Illinois General Assembly

Previous General Assemblies

Full Text of SB1922  98th General Assembly

SB1922enr 98TH GENERAL ASSEMBLY

  
  
  

 


 
SB1922 EnrolledLRB098 09566 EFG 39712 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 1. Findings. It is the intention of the General
5Assembly to address an immediate funding crisis that threatens
6the solvency and sustainability of the public pension systems
7("Pension Funds") serving employees of the City of Chicago
8("City"). The Pension Funds include the Municipal Employees'
9Annuity and Benefit Fund of Chicago ("MEABF") and the Laborers'
10and Retirement Board Employees' Annuity Benefit Fund of Chicago
11("LABF"). The General Assembly observes that both the pension
12benefits provided by these Pension Funds and the City's
13obligation to contribute to these Pension Funds are established
14by State law. The General Assembly further observes that the
15City has continuously made the required contributions to these
16Pension Funds. After reviewing the condition of the Pension
17Funds, potential sources of funding, and assessing the need for
18reform thereof, the General Assembly finds and declares that:
19    1. The overall financial condition of these two City
20pension funds is so dire, even under the most optimistic
21assumptions, a balanced increase in funding, both from the City
22and from its employees, combined with a modification of annual
23adjustments for both current and future retirees, is necessary
24to stabilize and fund the pension funds.

 

 

SB1922 Enrolled- 2 -LRB098 09566 EFG 39712 b

1    2. While considering the combined unfunded liabilities of
2the MEABF and LABF, as well as other pension funding that
3ultimately relies on funds from the City's property tax base, a
4combination of modifications to employee contribution rates
5and annual adjustments and increased revenues are necessary to
6keep the City funds solvent. The City, even as a home rule
7unit, lacks the ability and flexibility to raise sufficient
8revenues to fund the current level of pension benefits of these
9Pension Funds while at the same time providing important public
10services essential to the public welfare.
11    3. The General Assembly has been advised by the City that
12the City cannot feasibly reduce its other expenses to address
13this serious problem without an unprecedented reduction in
14basic City services. Personnel costs constitute approximately
1575% of the non-discretionary appropriations for the City. As
16such, reductions in City expenditures to fund pensions would
17necessarily result in substantial cuts to City personnel,
18including in key services areas such as public safety,
19sanitation, and construction.
20    4. In sum, the crisis confronting the City and its Funds is
21so large and immediate that it cannot be addressed through
22increased funding alone, without modifying employee
23contribution rates and annual adjustments for current and
24future retirees. The consequences to the City of attempting to
25do so would be draconian. Accordingly, the General Assembly
26concludes that, unless reforms are enacted, the benefits

 

 

SB1922 Enrolled- 3 -LRB098 09566 EFG 39712 b

1currently promised by the Pension Funds are at risk.
 
2    Section 10. The Illinois Pension Code is amended by
3changing Sections 1-160, 8-137, 8-137.1, 8-173, 8-174,
411-134.1, 11-134.3, 11-169, and 11-170 and by adding Sections
58-173.1, 8-174.2, 11-169.1, and 11-179.1 as follows:
 
6    (40 ILCS 5/1-160)
7    (Text of Section before amendment by P.A. 98-622)
8    Sec. 1-160. Provisions applicable to new hires.
9    (a) The provisions of this Section apply to a person who,
10on or after January 1, 2011, first becomes a member or a
11participant under any reciprocal retirement system or pension
12fund established under this Code, other than a retirement
13system or pension fund established under Article 2, 3, 4, 5, 6,
1415 or 18 of this Code, notwithstanding any other provision of
15this Code to the contrary, but do not apply to any self-managed
16plan established under this Code, to any person with respect to
17service as a sheriff's law enforcement employee under Article
187, or to any participant of the retirement plan established
19under Section 22-101. Notwithstanding anything to the contrary
20in this Section, for purposes of this Section, a person who
21participated in a retirement system under Article 15 prior to
22January 1, 2011 shall be deemed a person who first became a
23member or participant prior to January 1, 2011 under any
24retirement system or pension fund subject to this Section. The

 

 

