093_SB0498

 
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 1        AN ACT in relation to public employee benefits.

 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:

 4        Section 5.  The  Illinois  Pension  Code  is  amended  by
 5    changing Sections 7-141, 7-142, and 7-174 as follows:

 6        (40 ILCS 5/7-141) (from Ch. 108 1/2, par. 7-141)
 7        Sec.   7-141.    Retirement   annuities   -   Conditions.
 8    Retirement  annuities  shall  be  payable  as hereinafter set
 9    forth:
10        (a)  A participating employee who, regardless  of  cause,
11    is   separated   from   the   service  of  all  participating
12    municipalities    and    instrumentalities    thereof     and
13    participating   instrumentalities  shall  be  entitled  to  a
14    retirement annuity provided:
15             1.  He is at least age 55,  or  in  the  case  of  a
16        person  who  is  eligible  to have his annuity calculated
17        under Section 7-142.1, he is at least age 50;
18             2.  He is (i) an employee who was  employed  by  any
19        participating      municipality      or     participating
20        instrumentality which had not elected to exclude  persons
21        employed  in  positions normally requiring performance of
22        duty for less than 1000 hours per year or was employed in
23        a position normally requiring performance of duty for 600
24        hours or more per year prior  to  such  election  by  any
25        participating       municipality     or     participating
26        instrumentality included in and subject to  this  Article
27        on or before the effective date of this amendatory Act of
28        1981  which  made  such  election  and is not entitled to
29        receive earnings for employment in  a  position  normally
30        requiring  performance  of duty for 600 hours or more per
31        year   for    any    participating    municipality    and
 
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 1        instrumentalities      thereof      and     participating
 2        instrumentality; or (ii) an  employee  who  was  employed
 3        only  by  a  participating  municipality or participating
 4        instrumentality,  or  participating   municipalities   or
 5        participating  instrumentalities,  which  have elected to
 6        exclude   persons   in   positions   normally   requiring
 7        performance of duty for less than  1000  hours  per  year
 8        after  the  effective date of such exclusion or which are
 9        included under and  subject  to  the  Article  after  the
10        effective  date of this amendatory Act of 1981 and elects
11        to exclude persons in such positions, and is not entitled
12        to receive earnings for employment in a position normally
13        requiring performance of duty for 1000 hours or more  per
14        year    by   such   a   participating   municipality   or
15        participating instrumentality;
16             3.  The  amount   of   his   annuity,   before   the
17        application of paragraph (b) of Section 7-142 is at least
18        $10 per month;
19             4.  If  he  first  became  a  participating employee
20        after December 31, 1961, he has at least 5 years 8  years
21        of  service.  This service requirement shall not apply to
22        any participating employee, regardless  of  participation
23        date, if the General Assembly terminates the Fund.
24        (b)  Retirement annuities shall be payable:
25             1.  As provided in Section 7-119;
26             2.  Except  as  provided  in item 3, upon receipt by
27        the fund of a written application.   The  effective  date
28        may  be  not  more than one year prior to the date of the
29        receipt by the fund of the application;
30             3.  Upon attainment of age 70 1/2 if the member  (i)
31        is  no  longer in service, and (ii) is otherwise entitled
32        to an annuity under this Article;
33             4.  To the beneficiary of the deceased annuitant for
34        the unpaid amount accrued to date of death, if any.
 
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 1    (Source: P.A. 91-887, eff. 7-6-00.)

 2        (40 ILCS 5/7-142) (from Ch. 108 1/2, par. 7-142)
 3        Sec. 7-142.  Retirement annuities - Amount.
 4        (a)  The amount of a retirement annuity shall be the  sum
 5    of the following, determined in accordance with the actuarial
 6    tables in effect at the time of the grant of the annuity:
 7             1.  For  employees  with  5  or  8  or more years of
 8        service, an annuity computed pursuant to subparagraphs  a
 9        or b of this subparagraph 1, whichever is the higher, and
10        for  employees with less than 5 years 8 years of service,
11        the annuity computed pursuant to subparagraph a:
12                  a.  The monthly annuity which can  be  provided
13             from  the total accumulated normal, municipality and
14             prior service credits, as of the attained age of the
15             employee on the date  the  annuity  begins  provided
16             that  such annuity shall not exceed 75% of the final
17             rate of earnings of the employee.
18                  b.  (i) The monthly annuity  amount  determined
19             as  follows by multiplying (a) 1 2/3% for annuitants
20             with not more than 15 years or (b) 1  2/3%  for  the
21             first  15 years and 2% for each year in excess of 15
22             years for annuitants with more than 15 years by  the
23             number of years plus fractional years, prorated on a
24             basis  of months, of creditable service and multiply
25             the product thereof by the employee's final rate  of
26             earnings.
27                  (ii)  For  the  sole  purpose  of computing the
28             formula (and not for the purposes of the limitations
29             hereinafter stated) $125  shall  be  considered  the
30             final  rate of earnings in all cases where the final
31             rate of earnings is less than such amount.
32                  (iii)  The   monthly   annuity   computed    in
33             accordance  with  this  subparagraph  b,  shall  not
 
