SB1523 EnrolledLRB098 07986 EFG 38076 b

1    AN ACT concerning public employee benefits.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Pension Code is amended by changing
5Sections 1-160, 12-130, 12-133.1, 12-133.2, 12-140, 12-149,
6and 12-150 and adding Sections 12-150.5, 12-155.5, and 12-195
7as follows:
 
8    (40 ILCS 5/1-160)
9    Sec. 1-160. Provisions applicable to new hires.
10    (a) The provisions of this Section apply to a person who,
11on or after January 1, 2011, first becomes a member or a
12participant under any reciprocal retirement system or pension
13fund established under this Code, other than a retirement
14system or pension fund established under Article 2, 3, 4, 5, 6,
1515 or 18 of this Code, notwithstanding any other provision of
16this Code to the contrary, but do not apply to any self-managed
17plan established under this Code, to any person with respect to
18service as a sheriff's law enforcement employee under Article
197, or to any participant of the retirement plan established
20under Section 22-101.
21    (b) "Final average salary" means the average monthly (or
22annual) salary obtained by dividing the total salary or
23earnings calculated under the Article applicable to the member

 

 

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1or participant during the 96 consecutive months (or 8
2consecutive years) of service within the last 120 months (or 10
3years) of service in which the total salary or earnings
4calculated under the applicable Article was the highest by the
5number of months (or years) of service in that period. For the
6purposes of a person who first becomes a member or participant
7of any retirement system or pension fund to which this Section
8applies on or after January 1, 2011, in this Code, "final
9average salary" shall be substituted for the following:
10        (1) In Article 7 (except for service as sheriff's law
11    enforcement employees), "final rate of earnings".
12        (2) In Articles 8, 9, 10, 11, and 12, "highest average
13    annual salary for any 4 consecutive years within the last
14    10 years of service immediately preceding the date of
15    withdrawal".
16        (3) In Article 13, "average final salary".
17        (4) In Article 14, "final average compensation".
18        (5) In Article 17, "average salary".
19        (6) In Section 22-207, "wages or salary received by him
20    at the date of retirement or discharge".
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 member or
25participant to whom this Section applies shall not exceed
26$106,800; however, that amount shall annually thereafter be

 

 

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1increased by the lesser of (i) 3% of that amount, including all
2previous adjustments, or (ii) one-half the annual unadjusted
3percentage increase (but not less than zero) in the consumer
4price index-u for the 12 months ending with the September
5preceding each November 1, including all previous adjustments.
6    For the purposes of this Section, "consumer price index-u"
7means the index published by the Bureau of Labor Statistics of
8the United States Department of Labor that measures the average
9change in prices of goods and services purchased by all urban
10consumers, United States city average, all items, 1982-84 =
11100. The new amount resulting from each annual adjustment shall
12be determined by the Public Pension Division of the Department
13of Insurance and made available to the boards of the retirement
14systems and pension funds by November 1 of each year.
15    (c) A member or participant is entitled to a retirement
16annuity upon written application if he or she has attained age
1767 (beginning January 1, 2015, age 65 with respect to service
18under Article 12 of this Code that is subject to this Section)
19and has at least 10 years of service credit and is otherwise
20eligible under the requirements of the applicable Article.
21    A member or participant who has attained age 62 (beginning
22January 1, 2015, age 60 with respect to service under Article
2312 of this Code that is subject to this Section) and has at
24least 10 years of service credit and is otherwise eligible
25under the requirements of the applicable Article may elect to
26receive the lower retirement annuity provided in subsection (d)

 

 