SB1922 Enrolled- 4 -LRB098 09566 EFG 39712 b

1changes made to this Section by Public Act 98-596 this
2amendatory Act of the 98th General Assembly are a clarification
3of existing law and are intended to be retroactive to the
4effective date of Public Act 96-889, notwithstanding the
5provisions of Section 1-103.1 of this Code.
6    (b) "Final average salary" means the average monthly (or
7annual) salary obtained by dividing the total salary or
8earnings calculated under the Article applicable to the member
9or participant during the 96 consecutive months (or 8
10consecutive years) of service within the last 120 months (or 10
11years) of service in which the total salary or earnings
12calculated under the applicable Article was the highest by the
13number of months (or years) of service in that period. For the
14purposes of a person who first becomes a member or participant
15of any retirement system or pension fund to which this Section
16applies on or after January 1, 2011, in this Code, "final
17average salary" shall be substituted for the following:
18        (1) In Article 7 (except for service as sheriff's law
19    enforcement employees), "final rate of earnings".
20        (2) In Articles 8, 9, 10, 11, and 12, "highest average
21    annual salary for any 4 consecutive years within the last
22    10 years of service immediately preceding the date of
23    withdrawal".
24        (3) In Article 13, "average final salary".
25        (4) In Article 14, "final average compensation".
26        (5) In Article 17, "average salary".

 

 

SB1922 Enrolled- 5 -LRB098 09566 EFG 39712 b

1        (6) In Section 22-207, "wages or salary received by him
2    at the date of retirement or discharge".
3    (b-5) Beginning on January 1, 2011, for all purposes under
4this Code (including without limitation the calculation of
5benefits and employee contributions), the annual earnings,
6salary, or wages (based on the plan year) of a member or
7participant to whom this Section applies shall not exceed
8$106,800; however, that amount shall annually thereafter be
9increased by the lesser of (i) 3% of that amount, including all
10previous adjustments, or (ii) one-half the annual unadjusted
11percentage increase (but not less than zero) in the consumer
12price index-u for the 12 months ending with the September
13preceding each November 1, including all previous adjustments.
14    For the purposes of this Section, "consumer price index-u"
15means the index published by the Bureau of Labor Statistics of
16the United States Department of Labor that measures the average
17change in prices of goods and services purchased by all urban
18consumers, United States city average, all items, 1982-84 =
19100. The new amount resulting from each annual adjustment shall
20be determined by the Public Pension Division of the Department
21of Insurance and made available to the boards of the retirement
22systems and pension funds by November 1 of each year.
23    (c) A member or participant is entitled to a retirement
24annuity upon written application if he or she has attained age
2567 and has at least 10 years of service credit and is otherwise
26eligible under the requirements of the applicable Article.

 

 

SB1922 Enrolled- 6 -LRB098 09566 EFG 39712 b

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

 

 

SB1922 Enrolled- 7 -LRB098 09566 EFG 39712 b

1retired member's or participant's retirement annuity at the
2date of death. In the case of the death of a member or
3participant who has not retired and who first became a member
4or participant on or after January 1, 2011, eligibility for a
5survivor's or widow's annuity shall be determined by the
6applicable Article of this Code. The initial benefit shall be
766 2/3% of the earned annuity without a reduction due to age. A
8child's annuity of an otherwise eligible child shall be in the
9amount prescribed under each Article if applicable. Any
10survivor's or widow's annuity shall be increased (1) on each
11January 1 occurring on or after the commencement of the annuity
12if the deceased member died while receiving a retirement
13annuity or (2) in other cases, on each January 1 occurring
14after the first anniversary of the commencement of the annuity.
15Each annual increase shall be calculated at 3% or one-half the
16annual unadjusted percentage increase (but not less than zero)
17in the consumer price index-u for the 12 months ending with the
18September preceding each November 1, whichever is less, of the
19originally granted survivor's annuity. If the annual
20unadjusted percentage change in the consumer price index-u for
21the 12 months ending with the September preceding each November
221 is zero or there is a decrease, then the annuity shall not be
23increased.
24    (g) The benefits in Section 14-110 apply only if the person
25is a State policeman, a fire fighter in the fire protection
26service of a department, or a security employee of the

 

 

SB1922 Enrolled- 8 -LRB098 09566 EFG 39712 b

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

 

 

