Rep. Tom Cross

Filed: 5/25/2011

 

 


 

 


 
09700SB0512ham001LRB097 06621 AMC 56256 a

1
AMENDMENT TO SENATE BILL 512

2    AMENDMENT NO. ______. Amend Senate Bill 512 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Public Labor Relations Act is
5amended by changing Section 15 as follows:
 
6    (5 ILCS 315/15)  (from Ch. 48, par. 1615)
7    Sec. 15. Act Takes Precedence.
8    (a) In case of any conflict between the provisions of this
9Act and any other law (other than Section 5 of the State
10Employees Group Insurance Act of 1971 and other than the
11changes made to the Illinois Pension Code by Public Act 96-889
12or by this amendatory Act of the 97th General Assembly this
13amendatory Act of the 96th General Assembly), executive order
14or administrative regulation relating to wages, hours and
15conditions of employment and employment relations, the
16provisions of this Act or any collective bargaining agreement

 

 

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1negotiated thereunder shall prevail and control. Nothing in
2this Act shall be construed to replace or diminish the rights
3of employees established by Sections 28 and 28a of the
4Metropolitan Transit Authority Act, Sections 2.15 through 2.19
5of the Regional Transportation Authority Act. The provisions of
6this Act are subject to Section 5 of the State Employees Group
7Insurance Act of 1971. Nothing in this Act shall be construed
8to replace the necessity of complaints against a sworn peace
9officer, as defined in Section 2(a) of the Uniform Peace
10Officer Disciplinary Act, from having a complaint supported by
11a sworn affidavit.
12    (b) Except as provided in subsection (a) above, any
13collective bargaining contract between a public employer and a
14labor organization executed pursuant to this Act shall
15supersede any contrary statutes, charters, ordinances, rules
16or regulations relating to wages, hours and conditions of
17employment and employment relations adopted by the public
18employer or its agents. Any collective bargaining agreement
19entered into prior to the effective date of this Act shall
20remain in full force during its duration.
21    (c) It is the public policy of this State, pursuant to
22paragraphs (h) and (i) of Section 6 of Article VII of the
23Illinois Constitution, that the provisions of this Act are the
24exclusive exercise by the State of powers and functions which
25might otherwise be exercised by home rule units. Such powers
26and functions may not be exercised concurrently, either

 

 

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1directly or indirectly, by any unit of local government,
2including any home rule unit, except as otherwise authorized by
3this Act.
4(Source: P.A. 95-331, eff. 8-21-07; 96-889, eff. 1-1-11.)
 
5    Section 10. The Illinois Pension Code is amended by
6changing Sections 1-160, 2-124, 2-126, 8-125, 8-173, 8-251,
79-128.1, 9-133, 9-160, 9-164, 9-169, 9-170, 9-174, 9-176,
89-185, 9-219, 9-220, 9-235, 10-103, 10-107, 11-124, 11-169,
911-170, 11-230, 12-116, 12-149, 12-150, 12-167, 12-168,
1012-169, 12-183, 12-190.3, 14-131, 14-133, 15-113.6, 15-116,
1115-117, 15-134, 15-136.3, 15-146, 15-155, 15-157, 16-122,
1216-136.2, 16-152, 16-158, 17-116, 17-130, 17-149.1, 18-131,
1320-121, 20-123, 20-124, 20-125, and 20-131 and by adding
14Sections 1-166, 1-167, 2-119.02, 2-119.03, 2-119.04, 2-124.1,
152-163, 8-103.1, 8-103.2, 8-103.3, 8-174.2, 8-190.1, 8-190.2,
168-190.3, 8-190.4, 8-255, 9-103.1, 9-103.2, 9-103.3, 9-170.3,
179-170.4, 9-170.5, 9-170.6, 9-170.7, 9-240, 10-109, 10-110,
1810-111, 11-123.1, 11-123.2, 11-123.3, 11-131.1, 11-131.2,
1911-131.3, 11-131.4, 11-235, 12-125.2, 12-125.3, 12-125.4,
2012-128.1, 12-128.2, 12-128.3, 12-151.3, 12-193.5, 14-108.2d,
2114-108.2e, 14-109.1, 14-131.1, 14-202, 15-103.4, 15-134.6,
2215-134.7, 15-136.5, 15-155.1, 15-199, 16-101.1, 16-133.6,
2316-133.7, 16-133.8, 16-133.10, 16-158.2, 16-204, 16-204.1,
2416-205, 16-206, 17-109.3, 17-109.4, 17-109.5, 17-130.4,
2517-130.5, 17-130.6, 17-130.7, 17-160, and 17-165 as follows:
 

 

 

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1    (40 ILCS 5/1-160)
2    Sec. 1-160. Provisions applicable to new hires.
3    (a) The provisions of this Section apply to a person who,
4on or after January 1, 2011, first becomes a member or a
5participant under any reciprocal retirement system or pension
6fund established under this Code, other than a retirement
7system or pension fund established under Article 2, 3, 4, 5, 6,
8or 18 of this Code or, after July 1, 2011, Article 15 or 16,
9notwithstanding any other provision of this Code to the
10contrary, but do not apply to any self-managed plan established
11under this Code, to any person with respect to service as a
12sheriff's law enforcement employee under Article 7, or to any
13participant of the retirement plan established under Section
1422-101.
15    (b) "Final average salary" means the average monthly (or
16annual) salary obtained by dividing the total salary or
17earnings calculated under the Article applicable to the member
18or participant during the 96 consecutive months (or 8
19consecutive years) of service within the last 120 months (or 10
20years) of service in which the total salary or earnings
21calculated under the applicable Article was the highest by the
22number of months (or years) of service in that period. For the
23purposes of a person who first becomes a member or participant
24of any retirement system or pension fund to which this Section
25applies on or after January 1, 2011, in this Code, "final

 

 

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1average salary" shall be substituted for the following:
2        (1) In Articles 7 (except for service as sheriff's law
3    enforcement employees) and 15, "final rate of earnings".
4        (2) In Articles 8, 9, 10, 11, and 12, "highest average
5    annual salary for any 4 consecutive years within the last
6    10 years of service immediately preceding the date of
7    withdrawal".
8        (3) In Article 13, "average final salary".
9        (4) In Article 14, "final average compensation".
10        (5) In Article 17, "average salary".
11        (6) In Section 22-207, "wages or salary received by him
12    at the date of retirement or discharge".
13    (b-5) Beginning on January 1, 2011, for all purposes under
14this Code (including without limitation the calculation of
15benefits and employee contributions), the annual earnings,
16salary, or wages (based on the plan year) of a member or
17participant to whom this Section applies shall not exceed
18$106,800; however, that amount shall annually thereafter be
19increased by the lesser of (i) 3% of that amount, including all
20previous adjustments, or (ii) one-half the annual unadjusted
21percentage increase (but not less than zero) in the consumer
22price index-u for the 12 months ending with the September
23preceding each November 1, including all previous adjustments.
24    For the purposes of this Section, "consumer price index-u"
25means the index published by the Bureau of Labor Statistics of
26the United States Department of Labor that measures the average

 

 

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1change in prices of goods and services purchased by all urban
2consumers, United States city average, all items, 1982-84 =
3100. The new amount resulting from each annual adjustment shall
4be determined by the Public Pension Division of the Department
5of Insurance and made available to the boards of the retirement
6systems and pension funds by November 1 of each year.
7    (c) A member or participant is entitled to a retirement
8annuity upon written application if he or she has attained age
967 and has at least 10 years of service credit and is otherwise
10eligible under the requirements of the applicable Article.
11    A member or participant who has attained age 62 and has at
12least 10 years of service credit and is otherwise eligible
13under the requirements of the applicable Article may elect to
14receive the lower retirement annuity provided in subsection (d)
15of this Section.
16    (d) The retirement annuity of a member or participant who
17is retiring after attaining age 62 with at least 10 years of
18service credit shall be reduced by one-half of 1% for each full
19month that the member's age is under age 67.
20    (e) Any retirement annuity or supplemental annuity shall be
21subject to annual increases on the January 1 occurring either
22on or after the attainment of age 67 or the first anniversary
23of the annuity start date, whichever is later. Each annual
24increase shall be calculated at 3% or one-half the annual
25unadjusted percentage increase (but not less than zero) in the
26consumer price index-u for the 12 months ending with the

 

 

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1September preceding each November 1, whichever is less, of the
2originally granted retirement annuity. If the annual
3unadjusted percentage change in the consumer price index-u for
4the 12 months ending with the September preceding each November
51 is zero or there is a decrease, then the annuity shall not be
6increased.
7    (f) The initial survivor's or widow's annuity of an
8otherwise eligible survivor or widow of a retired member or
9participant who first became a member or participant on or
10after January 1, 2011 shall be in the amount of 66 2/3% of the
11retired member's or participant's retirement annuity at the
12date of death. In the case of the death of a member or
13participant who has not retired and who first became a member
14or participant on or after January 1, 2011, eligibility for a
15survivor's or widow's annuity shall be determined by the
16applicable Article of this Code. The initial benefit shall be
1766 2/3% of the earned annuity without a reduction due to age. A
18child's annuity of an otherwise eligible child shall be in the
19amount prescribed under each Article if applicable. Any
20survivor's or widow's annuity shall be increased (1) on each
21January 1 occurring on or after the commencement of the annuity
22if the deceased member died while receiving a retirement
23annuity or (2) in other cases, on each January 1 occurring
24after the first anniversary of the commencement of the annuity.
25Each annual increase shall be calculated at 3% or one-half the
26annual unadjusted percentage increase (but not less than zero)

 

 

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1in the consumer price index-u for the 12 months ending with the
2September preceding each November 1, whichever is less, of the
3originally granted survivor's annuity. If the annual
4unadjusted percentage change in the consumer price index-u for
5the 12 months ending with the September preceding each November
61 is zero or there is a decrease, then the annuity shall not be
7increased.
8    (g) The benefits in Section 14-110 apply only if the person
9is a State policeman, a fire fighter in the fire protection
10service of a department, or a security employee of the
11Department of Corrections or the Department of Juvenile
12Justice, as those terms are defined in subsection (b) of
13Section 14-110. A person who meets the requirements of this
14Section is entitled to an annuity calculated under the
15provisions of Section 14-110, in lieu of the regular or minimum
16retirement annuity, only if the person has withdrawn from
17service with not less than 20 years of eligible creditable
18service and has attained age 60, regardless of whether the
19attainment of age 60 occurs while the person is still in
20service.
21    (h) If a person who first becomes a member or a participant
22of a retirement system or pension fund subject to this Section
23on or after January 1, 2011 is receiving a retirement annuity
24or retirement pension under that system or fund and becomes a
25member or participant under any other system or fund created by
26this Code and is employed on a full-time basis, except for

 

 

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1those members or participants exempted from the provisions of
2this Section under subsection (a) of this Section, then the
3person's retirement annuity or retirement pension under that
4system or fund shall be suspended during that employment. Upon
5termination of that employment, the person's retirement
6annuity or retirement pension payments shall resume and be
7recalculated if recalculation is provided for under the
8applicable Article of this Code.
9    (i) Notwithstanding any other provision of this Section, a
10person who first becomes a participant of the retirement system
11established under Article 15 on or after January 1, 2011 shall
12have the option to enroll in the self-managed plan created
13under Section 15-158.2 of this Code.
14    (j) In the case of a conflict between the provisions of
15this Section and any other provision of this Code, the
16provisions of this Section shall control.
17(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
 
18    (40 ILCS 5/1-166 new)
19    Sec. 1-166. Actuarial review. The Commission on Government
20Forecasting and Accountability shall retain an independent
21actuarial firm that does not provide valuation services to any
22State-funded retirement systems, and that firm shall review and
23comment on the assumptions and methodologies used by those
24systems in determining liabilities and contributions. The
25actuarial firm shall report to the Commission by July 1, 2016

 

 

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1and every 3 years thereafter. The report shall include, but not
2be limited to: an evaluation of the sustainability of long-term
3funding schedules as compared to anticipated State revenues
4over the same projection period; a comparison of expected rates
5of asset returns among the various funds including comments on
6the rationale for any differences in such returns; and an
7evaluation of long-term payroll projections compared with
8anticipated individual salary growth and the revenue sources
9supporting such payrolls.
 
10    (40 ILCS 5/1-167 new)
11    Sec. 1-167. Maximum benefit limitation. In no circumstance
12shall this amendatory Act of the 97th General Assembly result
13in a defined benefit pension or annuity based on a combination
14of the traditional benefit package and the revised benefit
15package or reformed benefit package, as applicable, that would
16be greater than what the participant would have received by
17remaining in the traditional benefit package.
 
18    (40 ILCS 5/2-119.02 new)
19    Sec. 2-119.02. Benefit accruals after July 1, 2012.
20    (a) Each participant under this Article, other than a
21person who first becomes a participant on or after January 1,
222011, shall elect which retirement program he or she wishes to
23participate in with respect to all periods of service occurring
24after July 1, 2012. The retirement program election made by the

 

 

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1participant must be made within 6 months of January 1, 2012.
2The participant shall elect one of the following retirement
3programs:
4        (1) the traditional benefit package provided by the
5    System prior to Public Act 96-889;
6        (2) the revised defined benefit package provided by the
7    System to new employees under Public Act 96-889 and Public
8    Act 96-1490; or
9        (3) the self-managed plan provided by the System under
10    Section 2-119.03.
11    (b) A person who first becomes a participant of the System
12on or after January 1, 2011, shall elect which retirement
13program he or she wishes to participate in with respect to all
14periods of service occurring after July 1, 2012. The
15participant shall elect one of the retirement programs provided
16in paragraph (2) or (3) of subsection (a) of this Section. The
17participant must make that election (i) within 6 months after
18the participant's first day of service and (ii) if applicable,
19every 3 years thereafter.
20    (c) The participant election authorized by this Section is
21an irrevocable election, except any individual making an
22election for the retirement program described under paragraph
23(1) or (2) of subsection (a) shall make an election for the
24period of 3 years, and shall make subsequent elections every 3
25years during a 6-month period prescribed by the System. The
26election shall be made in the manner prescribed by the System.

 

 

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1Any participant who fails to make the initial election shall,
2by default, participate in the benefit program provided under
3paragraph (2) of subsection (a) of this Section.
4    (d) Participants who have already made an election pursuant
5to subsection (a) or (b) shall be given the opportunity to make
6a new election as follows:
7        (1) each participant in the traditional defined
8    benefit package provided under paragraph (1) of subsection
9    (a) of this Section shall have the opportunity to elect to
10    terminate participation in the traditional defined benefit
11    package and to elect to have retirement benefits for future
12    service provided under either the revised defined benefit
13    package provided under paragraph (2) of subsection (a) of
14    this Section or the self-managed plan provided under
15    paragraph (3) of subsection (a) of this Section;
16        (2) each participant in the revised defined benefit
17    package provided under paragraph (2) of subsection (a) of
18    this Section shall have the opportunity to elect to
19    terminate participation in the revised defined benefit
20    package and to elect to have retirement benefits for future
21    service provided under the self-managed plan provided
22    under paragraph (3) of subsection (a) of this Section; and
23        (3) the elections permitted under paragraphs (1) and
24    (2) must be made during a 6-month period in the manner
25    prescribed by the System.
26    (e) If a participant with an accrued benefit under the

 

 

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1traditional benefit package provided by the System prior to
2Public Act 96-889 elects the revised defined benefit package
3provided under paragraph (2) of subsection (a) of this Section,
4the participant's total accrued benefit for purposes of
5determining an annuity shall be the sum of (i) the
6participant's benefit accruals before July 1, 2012, based on
7the participant's pay and service and frozen with respect to
8pay after that date and (ii) the participant's benefit accruals
9based on pay and service on and after July 1, 2012, as modified
10by the rules provided in Public Act 96-889. All rights and
11features provided under the traditional benefit package will be
12preserved with respect to benefits earned under such package
13completed prior to the election to participate in the revised
14benefit package. Furthermore, the participant shall be
15entitled to the benefit of the survivor's annuity provided
16under Public Act 96-889 and Public Act 96-1490. All service
17completed under the System shall count for purposes of
18determining retirement eligibility and vesting under both the
19traditional benefit package and the revised benefit package,
20provided that the vesting requirements of the traditional
21benefit package shall continue to govern vesting for members in
22the revised benefit package.
23    (f) If a participant with an accrued benefit under the
24traditional benefit package or the revised defined benefit
25package elects the self-managed plan provided under paragraph
26(3) of subsection (a) of this Section, the participant's total

 

 

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1accrued benefit for purposes of determining an annuity shall be
2the participant's benefit accruals before July 1, 2012, based
3on the participant's pay and service and frozen with respect to
4pay after that date. However, the participant shall also have
5an accrued self-managed plan benefit as specified in subsection
6(g) of Section 2-119.03, for periods of service on or after
7July 1, 2012. All rights and features provided under the
8traditional benefit package will be preserved with respect to
9benefits earned under such package with respect to service
10completed prior to the election to participate in the
11self-managed plan. All service completed under the traditional
12benefit package and the self-managed plan shall count for
13purposes of determining retirement eligibility and vesting
14under both the traditional benefit package and the self-managed
15plan.
16    (g) An individual who is a participant (as that term is
17defined in Section 2-107 of this Article) in the System, but is
18not a member of the General Assembly on July 1, 2012, shall
19elect, based on the eligibility criteria specified in this
20Code, one of the 3 retirement programs provided under
21paragraphs (1), (2), or (3) of subsection (a) of this Section
22within 6 months after becoming a member of the General
23Assembly.
 
24    (40 ILCS 5/2-119.03 new)
25    Sec. 2-119.03. Self-managed plan.

 

 

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1    (a) The Illinois State Board of Investment created under
2Article 22A of this Code shall establish and administer a
3self-managed plan on behalf of the retirement system
4established under this Article. The plan shall offer
5participating employees the opportunity to accumulate assets
6for retirement through a combination of employee and employer
7contributions that may be invested in mutual funds, collective
8investment funds, or other investment products and may be used
9to purchase annuity contracts that are fixed, variable, or a
10combination thereof. The plan must be qualified under the
11Internal Revenue Code of 1986.
12    (b) The Illinois State Board of Investment shall be the
13plan sponsor for the self-managed plan and shall prepare a plan
14document and prescribe the rules and procedures that are
15necessary or desirable for the administration of the
16self-managed plan.
17    (c) An employee eligible to participate in the self-managed
18plan must make a written election in accordance with the
19provisions of Section 2-119.02 and the procedures established
20by the retirement system. Participation in the self-managed
21plan by an electing employee shall begin on the first of the
22month following the date the employee's election is filed with
23the retirement system, but in no case prior to July 1, 2012.
24    (d) Employees who are participating in the program must be
25allowed to direct the transfer of their account balances among
26the various investment options offered, subject to applicable

 

 

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1contractual provisions. The participant shall not be deemed a
2fiduciary by reason of providing investment direction. A person
3who is a fiduciary, including the plan sponsor, shall not be
4liable for any loss resulting from the investment direction of
5the employee and shall not be deemed to have breached any
6fiduciary duty by acting in accordance with that direction. The
7retirement system, the Illinois State Board of Investment, and
8the employer do not guarantee any of the investments in the
9employee's account balances.
10    (e) The self-managed plan shall be funded by contributions
11pursuant to salary reduction agreements for employees
12participating in the self-managed plan and employer
13contributions as provided in Section 2-124.1 of this Code.
14Employees may make additional contributions to the
15self-managed plan in accordance with the procedures prescribed
16by the plan sponsor, to the extent permitted under rules
17prescribed by the plan sponsor. Employee and employer
18contributions shall be paid into the participant's
19self-managed plan accounts in a manner to be prescribed by the
20plan sponsor.
21    (f) A participant in the self-managed plan becomes vested
22in the employer contributions credited to his or her accounts
23in the self-managed plan on the earliest to occur of the
24following: (1) completion of 5 years of service with an
25employer covered by Article 2 of this Code or (2) if the
26participant has completed at least 1 1/2 years of service, the

 

 

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1death of the participating employee covered by Article 2 of
2this Code.
3    (g) If a participant who is vested in employer
4contributions terminates employment, the participant shall be
5entitled to a benefit that is based on the account values
6attributable to both employer and employee contributions and
7any investment return on those contributions. If a participant
8who is not vested in employer contributions terminates
9employment, the participant shall be entitled to a benefit
10based solely on the account values attributable to the
11employee's contributions and any investment return on those
12contributions, and the employer contributions and any
13investment return on those contributions shall be forfeited.
14Any employer contributions that are forfeited shall be held in
15escrow by the company investing those contributions and shall
16be used as directed by the System for future allocations of
17employer contributions.
18    The self-managed plan shall be funded by contributions
19pursuant to salary reduction agreements for employees
20participating in the self-managed plan and employer
21contributions as provided in this Section.
22    This required contribution shall be made as an "employer
23pick up" under Section 414(h) of the Internal Revenue Code of
241986 or any successor Section thereof. In no event shall a
25participant have an option of receiving these amounts in cash.
26The program shall provide for employer contributions to be

 

 

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1credited to each self-managed plan participant at a rate of 6%
2of the participant's salary. The amounts so credited shall be
3paid into the participant's self-managed plan account in a
4manner to be prescribed by the System. The program shall also
5provide for employer contributions to be used by the System to
6provide disability benefits for the participant. Prior to the
7beginning of each plan year under the self-managed plan, the
8Board of Trustees shall determine, as a percentage of salary,
9the amount of employer contributions to be allocated during
10that plan year for providing disability benefits for
11participants in the self-managed plan.
12    The State of Illinois shall make contributions by
13appropriations to the System of the employer contributions
14required for employees who participate in the self-managed plan
15under this Section. The amount required shall be certified by
16the Board of Trustees of the System and paid by the State in
17accordance with Section 2-124. The System shall not be
18obligated to remit the required employer contributions to any
19person or entity until it has received the required employer
20contributions from the State.
21    A participant under this Section shall be entitled to the
22benefits of Article 20 of this Code.
 
23    (40 ILCS 5/2-119.04 new)
24    Sec. 2-119.04. Minimum benefit and allocation provisions.
25Each participant in the System shall receive a minimum benefit

 

 

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1or allocation determined as follows:
2        (1) If the participant is participating in the
3    traditional benefit package provided under paragraph (1)
4    of subsection (a) of Section 2-119.02 of this Code or the
5    revised defined benefit package provided under paragraph
6    (2) of subsection (a) of Section 2-119.02 of this Code, the
7    participant shall receive a minimum benefit (commencing on
8    his or her Social Security retirement age) for the
9    employee's period of service covered by each such defined
10    benefit package that is equal to the annual primary
11    insurance amount the participant would have under Social
12    Security for such period of service. For the purposes of
13    this item (1), the primary insurance amount a participant
14    would have under Social Security shall be calculated so
15    that the System meets the requirements necessary to be
16    considered a "retirement system" under Section
17    3121(b)(7)(F) of the Internal Revenue Code and the
18    regulations in effect thereunder.
19        (2) If the participant is participating in the
20    self-managed plan provided under Section 2-119.03 of this
21    Code, the member shall receive a minimum allocation equal
22    to 7.5% of the participant's compensation for service
23    during the period. All contributions shall be taken into
24    account for this purpose. For the purposes of this
25    paragraph (2), the minimum allocation shall be calculated
26    so that the System meets the requirements necessary to be

 

 

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1    considered a "retirement system" under Section
2    3121(b)(7)(F) of the Internal Revenue Code and the
3    regulations in effect thereunder.
 
4    (40 ILCS 5/2-124)  (from Ch. 108 1/2, par. 2-124)
5    Sec. 2-124. Contributions by State.
6    (a) The State shall make contributions to the System by
7appropriations of amounts which, together with the
8contributions of participants, interest earned on investments,
9and other income will meet the cost of maintaining and
10administering the System on a 90% funded basis in accordance
11with actuarial recommendations.
12    (b) The Board shall determine the amount of State
13contributions required for each fiscal year on the basis of the
14actuarial tables and other assumptions adopted by the Board and
15the prescribed rate of interest, using the formula in
16subsection (c).
17    (c) For State fiscal years 2016 2012 through 2045, the
18minimum contribution to the System to be made by the State for
19each fiscal year shall be an amount equal to the sum of (i) the
20minimum employer contribution determined under Section
212-124.1, plus (ii) an amount determined by the System to be
22sufficient to bring the total assets of the System up to 90% of
23the total actuarial liabilities of the System by the end of
24State fiscal year 2045. In making the these determinations
25under item (ii) of this subsection (c), the required State

 

 

09700SB0512ham001- 21 -LRB097 06621 AMC 56256 a

1contribution shall be calculated each year as a level
2percentage of revenue provided by the individual income tax,
3sales tax, and corporate income tax assuming a 2.3% average
4annual growth rate in these revenues payroll over the years
5remaining to and including fiscal year 2045 and shall be
6determined under the projected unit credit actuarial cost
7method. The contribution required in each fiscal year under
8this subsection (c) must not be less than 100% of the prior
9fiscal year's contribution.
10    For State fiscal years 2013 1996 through 2015 2005, the
11State contribution to the System, as a percentage of State
12revenue from the individual income tax, sales tax, and
13corporate income tax the applicable employee payroll, shall be
14increased in equal annual increments so that by State fiscal
15year 2016 2011, the State is contributing at the rate required
16under this Section.
17    Notwithstanding any other provision of this Article, the
18total required State contribution for State fiscal year 2006 is
19$4,157,000.
20    Notwithstanding any other provision of this Article, the
21total required State contribution for State fiscal year 2007 is
22$5,220,300.
23    For each of State fiscal years 2008 through 2009, the State
24contribution to the System, as a percentage of the applicable
25employee payroll, shall be increased in equal annual increments
26from the required State contribution for State fiscal year

 

 

09700SB0512ham001- 22 -LRB097 06621 AMC 56256 a

12007, so that by State fiscal year 2011, the State is
2contributing at the rate otherwise required under this Section.
3    Notwithstanding any other provision of this Article, the
4total required State contribution for State fiscal year 2010 is
5$10,454,000 and shall be made from the proceeds of bonds sold
6in fiscal year 2010 pursuant to Section 7.2 of the General
7Obligation Bond Act, less (i) the pro rata share of bond sale
8expenses determined by the System's share of total bond
9proceeds, (ii) any amounts received from the General Revenue
10Fund in fiscal year 2010, and (iii) any reduction in bond
11proceeds due to the issuance of discounted bonds, if
12applicable.
13    Notwithstanding any other provision of this Article, the
14total required State contribution for State fiscal year 2011 is
15the amount recertified by the System on or before April 1, 2011
16pursuant to Section 2-134 and shall be made from the proceeds
17of bonds sold in fiscal year 2011 pursuant to Section 7.2 of
18the General Obligation Bond Act, less (i) the pro rata share of
19bond sale expenses determined by the System's share of total
20bond proceeds, (ii) any amounts received from the General
21Revenue Fund in fiscal year 2011, and (iii) any reduction in
22bond proceeds due to the issuance of discounted bonds, if
23applicable.
24    Beginning in State fiscal year 2046, the minimum State
25contribution shall be an amount equal to the minimum employer
26contribution determined under Section 2-124.1, plus an amount

 

 

09700SB0512ham001- 23 -LRB097 06621 AMC 56256 a

1sufficient for each fiscal year shall be the amount needed to
2maintain the total assets of the System at 90% of the total
3actuarial liabilities of the System.
4    Amounts received by the System pursuant to Section 25 of
5the Budget Stabilization Act or Section 8.12 of the State
6Finance Act in any fiscal year do not reduce and do not
7constitute payment of any portion of the minimum State
8contribution required under this Article in that fiscal year.
9Such amounts shall not reduce, and shall not be included in the
10calculation of, the required State contributions under this
11Article in any future year until the System has reached a
12funding ratio of at least 90%. A reference in this Article to
13the "required State contribution" or any substantially similar
14term does not include or apply to any amounts payable to the
15System under Section 25 of the Budget Stabilization Act.
16    Notwithstanding any other provision of this Section, the
17required State contribution for State fiscal year 2005 and for
18fiscal year 2008 and each fiscal year thereafter until fiscal
19year 2013, as calculated under this Section and certified under
20Section 2-134, shall not exceed an amount equal to (i) the
21amount of the required State contribution that would have been
22calculated under this Section for that fiscal year if the
23System had not received any payments under subsection (d) of
24Section 7.2 of the General Obligation Bond Act, minus (ii) the
25portion of the State's total debt service payments for that
26fiscal year on the bonds issued in fiscal year 2003 for the

 

 

09700SB0512ham001- 24 -LRB097 06621 AMC 56256 a

1purposes of that Section 7.2, as determined and certified by
2the Comptroller, that is the same as the System's portion of
3the total moneys distributed under subsection (d) of Section
47.2 of the General Obligation Bond Act. In determining this
5maximum for State fiscal years 2008 through 2010, however, the
6amount referred to in item (i) shall be increased, as a
7percentage of the applicable employee payroll, in equal
8increments calculated from the sum of the required State
9contribution for State fiscal year 2007 plus the applicable
10portion of the State's total debt service payments for fiscal
11year 2007 on the bonds issued in fiscal year 2003 for the
12purposes of Section 7.2 of the General Obligation Bond Act, so
13that, by State fiscal year 2011, the State is contributing at
14the rate otherwise required under this Section.
15    (d) For purposes of determining the required State
16contribution to the System, the value of the System's assets
17shall be equal to the actuarial value of the System's assets,
18which shall be calculated as follows:
19    As of June 30, 2008, the actuarial value of the System's
20assets shall be equal to the market value of the assets as of
21that date. In determining the actuarial value of the System's
22assets for fiscal years after June 30, 2008, any actuarial
23gains or losses from investment return incurred in a fiscal
24year shall be recognized in equal annual amounts over the
255-year period following that fiscal year.
26    (e) For purposes of determining the required State

 

 

09700SB0512ham001- 25 -LRB097 06621 AMC 56256 a

1contribution to the system for a particular year, the actuarial
2value of assets shall be assumed to earn a rate of return equal
3to the system's actuarially assumed rate of return.
4(Source: P.A. 95-950, eff. 8-29-08; 96-43, eff. 7-15-09;
596-1497, eff. 1-14-11; 96-1511, eff. 1-27-11; 96-1554, eff.
63-18-11; revised 4-6-11.)
 
7    (40 ILCS 5/2-124.1 new)
8    Sec. 2-124.1. Minimum employer contribution. The following
9rules apply in determining the minimum employer contribution in
10State fiscal year 2013 and each year thereafter.
11        (1) With respect to employees who elect the revised
12    defined benefit package provided under paragraph (2) of
13    subsection (a) of Section 2-109.02 of this Code, an amount
14    equal to 6% of the pensionable payroll of the employee
15    group.
16        (2) With respect to employees who elect the traditional
17    defined benefit package provided under paragraph (1) of
18    subsection (a) of Section 2-109.02 of this Code, an amount
19    equal to 6% of the pensionable payroll of the employee
20    group.
21        (3) With respect to employees who elect the
22    self-managed plan provided under paragraph (3) of
23    subsection (a) of Section 2-109.02 of this Code, an amount
24    equal to (i) 6% of the pensionable payroll of the employee
25    group and (ii) an amount determined by the System that is

 

 

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1    necessary to finance the disability plan provided for that
2    group under this Article.
 
3    (40 ILCS 5/2-126)  (from Ch. 108 1/2, par. 2-126)
4    Sec. 2-126. Contributions by participants.
5    (a) Each participant shall contribute toward the cost of
6his or her retirement annuity a percentage of each payment of
7salary received by him or her for service as a member as
8follows: for service between October 31, 1947 and January 1,
91959, 5%; for service between January 1, 1959 and June 30,
101969, 6%; for service between July 1, 1969 and January 10,
111973, 6 1/2%; for service after January 10, 1973, 7%; for
12service after December 31, 1981, 8 1/2%.
13    (b) Beginning August 2, 1949, each male participant, and
14from July 1, 1971, each female participant shall contribute
15towards the cost of the survivor's annuity 2% of salary.
16    A participant who has no eligible survivor's annuity
17beneficiary may elect to cease making contributions for
18survivor's annuity under this subsection. A survivor's annuity
19shall not be payable upon the death of a person who has made
20this election, unless prior to that death the election has been
21revoked and the amount of the contributions that would have
22been paid under this subsection in the absence of the election
23is paid to the System, together with interest at the rate of 4%
24per year from the date the contributions would have been made
25to the date of payment.