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1of this Section.
2    (d) The retirement annuity of a member or participant who
3is retiring after attaining age 62 (beginning January 1, 2015,
4age 60 with respect to service under Article 12 of this Code
5that is subject to this Section) with at least 10 years of
6service credit shall be reduced by one-half of 1% for each full
7month that the member's age is under age 67 (beginning January
81, 2015, age 65 with respect to service under Article 12 of
9this Code that is subject to this Section).
10    (e) Any retirement annuity or supplemental annuity shall be
11subject to annual increases on the January 1 occurring either
12on or after the attainment of age 67 (beginning January 1,
132015, age 65 with respect to service under Article 12 of this
14Code that is subject to this Section) or the first anniversary
15of the annuity start date, whichever is later. Each annual
16increase shall be calculated at 3% or one-half the annual
17unadjusted percentage increase (but not less than zero) in the
18consumer price index-u for the 12 months ending with the
19September preceding each November 1, whichever is less, of the
20originally granted retirement annuity. If the annual
21unadjusted percentage change in the consumer price index-u for
22the 12 months ending with the September preceding each November
231 is zero or there is a decrease, then the annuity shall not be
24increased.
25    (f) The initial survivor's or widow's annuity of an
26otherwise eligible survivor or widow of a retired member or

 

 

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1participant who first became a member or participant on or
2after January 1, 2011 shall be in the amount of 66 2/3% of the
3retired member's or participant's retirement annuity at the
4date of death. In the case of the death of a member or
5participant who has not retired and who first became a member
6or participant on or after January 1, 2011, eligibility for a
7survivor's or widow's annuity shall be determined by the
8applicable Article of this Code. The initial benefit shall be
966 2/3% of the earned annuity without a reduction due to age. A
10child's annuity of an otherwise eligible child shall be in the
11amount prescribed under each Article if applicable. Any
12survivor's or widow's annuity shall be increased (1) on each
13January 1 occurring on or after the commencement of the annuity
14if the deceased member died while receiving a retirement
15annuity or (2) in other cases, on each January 1 occurring
16after the first anniversary of the commencement of the annuity.
17Each annual increase shall be calculated at 3% or one-half the
18annual unadjusted percentage increase (but not less than zero)
19in the consumer price index-u for the 12 months ending with the
20September preceding each November 1, whichever is less, of the
21originally granted survivor's annuity. If the annual
22unadjusted percentage change in the consumer price index-u for
23the 12 months ending with the September preceding each November
241 is zero or there is a decrease, then the annuity shall not be
25increased.
26    (g) The benefits in Section 14-110 apply only if the person

 

 

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

 

 

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1    If a person who first becomes a member of a retirement
2system or pension fund subject to this Section on or after
3January 1, 2012 and is receiving a retirement annuity or
4retirement pension under that system or fund and accepts on a
5contractual basis a position to provide services to a
6governmental entity from which he or she has retired, then that
7person's annuity or retirement pension earned as an active
8employee of the employer shall be suspended during that
9contractual service. A person receiving an annuity or
10retirement pension under this Code shall notify the pension
11fund or retirement system from which he or she is receiving an
12annuity or retirement pension, as well as his or her
13contractual employer, of his or her retirement status before
14accepting contractual employment. A person who fails to submit
15such notification shall be guilty of a Class A misdemeanor and
16required to pay a fine of $1,000. Upon termination of that
17contractual employment, the person's retirement annuity or
18retirement pension payments shall resume and, if appropriate,
19be recalculated under the applicable provisions of this Code.
20    (i) (Blank).
21    (j) In the case of a conflict between the provisions of
22this Section and any other provision of this Code, the
23provisions of this Section shall control.
24(Source: P.A. 97-609, eff. 1-1-12; 98-92, eff. 7-16-13.)
 
25    (40 ILCS 5/12-130)  (from Ch. 108 1/2, par. 12-130)

 

 

