95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
HB1699

 

Introduced 2/22/2007, by Rep. Robert S. Molaro

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Amends the Cook County Article of the Illinois Pension Code. Provides that the annual annuity increase for a person first employed under the Article on or after the effective date shall be at a rate of 3% of the original fixed annuity (instead of 3% of the current amount of the annuity). Provides that the widow's annuity for widow of a person first employed under the Article on or after the effective date shall be subject to an annual increase at a rate of 3% of the original fixed annuity (instead of 3% of the amount of the widow's annuity payable at the time of the increase). Provides that the county board shall levy a tax annually upon all taxable property in the city at a rate that will produce a sum that will be sufficient to bring the total assets of the County Employees' and Officers' Annuity and Benefit Fund up to 90% of the total actuarial liabilities of the Fund by the end of fiscal year 2016 (instead of a sum that will be sufficient for the requirements of the Article, with a maximum provided). Amends the State Mandates Act to require implementation without reimbursement.


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FISCAL NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT
MAY APPLY

 

 

A BILL FOR

 

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1     AN ACT concerning public employee benefits.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The Illinois Pension Code is amended by changing
5 Sections 9-133, 9-146.2, and 9-169 as follows:
 
6     (40 ILCS 5/9-133)  (from Ch. 108 1/2, par. 9-133)
7     Sec. 9-133. Automatic increase in annuity.
8     (a) An employee who retired or retires from service after
9 December 31, 1959, having attained age 60 or more or, beginning
10 January 1, 1991, having attained 30 or more years of creditable
11 service, shall, in the month of January of the year following
12 the year in which the first anniversary of retirement occurs,
13 have his then fixed and payable monthly annuity increased by 1
14 1/2%, and such first fixed annuity as granted at retirement
15 increased by a further 1 1/2% in January of each year
16 thereafter. Beginning with January of the year 1972, such
17 increases shall be at the rate of 2% in lieu of the aforesaid
18 specified 1 1/2%. Beginning with January of the year 1982, such
19 increases shall be at the rate of 3% in lieu of the aforesaid
20 specified 2%. Beginning January 1, 1998, these increases shall
21 be at the rate of 3% of the current amount of the annuity,
22 including any previous increases received under this Article,
23 without regard to whether the annuitant is in service on or

 

 

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1 after the effective date of this amendatory Act of 1997.
2     An employee who retires on annuity before age 60 and,
3 beginning January 1, 1991, with less than 30 years of
4 creditable service shall receive such increases beginning with
5 January of the year immediately following the year in which he
6 attains the age of 60 years. An employee who retires on annuity
7 before age 60 and before January 1, 1991, with at least 30
8 years of creditable service, shall be entitled to receive the
9 first increase under this subsection no later than January 1,
10 1993.
11     For an employee who, in accordance with the provisions of
12 Section 9-108.1 of this Act, shall have become a member of the
13 State System established under Article 14 on February 1, 1974,
14 the first such automatic increase shall begin in January of
15 1975.
16     (a-5) Notwithstanding the provisions of subsection (a),
17 the annual annuity increase under this Section for a person
18 first employed under this Article on or after the effective
19 date of this amendatory Act of the 95th General Assembly shall
20 be at a rate of 3% of the original fixed annuity.
21     (b) Subsection (a) is not applicable to an employee
22 retiring and receiving a term annuity, as defined in this Act,
23 nor to any otherwise qualified employee who retires before he
24 makes employee contributions (at the 1/2 of 1% rate as provided
25 in this Section) for this additional annuity for not less than
26 the equivalent of one full year. Such employee, however, shall

 

 

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1 make arrangement to pay to the fund a balance of such
2 contributions, based on his final salary, as will bring such
3 1/2 of 1% contributions, computed without interest, to the
4 equivalent of one year's contributions.
5     Beginning with the month of January, 1960, each employee
6 shall contribute by means of salary deductions 1/2 of 1% of
7 each salary payment, concurrently with and in addition to the
8 employee contributions otherwise provided for annuity
9 purposes.
10     Each such additional contribution shall be credited to an
11 account in the prior service annuity reserve, to be used,
12 together with county contributions, to defray the cost of the
13 specified annuity increments. Any balance in such account as of
14 the beginning of each calendar year shall be credited with
15 interest at the rate of 3% per annum.
16     Such additional employee contributions are not refundable,
17 except to an employee who withdraws and applies for refund
18 under this Article, or applies for annuity, and also in cases
19 where a term annuity becomes payable. In such cases his
20 contributions shall be refunded, without interest, and charged
21 to the prior service annuity reserve.
22 (Source: P.A. 90-32, eff. 6-27-97.)
 