 

 

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1    (c) Beginning July 1, 1967, each participant shall
2contribute 1% of salary towards the cost of automatic increase
3in annuity provided in Section 2-119.1. These contributions
4shall be made concurrently with contributions for retirement
5annuity purposes.
6    (d) In addition, each participant serving as an officer of
7the General Assembly shall contribute, for the same purposes
8and at the same rates as are required of a regular participant,
9on each additional payment received as an officer. If the
10participant serves as an officer for at least 2 but less than 4
11years, he or she shall contribute an amount equal to the amount
12that would have been contributed had the participant served as
13an officer for 4 years. Persons who serve as officers in the
1487th General Assembly but cannot receive the additional payment
15to officers because of the ban on increases in salary during
16their terms may nonetheless make contributions based on those
17additional payments for the purpose of having the additional
18payments included in their highest salary for annuity purposes;
19however, persons electing to make these additional
20contributions must also pay an amount representing the
21corresponding employer contributions, as calculated by the
22System.
23    (e) Notwithstanding any other provision of this Article,
24the required contribution of a participant who first becomes a
25participant on or after January 1, 2011 shall not exceed the
26contribution that would be due under this Article if that

 

 

09700SB0512ham001- 28 -LRB097 06621 AMC 56256 a

1participant's highest salary for annuity purposes were
2$106,800, plus any increases in that amount under Section
32-108.1.
4    Notwithstanding anything in this Section to the contrary,
5effective with terms of office that end after January 1, 2012,
6all participants shall be required to make the following
7contributions:
8        (1) Participants who elect the traditional defined
9    benefit package provided under paragraph (1) of subsection
10    (a) of Section 2-109.2 of this Code shall contribute:
11            (A) In fiscal year 2013, fiscal year 2014, and
12        fiscal year 2015, an amount equal to 24.89% of
13        compensation.
14            (B) In fiscal year 2016 and in each fiscal year
15        thereafter, a percentage of compensation equal to the
16        actuarially determined normal cost of the traditional
17        defined benefit package, minus employer contributions
18        under paragraph (2) of subsection (a) of Section
19        2-124.1, provided that no participant's contribution
20        shall be less than 6% of pensionable payroll. The
21        System shall certify the actuarially determined normal
22        cost of the traditional defined benefit package and the
23        amount of the required employee contributions by
24        January 1, 2015 and every 3 years thereafter.
25        (2) Participants who elect the revised defined benefit
26    package provided under paragraph (2) of subsection (a) of

 

 

09700SB0512ham001- 29 -LRB097 06621 AMC 56256 a

1    Section 2-109.02 of this Code shall contribute an amount
2    equal to the actuarially determined normal cost of the
3    revised defined benefit package, minus employer
4    contributions under paragraph (1) of subsection (a) of
5    Section 2-124.1, provided that no participant's
6    contribution shall be less than 6% of pensionable payroll.
7    The System shall certify the actuarially determined normal
8    cost of the revised defined benefit package and the amount
9    of the required employee contribution for fiscal year 2013
10    and every 3 years thereafter.
11        (3) Participants who elect the self-managed plan
12    provided under paragraph (3) of subsection (a) of Section
13    2-109.02 of this Code shall contribute a minimum amount
14    equal to 6% of compensation.
15    Participants who elect the self-managed plan provided
16under paragraph (2) of subsection (a) of Section 2-109.02 of
17this Code may elect to increase the employee contribution in
18accordance with rules prescribed by the Board and the plan
19sponsor.
20(Source: P.A. 96-1490, eff. 1-1-11.)
 
21    (40 ILCS 5/2-163 new)
22    Sec. 2-163. Qualified plan status. No provision of this
23Article shall be interpreted in a way that would cause the
24System to cease to be a qualified plan under Section 401(a) of
25the Internal Revenue Code.
 

 

 

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1    (40 ILCS 5/8-103.1 new)
2    Sec. 8-103.1. Reformed benefit package. "Reformed benefit
3package": The defined benefit retirement program maintained
4under the Fund for employees who first become participants in
5the Fund on or after January 1, 2011.
 
6    (40 ILCS 5/8-103.2 new)
7    Sec. 8-103.2. Self-managed plan. "Self-managed plan": The
8defined contribution retirement program maintained under the
9Fund as described in Section 8-190.2. The self-managed plan
10does not include retirement annuities or survivor's,
11disability, or insurance benefits payable directly from the
12Fund as provided by this Article.
 
13    (40 ILCS 5/8-103.3 new)
14    Sec. 8-103.3. Traditional benefit package. "Traditional
15benefit package": The defined benefit retirement program
16maintained under the Fund for employees who first became
17participants in the Fund before January 1, 2011.
 
18    (40 ILCS 5/8-125)  (from Ch. 108 1/2, par. 8-125)
19    Sec. 8-125. Annuity.
20    "Annuity": Equal monthly payments for life, unless
21otherwise specified.
22    For annuities taking effect before January 1, 1998, the

 

 

09700SB0512ham001- 31 -LRB097 06621 AMC 56256 a

1first payment shall be due and payable one month after the
2occurrence of the event upon which payment of the annuity
3depends, and the last payment shall be due and payable as of
4the date of the annuitant's death and shall be prorated from
5the date of the last preceding payment to the date of death for
6deaths that occur on or before March 31, 2000. All payments
7made on or after April 1, 2000 shall be made on the first day of
8the calendar month and the last payment shall be made on the
9first day of the calendar month in which the annuity payment
10period ends. All payments for months beginning with April of
112000 shall be for the entire calendar month, without proration.
12A pro rata amount shall be paid for that part of the month from
13the March 2000 annuity payment date through March 31, 2000.
14    For annuities taking effect on or after January 1, 1998,
15payments shall be made as of the first day of the calendar
16month, with the first payment to be made as of the first day of
17the calendar month coincidental with or next following the
18first day of the annuity payment period, and the last payment
19to be made as of the first day of the calendar month in which
20the annuity payment period ends. For annuities taking effect on
21or after January 1, 1998, all payments shall be for the entire
22calendar month, without proration.
23    For the purposes of this Section, the "annuity payment
24period" means the period beginning on the day after the
25occurrence of the event upon which payment of the annuity
26depends, and ending on the day upon which the death of the

 

 

09700SB0512ham001- 32 -LRB097 06621 AMC 56256 a

1annuitant or other event terminating the annuity occurs.
2    The provisions of this Section do not apply to participants
3who are participating in the self-managed plan.
4(Source: P.A. 90-31, eff. 6-27-97; 91-887, eff. 7-6-00.)
 
5    (40 ILCS 5/8-173)  (from Ch. 108 1/2, par. 8-173)
6    Sec. 8-173. Financing; tax levy.
7    (a) Except as provided in subsection (f) of this Section,
8the city council of the city shall levy a tax annually upon all
9taxable property in the city at a rate that will produce a sum
10which, when added to the amounts deducted from the salaries of
11the employees or otherwise contributed by them and the amounts
12deposited under subsection (f), will be sufficient for the
13requirements of this Article, but which when extended will
14produce an amount not to exceed the greater of the following:
15(a) the sum obtained by the levy of a tax of .1093% of the
16value, as equalized or assessed by the Department of Revenue,
17of all taxable property within such city, or (b) the sum of
18$12,000,000. However any city in which a Fund has been
19established and in operation under this Article for more than 3
20years prior to 1970 shall levy for the year 1970 a tax at a rate
21on the dollar of assessed valuation of all taxable property
22that will produce, when extended, an amount not to exceed 1.2
23times the total amount of contributions made by employees to
24the Fund for annuity purposes in the calendar year 1968, and,
25for the year 1971 and 1972 such levy that will produce, when

 

 

09700SB0512ham001- 33 -LRB097 06621 AMC 56256 a

1extended, an amount not to exceed 1.3 times the total amount of
2contributions made by employees to the Fund for annuity
3purposes in the calendar years 1969 and 1970, respectively; and
4for the year 1973 an amount not to exceed 1.365 times such
5total amount of contributions made by employees for annuity
6purposes in the calendar year 1971; and for the year 1974 an
7amount not to exceed 1.430 times such total amount of
8contributions made by employees for annuity purposes in the
9calendar year 1972; and for the year 1975 an amount not to
10exceed 1.495 times such total amount of contributions made by
11employees for annuity purposes in the calendar year 1973; and
12for the year 1976 an amount not to exceed 1.560 times such
13total amount of contributions made by employees for annuity
14purposes in the calendar year 1974; and for the year 1977 an
15amount not to exceed 1.625 times such total amount of
16contributions made by employees for annuity purposes in the
17calendar year 1975; and for the year 1978 and each year
18thereafter, such levy as will produce, when extended, an amount
19not to exceed the total amount of contributions made by or on
20behalf of employees to the Fund for annuity purposes in the
21calendar year 2 years prior to the year for which the annual
22applicable tax is levied, multiplied by 1.690 for the years
231978 through 1998 and by 1.250 for the years year 1999 through
242012. For 2013 and for each year thereafter, the amount levied
25shall be equal to the amount levied in 2010.
26    The tax shall be levied and collected in like manner with

 

 

09700SB0512ham001- 34 -LRB097 06621 AMC 56256 a

1the general taxes of the city, and shall be exclusive of and in
2addition to the amount of tax the city is now or may hereafter
3be authorized to levy for general purposes under any laws which
4may limit the amount of tax which the city may levy for general
5purposes. The county clerk of the county in which the city is
6located, in reducing tax levies under the provisions of any Act
7concerning the levy and extension of taxes, shall not consider
8the tax herein provided for as a part of the general tax levy
9for city purposes, and shall not include the same within any
10limitation of the percent of the assessed valuation upon which
11taxes are required to be extended for such city.
12    Revenues derived from such tax shall be paid to the city
13treasurer of the city as collected and held by him for the
14benefit of the fund.
15    If the payments on account of taxes are insufficient during
16any year to meet the requirements of this Article, the city may
17issue tax anticipation warrants against the current tax levy.
18    (b) On or before January 10, annually, the board shall
19notify the city council of the requirements of this Article
20that the tax herein provided shall be levied for that current
21year. The board shall compute the amounts necessary to be
22credited to the reserves established and maintained as herein
23provided, and shall make an annual determination of the amount
24of the required city contributions, and certify the results
25thereof to the city council.
26    (c) In respect to employees of the city who are transferred

 

 

09700SB0512ham001- 35 -LRB097 06621 AMC 56256 a

1to the employment of a park district by virtue of the "Exchange
2of Functions Act of 1957", the corporate authorities of the
3park district shall annually levy a tax upon all the taxable
4property in the park district at such rate per cent of the
5value of such property, as equalized or assessed by the
6Department of Revenue, as shall be sufficient, when added to
7the amounts deducted from their salaries and otherwise
8contributed by them to provide the benefits to which they and
9their dependents and beneficiaries are entitled under this
10Article. The city shall not levy a tax hereunder in respect to
11such employees.
12    The tax so levied by the park district shall be in addition
13to and exclusive of all other taxes authorized to be levied by
14the park district for corporate, annuity fund, or other
15purposes. The county clerk of the county in which the park
16district is located, in reducing any tax levied under the
17provisions of any act concerning the levy and extension of
18taxes shall not consider such tax as part of the general tax
19levy for park purposes, and shall not include the same in any
20limitation of the per cent of the assessed valuation upon which
21taxes are required to be extended for the park district. The
22proceeds of the tax levied by the park district, upon receipt
23by the district, shall be immediately paid over to the city
24treasurer of the city for the uses and purposes of the fund.
25    The various sums to be contributed by the city and park
26district and allocated for the purposes of this Article, and

 

 

09700SB0512ham001- 36 -LRB097 06621 AMC 56256 a

1any interest to be contributed by the city, shall be derived
2from the revenue from the taxes authorized in this Section or
3otherwise as expressly provided in this Section.
4    If it is not possible or practicable for the city to make
5contributions for age and service annuity and widow's annuity
6at the same time that employee contributions are made for such
7purposes, such city contributions shall be construed to be due
8and payable as of the end of the fiscal year for which the tax
9is levied and shall accrue thereafter with interest at the
10effective rate until paid.
11    (d) With respect to employees whose wages are funded as
12participants under the Comprehensive Employment and Training
13Act of 1973, as amended (P.L. 93-203, 87 Stat. 839, P.L.
1493-567, 88 Stat. 1845), hereinafter referred to as CETA,
15subsequent to October 1, 1978, and in instances where the board
16has elected to establish a manpower program reserve, the board
17shall compute the amounts necessary to be credited to the
18manpower program reserves established and maintained as herein
19provided, and shall make a periodic determination of the amount
20of required contributions from the City to the reserve to be
21reimbursed by the federal government in accordance with rules
22and regulations established by the Secretary of the United
23States Department of Labor or his designee, and certify the
24results thereof to the City Council. Any such amounts shall
25become a credit to the City and will be used to reduce the
26amount which the City would otherwise contribute during

 

 

09700SB0512ham001- 37 -LRB097 06621 AMC 56256 a

1succeeding years for all employees.
2    (e) In lieu of establishing a manpower program reserve with
3respect to employees whose wages are funded as participants
4under the Comprehensive Employment and Training Act of 1973, as
5authorized by subsection (d), the board may elect to establish
6a special municipality contribution rate for all such
7employees. If this option is elected, the City shall contribute
8to the Fund from federal funds provided under the Comprehensive
9Employment and Training Act program at the special rate so
10established and such contributions shall become a credit to the
11City and be used to reduce the amount which the City would
12otherwise contribute during succeeding years for all
13employees.
14    (f) In lieu of levying all or a portion of the tax required
15under this Section in any year, the city may deposit with the
16city treasurer no later than March 1 of that year for the
17benefit of the fund, to be held in accordance with this
18Article, an amount that, together with the taxes levied under
19this Section for that year, is not less than the amount of the
20city contributions for that year as certified by the board to
21the city council. The deposit may be derived from any source
22legally available for that purpose, including, but not limited
23to, the proceeds of city borrowings. The making of a deposit
24shall satisfy fully the requirements of this Section for that
25year to the extent of the amounts so deposited. Amounts
26deposited under this subsection may be used by the fund for any

 

 

09700SB0512ham001- 38 -LRB097 06621 AMC 56256 a

1of the purposes for which the proceeds of the tax levied by the
2city under this Section may be used, including the payment of
3any amount that is otherwise required by this Article to be
4paid from the proceeds of that tax.
5(Source: P.A. 90-31, eff. 6-27-97; 90-655, eff. 7-30-98;
690-766, eff. 8-14-98.)
 
7    (40 ILCS 5/8-174.2 new)
8    Sec. 8-174.2. Employee contributions effective January 1,
92013. Notwithstanding any other provision of this Article,
10effective January 1, 2013, all participants shall be required
11to make the following contributions:
12        (1) Participants who elect the traditional benefit
13    package under paragraph (1) of subsection (a) of Section
14    8-190.1 of this Code shall contribute:
15            (A) In fiscal year 2013, fiscal year 2014, and
16        fiscal year 2015, an amount equal to 12.75% of salary.
17            (B) In fiscal year 2016 and in each fiscal year
18        thereafter, a percentage of salary equal to the
19        actuarially determined normal cost of the traditional
20        benefit package, minus an amount equal to 6% of total
21        pensionable salary. The Fund shall certify the
22        actuarially determined normal cost of the traditional
23        benefit package and the amount of required participant
24        contributions by July 1, 2015 and every 3 years
25        thereafter.

 

 

09700SB0512ham001- 39 -LRB097 06621 AMC 56256 a

1        (2) Participants who elect the reformed benefit
2    package under paragraph (2) of subsection (a) of Section
3    8-190.1 of this Code shall contribute:
4            (A) In fiscal year 2013, fiscal year 2014, and
5        fiscal year 2015, an amount equal to 7% of salary.
6            (B) In fiscal year 2016 and in each fiscal year
7        thereafter, a percentage of salary equal to the
8        actuarially determined normal cost of the traditional
9        benefit package, minus an amount equal to 6% of total
10        pensionable salary. The Fund shall certify the
11        actuarially determined normal cost of the reformed
12        benefit package and the amount of required participant
13        contributions by July 1, 2015 and every 3 years
14        thereafter.
15        (3) Participants who elect the self-managed plan under
16    paragraph (3) of subsection (a) of Section 8-190.1 of this
17    Code shall contribute a minimum of 6% of salary.
18    Participants who elect the self-managed plan provided
19    under Section 8-190.2 of this Code may elect to increase
20    their employee contributions in accordance with rules
21    prescribed by the Board.
22    No prior contribution increases or other additional
23contributions specified by this Section shall apply to any
24participant for service on or after January 1, 2013.
 
25    (40 ILCS 5/8-190.1 new)

 

 

09700SB0512ham001- 40 -LRB097 06621 AMC 56256 a

1    Sec. 8-190.1. Benefit accruals on and after January 1,
22013.
3    (a) Each participant under this Article, other than a
4person who first becomes an employee and a participant on or
5after January 1, 2011, shall choose which retirement program he
6or she wishes to participate in with respect to all periods of
7employment occurring on and after January 1, 2013, except that
8such participants with more than 5 years of creditable service
9at the time of such election shall only be eligible to elect
10one of the retirement programs in paragraphs (1) or (2) of this
11subsection (a). The retirement program election made by the
12participating employee must be made no later than July 1, 2012.
13The participant shall elect one of the following retirement
14programs:
15        (1) the traditional benefit package provided by the
16    Fund;
17        (2) the reformed benefit package provided by the Fund;
18    or
19        (3) the self-managed plan provided by the Fund.
20    (b) A person who first becomes an employee and a
21participant in the Fund on or after January 1, 2011 shall be
22given the choice to elect which retirement program he or she
23wishes to participate in with respect to all periods of covered
24employment occurring on and after January 1, 2013. The
25participant shall elect one of the retirement programs provided
26in paragraph (2) or (3) of subsection (a) of this Section. The

 

 

09700SB0512ham001- 41 -LRB097 06621 AMC 56256 a

1participant must make the election (i) by July 1, 2012 or
2within 6 months after the participant's first day of covered
3employment, whichever is later, and (ii) if applicable, every 3
4years thereafter.
5    (c) The member election authorized by this Section is an
6irrevocable election, except that any individual making an
7election for the retirement program described under paragraph
8(1) or (2) of subsection (a) shall make an election for a
9period of 3 years, and shall make subsequent elections every 3
10years during a 6-month period prescribed by the Fund. The
11election shall be made in the manner prescribed by the Fund.
12Any member who fails to make the election shall, by default,
13participate in the benefit program provided under paragraph (2)
14of subsection (a) of this Section.
15    (d) Participants who have already made an election pursuant
16to subsection (a) or (b) shall be given the opportunity to make
17a new election as follows:
18        (1) Each participant in the traditional benefit
19    package provided under paragraph (1) of subsection (a) of
20    this Section shall have the opportunity to elect to
21    terminate participation in the traditional benefit package
22    and to elect to have retirement benefits for future service
23    provided under either the reformed benefit package
24    provided under paragraph (2) of subsection (a) of this
25    Section or the self-managed plan provided under paragraph
26    (3) of subsection (a) of this Section. However, such a

 

 

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1    participant with more than 5 years of creditable service
2    shall be prohibited from electing the self-managed plan.
3        (2) Each participant that has less than 5 years of
4    creditable service and participates in the reformed
5    benefit package provided under paragraph (2) of subsection
6    (a) of this Section shall have the opportunity to elect to
7    terminate participation in the reformed benefit package
8    and to elect to have retirement benefits for future service
9    provided under the self-managed plan provided under
10    paragraph (3) of subsection (a) of this Section.
11        (3) The elections permitted under paragraphs (1) and
12    (2) must be made during a 6-month period in the manner
13    prescribed by the Fund.
14    (e) If a participant with an accrued benefit under the
15traditional benefit package elects the reformed benefit
16package, the participant's total accrued benefit for purposes
17of determining an annuity shall be the sum of (i) the
18participant's benefit accruals under the traditional benefit
19package, based on the participant's pay and service under the
20traditional benefit package, and frozen with respect to pay for
21service earned subsequent to participation under the
22traditional benefit package and (ii) the participant's benefit
23accruals based on pay and service under the reformed benefit
24package. All rights and features provided under the traditional
25benefit package will be preserved with respect to benefits
26earned under such package with respect to service completed

 

 

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1prior to the election to participate in the reformed benefit
2package. All service completed under the Fund shall count for
3purposes of determining retirement eligibility and vesting
4under both the traditional benefit package and the reformed
5benefit package, provided that the vesting requirements of the
6traditional benefit package shall continue to govern vesting
7for participants in the reformed benefit package.
8    (f) If a participant with an accrued benefit under the
9traditional benefit package or the reformed benefit package
10elects the self-managed plan provided under paragraph (3) of
11subsection (a) of this Section, the participant's total accrued
12benefit for purposes of determining an annuity shall be the
13participant's benefit accruals prior to participation in the
14self-managed plan, based on the participant's pay and service,
15and fixed with respect to pay for service earned subsequent to
16participation in the traditional or reformed benefit package.
17However, the participant shall also have an accrued
18self-managed plan balance as specified in subsection (h) of
19Section 8-190.2, for periods of covered employment on or after
20participation in the self-managed plan. All rights and features
21provided under the traditional or reformed benefit package will
22be preserved with respect to benefits earned under such package
23with respect to service completed prior to the election to
24participate in the self-managed plan. All service completed
25under the traditional or reformed benefit package and the
26self-managed plan shall count for purposes of determining

 

 

09700SB0512ham001- 44 -LRB097 06621 AMC 56256 a

1retirement eligibility and vesting under the traditional
2benefit package and the self-managed plan.
3    (g) An individual with less than 5 years of creditable
4service and who is a participant in the Fund but is not a
5participating employee on July 1, 2012 shall be allowed to
6elect, based on the eligibility criteria specified in this
7Code, one of the retirement programs provided in paragraph (1),
8(2), or (3) of subsection (a) of this Section within 6 months
9after becoming an employee, based on eligibility.
10    An individual with 5 or more years of creditable service
11and who is a participant in the Fund but is not a participating
12employee on July 1, 2012 shall be allowed to elect, based on
13the eligibility criteria specified in this Code, one of the
14retirement programs provided in paragraph (1) or (2) of
15subsection (a) of this Section within 6 months after becoming
16an employee, based on eligibility.
 
17    (40 ILCS 5/8-190.2 new)
18    Sec. 8-190.2. Self-managed plan.
19    (a) Purpose. The Municipal Employees', Officers', and
20Officials' Annuity and Benefit Fund shall establish and
21administer a self-managed plan, which shall offer participants
22the opportunity to accumulate assets for retirement through a
23combination of employee and employer contributions that may be
24invested in mutual funds, collective investment funds, or other
25investment products and may be used to purchase annuity

 

 

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1contracts, either fixed or variable or a combination thereof.
2The plan must be qualified under the Internal Revenue Code of
31986.
4    (b) The Municipal Employees', Officers', and Officials'
5Annuity and Benefit Fund shall be the plan sponsor for the
6self-managed plan and shall prepare a plan document and
7prescribe such rules and procedures as are considered necessary
8or desirable for the administration of the self-managed plan.
9Consistent with its fiduciary duty to the participants and
10beneficiaries of the self-managed plan, the Board of Trustees
11of the Fund may delegate aspects of plan administration as it
12sees fit to companies authorized to do business in this State.
13    (c) Selection of service providers and funding vehicles.
14The Fund may solicit proposals to provide administrative
15services and funding vehicles for the self-managed plan from
16insurance and annuity companies and mutual fund companies,
17banks, trust companies, or other financial institutions
18authorized to do business in this State.
19    The Fund shall periodically review each approved company. A
20company may continue to provide administrative services and
21funding vehicles for the self-managed plan only so long as it
22continues to be an approved company under contract with the
23Board.
24    (d) Employee direction. Employees who are participating in
25the program must be allowed to direct the transfer of their
26account balances among the various investment options offered,

 

 

09700SB0512ham001- 46 -LRB097 06621 AMC 56256 a

1subject to applicable contractual provisions. The employee
2shall not be deemed a fiduciary by reason of providing such
3investment direction. A person who is a fiduciary shall not be
4liable for any loss resulting from such investment direction
5and shall not be deemed to have breached any fiduciary duty by
6acting in accordance with that direction. Neither the Fund nor
7the employer guarantees any of the investments in the
8employee's account balances.
9    (e) Participation. An employee eligible to participate in
10the self-managed plan must make a written election under
11Section 8-190.1 and the procedures established by the Fund.
12Participation in the self-managed plan by an electing employee
13shall begin on the first day of the first pay period following
14the later of (i) the date the employee's election is filed with
15the Fund or (ii) January 1, 2013.
16    An employee who has elected to participate in the
17self-managed plan under this Section must continue
18participation while employed in an eligible position.
19Participation in the self-managed plan under this Section shall
20constitute membership in the Municipal Employees', Officers',
21and Officials' Annuity and Benefit Fund.
22    An employee under this Section shall be entitled to the
23benefits of Article 20 of this Code.
24    (f) Contributions. The self-managed plan shall be funded by
25contributions from employees participating in the self-managed
26plan and employer contributions as provided in this Section.

 

 

09700SB0512ham001- 47 -LRB097 06621 AMC 56256 a

1    This required contribution shall be made as an "employer
2pick up" under Section 414(h) of the Internal Revenue Code of
31986 or any successor Section thereof. In no event shall a
4employee have an option of receiving these amounts in cash. The
5program shall provide for employer contributions to be credited
6to each self-managed plan participant at a rate of 6% of the
7participant's salary. The amounts so credited shall be paid
8into the employee's self-managed plan account in a manner to be
9prescribed by the Fund.
10    The employer shall make contributions by appropriations to
11the Fund of the employer contributions required for employees
12who participate in the self-managed plan under this Section.
13The amount required shall be certified by the Board of Trustees
14of the Fund and paid by the employer in accordance with this
15Article. The Fund shall not be obligated to remit the required
16employer contributions to any person or entity until it has
17received the required employer contributions from the
18employer.
19    (g) Vesting; withdrawal; return to service. A participant
20in the self-managed plan becomes vested in the employer
21contributions credited to his or her account in the
22self-managed plan on the earliest to occur of the following:
23(1) completion of 5 years of creditable service; (2) the death
24of the participant while in active service, if the participant
25has completed at least 1 1/2 years of service; or (3) the
26participant's election to retire and apply the reciprocal

 

 

09700SB0512ham001- 48 -LRB097 06621 AMC 56256 a

1provisions of Article 20 of this Code.
2    (h) Benefit amounts. If a participant who is vested in
3employer contributions terminates employment, the participant
4shall be entitled to a benefit which is based on the account
5values attributable to employer and participant contributions
6and any investment return thereon.
7    If a participant who is not vested in employer
8contributions terminates employment, the participant shall be
9entitled to a benefit based solely on the account values
10attributable to the participant's contributions and any
11investment return thereon, and the employer contributions and
12any investment return thereon shall be forfeited. Any employer
13contributions which are forfeited shall become part of the
14trust.
 
15    (40 ILCS 5/8-190.3 new)
16    Sec. 8-190.3. Minimum benefit and allocation provisions.
17Each participant in the Fund shall receive a minimum benefit or
18allocation determined as follows:
19        (1) If the participant is participating in the
20    traditional benefit package provided under paragraph (1)
21    of subsection (a) of Section 8-103.3 of this Code or the
22    revised defined benefit package provided under paragraph
23    (2) of subsection (a) of Section 8-103.3 of this Code, the
24    participant shall receive a minimum benefit (commencing on
25    his or her Social Security retirement age) that is equal to

 

 

09700SB0512ham001- 49 -LRB097 06621 AMC 56256 a

1    the annual primary insurance amount the participant would
2    have under Social Security. For the purposes of this item
3    (1), the primary insurance amount a participant would have
4    under Social Security shall be calculated so that the Fund
5    meets the requirements necessary to be considered a
6    "retirement fund" under Section 3121(b)(7)(F) of the
7    Internal Revenue Code and the regulations in effect
8    thereunder.
9        (2) If the participant is participating in the
10    self-managed plan provided under Section 8-103.2 of this
11    Code, the member shall receive a minimum allocation equal
12    to 7.5% of the participant's compensation for service
13    during the period. All contributions shall be taken into
14    account for this purpose. For the purposes of this
15    paragraph (2), the minimum allocation shall be calculated
16    so that the Fund meets the requirements necessary to be
17    considered a "retirement system" under Section
18    3121(b)(7)(F) of the Internal Revenue Code and the
19    regulations in effect thereunder.
 
20    (40 ILCS 5/8-190.4 new)
21    Sec. 8-190.4. Employer contributions to the self-managed
22plan. For members electing benefits under paragraph (3) of
23subsection (a) of Section 8-190.1, an employer contribution
24equal to 6% of total pension payroll for the respective
25employee group.
 

 

 

09700SB0512ham001- 50 -LRB097 06621 AMC 56256 a

1    (40 ILCS 5/8-251)  (from Ch. 108 1/2, par. 8-251)
2    Sec. 8-251. Felony conviction.
3    None of the benefits provided for in this Article shall be
4paid to any person who is convicted of any felony relating to
5or arising out of or in connection with his service as a
6municipal employee.
7    This section shall not operate to impair any contract or
8vested right heretofore acquired under any law or laws
9continued in this Article, nor to preclude the right to a
10refund.
11    All future entrants entering service subsequent to July 11,
121955 shall be deemed to have consented to the provisions of
13this section as a condition of coverage.
14    No refund paid to any person who is convicted of a felony
15relating to or arising out of or in connection with the
16person's service as an employee shall include employer
17contributions or interest or, in the case of the self-managed
18plan authorized under Section 8-190.2, any employer
19contributions or investment return on employer contributions.
20(Source: Laws 1963, p. 161.)
 
21    (40 ILCS 5/8-255 new)
22    Sec. 8-255. Qualified plan status. No provision of this
23Article shall be interpreted in a way that would cause the Fund
24to cease to be a qualified plan under Section 401(a) of the

 

 

09700SB0512ham001- 51 -LRB097 06621 AMC 56256 a

1Internal Revenue Code.
 
2    (40 ILCS 5/9-103.1 new)
3    Sec. 9-103.1. Reformed benefit package. "Reformed benefit
4package": The defined benefit retirement program maintained
5under the Fund for employees who first become participants in
6the Fund on or after January 1, 2011. The reformed benefit
7package includes benefits as modified by the provisions of
8Section 1-160.
 
9    (40 ILCS 5/9-103.2 new)
10    Sec. 9-103.2. Self-managed plan. "Self-managed plan": The
11defined contribution retirement program maintained under the
12Fund as described in Section 9-170.5. The self-managed plan
13does not include any of the following: retirement annuities
14payable directly from the Fund as provided under Sections
159-121.6, 9-121.7, 9-125, 9-126, 9-127, 9-128, 9-128.1, 9-132,
169-134, and 9-160; automatic increase in annuities payable
17directly from the Fund as provided under Sections 9-133 and
189-133.1; reversionary annuities payable directly from the Fund
19as provided under Section 9-135; death benefits payable
20directly from the Fund as provided under Section 9-135.1;
21widow's and survivor's annuities payable directly from the Fund
22as provided under Sections 9-137, 9-138, 9-139, 9-140, 9-141,
239-142, 9-143, 9-144, 9-145, 9-146.1, 9-146.2, 9-147, 9-148,
249-148.1, 9-150, 9-150.1, and 9-153; child's annuities payable

 

 

09700SB0512ham001- 52 -LRB097 06621 AMC 56256 a

1directly from the Fund as provided under Sections 9-154 and
29-155, refunds as provided under Sections 9-164 and 9-167; and
3annuities to disabled employees whose ordinary disability
4benefits have expired as provided under Section 9-174.
 
5    (40 ILCS 5/9-103.3 new)
6    Sec. 9-103.3. Traditional benefit package. "Traditional
7benefit package": The defined benefit retirement program
8maintained under the Fund for employees who first became
9participants in the Fund before January 1, 2011.
 
10    (40 ILCS 5/9-128.1)  (from Ch. 108 1/2, par. 9-128.1)
11    Sec. 9-128.1. Annuities for members of the County Police
12Department.
13    (a) In lieu of the regular or minimum annuity or annuities
14for any deputy sheriff who is a member of a County Police
15Department, he may, upon withdrawal from service after not less
16than 20 years of service in the position of deputy sheriff as
17defined below, upon or after attainment of age 55, receive a
18total annuity equal to 2% for each year of service based upon
19his highest average annual salary for any 4 consecutive years
20within the last 10 years of service immediately preceding the
21date of withdrawal from service, subject to a maximum annuity
22equal to 75% of such average annual salary.
23    (b) Any deputy sheriff who withdraws from the service after
24July 1, 1979, after having attained age 53 in the service with

 

 

09700SB0512ham001- 53 -LRB097 06621 AMC 56256 a

123 or more years of service credit shall be entitled to an
2annuity computed as follows if such annuity is greater than
3that provided in the foregoing paragraphs of this Section
49-128.1: An annuity equal to 50% of the average salary for the
54 highest consecutive years of the last 10 years of service
6plus additional annuity equal to 2% of such average salary for
7each completed year of service or fraction thereof rendered
8after his attainment of age 53 and the completion of 23 years
9of service, plus an additional annuity equal to 1% of such
10average salary for each completed year of service or fraction
11thereof in excess of 23 years up to age 53.
12    (c) Any deputy sheriff who withdraws from the service after
13December 31, 1987 with 20 or more years of service credit,
14shall be entitled, upon attainment of age 50, to an annuity
15computed as follows if such annuity is greater than that
16provided in the foregoing paragraphs of this Section 9-128.1:
17An annuity equal to 50% of the average salary for the 4 highest
18consecutive years of the last 10 years of service, plus
19additional annuity equal to 2% of such average salary for each
20completed year of service or fraction thereof in excess of 20
21years.
22    (d) A deputy sheriff who reaches compulsory retirement age
23and who has less than 23 years of service shall be entitled to
24a minimum annuity equal to an amount determined by the product
25of (1) his years of service and (2) 2% of his average salary
26for the 4 consecutive highest years of salary within the last

 

 

09700SB0512ham001- 54 -LRB097 06621 AMC 56256 a

110 years of service immediately prior to his reaching
2compulsory retirement age.
3    (e) Any deputy sheriff who retires after January 1, 1984
4and elects to receive an annuity under this Section, and who
5has credits under this Article for service not as a deputy
6sheriff, shall be entitled to receive, in addition to the
7amount of annuity otherwise provided under this Section, an
8additional amount of annuity provided from the totals
9accumulated to his credit for prior service and age and service
10annuities for such service not as a deputy sheriff.
11    (f) The term "deputy sheriff" means an employee charged
12with the duty of law enforcement as a deputy sheriff as
13specified in Section 1 of "An Act in relation to County Police
14Departments in certain Counties, creating a County Police
15Department Merit Board and defining its powers and duties",
16approved August 5, 1963, who rendered service in such position
17before and after such date.
18    The terms "deputy sheriff" and "member of a County Police
19Department" shall also include an elected sheriff of the county
20who has elected to become a contributor and who has submitted
21to the board his written election to be included within the
22provisions of this Section. With respect to any such sheriff,
23service as the elected sheriff of the county shall be deemed to
24be service in the position of deputy sheriff for the purposes
25of this Section provided that the employee contributions
26therefor are made at the rate prescribed for members of the

 

 

09700SB0512ham001- 55 -LRB097 06621 AMC 56256 a

1County Police Department. A sheriff electing to be included
2under this Section may also elect to have his service as
3sheriff of the county before the date of such election included
4as service as a deputy sheriff for the purposes of this
5Section, by making an additional contribution for each year of
6such service, equal to the difference between the amount he
7would have contributed to the Fund during such year had he been
8contributing at the rate then in effect for members of the
9County Police Department and the amount actually contributed,
10plus interest thereon at the rate of 6% per annum from the end
11of such year to the date of payment.
12    (g) In no case shall an annual annuity provided in this
13Section 9-128.1 exceed 80% of the average annual salary for any
144 consecutive years within the last 10 years of service
15immediately preceding the date of withdrawal from service.
16    A deputy sheriff may in addition, be entitled to the
17benefits provided by Section 9-133 or 9-133.1 if he so
18qualifies under such Sections.
19    (h) A deputy sheriff may elect, between January 1 and
20January 15, 1983, to transfer his creditable service as a
21member of the State Employees' Retirement System of Illinois to
22any Fund established under this Article of which he is a
23member, and such transferred creditable service shall be
24included as service for the purpose of calculating his benefits
25under this Article to the extent that the payment specified in
26Section 14-105.3 has been received by such Fund.