SB1922 Enrolled- 9 -LRB098 09566 EFG 39712 b

1January 1, 2012 and is receiving a retirement annuity or
2retirement pension under that system or fund and accepts on a
3contractual basis a position to provide services to a
4governmental entity from which he or she has retired, then that
5person's annuity or retirement pension earned as an active
6employee of the employer shall be suspended during that
7contractual service. A person receiving an annuity or
8retirement pension under this Code shall notify the pension
9fund or retirement system from which he or she is receiving an
10annuity or retirement pension, as well as his or her
11contractual employer, of his or her retirement status before
12accepting contractual employment. A person who fails to submit
13such notification shall be guilty of a Class A misdemeanor and
14required to pay a fine of $1,000. Upon termination of that
15contractual employment, the person's retirement annuity or
16retirement pension payments shall resume and, if appropriate,
17be recalculated under the applicable provisions of this Code.
18    (i) (Blank).
19    (j) In the case of a conflict between the provisions of
20this Section and any other provision of this Code, the
21provisions of this Section shall control.
22(Source: P.A. 97-609, eff. 1-1-12; 98-92, eff. 7-16-13; 98-596,
23eff. 11-19-13; revised 1-23-14.)
 
24    (Text of Section after amendment by P.A. 98-622)
25    Sec. 1-160. Provisions applicable to new hires.

 

 

SB1922 Enrolled- 10 -LRB098 09566 EFG 39712 b

1    (a) The provisions of this Section apply to a person who,
2on or after January 1, 2011, first becomes a member or a
3participant under any reciprocal retirement system or pension
4fund established under this Code, other than a retirement
5system or pension fund established under Article 2, 3, 4, 5, 6,
615 or 18 of this Code, notwithstanding any other provision of
7this Code to the contrary, but do not apply to any self-managed
8plan established under this Code, to any person with respect to
9service as a sheriff's law enforcement employee under Article
107, or to any participant of the retirement plan established
11under Section 22-101. Notwithstanding anything to the contrary
12in this Section, for purposes of this Section, a person who
13participated in a retirement system under Article 15 prior to
14January 1, 2011 shall be deemed a person who first became a
15member or participant prior to January 1, 2011 under any
16retirement system or pension fund subject to this Section. The
17changes made to this Section by Public Act 98-596 this
18amendatory Act of the 98th General Assembly are a clarification
19of existing law and are intended to be retroactive to the
20effective date of Public Act 96-889, notwithstanding the
21provisions of Section 1-103.1 of this Code.
22    (b) "Final average salary" means the average monthly (or
23annual) salary obtained by dividing the total salary or
24earnings calculated under the Article applicable to the member
25or participant during the 96 consecutive months (or 8
26consecutive years) of service within the last 120 months (or 10

 

 

SB1922 Enrolled- 11 -LRB098 09566 EFG 39712 b

1years) of service in which the total salary or earnings
2calculated under the applicable Article was the highest by the
3number of months (or years) of service in that period. For the
4purposes of a person who first becomes a member or participant
5of any retirement system or pension fund to which this Section
6applies on or after January 1, 2011, in this Code, "final
7average salary" shall be substituted for the following:
8        (1) In Article 7 (except for service as sheriff's law
9    enforcement employees), "final rate of earnings".
10        (2) In Articles 8, 9, 10, 11, and 12, "highest average
11    annual salary for any 4 consecutive years within the last
12    10 years of service immediately preceding the date of
13    withdrawal".
14        (3) In Article 13, "average final salary".
15        (4) In Article 14, "final average compensation".
16        (5) In Article 17, "average salary".
17        (6) In Section 22-207, "wages or salary received by him
18    at the date of retirement or discharge".
19    (b-5) Beginning on January 1, 2011, for all purposes under
20this Code (including without limitation the calculation of
21benefits and employee contributions), the annual earnings,
22salary, or wages (based on the plan year) of a member or
23participant to whom this Section applies shall not exceed
24$106,800; however, that amount shall annually thereafter be
25increased by the lesser of (i) 3% of that amount, including all
26previous adjustments, or (ii) one-half the annual unadjusted

 

 

