HB4811 EngrossedLRB100 18826 MJP 34066 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, 8-162, 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

 

 

HB4811 Engrossed- 2 -LRB100 18826 MJP 34066 b

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

 

 

HB4811 Engrossed- 3 -LRB100 18826 MJP 34066 b

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

 

 

HB4811 Engrossed- 4 -LRB100 18826 MJP 34066 b

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

 

 

HB4811 Engrossed- 5 -LRB100 18826 MJP 34066 b

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

 

 

HB4811 Engrossed- 6 -LRB100 18826 MJP 34066 b

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

 

 

HB4811 Engrossed- 7 -LRB100 18826 MJP 34066 b

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

 

 

HB4811 Engrossed- 8 -LRB100 18826 MJP 34066 b

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

 

 

HB4811 Engrossed- 9 -LRB100 18826 MJP 34066 b

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, or a security employee of the
19Department of Corrections or the Department of Juvenile
20Justice, as those terms are defined in subsection (b) of
21Section 14-110. A person who meets the requirements of this
22Section is entitled to an annuity calculated under the
23provisions of Section 14-110, in lieu of the regular or minimum
24retirement annuity, only if the person has withdrawn from
25service with not less than 20 years of eligible creditable
26service and has attained age 60, regardless of whether the

 

 

HB4811 Engrossed- 10 -LRB100 18826 MJP 34066 b

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

 

 

HB4811 Engrossed- 11 -LRB100 18826 MJP 34066 b

1fund or retirement system from which he or she is receiving an
2annuity or retirement pension, as well as his or her
3contractual employer, of his or her retirement status before
4accepting contractual employment. A person who fails to submit
5such notification shall be guilty of a Class A misdemeanor and
6required to pay a fine of $1,000. Upon termination of that
7contractual employment, the person's retirement annuity or
8retirement pension payments shall resume and, if appropriate,
9be recalculated under the applicable provisions of this Code.
10    (i) (Blank).
11    (j) In the case of a conflict between the provisions of
12this Section and any other provision of this Code, the
13provisions of this Section shall control.
14(Source: P.A. 100-23, eff. 7-6-17; 100-201, eff. 8-18-17;
15100-563, eff. 12-8-17.)
 
16    (40 ILCS 5/8-162)  (from Ch. 108 1/2, par. 8-162)
17    Sec. 8-162. Proof of disability, duty and ordinary.
18    Proof of duty or ordinary disability shall be furnished to
19the board by at least one licensed and practicing physician
20appointed by the board. The board may require other evidence of
21disability. Each disabled employee who receives duty or
22ordinary disability benefit shall be examined at least once a
23year, or a longer period of time as determined by the board, by
24one or more licensed and practicing physicians appointed by the
25board. When the disability ceases, the board shall discontinue

 

 

HB4811 Engrossed- 12 -LRB100 18826 MJP 34066 b

1payment of the benefit and the employee shall be returned to
2active service.
3(Source: Laws 1963, p. 161.)
 
4    (40 ILCS 5/8-174)   (from Ch. 108 1/2, par. 8-174)
5    Sec. 8-174. Contributions for age and service annuities for
6present employees and future entrants.
7    (a) Beginning on the effective date and prior to July 1,
81947, 3 1/4%; and beginning on July 1, 1947 and prior to July
91, 1953, 5%; and beginning July 1, 1953, and prior to January
101, 1972, 6%; and beginning January 1, 1972, 6-1/2% of each
11payment of the salary of each present employee and future
12entrant, except as provided in subsection (a-5) and (a-10),
13shall be contributed to the fund as a deduction from salary for
14age and service annuity.
15    (a-5) Except as provided in subsection (a-10), for an
16employee who on or after January 1, 2011 and prior to the
17effective date of this amendatory Act of the 100th General
18Assembly first became a member or participant under this
19Article and made the election under item (i) of subsection
20(d-10) of Section 1-160: prior to the effective date of this
21amendatory Act of the 100th General Assembly, 6.5%; and
22beginning on the effective date of this amendatory Act of the
23100th General Assembly and prior to January 1, 2018, 7.5%; and
24beginning January 1, 2018 and prior to January 1, 2019, 8.5%;
25and beginning January 1, 2019 and thereafter, employee

 

 