 

 

09700SB0512ham001- 56 -LRB097 06621 AMC 56256 a

1    (i) An active deputy sheriff who has at least 15 years of
2service credit in that capacity may elect to have any or all of
3his credits under this Article for service not as a deputy
4sheriff deemed to be credits for service as a deputy sheriff,
5by filing a written election with the Board, accompanied by
6payment of an amount to be determined by the Board, equal to
7(1) the difference between the amount of employee contributions
8actually contributed by the applicant for such service not as a
9deputy sheriff, and the amounts that would have been
10contributed had such contributions been made at the rates
11applicable to service as a deputy sheriff, plus (2) interest
12thereon at the rate of 3% per annum, compounded annually, from
13the date of service to the date of payment.
14    (j) Beginning on the effective date of this amendatory Act
15of 1996, the terms "deputy sheriff" and "member of a County
16Police Department" shall also include any chief of the County
17Police Department or undersheriff of the County Sheriff's
18Department who has submitted to the board his or her written
19election to be included within the provisions of this Section.
20With respect to any such police chief or undersheriff, service
21as a chief of the County Police Department or an undersheriff
22of the County Sheriff's Department shall be deemed to be
23service in the position of deputy sheriff for the purposes of
24this Section, provided that the employee contributions
25therefor are made at the rate prescribed for members of the
26County Police Department.

 

 

09700SB0512ham001- 57 -LRB097 06621 AMC 56256 a

1    A chief of the County Police Department or undersheriff of
2the County Sheriff's Department electing to be included under
3this Section may also elect to have his or her service as chief
4of the County Police Department or undersheriff of the County
5Sheriff's Department before the date of the election included
6as service as a deputy sheriff for the purposes of this
7Section, by making an additional contribution for each year of
8such service, equal to the difference between the amount that
9he or she would have contributed to the Fund during that year
10at the rate then in effect for members of the County Police
11Department and the amount actually contributed, plus interest
12thereon at the rate of 6% per year, compounded annually, from
13the end of that year to the date of payment.
14    A chief of the County Police Department or undersheriff of
15the County Sheriff's Department who has elected to be included
16within the provisions of this Section may transfer to this Fund
17credits and creditable service accumulated under any pension
18fund or retirement system established under Article 3, 7, 8,
1914, or 15, upon payment to the Fund of (1) the amount by which
20the employee contributions that would have been required if he
21or she had participated in this Fund during the period for
22which credit is being transferred, plus interest, plus an equal
23amount for employer contributions, exceeds the amounts
24actually transferred from that other fund or system to this
25Fund, plus (2) interest thereon at 6% per year, compounded
26annually, from the date of transfer to the date of payment.

 

 

09700SB0512ham001- 58 -LRB097 06621 AMC 56256 a

1    A chief of the County Police Department or undersheriff of
2the County Sheriff's Department may purchase credits and
3creditable service for up to 2 years of public employment
4rendered to an out-of-state public agency. Payment for that
5service shall be at the applicable rates in effect for employee
6and employer contributions during the period for which credit
7is being purchased, plus interest at the rate of 6% per year,
8compounded annually, from the date of service until the date of
9payment.
10    (k) The benefits of this Section do not apply to employees
11that first become participants on or after January 1, 2013.
12(Source: P.A. 89-643, eff. 8-9-96.)
 
13    (40 ILCS 5/9-133)  (from Ch. 108 1/2, par. 9-133)
14    Sec. 9-133. Automatic increase in annuity.
15    (a) An employee who retired or retires from service after
16December 31, 1959, having attained age 60 or more or, beginning
17January 1, 1991, having attained 30 or more years of creditable
18service, shall, in the month of January of the year following
19the year in which the first anniversary of retirement occurs,
20have his then fixed and payable monthly annuity increased by 1
211/2%, and such first fixed annuity as granted at retirement
22increased by a further 1 1/2% in January of each year
23thereafter. Beginning with January of the year 1972, such
24increases shall be at the rate of 2% in lieu of the aforesaid
25specified 1 1/2%. Beginning with January of the year 1982, such

 

 

09700SB0512ham001- 59 -LRB097 06621 AMC 56256 a

1increases shall be at the rate of 3% in lieu of the aforesaid
2specified 2%. Beginning January 1, 1998, these increases shall
3be at the rate of 3% of the current amount of the annuity,
4including any previous increases received under this Article,
5without regard to whether the annuitant is in service on or
6after the effective date of this amendatory Act of 1997.
7    An employee who retires on annuity before age 60 and,
8beginning January 1, 1991, with less than 30 years of
9creditable service shall receive such increases beginning with
10January of the year immediately following the year in which he
11attains the age of 60 years. An employee who retires on annuity
12before age 60 and before January 1, 1991, with at least 30
13years of creditable service, shall be entitled to receive the
14first increase under this subsection no later than January 1,
151993.
16    For an employee who, in accordance with the provisions of
17Section 9-108.1 of this Act, shall have become a member of the
18State System established under Article 14 on February 1, 1974,
19the first such automatic increase shall begin in January of
201975.
21    (b) Subsection (a) is not applicable to an employee
22retiring and receiving a term annuity, as defined in this Act,
23nor to any otherwise qualified employee who retires before he
24makes employee contributions (at the 1/2 of 1% rate as provided
25in this Section) for this additional annuity for not less than
26the equivalent of one full year. Such employee, however, shall

 

 

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1make arrangement to pay to the fund a balance of such
2contributions, based on his final salary, as will bring such
31/2 of 1% contributions, computed without interest, to the
4equivalent of one year's contributions.
5    Beginning with the month of January, 1960, each employee
6shall contribute by means of salary deductions 1/2 of 1% of
7each salary payment, concurrently with and in addition to the
8employee contributions otherwise provided for annuity
9purposes.
10    Beginning January 1, 2013, contributions will no longer be
11allocated for the automatic increase.
12    Each such additional contribution shall be used, together
13with county contributions, to defray the cost of the specified
14annuity increments.
15    Such additional employee contributions are not refundable,
16except to an employee who withdraws and applies for refund
17under this Article, or applies for annuity, and also in cases
18where a term annuity becomes payable. In such cases his
19contributions shall be refunded, without interest.
20(Source: P.A. 95-369, eff. 8-23-07.)
 
21    (40 ILCS 5/9-160)  (from Ch. 108 1/2, par. 9-160)
22    Sec. 9-160. Annuity after withdrawal while disabled. An
23employee whose disability continues after he has received
24ordinary disability benefit for the maximum period of time
25prescribed by this Article, and who withdraws before age 60

 

 

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1while still so disabled, is entitled to receive the annuity
2provided from the total sum accumulated to his credit from
3employee contributions and county contributions to be computed
4as of his age on the date of withdrawal.
5    The annuity to which his wife shall be entitled upon his
6death, shall be fixed on the date of his withdrawal. It shall
7be provided on a reversionary annuity basis from the total sum
8accumulated to his credit for widow's annuity on the date of
9such withdrawal.
10    Upon the death of any such employee while on annuity, if
11his service was at least 4 years after the date of his original
12entry, and at least 2 years after the date of his latest
13re-entry, his unmarried child or children under age 18 shall be
14entitled to annuity specified in this Article for children of
15an employee who retires after age 50 (age 55 for withdrawal
16before January 1, 1988), subject to prescribed limitations on
17total payments to a family of an employee.
18(Source: P.A. 85-964.)
 
19    (40 ILCS 5/9-164)  (from Ch. 108 1/2, par. 9-164)
20    Sec. 9-164. Refunds - Withdrawal before age 55 or with less
21than 10 years of service.
22    (1) An employee, without regard to length of service, who
23withdraws before age 55 (age 62 for an employee that was
24participating in the reformed benefits package who first
25becomes a member on or after January 1, 2011), and any employee

 

 

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1with less than 10 years of service who withdraws before age 60,
2and any employee that was participating in the reformed
3benefits package who first becomes a member on or after January
41, 2011 who withdraws with less than 10 years of service, shall
5be entitled to a refund of the total sums accumulated to his
6credit as of date of withdrawal for age and service annuity and
7widow's annuity resulting from amounts contributed by him or by
8the county in lieu of employee contributions during duty
9disability. If he is a present employee he shall also be
10entitled to a refund of the total sum accumulated from any sums
11contributed by him and applied to any county pension fund
12superseded by this fund. An employee withdrawing on or after
13January 1, 1984 may receive a refund only after he has been off
14the payroll for at least 30 days during which time he has
15received no salary.
16    (2) Upon receipt of the refund, the employee surrenders and
17forfeits all rights to any annuity or other benefits for
18himself and for any other persons who might have benefited
19through him; provided that he may have any such period of
20service counted in computing the term of his service - for age
21and service annuity purposes only - if he becomes an employee
22before age 65, excepting as limited by the provisions of this
23Article relating to the basis of computing the term of service.
24    (3) An employee who does not receive a refund shall have
25all amounts to his credit for annuity purposes on the date of
26his withdrawal improved by interest only until he becomes 65

 

 

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1while out of service at the effective rate for his benefit and
2the benefit of any person who may have any right to annuity
3through him if he re-enters service and attains a right to
4annuity.
5    (4) Any such employee shall retain such right to a refund
6of such amounts when he shall apply for same until he re-enters
7the service or until the amount of annuity shall have been
8fixed as provided in this Article. Thereafter, no such right
9shall exist in the case of any such employee.
10(Source: P.A. 96-1490, eff. 1-1-11.)
 
11    (40 ILCS 5/9-169)  (from Ch. 108 1/2, par. 9-169)
12    Sec. 9-169. Financing - Tax levy.
13    (a) The county board shall levy a tax annually upon all
14taxable property in the county at the rate that will produce a
15sum which, when added to the amounts deducted from the salaries
16of the employees or otherwise contributed by them is sufficient
17for the requirements of this Article.
18    For the years before 1962 the tax rate shall be as provided
19in "The 1925 Act". For the years 1962 and 1963 the tax rate
20shall be not more than .0200 per cent; for the years 1964 and
211965 the tax rate shall be not more than .0202 per cent; for
22the years 1966 and 1967 the tax rate shall be not more than
23.0207 per cent; for the year 1968 the tax rate shall be not
24more than .0220 per cent; for the year 1969 the tax rate shall
25be not more than .0233 per cent; for the year 1970 the tax rate

 

 

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1shall be not more than .0255 per cent; for the year 1971 the
2tax rate shall be not more than .0268 per cent of the value, as
3equalized or assessed by the Department of Revenue upon all
4taxable property in the county. Beginning with the year 1972
5and for each year thereafter the county shall levy a tax
6annually at a rate on the dollar of the value, as equalized or
7assessed by the Department of Revenue of all taxable property
8within the county that will produce, when extended, not to
9exceed an amount equal to the total amount of contributions
10made by the employees to the fund in the calendar year 2 years
11prior to the year for which the annual applicable tax is levied
12multiplied by .8 for the years 1972 through 1976; by .8 for the
13year 1977; by .87 for the year 1978; by .94 for the year 1979;
14by 1.02 for the year 1980 and by 1.10 for the year 1981 and by
151.18 for the year 1982 and by 1.36 for the year 1983 and by 1.54
16for the years year 1984 through 2012. For the year 2013 and for
17each year thereafter, the amount levied shall be the amount
18levied in 2009.
19    This tax shall be levied and collected in like manner with
20the general taxes of the county, and shall be in addition to
21all other taxes which the county is authorized to levy upon the
22aggregate valuation of all taxable property within the county
23and shall be exclusive of and in addition to the amount of tax
24the county is authorized to levy for general purposes under any
25laws which may limit the amount of tax which the county may
26levy for general purposes. The county clerk, in reducing tax

 

 

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1levies under any Act concerning the levy and extension of
2taxes, shall not consider this tax as a part of the general tax
3levy for county purposes, and shall not include it within any
4limitation of the per cent of the assessed valuation upon which
5taxes are required to be extended for the county. It is lawful
6to extend this tax in addition to the general county rate fixed
7by statute, without being authorized as additional by a vote of
8the people of the county.
9    Revenues derived from this tax shall be paid to the
10treasurer of the county and held by him for the benefit of the
11fund.
12    If the payments on account of taxes are insufficient during
13any year to meet the requirements of this Article, the county
14may issue tax anticipation warrants against the current tax
15levy.
16    (b) By January 10, annually, the board shall notify the
17county board of the requirement of this Article that this tax
18shall be levied. The board shall make an annual determination
19of the required county contributions, and shall certify the
20results thereof to the county board.
21    (c) The various sums to be contributed by the county board
22and allocated for the purposes of this Article and any interest
23to be contributed by the county shall be taken from the revenue
24derived from this tax and no money of the county derived from
25any source other than the levy and collection of this tax or
26the sale of tax anticipation warrants, except state or federal

 

 

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1funds contributed for annuity and benefit purposes for
2employees of a county department of public aid under "The
3Illinois Public Aid Code", approved April 11, 1967, as now or
4hereafter amended, may be used to provide revenue for the fund.
5    If it is not possible or practicable for the county to make
6contributions for age and service annuity and widow's annuity
7concurrently with the employee contributions made for such
8purposes, such county shall make such contributions as soon as
9possible and practicable thereafter with interest thereon at
10the effective rate until the time it shall be made.
11    (d) With respect to employees whose wages are funded as
12participants under the Comprehensive Employment and Training
13Act of 1973, as amended (P.L. 93-203, 87 Stat. 839, P.L.
1493-567, 88 Stat. 1845), hereinafter referred to as CETA,
15subsequent to October 1, 1978, and in instances where the board
16has elected to establish a manpower program reserve, the board
17shall compute the amounts necessary to be credited to the
18manpower program reserves established and maintained as herein
19provided, and shall make a periodic determination of the amount
20of required contributions from the County to the reserve to be
21reimbursed by the federal government in accordance with rules
22and regulations established by the Secretary of the United
23States Department of Labor or his designee, and certify the
24results thereof to the County Board. Any such amounts shall
25become a credit to the County and will be used to reduce the
26amount which the County would otherwise contribute during

 

 

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1succeeding years for all employees.
2    (e) In lieu of establishing a manpower program reserve with
3respect to employees whose wages are funded as participants
4under the Comprehensive Employment and Training Act of 1973, as
5authorized by subsection (d), the board may elect to establish
6a special County contribution rate for all such employees. If
7this option is elected, the County shall contribute to the Fund
8from federal funds provided under the Comprehensive Employment
9and Training Act program at the special rate so established and
10such contributions shall become a credit to the County and be
11used to reduce the amount which the County would otherwise
12contribute during succeeding years for all employees.
13(Source: P.A. 95-369, eff. 8-23-07.)
 
14    (40 ILCS 5/9-170)  (from Ch. 108 1/2, par. 9-170)
15    Sec. 9-170. Contributions for age and service annuities for
16present employees, future entrants and re-entrants.
17    (a) Beginning on the effective date as to a present
18employee in paragraph (a) or (c) of Section 9-109, or as to a
19future entrant in paragraph (a) of Section 9-110, and beginning
20on September 1, 1935 as to a present employee in paragraph (b)
21(1) of Section 9-109 or as to a future entrant in paragraph (b)
22or (d) of Section 9-110, and beginning from the date of
23becoming a contributor as to any present employee in paragraph
24(b)(2) or (d) of Section 9-109, or any future entrant in
25paragraph (c) or (e) of Section 9-110, there shall be deducted

 

 

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1and contributed to this fund 3 1/4% of each payment of salary
2for age and service annuity until July 1, 1947. Beginning July
31, 1947 and prior to July 1, 1953, 5% and beginning July 1,
41953, and prior to September 1, 1971, 6%; and beginning
5September 1, 1971, 6 1/2% of each payment of salary of such
6employees shall be deducted and contributed for such purpose.
7    From and after January 1, 1966, each deputy sheriff as
8defined in Section 9-128.1 who is a member of the County Police
9Department and a participant of this fund shall contribute 7%
10of salary for age and service annuity. At the time of
11retirement on annuity, a deputy sheriff who is a member of the
12County Police Department, who chooses to retire under
13provisions of this Article other than Section 9-128.1, may
14receive a refund of the difference between the contributions
15made as a deputy sheriff who is a member of the County Police
16Department and the contributions that would have been made for
17such service not as a deputy sheriff who is a member of the
18County Police Department, including interest earned.
19    Such deductions beginning on the effective date and prior
20to July 1, 1947 shall be made and continued for a future
21entrant while he is in the service until he attains age 65, and
22beginning on the effective date and prior to July 1, 1953 for a
23present employee while he is in the service until the amount so
24deducted from his salary or paid by him according to law to any
25county pension fund in force on the effective date, with
26interest on both such amounts at 4% per annum, equals the sum

 

 

09700SB0512ham001- 69 -LRB097 06621 AMC 56256 a

1that would have been to his credit from sums deducted from his
2salary if deductions at the rate herein stated had been made
3during his entire service until he attained age 65, with
4interest at 4% per annum for the period subsequent to his
5attainment of age 65. Such deductions beginning July 1, 1947
6for future entrants and beginning July 1, 1953 for present
7employees shall be made and continued while such future entrant
8or present employee is in the service.
9    (b) Concurrently with each employee contribution, the
10county shall contribute beginning on the effective date and
11prior to July 1, 1947, 5 3/4%, and beginning on July 1, 1947
12and prior to July 1, 1953, 7%; and beginning on July 1, 1953,
136% of each payment of such salary until the employee attains
14age 65.
15    (c) Each present employee contribution made prior to the
16date the age and service annuity for such employee is fixed,
17each future entrant contribution, and each corresponding
18county contribution shall be allocated to the account of and
19credited to the employee for whose benefit it is made.
20    (d) Notwithstanding any other provision of this Article,
21effective January 1, 2013, all participants shall be required
22to make the following contributions:
23        (1) Participants who elect the traditional benefit
24    package under paragraph (1) of subsection (a) of Section
25    9-170.3 of this Code shall contribute a percentage of
26    salary equal to the sum of subparagraphs (A) and (B) of

 

 

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1    this paragraph (1) as follows:
2            (A) An amount equal to the greater of (i) 6% of
3        salary or (ii) one-half of the actuarially determined
4        normal cost of the reformed benefit package.
5            (B) An additional percentage of salary that is
6        actuarially determined to equal the difference between
7        the normal cost of the traditional benefit package and
8        the normal cost of the reformed benefit package. That
9        additional percentage shall be based on the fiscal year
10        2011 contribution and updated every 3 years
11        thereafter; however, in no case shall the employer
12        contributions exceed 13.09% of salary.
13        (2) Participants who elect the reformed benefit
14    package under paragraph (2) of subsection (a) of Section
15    9-170.3 of this Code shall contribute an amount equal to
16    the greater of (i) 7% of salary or (ii) one-half of the
17    actuarially determined normal cost of the reformed benefit
18    package, including the cost of retiree health benefits as
19    determined by the fund's actuary. The actuarially
20    determined normal cost of the reformed benefit package
21    shall be based on the fiscal year 2011 contribution and
22    updated every 3 years thereafter.
23        (3) Participants who elect the self-managed plan under
24    paragraph (3) of subsection (a) of Section 9-170.3 of this
25    Code shall contribute a minimum of 6% of salary.
26    Participants who elect the self-managed plan provided

 

 

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1    under Section 9-170.3 of this Code may elect to increase
2    their employee contributions in accordance with rules
3    prescribed by the board.
4    No prior contribution increases or other additional
5contributions specified by this Section shall apply to any
6participant for service on or after January 1, 2013.
7(Source: P.A. 86-1488.)
 
8    (40 ILCS 5/9-170.3 new)
9    Sec. 9-170.3. Benefit accruals on and after January 1,
102013.
11    (a) Each participating employee under this Article, other
12than a person who first becomes an employee and a participant
13on or after January 1, 2011, shall choose which retirement
14program he or she wishes to participate in with respect to all
15periods of employment occurring on and after January 1, 2013,
16except that such participants with more than 5 years of
17creditable service at the time of election shall only be
18eligible to elect one of the retirement programs in paragraphs
19(1) or (2) of this subsection (a). The retirement program
20election made by the participating employee must be made no
21later than July 1, 2012. The participating employee shall elect
22one of the following retirement programs:
23        (1) the traditional benefit package provided by the
24    Fund;
25        (2) the reformed benefit package provided by the Fund;

 

 

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1    or
2        (3) the self-managed plan provided by the Fund.
3    (b) A person who first becomes an employee and a
4participant in the Fund on or after January 1, 2011 shall be
5given the choice to elect which retirement program he or she
6wishes to participate in with respect to all periods of
7employment occurring on and after January 1, 2013. The
8participant shall elect one of the retirement programs provided
9in paragraph (2) or (3) of subsection (a) of this Section. The
10participant must make the election (i) by July 1, 2012 or
11within 6 months after the participant's first day of
12employment, whichever is later, and (ii) if applicable, every 3
13years thereafter.
14    (c) The participant election authorized by this Section is
15an irrevocable election, except that any individual making an
16election for the retirement program described under paragraph
17(1) or (2) of subsection (a) shall make an election for a
18period of 3 years and shall make subsequent elections every 3
19years during a 6-month period prescribed by the Fund. The
20election shall be made in writing, in the manner prescribed by
21the Fund. Any participant who fails to make the election shall,
22by default, participate in the benefit program provided under
23paragraph (2) of subsection (a) of this Section.
24    (d) Participants who have already made an election pursuant
25to subsection (a) shall be given the opportunity to make a new
26election as follows:

 

 

09700SB0512ham001- 73 -LRB097 06621 AMC 56256 a

1        (1) Each participant in the traditional benefit
2    package provided under paragraph (1) of subsection (a) of
3    this Section shall have the opportunity to elect to
4    terminate participation in the traditional benefit package
5    and to elect to have retirement benefits for future service
6    provided under the reformed benefit package provided under
7    paragraph (2) of subsection (a) of this Section or the
8    self-managed plan under paragraph (3) of subsection (a) of
9    this Section.
10        (2) Each participant in the reformed benefit package
11    provided under paragraph (2) of subsection (a) of this
12    Section shall have the opportunity to elect to terminate
13    participation in the reformed benefit package and to elect
14    to have retirement benefits for future service provided
15    under the self-managed plan provided under paragraph (3) of
16    subsection (a) of this Section.
17        (3) The elections permitted under paragraphs (1) and
18    (2) must be made during a 6-month period in the manner
19    prescribed by the Fund.
20    (e) If a participant under the traditional benefit package
21elects the reformed benefit package, the participant's total
22salary and service credit for purposes of determining an
23annuity shall be the sum of (i) the participant's benefit
24accruals under the traditional benefit package, based on the
25participant's salary and service under the traditional benefit
26package and frozen with respect to salary for service earned

 

 

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1subsequent to participation under the traditional benefit
2package and (ii) the participant's benefit accruals based on
3salary and service under the reformed benefit package. All
4rights and features provided under the traditional benefit
5package will be preserved with respect to benefits earned under
6such package completed prior to the election to participate in
7the reformed benefit package. All credited service under the
8Fund shall count for purposes of determining retirement
9eligibility and vesting under the both traditional benefit
10package and the reformed benefit package, provided that the
11vesting requirements of the traditional benefit package shall
12continue to govern vesting for participants in the reformed
13benefit package.
14    For a participant under the traditional benefit package who
15elects the reformed benefit package, the combined maximum
16benefit of the traditional benefit package plus the reformed
17benefit package as determined in this subsection shall not
18exceed the greater of 80% of the final average salary used to
19calculate the reformed benefit annuity or 80% of the final
20average salary used to calculate the traditional benefit
21annuity.
22    (f) If a participant with an accrued benefit under the
23traditional benefit package or the reformed benefit package
24provided under paragraph (2) of subsection (a) of this Section
25elects the self-managed plan provided under paragraph (3) of
26subsection (a) of this Section, the participant's total accrued

 

 

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1benefit for purposes of determining an annuity shall be the
2participant's benefit accruals prior to participation in the
3self-managed plan, based on the participant's salary and
4service and fixed with respect to salary for service earned
5subsequent to participation in the traditional or reformed
6benefit package. However, the participant shall also have an
7accrued self-managed plan balance, as specified in subsection
8(i) of Section 9-170.5, for periods of employment on or after
9participation in the self-managed plan. A11 rights and features
10provided under the traditional or reformed benefit package will
11be preserved with respect to benefits earned under that package
12with respect to service completed prior to the election to
13participate in the self-managed plan. All credited service
14under the Fund shall count for purposes of determining
15retirement eligibility and vesting under the reformed benefit
16package and the self-managed plan.
17    (g) An individual with less than 5 years of creditable
18service and who is a participant in the Fund but is not a
19participating employee on July 1, 2012 shall be allowed to
20elect, based on the eligibility criteria specified in this
21Code, one of the retirement programs provided in paragraph (1),
22(2), or (3) of subsection (a) of this Section within 6 months
23after becoming an employee, based on eligibility.
24    An individual with 5 or more years of creditable service
25and who is a participant in the Fund but is not a participating
26employee on July 1, 2012 shall be allowed to elect, based on

 

 

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1the eligibility criteria specified in this Code, one of the
2retirement programs provided in paragraph (1) or (2) of
3subsection (a) of this Section within 6 months after becoming
4an employee, based on eligibility.
 
5    (40 ILCS 5/9-170.4 new)
6    Sec. 9-170.4. Minimum benefit and allocation provisions.
7    (a) If the participant is participating in the traditional
8benefit package provided under paragraph (1) of subsection (a)
9of Section 9-170.3 of this Code or the revised defined benefit
10package provided under paragraph (2) of subsection (a) of
11Section 9-170.3 of this Code, the participant shall receive a
12minimum benefit (commencing on his or her Social Security
13retirement age) that is equal to the annual primary insurance
14amount the participant would have under Social Security. For
15the purposes of this Section, the primary insurance amount a
16participant would have under Social Security shall be
17calculated so that the System meets the requirements necessary
18to be considered a "retirement system" under Section
193121(b)(7)(F) of the Internal Revenue Code and the regulations
20in effect thereunder.
21    (b) If the participant is participating in the self-managed
22plan provided under Section 9-170.5 of this Code, the member
23shall receive a minimum allocation equal to 7.5% of the
24participant's compensation for service during the period. All
25contributions shall be taken into account for this purpose. For

 

 

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1the purposes of this paragraph (2), the minimum allocation
2shall be calculated so that the Fund meets the requirements
3necessary to be considered a "retirement system" under Section
43121(b)(7)(F) of the Internal Revenue Code and the regulations
5in effect thereunder.
 
6    (40 ILCS 5/9-170.5 new)
7    Sec. 9-170.5. Self-managed plan.
8    (a) Purpose. The Fund shall establish and administer a
9self-managed plan, which shall offer participants the
10opportunity to accumulate assets for retirement through a
11combination of employee and employer contributions that may be
12invested in mutual funds, collective investment funds, or other
13investment products and may be used to purchase annuity
14contracts, either fixed or variable or a combination thereof.
15The plan must be qualified under the Internal Revenue Code of
161986.
17    (b) The Fund shall be the plan sponsor for the self-managed
18plan and shall prepare a plan document and prescribe such rules
19and procedures as are considered necessary or desirable for the
20administration of the self-managed plan. Consistent with its
21fiduciary duty to the participants and beneficiaries of the
22self-managed plan, the Board of Trustees of the Fund may
23delegate aspects of plan administration as it sees fit to
24companies authorized to do business in this State.
25    (c) Selection of service providers and funding vehicles.

 

 

09700SB0512ham001- 78 -LRB097 06621 AMC 56256 a

1The Fund may solicit proposals to provide administrative
2services and funding vehicles for the self-managed plan from
3insurance and annuity companies and mutual fund companies,
4banks, trust companies, or other financial institutions
5authorized to do business in this State.
6    The Fund shall periodically review each approved company. A
7company may continue to provide administrative services and
8funding vehicles for the self-managed plan only so long as it
9continues to be an approved company under contract with the
10Board.
11    (d) Participant direction. Participants in the program
12must be allowed to direct the transfer of their account
13balances among the various investment options offered, subject
14to applicable contractual provisions. The participants shall
15not be deemed a fiduciary by reason of providing such
16investment direction. A person who is a fiduciary shall not be
17liable for any loss resulting from such investment direction
18and shall not be deemed to have breached any fiduciary duty by
19acting in accordance with that direction. Neither the Fund nor
20the employer guarantees any of the investments in the
21employee's account balances.
22    (e) Participation. A participant eligible to participate
23in the self-managed plan must make a written election under
24Section 9-170.3 and the procedures established by the Fund.
25Participation in the self-managed plan by an electing employee
26shall begin by the first day of the second pay period following

 

 

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1the later of (i) the date the participant's election is filed
2with the Fund or (ii) January 1, 2013.
3    A participant who has elected to participate in the
4self-managed plan under this Section must continue
5participation while employed in a participating employment
6position. Participation in the self-managed plan under this
7Section shall constitute membership in the Fund.
8    A participant under this Section shall be entitled to the
9benefits of Article 20 of this Code.
10    (f) Contributions. The self-managed plan shall be funded by
11contributions from participants participating in the
12self-managed plan and employer contributions as provided in
13this Section.
14    This required contribution shall be made as an "employer
15pick up" under Section 414(h) of the Internal Revenue Code of
161986 or any successor Section thereof. In no event shall a
17participant have an option of receiving these amounts in cash.
18The self-managed plan shall provide for employer contributions
19to be credited to each self-managed plan participant at a rate
20of 6% of the participant's salary. The amounts so credited
21shall be paid into the employee's self-managed plan account in
22a manner to be prescribed by the Fund. The employer shall
23contribute 6% to the self-managed plan regardless of the
24existence of the current funding mechanism.
25    Under the self-managed plan, an amount of employer
26contributions, not exceeding 1% of the participating

 

 

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1employees' salary, shall be used for the purpose of providing
2disability benefits of the Fund to employees. Prior to the
3beginning of each calendar year under the self-managed plan,
4the Board of Trustees shall determine, as a percentage of
5salary, the amount of employer contributions to be allocated
6during that plan year for providing disability benefits for
7employees in the self-managed plan.
8    The employer shall make contributions to the Fund of the
9employer contributions required for participants who
10participate in the self-managed plan under this Section. The
11employer amount required shall be certified by the Board of
12Trustees of the Fund and provided to the employer on or before
13March 1st of each year and paid by the employer on or before
14June 1st of that year for participants in the self-managed plan
15in accordance with this Article. The Fund shall not be
16obligated to remit the required employer contributions to any
17person or entity until it has received the required employer
18contributions from the employer. The Fund shall not be liable
19to any member participating in the self-managed plan for any
20damages resulting from any delay in remitting employee or
21employer contributions.
22    (g) Vesting; withdrawal; return to service. A participant
23in the self-managed plan becomes vested in the employer
24contributions credited to his or her account in the
25self-managed plan on the earliest to occur of the following:
26(1) completion of 5 years of creditable service; (2) the death

 

 

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1of the participant while in active service, if the participant
2has completed at least 1 1/2 years of service; or (3) the
3participant's election to retire and apply the reciprocal
4provisions of Article 20 of this Code.
5    (h) Benefit amounts. If a participant who is vested in
6employer contributions terminates employment, the participant
7shall be entitled to a benefit which is based on the account
8values attributable to employer and participant contributions
9and any investment return thereon.
10    (i) No duplication of service credit. Notwithstanding any
11other provision of this Article, an employee may not purchase
12or receive service or service credit applicable to any other
13retirement program administered by the Fund under this Article
14for any period during which the employee was a participant in
15the self-managed plan established under this Section.
16    If a member who is not vested in employer contributions
17terminates employment, the member shall be entitled to a
18benefit based solely on the account values attributable to the
19member's contributions and any investment return thereon, and
20the employer contributions and any investment return thereon
21shall be forfeited. Any employer contributions that are
22forfeited shall be held in escrow by the company investing
23those contributions and shall be used as directed by the Fund.
24    A participant in the self-managed plan who receives a
25distribution of his or her vested amounts from the self-managed
26plan while not yet eligible for retirement under this Article

 

 

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1(and Article 20, if applicable) shall forfeit all service
2credit and accrued rights in the Fund.
 
