to those
24employees who made the election under item (i) of subsection
25(d-10) of Section 1-160, but not less than 6.5% of each payment
26of salary combined with the employee contributions provided for

 

 

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1in subsection (b) of Section 8-137 and Section 8-182 of this
2Article; or (ii) the aggregate employee contribution
3consisting of 9.5% of each payment of salary combined with the
4employee contributions provided for in subsection (b) of
5Section 8-137 and Section 8-182 of this Article.
6    For the one-year period beginning Beginning with the first
7pay period in January of each year on or after the date when
8the funded ratio of the fund as determined in the annual
9actuarial valuation is first determined to have reached the 90%
10funding goal, and each subsequent one-year pay period
11thereafter for as long as the fund maintains a funding ratio of
1275% or more, employee contributions for age and service annuity
13for each employee subject to this subsection (a-10) shall be
145.5% of each payment of salary. If the funding ratio falls
15below 75%, then employee contributions for age and service
16annuity for each employee subject to this subsection (a-10)
17shall revert to the lesser of: (A) the total normal cost,
18calculated using the entry age normal actuarial method,
19projected for the prior that fiscal year for the benefits and
20expenses of the plan of benefits applicable to those members
21and participants who first become members or participants on or
22after the effective date of this amendatory Act of the 100th
23General Assembly and to those employees who made the election
24under item (i) of subsection (d-10) of Section 1-160, but not
25less than 6.5% of each payment of salary combined with the
26employee contributions provided for in subsection (b) of

 

 

10000HB0166ham001- 17 -LRB100 02316 RPS 43153 a

1Section 8-137 and Section 8-182 of this Article; or (B) the
2aggregate employee contribution consisting of 9.5% of each
3payment of salary combined with the employee contributions
4provided for in subsection (b) of Section 8-137 and Section
58-182 of this Article. If the fund once again is determined to
6have reached a funding ratio of 75%, the 5.5% of salary
7contribution for age and service annuity shall resume.
8    If contributions are reduced to less than the aggregate
9employee contribution described in item (ii) or item (B) of
10this subsection (a-10) 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    Such deductions beginning on the effective date and prior
15to July 1, 1947 shall be made for a future entrant while he is
16in the service until he attains age 65 and for a present
17employee while he is in the service until the amount so
18deducted from his salary with the amount deducted from his
19salary or paid by him according to law to any municipal pension
20fund in force on the effective date with interest on both such
21amounts at 4% per annum equals the sum that would have been to
22his credit from sums deducted from his salary if deductions at
23the rate herein stated had been made during his entire service
24until he attained age 65 with interest at 4% per annum for the
25period subsequent to his attainment of age 65. Such deductions
26beginning July 1, 1947 shall be made and continued for

 

 

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1employees while in the service.
2    (b) Concurrently with each employee contribution, the city
3shall contribute beginning on the effective date and prior to
4July 1, 1947, 5 3/4%; and beginning July 1, 1947 and prior to
5July 1, 1953, 7%; and beginning July 1, 1953 and prior to July
66, 2017, 6% of each payment of such salary until the employee
7attains age 65. Beginning July 6, 2017, the Fund shall credit
8sums equal to 6% of each payment of such salary for annuity
9purposes. The amounts credited for annuity purposes shall not
10be credited for refund purposes (Blank).
11    (c) Each employee contribution made prior to the date the
12age and service annuity for an employee is fixed and each
13corresponding city contribution shall be credited to the
14employee and allocated to the account of the employee for whose
15benefit it is made.
16    (d) Notwithstanding Section 1-103.1, the changes to this
17Section made by this amendatory Act of the 100th General
18Assembly apply regardless of whether the employee was in active
19service on or after the effective date of this amendatory Act
20of the 100th General Assembly.
21(Source: P.A. 100-23, eff. 7-6-17.)
 
22    (40 ILCS 5/11-170)  (from Ch. 108 1/2, par. 11-170)
23    Sec. 11-170. Contributions for age and service annuities
24for present employees, future entrants and re-entrants.
25    (a) Beginning on the effective date and prior to July 1,

 

 

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11947, 3 1/4%; and beginning on July 1, 1947 and prior to July
21, 1953, 5%; and beginning July 1, 1953 and prior to January 1,
31972, 6%; and beginning January 1, 1972, 6 1/2% of each payment
4of the salary of each present employee, future entrant and
5re-entrant, except as provided in subsection (a-5) and (a-10),
6shall be contributed to the fund as a deduction from salary for
7age and service annuity.
8    (a-5) Except as provided in subsection (a-10), for an
9employee who on or after January 1, 2011 and prior to the
10effective date of this amendatory Act of the 100th General
11Assembly first became a member or participant under this
12Article and made the election under item (i) of subsection
13(d-10) of Section 1-160: prior to the effective date of this
14amendatory Act of the 100th General Assembly, 6.5%; and
15beginning on the effective date of this amendatory Act of the
16100th General Assembly and prior to January 1, 2018, 7.5%; and
17beginning January 1, 2018 and prior to January 1, 2019, 8.5%;
18and beginning January 1, 2019 and thereafter, employee
19contributions for those employees who made the election under
20item (i) of subsection (d-10) of Section 1-160 shall be the
21lesser of: (i) the total normal cost, calculated using the
22entry age normal actuarial method, projected for the prior that
23fiscal year for the benefits and expenses of the plan of
24benefits applicable to those members and participants who first
25became members or participants on or after the effective date
26of this amendatory Act of the 100th General Assembly and to