HB4811 Engrossed- 13 -LRB100 18826 MJP 34066 b

1contributions for those employees who made the election under
2item (i) of subsection (d-10) of Section 1-160 shall be the
3lesser of: (i) the total normal cost, calculated using the
4entry age normal actuarial method, projected for the prior that
5fiscal year for the benefits and expenses of the plan of
6benefits applicable to those members and participants who first
7became members or participants on or after the effective date
8of this amendatory Act of the 100th General Assembly and to
9those employees who made the election under item (i) of
10subsection (d-10) of Section 1-160, but not less than 6.5% of
11each payment of salary combined with the employee contributions
12provided for in subsection (b) of Section 8-137 and Section
138-182 of this Article; or (ii) the aggregate employee
14contribution consisting of 9.5% of each payment of salary
15combined with the employee contributions provided for in
16subsection (b) of Section 8-137 and 8-182 of this Article.
17    For the one-year period beginning Beginning with the first
18pay period in January of each year on or after the date when
19the funded ratio of the fund as determined in the annual
20actuarial valuation is first determined to have reached the 90%
21funding goal, and each subsequent one-year pay period
22thereafter for as long as the fund maintains a funding ratio of
2375% or more, employee contributions for age and service annuity
24for those employees who made the election under item (i) of
25subsection (d-10) of Section 1-160 shall be 5.5% of each
26payment of salary. If the funding ratio falls below 75%, then

 

 

HB4811 Engrossed- 14 -LRB100 18826 MJP 34066 b

1employee contributions for age and service annuity for those
2employees who made the election under item (i) of subsection
3(d-10) shall revert to the lesser of: (A) the total normal
4cost, calculated using the entry age normal actuarial method,
5projected for the prior that fiscal year for the benefits and
6expenses of the plan of benefits applicable to those members
7and participants who first became members or participants on or
8after the effective date of this amendatory Act of the 100th
9General Assembly and to those employees who made the election
10under item (i) of subsection (d-10) of Section 1-160, but not
11less than 6.5% of each payment of salary combined with the
12employee contributions provided for in subsection (b) of
13Section 8-137 and Section 8-182 of this Article; or (B) the
14aggregate employee contribution consisting of 9.5% of each
15payment of salary combined with the employee contributions
16provided for in subsection (b) of Section 8-137 and 8-182 of
17this Article. If the fund once again is determined to have
18reached a funding ratio of 75%, the 5.5% of salary contribution
19for age and service annuity shall resume. An employee who made
20the election under item (ii) of subsection (d-10) of Section
211-160 shall continue to have the contributions for age and
22service annuity determined under subsection (a) of this
23Section.
24    If contributions are reduced to less than the aggregate
25employee contribution described in item (ii) or item (B) of
26this subsection due to application of the normal cost

 

 

HB4811 Engrossed- 15 -LRB100 18826 MJP 34066 b

1criterion, the employee contribution amount shall be
2consistent for from July 1 of the fiscal year through June 30
3of that fiscal year.
4    The normal cost, for the purposes of this subsection (a-5)
5and subsection (a-10), shall be calculated by an independent
6enrolled actuary mutually agreed upon by the fund and the City.
7The fees and expenses of the independent actuary shall be the
8responsibility of the City. For purposes of this subsection
9(a-5), the fund and the City shall both be considered to be the
10clients of the actuary, and the actuary shall utilize
11participant data and actuarial standards to calculate the
12normal cost. The fund shall provide information that the
13actuary requests in order to calculate the applicable normal
14cost.
15    (a-10) For each employee subject to subsection (c-5) of
16Section 1-160 who on or after the effective date of this
17amendatory Act of the 100th General Assembly first becomes a
18member or participant under this Article, 9.5% of each payment
19of salary shall be contributed to the fund as a deduction from
20salary for age and service annuity. Beginning January 1, 2018
21and each year thereafter, employee contributions for each
22employee subject to this subsection (a-10) shall be the lesser
23of: (i) the total normal cost, calculated using the entry age
24normal actuarial method, projected for the prior that fiscal
25year for the benefits and expenses of the plan of benefits
26applicable to those members and participants who first become

 

 