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1    Sec. 12-130. Retirement prior to age 60. An employee
2withdrawing prior to January 1, 1990 with at least 10 years of
3service and before attainment of age 55 shall be entitled at
4his option to a retirement annuity beginning at age 55.
5    An employee withdrawing prior to January 1, 1990 with at
6least 10 years of service upon or after attainment of age 55,
7and before age 60, shall be entitled to a retirement annuity
8beginning at any time thereafter.
9    An employee who withdraws on or after January 1, 1990 and
10has attained age 45 before January 1, 2015 with at least 10
11years of service and prior to age 60 shall be entitled, at his
12option, to a retirement annuity beginning at any time after
13withdrawal or attainment of age 50, whichever occurs later. An
14employee who has not attained age 45 before January 1, 2015 and
15withdraws on or after that date with at least 10 years of
16service and prior to age 60 shall be entitled, at his option,
17to a retirement annuity beginning at any time after withdrawal
18or attainment of age 58, whichever occurs later.
19    Notwithstanding Section 1-103.1, the changes to this
20Section made by this amendatory Act of the 98th General
21Assembly apply regardless of whether the employee was in active
22service on or after the effective date of this amendatory Act,
23but do not apply to a person whose service under this Article
24is subject to Section 1-160.
25    Any employee upon withdrawal after at least 15 years of
26service, upon or after attainment of age 50, and before

 

 

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1attainment of age 55, who received ordinary disability benefit
2for the maximum period of time provided herein, and who
3continues to be disabled, shall be entitled to a retirement
4annuity.
5    The amount of retirement annuity for any employee who
6entered service prior to July 1, 1971 shall be provided from
7the total of the accumulations as stated in this Section, at
8the employee's attained age on the date of retirement:
9        (a) the accumulation from employee contributions for
10    service annuity on the date of withdrawal, improved by
11    regular interest from the date the employee withdraws to
12    the date he enters upon annuity;
13        (b) 1/10 of the accumulation, on the date of
14    withdrawal, from employer contributions for service
15    annuity, for each complete year of service above 10 years
16    up to 100% of such accumulation, improved by regular
17    interest from the date the employee withdraws to the date
18    he enters upon annuity.
19(Source: P.A. 86-272; 86-1028.)
 
20    (40 ILCS 5/12-133.1)  (from Ch. 108 1/2, par. 12-133.1)
21    Sec. 12-133.1. Annual increase in basic retirement
22annuity.
23    (a) Any employee upon withdrawal from service on or after
24July 1, 1965, and retiring on a retirement annuity, shall be
25entitled to an annual increase in his basic retirement annuity

 

 

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1as defined herein while he is in receipt of such annuity.
2    The term "basic retirement annuity" shall mean the
3retirement annuity of the amount fixed and payable at date of
4retirement of the employee.
5    (b) The annual increase in annuity shall be 1 1/2% of the
6basic retirement annuity. The increase shall first occur in the
7month of January or the month of July, whichever first occurs
8next following or coincidental with the first anniversary of
9retirement. Effective January 1, 1972, the annual rate of
10increase in annuity thereafter shall be 2% of the basic
11retirement annuity, provided that beginning as of January 1,
121976, the annual rate of increase shall be 3% of the basic
13retirement annuity.
14    (b-1) Notwithstanding subsection (b), all automatic annual
15increases payable under this Section on or after January 1,
162015 shall be calculated at 3% or one-half the annual
17unadjusted percentage increase (but not less than 0) in the
18Consumer Price Index-U for the 12 months ending with the
19September preceding each November 1, whichever is less, of the
20originally granted retirement annuity.
21    For the purposes of this Article, "Consumer Price Index-U"
22means the index published by the Bureau of Labor Statistics of
23the United States Department of Labor that measures the average
24change in prices of goods and services purchased by all urban
25consumers, United States city average, all items, 1982-84 =
26100. The new amount resulting from each annual adjustment shall

 

 

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1be determined by the Public Pension Division of the Department
2of Insurance.
3    Notwithstanding Section 1-103.1, this subsection (b-1) is
4applicable without regard to whether the employee was in active
5service on or after the effective date of this amendatory Act
6of the 98th General Assembly. This subsection (b-1) is also
7applicable to any former employee who on or after the effective
8date of this amendatory Act of the 98th General Assembly is
9receiving a retirement annuity pursuant to the provisions of
10this Section.
11    (b-2) Notwithstanding any other provision of this Article,
12no automatic annual increase in retirement annuity payable
13under this Section shall be granted to any person by the Fund
14in 2015, 2017, and 2019 under this Article or under Section
151-160 of this Code as it applies to this Article. In the years
162016, 2018, 2020, and thereafter, the Fund shall continue to
17pay amounts accruing from automatic annual increases in the
18manner provided by this Code.
19    Notwithstanding Section 1-103.1, this subsection (b-2) is
20applicable without regard to whether the employee was in active
21service on or after the effective date of this amendatory Act
22of the 98th General Assembly. This subsection (b-2) is also
23applicable to any former employee who on or after the effective
24date of this amendatory Act of the 98th General Assembly is
25receiving a retirement annuity pursuant to the provisions of
26this Article.