SB1922 Enrolled- 12 -LRB098 09566 EFG 39712 b

1percentage increase (but not less than zero) in the consumer
2price index-u for the 12 months ending with the September
3preceding each November 1, including all previous adjustments.
4    For the purposes of this Section, "consumer price index-u"
5means the index published by the Bureau of Labor Statistics of
6the United States Department of Labor that measures the average
7change in prices of goods and services purchased by all urban
8consumers, United States city average, all items, 1982-84 =
9100. The new amount resulting from each annual adjustment shall
10be determined by the Public Pension Division of the Department
11of Insurance and made available to the boards of the retirement
12systems and pension funds by November 1 of each year.
13    (c) A member or participant is entitled to a retirement
14annuity upon written application if he or she has attained age
1567 (beginning January 1, 2015, age 65 with respect to service
16under Article 8, 11, or 12 of this Code that is subject to this
17Section) and has at least 10 years of service credit and is
18otherwise eligible under the requirements of the applicable
19Article.
20    A member or participant who has attained age 62 (beginning
21January 1, 2015, age 60 with respect to service under Article
228, 11, or 12 of this Code that is subject to this Section) and
23has at least 10 years of service credit and is otherwise
24eligible under the requirements of the applicable Article may
25elect to receive the lower retirement annuity provided in
26subsection (d) of this Section.

 

 

SB1922 Enrolled- 13 -LRB098 09566 EFG 39712 b

1    (d) The retirement annuity of a member or participant who
2is retiring after attaining age 62 (beginning January 1, 2015,
3age 60 with respect to service under Article 8, 11, or 12 of
4this Code that is subject to this Section) with at least 10
5years of service credit shall be reduced by one-half of 1% for
6each full month that the member's age is under age 67
7(beginning January 1, 2015, age 65 with respect to service
8under Article 8, 11, or 12 of this Code that is subject to this
9Section).
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 8, 11, or 12
14of this Code that is subject to this Section) or the first
15anniversary (the second anniversary with respect to service
16under Article 8 or 11) of the annuity start date, whichever is
17later. Each annual increase shall be calculated at 3% or
18one-half the annual unadjusted percentage increase (but not
19less than zero) in the consumer price index-u for the 12 months
20ending with the September preceding each November 1, whichever
21is less, of the originally granted retirement annuity. If the
22annual unadjusted percentage change in the consumer price
23index-u for the 12 months ending with the September preceding
24each November 1 is zero or there is a decrease, then the
25annuity shall not be increased.
26    Notwithstanding any provision of this Section to the

 

 

SB1922 Enrolled- 14 -LRB098 09566 EFG 39712 b

1contrary, with respect to service under Article 8 or 11 of this
2Code that is subject to this Section, no annual increase under
3this subsection shall be paid or accrue to any person in year
42025. In all other years, the Fund shall continue to pay annual
5increases as provided in this Section.
6    Notwithstanding Section 1-103.1 of this Code, the changes
7in this amendatory Act of the 98th General Assembly are
8applicable without regard to whether the employee was in active
9service on or after the effective date of this amendatory Act
10of the 98th General Assembly.
11    (f) The initial survivor's or widow's annuity of an
12otherwise eligible survivor or widow of a retired member or
13participant who first became a member or participant on or
14after January 1, 2011 shall be in the amount of 66 2/3% of the
15retired member's or participant's retirement annuity at the
16date of death. In the case of the death of a member or
17participant who has not retired and who first became a member
18or participant on or after January 1, 2011, eligibility for a
19survivor's or widow's annuity shall be determined by the
20applicable Article of this Code. The initial benefit shall be
2166 2/3% of the earned annuity without a reduction due to age. A
22child's annuity of an otherwise eligible child shall be in the
23amount prescribed under each Article if applicable. Any
24survivor's or widow's annuity shall be increased (1) on each
25January 1 occurring on or after the commencement of the annuity
26if the deceased member died while receiving a retirement

 

 