HB4811 Engrossed- 16 -LRB100 18826 MJP 34066 b

1members or participants on or after the effective date of this
2amendatory Act of the 100th General Assembly and to those
3employees who made the election under item (i) of subsection
4(d-10) of Section 1-160, but not less than 6.5% of each payment
5of salary combined with the employee contributions provided for
6in subsection (b) of Section 8-137 and Section 8-182 of this
7Article; or (ii) the aggregate employee contribution
8consisting of 9.5% of each payment of salary combined with the
9employee contributions provided for in subsection (b) of
10Section 8-137 and Section 8-182 of this Article.
11    For the one-year period beginning Beginning with the first
12pay period in January of each year on or after the date when
13the funded ratio of the fund as determined in the annual
14actuarial valuation is first determined to have reached the 90%
15funding goal, and each subsequent one-year pay period
16thereafter for as long as the fund maintains a funding ratio of
1775% or more, employee contributions for age and service annuity
18for each employee subject to this subsection (a-10) shall be
195.5% of each payment of salary. If the funding ratio falls
20below 75%, then employee contributions for age and service
21annuity for each employee subject to this subsection (a-10)
22shall revert to the lesser of: (A) the total normal cost,
23calculated using the entry age normal actuarial method,
24projected for the prior that fiscal year for the benefits and
25expenses of the plan of benefits applicable to those members
26and participants who first become members or participants on or

 

 

HB4811 Engrossed- 17 -LRB100 18826 MJP 34066 b

1after the effective date of this amendatory Act of the 100th
2General Assembly and to those employees who made the election
3under item (i) of subsection (d-10) of Section 1-160, but not
4less than 6.5% of each payment of salary combined with the
5employee contributions provided for in subsection (b) of
6Section 8-137 and Section 8-182 of this Article; or (B) the
7aggregate employee contribution consisting of 9.5% of each
8payment of salary combined with the employee contributions
9provided for in subsection (b) of Section 8-137 and Section
108-182 of this Article. If the fund once again is determined to
11have reached a funding ratio of 75%, the 5.5% of salary
12contribution for age and service annuity shall resume.
13    If contributions are reduced to less than the aggregate
14employee contribution described in item (ii) or item (B) of
15this subsection (a-10) due to application of the normal cost
16criterion, the employee contribution amount shall be
17consistent for from July 1 of the fiscal year through June 30
18of that fiscal year.
19    Such deductions beginning on the effective date and prior
20to July 1, 1947 shall be made for a future entrant while he is
21in the service until he attains age 65 and for a present
22employee while he is in the service until the amount so
23deducted from his salary with the amount deducted from his
24salary or paid by him according to law to any municipal pension
25fund in force on the effective date with interest on both such
26amounts at 4% per annum equals the sum that would have been to

 

 

HB4811 Engrossed- 18 -LRB100 18826 MJP 34066 b

1his credit from sums deducted from his salary if deductions at
2the rate herein stated had been made during his entire service
3until he attained age 65 with interest at 4% per annum for the
4period subsequent to his attainment of age 65. Such deductions
5beginning July 1, 1947 shall be made and continued for
6employees while in the service.
7    (b) Concurrently with each employee contribution, the city
8shall contribute beginning on the effective date and prior to
9July 1, 1947, 5 3/4%; and beginning July 1, 1947 and prior to
10July 1, 1953, 7%; and beginning July 1, 1953 and prior to July
116, 2017, 6% of each payment of such salary until the employee
12attains age 65. Beginning July 6, 2017, the Fund shall credit
13sums equal to 6% of each payment of such salary for annuity
14purposes. The amounts credited for annuity purposes shall not
15be credited for refund purposes (Blank).
16    (c) Each employee contribution made prior to the date the
17age and service annuity for an employee is fixed and each
18corresponding city contribution shall be credited to the
19employee and allocated to the account of the employee for whose
20benefit it is made.
21    (d) Notwithstanding Section 1-103.1, the changes to this
22Section made by this amendatory Act of the 100th General
23Assembly apply regardless of whether the employee was in active
24service on or after the effective date of this amendatory Act
25of the 100th General Assembly.
26(Source: P.A. 100-23, eff. 7-6-17.)
 

 

 

HB4811 Engrossed- 19 -LRB100 18826 MJP 34066 b

1    (40 ILCS 5/11-170)  (from Ch. 108 1/2, par. 11-170)
2    Sec. 11-170. Contributions for age and service annuities
3for present employees, future entrants and re-entrants.
4    (a) Beginning on the effective date and prior to July 1,
51947, 3 1/4%; and beginning on July 1, 1947 and prior to July
61, 1953, 5%; and beginning July 1, 1953 and prior to January 1,
71972, 6%; and beginning January 1, 1972, 6 1/2% of each payment
8of the salary of each present employee, future entrant and
9re-entrant, except as provided in subsection (a-5) and (a-10),
10shall be contributed to the fund as a deduction from salary for
11age and service annuity.
12    (a-5) Except as provided in subsection (a-10), for an
13employee who on or after January 1, 2011 and prior to the
14effective date of this amendatory Act of the 100th General
15Assembly first became a member or participant under this
16Article and made the election under item (i) of subsection
17(d-10) of Section 1-160: prior to the effective date of this
18amendatory Act of the 100th General Assembly, 6.5%; and
19beginning on the effective date of this amendatory Act of the
20100th General Assembly and prior to January 1, 2018, 7.5%; and
21beginning January 1, 2018 and prior to January 1, 2019, 8.5%;
22and beginning January 1, 2019 and thereafter, employee
23contributions for those employees who made the election under
24item (i) of subsection (d-10) of Section 1-160 shall be the
25lesser of: (i) the total normal cost, calculated using the