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 1             exceed  an  amount equal to 75% of the final rate of
 2             earnings.
 3                  (iv)  For employees who have less than 35 years
 4             of service, the annuity computed in accordance  with
 5             this  subparagraph  b  (as reduced by application of
 6             subparagraph (iii) above) shall be reduced by  0.25%
 7             thereof  (0.5%  if  service  was  terminated  before
 8             January  1, 1988) for each month or fraction thereof
 9             (1) that the employee's age is less than  60  years,
10             or  (2)  if  the  employee  has at least 30 years of
11             service credit, that the employee's  service  credit
12             is  less  than  35  years, whichever is less, on the
13             date the annuity begins.
14             2.  The annuity which can be provided from the total
15        accumulated additional credits as of the attained age  of
16        the employee on the date the annuity begins.
17        (b)  If  payment  of  an  annuity  begins  prior  to  the
18    earliest  age  at which the employee will become eligible for
19    an  old  age  insurance  benefit  under  the  Federal  Social
20    Security Act, he may elect that  the  annuity  payments  from
21    this fund shall exceed those payable after his attaining such
22    age  by  an  amount,  computed  as determined by rules of the
23    Board, but not in excess of  his  estimated  Social  Security
24    Benefit,  determined as of the effective date of the annuity,
25    provided that in no case shall  the  total  annuity  payments
26    made by this fund exceed in actuarial value the annuity which
27    would have been payable had no such election been made.
28        (c)  The  retirement annuity shall be increased each year
29    by 2%, not compounded, of  the  monthly  amount  of  annuity,
30    taking  into consideration any adjustment under paragraph (b)
31    of this  Section.  This  increase  shall  be  effective  each
32    January  1  and  computed  from  the  effective  date  of the
33    retirement annuity, the first increase  being  .167%  of  the
34    monthly  amount times the number of months from the effective
 
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 1    date to January 1. Beginning January 1, 1984 and  thereafter,
 2    the  retirement  annuity  shall be increased by 3% each year,
 3    not compounded. This increase  shall  not  be  applicable  to
 4    annuitants  who  are  not in service on or after September 8,
 5    1971.
 6    (Source: P.A. 91-357, eff. 7-29-99.)

 7        (40 ILCS 5/7-174) (from Ch. 108 1/2, par. 7-174)
 8        Sec. 7-174.  Board created.
 9        (a)  A board of 8 members shall  constitute  a  board  of
10    trustees  authorized  to  carry  out  the  provisions of this
11    Article.  Each trustee shall be a participating employee of a
12    participating municipality or  participating  instrumentality
13    or  an  annuitant of the Fund and no person shall be eligible
14    to become a trustee after January 1, 1979 who does  not  have
15    at least 5 years 8 years of creditable service.
16        (b)  The   board  shall  consist  of  representatives  of
17    various groups as follows:
18             1.  4 trustees shall be a chief  executive  officer,
19        chief  finance  officer,  or  other officer, executive or
20        department  head  of  a  participating  municipality   or
21        participating  instrumentality,  and  each  such  trustee
22        shall be designated as an executive trustee.
23             2.  3 trustees shall be employees of a participating
24        municipality  or  participating  instrumentality and each
25        such trustee shall be designated as an employee trustee.
26             3.  One trustee shall be an annuitant of  the  Fund,
27        who shall be  designated the annuitant trustee.
28        (c)  A  person  elected  as  a trustee shall qualify as a
29    trustee, after declaration by the board that he has been duly
30    elected, upon taking and subscribing  to  the  constitutional
31    oath of office and filing same in the office of the Fund.
32        (d)  The  term of office of each trustee shall begin upon
33    January 1 of the year following  the  year  in  which  he  is
 
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 1    elected  and shall continue for a period of 5 years and until
 2    a successor has been elected and qualified,  or  until  prior
 3    resignation, death, incapacity or disqualification.
 4        (e)  Any   elected  trustee  (other  than  the  annuitant
 5    trustee) shall be disqualified immediately  upon  termination
 6    of  employment  with  all  participating  municipalities  and
 7    instrumentalities  thereof or upon any change in status which
 8    removes any such trustee  from  all  employments  within  the
 9    group   he  represents.    The  annuitant  trustee  shall  be
10    disqualified upon termination of his or her annuity.
11        (f)  The trustees shall fill any vacancy in the board  by
12    appointment,  for  the  period  until  the  next  election of
13    trustees, or, if the remaining term is less than 2 years, for
14    the remainder of the term, and until his successor  has  been
15    elected and qualified.
16        (g)  Trustees shall serve without compensation, but shall
17    be   reimbursed  for  any  reasonable  expenses  incurred  in
18    attending meetings of the board and in performing  duties  on
19    behalf  of  the  Fund  and  for  the  amount  of any earnings
20    withheld  by  any  employing  municipality  or  participating
21    instrumentality because of attendance at any board meeting.
22        (h)  Each trustee other than the annuitant trustee  shall
23    be  entitled  to  one  vote on any and all actions before the
24    board;  the annuitant trustee is not entitled to vote on  any
25    matter.   At  least 4 concurring votes shall be necessary for
26    every decision or action by the board at any of its meetings.
27    No decision or action shall become effective unless presented
28    and so approved at a regular or duly called  special  meeting
29    of the board.
30    (Source: P.A. 89-136, eff. 7-14-95.)

31        Section  90.  The State Mandates Act is amended by adding
32    Section 8.27 as follows:
 
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 1        (30 ILCS 805/8.27 new)
 2        Sec. 8.27. Exempt mandate.   Notwithstanding  Sections  6
 3    and  8 of this Act, no reimbursement by the State is required
 4    for  the  implementation  of  any  mandate  created  by  this
 5    amendatory Act of the 93rd General Assembly.

 6        Section 99. Effective date.  This Act takes  effect  upon
 7    becoming law.