 

 

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1    (c) For an employee who retires with less than 30 years of
2service, the increase in the basic retirement annuity shall
3begin not earlier than in the month of January or the month of
4July, whichever occurs first, following or coincidental with
5the employee's attainment of age 60.
6    Subject to the provisions of subsection (b-2), for For an
7employee who retires with at least 30 years of service, the
8annual increase under this Section shall begin in the month of
9January or the month of July, whichever first occurs next
10following or coincidental with the later of (1) the first
11anniversary of retirement or (2) July 1, 1998, without regard
12to the attainment of age 60 and without regard to whether or
13not the employee was in service on or after the effective date
14of this amendatory Act of 1998.
15    (d) The increase in the basic retirement annuity shall not
16be applicable unless the employee otherwise qualified has made
17contributions to the fund as provided herein for an equivalent
18period of one full year. If such contributions were not made,
19the employee may make the required payment to the fund at the
20time of retirement, in a single sum, without interest.
21    (e) The additional contributions by an employee towards the
22annual increase in basic retirement annuity shall not be
23refundable, except to an employee who withdraws and applies for
24a refund under this Article, or dies while in service, and also
25in cases where a temporary annuity becomes payable. In such
26cases his contributions shall be refunded without interest.

 

 

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1(Source: P.A. 90-766, eff. 8-14-98.)
 
2    (40 ILCS 5/12-133.2)  (from Ch. 108 1/2, par. 12-133.2)
3    Sec. 12-133.2. Increases to employee annuitants. The
4provisions of subsections (b-1) and (b-2) of Section 12-133.1
5also apply to the benefits provided under this Section.
6    Employees who retired on service retirement annuity prior
7to July 1, 1965 who were at least 55 years of age at date of
8retirement and had at least 20 years of credited service, who
9shall have attained age 65, and any employee retired on or
10after such date who meets such qualifying conditions and who is
11not eligible for an annual increase in basic retirement annuity
12otherwise provided in this Article, shall be entitled to
13receive benefits under this Section.
14    These benefits shall be in an amount equal to 1 1/2% of the
15service retirement annuity multiplied by the number of full
16years that the annuitant was in receipt of such annuity. This
17payment shall begin in January of 1970, and an additional 1
181/2% based upon the original grant of annuity shall be added in
19January of each year thereafter. Beginning January 1, 1972, the
20annual rate of increase in annuity shall be 2% of the original
21grant of annuity and shall also apply thereafter to any person
22who shall have had at least 15 years of credited service and
23less than 20 years on the same basis as was applicable to
24persons retired with 20 or more years of service; provided that
25beginning January 1, 1976, the annual rate of increase in

 

 

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1retirement annuity shall be 3% of the basic retirement annuity.
2    An employee annuitant who otherwise qualifies for the
3aforesaid benefit shall make a one-time contribution of 1% of
4the final monthly average salary multiplied by the number of
5completed years of service forming the basis of his service
6retirement annuity, provided that if the annuity was computed
7on any other basis, the contribution shall be 1% of the rate of
8monthly salary in effect on the date of retirement multiplied
9by the number of completed years of service forming the basis
10of his service retirement annuity.
11(Source: P.A. 87-1265.)
 