 

 

HB4811 Engrossed- 20 -LRB100 18826 MJP 34066 b

1entry age normal actuarial method, projected for the prior that
2fiscal year for the benefits and expenses of the plan of
3benefits applicable to those members and participants who first
4became members or participants on or after the effective date
5of this amendatory Act of the 100th General Assembly and to
6those employees who made the election under item (i) of
7subsection (d-10) of Section 1-160, but not less than 6.5% of
8each payment of salary combined with the employee contributions
9provided for in subsection (b) of Section 11-134.1 and Section
1011-174 of this Article; or (ii) the aggregate employee
11contribution consisting of 9.5% of each payment of salary
12combined with the employee contributions provided for in
13subsection (b) of Section 11-134.1 and 11-174 of this Article.
14    For the one-year period beginning Beginning with the first
15pay period in January of each year on or after the date when
16the funded ratio of the fund as determined in the annual
17actuarial valuation is first determined to have reached the 90%
18funding goal, and each subsequent one-year pay period
19thereafter for as long as the fund maintains a funding ratio of
2075% or more, employee contributions for age and service annuity
21for those employees who made the election under item (i) of
22subsection (d-10) of Section 1-160 shall be 5.5% of each
23payment of salary. If the funding ratio falls below 75%, then
24employee contributions for age and service annuity for those
25employees who made the election under item (i) of subsection
26(d-10) shall revert to the lesser of: (A) the total normal

 

 

HB4811 Engrossed- 21 -LRB100 18826 MJP 34066 b

1cost, calculated using the entry age normal actuarial method,
2projected for the prior that fiscal year for the benefits and
3expenses of the plan of benefits applicable to those members
4and participants who first became members or participants on or
5after the effective date of this amendatory Act of the 100th
6General Assembly and to those employees who made the election
7under item (i) of subsection (d-10) of Section 1-160, but not
8less than 6.5% of each payment of salary combined with the
9employee contributions provided for in subsection (b) of
10Section 11-134.1 and Section 11-174 of this Article; or (B) the
11aggregate employee contribution consisting of 9.5% of each
12payment of salary combined with the employee contributions
13provided for in subsection (b) of Section 11-134.1 and 11-174
14of this Article. If the fund once again is determined to have
15reached a funding ratio of 75%, the 5.5% of salary contribution
16for age and service annuity shall resume. An employee who made
17the election under item (ii) of subsection (d-10) of Section
181-160 shall continue to have the contributions for age and
19service annuity determined under subsection (a) of this
20Section.
21    If contributions are reduced to less than the aggregate
22employee contribution described in item (ii) or item (B) of
23this subsection due to application of the normal cost
24criterion, the employee contribution amount shall be
25consistent for from July 1 of the fiscal year through June 30
26of that fiscal year.

 

 

HB4811 Engrossed- 22 -LRB100 18826 MJP 34066 b

1    The normal cost, for the purposes of this subsection (a-5)
2and subsection (a-10), shall be calculated by an independent
3enrolled actuary mutually agreed upon by the fund and the City.
4The fees and expenses of the independent actuary shall be the
5responsibility of the City. For purposes of this subsection
6(a-5), the fund and the City shall both be considered to be the
7clients of the actuary, and the actuary shall utilize
8participant data and actuarial standards to calculate the
9normal cost. The fund shall provide information that the
10actuary requests in order to calculate the applicable normal
11cost.
12    (a-10) For each employee subject to subsection (c-5) of
13Section 1-160 who on or after the effective date of this
14amendatory Act of the 100th General Assembly first becomes a
15member or participant under this Article, 9.5% of each payment
16of salary shall be contributed to the fund as a deduction from
17salary for age and service annuity. Beginning January 1, 2018
18and each year thereafter, employee contributions for each
19employee subject to this subsection (a-10) shall be the lesser
20of: (i) the total normal cost, calculated using the entry age
21normal actuarial method, projected for the prior that fiscal
22year for the benefits and expenses of the plan of benefits
23applicable to those members and participants who first become
24members or participants on or after the effective date of this
25amendatory Act of the 100th General Assembly and to those
26employees who made the election under item (i) of subsection