23     (40 ILCS 5/9-146.2)
24     Sec. 9-146.2. Automatic annual increase in widow's
25 annuity.

 

 

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1     (a) Every widow's annuity, other than a term annuity, shall
2 be increased on January 1, 1998 or the January 1 occurring on
3 or immediately after the first anniversary of the deceased
4 employee's death, whichever occurs later, by an amount equal to
5 3% of the amount of the annuity.
6     On each January 1 after the date of the initial increase
7 under this Section, the widow's annuity shall be increased by
8 an amount equal to 3% of the amount of the widow's annuity
9 payable at the time of the increase, including any increases
10 previously granted under this Article.
11     (a-5) Notwithstanding the provisions of subsection (a),
12 the widow's annuity for widow of a person first employed under
13 this Article on or after the effective date of this amendatory
14 Act of the 95th General Assembly shall be subject to an annual
15 increase at a rate of 3% of the original fixed annuity.
16     (b) Limitations on the maximum amount of widow's annuity
17 imposed under Section 9-150 do not apply to the annual
18 increases provided under this Section.
19     (c) The increases provided under this Section also apply to
20 compensation annuities and supplemental annuities payable
21 under Section 9-147. The increases provided under this Section
22 do not apply to term annuities.
23 (Source: P.A. 90-32, eff. 6-27-97.)
 
24     (40 ILCS 5/9-169)  (from Ch. 108 1/2, par. 9-169)
25     Sec. 9-169. Financing - Tax levy. (a) The county board

 

 

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1 shall levy a tax annually upon all taxable property in the
2 county at the rate that will produce a sum which, when added to
3 the amounts deducted from the salaries of the employees or
4 otherwise contributed by them is sufficient to bring the total
5 assets of the Fund up to 90% of the total actuarial liabilities
6 of the Fund by the end of fiscal year 2016. for the
7 requirements of this Article.
8     For the years before 1962 the tax rate shall be as provided
9 in "The 1925 Act". For the years 1962 and 1963 the tax rate
10 shall be not more than .0200 per cent; for the years 1964 and
11 1965 the tax rate shall be not more than .0202 per cent; for
12 the years 1966 and 1967 the tax rate shall be not more than
13 .0207 per cent; for the year 1968 the tax rate shall be not
14 more than .0220 per cent; for the year 1969 the tax rate shall
15 be not more than .0233 per cent; for the year 1970 the tax rate
16 shall be not more than .0255 per cent; for the year 1971 the
17 tax rate shall be not more than .0268 per cent of the value, as
18 equalized or assessed by the Department of Revenue upon all
19 taxable property in the county. Beginning with the year 1972
20 and for each year thereafter the county shall levy a tax
21 annually at a rate on the dollar of the value, as equalized or
22 assessed by the Department of Revenue of all taxable property
23 within the county that will produce, when extended, not to
24 exceed an amount equal to the total amount of contributions
25 made by the employees to the fund in the calendar year 2 years
26 prior to the year for which the annual applicable tax is levied

 

 