12    (40 ILCS 5/12-140)  (from Ch. 108 1/2, par. 12-140)
13    Sec. 12-140. Duty disability benefit. An employee who
14becomes disabled as the direct result of injury incurred in the
15performance of an act of duty and cannot perform the duties of
16the regularly assigned position, is entitled to receive, while
17so disabled, a benefit of 75% of the salary at the date when
18such duty disability benefits commence, subject to the
19conditions hereinafter stated, except that beginning January
201, 2015, such duty disability benefits shall be reduced to 74%
21of that salary; beginning January 1, 2017, such duty disability
22benefits shall be reduced to 73% of that salary; and beginning
23January 1, 2019, such duty disability benefits shall be reduced
24to 72% of that salary.
25    In the event an employee returns to service from any duty

 

 

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1disability and renders actual employment in pay status
2performing the duties of the regularly assigned position for at
3least 60 days, and again becomes disabled, whether due to the
4previous disability or a new disability, the salary to be used
5in the computation of the benefit shall be the salary in effect
6at the date of the last day of service prior to the latest
7disability.
8    The employee shall also receive a further benefit of $20
9per month on account of each eligible minor child as prescribed
10in Section 12-137, but the combined benefit to employee and
11children shall not exceed the annual salary at the date of such
12disability less the sums that would be deducted from his salary
13for service annuity and spouse's service annuity.
14    The benefit prescribed herein shall be payable during
15disability until the employee attains age 65, if disability is
16incurred before age 60, or for a period of 5 years if
17disability is incurred at age 60 or older. If the disability is
18incurred after age 65, this 5 year period may be reduced if
19such reduction can be justified on the basis of actuarial cost
20data approved by the board upon the recommendation of the
21actuary. At such time if the employee remains disabled the
22employee may retire on a retirement annuity.
23    If an employee dies as the direct result of injury incurred
24in the performance of an act of duty, or if death results from
25any cause which is compensable under the Workers' Occupational
26Diseases Act, a surviving spouse shall be entitled to a benefit

 

 

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1(subject to the modifications stated in Section 12-141) of 50%
2of the employee's salary as it was at the date of injury
3resulting in death, until the date when the employee would have
4attained age 65, if injury was incurred under age 60, or for a
5period of 5 years if disability is incurred at age 60 or older.
6After such date, the spouse shall be entitled to receive the
7reversionary annuity that would have been fixed had the
8employee continued in service at the rate of salary received at
9the date of his injury resulting in death, until the employee
10attained age 65 or as stated herein and had then retired.
11    If a spouse remarries while under age 55 while in receipt
12of a benefit under this section, the benefit shall terminate.
13Such termination shall be final and shall not be affected by
14any change thereafter in his or her marital status.
15    Notwithstanding Section 1-103.1, the changes to this
16Section made by this amendatory Act of the 98th General
17Assembly apply to duty disability benefits payable on or after
18January 1, 2015, regardless of whether the recipient is deemed
19to be in service on or after the effective date of this
20amendatory Act.
21(Source: P.A. 86-272.)
 
22    (40 ILCS 5/12-149)   (from Ch. 108 1/2, par. 12-149)
23    Sec. 12-149. Financing.
24    (a) The board of park commissioners of any such park
25district shall annually levy a tax (in addition to the taxes

 

 

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1now authorized by law) upon all taxable property embraced in
2the district, at the rate which, when added to the employee
3contributions under this Article and applied to the fund
4created hereunder, shall be sufficient to provide for the
5purposes of this Article in accordance with the provisions
6thereof. Such tax shall be levied and collected with and in
7like manner as the general taxes of such district, and shall
8not in any event be included within any limitations of rate for
9general park purposes as now or hereafter provided by law, but
10shall be excluded therefrom and be in addition thereto.
11    The amount of such annual tax to and including the year
121977 shall not exceed .0275% of the value, as equalized or
13assessed by the Department of Revenue, of all taxable property
14embraced within the park district, provided that for the year
151978, and for each year thereafter, the amount of such annual
16tax shall be at a rate on the dollar of assessed valuation of
17all taxable property that will produce, when extended, for the
18year 1978 the following sum: 0.825 times the amount of employee
19contributions during the fiscal year 1976; for the year 1979,
200.85 times the amount of employee contributions during the
21fiscal year 1977; for the year 1980, 0.90 times the amount of
22employee contributions during the fiscal year 1978; for the
23year 1981, 0.95 times the amount of employee contributions
24during the fiscal year 1979; for the year 1982, 1.00 times the
25amount of employee contributions during the fiscal year 1980;
26for the year 1983, 1.05 times the amount of contributions made