 

 

HB4811 Engrossed- 23 -LRB100 18826 MJP 34066 b

1(d-10) of Section 1-160, but not less than 6.5% of each payment
2of salary combined with the employee contributions provided for
3in subsection (b) of Section 11-134.1 and Section 11-174 of
4this Article; or (ii) the aggregate employee contribution
5consisting of 9.5% of each payment of salary combined with the
6employee contributions provided for in subsection (b) of
7Section 11-134.1 and Section 11-174 of this Article.
8    For the one-year period beginning Beginning with the first
9pay period in January of each year on or after the date when
10the funded ratio of the fund as determined in the annual
11actuarial valuation is first determined to have reached the 90%
12funding goal, and each subsequent one-year pay period
13thereafter for as long as the fund maintains a funding ratio of
1475% or more, employee contributions for age and service annuity
15for each employee subject to this subsection (a-10) shall be
165.5% of each payment of salary. If the funding ratio falls
17below 75%, then employee contributions for age and service
18annuity for each employee subject to this subsection (a-10)
19shall revert to the lesser of: (A) the total normal cost,
20calculated using the entry age normal actuarial method,
21projected for the prior that fiscal year for the benefits and
22expenses of the plan of benefits applicable to those members
23and participants who first become members or participants on or
24after the effective date of this amendatory Act of the 100th
25General Assembly and to those employees who made the election
26under item (i) of subsection (d-10) of Section 1-160, but not

 

 

HB4811 Engrossed- 24 -LRB100 18826 MJP 34066 b

1less than 6.5% of each payment of salary combined with the
2employee contributions provided for in subsection (b) of
3Section 11-134.1 and Section 11-174 of this Article; or (B) the
4aggregate employee contribution consisting of 9.5% of each
5payment of salary combined with the employee contributions
6provided for in subsection (b) of Section 11-134.1 and Section
711-174 of this Article. If the fund once again is determined to
8have reached a funding ratio of 75%, the 5.5% of salary
9contribution for age and service annuity shall resume.
10    If contributions are reduced to less than the aggregate
11employee contribution described in item (ii) or item (B) of
12this subsection (a-10) due to application of the normal cost
13criterion, the employee contribution amount shall be
14consistent for from July 1 of the fiscal year through June 30
15of that fiscal year.
16    Such deductions beginning on the effective date and prior
17to June 30, 1947, inclusive shall be made for a future entrant
18while he is in service until he attains age 65, and for a
19present employee while he is in service until the amount so
20deducted from his salary with interest at the rate of 4% per
21annum shall be equal to the sum which would have accumulated 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

 

 

HB4811 Engrossed- 25 -LRB100 18826 MJP 34066 b

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 age
12and service annuity for an employee is fixed and each
13corresponding city contribution shall be allocated to the
14account of and credited to the employee for whose benefit it is
15made.
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.
20(Source: P.A. 100-23, eff. 7-6-17.)
 
21    (40 ILCS 5/11-197.7)
22    Sec. 11-197.7. Payment of annuity other than direct. The
23board, at the written direction and request of any annuitant,
24may, solely as an accommodation to such annuitant, pay the
25annuity due him or her to a bank, savings and loan association,

 

 

HB4811 Engrossed- 26 -LRB100 18826 MJP 34066 b

1or any other financial institution insured by an agency of the
2federal government, for deposit to his or her account, or to a
3bank or trust company for deposit in a trust established by him
4or her for his benefit with such bank, savings and loan
5association, or trust company, and such annuitant may withdraw
6such direction at any time. An annuitant who directs the board
7to pay the annuity due him or her to a financial institution
8shall hold the board and the fund harmless from any claim or
9loss related to any error as to whether the financial
10institution is or continues to be federally insured. The board
11may also, in the case of any disability beneficiary or
12annuitant for whom no estate guardian has been appointed and
13who is confined in a publicly owned and operated mental
14institution, pay such disability benefit or annuity due such
15person to the superintendent or other head of such institution
16or hospital for deposit to such person's trust fund account
17maintained for him or her by such institution or hospital, if
18by law such trust fund accounts are authorized or recognized.
19(Source: P.A. 100-23, eff. 7-6-17.)
 
20    Section 99. Effective date. This Act takes effect upon
21becoming law.