3    (40 ILCS 5/9-170.6 new)
4    Sec. 9-170.6. Employer contributions to the self-managed
5plan. Beginning in fiscal year 2013, for members electing
6benefits under paragraph (3) of subsection (a) of Section
79-170.5, an employer contribution shall be made each fiscal
8year in an amount equal to 6% of total pensionable payroll for
9the respective employee group.
 
10    (40 ILCS 5/9-170.7 new)
11    Sec. 9-170.7. Maximum self-managed plan participation. By
12July 1, 2012, the Fund shall certify its total active
13participant population. When the number of participants that
14elect the self-managed plan is equal to 20% of the total active
15participant population, then no participant may elect the
16self-managed plan. Beginning in 2015 and every 3 years
17thereafter, the Fund shall recertify its total active
18participant population and the number of participants in the
19self-managed plan. If the number of participants in the
20self-managed plan is less than 20% of the recertified total
21active participant population, then eligible participants may
22elect to participate in the self-managed plan. However,
23participants shall be prohibited from electing to participate
24once the Fund determines that the number of participants in the

 

 

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1self-managed plan is equal to 20% of the number of total active
2participants in the Fund.
 
3    (40 ILCS 5/9-174)  (from Ch. 108 1/2, par. 9-174)
4    Sec. 9-174. Contributions by disabled employee whose
5ordinary disability benefit has expired.
6    In the case of any disabled employee whose credit for
7ordinary disability benefit purposes has expired and who
8continues to be disabled such employee shall have the right to
9contribute to the fund at the current contribution rate for the
10member's applicable benefits package for a period not to exceed
11a total of 12 months during his entire period of service and to
12receive credit for all annuity purposes for any such periods
13paid for. Such payment shall not affect the employee's
14resignation date for purposes of annuity.
15(Source: P.A. 86-1488.)
 
16    (40 ILCS 5/9-176)  (from Ch. 108 1/2, par. 9-176)
17    Sec. 9-176. Contributions for widow's annuity for widows of
18present employees, future entrants and re-entrants.
19    (a) Beginning on the effective date as to a present
20employee in paragraph (a) or (c) of Section 9--109, or as to a
21future entrant in paragraph (a) of Section 9--110, and
22beginning on September 1, 1935, as to a present employee in
23paragraph (b) (1) of section 9--109 or as to a future entrant
24in paragraph (b) or (d) of Section 9--110, and beginning from

 

 

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1the date of becoming a contributor as to any present employee
2in paragraph (b) (2) or (d) of Section 9--109, or any future
3entrant in paragraph (c) or (e) of Section 9--110, there shall
4be deducted and contributed by each male employee 1%, and from
5and after January 1, 1966, and until January 1, 2013, 1 1/2%,
6of each payment of salary for widow's annuity. Deductions shall
7be continued during service until the employee attains age 65.
8    (b) Concurrently with each employee contribution, the
9county shall contribute beginning on the effective date and
10prior to July 1, 1947, 1 3/4%, and beginning on July 1, 1947,
112% of salary.
12    (c) Each employee contribution made prior to the date when
13the amount of widow's annuity for an employee is fixed and each
14concurrent County Contribution Credit shall be allocated to the
15account of and credited to the employee for whose benefit it is
16made.
17    (d) Beginning January 1, 2013, contributions will no longer
18be allocated for widow's annuity.
19(Source: Laws 1965, p. 1254.)
 
20    (40 ILCS 5/9-185)  (from Ch. 108 1/2, par. 9-185)
21    Sec. 9-185. Board created.
22    (a) A board of 9 members shall constitute the board of
23trustees authorized to carry out the provisions of this
24Article. The board of trustees shall be known as "The
25Retirement Board of the County Employees' Annuity and Benefit

 

 

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1Fund of .... County". Beginning January 1, 2012, the The board
2shall consist of 5 2 members appointed and 4 7 members elected
3as hereinafter prescribed.
4    (b) Until December 31, 2011, the The appointed members
5shall be appointed as follows: One member shall be appointed by
6the comptroller of such county, who may be the comptroller or
7some person chosen by him from among employees of the county,
8who are versed in the affairs of the comptroller's office; and
9one member shall be appointed by the treasurer of such county,
10who may be the treasurer or some person chosen by him from
11among employees of the County who are versed in the affairs of
12the treasurer's office.
13    The member appointed by the comptroller shall hold office
14for a term ending on December 1st of the first year following
15the year of appointment. The member appointed by the county
16treasurer shall hold office for a term ending on December 1st
17of the second year following the year of appointment.
18    Thereafter, each appointed member shall be appointed by the
19officer that appointed his predecessor for a term of 2 years.
20    Notwithstanding any other provision of this Section, the
21term of any person appointed under this subsection (b) expires
22December 31, 2011.
23    (c) Until December 31, 2011, 3 Three county employee
24members of the board shall be elected as follows: within 30
25days from and after the date upon which this Article comes into
26effect in the county, the clerk of the county shall arrange for

 

 

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1and hold an election. One employee shall be elected for a term
2ending on the first day in the month of December of the first
3year next following the effective date; one for a term ending
4on December 1st of the following year; and one for a term
5ending December 1st of the second following year.
6    Notwithstanding any other provision of this Section, the
7term of any person elected under this subsection expires
8December 31, 2011.
9    (d) Beginning December 1, 1988, and every 3 years
10thereafter until December 31, 2011, an annuitant member of the
11board shall be elected as follows: the board shall arrange for
12and hold an election in which only those participants who are
13currently receiving retirement benefits under this Article
14shall be eligible to vote and be elected. Each such member
15shall be elected to a term ending on the first day in the month
16of December of the third following year.
17    Notwithstanding any other provision of this Section, the
18term of any person elected under this subsection expires
19December 31, 2011.
20    (d-1) Beginning December 1, 2001, and every 3 years
21thereafter until December 31, 2011, an annuitant member of the
22board shall be elected as follows: the board shall arrange for
23and hold an election in which only those participants who are
24currently receiving retirement benefits under this Article
25shall be eligible to vote and be elected. Each such member
26shall be elected to a term ending on the first day in the month

 

 

09700SB0512ham001- 87 -LRB097 06621 AMC 56256 a

1of December of the third following year. Until December 1,
22001, the position created under this subsection (d-1) may be
3filled by the board as in the case of a vacancy.
4    Notwithstanding any other provision of this Section, the
5term of any person elected under this subsection expires
6December 31, 2011.
7    (e) Beginning December 1, 1988 and until December 31, 2011,
8if a Forest Preserve District Employees' Annuity and Benefit
9Fund shall be in force in such county and the board of this
10fund is charged with administering the affairs of such annuity
11and benefit fund for employees of such forest preserve
12district, a forest preserve district member of the board shall
13be elected as of December 1, 1988, and every 3 years thereafter
14as follows: the board shall arrange for and hold an election in
15which only those employees of such forest preserve district who
16are contributors to the annuity and benefit fund for employees
17of such forest preserve district shall be eligible to vote and
18be elected. Each such member shall be elected to a term ending
19on the first day in the month of December of the third
20following year.
21    Notwithstanding any other provision of this Section, the
22term of any person elected under this subsection expires
23December 31, 2011.
24    (f) Beginning December 1, 2001, and every 3 years
25thereafter until December 31, 2011, if a Forest Preserve
26District Employees' Annuity and Benefit Fund is in force in the

 

 

09700SB0512ham001- 88 -LRB097 06621 AMC 56256 a

1county and the board of this Fund is charged with administering
2the affairs of that annuity and benefit fund for employees of
3the forest preserve district, a forest preserve district
4annuitant member of the board shall be elected as follows: the
5board shall arrange for and hold an election in which only
6those participants who are currently receiving retirement
7benefits under Article 10 shall be eligible to vote and be
8elected. Each such member shall be elected to a term ending on
9the first day in the month of December of the third following
10year. Until December 1, 2001, the position created under this
11subsection (f) may be filled by the board as in the case of a
12vacancy.
13    Notwithstanding any other provision of this Section, the
14term of any person elected under this subsection expires
15December 31, 2011.
16    (g) Beginning on January 1, 2012, the appointed members
17shall be appointed by the President of the Cook County Board of
18Commissioners. Each appointed member shall be appointed for a
19term expiring on the same date as that of the President of the
20Cook County Board of Commissioners and until their successors
21are appointed and qualified.
22    (h) A member of the board representing active members of
23the Fund created under this Article shall be elected to the
24board as follows: the board shall arrange for and hold an
25election in which only those active participants under this
26Article shall be eligible to vote and be elected. The person

 

 

09700SB0512ham001- 89 -LRB097 06621 AMC 56256 a

1first elected to the board under this subsection shall serve
2for a term of 2 years, beginning on January 1, 2012.
3Thereafter, each person so elected shall serve for a term of 4
4years.
5    (i) A member of the board representing annuitant members of
6the Fund created under this Article shall be elected to the
7board as follows: the board shall arrange for and hold an
8election in which only those annuitant members under this
9Article shall be eligible to vote and be elected. Each person
10selected under this subsection shall serve for a term of 4
11years, with the term of the first person so elected beginning
12January 1, 2012.
13    (j) A member of the board representing active members of
14the Fund created under Article 10 shall be elected to the board
15as follows: the board shall arrange for and hold an election in
16which only those active participants under Article 10 shall be
17eligible to vote and be elected. The person first elected to
18the board under this subsection shall serve for a term of 2
19years, beginning on January 1, 2012. Thereafter, each person so
20elected shall serve for a term of 4 years.
21    (k) A member of the board representing annuitant members of
22the Fund created under Article 10 shall be elected to the board
23as follows: the board shall arrange for and hold an election in
24which only those annuitant members under Article 10 shall be
25eligible to vote and be elected. Each person selected under
26this subsection shall serve for term of 4 years, with the term

 

 

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1of the first person so elected beginning January 1, 2012.
2    (l) If any provision of this Section or its application to
3any person or circumstance is held invalid, the invalidity of
4that provision does not affect other provisions or applications
5of this Section that can be given effect without the invalid
6provision or application.
7(Source: P.A. 92-66, eff. 7-12-01.)
 
8    (40 ILCS 5/9-219)  (from Ch. 108 1/2, par. 9-219)
9    Sec. 9-219. Computation of service.
10    (1) In computing the term of service of an employee prior
11to the effective date, the entire period beginning on the date
12he was first appointed and ending on the day before the
13effective date, except any intervening period during which he
14was separated by withdrawal from service, shall be counted for
15all purposes of this Article.
16    (2) In computing the term of service of any employee on or
17after the effective date, the following periods of time shall
18be counted as periods of service for age and service, widow's
19and child's annuity purposes:
20        (a) The time during which he performed the duties of
21    his position.
22        (b) Vacations, leaves of absence with whole or part
23    pay, and leaves of absence without pay not longer than 90
24    days.
25        (c) For an employee who is a member of a county police

 

 

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1    department or a correctional officer with the county
2    department of corrections, approved leaves of absence
3    without pay during which the employee serves as a full-time
4    officer or employee of an employee association, the
5    membership of which consists of other participants in the
6    Fund, provided that the employee contributes to the Fund
7    (1) the amount that he would have contributed had he
8    remained an active employee in the position he occupied at
9    the time the leave of absence was granted, (2) an amount
10    calculated by the Board representing employer
11    contributions, and (3) regular interest thereon from the
12    date of service to the date of payment. However, if the
13    employee's application to establish credit under this
14    subsection is received by the Fund on or after July 1, 2002
15    and before July 1, 2003, the amount representing employer
16    contributions specified in item (2) shall be waived.
17        For a former member of a county police department who
18    has received a refund under Section 9-164, periods during
19    which the employee serves as head of an employee
20    association, the membership of which consists of other
21    police officers, provided that the employee contributes to
22    the Fund (1) the amount that he would have contributed had
23    he remained an active member of the county police
24    department in the position he occupied at the time he left
25    service, (2) an amount calculated by the Board representing
26    employer contributions, and (3) regular interest thereon

 

 

09700SB0512ham001- 92 -LRB097 06621 AMC 56256 a

1    from the date of service to the date of payment. However,
2    if the former member of the county police department
3    retires on or after January 1, 1993 but no later than March
4    1, 1993, the amount representing employer contributions
5    specified in item (2) shall be waived.
6        (d) Any period of disability for which he received
7    disability benefit or whole or part pay.
8        (e) Accumulated vacation or other time for which an
9    employee who retires on or after November 1, 1990 receives
10    a lump sum payment at the time of retirement, provided that
11    contributions were made to the fund at the time such lump
12    sum payment was received. The service granted for the lump
13    sum payment shall not change the employee's date of
14    withdrawal for computing the effective date of the annuity.
15        (f) An employee may receive service credit for annuity
16    purposes for accumulated sick leave as of the date of the
17    employee's withdrawal from service, not to exceed a total
18    of 180 days, provided that the amount of such accumulated
19    sick leave is certified by the County Comptroller to the
20    Board and the employee pays an amount equal to the current
21    contribution rate for the member's applicable benefits
22    package 8.5% (9% for members of the County Police
23    Department who are eligible to receive an annuity under
24    Section 9-128.1) of the amount that would have been paid
25    had such accumulated sick leave been paid at the employee's
26    final rate of salary. Such payment shall be made within 30

 

 

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1    days after the date of withdrawal and prior to receipt of
2    the first annuity check. The service credit granted for
3    such accumulated sick leave shall not change the employee's
4    date of withdrawal for the purpose of computing the
5    effective date of the annuity.
6    (3) In computing the term of service of an employee on or
7after the effective date for ordinary disability benefit
8purposes, the following periods of time shall be counted as
9periods of service:
10        (a) Unless otherwise specified in Section 9-157, the
11    time during which he performed the duties of his position.
12        (b) Paid vacations and leaves of absence with whole or
13    part pay.
14        (c) Any period for which he received duty disability
15    benefit.
16        (d) Any period of disability for which he received
17    whole or part pay.
18    (4) For an employee who on January 1, 1958, was transferred
19by Act of the 70th General Assembly from his position in a
20department of welfare of any city located in the county in
21which this Article is in force and effect to a similar position
22in a department of such county, service shall also be credited
23for ordinary disability benefit and child's annuity for such
24period of department of welfare service during which period he
25was a contributor to a statutory annuity and benefit fund in
26such city and for which purposes service credit would otherwise

 

 

09700SB0512ham001- 94 -LRB097 06621 AMC 56256 a

1not be credited by virtue of such involuntary transfer.
2    (5) An employee described in subsection (e) of Section
39-108 shall receive credit for child's annuity and ordinary
4disability benefit for the period of time for which he was
5credited with service in the fund from which he was
6involuntarily separated through class or group transfer;
7provided, that no such credit shall be allowed to the extent
8that it results in a duplication of credits or benefits, and
9neither shall such credit be allowed to the extent that it was
10or may be forfeited by the application for and acceptance of a
11refund from the fund from which the employee was transferred.
12    (6) Overtime or extra service shall not be included in
13computing service. Not more than 1 year of service shall be
14allowed for service rendered during any calendar year.
15(Source: P.A. 92-599, eff. 6-28-02.)
 
16    (40 ILCS 5/9-220)  (from Ch. 108 1/2, par. 9-220)
17    Sec. 9-220. Basis of service credit.
18    (a) In computing the period of service of any employee for
19annuity purposes under Section 9-134, the following provisions
20shall govern:
21        (1) All periods prior to the effective date shall be
22    computed in accordance with the provisions governing the
23    computation of such service.
24        (2) Service on or after the effective date shall
25    include:

 

 

09700SB0512ham001- 95 -LRB097 06621 AMC 56256 a

1            (i) The actual period of time the employee
2        contributes or has contributed to the fund for service
3        rendered to age 65 plus the actual period of time after
4        age 65 for which the employee performs the duties of
5        his position or performs such duties and is given a
6        county contribution for age and service annuity or
7        minimum annuity purposes.
8            (ii) Leaves of absence from duty, or vacation, for
9        which an employee receives all or part of his salary.
10            (iii) Accumulated vacation or other time for which
11        an employee who retires on or after November 1, 1990
12        receives a lump sum payment at the time of retirement,
13        provided that contributions were made to the fund at
14        the time such lump sum payment was received. The
15        service granted for the lump sum payment shall not
16        change the employee's date of withdrawal for computing
17        the effective date of the annuity.
18            (iv) Accumulated sick leave as of the date of the
19        employee's withdrawal from service, not to exceed a
20        total of 180 days, provided that the amount of such
21        accumulated sick leave is certified by the County
22        Comptroller to the Board and the employee pays an
23        amount equal to the current contribution rate for the
24        member's applicable benefits package 8.5% (9% for
25        members of the County Police Department who are
26        eligible to receive an annuity under Section 9-128.1)

 

 

09700SB0512ham001- 96 -LRB097 06621 AMC 56256 a

1        of the amount that would have been paid had such
2        accumulated sick leave been paid at the employee's
3        final rate of salary. Such payment shall be made within
4        30 days after the date of withdrawal and prior to
5        receipt of the first annuity check. The service credit
6        granted for such accumulated sick leave shall not
7        change the employee's date of withdrawal for the
8        purpose of computing the effective date of the annuity.
9            (v) Periods during which the employee has had
10        contributions for annuity purposes made for him in
11        accordance with law while on military leave of absence
12        during World War II.
13            (vi) Periods during which the employee receives a
14        disability benefit under this Article.
15            (vii) For any person who first becomes a member on
16        or after January 1, 2011, the actual period of time the
17        employee contributes or has contributed to the fund for
18        service rendered up to the limitation on salary in
19        subsection (b-5) of Section 1-160 plus the actual
20        period of time thereafter for which the employee
21        performs the duties of his position and ceased
22        contributing due to the salary limitation in
23        subsection (b-5) of Section 1-160.
24        (3) The right to have certain periods of time
25    considered as service as stated in paragraph (2) of Section
26    9-164 shall not apply for annuity purposes unless the

 

 

09700SB0512ham001- 97 -LRB097 06621 AMC 56256 a

1    refunds shall have been repaid in accordance with this
2    Article.
3        (4) All service shall be computed in whole calendar
4    months, and at least 15 days of service in any one calendar
5    month shall constitute one calendar month of service, and 1
6    year of service shall be equal to the number of months,
7    days or hours for which an appropriation was made in the
8    annual appropriation ordinance for the position held by the
9    employee.
10    (b) For all other annuity purposes of this Article the
11following schedule shall govern the computation of a year of
12service of an employee whose salary or wages is on the basis
13stated, and any fractional part of a year of service shall be
14determined according to said schedule:
15    Annual or Monthly Basis: Service during 4 months in any 1
16calendar year;
17    Weekly Basis: Service during any 17 weeks of any 1 calendar
18year, and service during any week shall constitute a week of
19service;
20    Daily Basis: Service during 100 days in any 1 calendar
21year, and service during any day shall constitute a day of
22service;
23    Hourly Basis: Service during 800 hours in any 1 calendar
24year, and service during any hour shall constitute an hour of
25service.
26(Source: P.A. 96-1490, eff. 1-1-11.)
 

 

 

09700SB0512ham001- 98 -LRB097 06621 AMC 56256 a

1    (40 ILCS 5/9-235)  (from Ch. 108 1/2, par. 9-235)
2    Sec. 9-235. Felony conviction.
3    None of the benefits provided in this Article shall be paid
4to any person who is convicted of any felony relating to or
5arising out of or in connection with his service as an
6employee.
7    This section shall not operate to impair any contract or
8vested right heretofore acquired under any law or laws
9continued in this Article, nor to preclude the right to a
10refund.
11    All future entrants entering service after July 11, 1955,
12shall be deemed to have consented to the provisions of this
13section as a condition of coverage.
14    No refund paid to any person who is convicted of a felony
15relating to or arising out of or in connection with the
16person's service as a member shall include employer
17contributions or interest or, in the case of the self-managed
18plan authorized under Section 9-170.5, any employer
19contributions or investment return on employer contributions.
20(Source: Laws 1963, p. 161.)
 
21    (40 ILCS 5/9-240 new)
22    Sec. 9-240. Qualified plan status. No provision of this
23Article shall be interpreted in a way that would cause the Fund
24to cease to be a qualified plan under Section 401(a) of the

 

 

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1Internal Revenue Code.
 
2    (40 ILCS 5/10-103)  (from Ch. 108 1/2, par. 10-103)
3    Sec. 10-103. Members, contributions and benefits. The
4board shall cause the same deductions to be made from salaries
5and, subject to Section 10-109, allow the same annuities,
6refunds, and benefits, including, but not limited to,
7self-managed plan benefits, for employees of the district as
8are made and allowed for employees of the county.
9(Source: P.A. 95-1036, eff. 2-17-09.)
 
10    (40 ILCS 5/10-107)  (from Ch. 108 1/2, par. 10-107)
11    Sec. 10-107. Financing - Tax levy. The forest preserve
12district may levy an annual tax on the value, as equalized or
13assessed by the Department of Revenue, of all taxable property
14in the district for the purpose of providing revenue for the
15fund. The rate of such tax in any year may not exceed the rate
16herein specified for that year or the rate which will produce,
17when extended, the sum herein stated for that year, whichever
18is higher: for any year prior to 1970, .00103% or $195,000; for
19the year 1970, .00111% or $210,000; for the year 1971, .00116%
20or $220,000. For the year 1972 and each year thereafter, the
21Forest Preserve District shall levy a tax annually at a rate on
22the dollar of the value, as equalized or assessed by the
23Department of Revenue upon all taxable property in the county,
24when extended, not to exceed an amount equal to the total

 

 

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1amount of contributions by the employees to the fund made in
2the calendar year 2 years prior to the year for which the
3annual applicable tax is levied, multiplied by 1.25 for the
4year 1972; and by 1.30 for the years year 1973 through 2012.
5For 2013 and for each year thereafter, the amount levied shall
6be equal to the amount levied in 2009.
7    The tax shall be levied and collected in like manner with
8the general taxes of the district and shall be in addition to
9the maximum of all other tax rates which the district may levy
10upon the aggregate valuation of all taxable property and shall
11be exclusive of and in addition to the maximum amount and rate
12of taxes the district may levy for general purposes or under
13and by virtue of any laws which limit the amount of tax which
14the district may levy for general purposes. The county clerk of
15the county in which the forest preserve district is located in
16reducing tax levies under the provisions of "An Act concerning
17the levy and extension of taxes", approved May 9, 1901, as
18amended, shall not consider any such tax as a part of the
19general tax levy for forest preserve purposes, and shall not
20include the same in the limitation of 1% of the assessed
21valuation upon which taxes are required to be extended, and
22shall not reduce the same under the provisions of that Act. The
23proceeds of the tax herein authorized shall be kept as a
24separate fund.
25    The Board may establish a manpower program reserve, or a
26special forest preserve district contribution rate, with

 

 

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1respect to employees whose wages are funded as program
2participants under the Comprehensive Employment and Training
3Act of 1973 in the manner provided in subsection (d) or (e),
4respectively, of Section 9-169.
5(Source: P.A. 81-1509.)
 
6    (40 ILCS 5/10-109)
7    Sec. 10-109. Felony conviction. None of the benefits
8provided in this Article shall be paid to any person who is
9convicted of any felony relating to or arising out of or in
10connection with his service as an employee.
11    This Section shall not operate to impair any contract or
12vested right heretofore acquired under any law or laws
13continued in this Article, nor to preclude the right to a
14refund.
15    All future entrants entering service after the effective
16date of this amendatory Act of the 95th General Assembly shall
17be deemed to have consented to the provisions of this Section
18as a condition of coverage.
19    No refund paid to any person who is convicted of a felony
20relating to or arising out of or in connection with the
21person's service as a member shall include employer
22contributions or interest or, in the case of the self-managed
23plan, any employer contributions or investment return on
24employer contributions.
25(Source: P.A. 95-1036, eff. 2-17-09.)
 

 

 

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1    (40 ILCS 5/10-110 new)
2    Sec. 10-110. Maximum self-managed plan participation. By
3July 1, 2012, the Fund shall certify the total active
4participant population. When the number of participants that
5elect the self-managed plan is equal to 20% of the total active
6participant population, then no participant may elect the
7self-managed plan. Beginning in 2015 and every 3 years
8thereafter, the Fund shall recertify the total active
9participant population and the number of participants in the
10self-managed plan. If the number of participants in the
11self-managed plan is less than 20% of the recertified total
12active participant population, then eligible participants may
13elect to participate in the self-managed plan. However,
14participants shall be prohibited from electing to participate
15once the Fund determines that the number of participants in the
16self-managed plan is equal to 20% of the number of total active
17participants in the Fund.
 
18    (40 ILCS 5/10-111 new)
19    Sec. 10-111. Employer contributions to the self-managed
20plan. Beginning in fiscal year 2013, for participants electing
21benefits under the self-managed plan, an employer contribution
22shall be made each fiscal year in an amount equal to 6% of
23total pensionable payroll for the respective employee group.
 

 

 

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1    (40 ILCS 5/11-123.1 new)
2    Sec. 11-123.1. Reformed benefit package. "Reformed benefit
3package": The defined benefit retirement program maintained
4under the Fund for employees who first become participants in
5the Fund on or after January 1, 2011.
 
6    (40 ILCS 5/11-123.2 new)
7    Sec. 11-123.2. Self-managed plan. "Self-managed plan": The
8defined contribution retirement program maintained under the
9Fund as described in Section 11-131.2. The self-managed plan
10does not include retirement annuities or death, survivor,
11disability, or insurance benefits that are payable directly
12from the Fund as provided under this Article.
 
13    (40 ILCS 5/11-123.3 new)
14    Sec. 11-123.3. Traditional benefit package. "Traditional
15benefit package": The defined benefit retirement program
16maintained under the Fund for employees who first became
17participants in the Fund before January 1, 2011.
 
18    (40 ILCS 5/11-124)  (from Ch. 108 1/2, par. 11-124)
19    Sec. 11-124. Annuity.
20    "Annuity": Equal monthly payments for life, unless
21terminated earlier under Section 11-148, 11-152, 11-153, or
2211-230.
23    For annuities taking effect before January 1, 1998, the

 

 

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1first payment shall be due and payable one month after the
2occurrence of the event upon which payment of the annuity
3depends. Until August 1, 1999, payment shall be made for any
4part of a monthly period in which death of the annuitant
5occurs. Beginning August 1, 1999, all payments shall be made on
6the first day of the calendar month and shall be for the entire
7calendar month, without proration. The last payment shall be
8made on the first day of the calendar month in which the
9annuity payment period ends. A pro rata amount shall be paid
10for that part of the month from the July 1999 annuity payment
11date through July 31, 1999.
12    For annuities taking effect on or after January 1, 1998,
13payments shall be made as of the first day of the calendar
14month, with the first payment to be made as of the first day of
15the calendar month coincidental with or next following the
16first day of the annuity payment period, and the last payment
17to be made as of the first day of the calendar month in which
18the annuity payment period ends. For annuities taking effect on
19or after January 1, 1998, all payments shall be for the entire
20calendar month, without proration.
21    For the purposes of this Section, the "annuity payment
22period" means the period beginning on the day after the
23occurrence of the event upon which payment of the annuity
24depends, and ending on the day upon which the death of the
25annuitant or other event terminating the annuity occurs.
26    The provisions of this Section do not apply to participants

 

 

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1who are participating in the self-managed plan.
2(Source: P.A. 90-31, eff. 6-27-97; 91-887, eff. 7-6-00.)
 
3    (40 ILCS 5/11-131.1 new)
4    Sec. 11-131.1. Benefit accruals on and after January 1,
52013.
6    (a) Each participating employee under this Article, other
7than a person who first becomes an employee and a participant
8on or after January 1, 2011, shall choose which retirement
9program he or she wishes to participate in with respect to all
10periods of employment occurring on and after January 1, 2013,
11except that such participants with more than 5 years of
12creditable service at the time of such election shall only be
13eligible to elect one of the retirement programs in paragraphs
14(1) or (2) of this subsection (a). The retirement program
15election made by the participating employee must be made no
16later than July 1, 2012. The participating employee shall elect
17one of the following retirement programs:
18        (1) the traditional benefit package provided by the
19    Fund;
20        (2) the reformed benefit package provided by the Fund;
21    or
22        (3) the self-managed plan provided by the Fund.
23    (b) A person who first becomes an employee and a
24participant in the Fund on or after January 1, 2011 shall be
25given the choice to elect which retirement program he or she

 

 

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1wishes to participate in with respect to all periods of covered
2employment occurring on and after January 1, 2013. The
3participant shall elect one of the retirement programs provided
4in paragraph (2) or (3) of subsection (a) of this Section. The
5participant must make the election (i) by July 1, 2012 or
6within 6 months after the participant's first day of
7employment, whichever is later, and (ii) if applicable, every 3
8years thereafter.
9    (c) The participant election authorized by this Section is
10a one-time, irrevocable election, except that any individual
11making an election for the retirement program described under
12paragraph (1) or (2) of subsection (a) shall make an election
13for a period of 3 years and shall make subsequent elections
14every 3 years during a 6-month period prescribed by the Fund.
15The election shall be made in writing, in the manner prescribed
16by the Fund. Any participant who fails to make the election
17shall, by default, participate in the benefit program provided
18under paragraph (2) of subsection (a) of this Section.
19    (d) Participants who have already made an election pursuant
20to subsection (a) or (b) shall be given the opportunity to make
21a new election as follows:
22        (1) Each participant in the traditional benefit
23    package provided under paragraph (1) of subsection (a) of
24    this Section shall have the opportunity to elect to
25    terminate participation in the traditional benefit package
26    and to elect to have retirement benefits for future service

 

 

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1    provided under either the reformed benefit package
2    provided under paragraph (2) of subsection (a) of this
3    Section or the self-managed plan provided under paragraph
4    (3) of subsection (a) of this Section. However, such
5    participants with more than 5 years of creditable service
6    shall be prohibited from electing paragraph (3) of
7    subsection (a) of this Section.
8        (2) Each participant that has less than 5 years of
9    creditable service and participates in the reformed
10    benefit package provided under paragraph (2) of subsection
11    (a) of this Section shall have the opportunity to elect to
12    terminate participation in the reformed benefit package
13    and to elect to have retirement benefits for future service
14    provided under the self-managed plan provided under
15    paragraph (3) of subsection (a) of this Section.
16        (3) The elections permitted under paragraphs (1) and
17    (2) must be made during a 6-month period in the manner
18    prescribed by the Fund.
19    (e) If a participant with an accrued benefit under the
20traditional benefit package elects the reformed benefit
21package, the participant's total accrued benefit for purposes
22of determining an annuity shall be the sum of (i) the
23participant's benefit accruals under the traditional benefit
24package, based on the participant's pay and service under the
25traditional benefit package and frozen with respect to pay for
26service earned subsequent to participation under the

 

 

09700SB0512ham001- 108 -LRB097 06621 AMC 56256 a

1traditional benefit package and (ii) the participant's benefit
2accruals based on pay and service under the reformed benefit
3package. All rights and features provided under the traditional
4benefit package will be preserved with respect to benefits
5earned under such package with respect to service completed
6prior to the election to participate in the reformed benefit
7package. All service completed under the Fund shall count for
8purposes of determining retirement eligibility and vesting
9under both the traditional benefit package and the reformed
10benefit package, provided that the vesting requirements of the
11traditional benefit package shall continue to govern vesting
12for participants in the reformed benefit package.
13    (f) If a participant with an accrued benefit under the
14traditional benefit package or the reformed benefit package
15elects the self-managed plan provided under paragraph (3) of
16subsection (a) of this Section, the participant's total accrued
17benefit for purposes of determining an annuity shall be the
18participant's benefit accruals prior to participation in the
19self-managed plan, based on the participant's pay and service
20and frozen with respect to pay for service earned subsequent to
21participation in the traditional or reformed benefit package.
22However, the participant shall also have an accrued
23self-managed plan balance as specified in subsection (h) of
24Section 11-131.2, for periods of covered employment on or after
25participation in the self-managed plan. All rights and features
26provided under the traditional or reformed benefit package will

 

 

09700SB0512ham001- 109 -LRB097 06621 AMC 56256 a

1be preserved with respect to benefits earned under such package
2with respect to service completed prior to the election to
3participate in the self-managed plan. All service completed
4under the traditional or reformed benefit package and the
5self-managed plan shall count for purposes of determining
6retirement eligibility and vesting under the traditional
7benefit package and the self-managed plan.
8    (g) An individual with less than 5 years of creditable
9service and who is a participant in the Fund but is not a
10participating employee on July 1, 2012 shall be allowed to
11elect, based on the eligibility criteria specified in this
12Code, one of the retirement programs provided in paragraph (1),
13(2), or (3) of subsection (a) of this Section within 6 months
14after becoming a participating employee, based on eligibility.
15    An individual with 5 or more years of creditable service
16and who is a participant in the Fund but is not a participating
17employee on July 1, 2012 shall be allowed to elect, based on
18the eligibility criteria specified in this Code, one of the
19retirement programs provided in paragraph (1) or (2) of
20subsection (a) of this Section within 6 months after becoming a
21participating employee, based on eligibility.
 