 

 

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1on behalf of employees during the fiscal year 1981; and for the
2year 1984 and each year thereafter through the year 2013, an
3amount equal to 1.10 times the employee contributions during
4the fiscal year 2-years prior to the year for which the
5applicable tax is levied. For the year 2014, this calculation
6shall be 1.10 times the amount of employee contributions during
7the 12-month fiscal year ending June 30, 2012; and for the year
82015, this calculation shall be 1.70 1.10 times the amount of
9employee contributions during the 12-month fiscal year ending
10December 31, 2013. For the year 2016, this calculation shall be
11an amount equal to 1.70 times; for the years 2017 and 2018,
12this calculation shall be an amount equal to 2.30 times; and
13for the year 2019 and each year thereafter, until the Fund
14attains a funded ratio of at least 90% with the funded ratio
15being the ratio of the actuarial value of assets to the total
16actuarial liability, this calculation shall be an amount equal
17to 2.90 times the employee contributions during the fiscal year
182 years prior to the year for which the applicable tax is
19levied. Beginning in the fiscal year in which the Fund attains
20a funding ratio of at least 90%, the contribution shall be the
21lesser of (1) 2.90 times the employee contributions during the
22fiscal year 2 years prior to the year for which the applicable
23tax is levied, or (2) the amount needed to maintain a funded
24ratio of 90%.
25    In addition to the contributions required under the other
26provisions of this Article, by November 1 of the following

 

 

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1specified years, the employer shall contribute to the Fund the
2following specified amounts: $12,500,000 in 2015; $12,500,000
3in 2016; and $50,000,000 in 2019. The additional employer
4contributions required under this subsection (a) are intended
5to decrease the unfunded liability of the Fund and shall not
6decrease the amount of the employer contributions required
7under the other provisions of this Article. The additional
8employer contributions made under this subsection (a) may be
9used by the Fund for any of its lawful purposes.
10    (b) As used in this Section, the term "employee
11contributions" means contributions by employees for retirement
12annuity, spouse's annuity, automatic increase in retirement
13annuity, and death benefit.
14    In making required contributions under this Section, the
15employer may, in lieu of levying all or a portion of the tax
16required under this Section, deposit an amount not less than
17the required amount of employer contributions derived from any
18source legally available for that purpose.
19    (c) In respect to park district employees, other than
20policemen, who are transferred to the employment of a city by
21virtue of the "Exchange of Functions Act of 1957", the
22corporate authorities of the city shall annually levy a tax
23upon all taxable property embraced in the city, as equalized or
24assessed by the Department of Revenue, at such rate per cent of
25the value of such property as shall be sufficient, when added
26to the amounts deducted from the salary or wages of such

 

 

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1employees, to provide the benefits to which such employees,
2their dependents and beneficiaries are entitled under the
3provisions of this Article. The park district shall not levy a
4tax hereunder in respect to such employees. The tax levied by
5the city under authority of this Article shall be in addition
6to and exclusive of all other taxes authorized by law to be
7levied by the city for corporate, annuity fund or other
8purposes.
9    (d) All moneys accruing from the levy and collection of
10taxes, pursuant to this section, shall be remitted to the board
11by the employers as soon as they are received. Where a city has
12levied a tax pursuant to this Section in respect to park
13district employees transferred to the employment of a city, the
14treasurer of such city or other authorized officer shall remit
15the moneys accruing from the levy and collection of such tax as
16soon as they are received. Such remittances shall be made upon
17a pro rata share basis, whereby each employer shall pay to the
18board such employer's proportionate percentage of each payment
19of taxes received by it, according to the ratio which its tax
20levy for this fund bears to the total tax levy of such
21employer.
22    (e) Should any board of park commissioners included under
23the provisions of this Article be without authority to levy the
24tax provided in this Section the corporation authorities
25(meaning the supervisor, clerk and assessor) of the town or
26towns for which such board shall be the board of park

 

 

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1commissioners shall levy such tax.
2    (f) Employer contributions to the Fund may be reduced by
3$5,000,000 for calendar years 2004 and 2005.
4(Source: P.A. 97-973, eff. 8-16-12.)
 