SB1922 Enrolled- 15 -LRB098 09566 EFG 39712 b

1annuity or (2) in other cases, on each January 1 occurring
2after the first anniversary of the commencement of the annuity.
3Each annual increase shall be calculated at 3% or one-half the
4annual unadjusted percentage increase (but not less than zero)
5in the consumer price index-u for the 12 months ending with the
6September preceding each November 1, whichever is less, of the
7originally granted survivor's annuity. If the annual
8unadjusted percentage change in the consumer price index-u for
9the 12 months ending with the September preceding each November
101 is zero or there is a decrease, then the annuity shall not be
11increased.
12    (g) The benefits in Section 14-110 apply only if the person
13is a State policeman, a fire fighter in the fire protection
14service of a department, or a security employee of the
15Department of Corrections or the Department of Juvenile
16Justice, as those terms are defined in subsection (b) of
17Section 14-110. A person who meets the requirements of this
18Section is entitled to an annuity calculated under the
19provisions of Section 14-110, in lieu of the regular or minimum
20retirement annuity, only if the person has withdrawn from
21service with not less than 20 years of eligible creditable
22service and has attained age 60, regardless of whether the
23attainment of age 60 occurs while the person is still in
24service.
25    (h) If a person who first becomes a member or a participant
26of a retirement system or pension fund subject to this Section

 

 

SB1922 Enrolled- 16 -LRB098 09566 EFG 39712 b

1on or after January 1, 2011 is receiving a retirement annuity
2or retirement pension under that system or fund and becomes a
3member or participant under any other system or fund created by
4this Code and is employed on a full-time basis, except for
5those members or participants exempted from the provisions of
6this Section under subsection (a) of this Section, then the
7person's retirement annuity or retirement pension under that
8system or fund shall be suspended during that employment. Upon
9termination of that employment, the person's retirement
10annuity or retirement pension payments shall resume and be
11recalculated if recalculation is provided for under the
12applicable Article of this Code.
13    If a person who first becomes a member of a retirement
14system or pension fund subject to this Section on or after
15January 1, 2012 and is receiving a retirement annuity or
16retirement pension under that system or fund and accepts on a
17contractual basis a position to provide services to a
18governmental entity from which he or she has retired, then that
19person's annuity or retirement pension earned as an active
20employee of the employer shall be suspended during that
21contractual service. A person receiving an annuity or
22retirement pension under this Code shall notify the pension
23fund or retirement system from which he or she is receiving an
24annuity or retirement pension, as well as his or her
25contractual employer, of his or her retirement status before
26accepting contractual employment. A person who fails to submit

 

 

SB1922 Enrolled- 17 -LRB098 09566 EFG 39712 b

1such notification shall be guilty of a Class A misdemeanor and
2required to pay a fine of $1,000. Upon termination of that
3contractual employment, the person's retirement annuity or
4retirement pension payments shall resume and, if appropriate,
5be recalculated under the applicable provisions of this Code.
6    (i) (Blank).
7    (j) In the case of a conflict between the provisions of
8this Section and any other provision of this Code, the
9provisions of this Section shall control.
10(Source: P.A. 97-609, eff. 1-1-12; 98-92, eff. 7-16-13; 98-596,
11eff. 11-19-13; 98-622, eff. 6-1-14; revised 1-23-14.)
 
12    (40 ILCS 5/8-137)   (from Ch. 108 1/2, par. 8-137)
13    Sec. 8-137. Automatic increase in annuity.
14    (a) An employee who retired or retires from service after
15December 31, 1959 and before January 1, 1987, having attained
16age 60 or more, shall, in January of the year after the year in
17which the first anniversary of retirement occurs, have the
18amount of his then fixed and payable monthly annuity increased
19by 1 1/2%, and such first fixed annuity as granted at
20retirement increased by a further 1 1/2% in January of each
21year thereafter. Beginning with January of the year 1972, such
22increases shall be at the rate of 2% in lieu of the aforesaid
23specified 1 1/2%, and beginning with January of the year 1984
24such increases shall be at the rate of 3%. Beginning in January
25of 1999, such increases shall be at the rate of 3% of the

 

 