22    (40 ILCS 5/11-131.2 new)
23    Sec. 11-131.2. Self-managed plan.
24    (a) Purpose. The Laborers' and Retirement Board Employees'
25Annuity and Benefit Fund shall establish and administer a

 

 

09700SB0512ham001- 110 -LRB097 06621 AMC 56256 a

1self-managed plan, which shall offer members the opportunity to
2accumulate assets for retirement through a combination of
3employee and employer contributions that may be invested in
4mutual funds, collective investment funds, or other investment
5products and may be used to purchase annuity contracts, either
6fixed or variable or a combination thereof. The plan must be
7qualified under the Internal Revenue Code of 1986.
8    (b) The Laborers' and Retirement Board Employees' Annuity
9and Benefit Fund shall be the plan sponsor for the self-managed
10plan and shall prepare a plan document and prescribe such rules
11and procedures as are considered necessary or desirable for the
12administration of the self-managed plan. Consistent with its
13fiduciary duty to the participants and beneficiaries of the
14self-managed plan, the Board may delegate aspects of plan
15administration as it sees fit to companies authorized to do
16business in this State.
17    (c) Selection of service providers and funding vehicles.
18The Fund may solicit proposals to provide administrative
19services and funding vehicles for the self-managed plan from
20insurance and annuity companies and mutual fund companies,
21banks, trust companies, or other financial institutions
22authorized to do business in this State.
23    The Fund shall periodically review each approved company. A
24company may continue to provide administrative services and
25funding vehicles for the self-managed plan only so long as it
26continues to be an approved company under contract with the

 

 

09700SB0512ham001- 111 -LRB097 06621 AMC 56256 a

1Board.
2    (d) Employee direction. Employees who are participating in
3the program must be allowed to direct the transfer of their
4account balances among the various investment options offered,
5subject to applicable contractual provisions. The employee
6shall not be deemed a fiduciary by reason of providing such
7investment direction. A person who is a fiduciary shall not be
8liable for any loss resulting from such investment direction
9and shall not be deemed to have breached any fiduciary duty by
10acting in accordance with that direction. Neither the Fund nor
11the employer guarantees any of the investments in the
12employee's account balances.
13    (e) Participation. An employee eligible to participate in
14the self-managed plan must make a written election under
15Section 11-131.1 and the procedures established by the Fund.
16Participation in the self-managed plan by an electing employee
17shall begin on the first day of the first pay period following
18the later of (i) the date the employee's election is filed with
19the Fund or (ii) January 1, 2013.
20    An employee who has elected to participate in the
21self-managed plan under this Section must continue
22participation while employed in an eligible position.
23Participation in the self-managed plan under this Section shall
24constitute membership in the Laborers' and Retirement Board
25Employees' Annuity and Benefit Fund.
26    An employee under this Section shall be entitled to the

 

 

09700SB0512ham001- 112 -LRB097 06621 AMC 56256 a

1benefits of Article 20 of this Code.
2    (f) Contributions. The self-managed plan shall be funded by
3contributions from employees participating in the self-managed
4plan and employer contributions as provided in this Section.
5    This required contribution shall be made as an "employer
6pick up" under Section 414(h) of the Internal Revenue Code of
71986 or any successor Section thereof. In no event shall an
8employee have an option of receiving these amounts in cash. The
9program shall provide for employer contributions to be credited
10to each self-managed plan participant at a rate of 6% of the
11participating member's salary. The amounts so credited shall be
12paid into the employee's self-managed plan account in a manner
13to be prescribed by the Fund.
14    The employer shall make contributions by the
15appropriations to the Fund of the employer contributions
16required for employees who participate in the self-managed plan
17under this Section. The amount required shall be certified by
18the Board and paid by the employer in accordance with this
19Article. The Fund shall not be obligated to remit the required
20employer contributions to any person or entity until it has
21received the required employer contributions from the
22employer.
23    (g) Vesting; withdrawal; return to service. A participant
24in the self-managed plan becomes vested in the employer
25contributions credited to his or her account in the
26self-managed plan on the earliest to occur of the following:

 

 

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1(1) completion of 5 years of creditable service; (2) the death
2of the participant while in active service, if the participant
3has completed at least 1 1/2 years of service; or (3) the
4participant's election to retire and apply the reciprocal
5provisions of Article 20 of this Code.
6    (h) Benefit amounts. If a participant who is vested in
7employer contributions terminates employment, the employee
8shall be entitled to a benefit which is based on the account
9values attributable to the employer and member contributions
10and any investment return thereon.
11    If a participant who is not vested in employer
12contributions terminates employment, the participant shall be
13entitled to a benefit based solely on the account values
14attributable to the participant's contributions and any
15investment return thereon, and the employer contributions and
16any investment return thereon shall be forfeited. Any employer
17contributions which are forfeited shall become part of the
18trust.
 
19    (40 ILCS 5/11-131.3 new)
20    Sec. 11-131.3. Minimum benefit and allocation provisions.
21Each participant in the System shall receive a minimum benefit
22or allocation determined as follows:
23        (1) If the participant is participating in the
24    traditional benefit package provided under paragraph (1)
25    of subsection (a) of Section 11-131.1 of this Code or the

 

 

09700SB0512ham001- 114 -LRB097 06621 AMC 56256 a

1    revised defined benefit package provided under paragraph
2    (2) of subsection (a) of Section 11-131.1 of this Code, the
3    participant shall receive a minimum benefit (commencing on
4    his or her Social Security retirement age) that is equal to
5    the annual primary insurance amount the participant would
6    have under Social Security. For the purposes of this item
7    (1), the primary insurance amount a participant would have
8    under Social Security shall be calculated so that the
9    System meets the requirements necessary to be considered a
10    "retirement system" under Section 3121(b)(7)(F) of the
11    Internal Revenue Code and the regulations in effect
12    thereunder.
13        (2) If the participant is participating in the
14    self-managed plan provided under Section 11-131.2 of this
15    Code, the member shall receive a minimum allocation equal
16    to 7.5% of the participant's compensation for service
17    during the period. All contributions shall be taken into
18    account for this purpose. For the purposes of this
19    paragraph (2), the minimum allocation shall be calculated
20    so that the System meets the requirements necessary to be
21    considered a "retirement system" under Section
22    3121(b)(7)(F) of the Internal Revenue Code and the
23    regulations in effect thereunder.
 
24    (40 ILCS 5/11-131.4 new)
25    Sec. 11-131.4. Employer contributions to the self-managed

 

 

09700SB0512ham001- 115 -LRB097 06621 AMC 56256 a

1plan. Beginning in fiscal year 2013, for members electing
2benefits under paragraph (3) of subsection (a) of Section
311-131.1, an employer contribution shall be made each fiscal
4year in an amount equal to 6% of total pensionable payroll for
5the respective employee group.
 
6    (40 ILCS 5/11-169)  (from Ch. 108 1/2, par. 11-169)
7    Sec. 11-169. Financing; tax levy.
8    (a) Except as provided in subsection (f) of this Section,
9the city council of the city shall levy a tax annually upon all
10taxable property in the city at the rate that will produce a
11sum which, when added to the amounts deducted from the salaries
12of the employees or otherwise contributed by them and the
13amounts deposited under subsection (f), will be sufficient for
14the requirements of this Article. For the years prior to the
15year 1950 the tax rate shall be as provided for under "The 1935
16Act". Beginning with the year 1950 to and including the year
171969 such tax shall be not more than .036% annually of the
18value, as equalized or assessed by the Department of Revenue,
19of all taxable property within such city. Beginning with the
20year 1970 and each year thereafter the city shall levy a tax
21annually at a rate on the dollar of the value, as equalized or
22assessed by the Department of Revenue of all taxable property
23within such city that will produce, when extended, not to
24exceed an amount equal to the total amount of contributions by
25the employees to the fund made in the calendar year 2 years

 

 

09700SB0512ham001- 116 -LRB097 06621 AMC 56256 a

1prior to the year for which the annual applicable tax is
2levied, multiplied by 1.1 for the years 1970, 1971 and 1972;
31.145 for the year 1973; 1.19 for the year 1974; 1.235 for the
4year 1975; 1.280 for the year 1976; 1.325 for the year 1977;
51.370 for the years 1978 through 1998; and 1.000 for the years
6year 1999 through 2012. For 2013 and for each year thereafter,
7the amount levied shall be equal to the amount levied in 2010.
8    The tax shall be levied and collected in like manner with
9the general taxes of the city, and shall be exclusive of and in
10addition to the amount of tax the city is now or may hereafter
11be authorized to levy for general purposes under any laws which
12may limit the amount of tax which the city may levy for general
13purposes. The county clerk of the county in which the city is
14located, in reducing tax levies under the provisions of any Act
15concerning the levy and extension of taxes, shall not consider
16the tax herein provided for as a part of the general tax levy
17for city purposes, and shall not include the same within any
18limitation of the per cent of the assessed valuation upon which
19taxes are required to be extended for such city.
20    Revenues derived from such tax shall be paid to the city
21treasurer of the city as collected and held by him for the
22benefit of the fund.
23    If the payments on account of taxes are insufficient during
24any year to meet the requirements of this Article, the city may
25issue tax anticipation warrants against the current tax levy.
26    (b) On or before January 10, annually, the board shall

 

 

09700SB0512ham001- 117 -LRB097 06621 AMC 56256 a

1notify the city council of the requirement of this Article that
2the tax herein provided shall be levied for that current year.
3The board shall compute the amounts necessary for the purposes
4of this fund to be credited to the reserves established and
5maintained as herein provided, and shall make an annual
6determination of the amount of the required city contributions;
7and certify the results thereof to the city council.
8    (c) In respect to employees of the city who are transferred
9to the employment of a park district by virtue of "Exchange of
10Functions Act of 1957" the corporate authorities of the park
11district shall annually levy a tax upon all the taxable
12property in the park district at such rate per cent of the
13value of such property, as equalized or assessed by the
14Department of Revenue, as shall be sufficient, when added to
15the amounts deducted from their salaries and otherwise
16contributed by them, to provide the benefits to which they and
17their dependents and beneficiaries are entitled under this
18Article. The city shall not levy a tax hereunder in respect to
19such employees.
20    The tax so levied by the park district shall be in addition
21to and exclusive of all other taxes authorized to be levied by
22the park district for corporate, annuity fund, or other
23purposes. The county clerk of the county in which the park
24district is located, in reducing any tax levied under the
25provisions of any Act concerning the levy and extension of
26taxes shall not consider such tax as part of the general tax

 

 

09700SB0512ham001- 118 -LRB097 06621 AMC 56256 a

1levy for park purposes, and shall not include the same in any
2limitation of the per cent of the assessed valuation upon which
3taxes are required to be extended for the park district. The
4proceeds of the tax levied by the park district, upon receipt
5by the district, shall be immediately paid over to the city
6treasurer of the city for the uses and purposes of the fund.
7    The various sums to be contributed by the city and
8allocated for the purposes of this Article, and any interest to
9be contributed by the city, shall be taken from the revenue
10derived from the taxes authorized in this Section, and no money
11of such city derived from any source other than the levy and
12collection of those taxes or the sale of tax anticipation
13warrants in accordance with the provisions of this Article
14shall be used to provide revenue for this Article, except as
15expressly provided in this Section.
16    If it is not possible for the city to make contributions
17for age and service annuity and widow's annuity concurrently
18with the employee's contributions made for such purposes, such
19city shall make such contributions as soon as possible and
20practicable thereafter with interest thereon at the effective
21rate to the time they shall be made.
22    (d) With respect to employees whose wages are funded as
23participants under the Comprehensive Employment and Training
24Act of 1973, as amended (P.L. 93-203, 87 Stat. 839, P.L.
2593-567, 88 Stat. 1845), hereinafter referred to as CETA,
26subsequent to October 1, 1978, and in instances where the board

 

 

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1has elected to establish a manpower program reserve, the board
2shall compute the amounts necessary to be credited to the
3manpower program reserves established and maintained as herein
4provided, and shall make a periodic determination of the amount
5of required contributions from the City to the reserve to be
6reimbursed by the federal government in accordance with rules
7and regulations established by the Secretary of the United
8States Department of Labor or his designee, and certify the
9results thereof to the City Council. Any such amounts shall
10become a credit to the City and will be used to reduce the
11amount which the City would otherwise contribute during
12succeeding years for all employees.
13    (e) In lieu of establishing a manpower program reserve with
14respect to employees whose wages are funded as participants
15under the Comprehensive Employment and Training Act of 1973, as
16authorized by subsection (d), the board may elect to establish
17a special municipality contribution rate for all such
18employees. If this option is elected, the City shall contribute
19to the Fund from federal funds provided under the Comprehensive
20Employment and Training Act program at the special rate so
21established and such contributions shall become a credit to the
22City and be used to reduce the amount which the City would
23otherwise contribute during succeeding years for all
24employees.
25    (f) In lieu of levying all or a portion of the tax required
26under this Section in any year, the city may deposit with the

 

 

09700SB0512ham001- 120 -LRB097 06621 AMC 56256 a

1city treasurer no later than March 1 of that year for the
2benefit of the fund, to be held in accordance with this
3Article, an amount that, together with the taxes levied under
4this Section for that year, is not less than the amount of the
5city contributions for that year as certified by the board to
6the city council. The deposit may be derived from any source
7legally available for that purpose, including, but not limited
8to, the proceeds of city borrowings. The making of a deposit
9shall satisfy fully the requirements of this Section for that
10year to the extent of the amounts so deposited. Amounts
11deposited under this subsection may be used by the fund for any
12of the purposes for which the proceeds of the tax levied by the
13city under this Section may be used, including the payment of
14any amount that is otherwise required by this Article to be
15paid from the proceeds of that tax.
16(Source: P.A. 90-31, eff. 6-27-97; 90-766, eff. 8-14-98.)
 
17    (40 ILCS 5/11-170)  (from Ch. 108 1/2, par. 11-170)
18    Sec. 11-170. Contributions for age and service annuities
19for present employees, future entrants and re-entrants.
20    (a) Beginning on the effective date and prior to July 1,
211947, 3 1/4%; and beginning on July 1, 1947 and prior to July
221, 1953, 5%; and beginning July 1, 1953 and prior to January 1,
231972, 6%; and beginning January 1, 1972, 6 1/2% of each payment
24of the salary of each present employee, future entrant and
25re-entrant shall be contributed to the fund as a deduction from

 

 

09700SB0512ham001- 121 -LRB097 06621 AMC 56256 a

1salary for age and service annuity. Such deductions beginning
2on the effective date and prior to June 30, 1947, inclusive
3shall be made for a future entrant while he is in service until
4he attains age 65, and for a present employee while he is in
5service until the amount so deducted from his salary with
6interest at the rate of 4% per annum shall be equal to the sum
7which would have accumulated to his credit from sums deducted
8from his salary if deductions at the rate herein stated had
9been made during his entire service until he attained age 65
10with interest at 4% per annum for the period subsequent to his
11attainment of age 65. Such deductions beginning July 1, 1947
12shall be made and continued for employees while in the service.
13    (b) Concurrently with each employee contribution, the city
14shall contribute beginning on the effective date and prior to
15July 1, 1947, 5 3/4%; and beginning July 1, 1947 and prior to
16July 1, 1953, 7%; and beginning July 1, 1953, 6% of each
17payment of such salary until the employee attains age 65.
18    (c) Each employee contribution made prior to the date age
19and service annuity for an employee is fixed and each
20corresponding city contribution shall be allocated to the
21account of and credited to the employee for whose benefit it is
22made.
23    (d) Notwithstanding any other provision of this Article,
24effective January 1, 2013, all participants shall be required
25to make the following contributions:
26        (1) Participants who elect the traditional benefit

 

 

09700SB0512ham001- 122 -LRB097 06621 AMC 56256 a

1    package under paragraph (1) of subsection (a) of Section
2    11-131.1 of this Code shall contribute:
3            (A) In fiscal year 2013, fiscal year 2014, and
4        fiscal year 2015, an amount equal to 12.75% of salary.
5            (B) In fiscal year 2016 and in each fiscal year
6        thereafter, a percentage of salary equal to the
7        actuarially determined normal cost of the traditional
8        benefit package, minus an amount equal to 6% of total
9        pensionable salary. The Fund shall certify the
10        actuarially determined normal cost of the traditional
11        benefit package and the amount of required participant
12        contributions by July 1, 2015 and every 3 years
13        thereafter.
14        (2) Participants who elect the reformed benefit
15    package under paragraph (2) of subsection (a) of Section
16    11-131.1 of this Code shall contribute:
17            (A) In fiscal year 2013, fiscal year 2014, and
18        fiscal year 2015, an amount equal to 7% of salary.
19            (B) In fiscal year 2016 and in each fiscal year
20        thereafter, a percentage of salary equal to the
21        actuarially determined normal cost of the traditional
22        benefit package, minus an amount equal to 6% of total
23        pensionable salary. The Fund shall certify the
24        actuarially determined normal cost of the reformed
25        benefit package and the amount of required participant
26        contributions by July 1, 2015 and every 3 years

 

 

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1        thereafter.
2        (3) Participants who elect the self-managed plan under
3    paragraph (3) of subsection (a) of Section 11-131.1 of this
4    Code shall contribute a minimum of 6% of salary.
5    Participants who elect the self-managed plan provided
6    under Section 11-131.2 of this Code may elect to increase
7    their employee contributions in accordance with rules
8    prescribed by the Board.
9    No prior contribution increases or other additional
10contributions specified by this Section shall apply to any
11participant for service on or after January 1, 2013.
12(Source: P.A. 81-1536.)
 
13    (40 ILCS 5/11-230)  (from Ch. 108 1/2, par. 11-230)
14    Sec. 11-230. Felony conviction.
15    None of the benefits provided in this Article shall be paid
16to any person who is convicted of any felony relating to or
17arising out of or in connection with his service as employee.
18    This section shall not operate to impair any contract or
19vested right heretofore acquired under any law or laws
20continued in this Article, nor to preclude the right to a
21refund.
22    All future entrants entering service after July 11, 1955,
23shall be deemed to have consented to the provisions of this
24section as a condition of coverage.
25    No refund paid to any person who is convicted of a felony

 

 

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1relating to or arising out of or in connection with the
2person's service as an employee shall include employer
3contributions or interest or, in the case of the self-managed
4plan authorized under Section 11-131.2, any employer
5contributions or investment return on employer contributions.
6(Source: Laws 1963, p. 161.)
 
7    (40 ILCS 5/11-235 new)
8    Sec. 11-235. Qualified plan status. No provision of this
9Article shall be interpreted in a way that would cause the Fund
10to cease to be a qualified plan under Section 401(a) of the
11Internal Revenue Code.
 
12    (40 ILCS 5/12-116)  (from Ch. 108 1/2, par. 12-116)
13    Sec. 12-116. Fiscal year.
14    "Fiscal year": For periods prior to July 1, 2011, the The
15year commencing with July 1st and ending with June 30th next
16following. Beginning January 1, 2012, the year commencing
17January 1 and ending December 31. The fiscal year which begins
18July 1, 2011 shall end December 31, 2011.
19(Source: Laws 1963, p. 161.)
 
20    (40 ILCS 5/12-125.2 new)
21    Sec. 12-125.2. Reformed benefit package. "Reformed benefit
22package": The defined benefit retirement program maintained
23under the Fund for employees who first become employees in the

 

 

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1Fund on or after January 1, 2011.
 
2    (40 ILCS 5/12-125.3 new)
3    Sec. 12-125.3. Self-managed plan. "Self-managed plan": The
4defined contribution retirement program maintained under the
5Fund as described in Section 12-128.2.
 
6    (40 ILCS 5/12-125.4 new)
7    Sec. 12-125.4. Traditional benefit package. "Traditional
8benefit package": The defined benefit retirement program
9maintained under the Fund for employees who first became
10employees in the Fund before January 1, 2011.
 
11    (40 ILCS 5/12-128.1 new)
12    Sec. 12-128.1. Benefit accruals on and after January 1,
132013.
14    (a) Each employee under this Article, other than a person
15who first becomes an employee on or after January 1, 2011,
16shall choose which retirement program he or she wishes to
17participate in with respect to all periods of covered
18employment occurring on and after January 1, 2013, except that
19such employees with more than 5 years of creditable service at
20the time of such election shall only be eligible to elect one
21of the of the retirement programs in paragraphs (1) or (2) of
22this subsection (a). The retirement program election made by
23the employee must be made no later than July 1, 2012. The

 

 

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1employee shall elect one of the following retirement programs:
2        (1) the traditional benefit package provided by the
3    Fund;
4        (2) the reformed benefit package provided by the Fund;
5    or
6        (3) the self-managed plan provided by the Fund.
7    (b) A person who first becomes an employee in the Fund on
8or after January 1, 2011 shall be given the choice to elect
9which retirement program he or she wishes to participate in
10with respect to all periods of employment occurring on and
11after January 1, 2013. The employee shall elect one of the
12retirement programs provided in paragraph (2) or (3) of
13subsection (a) of this Section. The participant must make the
14election (i) by July 1, 2012 or within 6 months after the
15employee's first day of covered employment, whichever is later,
16and (ii) if applicable, every 3 years thereafter.
17    (c) The employee election authorized by this Section is an
18irrevocable election, except that any individual making an
19election for the retirement program described under paragraph
20(1) or (2) of subsection (a) shall make an election for a
21period of 3 years and shall make subsequent elections every 3
22years during a 6-month period prescribed by the Fund. The
23election shall be made in writing, in the manner prescribed by
24the Fund. Any participant who fails to make the election shall,
25by default, participate in the benefit program provided under
26paragraph (2) of subsection (a) of this Section.

 

 

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1    (d) Employees who have already made an election pursuant to
2subsection (a) or (b) shall be given the opportunity to make a
3new election as follows:
4        (1) Each employee in the traditional benefit package
5    provided under paragraph (1) of subsection (a) of this
6    Section shall have the opportunity to elect to terminate
7    participation in the traditional benefit package and to
8    elect to have retirement benefits for future service
9    provided under either the reformed benefit package
10    provided under paragraph (2) of subsection (a) of this
11    Section or the self-managed plan provided under paragraph
12    (3) of subsection (a) of this Section. However, such
13    participants with more than 5 years of creditable service
14    shall be prohibited from electing paragraph (3) of
15    subsection (a) of this Section.
16        (2) Each employee that has less than 5 years of
17    creditable service and participates in the reformed
18    benefit package provided under paragraph (2) of subsection
19    (a) of this Section shall have the opportunity to elect to
20    terminate participation in the reformed benefit package
21    and to elect to have retirement benefits for future service
22    provided under the self-managed plan provided under
23    paragraph (3) of subsection (a) of this Section.
24        (3) The elections permitted under paragraphs (1) and
25    (2) must be made during a 6-month period in the manner
26    prescribed by the Fund.

 

 

09700SB0512ham001- 128 -LRB097 06621 AMC 56256 a

1    (e) If an employee with an accrued benefit under the
2traditional benefit package elects the reformed benefit
3package, the employee's total accrued benefit for purposes of
4determining an annuity shall be the sum of (i) the employee's
5benefit accruals under the traditional benefit package, based
6on the employee's pay and service under the traditional benefit
7package and frozen with respect to pay for service earned
8subsequent to participation under the traditional benefit
9package and (ii) the employee's benefit accruals based on pay
10and service under the reformed benefit package. All rights and
11features provided under the traditional benefit package will be
12preserved with respect to benefits earned under such package
13with respect to service completed prior to the election to
14participate in the reformed benefit package. All service
15completed under the Fund shall count for purposes of
16determining retirement eligibility and vesting under both the
17traditional benefit package and the reformed benefit package,
18provided that the vesting requirements of the traditional
19benefit package shall continue to govern vesting for employees
20in the reformed benefit package.
21    (f) If an employee with an accrued benefit under the
22traditional benefit package or the reformed benefit package
23elects the self-managed plan provided under paragraph (3) of
24subsection (a) of this Section, the employee's total accrued
25benefit for purposes of determining an annuity shall be the
26employee's benefit accruals prior to participation in the

 

 

09700SB0512ham001- 129 -LRB097 06621 AMC 56256 a

1self-managed plan, based on the employee's pay and service and
2frozen with respect to pay for service earned subsequent to
3participation in the traditional or reformed benefit package.
4However, the employee shall also have an accrued self-managed
5plan balance as specified in subsection (h) of Section
612-128.2, for periods of covered employment on or after
7participation in the self-managed plan. All rights and features
8provided under the traditional benefit package must be
9preserved with respect to benefits earned under that package
10with respect to service completed prior to the election to
11participate in the self-managed plan. All service completed
12under the traditional benefit package and the self-managed plan
13shall count for purposes of determining retirement eligibility
14and vesting under the traditional benefit package and the
15self-managed plan.
16    (g) An individual with less than 5 years of creditable
17service and who is a participant in the Fund but is not a
18participating employee on July 1, 2012 shall be allowed to
19elect, based on the eligibility criteria specified in this
20Code, one of the retirement programs provided in paragraph (1),
21(2), or (3) of subsection (a) of this Section within 6 months
22after becoming an employee, based on eligibility.
23    An individual with 5 or more years of creditable service
24and who is a participant in the Fund but is not a participating
25employee on July 1, 2012 shall be allowed to elect, based on
26the eligibility criteria specified in this Code, one of the

 

 

09700SB0512ham001- 130 -LRB097 06621 AMC 56256 a

1retirement programs provided in paragraph (1) or (2) of
2subsection (a) of this Section within 6 months after becoming
3an employee, based on eligibility.
 
4    (40 ILCS 5/12-128.2 new)
5    Sec. 12-128.2. Self-managed plan.
6    (a) Purpose. The Park Employees' and Retirement Board
7Employees' Annuity and Benefit Fund shall establish and
8administer a self-managed plan, which shall offer employees the
9opportunity to accumulate assets for retirement through a
10combination of employee and employer contributions that may be
11invested in mutual funds, collective investment funds, or other
12investment products and may be used to purchase annuity
13contracts, either fixed or variable or a combination thereof.
14The plan must be qualified under the Internal Revenue Code of
151986.
16    (b) The Park Employees' and Retirement Board Employees'
17Annuity and Benefit Fund shall be the plan sponsor for the
18self-managed plan and shall prepare a plan document and
19prescribe such rules and procedures as are considered necessary
20or desirable for the administration of the self-managed plan.
21Consistent with its fiduciary duty to the participants and
22beneficiaries of the self-managed plan, the Board of Trustees
23of the Fund may delegate aspects of plan administration as it
24sees fit to companies authorized to do business in this State.
25    (c) Selection of service providers and funding vehicles.

 

 

09700SB0512ham001- 131 -LRB097 06621 AMC 56256 a

1The Fund may solicit proposals to provide administrative
2services and funding vehicles for the self-managed plan from
3insurance and annuity companies and mutual fund companies,
4banks, trust companies, or other financial institutions
5authorized to do business in this State.
6    The Fund shall periodically review each approved company. A
7company may continue to provide administrative services and
8funding vehicles for the self-managed plan only so long as it
9continues to be an approved company under contract with the
10Board.
11    (d) Employee direction. Employees who are participating in
12the program must be allowed to direct the transfer of their
13account balances among the various investment options offered,
14subject to applicable contractual provisions. The employee
15shall not be deemed a fiduciary by reason of providing such
16investment direction. A person who is a fiduciary shall not be
17liable for any loss resulting from such investment direction
18and shall not be deemed to have breached any fiduciary duty by
19acting in accordance with that direction. Neither the Fund nor
20the employer guarantees any of the investments in the
21employee's account balances.
22    (e) Participation. An employee eligible to participate in
23the self-managed plan must make a written election under
24Section 12-128.1 and the procedures established by the Fund.
25Participation in the self-managed plan by an electing employee
26shall begin on the first day of the first pay period following

 

 

09700SB0512ham001- 132 -LRB097 06621 AMC 56256 a

1the date the employee's election is filed with the Fund.
2    An employee who has elected to participate in the
3self-managed plan under this Section must continue
4participation while employed in an eligible position.
5Participation in the self-managed plan under this Section shall
6constitute membership in the Park Employees' and Retirement
7Board Employees' Annuity and Benefit Fund.
8    An employee under this Section shall be entitled to the
9benefits of Article 20 of this Code.
10    (f) Contributions. The self-managed plan shall be funded by
11contributions from employees participating in the self-managed
12plan and employer contributions as provided in this Section.
13    This required contribution shall be made as an "employer
14pick up" under Section 414(h) of the Internal Revenue Code of
151986 or any successor Section thereof. In no event shall a
16employee have an option of receiving these amounts in cash. The
17program shall provide for employer contributions to be credited
18to each self-managed plan participant at a rate of 6% of the
19participating employee's salary, less the amount used by the
20Fund to provide disability benefits for the employee. The
21amounts so credited shall be paid into the employee's
22self-managed plan account in a manner to be prescribed by the
23Fund.
24    The required amount of employer contributions shall be used
25for the purpose of providing the disability benefits of the
26Fund to the employee. Prior to the beginning of each plan year

 

 

09700SB0512ham001- 133 -LRB097 06621 AMC 56256 a

1under the self-managed plan, the Board of Trustees shall
2determine, as a percentage of salary, the amount of employer
3contributions to be allocated during that plan year for
4providing disability benefits for employees in the
5self-managed plan.
6    The employer shall make contributions to the Fund of the
7employer contributions required for employees who participate
8in the self-managed plan under this Section. The amount
9required shall be certified by the Board and paid by the
10employer in accordance with this Article. The Fund shall not be
11obligated to remit the required employer contributions to any
12person or entity until it has received the required employer
13contributions from the employer.
14    (g) Vesting; withdrawal; return to service. An employee in
15the self-managed plan becomes vested in the employer
16contributions credited to his or her account in the
17self-managed plan on the earliest to occur of the following:
18(1) completion of 5 years of creditable service; (2) the death
19of the employee while in active service, if the employee has
20completed at least 1 1/2 years of service; or (3) the
21employee's election to retire and apply the reciprocal
22provisions of Article 20 of this Code.
23    (h) Benefit amounts. If an employee who is vested in
24employer contributions terminates employment, the employee
25shall be entitled to a benefit which is based on the account
26values attributable to employer and employee contributions and

 

 

09700SB0512ham001- 134 -LRB097 06621 AMC 56256 a

1any investment return thereon.
2    If an employee who is not vested in employer contributions
3terminates employment, the employee shall be entitled to a
4benefit based solely on the account values attributable to the
5employee's contributions and any investment return thereon,
6and the employer contributions and any investment return
7thereon shall be forfeited. Any employer contributions which
8are forfeited shall become part of the trust.
 
9    (40 ILCS 5/12-128.3 new)
10    Sec. 12-128.3. Employer contributions to the self-managed
11plan. Beginning in fiscal year 2013, for members electing
12benefits under paragraph (3) of subsection (a) of Section
1312-128.1, an employer contribution shall be made each fiscal
14year in an amount equal to (i) 6% of total pension payroll for
15the respective employee group and (ii) an amount determined by
16the Fund to be sufficient to fund the disability plan provided
17in this Article.
 