5    (40 ILCS 5/12-150)  (from Ch. 108 1/2, par. 12-150)
6    Sec. 12-150. Contributions by employees for service
7annuity.
8    (a) From each payment of salary to a present employee
9beginning August 4, 1961, and prior to September 1, 1971, there
10shall be deducted as contributions for service annuity 6% of
11such payment. Beginning September 1, 1971, the deduction shall
12be 6 1/2% of salary. Beginning January 1, 2015, the deduction
13shall be 8% of salary. Beginning January 1, 2017, the deduction
14shall be 9% of salary. Beginning January 1, 2019, the deduction
15shall be 10% of salary. These contributions shall continue
16until the amounts thus deducted will provide an accumulation,
17at regular interest, at least equal to the amount that would be
18provided on such date from employee contributions, assuming
19regular interest to such date, if such employee had been
20contributing in accordance with the provisions of "The 1919
21Act" and this Article from the beginning of his service and the
22salary of the employee during his prior service was the same as
23it was on July 1, 1919, or on July 1, 1937 in the case of an
24employee of the board.
25    (b) From each payment of salary to a future entrant

 

 

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1beginning August 4, 1961, and prior to September 1, 1971, there
2shall be deducted as contributions for service annuity 6% of
3such payment. Beginning September 1, 1971, the deduction shall
4be 6 1/2% of salary. Beginning January 1, 1990, the deduction
5shall be 7% of salary. Beginning January 1, 2015, the deduction
6shall be 8% of salary. Beginning January 1, 2017, the deduction
7shall be 9% of salary. Beginning January 1, 2019, the deduction
8shall be 10% of salary. Beginning with the first pay period on
9or after the date when the funded ratio of the Fund is first
10determined to have reached the 90% funding goal, and each pay
11period thereafter for as long as the Fund maintains a funding
12ratio of 90% or more, employee contributions shall be 8.5% of
13salary for the service annuity. If the funding ratio falls
14below 90%, then employee contributions for the service annuity
15shall revert to 10% of salary until such time as the Fund once
16again is determined to have reached the 90% funding goal, at
17which time the 8.5% of salary employee contribution for the
18service annuity shall resume.
19    (c) For service rendered prior to August 4, 1961, the rates
20of contribution by employees for service annuity shall be as
21follows: July 1, 1919 to July 20, 1947, inclusive, 4% of
22salary; July 21, 1947 to August 3, 1961, inclusive, 5% of
23salary.
24    For the period from July 1, 1919, to August 4, 1961 such
25deductions for a present employee shall continue until such
26date as the amounts deducted will provide an accumulation at

 

 

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1least equal to that which would be provided on such date,
2assuming regular interest to such date, from deductions from
3salary of such employee if such employee had been under the
4provisions of "The 1919 Act" and this Article from the
5beginning of his service and the salary of such employee during
6his period of prior service was the same as it was on July 1,
71919 or on July 1, 1937 in the case of an employee of the board.
8    (d) Any employee shall have the option to contribute for
9service annuity an amount, together with regular interest,
10equal to the difference between the amount he had accumulated
11in the fund on June 30, 1947, from contributions at the rate of
124% of salary, together with regular interest, and the amount he
13would have accumulated, together with regular interest, if he
14had made contributions at the rate of 5% of salary. All such
15contributions shall be subject to salary limitations and other
16conditions in effect prior to July 1, 1947. Upon making such
17contribution the employer of such employee shall contribute in
18the ratio of 2 to 1 with such employee.
19(Source: P.A. 86-272.)
 