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1 multiplied by .8 for the years 1972 through 1976; by .8 for the
2 year 1977; by .87 for the year 1978; by .94 for the year 1979;
3 by 1.02 for the year 1980 and by 1.10 for the year 1981 and by
4 1.18 for the year 1982 and by 1.36 for the year 1983 and by 1.54
5 for the year 1984 and for each year thereafter.
6     This tax shall be levied and collected in like manner with
7 the general taxes of the county, and shall be in addition to
8 all other taxes which the county is authorized to levy upon the
9 aggregate valuation of all taxable property within the county
10 and shall be exclusive of and in addition to the amount of tax
11 the county is authorized to levy for general purposes under any
12 laws which may limit the amount of tax which the county may
13 levy for general purposes. The county clerk, in reducing tax
14 levies under any Act concerning the levy and extension of
15 taxes, shall not consider this tax as a part of the general tax
16 levy for county purposes, and shall not include it within any
17 limitation of the per cent of the assessed valuation upon which
18 taxes are required to be extended for the county. It is lawful
19 to extend this tax in addition to the general county rate fixed
20 by statute, without being authorized as additional by a vote of
21 the people of the county.
22     Revenues derived from this tax shall be paid to the
23 treasurer of the county and held by him for the benefit of the
24 fund.
25     If the payments on account of taxes are insufficient during
26 any year to meet the requirements of this Article, the county

 

 

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1 may issue tax anticipation warrants against the current tax
2 levy.
3     (b) By January 10, annually, the board shall notify the
4 county board of the requirement of this Article that this tax
5 shall be levied. The board shall compute the amounts necessary
6 for the purposes of the fund for that current year to be
7 credited to the reserves established and maintained as provided
8 in this Act, shall make an annual determination of the required
9 county contributions, and shall certify the results thereof to
10 the county board.
11     (c) The various sums to be contributed by the county board
12 and allocated for the purposes of this Article and any interest
13 to be contributed by the county shall be taken from the revenue
14 derived from this tax and no money of the county derived from
15 any source other than the levy and collection of this tax or
16 the sale of tax anticipation warrants, except state or federal
17 funds contributed for annuity and benefit purposes for
18 employees of a county department of public aid under "The
19 Illinois Public Aid Code", approved April 11, 1967, as now or
20 hereafter amended, may be used to provide revenue for the fund.
21     If it is not possible or practicable for the county to make
22 contributions for age and service annuity and widow's annuity
23 concurrently with the employee contributions made for such
24 purposes, such county shall make such contributions as soon as
25 possible and practicable thereafter with interest thereon at
26 the effective rate until the time it shall be made.

 

 

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1     (d) With respect to employees whose wages are funded as
2 participants under the Comprehensive Employment and Training
3 Act of 1973, as amended (P.L. 93-203, 87 Stat. 839, P.L.
4 93-567, 88 Stat. 1845), hereinafter referred to as CETA,
5 subsequent to October 1, 1978, and in instances where the board
6 has elected to establish a manpower program reserve, the board
7 shall compute the amounts necessary to be credited to the
8 manpower program reserves established and maintained as herein
9 provided, and shall make a periodic determination of the amount
10 of required contributions from the County to the reserve to be
11 reimbursed by the federal government in accordance with rules
12 and regulations established by the Secretary of the United
13 States Department of Labor or his designee, and certify the
14 results thereof to the County Board. Any such amounts shall
15 become a credit to the County and will be used to reduce the
16 amount which the County would otherwise contribute during
17 succeeding years for all employees.
18     (e) In lieu of establishing a manpower program reserve with
19 respect to employees whose wages are funded as participants
20 under the Comprehensive Employment and Training Act of 1973, as
21 authorized by subsection (d), the board may elect to establish
22 a special County contribution rate for all such employees. If
23 this option is elected, the County shall contribute to the Fund
24 from federal funds provided under the Comprehensive Employment
25 and Training Act program at the special rate so established and
26 such contributions shall become a credit to the County and be

 

 

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1 used to reduce the amount which the County would otherwise
2 contribute during succeeding years for all employees.
3 (Source: P.A. 83-1362.)
 
4     Section 90. The State Mandates Act is amended by adding
5 Section 8.31 as follows:
 
6     (30 ILCS 805/8.31 new)
7     Sec. 8.31. Exempt mandate. Notwithstanding Sections 6 and 8
8 of this Act, no reimbursement by the State is required for the
9 implementation of any mandate created by this amendatory Act of
10 the 95th General Assembly.

 

 

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1 INDEX
2 Statutes amended in order of appearance
3     40 ILCS 5/9-133 from Ch. 108 1/2, par. 9-133
4     40 ILCS 5/9-146.2
5     40 ILCS 5/9-169 from Ch. 108 1/2, par. 9-169
6     30 ILCS 805/8.31 new