18    (40 ILCS 5/12-149)   (from Ch. 108 1/2, par. 12-149)
19    Sec. 12-149. Financing. The board of park commissioners of
20any such park district shall annually levy a tax (in addition
21to the taxes now authorized by law) upon all taxable property
22embraced in the district, at the rate which, when added to the
23employee contributions under this Article and applied to the
24fund created hereunder, shall be sufficient to provide for the

 

 

09700SB0512ham001- 135 -LRB097 06621 AMC 56256 a

1purposes of this Article in accordance with the provisions
2thereof. Such tax shall be levied and collected with and in
3like manner as the general taxes of such district, and shall
4not in any event be included within any limitations of rate for
5general park purposes as now or hereafter provided by law, but
6shall be excluded therefrom and be in addition thereto. The
7amount of such annual tax to and including the year 1977 shall
8not exceed .0275% of the value, as equalized or assessed by the
9Department of Revenue, of all taxable property embraced within
10the park district, provided that for the year 1978, and for
11each year thereafter, the amount of such annual tax shall be at
12a rate on the dollar of assessed valuation of all taxable
13property that will produce, when extended, for the year 1978
14the following sum: 0.825 times the amount of employee
15contributions during the fiscal year 1976; for the year 1979,
160.85 times the amount of employee contributions during the
17fiscal year 1977; for the year 1980, 0.90 times the amount of
18employee contributions during the fiscal year 1978; for the
19year 1981, 0.95 times the amount of employee contributions
20during the fiscal year 1979; for the year 1982, 1.00 times the
21amount of employee contributions during the fiscal year 1980;
22for the year 1983, 1.05 times the amount of contributions made
23on behalf of employees during the fiscal year 1981; and for the
24years year 1984 through 2012 and each year thereafter, an
25amount equal to 1.10 times the employee contributions during
26the fiscal year 2-years prior to the year for which the

 

 

09700SB0512ham001- 136 -LRB097 06621 AMC 56256 a

1applicable tax is levied. Beginning in 2012 and in each fiscal
2year thereafter, the amount levied shall be equal to the amount
3levied in 2010. As used in this Section, the term "employee
4contributions" means contributions by employees for retirement
5annuity, spouse's annuity, automatic increase in retirement
6annuity, and death benefit.
7    In respect to park district employees, other than
8policemen, who are transferred to the employment of a city by
9virtue of the "Exchange of Functions Act of 1957", the
10corporate authorities of the city shall annually levy a tax
11upon all taxable property embraced in the city, as equalized or
12assessed by the Department of Revenue, at such rate per cent of
13the value of such property as shall be sufficient, when added
14to the amounts deducted from the salary or wages of such
15employees, to provide the benefits to which such employees,
16their dependents and beneficiaries are entitled under the
17provisions of this Article. The park district shall not levy a
18tax hereunder in respect to such employees. The tax levied by
19the city under authority of this Article shall be in addition
20to and exclusive of all other taxes authorized by law to be
21levied by the city for corporate, annuity fund or other
22purposes.
23    All moneys accruing from the levy and collection of taxes,
24pursuant to this section, shall be remitted to the board by the
25employers as soon as they are received. Where a city has levied
26a tax pursuant to this Section in respect to park district

 

 

09700SB0512ham001- 137 -LRB097 06621 AMC 56256 a

1employees transferred to the employment of a city, the
2treasurer of such city or other authorized officer shall remit
3the moneys accruing from the levy and collection of such tax as
4soon as they are received. Such remittances shall be made upon
5a pro rata share basis, whereby each employer shall pay to the
6board such employer's proportionate percentage of each payment
7of taxes received by it, according to the ratio which its tax
8levy for this fund bears to the total tax levy of such
9employer.
10    Should any board of park commissioners included under the
11provisions of this Article be without authority to levy the tax
12provided in this Section the corporation authorities (meaning
13the supervisor, clerk and assessor) of the town or towns for
14which such board shall be the board of park commissioners shall
15levy such tax.
16    Employer contributions to the Fund may be reduced by
17$5,000,000 for calendar years 2004 and 2005.
18(Source: P.A. 93-654, eff. 1-16-04.)
 
19    (40 ILCS 5/12-150)  (from Ch. 108 1/2, par. 12-150)
20    Sec. 12-150. Contributions by employees for service
21annuity.
22    (a) From each payment of salary to a present employee
23beginning August 4, 1961, and prior to September 1, 1971, there
24shall be deducted as contributions for service annuity 6% of
25such payment. Beginning September 1, 1971, the deduction shall

 

 

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1be 6 1/2% of salary. These contributions shall continue until
2the amounts thus deducted will provide an accumulation, at
3regular interest, at least equal to the amount that would be
4provided on such date from employee contributions, assuming
5regular interest to such date, if such employee had been
6contributing in accordance with the provisions of "The 1919
7Act" and this Article from the beginning of his service and the
8salary of the employee during his prior service was the same as
9it was on July 1, 1919, or on July 1, 1937 in the case of an
10employee of the board.
11    (b) From each payment of salary to a future entrant
12beginning August 4, 1961, and prior to September 1, 1971, there
13shall be deducted as contributions for service annuity 6% of
14such payment. Beginning September 1, 1971, the deduction shall
15be 6 1/2% of salary. Beginning January 1, 1990, the deduction
16shall be 7% of salary.
17    (c) For service rendered prior to August 4, 1961, the rates
18of contribution by employees for service annuity shall be as
19follows: July 1, 1919 to July 20, 1947, inclusive, 4% of
20salary; July 21, 1947 to August 3, 1961, inclusive, 5% of
21salary.
22    For the period from July 1, 1919, to August 4, 1961 such
23deductions for a present employee shall continue until such
24date as the amounts deducted will provide an accumulation at
25least equal to that which would be provided on such date,
26assuming regular interest to such date, from deductions from

 

 

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1salary of such employee if such employee had been under the
2provisions of "The 1919 Act" and this Article from the
3beginning of his service and the salary of such employee during
4his period of prior service was the same as it was on July 1,
51919 or on July 1, 1937 in the case of an employee of the board.
6    (d) Any employee shall have the option to contribute for
7service annuity an amount, together with regular interest,
8equal to the difference between the amount he had accumulated
9in the fund on June 30, 1947, from contributions at the rate of
104% of salary, together with regular interest, and the amount he
11would have accumulated, together with regular interest, if he
12had made contributions at the rate of 5% of salary. All such
13contributions shall be subject to salary limitations and other
14conditions in effect prior to July 1, 1947. Upon making such
15contribution the employer of such employee shall contribute in
16the ratio of 2 to 1 with such employee.
17    (e) Notwithstanding any other provision of this Article,
18effective January 1, 2013, all employees shall be required to
19make the following contributions:
20        (1) Employees who elect the traditional benefit
21    package under paragraph (1) of subsection (a) of Section
22    12-128.1 of this Code shall contribute:
23            (A) In fiscal year 2013, fiscal year 2014, and
24        fiscal year 2015, an amount equal to 12.75% of salary.
25            (B) In fiscal year 2016 and in each fiscal year
26        thereafter, a percentage of salary equal to the

 

 

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1        actuarially determined normal cost of the traditional
2        benefit package, minus an amount equal to 6% of total
3        pensionable salary. The Fund shall certify the
4        actuarially determined normal cost of the traditional
5        benefit package and the amount of required participant
6        contributions by July 1, 2015 and every 3 years
7        thereafter.
8        (2) Employees who elect the reformed benefit package
9    under paragraph (2) of subsection (a) of Section 12-128.1
10    of this Code shall contribute:
11            (A) In fiscal year 2013, fiscal year 2014, and
12        fiscal year 2015, an amount equal to 7% of salary.
13            (B) In fiscal year 2016 and in each fiscal year
14        thereafter, a percentage of salary equal to the
15        actuarially determined normal cost of the traditional
16        benefit package, minus an amount equal to 6% of total
17        pensionable salary. The Fund shall certify the
18        actuarially determined normal cost of the reformed
19        benefit package and the amount of required participant
20        contributions by July 1, 2015 and every 3 years
21        thereafter.
22        (3) Employees who elect the self-managed plan under
23    paragraph (3) of subsection (a) of Section 12-128.1 of this
24    Code shall contribute a minimum of 6% of salary.
25    Participants who elect the self-managed plan provided
26    under Section 12-128.2 of this Code may elect to increase

 

 

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1    their employee contributions in accordance with rules
2    prescribed by the Board.
3    No prior contribution increases or other additional
4contributions specified by this Section shall apply to any
5employee for service on or after January 1, 2013.
6(Source: P.A. 86-272.)
 
7    (40 ILCS 5/12-151.3 new)
8    Sec. 12-151.3. Minimum benefit and allocation provisions.
9Each participant in the System shall receive a minimum benefit
10or allocation determined as follows:
11        (1) If the participant is participating in the
12    traditional benefit package provided under paragraph (1)
13    of subsection (a) of Section 12-128.1 of this Code or the
14    revised defined benefit package provided under paragraph
15    (2) of subsection (a) of Section 12-128.1 of this Code, the
16    participant shall receive a minimum benefit (commencing on
17    his or her Social Security retirement age) that is equal to
18    the annual primary insurance amount the participant would
19    have under Social Security. For the purposes of this item
20    (1), the primary insurance amount a participant would have
21    under Social Security shall be calculated so that the
22    System meets the requirements necessary to be considered a
23    "retirement system" under Section 3121(b)(7)(F) of the
24    Internal Revenue Code and the regulations in effect
25    thereunder.

 

 

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1        (2) If the participant is participating in the
2    self-managed plan provided under Section 12-128.2 of this
3    Code, the member shall receive a minimum allocation equal
4    to 7.5% of the participant's compensation for service
5    during the period. All contributions shall be taken into
6    account for this purpose. For the purposes of this
7    paragraph (2), the minimum allocation shall be calculated
8    so that the System meets the requirements necessary to be
9    considered a "retirement system" under Section
10    3121(b)(7)(F) of the Internal Revenue Code and the
11    regulations in effect thereunder.
 
12    (40 ILCS 5/12-167)  (from Ch. 108 1/2, par. 12-167)
13    Sec. 12-167. To keep records, books and prepare reports.
14    To keep a record of all its proceedings which shall be open
15to inspection by the public; to keep such books and records as
16are necessary for the transaction of its business; and to
17prepare a report, as of the last day June 30 of each fiscal
18year, setting forth the income and disbursements of the fund
19for the year, and the amount of its assets and liabilities at
20the close of the year. Such statement shall include, among
21other things, the following information:
22    (a) the total of the reserves on all annuities being paid
23and to be paid from the fund to employees and widows whose
24annuities are determined but not entered upon, calculating such
25reserves as if the annuities were actually entered upon;

 

 

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1    (b) the total of the liabilities of the employer for prior
2service annuities and widow's prior service annuities,
3including the present values of such annuities that are entered
4upon.
5(Source: Laws 1963, p. 161.)
 
6    (40 ILCS 5/12-168)  (from Ch. 108 1/2, par. 12-168)
7    Sec. 12-168. To have an audit.
8    To have an annual audit of the books, records and reserves
9of the fund as of the last day of each fiscal June 30th, in each
10year, by a certified public accountant. A copy of the report of
11such audit shall be filed with the board of park commissioners,
12and a synopsis thereof shall be prepared for public
13distribution.
14(Source: Laws 1963, p. 161.)
 
15    (40 ILCS 5/12-169)  (from Ch. 108 1/2, par. 12-169)
16    Sec. 12-169. To appoint employees.
17    To appoint such actuarial, legal, medical, clerical and
18other employees as may be necessary in the administration of
19the fund and fix their compensation.
20    One or more actuaries shall be employed with duty to
21determine the amount of money necessary to be provided under
22this Article, and to assist the board in preparing the annual
23statement as of the last day June 30 of each fiscal year, and
24to certify to the correctness thereof.

 

 

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1(Source: Laws 1963, p. 161.)
 
2    (40 ILCS 5/12-183)  (from Ch. 108 1/2, par. 12-183)
3    Sec. 12-183. Annual actuarial valuation.
4    An actuarial valuation shall be made annually of the
5liabilities and reserves for present and prospective annuities
6and benefits, and beginning January 1, 2012 July 1, 1973 a
7general investigation shall be made and shall be completed
8every 5 years thereafter of the operating experience of the
9fund as to mortality, disability, retirement, marital status of
10employees, withdrawal from service without right to annuity,
11investment earnings and other factors of actuarial criteria.
12    Upon the basis of the annual actuarial valuation and
13quinquennial actuarial investigations, the actuary shall
14recommend the tables to be used in the annual valuations and in
15current operations including the prescribed rate of interest,
16and shall advise the board on any matters of actuarial
17character affecting the financial condition of the fund and its
18operations.
19(Source: P.A. 78-266.)
 
20    (40 ILCS 5/12-190.3)  (from Ch. 108 1/2, par. 12-190.3)
21    Sec. 12-190.3. Fraud. Any person who knowingly makes any
22false statement or falsifies or permits to be falsified any
23record of this Fund in any attempt to defraud the Fund is
24guilty of a Class A misdemeanor.

 

 

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1    None of the benefits provided for in this Article shall be
2paid to any person who is convicted of any misdemeanor or
3felony relating to or arising out of or in connection with any
4attempt to defraud the Fund.
5    This Section shall not operate to impair any contract or
6vested right previously acquired under any law or laws
7continued in this Article, nor to preclude the right to a
8refund.
9    No refund paid to any person who is convicted of a felony
10relating to or arising out of or in connection with the
11person's service as an employee shall include employer
12contributions or interest or, in the case of the self-managed
13plan authorized under Section 12-128.2, any employer
14contributions or investment return on employer contributions.
15(Source: P.A. 96-1466, eff. 8-20-10.)
 
16    (40 ILCS 5/12-193.5 new)
17    Sec. 12-193.5. Qualified plan status. No provision of this
18Article shall be interpreted in a way that would cause the Fund
19to cease to be a qualified plan under Section 401(a) of the
20Internal Revenue Code.
 
21    (40 ILCS 5/14-108.2d new)
22    Sec. 14-108.2d. Benefit accruals on and after July 1, 2012.
23    (a) Except for members covered under paragraphs (1) and (2)
24of subsection (b) of Section 14-110 and noncovered employees

 

 

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1who are subject to paragraph (2) of subsection (a) of Section
214-110, each member under this Article, other than a person who
3first becomes an employee and a member on or after January 1,
42011, shall elect which retirement program he or she wishes to
5participate in with respect to all periods of membership
6service occurring on and after July 1, 2012. The retirement
7program election made by the member must be made no later than
8July 1, 2012 in accordance with rules prescribed by the Board.
9The member shall elect one of the following retirement
10programs:
11        (1) the traditional benefit package provided by the
12    System prior to Public Act 96-889;
13        (2) the revised defined benefit package provided by the
14    System to new employees under Public Act 96-889 and Public
15    Act 96-1490; or
16        (3) the self-managed plan provided by the System under
17    Section 14-108.2e.
18    (b) A person who first becomes a member of the System on or
19after January 1, 2011 shall elect which retirement program he
20or she wishes to participate in with respect to all periods of
21membership service occurring on and after July 1, 2012. The
22member shall elect one of the retirement programs provided in
23paragraph (2) or (3) of subsection (a) of this Section. The
24member must make that election (i) by June 30, 2012 or within 6
25months after the member's first day of covered employment,
26whichever is later, and (ii) if applicable, every 3 years

 

 

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1thereafter.
2    (c) The member election authorized by this Section is an
3irrevocable election, except that any individual making an
4election for the retirement program described under paragraph
5(1) or (2) of subsection (a) shall make an election for a
6period of 3 years and shall make subsequent elections every 3
7years during a 6-month period prescribed by the System. The
8election shall be made in the manner prescribed by the System.
9Any member who fails to make the initial election shall, by
10default, participate in the benefit program provided under
11paragraph (2) of subsection (a) of this Section.
12    (d) Participants who have already made an election pursuant
13to subsection (a) or (b) shall be given the opportunity to make
14a new election as follows:
15        (1) each participant in the traditional defined
16    benefit package provided under paragraph (1) of subsection
17    (a) of this Section shall have the opportunity to elect to
18    terminate participation in the traditional defined benefit
19    package and to elect to have retirement benefits for future
20    service provided under either the revised defined benefit
21    package provided under paragraph (2) of subsection (a) of
22    this Section or the self-managed plan provided under
23    paragraph (3) of subsection (a) of this Section;
24        (2) each participant in the revised defined benefit
25    package provided under paragraph (2) of subsection (a) of
26    this Section shall have the opportunity to elect to

 

 

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1    terminate participation in the revised defined benefit
2    package and to elect to have retirement benefits for future
3    service provided under the self-managed plan provided
4    under paragraph (3) of subsection (a) of this Section; and
5        (3) the elections permitted under paragraphs (1) and
6    (2) must be made during a 6-month period in the manner
7    prescribed by the system.
8    (e) If a member with an accrued benefit under the
9traditional benefit package provided by the System prior to
10Public Act 96-889 elects the revised defined benefit package
11provided under paragraph (2) of subsection (a) of this Section,
12the member's total accrued benefit for purposes of determining
13an annuity shall be the sum of (i) the member's benefit
14accruals before July 1, 2012, based on the member's pay and
15service through June 30, 2012 and frozen with respect to pay
16after that date and (ii) the member's benefit accruals based on
17pay and service on or after July 1, 2012, as modified by the
18rules provided in Public Act 96-889. All rights and features
19provided under the traditional benefit package will be
20preserved with respect to benefits earned under such package
21with respect to service completed prior to the election to
22participate in the revised benefit package. Furthermore, the
23member shall be entitled to the benefit of the survivor's
24annuity provided under Public Act 96-889 and Public Act
2596-1490. All service completed under the System shall count for
26purposes of determining retirement eligibility and vesting

 

 

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1under both the traditional benefit package and the revised
2benefit package, provided that the vesting requirements of the
3traditional benefit package shall continue to govern vesting
4for members in the revised benefit package.
5    (f) If a member with an accrued benefit under the
6traditional benefit package or revised defined benefit package
7elects the self-managed plan provided under paragraph (3) of
8subsection (a) of this Section, the member's total accrued
9benefit for purposes of determining an annuity shall be the
10member's benefit accruals before July 1, 2012, based on the
11member's pay and service through June 30, 2012 and frozen with
12respect to pay after that date. However, the member shall also
13have an accrued self-managed plan benefit as specified in
14subsection (g) of Section 14-108.2e, for periods of covered
15employment on or after July 1, 2012. All rights and features
16provided under the traditional benefit package will be
17preserved with respect to benefits earned under such package
18with respect to service completed prior to the election to
19participate in the self-managed plan. All service completed
20under the traditional benefit package and the self-managed plan
21shall count for purposes of determining retirement eligibility
22and vesting under both the traditional benefit package and the
23self-managed plan.
24    (g) An individual who is a member (as that term is defined
25in Section 14-103.06 of this Article) in the System, but is not
26an employee as of January 1, 2012, shall elect, based on the

 

 

09700SB0512ham001- 150 -LRB097 06621 AMC 56256 a

1eligibility criteria specified in this Code, one of the 3
2retirement programs provided under paragraphs (1), (2), or (3)
3of subsection (a) of this Section within 6 months after
4becoming an employee.
 
5    (40 ILCS 5/14-108.2e new)
6    Sec. 14-108.2e. Self-managed plan.
7    (a) The Illinois State Board of Investment created under
8Article 22A of this Code shall establish and administer a
9self-managed plan on behalf of the retirement system
10established under this Article. The plan shall offer
11participating employees the opportunity to accumulate assets
12for retirement through a combination of employee and employer
13contributions that may be invested in mutual funds, collective
14investment funds, or other investment products and may be used
15to purchase annuity contracts that are fixed, variable, or a
16combination thereof. The plan must be qualified under the
17Internal Revenue Code of 1986.
18    (b) The Illinois State Board of Investment shall be the
19plan sponsor for the self-managed plan and shall prepare a plan
20document and prescribe the rules and procedures that are
21necessary or desirable for the administration of the
22self-managed plan.
23    (c) An employee eligible to participate in the self-managed
24plan must make a written election in accordance with the
25provisions of Section 14-108.2d and the procedures established

 

 

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1by the retirement system. Participation in the self-managed
2plan by an electing employee shall begin on the beginning of
3the month following the date the employee's election is filed
4with the retirement system, but in no case prior to July 1,
52012.
6    (d) Employees who are participating in the program must be
7allowed to direct the transfer of their account balances among
8the various investment options offered, subject to applicable
9contractual provisions. The participant shall not be deemed a
10fiduciary by reason of providing investment direction. A person
11who is a fiduciary, including the plan sponsor, shall not be
12liable for any loss resulting from the investment direction of
13the employee and shall not be deemed to have breached any
14fiduciary duty by acting in accordance with that direction. The
15retirement system, the Illinois State Board of Investment, and
16the employer do not guarantee any of the investments in the
17employee's account balances.
18    (e) The self-managed plan shall be funded by contributions
19pursuant to salary reduction agreements for employees
20participating in the self-managed plan and employer
21contributions as provided in Section 14-131.1 of this Code.
22Employees may make additional contributions to the
23self-managed plan in accordance with the procedures prescribed
24by the plan sponsor, to the extent permitted under rules
25prescribed by the plan sponsor. Employee and employer
26contributions shall be paid into the participant's

 

 

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1self-managed plan accounts in a manner to be prescribed by the
2plan sponsor.
3    (f) A participant in the self-managed plan becomes vested
4in the employer contributions credited to his or her accounts
5in the self-managed plan on the earliest to occur of the
6following: (1) completion of 5 years of service with an
7employer covered by Article 14 of this Code or (2) if the
8participant has completed at least 1 1/2 years of service, the
9death of the participating employee while employed by an
10employer covered by Article 14 of this Code.
11    (g) If an employee who is vested in employer contributions
12terminates employment, the employee shall be entitled to a
13benefit that is based on the account values attributable to
14both employer and employee contributions and any investment
15return on those contributions. If an employee who is not vested
16in employer contributions terminates employment, the employee
17shall be entitled to a benefit based solely on the account
18values attributable to the employee's contributions and any
19investment return on those contributions, and the employer
20contributions and any investment return on those contributions
21shall be forfeited. Any employer contributions that are
22forfeited shall be held in escrow by the company investing
23those contributions and shall be used as directed by the System
24for future allocations of employer contributions.
25    This required contribution shall be made as an "employer
26pick up" under Section 414(h) of the Internal Revenue Code of

 

 

09700SB0512ham001- 153 -LRB097 06621 AMC 56256 a

11986 or any successor Section thereof. In no event shall a
2member have an option of receiving these amounts in cash. The
3program shall provide for employer contributions to be credited
4to each self-managed plan participant at a rate of 6% of the
5participating member's salary. The amounts so credited shall be
6paid into the member's self-managed plan account in a manner to
7be prescribed by the System. The program shall also provide for
8employer contributions to be used by the System to provide
9disability benefits for the participant. Prior to the beginning
10of each plan year under the self-managed plan, the Board of
11Trustees shall determine, as a percentage of salary, the amount
12of employer contributions to be allocated during that plan year
13for providing disability benefits for members in the
14self-managed plan.
15    The State of Illinois shall make contributions by
16appropriations to the System of the employer contributions
17required for employees who participate in the self-managed plan
18under this Section. The amount required shall be certified by
19the Board of Trustees of the System and paid by the State in
20accordance with Section 14-131. The System shall not be
21obligated to remit the required employer contributions to any
22person or entity until it has received the required employer
23contributions from the State.
24    A member under this Section shall be entitled to the
25benefits of Article 20 of this Code.
 

 

 

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1    (40 ILCS 5/14-109.1 new)
2    Sec. 14-109.1. Minimum benefit and allocation provisions.
3Each noncovered member participating in the System shall
4receive a minimum benefit or allocation determined as follows:
5        (1) If the noncovered member is participating in the
6    traditional benefit package provided under paragraph (1)
7    of subsection (a) of Section 14-108.2d of this Code or the
8    revised defined benefit package provided under paragraph
9    (2) of subsection (a) of Section 14-108.2d of this Code,
10    the employee shall receive a minimum benefit (commencing on
11    his or her Social Security retirement age) for the
12    employee's period of service covered by each such defined
13    benefit package that is equal to the annual primary
14    insurance amount the employee would have under Social
15    Security for such period of service. For the purposes of
16    this item (1), the primary insurance amount an individual
17    would have under Social Security shall be calculated so
18    that the System meets the requirements necessary to be
19    considered a "retirement system" under Section
20    3121(b)(7)(F) of the Internal Revenue Code and the
21    regulations in effect thereunder.
22        (2) If the noncovered member is participating in the
23    self-managed plan provided under Section 14-108.2e of this
24    Code, the member shall receive a minimum allocation equal
25    to 7.5% of the member's compensation for service during the
26    period. All contributions shall be taken into account for

 

 

09700SB0512ham001- 155 -LRB097 06621 AMC 56256 a

1    this purpose. For the purposes of this paragraph (2), the
2    minimum allocation shall be calculated so that the System
3    meets the requirements necessary to be considered a
4    "retirement system" under Section 3121(b)(7)(F) of the
5    Internal Revenue Code and the regulations in effect
6    thereunder.
 
7    (40 ILCS 5/14-131)
8    Sec. 14-131. Contributions by State.
9    (a) The State shall make contributions to the System by
10appropriations of amounts which, together with other employer
11contributions from trust, federal, and other funds, employee
12contributions, investment income, and other income, will be
13sufficient to meet the cost of maintaining and administering
14the System on a 90% funded basis in accordance with actuarial
15recommendations.
16    For the purposes of this Section and Section 14-135.08,
17references to State contributions refer only to employer
18contributions and do not include employee contributions that
19are picked up or otherwise paid by the State or a department on
20behalf of the employee.
21    (b) The Board shall determine the total amount of State
22contributions required for each fiscal year on the basis of the
23actuarial tables and other assumptions adopted by the Board,
24using the formula in subsection (e).
25    The Board shall also determine a State contribution rate

 

 

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1for each fiscal year, expressed as a percentage of payroll,
2based on the total required State contribution for that fiscal
3year (less the amount received by the System from
4appropriations under Section 8.12 of the State Finance Act and
5Section 1 of the State Pension Funds Continuing Appropriation
6Act, if any, for the fiscal year ending on the June 30
7immediately preceding the applicable November 15 certification
8deadline), the estimated payroll (including all forms of
9compensation) for personal services rendered by eligible
10employees, and the recommendations of the actuary.
11    For the purposes of this Section and Section 14.1 of the
12State Finance Act, the term "eligible employees" includes
13employees who participate in the System, persons who may elect
14to participate in the System but have not so elected, persons
15who are serving a qualifying period that is required for
16participation, and annuitants employed by a department as
17described in subdivision (a)(1) or (a)(2) of Section 14-111.
18    (c) Contributions shall be made by the several departments
19for each pay period by warrants drawn by the State Comptroller
20against their respective funds or appropriations based upon
21vouchers stating the amount to be so contributed. These amounts
22shall be based on the full rate certified by the Board under
23Section 14-135.08 for that fiscal year. From the effective date
24of this amendatory Act of the 93rd General Assembly through the
25payment of the final payroll from fiscal year 2004
26appropriations, the several departments shall not make

 

 

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1contributions for the remainder of fiscal year 2004 but shall
2instead make payments as required under subsection (a-1) of
3Section 14.1 of the State Finance Act. The several departments
4shall resume those contributions at the commencement of fiscal
5year 2005.
6    (c-1) Notwithstanding subsection (c) of this Section, for
7fiscal year 2010 only, contributions by the several departments
8are not required to be made for General Revenue Funds payrolls
9processed by the Comptroller. Payrolls paid by the several
10departments from all other State funds must continue to be
11processed pursuant to subsection (c) of this Section.
12    (c-2) For State fiscal year 2010 only, on or as soon as
13possible after the 15th day of each month the Board shall
14submit vouchers for payment of State contributions to the
15System, in a total monthly amount of one-twelfth of the fiscal
16year 2010 General Revenue Fund appropriation to the System.
17    (d) If an employee is paid from trust funds or federal
18funds, the department or other employer shall pay employer
19contributions from those funds to the System at the certified
20rate, unless the terms of the trust or the federal-State
21agreement preclude the use of the funds for that purpose, in
22which case the required employer contributions shall be paid by
23the State. From the effective date of this amendatory Act of
24the 93rd General Assembly through the payment of the final
25payroll from fiscal year 2004 appropriations, the department or
26other employer shall not pay contributions for the remainder of

 

 

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1fiscal year 2004 but shall instead make payments as required
2under subsection (a-1) of Section 14.1 of the State Finance
3Act. The department or other employer shall resume payment of
4contributions at the commencement of fiscal year 2005.
5    (e) For State fiscal years 2016 2012 through 2045, the
6minimum contribution to the System to be made by the State for
7each fiscal year shall be an amount equal to the sum of (i) the
8minimum employer contribution determined under Section
914-131.1, plus (ii) an amount determined by the System to be
10sufficient to bring the total assets of the System up to 90% of
11the total actuarial liabilities of the System by the end of
12State fiscal year 2045. In making the these determinations
13under item (ii) of this subsection (e), the required State
14contribution shall be calculated each year as a level
15percentage of revenue provided by the individual income tax,
16sales tax, and corporate income tax assuming a 2.3% average
17annual growth rate in these revenues payroll over the years
18remaining to and including fiscal year 2045 and shall be
19determined under the projected unit credit actuarial cost
20method. The contribution required in each fiscal year under
21this subsection (e) must not be less than 100% of the prior
22fiscal year's contribution.
23    For State fiscal years 2013 1996 through 2015 2005, the
24State contribution to the System, as a percentage of State
25revenue from the individual income tax, sales tax, and
26corporate income tax the applicable employee payroll, shall be

 

 

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1increased in equal annual increments so that by State fiscal
2year 2016 2011, the State is contributing at the rate required
3under this Section; except that (i) for State fiscal year 1998,
4for all purposes of this Code and any other law of this State,
5the certified percentage of the applicable employee payroll
6shall be 5.052% for employees earning eligible creditable
7service under Section 14-110 and 6.500% for all other
8employees, notwithstanding any contrary certification made
9under Section 14-135.08 before the effective date of this
10amendatory Act of 1997, and (ii) in the following specified
11State fiscal years, the State contribution to the System shall
12not be less than the following indicated percentages of the
13applicable employee payroll, even if the indicated percentage
14will produce a State contribution in excess of the amount
15otherwise required under this subsection and subsection (a):
169.8% in FY 1999; 10.0% in FY 2000; 10.2% in FY 2001; 10.4% in FY
172002; 10.6% in FY 2003; and 10.8% in FY 2004.
18    Notwithstanding any other provision of this Article, the
19total required State contribution to the System for State
20fiscal year 2006 is $203,783,900.
21    Notwithstanding any other provision of this Article, the
22total required State contribution to the System for State
23fiscal year 2007 is $344,164,400.
24    For each of State fiscal years 2008 through 2009, the State
25contribution to the System, as a percentage of the applicable
26employee payroll, shall be increased in equal annual increments

 

 

09700SB0512ham001- 160 -LRB097 06621 AMC 56256 a

1from the required State contribution for State fiscal year
22007, so that by State fiscal year 2011, the State is
3contributing at the rate otherwise required under this Section.
4    Notwithstanding any other provision of this Article, the
5total required State General Revenue Fund contribution for
6State fiscal year 2010 is $723,703,100 and shall be made from
7the proceeds of bonds sold in fiscal year 2010 pursuant to
8Section 7.2 of the General Obligation Bond Act, less (i) the
9pro rata share of bond sale expenses determined by the System's
10share of total bond proceeds, (ii) any amounts received from
11the General Revenue Fund in fiscal year 2010, and (iii) any
12reduction in bond proceeds due to the issuance of discounted
13bonds, if applicable.
14    Notwithstanding any other provision of this Article, the
15total required State General Revenue Fund contribution for
16State fiscal year 2011 is the amount recertified by the System
17on or before April 1, 2011 pursuant to Section 14-135.08 and
18shall be made from the proceeds of bonds sold in fiscal year
192011 pursuant to Section 7.2 of the General Obligation Bond
20Act, less (i) the pro rata share of bond sale expenses
21determined by the System's share of total bond proceeds, (ii)
22any amounts received from the General Revenue Fund in fiscal
23year 2011, and (iii) any reduction in bond proceeds due to the
24issuance of discounted bonds, if applicable.
25    Beginning in State fiscal year 2046, the minimum State
26contribution shall be an amount equal to the minimum employer

 

 

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1contribution determined under Section 14-131.1, plus an amount
2sufficient for each fiscal year shall be the amount needed to
3maintain the total assets of the System at 90% of the total
4actuarial liabilities of the System.
5    Amounts received by the System pursuant to Section 25 of
6the Budget Stabilization Act or Section 8.12 of the State
7Finance Act in any fiscal year do not reduce and do not
8constitute payment of any portion of the minimum State
9contribution required under this Article in that fiscal year.
10Such amounts shall not reduce, and shall not be included in the
11calculation of, the required State contributions under this
12Article in any future year until the System has reached a
13funding ratio of at least 90%. A reference in this Article to
14the "required State contribution" or any substantially similar
15term does not include or apply to any amounts payable to the
16System under Section 25 of the Budget Stabilization Act.
17    Notwithstanding any other provision of this Section, the
18required State contribution for State fiscal year 2005 and for
19fiscal year 2008 and each fiscal year thereafter until fiscal
20year 2013, as calculated under this Section and certified under
21Section 14-135.08, shall not exceed an amount equal to (i) the
22amount of the required State contribution that would have been
23calculated under this Section for that fiscal year if the
24System had not received any payments under subsection (d) of
25Section 7.2 of the General Obligation Bond Act, minus (ii) the
26portion of the State's total debt service payments for that

 

 

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1fiscal year on the bonds issued in fiscal year 2003 for the
2purposes of that Section 7.2, as determined and certified by
3the Comptroller, that is the same as the System's portion of
4the total moneys distributed under subsection (d) of Section
57.2 of the General Obligation Bond Act. In determining this
6maximum for State fiscal years 2008 through 2010, however, the
7amount referred to in item (i) shall be increased, as a
8percentage of the applicable employee payroll, in equal
9increments calculated from the sum of the required State
10contribution for State fiscal year 2007 plus the applicable
11portion of the State's total debt service payments for fiscal
12year 2007 on the bonds issued in fiscal year 2003 for the
13purposes of Section 7.2 of the General Obligation Bond Act, so
14that, by State fiscal year 2011, the State is contributing at
15the rate otherwise required under this Section.
16    (f) After the submission of all payments for eligible
17employees from personal services line items in fiscal year 2004
18have been made, the Comptroller shall provide to the System a
19certification of the sum of all fiscal year 2004 expenditures
20for personal services that would have been covered by payments
21to the System under this Section if the provisions of this
22amendatory Act of the 93rd General Assembly had not been
23enacted. Upon receipt of the certification, the System shall
24determine the amount due to the System based on the full rate
25certified by the Board under Section 14-135.08 for fiscal year
262004 in order to meet the State's obligation under this

 

 

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1Section. The System shall compare this amount due to the amount
2received by the System in fiscal year 2004 through payments
3under this Section and under Section 6z-61 of the State Finance
4Act. If the amount due is more than the amount received, the
5difference shall be termed the "Fiscal Year 2004 Shortfall" for
6purposes of this Section, and the Fiscal Year 2004 Shortfall
7shall be satisfied under Section 1.2 of the State Pension Funds
8Continuing Appropriation Act. If the amount due is less than
9the amount received, the difference shall be termed the "Fiscal
10Year 2004 Overpayment" for purposes of this Section, and the
11Fiscal Year 2004 Overpayment shall be repaid by the System to
12the Pension Contribution Fund as soon as practicable after the
13certification.
14    (g) For purposes of determining the required State
15contribution to the System, the value of the System's assets
16shall be equal to the actuarial value of the System's assets,
17which shall be calculated as follows:
18    As of June 30, 2008, the actuarial value of the System's
19assets shall be equal to the market value of the assets as of
20that date. In determining the actuarial value of the System's
21assets for fiscal years after June 30, 2008, any actuarial
22gains or losses from investment return incurred in a fiscal
23year shall be recognized in equal annual amounts over the
245-year period following that fiscal year.
25    (h) For purposes of determining the required State
26contribution to the System for a particular year, the actuarial

 

 

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1value of assets shall be assumed to earn a rate of return equal
2to the System's actuarially assumed rate of return.
3    (i) After the submission of all payments for eligible
4employees from personal services line items paid from the
5General Revenue Fund in fiscal year 2010 have been made, the
6Comptroller shall provide to the System a certification of the
7sum of all fiscal year 2010 expenditures for personal services
8that would have been covered by payments to the System under
9this Section if the provisions of this amendatory Act of the
1096th General Assembly had not been enacted. Upon receipt of the
11certification, the System shall determine the amount due to the
12System based on the full rate certified by the Board under
13Section 14-135.08 for fiscal year 2010 in order to meet the
14State's obligation under this Section. The System shall compare
15this amount due to the amount received by the System in fiscal
16year 2010 through payments under this Section. If the amount
17due is more than the amount received, the difference shall be
18termed the "Fiscal Year 2010 Shortfall" for purposes of this
19Section, and the Fiscal Year 2010 Shortfall shall be satisfied
20under Section 1.2 of the State Pension Funds Continuing
21Appropriation Act. If the amount due is less than the amount
22received, the difference shall be termed the "Fiscal Year 2010
23Overpayment" for purposes of this Section, and the Fiscal Year
242010 Overpayment shall be repaid by the System to the General
25Revenue Fund as soon as practicable after the certification.
26    (j) After the submission of all payments for eligible

 

 

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1employees from personal services line items paid from the
2General Revenue Fund in fiscal year 2011 have been made, the
3Comptroller shall provide to the System a certification of the
4sum of all fiscal year 2011 expenditures for personal services
5that would have been covered by payments to the System under
6this Section if the provisions of this amendatory Act of the
796th General Assembly had not been enacted. Upon receipt of the
8certification, the System shall determine the amount due to the
9System based on the full rate certified by the Board under
10Section 14-135.08 for fiscal year 2011 in order to meet the
11State's obligation under this Section. The System shall compare
12this amount due to the amount received by the System in fiscal
13year 2011 through payments under this Section. If the amount
14due is more than the amount received, the difference shall be
15termed the "Fiscal Year 2011 Shortfall" for purposes of this
16Section, and the Fiscal Year 2011 Shortfall shall be satisfied
17under Section 1.2 of the State Pension Funds Continuing
18Appropriation Act. If the amount due is less than the amount
19received, the difference shall be termed the "Fiscal Year 2011
20Overpayment" for purposes of this Section, and the Fiscal Year
212011 Overpayment shall be repaid by the System to the General
22Revenue Fund as soon as practicable after the certification.
23(Source: P.A. 95-950, eff. 8-29-08; 96-43, eff. 7-15-09; 96-45,
24eff. 7-15-09; 96-1000, eff. 7-2-10; 96-1497, eff. 1-14-11;
2596-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; revised 4-6-11.)
 

