97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB3332

 

Introduced 2/24/2011, by Rep. Raymond Poe

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/7-209  from Ch. 108 1/2, par. 7-209
30 ILCS 805/8.35 new

    Amends the Illinois Municipal Retirement Fund (IMRF) Article of the Illinois Pension Code. Authorizes the board of trustees of the Illinois Municipal Retirement Fund to adopt rules specifying a separate interest rate that will apply to voluntary additional contributions made by employees. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.


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

 

 

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,
3represented in the General Assembly:
 
4    Section 5. The Illinois Pension Code is amended by changing
5Section 7-209 as follows:
 
6    (40 ILCS 5/7-209)  (from Ch. 108 1/2, par. 7-209)
7    Sec. 7-209. Earnings and Interest.
8    (a) Balances at the beginning of each year which remain in
9employee reserves at the end of the year shall be credited with
10interest annually at the prescribed rate, except for those
11amounts due to the additional contributions made under
12subparagraph 2 of paragraph (a) of Section 7-173.
13    (b) Balances at the beginning of each year which remain at
14the end of the year in employee accounts due to additional
15contributions made under subparagraph 2 of paragraph (a) of
16Section 7-173 shall be credited annually at a rate of interest
17fixed by the Board, not to exceed the prescribed rate.
18    (c) (b) Municipality reserves shall be charged or credited,
19as the case may be, with interest at the prescribed rate
20applied to the balance therein at the beginning of the year.
21    (d) (c) Municipality accounts receivable shall be charged
22with interest at a rate of 1/2% per month before July 1, 1984,
23and 1% per month thereafter on the balance therein unpaid one

 

 

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1month or more. The unpaid balance shall include charges
2established retroactively because of failure of the
3municipality to report amounts which should be receivable.
4Credit balances shall be disregarded in this calculation.
5    (e) (d) The annuity total and permanent disability reserves
6shall be credited with interest at the prescribed rate at the
7end of each year. For purposes of this computation, the
8prescribed rate shall be applied to the balances therein at the
9beginning of the year.
10    (f) (e) Amounts credited or charged under subsection (a),
11(b), (c), or (d), or (e) of this Section shall be charged or
12credited to the earnings and experience variation reserve. Any
13remaining balance, in excess of the contingency balance
14established, shall be transferred to the municipality reserves
15in proportion to present values of the annuities of the
16annuitants of each participating municipality and
17participating instrumentality plus the balance in their
18municipality reserve.
19    (g) (f) The Board shall fix the rate of interest, to be
20charged on back, retroactive, or reinstatement contributions.
21(Source: P.A. 89-136, eff. 7-14-95.)
 
22    Section 90. The State Mandates Act is amended by adding
23Section 8.35 as follows:
 
24    (30 ILCS 805/8.35 new)

 

 

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1    Sec. 8.35. Exempt mandate. Notwithstanding Sections 6 and 8
2of this Act, no reimbursement by the State is required for the
3implementation of any mandate created by this amendatory Act of
4the 97th General Assembly.
 
5    Section 99. Effective date. This Act takes effect upon
6becoming law.