SB1922 Enrolled- 18 -LRB098 09566 EFG 39712 b

1currently payable monthly annuity, including any increases
2previously granted under this Article. An employee who retires
3on annuity after December 31, 1959 and before January 1, 1987,
4but before age 60, shall receive such increases beginning in
5January of the year after the year in which he attains age 60.
6    An employee who retires from service on or after January 1,
71987 shall, upon the first annuity payment date following the
8first anniversary of the date of retirement, or upon the first
9annuity payment date following attainment of age 60, whichever
10occurs later, have his then fixed and payable monthly annuity
11increased by 3%, and such annuity shall be increased by an
12additional 3% of the original fixed annuity on the same date
13each year thereafter. Beginning in January of 1999, such
14increases shall be at the rate of 3% of the currently payable
15monthly annuity, including any increases previously granted
16under this Article.
17    (a-5) Notwithstanding the provisions of subsection (a),
18upon the first annuity payment date following (1) the third
19anniversary of retirement, (2) the attainment of age 53, or (3)
20January 1, 2002, whichever occurs latest, the monthly annuity
21of an employee who retires on annuity prior to the attainment
22of age 60 and has not received an increase under subsection (a)
23shall be increased by 3%, and the annuity shall be increased by
24an additional 3% of the current payable monthly annuity,
25including any increases previously granted under this Article,
26on the same date each year thereafter. The increases provided

 

 

SB1922 Enrolled- 19 -LRB098 09566 EFG 39712 b

1under this subsection are in lieu of the increases provided in
2subsection (a).
3    (a-6) Notwithstanding the provisions of subsections (a)
4and (a-5), for all calendar years following the year in which
5this amendatory Act of the 93rd General Assembly takes effect,
6an increase in annuity under this Section that would otherwise
7take effect at any time during the year shall instead take
8effect in January of that year.
9    (b) Subsections (a), (a-5), and (a-6) are not applicable to
10an employee retiring and receiving a term annuity, as herein
11defined, nor to any otherwise qualified employee who retires
12before he makes employee contributions (at the 1/2 of 1% rate
13as provided in this Act) for this additional annuity for not
14less than the equivalent of one full year. Such employee,
15however, shall make arrangement to pay to the fund a balance of
16such 1/2 of 1% contributions, based on his final salary, as
17will bring such 1/2 of 1% contributions, computed without
18interest, to the equivalent of or completion of one year's
19contributions.
20    Beginning with January, 1960, each employee shall
21contribute by means of salary deductions 1/2 of 1% of each
22salary payment, concurrently with and in addition to the
23employee contributions otherwise made for annuity purposes.
24    Each such additional contribution shall be credited to an
25account in the prior service annuity reserve, to be used,
26together with city contributions, to defray the cost of the

 

 

SB1922 Enrolled- 20 -LRB098 09566 EFG 39712 b

1specified annuity increments. Any balance in such account at
2the beginning of each calendar year shall be credited with
3interest at the rate of 3% per annum.
4    Such additional employee contributions are not refundable,
5except to an employee who withdraws and applies for refund
6under this Article, and in cases where a term annuity becomes
7payable. In such cases his contributions shall be refunded,
8without interest, and charged to such account in the prior
9service annuity reserve.
10    (b-5) Notwithstanding any provision of this Section to the
11contrary:
12        (1) A person retiring after the effective date of this
13    amendatory Act of the 98th General Assembly shall not be
14    eligible for an annual increase under this Section until
15    one full year after the date on which such annual increase
16    otherwise would take effect under this Section.
17        (2) Except for persons eligible under subdivision (4)
18    of this subsection for a minimum annual increase, there
19    shall be no annual increase under this Section in years
20    2017, 2019, and 2025.
21        (3) In all other years, beginning January 1, 2015, the
22    Fund shall pay an annual increase to persons eligible to
23    receive one under this Section, in lieu of any other annual
24    increase provided under this Section (but subject to the
25    minimum increase under subdivision (4) of this subsection,
26    if applicable) in an amount equal to the lesser of 3% or

 

 

SB1922 Enrolled- 21 -LRB098 09566 EFG 39712 b

1    one-half the annual unadjusted percentage increase (but
2    not less than zero) in the consumer price index-u for the
3    12 months ending with the September preceding each November
4    1 of the person's last annual annuity amount prior to
5    January 1, 2015, or if the person was not yet receiving an
6    annuity on that date, then this calculation shall be based
7    on his or her originally granted annual annuity amount.
8        For the purposes of this Section, "consumer price
9    index-u" means the index published by the Bureau of Labor
10    Statistics of the United States Department of Labor that
11    measures the average change in prices of goods and services
12    purchased by all urban consumers, United States city
13    average, all items, 1982-84 = 100.
14        (4) A person is eligible under this subdivision (4) to
15    receive a minimum annual increase in a particular year if:
16    (i) the person is otherwise eligible to receive an annual
17    increase under subdivision (3) of this subsection, and (ii)
18    the annual amount of the annuity payable at the time of the
19    increase, including all increases previously received, is
20    less than $22,000.
21        Beginning January 1, 2015, for a person who is eligible
22    under this subdivision (4) to receive a minimum annual
23    increase in the year 2017, 2019, or 2025, the annual
24    increase shall be 1% of the person's last annual annuity
25    amount prior to January 1, 2015, or if the person was not
26    yet receiving an annuity on that date, then 1% of his or