 

 

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1    (40 ILCS 5/14-131.1 new)
2    Sec. 14-131.1. Minimum employer contribution.
3    (a) In fiscal year 2013, fiscal year 2014, and fiscal year
42015, the following rules apply in determining the minimum
5employer contributions:
6        (1) With respect to employees who (i) participate in
7    the traditional or revised benefit package or the
8    self-managed plan and (ii) are subject to subdivision
9    (a)(1) of Section 14-133, 4.04% of pensionable payroll.
10        (2) With respect to employees who (i) participate in
11    the traditional or revised benefit package or the
12    self-managed plan and (ii) are subject to either paragraph
13    (3) or (6) of subsection (a) of Section 14-133, 6.00% of
14    pensionable payroll.
15        (3) With respect to employees who (i) participate in
16    the traditional or revised benefit package or the
17    self-managed plan and (ii) are subject to paragraph (4) or
18    (5) of subsection (a) of Section 14-133, 4.46% of
19    pensionable payroll.
20    (b) In fiscal year 2016 and each year thereafter, the
21following rules apply in determining the minimum employer
22contributions:
23        (1) With respect to employees who elect the revised
24    defined benefit package provided under paragraph (2) of
25    subsection (a) of Section 14-108.2d of this Code and who
26    are covered employees, an amount equal to one-half of the

 

 

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1    actuarially determined normal cost of such revised defined
2    benefit package.
3        (2) With respect to employees who elect the revised
4    defined benefit package provided under paragraph (2) of
5    subsection (a) of Section 14-108.2d of this Code and who
6    are noncovered employees, an amount equal to 6% of the
7    pensionable payroll of the employee group.
8        (3) With respect to employees who elect the traditional
9    defined benefit package provided under paragraph (1) of
10    subsection (a) of Section 14-108.2d of this Code and who
11    are covered employees, an amount equal to one-half of the
12    actuarially determined normal cost of the revised defined
13    benefit package provided under paragraph (2) of subsection
14    (a) of Section 14-108.2d of this Code.
15        (4) With respect to employees who elect the traditional
16    defined benefit package provided under paragraph (1) of
17    subsection (a) of Section 14-108.2d of this Code and who
18    are noncovered employees, an amount equal to 6% of the
19    pensionable payroll of the employee group.
20        (5) With respect to employees who elect the
21    self-managed plan provided under paragraph (3) of
22    subsection (a) of Section 14-108.2d of this Code, the State
23    shall contribute the following amounts into the
24    self-managed plan:
25            (A) With respect to employees who are covered
26        employees, an amount equal to one-half of the

 

 

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1        actuarially determined normal cost of the revised
2        defined benefit package provided under paragraph (2)
3        of subsection (a) of Section 14-108.2d of this Code.
4            (B) With respect to employees who are noncovered
5        employees, an amount equal to 6% of the payroll of the
6        employee group.
7    (c) For all employees covered under the self-managed plan,
8the employer shall contribute an amount determined by the
9System to be sufficient to fund the disability benefits
10provided under this Article.
 
11    (40 ILCS 5/14-133)  (from Ch. 108 1/2, par. 14-133)
12    Sec. 14-133. Contributions on behalf of members.
13    (a) Each participating employee shall make contributions
14to the System, based on the employee's compensation, as
15follows:
16        (1) Covered employees, except as indicated below, 3.5%
17    for retirement annuity, and 0.5% for a widow or survivors
18    annuity;
19        (2) Noncovered employees, except as indicated below,
20    7% for retirement annuity and 1% for a widow or survivors
21    annuity;
22        (3) Noncovered employees serving in a position in which
23    "eligible creditable service" as defined in Section 14-110
24    may be earned, 1% for a widow or survivors annuity plus the
25    following amount for retirement annuity: 8.5% through

 

 

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1    December 31, 2001; 9.5% in 2002; 10.5% in 2003; and 11.5%
2    in 2004 and thereafter;
3        (4) Covered employees serving in a position in which
4    "eligible creditable service" as defined in Section 14-110
5    may be earned, 0.5% for a widow or survivors annuity plus
6    the following amount for retirement annuity: 5% through
7    December 31, 2001; 6% in 2002; 7% in 2003; and 8% in 2004
8    and thereafter;
9        (5) Each security employee of the Department of
10    Corrections or of the Department of Human Services who is a
11    covered employee, 0.5% for a widow or survivors annuity
12    plus the following amount for retirement annuity: 5%
13    through December 31, 2001; 6% in 2002; 7% in 2003; and 8%
14    in 2004 and thereafter;
15        (6) Each security employee of the Department of
16    Corrections or of the Department of Human Services who is
17    not a covered employee, 1% for a widow or survivors annuity
18    plus the following amount for retirement annuity: 8.5%
19    through December 31, 2001; 9.5% in 2002; 10.5% in 2003; and
20    11.5% in 2004 and thereafter.
21        (7) Notwithstanding anything in this Section to the
22    contrary, effective July 1, 2012, all participating
23    employees shall be required to make the following
24    contributions:
25            (A) Participants who elect the traditional defined
26        benefit package provided under paragraph (1) of

 

 

09700SB0512ham001- 170 -LRB097 06621 AMC 56256 a

1        subsection (a) of Section 14-108.2d of this Code and
2        who are subject to paragraph (1) of subsection (a) of
3        Section 14-133 shall contribute:
4                (I) In fiscal year 2013, fiscal year 2014, and
5            fiscal year 2015, an amount equal to 9.29% of
6            compensation.
7                (II) In fiscal year 2016 and in each fiscal
8            year thereafter, a percentage of compensation
9            equal to the actuarially determined normal cost of
10            the traditional defined benefit package, minus
11            employer contributions under Section 14-131.1,
12            provided that no participant's contribution shall
13            be less than 6% of pensionable payroll. The System
14            shall certify the actuarially determined normal
15            cost of such traditional defined benefit package
16            and the amount of the required employee
17            contributions by January 1, 2015 and every 3 years
18            thereafter.
19            (B) Participants who elect the traditional defined
20        benefit package provided under paragraph (1) of
21        subsection (a) of Section 14-108.2d of this Code and
22        who are subject to either paragraph (3) or (6) of
23        subsection (a) of Section 14-133 shall contribute:
24                (I) In fiscal year 2013, fiscal year 2014, and
25            fiscal year 2015, an amount equal to 18.91% of
26            compensation.

 

 

09700SB0512ham001- 171 -LRB097 06621 AMC 56256 a

1                (II) In fiscal year 2016 and in each fiscal
2            year thereafter, a percentage of compensation
3            equal to the actuarially determined normal cost of
4            the traditional defined benefit package, minus
5            employer contributions under Section 14-131.1,
6            provided that no participant's contribution shall
7            be less than 6% of pensionable payroll. The System
8            shall certify the actuarially determined normal
9            cost of such traditional defined benefit package
10            and the amount of the required employee
11            contributions by January 1, 2015 and every 3 years
12            thereafter.
13            (C) Participants who elect the traditional defined
14        benefit package provided under paragraph (1) of
15        subsection (a) of Section 14-108.2d of this Code and
16        who are subject to either paragraph (4) or (5) of
17        subsection (a) of Section 14-133 shall contribute:
18                (I) In fiscal year 2013, fiscal year 2014, and
19            fiscal year 2015, an amount equal to 16.65% of
20            compensation.
21                (II) In fiscal year 2016 and in each fiscal
22            year thereafter, a percentage of compensation
23            equal to the actuarially determined normal cost of
24            the traditional defined benefit package, minus
25            employer contributions under Section 14-131.1,
26            provided that no participant's contribution shall

 

 

09700SB0512ham001- 172 -LRB097 06621 AMC 56256 a

1            be less than 6% of pensionable payroll. The System
2            shall certify the actuarially determined normal
3            cost of such traditional defined benefit package
4            and the amount of the required employee
5            contributions by January 1, 2015 and every 3 years
6            thereafter.
7            (D) Participants who elect the revised defined
8        benefit package provided under paragraph (2) of
9        subsection (a) of Section 14-108.2d of this Code shall
10        contribute a percentage of compensation determined as
11        follows:
12                (I) In fiscal year 2013, fiscal year 2014, and
13            fiscal year 2015:
14                    (a) Employees who are subject to paragraph
15                (1) of subsection (a) of Section 14-133 shall
16                contribute 4.04% of compensation.
17                    (b) Employees who are subject to either
18                paragraph (4) or (5) of subsection (a) of
19                Section 14-133 shall contribute 4.46% of
20                compensation.
21                    (c) Employees who are noncovered employees
22                shall contribute an amount equal to the greater
23                of (i) 6% of compensation or (ii) one-half of
24                the actuarially determined normal cost of the
25                revised defined benefit package. The System
26                shall certify the actuarially determined

 

 

09700SB0512ham001- 173 -LRB097 06621 AMC 56256 a

1                normal cost of the revised defined benefit
2                package and the amount of the required employee
3                contributions by January 1, 2015.
4                (II) In fiscal year 2016 and each fiscal year
5            thereafter:
6                    (a) Employees who are noncovered
7                employees, an amount equal to the greater of
8                (i) 6% of compensation or (ii) one-half of the
9                actuarially determined normal cost of the
10                revised defined benefit package. The System
11                shall certify the actuarially determined
12                normal cost of the revised defined benefit
13                package and the amount of the required employee
14                contributions by January 1, 2015 and every 3
15                years thereafter.
16                    (b) Employees who are covered employees,
17                an amount equal to one-half of the actuarially
18                determined normal cost of the revised defined
19                benefit package. The System shall certify the
20                actuarially determined normal cost of the
21                revised defined benefit package and the amount
22                of the required employee contributions by
23                January 1, 2015 and every 3 years thereafter.
24            (E) Participants who elect the self-managed plan
25        provided under paragraph (3) of subsection (a) of
26        Section 14-108.2d of this Code shall contribute a

 

 

09700SB0512ham001- 174 -LRB097 06621 AMC 56256 a

1        minimum percentage of compensation determined as
2        follows:
3                (I) In fiscal year 2013, fiscal year 2014, and
4            fiscal year 2015:
5                    (a) Employees who are subject to paragraph
6                (1) of subsection (a) of Section 14-133 shall
7                contribute 4.04% of compensation.
8                    (b) Employees who are subject to either
9                paragraph (4) or (5) of subsection (a) of
10                Section 14-133 shall contribute 4.46% of
11                compensation.
12                    (c) Employees who are noncovered employees
13                shall contribute a minimum amount equal to 6%
14                of compensation.
15                (II) In fiscal year 2016 and each fiscal year
16            thereafter:
17                (a) Employees who are covered employees shall
18            contribute a minimum amount equal to one-half of
19            the actuarially determined normal cost of the
20            revised defined benefit package provided under
21            paragraph (2) of subsection (a) of Section
22            14-108.2d of this Code.
23                (b) Employees who are noncovered employees
24            shall contribute a minimum amount equal to 6% of
25            compensation.
26            Participants who elect the self-managed plan

 

 

09700SB0512ham001- 175 -LRB097 06621 AMC 56256 a

1        provided under paragraph (2) of subsection (a) of
2        Section 14-108.2d of this Code may elect to increase
3        the employee contribution in accordance with rules
4        prescribed by the Board.
5    (b) Contributions shall be in the form of a deduction from
6compensation and shall be made notwithstanding that the
7compensation paid in cash to the employee shall be reduced
8thereby below the minimum prescribed by law or regulation. Each
9member is deemed to consent and agree to the deductions from
10compensation provided for in this Article, and shall receipt in
11full for salary or compensation.
12(Source: P.A. 92-14, eff. 6-28-01.)
 
13    (40 ILCS 5/14-202 new)
14    Sec. 14-202. Qualified plan status. No provision of this
15Article shall be interpreted in a way that would cause the
16System to cease to be a qualified plan under Section 401(a) of
17the Internal Revenue Code.
 
18    (40 ILCS 5/15-103.4 new)
19    Sec. 15-103.4. Revised defined benefit package. "Revised
20defined benefit package": The defined benefit retirement
21program maintained under the System as provided by Public Act
2296-889 and described in Section 15-134.6.
 
23    (40 ILCS 5/15-113.6)  (from Ch. 108 1/2, par. 15-113.6)

 

 

09700SB0512ham001- 176 -LRB097 06621 AMC 56256 a

1    Sec. 15-113.6. Service for employment in public schools.
2"Service for employment in public schools": Includes those
3periods not exceeding the lesser of 10 years or 2/3 of the
4service granted under other Sections of this Article dealing
5with service credit, during which a person who entered the
6system after September 1, 1974 was employed full time by a
7public common school, public college and public university, or
8by an agency or instrumentality of any of the foregoing, of any
9state, territory, dependency or possession of the United States
10of America, including the Philippine Islands, or a school
11operated by or under the auspices of any agency or department
12of any other state, if the person (1) cannot qualify for a
13retirement pension or other benefit based upon employer
14contributions from another retirement system, exclusive of
15federal social security, based in whole or in part upon this
16employment, and (2) pays the lesser of (A) an amount equal to
178% of his or her annual basic compensation on the date of
18becoming a participating employee subsequent to this service
19multiplied by the number of years of such service, together
20with compound interest from the date participation begins to
21the date payment is received by the board at the rate of 6% per
22annum through August 31, 1982, and at the effective rates after
23that date, and (B) 50% of the actuarial value of the increase
24in the retirement annuity provided by this service, and (3)
25contributes for at least 5 years subsequent to this employment
26to one or more of the following systems: the State Universities

 

 

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1Retirement System, the Teachers' Retirement System of the State
2of Illinois, and the Public School Teachers' Pension and
3Retirement Fund of Chicago.
4    The service granted under this Section shall not be
5considered in determining whether the person has the minimum of
68 years of service required to qualify for a retirement annuity
7at age 55 or the 5 years of service required to qualify for a
8retirement annuity at age 62, as provided in Section 15-135, or
9the 10 years required by subsection (c) of Section 15-134.6
101-160 for a person who first becomes a participant on or after
11January 1, 2011. The maximum allowable service of 10 years for
12this governmental employment shall be reduced by the service
13credit which is validated under paragraph (2) of subsection (b)
14of Section 16-127 and paragraph 1 of Section 17-133.
15(Source: P.A. 95-83, eff. 8-13-07; 96-1490, eff. 1-1-11.)
 
16    (40 ILCS 5/15-116)  (from Ch. 108 1/2, par. 15-116)
17    Sec. 15-116. Accumulated normal contributions.
18"Accumulated normal contributions": The sum of all normal
19contributions credited to an employee's account, together with
20interest thereon at the effective rate for the respective
21years; provided that the normal contributions that are credited
22to the employee's account in any period on or after July 1,
232012 shall not exceed the contributions paid pursuant to
24subsection (a) of Section 15-157.
25(Source: P.A. 83-1440.)
 

 

 

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1    (40 ILCS 5/15-117)  (from Ch. 108 1/2, par. 15-117)
2    Sec. 15-117. Accumulated additional contributions.
3"Accumulated additional contributions": The sum of all
4additional contributions credited to an employee's account,
5together with interest thereon at the effective rate for the
6respective years; provided that the additional contributions
7that are credited to the employee's account in any period on or
8after July 1, 2012 shall not exceed contributions paid pursuant
9to subsection (a) of Section 15-157.
10(Source: P.A. 83-1440.)
 
11    (40 ILCS 5/15-134)  (from Ch. 108 1/2, par. 15-134)
12    Sec. 15-134. Participant.
13    (a) Each person shall, as a condition of employment, become
14a participant and be subject to this Article on the date that
15he or she becomes an employee, makes an election to participate
16in, or otherwise becomes a participant in one of the retirement
17programs offered under this Article, whichever date is later.
18    An employee who becomes a participant shall continue to be
19a participant until he or she becomes an annuitant, dies or
20accepts a refund of contributions. For purposes of subsection
21(f) of Section 15-134.6 1-160, the term "participant" shall
22include a person receiving a retirement annuity.
23    (b) A person employed concurrently by 2 or more employers
24is eligible to participate in the system on compensation

 

 

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1received from all employers.
2(Source: P.A. 96-1490, eff. 1-1-11.)
 
3    (40 ILCS 5/15-134.6 new)
4    Sec. 15-134.6. Provisions applicable to new hires on or
5after January 1, 2011.
6    (a) The provisions of this Section apply to a person who,
7on or after January 1, 2011, first becomes a participant under
8this Article, but do not apply to the self-managed plan
9established under this Article.
10    (b) "Final average salary" means the average monthly (or
11annual) salary obtained by dividing the total salary or
12earnings calculated under this Article applicable to the
13participant during the 96 consecutive months (or 8 consecutive
14years) of service within the last 120 months (or 10 years) of
15service in which the total salary or earnings calculated under
16this Article was the highest by the number of months (or years)
17of service in that period. For the purposes of a person who
18first becomes a participant of this system on or after January
191, 2011, "final average salary" shall be substituted for "final
20rate of earnings".
21    (b-5) Beginning on January 1, 2011, for all purposes under
22this Code (including without limitation the calculation of
23benefits and employee contributions), the annual earnings,
24salary, or wages (based on the plan year) of a participant to
25whom this Section applies shall not exceed $106,800; however,

 

 

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1that amount shall annually thereafter be increased by the
2lesser of (i) 3% of that amount, including all previous
3adjustments, or (ii) one half the annual unadjusted percentage
4increase (but not less than zero) in the consumer price index u
5for the 12 months ending with the September preceding each
6November 1, including all previous adjustments.
7    For the purposes of this Section, "consumer price index u"
8means the index published by the Bureau of Labor Statistics of
9the United States Department of Labor that measures the average
10change in prices of goods and services purchased by all urban
11consumers, United States city average, all items, 1982 84 =
12100. The new amount resulting from each annual adjustment shall
13be determined by the Public Pension Division of the Department
14of Insurance and made available to the boards of the retirement
15systems and pension funds by November 1 of each year.
16    (c) A participant is entitled to a retirement annuity upon
17written application if he or she has attained age 67 and has at
18least 10 years of service credit and is otherwise eligible
19under the requirements of this Article. A participant who has
20attained age 62 and has at least 10 years of service credit and
21is otherwise eligible under the requirements of this Article
22may elect to receive the lower retirement annuity provided in
23subsection (d) of this Section.
24    (d) The retirement annuity of a participant who is retiring
25after attaining age 62 with at least 10 years of service credit
26shall be reduced by one half of 1% for each full month that the

 

 

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1member's age is under age 67.
2    (e) Any retirement annuity or supplemental annuity shall be
3subject to annual increases on the January 1 occurring either
4on or after the attainment of age 67 or the first anniversary
5of the annuity start date, whichever is later. Each annual
6increase shall be calculated at 3% or one half the annual
7unadjusted percentage increase (but not less than zero) in the
8consumer price index u for the 12 months ending with the
9September preceding each November 1, whichever is less, of the
10originally granted retirement annuity. If the annual
11unadjusted percentage change in the consumer price index u for
12the 12 months ending with the September preceding each November
131 is zero or there is a decrease, then the annuity shall not be
14increased.
15    (f) The initial survivor's or widow's annuity of an
16otherwise eligible survivor or widow of a retired participant
17who first became a participant on or after January 1, 2011
18shall be in the amount of 66 2/3% of the retired participant's
19retirement annuity at the date of death. In the case of the
20death of a participant who has not retired and who first became
21a participant on or after January 1, 2011, eligibility for a
22survivor's or widow's annuity shall be determined by the
23applicable section of this Article. The initial benefit shall
24be 66 2/3% of the earned annuity without a reduction due to
25age. A child's annuity of an otherwise eligible child shall be
26in the amount prescribed under this Article if applicable. Any

 

 

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1survivor's or widow's annuity shall be increased (1) on each
2January 1 occurring on or after the commencement of the annuity
3if the deceased member died while receiving a retirement
4annuity or (2) in other cases, on each January 1 occurring
5after the first anniversary of the commencement of the annuity.
6Each annual increase shall be calculated at 3% or one half the
7annual unadjusted percentage increase (but not less than zero)
8in the consumer price index-u for the 12 months ending with the
9September preceding each November 1, whichever is less, of the
10originally granted survivor's annuity. If the annual
11unadjusted percentage change in the consumer price index u for
12the 12 months ending with the September preceding each November
131 is zero or there is a decrease, then the annuity shall not be
14increased.
15    (g) If a person who first becomes a participant of this
16system on or after January 1, 2011 is receiving a retirement
17annuity under this system and becomes a member or participant
18under any other system or fund created by this Code and is
19employed on a full-time basis, except for those members or
20participants exempted from the provisions of this Section under
21subsection (a) of this Section, then the person's retirement
22annuity shall be suspended during that employment. Upon
23termination of that employment, the person's retirement
24annuity shall resume and be recalculated if recalculation is
25provided for under this Article.
26    (h) Notwithstanding any other provision of this Section, a

 

 

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1person who first becomes a participant of this system on or
2after January 1, 2011 shall have the option to enroll in the
3self-managed plan created under Section 15-158.2 of this
4Article.
5    (i) In the case of a conflict between the provisions of
6this Section and any other provision of this Code, the
7provisions of this Section shall control.
 
8    (40 ILCS 5/15-134.7 new)
9    Sec. 15-134.7. Benefits accruals on and after July 1, 2012.
10    (a) Each participating employee under this Article, other
11than a person who first becomes an employee and a participant
12on or after January 1, 2011 or a person who becomes an employee
13and a participant before July 1, 2012 and who elects the
14self-managed plan provided under Section 15-158.2, shall elect
15which retirement program he or she wishes to participate in
16with respect to all periods of covered employment occurring on
17and after July 1, 2012. The retirement program election made by
18the participating employee must be made no later than July 1,
192012 in the manner prescribed by the System. The participating
20employee shall elect one of the following retirement programs:
21        (1) the traditional or portable benefit package;
22        (2) the revised defined benefit package; or
23        (3) the self-managed plan provided by the System.
24    (b) A person who first becomes an employee and a
25participant in the System, on or after January 1, 2011, shall

 

 

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1elect which retirement program he or she wishes to participate
2in with respect to all periods of covered employment occurring
3on and after July 1, 2012. The participant shall elect one of
4the retirement programs provided in paragraph (2) or (3) of
5subsection (a) of this Section. The participant must make that
6election (i) by June 30, 2012 or within 6 months after the
7participant's first day of covered employment, whichever is
8later, and (ii) if applicable, ever 3 years thereafter.
9    (c) The participant election authorized by this Section is
10an irrevocable election, except that any individual making an
11election for the benefit described in paragraph (1) or (2) of
12subsection (a) shall make an election for a period of 3 years
13and shall make subsequent elections every 3 years during a
146-month period in the manner prescribed by the System. The
15election shall be made in the manner prescribed by the System.
16Any participant who fails to make the initial election shall,
17by default, participate in the benefit program provided under
18paragraph (2) of subsection (a) of this Section.
19    (d) Participants who have already made an election pursuant
20to subsection (a) or (b) shall be given the opportunity to make
21a new election as follows:
22        (1) each participant in the traditional defined
23    benefit package provided under paragraph (1) of subsection
24    (a) of this Section shall have the opportunity to elect to
25    terminate participation in the traditional defined benefit
26    package and to elect to have retirement benefits for future

 

 

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1    service provided under either the revised defined benefit
2    package provided under paragraph (2) of subsection (a) of
3    this Section or the self-managed plan provided under
4    paragraph (3) of subsection (a) of this Section;
5        (2) each participant in the revised defined benefit
6    package provided under paragraph (2) of subsection (a) of
7    this Section shall have the opportunity to elect to
8    terminate participation in the revised defined benefit
9    package and to elect to have retirement benefits for future
10    service provided under the self-managed plan provided
11    under paragraph (3) of subsection (a) of this Section; and
12        (3) the elections permitted under paragraphs (1) and
13    (2) must be made during a 6-month period in a manner
14    prescribed by the System.
15    (e) If a participant with an accrued benefit under the
16traditional or portable benefit package elects to participate
17under the revised defined benefit package, the participant's
18total accrued benefit for purposes of determining an annuity
19shall be the sum of (i) the participant's benefit accruals
20under the traditional or portable benefit package, based on the
21participant's pay and service under the traditional or portable
22benefit package and frozen with respect to pay for service
23earned subsequent to participation under the traditional or
24portable benefit package and (ii) the participant's benefit
25accruals based on pay and service under the revised defined
26benefit package. All rights and features provided under the

 

 

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1traditional or portable benefit package will be preserved with
2respect to benefits earned under such package with respect to
3service completed prior to participation in the revised defined
4benefit package. Participants who elect to participate under
5the revised defined benefit package shall be entitled to the
6benefit of the survivor's annuity provided under the revised
7defined benefit package based upon all service completed under
8the System. All service completed under the System shall count
9for purposes of determining retirement eligibility and vesting
10under both the traditional or portable defined benefit package
11and the revised defined benefit package, provided that the
12vesting requirements of the traditional or portable benefit
13package shall govern vesting for participants in the revised
14defined benefit package.
15    (f) If a participant with an accrued benefit under the
16traditional, portable, or revised defined benefit package
17elects to participate under the self-managed plan, the
18participant's total accrued benefit for purposes of
19determining an annuity shall be the participant's benefit
20accruals prior to participation in the self-managed plan, based
21on the participant's pay and service, and frozen with respect
22to pay for service earned subsequent to participation in the
23traditional, portable, or revised benefit package. However,
24the participant shall also have an accrued self-managed plan
25benefit as specified in subsection (k) of Section 15-158.2, for
26periods of covered employment on or after participation in the

 

 

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1self-managed plan. All rights and features provided under the
2traditional, portable, or revised benefit package will be
3preserved with respect to benefits earned under such package
4with respect to service completed prior to the election to
5participate in the self-managed plan. All service completed
6under the traditional, portable, or revised benefit package and
7the self-managed plan shall count for purposes of determining
8retirement eligibility and vesting under both the traditional
9or portable benefit package and the self-managed plan.
10    (g) An individual who is a participant (as that term is
11defined in Section 15-108 of this Article) in the System, but
12is not a participating employee as of January 1, 2012, shall,
13based on the eligibility criteria specified in this Code, elect
14one of the 3 retirement programs provided under paragraphs (1),
15(2), or (3) of subsection (a) of this Section within 6 months
16after becoming a participating employee, provided that a
17participant who previously elected the self-managed plan
18provided under Section 15-158.2 may not make a subsequent
19election, as provided in this subsection (g).
 
20    (40 ILCS 5/15-136.3)
21    Sec. 15-136.3. Minimum retirement annuity.
22    (a) Beginning January 1, 1997, any person who is receiving
23a monthly retirement annuity under this Article which, after
24inclusion of (1) all one-time and automatic annual increases to
25which the person is entitled, (2) any supplemental annuity

 

 

09700SB0512ham001- 188 -LRB097 06621 AMC 56256 a

1payable under Section 15-136.1, and (3) any amount deducted
2under Section 15-138 or 15-140 to provide a reversionary
3annuity, is less than the minimum monthly retirement benefit
4amount specified in subsection (b) of this Section, shall be
5entitled to a monthly supplemental payment equal to the
6difference.
7    (b) For purposes of the calculation in subsection (a), the
8minimum monthly retirement benefit amount is the sum of $25 for
9each year of service credit, up to a maximum of 30 years of
10service.
11    (c) This Section applies to all persons receiving a
12retirement annuity under this Article, without regard to
13whether or not employment terminated prior to the effective
14date of this Section. The annual increase provided in
15subsection (e) of Section 15-134.6 1-160 does not apply to any
16benefit provided under this Section.
17(Source: P.A. 96-1490, eff. 1-1-11.)
 
18    (40 ILCS 5/15-136.5 new)
19    Sec. 15-136.5. Minimum benefit and allocation provisions.
20Each employee participating in the System shall receive a
21minimum benefit or allocation determined as follows:
22        (1) If the employee is participating in the traditional
23    or portable benefit package or the revised defined benefit
24    package, the employee shall receive a minimum benefit
25    (commencing on his or her Social Security retirement age)

 

 

09700SB0512ham001- 189 -LRB097 06621 AMC 56256 a

1    for the employee's period of service covered by each such
2    defined benefit package that is equal to the annual primary
3    insurance amount the employee would have under Social
4    Security for such period of service. For the purposes of
5    this item (1), the primary insurance amount an individual
6    would have under Social Security shall be calculated so
7    that the System meets the requirements necessary to be
8    considered a "retirement system" under Section
9    3121(b)(7)(F) of the Internal Revenue Code and the
10    regulations in effect thereunder.
11        (2) If the employee is participating in the
12    self-managed plan, the employee shall receive a minimum
13    allocation equal to 7.5% of the employee's compensation for
14    service during the period. All contributions shall be taken
15    into account for this purpose. For the purposes of this
16    paragraph (2), the minimum allocation shall be calculated
17    so that the System meets the requirements necessary to be
18    considered a "retirement system" under Section
19    3121(b)(7)(F) of the Internal Revenue Code and the
20    regulations in effect thereunder.
 