 

 

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1those employees who made the election under item (i) of
2subsection (d-10) of Section 1-160, but not less than 6.5% of
3each payment of salary combined with the employee contributions
4provided for in subsection (b) of Section 11-134.1 and Section
511-174 of this Article; or (ii) the aggregate employee
6contribution consisting of 9.5% of each payment of salary
7combined with the employee contributions provided for in
8subsection (b) of Section 11-134.1 and 11-174 of this Article.
9    For the one-year period beginning Beginning with the first
10pay period in January of each year on or after the date when
11the funded ratio of the fund as determined in the annual
12actuarial valuation is first determined to have reached the 90%
13funding goal, and each subsequent one-year pay period
14thereafter for as long as the fund maintains a funding ratio of
1575% or more, employee contributions for age and service annuity
16for those employees who made the election under item (i) of
17subsection (d-10) of Section 1-160 shall be 5.5% of each
18payment of salary. If the funding ratio falls below 75%, then
19employee contributions for age and service annuity for those
20employees who made the election under item (i) of subsection
21(d-10) shall revert to the lesser of: (A) the total normal
22cost, calculated using the entry age normal actuarial method,
23projected for the prior that fiscal year for the benefits and
24expenses of the plan of benefits applicable to those members
25and participants who first became members or participants on or
26after the effective date of this amendatory Act of the 100th

 

 

10000HB0166ham001- 21 -LRB100 02316 RPS 43153 a

1General Assembly and to those employees who made the election
2under item (i) of subsection (d-10) of Section 1-160, but not
3less than 6.5% of each payment of salary combined with the
4employee contributions provided for in subsection (b) of
5Section 11-134.1 and Section 11-174 of this Article; or (B) the
6aggregate employee contribution consisting of 9.5% of each
7payment of salary combined with the employee contributions
8provided for in subsection (b) of Section 11-134.1 and 11-174
9of this Article. If the fund once again is determined to have
10reached a funding ratio of 75%, the 5.5% of salary contribution
11for age and service annuity shall resume. An employee who made
12the election under item (ii) of subsection (d-10) of Section
131-160 shall continue to have the contributions for age and
14service annuity determined under subsection (a) of this
15Section.
16    If contributions are reduced to less than the aggregate
17employee contribution described in item (ii) or item (B) of
18this subsection due to application of the normal cost
19criterion, the employee contribution amount shall be
20consistent for from July 1 of the fiscal year through June 30
21of that fiscal year.
22    The normal cost, for the purposes of this subsection (a-5)
23and subsection (a-10), shall be calculated by an independent
24enrolled actuary mutually agreed upon by the fund and the City.
25The fees and expenses of the independent actuary shall be the
26responsibility of the City. For purposes of this subsection

 

 

10000HB0166ham001- 22 -LRB100 02316 RPS 43153 a

1(a-5), the fund and the City shall both be considered to be the
2clients of the actuary, and the actuary shall utilize
3participant data and actuarial standards to calculate the
4normal cost. The fund shall provide information that the
5actuary requests in order to calculate the applicable normal
6cost.
7    (a-10) For each employee subject to subsection (c-5) of
8Section 1-160 who on or after the effective date of this
9amendatory Act of the 100th General Assembly first becomes a
10member or participant under this Article, 9.5% of each payment
11of salary shall be contributed to the fund as a deduction from
12salary for age and service annuity. Beginning January 1, 2018
13and each year thereafter, employee contributions for each
14employee subject to this subsection (a-10) shall be the lesser
15of: (i) the total normal cost, calculated using the entry age
16normal actuarial method, projected for the prior that fiscal
17year for the benefits and expenses of the plan of benefits
18applicable to those members and participants who first become
19members or participants on or after the effective date of this
20amendatory Act of the 100th General Assembly and to those
21employees who made the election under item (i) of subsection
22(d-10) of Section 1-160, but not less than 6.5% of each payment
23of salary combined with the employee contributions provided for
24in subsection (b) of Section 11-134.1 and Section 11-174 of
25this Article; or (ii) the aggregate employee contribution
26consisting of 9.5% of each payment of salary combined with the

 

 