20    (40 ILCS 5/12-150.5 new)
21    Sec. 12-150.5. Use of contributions for health care
22subsidies. The Fund shall not use any contribution received by
23the Fund under this Article to provide a subsidy for the cost
24of participation in a retiree health care program.
 

 

 

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1    (40 ILCS 5/12-155.5 new)
2    Sec. 12-155.5. Funding obligation.
3    (a) Beginning January 1, 2015, the board of park
4commissioners shall be obligated to contribute to the Fund in
5each fiscal year an amount not less than the amount determined
6annually under subsection (a) of Section 12-149 of this Code.
7Notwithstanding any other provision of law, if the board of
8park commissioners fails to pay the amount guaranteed under
9this Section within 60 days after the date set forth by the
10retirement board, the retirement board may bring a mandamus
11action in the Circuit Court of Cook County to compel the board
12of park commissioners to make the required payment,
13irrespective of other remedies that may be available to the
14Fund. The obligations and causes of action created under this
15Section shall be in addition to any other right or remedy
16otherwise accorded by common law or State or federal law, and
17nothing in this Section shall be construed to deny, abrogate,
18impair, or waive any such common law or statutory right or
19remedy.
20    (b) In ordering the board of park commissioners to make the
21required payment, the court may order a reasonable payment
22schedule to enable the board of park commissioners to make the
23required payment without significantly imperiling the public
24health, safety, or welfare. Any payments required to be made by
25the board of park commissioners pursuant to this Section are
26expressly subordinated to the payment of the principal,

 

 

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1interest, and premium, if any, on any bonded debt obligation of
2the board of park commissioners, either currently outstanding
3or to be issued, for which the source of repayment or security
4thereon is derived directly or indirectly from tax revenues
5collected by the board of park commissioners. Payments on such
6bonded obligations include any statutory fund transfers or
7other prefunding mechanisms or formulas set forth, now or
8hereafter, in State law or bond indentures, into debt service
9funds or accounts of the board of park commissioners related to
10such bonded obligations, consistent with the payment schedules
11associated with such obligations.
 
12    (40 ILCS 5/12-195 new)
13    Sec. 12-195. Application and expiration of new benefit
14increases.
15    (a) As used in this Section, "new benefit increase" means
16an increase in the amount of any benefit provided under this
17Article, or an expansion of the conditions of eligibility for
18any benefit under this Article, that results from an amendment
19to this Code that takes effect after the effective date of this
20amendatory Act of the 98th General Assembly.
21    (b) Notwithstanding any other provision of this Code or any
22subsequent amendment to this Code, every new benefit increase
23is subject to this Section and shall be deemed to be granted
24only in conformance with and contingent upon compliance with
25the provisions of this Section.

 

 

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1    (c) The Public Act enacting a new benefit increase must
2identify and provide for payment to the Fund of additional
3funding at least sufficient to fund the resulting annual
4increase in cost to the Fund as it accrues.
5    Every new benefit increase is contingent upon the General
6Assembly providing the additional funding required under this
7subsection (c). The State Actuary shall analyze whether
8adequate additional funding has been provided for the new
9benefit increase. A new benefit increase created by a Public
10Act that does not include the additional funding required under
11this subsection (c) is null and void. If the State Actuary
12determines that the additional funding provided for a new
13benefit increase under this subsection (c) is or has become
14inadequate, it may so certify to the Governor and the State
15Comptroller and, in the absence of corrective action by the
16General Assembly, the new benefit increase shall expire at the
17end of the fiscal year in which the certification is made.
 
18    Section 90. The State Mandates Act is amended by adding
19Section 8.37 as follows:
 
20    (30 ILCS 805/8.37 new)
21    Sec. 8.37. Exempt mandate. Notwithstanding Sections 6 and 8
22of this Act, no reimbursement by the State is required for the
23implementation of any mandate created by this amendatory Act of
24the 98th General Assembly.
 

 

 

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1    Section 97. Inseverability and severability. The changes
2made by this amendatory Act are inseverable, except that
3Section 12-195 of the Illinois Pension Code is severable under
4Section 1.31 of the Statute on Statutes.