21    (40 ILCS 5/15-146)  (from Ch. 108 1/2, par. 15-146)
22    Sec. 15-146. Survivors insurance benefits - Minimum
23amounts.
24    (a) The minimum total survivors annuity payable on account
25of the death of a participant shall be 50% of the retirement

 

 

09700SB0512ham001- 190 -LRB097 06621 AMC 56256 a

1annuity which would have been provided under Rule 1, Rule 2,
2Rule 3, or Rule 5 of Section 15-136 upon the participant's
3attainment of the minimum age at which the penalty for early
4retirement would not be applicable or the date of the
5participant's death, whichever is later, on the basis of
6credits earned prior to the time of death.
7    (b) The minimum total survivors annuity payable on account
8of the death of an annuitant shall be 50% of the retirement
9annuity which is payable under Section 15-136 at the time of
10death or 50% of the disability retirement annuity payable under
11Section 15-153.2. This minimum survivors annuity shall apply to
12each participant and annuitant who dies after September 16,
131979, whether or not his or her employee status terminates
14before or after that date.
15    (c) If an annuitant has elected a reversionary annuity, the
16retirement annuity referred to in this Section is that which
17would have been payable had such election not been filed.
18    (d) Beginning January 1, 2002, any person who is receiving
19a survivors annuity under this Article which, after inclusion
20of all one-time and automatic annual increases to which the
21person is entitled, is less than the sum of $17.50 for each
22year (up to a maximum of 30 years) of the deceased member's
23service credit, shall be entitled to a monthly supplemental
24payment equal to the difference.
25    If 2 or more persons are receiving survivors annuities
26based on the same deceased member, the calculation of the

 

 

09700SB0512ham001- 191 -LRB097 06621 AMC 56256 a

1supplemental payment under this subsection shall be based on
2the total of those annuities and divided pro rata. The
3supplemental payment is not subject to any limitation on the
4maximum amount of the annuity and shall not be included in the
5calculation of any automatic annual increase under Section
615-145. The annual increase provided in subsection (f) of
7Section 15-134.6 1-160 does not apply to any benefit provided
8under this subsection.
9(Source: P.A. 96-1490, eff. 1-1-11.)
 
10    (40 ILCS 5/15-155)  (from Ch. 108 1/2, par. 15-155)
11    Sec. 15-155. Employer contributions.
12    (a) The State of Illinois shall make contributions by
13appropriations of amounts which, together with the other
14employer contributions from trust, federal, and other funds,
15employee contributions, income from investments, and other
16income of this System, will be sufficient to meet the cost of
17maintaining and administering the System on a 90% funded basis
18in accordance with actuarial recommendations.
19    The Board shall determine the amount of State contributions
20required for each fiscal year on the basis of the actuarial
21tables and other assumptions adopted by the Board and the
22recommendations of the actuary, using the formula in subsection
23(a-1).
24    (a-1) For State fiscal years 2016 2012 through 2045, the
25minimum contribution to the System to be made by the State for

 

 

09700SB0512ham001- 192 -LRB097 06621 AMC 56256 a

1each fiscal year shall be an amount equal to the sum of (i) the
2minimum employer contribution determined under Section
315-155.1, plus (ii) an amount determined by the System to be
4sufficient to bring the total assets of the System up to 90% of
5the total actuarial liabilities of the System by the end of
6State fiscal year 2045. In making the these determinations
7under item (ii) of this subsection (a-1), the required State
8contribution shall be calculated each year as a level
9percentage of revenue provided by the individual income tax,
10sales tax, and corporate income tax assuming a 2.3% average
11annual growth rate in these revenues payroll over the years
12remaining to and including fiscal year 2045 and shall be
13determined under the projected unit credit actuarial cost
14method. The contribution required in each fiscal year under
15this subsection (a-1) must not be less than 100% of the prior
16fiscal year's contribution.
17    For State fiscal years 2013 1996 through 2015 2005, the
18State contribution to the System, as a percentage of State
19revenue from the individual income tax, sales tax, and
20corporate income tax the applicable employee payroll, shall be
21increased in equal annual increments so that by State fiscal
22year 2016 2011, the State is contributing at the rate required
23under this Section.
24    Notwithstanding any other provision of this Article, the
25total required State contribution for State fiscal year 2006 is
26$166,641,900.

 

 

09700SB0512ham001- 193 -LRB097 06621 AMC 56256 a

1    Notwithstanding any other provision of this Article, the
2total required State contribution for State fiscal year 2007 is
3$252,064,100.
4    For each of State fiscal years 2008 through 2009, the State
5contribution to the System, as a percentage of the applicable
6employee payroll, shall be increased in equal annual increments
7from the required State contribution for State fiscal year
82007, so that by State fiscal year 2011, the State is
9contributing at the rate otherwise required under this Section.
10    Notwithstanding any other provision of this Article, the
11total required State contribution for State fiscal year 2010 is
12$702,514,000 and shall be made from the State Pensions Fund and
13proceeds of bonds sold in fiscal year 2010 pursuant to Section
147.2 of the General Obligation Bond Act, less (i) the pro rata
15share of bond sale expenses determined by the System's share of
16total bond proceeds, (ii) any amounts received from the General
17Revenue Fund in fiscal year 2010, (iii) any reduction in bond
18proceeds due to the issuance of discounted bonds, if
19applicable.
20    Notwithstanding any other provision of this Article, the
21total required State contribution for State fiscal year 2011 is
22the amount recertified by the System on or before April 1, 2011
23pursuant to Section 15-165 and shall be made from the State
24Pensions Fund and proceeds of bonds sold in fiscal year 2011
25pursuant to Section 7.2 of the General Obligation Bond Act,
26less (i) the pro rata share of bond sale expenses determined by

 

 

09700SB0512ham001- 194 -LRB097 06621 AMC 56256 a

1the System's share of total bond proceeds, (ii) any amounts
2received from the General Revenue Fund in fiscal year 2011, and
3(iii) any reduction in bond proceeds due to the issuance of
4discounted bonds, if applicable.
5    Notwithstanding any other provision of this Article, the
6total required State contribution for fiscal year 2011 is
7$775,781,000 and the total required State contribution for
8fiscal year 2012 is 980,485,000.
9    Beginning in State fiscal year 2046, the minimum State
10contribution for each fiscal year shall be an amount equal to
11the minimum employer contribution determined under Section
1215-155.1, plus the amount needed to maintain the total assets
13of the System at 90% of the total actuarial liabilities of the
14System.
15    Amounts received by the System pursuant to Section 25 of
16the Budget Stabilization Act or Section 8.12 of the State
17Finance Act in any fiscal year do not reduce and do not
18constitute payment of any portion of the minimum State
19contribution required under this Article in that fiscal year.
20Such amounts shall not reduce, and shall not be included in the
21calculation of, the required State contributions under this
22Article in any future year until the System has reached a
23funding ratio of at least 90%. A reference in this Article to
24the "required State contribution" or any substantially similar
25term does not include or apply to any amounts payable to the
26System under Section 25 of the Budget Stabilization Act.

 

 

09700SB0512ham001- 195 -LRB097 06621 AMC 56256 a

1    Notwithstanding any other provision of this Section, the
2required State contribution for State fiscal year 2005 and for
3fiscal year 2008 and each fiscal year thereafter until fiscal
4year 2013, as calculated under this Section and certified under
5Section 15-165, shall not exceed an amount equal to (i) the
6amount of the required State contribution that would have been
7calculated under this Section for that fiscal year if the
8System had not received any payments under subsection (d) of
9Section 7.2 of the General Obligation Bond Act, minus (ii) the
10portion of the State's total debt service payments for that
11fiscal year on the bonds issued in fiscal year 2003 for the
12purposes of that Section 7.2, as determined and certified by
13the Comptroller, that is the same as the System's portion of
14the total moneys distributed under subsection (d) of Section
157.2 of the General Obligation Bond Act. In determining this
16maximum for State fiscal years 2008 through 2010, however, the
17amount referred to in item (i) shall be increased, as a
18percentage of the applicable employee payroll, in equal
19increments calculated from the sum of the required State
20contribution for State fiscal year 2007 plus the applicable
21portion of the State's total debt service payments for fiscal
22year 2007 on the bonds issued in fiscal year 2003 for the
23purposes of Section 7.2 of the General Obligation Bond Act, so
24that, by State fiscal year 2011, the State is contributing at
25the rate otherwise required under this Section.
26    (b) If an employee is paid from trust or federal funds, the

 

 

09700SB0512ham001- 196 -LRB097 06621 AMC 56256 a

1employer shall pay to the Board contributions from those funds
2which are sufficient to cover the accruing normal costs on
3behalf of the employee. However, universities having employees
4who are compensated out of local auxiliary funds, income funds,
5or service enterprise funds are not required to pay such
6contributions on behalf of those employees. The local auxiliary
7funds, income funds, and service enterprise funds of
8universities shall not be considered trust funds for the
9purpose of this Article, but funds of alumni associations,
10foundations, and athletic associations which are affiliated
11with the universities included as employers under this Article
12and other employers which do not receive State appropriations
13are considered to be trust funds for the purpose of this
14Article.
15    (b-1) The City of Urbana and the City of Champaign shall
16each make employer contributions to this System for their
17respective firefighter employees who participate in this
18System pursuant to subsection (h) of Section 15-107. The rate
19of contributions to be made by those municipalities shall be
20determined annually by the Board on the basis of the actuarial
21assumptions adopted by the Board and the recommendations of the
22actuary, and shall be expressed as a percentage of salary for
23each such employee. The Board shall certify the rate to the
24affected municipalities as soon as may be practical. The
25employer contributions required under this subsection shall be
26remitted by the municipality to the System at the same time and

 

 

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1in the same manner as employee contributions.
2    (c) Through State fiscal year 1995: The total employer
3contribution shall be apportioned among the various funds of
4the State and other employers, whether trust, federal, or other
5funds, in accordance with actuarial procedures approved by the
6Board. State of Illinois contributions for employers receiving
7State appropriations for personal services shall be payable
8from appropriations made to the employers or to the System. The
9contributions for Class I community colleges covering earnings
10other than those paid from trust and federal funds, shall be
11payable solely from appropriations to the Illinois Community
12College Board or the System for employer contributions.
13    (d) Beginning in State fiscal year 1996, the required State
14contributions to the System shall be appropriated directly to
15the System and shall be payable through vouchers issued in
16accordance with subsection (c) of Section 15-165, except as
17provided in subsection (g).
18    (e) The State Comptroller shall draw warrants payable to
19the System upon proper certification by the System or by the
20employer in accordance with the appropriation laws and this
21Code.
22    (f) Normal costs under this Section means liability for
23pensions and other benefits which accrues to the System because
24of the credits earned for service rendered by the participants
25during the fiscal year and expenses of administering the
26System, but shall not include the principal of or any

 

 

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1redemption premium or interest on any bonds issued by the Board
2or any expenses incurred or deposits required in connection
3therewith.
4    (g) If the amount of a participant's earnings for any
5academic year used to determine the final rate of earnings,
6determined on a full-time equivalent basis, exceeds the amount
7of his or her earnings with the same employer for the previous
8academic year, determined on a full-time equivalent basis, by
9more than 6%, the participant's employer shall pay to the
10System, in addition to all other payments required under this
11Section and in accordance with guidelines established by the
12System, the present value of the increase in benefits resulting
13from the portion of the increase in earnings that is in excess
14of 6%. This present value shall be computed by the System on
15the basis of the actuarial assumptions and tables used in the
16most recent actuarial valuation of the System that is available
17at the time of the computation. The System may require the
18employer to provide any pertinent information or
19documentation.
20    Whenever it determines that a payment is or may be required
21under this subsection (g), the System shall calculate the
22amount of the payment and bill the employer for that amount.
23The bill shall specify the calculations used to determine the
24amount due. If the employer disputes the amount of the bill, it
25may, within 30 days after receipt of the bill, apply to the
26System in writing for a recalculation. The application must

 

 

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1specify in detail the grounds of the dispute and, if the
2employer asserts that the calculation is subject to subsection
3(h) or (i) of this Section, must include an affidavit setting
4forth and attesting to all facts within the employer's
5knowledge that are pertinent to the applicability of subsection
6(h) or (i). Upon receiving a timely application for
7recalculation, the System shall review the application and, if
8appropriate, recalculate the amount due.
9    The employer contributions required under this subsection
10(f) may be paid in the form of a lump sum within 90 days after
11receipt of the bill. If the employer contributions are not paid
12within 90 days after receipt of the bill, then interest will be
13charged at a rate equal to the System's annual actuarially
14assumed rate of return on investment compounded annually from
15the 91st day after receipt of the bill. Payments must be
16concluded within 3 years after the employer's receipt of the
17bill.
18    (h) This subsection (h) applies only to payments made or
19salary increases given on or after June 1, 2005 but before July
201, 2011. The changes made by Public Act 94-1057 shall not
21require the System to refund any payments received before July
2231, 2006 (the effective date of Public Act 94-1057).
23    When assessing payment for any amount due under subsection
24(g), the System shall exclude earnings increases paid to
25participants under contracts or collective bargaining
26agreements entered into, amended, or renewed before June 1,

 

 

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12005.
2    When assessing payment for any amount due under subsection
3(g), the System shall exclude earnings increases paid to a
4participant at a time when the participant is 10 or more years
5from retirement eligibility under Section 15-135.
6    When assessing payment for any amount due under subsection
7(g), the System shall exclude earnings increases resulting from
8overload work, including a contract for summer teaching, or
9overtime when the employer has certified to the System, and the
10System has approved the certification, that: (i) in the case of
11overloads (A) the overload work is for the sole purpose of
12academic instruction in excess of the standard number of
13instruction hours for a full-time employee occurring during the
14academic year that the overload is paid and (B) the earnings
15increases are equal to or less than the rate of pay for
16academic instruction computed using the participant's current
17salary rate and work schedule; and (ii) in the case of
18overtime, the overtime was necessary for the educational
19mission.
20    When assessing payment for any amount due under subsection
21(g), the System shall exclude any earnings increase resulting
22from (i) a promotion for which the employee moves from one
23classification to a higher classification under the State
24Universities Civil Service System, (ii) a promotion in academic
25rank for a tenured or tenure-track faculty position, or (iii) a
26promotion that the Illinois Community College Board has

 

 

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1recommended in accordance with subsection (k) of this Section.
2These earnings increases shall be excluded only if the
3promotion is to a position that has existed and been filled by
4a member for no less than one complete academic year and the
5earnings increase as a result of the promotion is an increase
6that results in an amount no greater than the average salary
7paid for other similar positions.
8    (i) When assessing payment for any amount due under
9subsection (g), the System shall exclude any salary increase
10described in subsection (h) of this Section given on or after
11July 1, 2011 but before July 1, 2014 under a contract or
12collective bargaining agreement entered into, amended, or
13renewed on or after June 1, 2005 but before July 1, 2011.
14Notwithstanding any other provision of this Section, any
15payments made or salary increases given after June 30, 2014
16shall be used in assessing payment for any amount due under
17subsection (g) of this Section.
18    (j) The System shall prepare a report and file copies of
19the report with the Governor and the General Assembly by
20January 1, 2007 that contains all of the following information:
21        (1) The number of recalculations required by the
22    changes made to this Section by Public Act 94-1057 for each
23    employer.
24        (2) The dollar amount by which each employer's
25    contribution to the System was changed due to
26    recalculations required by Public Act 94-1057.

 

 

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1        (3) The total amount the System received from each
2    employer as a result of the changes made to this Section by
3    Public Act 94-4.
4        (4) The increase in the required State contribution
5    resulting from the changes made to this Section by Public
6    Act 94-1057.
7    (k) The Illinois Community College Board shall adopt rules
8for recommending lists of promotional positions submitted to
9the Board by community colleges and for reviewing the
10promotional lists on an annual basis. When recommending
11promotional lists, the Board shall consider the similarity of
12the positions submitted to those positions recognized for State
13universities by the State Universities Civil Service System.
14The Illinois Community College Board shall file a copy of its
15findings with the System. The System shall consider the
16findings of the Illinois Community College Board when making
17determinations under this Section. The System shall not exclude
18any earnings increases resulting from a promotion when the
19promotion was not submitted by a community college. Nothing in
20this subsection (k) shall require any community college to
21submit any information to the Community College Board.
22    (l) For purposes of determining the required State
23contribution to the System, the value of the System's assets
24shall be equal to the actuarial value of the System's assets,
25which shall be calculated as follows:
26    As of June 30, 2008, the actuarial value of the System's

 

 

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1assets shall be equal to the market value of the assets as of
2that date. In determining the actuarial value of the System's
3assets for fiscal years after June 30, 2008, any actuarial
4gains or losses from investment return incurred in a fiscal
5year shall be recognized in equal annual amounts over the
65-year period following that fiscal year.
7    (m) For purposes of determining the required State
8contribution to the system for a particular year, the actuarial
9value of assets shall be assumed to earn a rate of return equal
10to the system's actuarially assumed rate of return.
11(Source: P.A. 95-331, eff. 8-21-07; 95-950, eff. 8-29-08;
1296-43, eff. 7-15-09; 96-1497, eff. 1-14-11; 96-1511, eff.
131-27-11; 96-1554, eff. 3-18-11; revised 4-6-11.)
 
14    (40 ILCS 5/15-155.1 new)
15    Sec. 15-155.1. Minimum employer contribution. The
16following rules apply in determining the minimum employer
17contribution in State fiscal year 2013 and each fiscal year
18thereafter:
19        (1) With respect to employees who elect the traditional
20    or portable defined benefit package, an amount equal to 6%
21    of the pensionable payroll of the employee group.
22        (2) With respect to employees who elect the revised
23    defined benefit package, an amount equal to 6% of the
24    pensionable payroll of the employee group.
25        (3) With respect to employees who elect the

 

 

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1    self-managed plan, an amount equal to (i) 6% of pensionable
2    payroll of the employee group and (ii) an amount determined
3    by the System to fund the disability plan provided in this
4    Article.
 
5    (40 ILCS 5/15-157)  (from Ch. 108 1/2, par. 15-157)
6    Sec. 15-157. Employee Contributions.
7    (a) Each participating employee shall make contributions
8towards the retirement benefits payable under the retirement
9program applicable to the employee from each payment of
10earnings applicable to employment under this system on and
11after the date of becoming a participant as follows: Prior to
12September 1, 1949, 3 1/2% of earnings; from September 1, 1949
13to August 31, 1955, 5%; from September 1, 1955 to August 31,
141969, 6%; from September 1, 1969, 6 1/2%. These contributions
15are to be considered as normal contributions for purposes of
16this Article.
17    Each participant who is a police officer or firefighter
18shall make normal contributions of 8% of each payment of
19earnings applicable to employment as a police officer or
20firefighter under this system on or after September 1, 1981,
21unless he or she files with the board within 60 days after the
22effective date of this amendatory Act of 1991 or 60 days after
23the board receives notice that he or she is employed as a
24police officer or firefighter, whichever is later, a written
25notice waiving the retirement formula provided by Rule 4 of

 

 

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1Section 15-136. This waiver shall be irrevocable. If a
2participant had met the conditions set forth in Section
315-132.1 prior to the effective date of this amendatory Act of
41991 but failed to make the additional normal contributions
5required by this paragraph, he or she may elect to pay the
6additional contributions plus compound interest at the
7effective rate. If such payment is received by the board, the
8service shall be considered as police officer service in
9calculating the retirement annuity under Rule 4 of Section
1015-136. While performing service described in clause (i) or
11(ii) of Rule 4 of Section 15-136, a participating employee
12shall be deemed to be employed as a firefighter for the purpose
13of determining the rate of employee contributions under this
14Section.
15    (b) Starting September 1, 1969, each participating
16employee shall make additional contributions of 1/2 of 1% of
17earnings to finance a portion of the cost of the annual
18increases in retirement annuity provided under Section 15-136,
19except that with respect to participants in the self-managed
20plan this additional contribution shall be used to finance the
21benefits obtained under that retirement program.
22    (c) In addition to the amounts described in subsections (a)
23and (b) of this Section, each participating employee shall make
24contributions of 1% of earnings applicable under this system on
25and after August 1, 1959. The contributions made under this
26subsection (c) shall be considered as survivor's insurance

 

 

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1contributions for purposes of this Article if the employee is
2covered under the traditional benefit package, and such
3contributions shall be considered as additional contributions
4for purposes of this Article if the employee is participating
5in the self-managed plan or has elected to participate in the
6portable benefit package and has completed the applicable
7one-year waiting period. Contributions in excess of $80 during
8any fiscal year beginning before August 31, 1969 and in excess
9of $120 during any fiscal year thereafter until September 1,
101971 shall be considered as additional contributions for
11purposes of this Article.
12    (d) If the board by board rule so permits and subject to
13such conditions and limitations as may be specified in its
14rules, a participant may make other additional contributions of
15such percentage of earnings or amounts as the participant shall
16elect in a written notice thereof received by the board.
17    (e) That fraction of a participant's total accumulated
18normal contributions, the numerator of which is equal to the
19number of years of service in excess of that which is required
20to qualify for the maximum retirement annuity, and the
21denominator of which is equal to the total service of the
22participant, shall be considered as accumulated additional
23contributions. The determination of the applicable maximum
24annuity and the adjustment in contributions required by this
25provision shall be made as of the date of the participant's
26retirement.

 

 

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1    (f) Notwithstanding the foregoing, a participating
2employee shall not be required to make contributions under this
3Section after the date upon which continuance of such
4contributions would otherwise cause his or her retirement
5annuity to exceed the maximum retirement annuity as specified
6in clause (1) of subsection (c) of Section 15-136.
7    (g) A participating employee may make contributions for the
8purchase of service credit under this Article.
9    (h) Notwithstanding anything in this Section to the
10contrary, effective July 1, 2012, all participating employees
11shall be required to make the following contributions:
12        (1) Participants who elect the traditional or portable
13    defined benefit package shall contribute:
14            (A) In fiscal year 2013, fiscal year 2014, and
15        fiscal year 2015, an amount equal to 15.31% of salary.
16            (B) In fiscal year 2016 and in each fiscal year
17        thereafter, a percentage of salary equal to the
18        actuarially determined normal cost of the traditional
19        defined benefit package, minus employer contributions
20        under Section 15-155.1, provided that no participant's
21        contribution shall be less than 6% of pensionable
22        payroll. The System shall certify the actuarially
23        determined normal cost of such traditional defined
24        benefit package and the amount of the required employee
25        contributions by January 1, 2015 and every 3 years
26        thereafter.

 

 

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1        (2) Participants who elect the revised defined benefit
2    package shall contribute a percentage of compensation
3    equal to the actuarially determined normal cost of the
4    revised defined benefit package, minus employer
5    contributions under Section 15-155, provided that no
6    participant's contribution shall be less than 6% of
7    pensionable payroll. The System shall certify the
8    actuarially determined normal cost of such revised defined
9    benefit package and the amount of the required employee
10    contribution for fiscal year 2013 and every 3 years
11    thereafter.
12        (3) Participants who elect the self-managed plan shall
13    contribute a minimum of 6% of compensation. Participants
14    who elect the self-managed plan may elect to increase their
15    employee contribution in accordance with rules prescribed
16    by the Board.
17(Source: P.A. 90-32, eff. 6-27-97; 90-65, eff. 7-7-97; 90-448,
18eff. 8-16-97; 90-511, eff. 8-22-97; 90-576, eff. 3-31-98;
1990-655, eff. 7-30-98; 90-766, eff. 8-14-98.)
 
20    (40 ILCS 5/15-199 new)
21    Sec. 15-199. Qualified plan status. No provision of this
22Article shall be interpreted in a way that would cause the
23System to cease to be a qualified plan under Section 401(a) of
24the Internal Revenue Code.
 

 

 

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1    (40 ILCS 5/16-101.1 new)
2    Sec. 16-101.1. Exclusive benefit rule. Prior to the
3satisfaction of all liabilities to members or their
4beneficiaries, no part of the corpus or income of the System
5shall be used for, or diverted to, purposes other than for the
6exclusive benefit of such members or their beneficiaries.
 
7    (40 ILCS 5/16-122)  (from Ch. 108 1/2, par. 16-122)
8    Sec. 16-122. Actuarial equivalent. "Actuarial equivalent":
9A benefit or sum of equal value to another benefit or sum when
10computed on the basis of mortality tables and interest rates
11adopted by the board.
12    The mortality tables and interest rates as so adopted by
13the board from time to time shall apply to this Article as
14though such provisions were fully set forth in this Article as
15a part thereof. This Section shall apply beginning July 1,
161984.
17(Source: P.A. 83-1440.)
 
18    (40 ILCS 5/16-133.6 new)
19    Sec. 16-133.6. Benefits on and after July 1, 2012.
20    (a) Each member under this Article, other than a person who
21first becomes a member on or after January 1, 2011, shall
22choose which retirement program he or she wishes to participate
23in with respect to all periods of covered employment occurring
24on and after July 1, 2012. The retirement program election made

 

 

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1by the participating member must be made no later than July 1,
22012 in accordance with rules prescribed by the System or 6
3months from the first date of membership. The participating
4member shall elect one of the following retirement programs:
5        (1) the benefit offered under Sections 16-133 through
6    16-133.2, except that future contributions will be
7    remitted as required under Section 16-152;
8        (2) the benefit offered under Section 16-133.7; and
9        (3) the self-managed plan offered under Section
10    16-133.8.
11    (b) A person who first becomes a member in the System, on
12or after January 1, 2011, shall elect, based on the eligibility
13criteria specified in this Code, which retirement program he or
14she wishes to participate in with respect to all periods of
15covered employment occurring on and after July 1, 2012. The
16member shall elect one of the retirement programs provided in
17paragraph (2) or (3) of subsection (a) of this Section. The
18member must make that election (i) by June 30, 2012 or within 6
19months after the participant's first day of covered employment,
20whichever is later, and (ii) if applicable, every 3 years
21thereafter.
22    An individual who is a member (as that term is defined in
23Section 16-107 of this Article) in the System, but is not an
24employee as of January 1, 2012, shall be allowed to elect one
25of the 3 retirement programs provided under paragraphs (1),
26(2), or (3) of subsection (a) of this Section within 6 months

 

 

09700SB0512ham001- 211 -LRB097 06621 AMC 56256 a

1after becoming an employee.
2    (c) The member election authorized by this Section is an
3irrevocable election, except that any individual making an
4election for the retirement program under paragraph (1) or (2)
5of subsection (a) shall make an election for a period of 3
6years, and shall make subsequent elections every 3 years during
7a 6-month period prescribed by the System. The election shall
8be made in the manner prescribed by the System. Any member who
9fails to make the initial election shall, by default,
10participate in the benefit program provided under paragraph (2)
11of subsection (a) of this Section.
12    (d) Participants who have already made an election pursuant
13to subsection (a) or (b) shall be given the opportunity to make
14a new election as follows:
15        (1) each participant in the traditional defined
16    benefit package provided under paragraph (1) of subsection
17    (a) of this Section shall have the opportunity to elect to
18    terminate participation in the traditional defined benefit
19    package and to elect to have retirement benefits for future
20    service provided under either the revised defined benefit
21    package provided under paragraph (2) of subsection (a) of
22    this Section or the self-managed plan provided under
23    paragraph (3) of subsection (a) of this Section;
24        (2) each participant in the revised defined benefit
25    package provided under paragraph (2) of subsection (a) of
26    this Section shall have the opportunity to elect to

 

 

09700SB0512ham001- 212 -LRB097 06621 AMC 56256 a

1    terminate participation in the revised defined benefit
2    package and to elect to have retirement benefits for future
3    service provided under the self-managed plan provided
4    under paragraph (3) of subsection (a) of this Section; and
5        (3) the elections permitted under paragraphs (1) and
6    (2) must be made during the 6-month period in the manner
7    prescribed by the System.
8    (e) If a member with an accrued benefit under Sections
916-133 through 16-133.2 of this Code elects the revised defined
10benefit package provided under paragraph (2) of subsection (a)
11of this Section, the member's total accrued benefit for
12purposes of determining an annuity shall be the sum of (i) the
13member's benefit accruals before July 1, 2012, based on the
14member's pay and service through June 30, 2012 and fixed with
15respect to pay on July 1, 2012, and (ii) the member's benefit
16accruals based on pay and service on or after July 1, 2012. All
17rights and features provided under the benefit package will be
18preserved with respect to benefits earned under such package
19with respect to service completed prior to the election to
20participate in the revised benefit package. Furthermore, the
21participant shall be entitled to the benefit of the survivor's
22annuity provided under Public Act 96-889 and Public Act
2396-1490. All service completed under the System shall count for
24purposes of determining retirement eligibility and vesting
25under both the retirement programs offered under paragraphs (1)
26and (2) of subsection (a), provided that the vesting

 

 

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1requirements shall continue to govern vesting for participants
2in both the retirement programs offered under paragraphs (1)
3and (2) of subsection (a).
4    (f) If a member with an accrued benefit under Sections
516-133 through 16-133.2 or under Section 16-133.7 elects the
6self-managed plan provided under paragraph (3) of subsection
7(a) of this Section, the member's total accrued benefit for
8purposes of determining an annuity shall be the participant's
9benefit accruals before July 1, 2012, based on the member's pay
10and service through June 30, 2012 and fixed with respect to pay
11and service after that date. However, the member shall also
12have an accrued self-managed plan balance as specified in
13Section 16-133.8, for periods of covered employment on and
14after July 1, 2012. All accrued benefits will be preserved with
15respect to benefits earned under such package with respect to
16service completed prior to the election to participate in the
17self-managed plan. All service completed shall count for
18purposes of determining retirement eligibility and vesting
19under both the retirement programs offered under paragraphs (1)
20and (3) of subsection (a) of this Section.
 
21    (40 ILCS 5/16-133.7 new)
22    Sec. 16-133.7. Provisions applicable to persons hired on or
23after January 1, 2011.
24    (a) The provisions of this Section apply to a person who,
25on or after January 1, 2011, first becomes a member under this

 

 

09700SB0512ham001- 214 -LRB097 06621 AMC 56256 a

1Article.
2    (b) "Final average salary" means the average annual salary
3obtained by dividing the total salary or earnings calculated
4under the Article applicable to the member during the 8
5consecutive years of service within the last 10 years of
6service in which the total salary or earnings calculated under
7this Article was the highest by the number of years of service
8in that period.
9    (b-5) Beginning on January 1, 2011, the annual earnings,
10salary, or wages of a member shall not exceed $106,800;
11however, that amount shall annually thereafter be increased by
12the lesser of (i) 3% of that amount, including all previous
13adjustments, or (ii) one-half the annual unadjusted percentage
14increase (but not less than zero) in the consumer price index-u
15for the 12 months ending with the September preceding each
16November 1, including all previous adjustments.
17    For the purposes of this Section, "consumer price index-u"
18means the index published by the Bureau of Labor Statistics of
19the United States Department of Labor that measures the average
20change in prices of goods and services purchased by all urban
21consumers, United States city average, all items, 1982-84 =
22100. The new amount resulting from each annual adjustment shall
23be determined by the Public Pension Division of the Department
24of Insurance and made available to the boards of the retirement
25systems and pension funds by November 1 of each year.
26    (c) A member is entitled to a retirement annuity upon

 

 

09700SB0512ham001- 215 -LRB097 06621 AMC 56256 a

1written application if he or she has attained age 67 and has at
2least 10 years of service credit and is otherwise eligible
3under the requirements of this Article. A member who has
4attained age 62 and has at least 10 years of service credit and
5is otherwise eligible under the requirements of this Article
6may elect to receive the lower retirement annuity provided in
7subsection (d) of this Section.
8    (d) The retirement annuity of a member who is retiring
9after attaining age 62 with at least 10 years of service credit
10shall be reduced by one-half of 1% for each full month that the
11member's age is under age 67.
12    (e) Any retirement annuity shall be subject to annual
13increases on the January 1 occurring either on or after the
14attainment of age 67 or the first anniversary of the annuity
15start date, whichever is later. Each annual increase shall be
16calculated at 3% or one-half the annual unadjusted percentage
17increase (but not less than zero) in the consumer price index-u
18for the 12 months ending with the September preceding each
19November 1, whichever is less, of the originally granted
20retirement annuity. If the annual unadjusted percentage change
21in the consumer price index-u for the 12 months ending with the
22September preceding each November 1 is zero or there is a
23decrease, then the annuity shall not be increased.
24    (f) The initial survivor's annuity of an otherwise eligible
25survivor of a retired member who first became a member on or
26after January 1, 2011 shall be in the amount of 66 2/3% of the

 

 

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1retired member's retirement annuity at the date of death. In
2the case of the death of a member who has not retired and who
3first became a member on or after January 1, 2011, eligibility
4for a survivor's or widow's annuity shall be determined by this
5Article. The initial benefit shall be 66 2/3% of the earned
6annuity without a reduction due to age. Any survivor's annuity
7shall be increased (1) on each January 1 occurring on or after
8the commencement of the annuity if the deceased member died
9while receiving a retirement annuity or (2) in other cases, on
10each January 1 occurring after the first anniversary of the
11commencement of the annuity. Each annual increase shall be
12calculated at 3% or one-half the annual unadjusted percentage
13increase (but not less than zero) in the consumer price index-u
14for the 12 months ending with the September preceding each
15November 1, whichever is less, of the originally granted
16survivor's annuity. If the annual unadjusted percentage change
17in the consumer price index-u for the 12 months ending with the
18September preceding each November 1 is zero or there is a
19decrease, then the annuity shall not be increased.
20    (g) If a person who first becomes a member on or after
21January 1, 2011 is receiving a retirement annuity and becomes a
22member or participant under any other system or fund created by
23this Code and is employed on a full-time basis, then the
24person's retirement annuity shall be suspended during that
25employment. Upon termination of that employment, the person's
26retirement annuity payments shall resume and be recalculated.

 

 

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1    (h) Notwithstanding any other provision of this Section, a
2person who first becomes a member on or after January 1, 2011
3shall have the option to enroll in the self-managed plan
4created under Section 16-133.8 of this Code.
 
5