10000HB0166ham001- 23 -LRB100 02316 RPS 43153 a

1employee contributions provided for in subsection (b) of
2Section 11-134.1 and Section 11-174 of this Article.
3    For the one-year period beginning Beginning with the first
4pay period in January of each year on or after the date when
5the funded ratio of the fund as determined in the annual
6actuarial valuation is first determined to have reached the 90%
7funding goal, and each subsequent one-year pay period
8thereafter for as long as the fund maintains a funding ratio of
975% or more, employee contributions for age and service annuity
10for each employee subject to this subsection (a-10) shall be
115.5% of each payment of salary. If the funding ratio falls
12below 75%, then employee contributions for age and service
13annuity for each employee subject to this subsection (a-10)
14shall revert to the lesser of: (A) the total normal cost,
15calculated using the entry age normal actuarial method,
16projected for the prior that fiscal year for the benefits and
17expenses of the plan of benefits applicable to those members
18and participants who first become members or participants on or
19after the effective date of this amendatory Act of the 100th
20General Assembly and to those employees who made the election
21under item (i) of subsection (d-10) of Section 1-160, but not
22less than 6.5% of each payment of salary combined with the
23employee contributions provided for in subsection (b) of
24Section 11-134.1 and Section 11-174 of this Article; or (B) the
25aggregate employee contribution consisting of 9.5% of each
26payment of salary combined with the employee contributions

 

 

10000HB0166ham001- 24 -LRB100 02316 RPS 43153 a

1provided for in subsection (b) of Section 11-134.1 and Section
211-174 of this Article. If the fund once again is determined to
3have reached a funding ratio of 75%, the 5.5% of salary
4contribution for age and service annuity shall resume.
5    If contributions are reduced to less than the aggregate
6employee contribution described in item (ii) or item (B) of
7this subsection (a-10) due to application of the normal cost
8criterion, the employee contribution amount shall be
9consistent for from July 1 of the fiscal year through June 30
10of that fiscal year.
11    Such deductions beginning on the effective date and prior
12to June 30, 1947, inclusive shall be made for a future entrant
13while he is in service until he attains age 65, and for a
14present employee while he is in service until the amount so
15deducted from his salary with interest at the rate of 4% per
16annum shall be equal to the sum which would have accumulated to
17his credit from sums deducted from his salary if deductions at
18the rate herein stated had been made during his entire service
19until he attained age 65 with interest at 4% per annum for the
20period subsequent to his attainment of age 65. Such deductions
21beginning July 1, 1947 shall be made and continued for
22employees while in the service.
23    (b) Concurrently with each employee contribution, the city
24shall contribute beginning on the effective date and prior to
25July 1, 1947, 5 3/4%; and beginning July 1, 1947 and prior to
26July 1, 1953, 7%; and beginning July 1, 1953 and prior to July

 

 

10000HB0166ham001- 25 -LRB100 02316 RPS 43153 a

16, 2017, 6% of each payment of such salary until the employee
2attains age 65. Beginning July 6, 2017, the Fund shall credit
3sums equal to 6% of each payment of such salary for annuity
4purposes. The amounts credited for annuity purposes shall not
5be credited for refund purposes (Blank).
6    (c) Each employee contribution made prior to the date age
7and service annuity for an employee is fixed and each
8corresponding city contribution shall be allocated to the
9account of and credited to the employee for whose benefit it is
10made.
11    (d) Notwithstanding Section 1-103.1, the changes to this
12Section made by this amendatory Act of the 100th General
13Assembly apply regardless of whether the employee was in active
14service on or after the effective date of this amendatory Act.
15(Source: P.A. 100-23, eff. 7-6-17.)
 
16    (40 ILCS 5/11-197.7)
17    Sec. 11-197.7. Payment of annuity other than direct. The
18board, at the written direction and request of any annuitant,
19may, solely as an accommodation to such annuitant, pay the
20annuity due him or her to a bank, savings and loan association,
21or any other financial institution insured by an agency of the
22federal government, for deposit to his or her account, or to a
23bank or trust company for deposit in a trust established by him
24or her for his benefit with such bank, savings and loan
25association, or trust company, and such annuitant may withdraw

 

 

10000HB0166ham001- 26 -LRB100 02316 RPS 43153 a

1such direction at any time. An annuitant who directs the board
2to pay the annuity due him or her to a financial institution
3shall hold the board and the fund harmless from any claim or
4loss related to any error as to whether the financial
5institution is or continues to be federally insured. The board
6may also, in the case of any disability beneficiary or
7annuitant for whom no estate guardian has been appointed and
8who is confined in a publicly owned and operated mental
9institution, pay such disability benefit or annuity due such
10person to the superintendent or other head of such institution
11or hospital for deposit to such person's trust fund account
12maintained for him or her by such institution or hospital, if
13by law such trust fund accounts are authorized or recognized.
14(Source: P.A. 100-23, eff. 7-6-17.)
 
15    Section 99. Effective date. This Act takes effect upon
16becoming law.".