 

 

SB1922 Enrolled- 22 -LRB098 09566 EFG 39712 b

1    her originally granted annual annuity amount.
2        Beginning January 1, 2015, for any other year in which
3    a person is eligible under this subdivision (4) to receive
4    a minimum annual increase, the annual increase shall be as
5    specified under subdivision (3), but not less than 1% of
6    the person's last annual annuity amount prior to January 1,
7    2015 or, if the person was not yet receiving an annuity on
8    that date, then not less than 1% of his or her originally
9    granted annual annuity amount.
10    For the purposes of Section 1-103.1, this subsection (b-5)
11is applicable without regard to whether the employee was in
12active service on or after the effective date of this
13amendatory Act of the 98th General Assembly. This subsection
14(b-5) applies to any former employee who on or after the
15effective date of this amendatory Act of the 98th General
16Assembly is receiving a retirement annuity and is eligible for
17an automatic annual increase under this Section.
18(Source: P.A. 92-599, eff. 6-28-02; 92-609, eff. 7-1-02;
1993-654, eff. 1-16-04.)
 
20    (40 ILCS 5/8-137.1)  (from Ch. 108 1/2, par. 8-137.1)
21    Sec. 8-137.1. Automatic increases in annuity for certain
22heretofore retired participants.
23    (a) A retired municipal employee who (i) (a) is receiving
24annuity based on a service credit of 20 or more years
25regardless of age at retirement or based on a service credit of

 

 

SB1922 Enrolled- 23 -LRB098 09566 EFG 39712 b

115 or more years with retirement at age 55 or over, and (ii)
2(b) does not qualify for the automatic increases in annuity
3provided for in Section 8-137 of this Article, and (iii) (c)
4elects to make a contribution to the Fund at a time and manner
5prescribed by the Retirement Board, of a sum equal to 1% of the
6amount of final monthly salary times the number of full years
7of service on which the annuity was based in those cases where
8the annuity was computed on the money purchase formula and in
9those cases in which the annuity was computed under the minimum
10annuity formula provisions of this Article a sum equal to 1% of
11the average monthly salary on which the annuity was based times
12such number of full years of service, shall have his original
13fixed and payable monthly amount of annuity increased in
14January of the year following the year in which he attains the
15age of 65 years, if such age of 65 years is attained in the year
161969 or later, by an amount equal to 1-1/2%, and by an equal
17additional 1-1/2% in January of each year thereafter. Beginning
18with January of the year 1972, such increases shall be at the
19rate of 2% in lieu of the aforesaid specified 1 1/2%, and
20beginning January of the year 1984 such increases shall be at
21the rate of 3%. Beginning in January of 1999, such increases
22shall be at the rate of 3% of the currently payable monthly
23annuity, including any increases previously granted under this
24Article.
25    Whenever the retired municipal employee receiving annuity
26has attained the age of 66 or more in 1969, he shall have such

 

 

SB1922 Enrolled- 24 -LRB098 09566 EFG 39712 b

1annuity increased in January, 1970 by an amount equal to 1-1/2%
2multiplied by the number equal to the number of months of
3January elapsing from and including January of the year
4immediately following the year he attained the age of 65 if
5retired at or before age 65, or from and including January of
6the year immediately following the year of retirement if
7retired at an age greater than 65, to and including January,
81970, and by an equal additional 1-1/2% in January of each year
9thereafter. Beginning with January of the year 1972, such
10increases shall be at the rate of 2% in lieu of the aforesaid
11specified 1 1/2%, and beginning January of the year 1984 such
12increases shall be at the rate of 3%. Beginning in January of
131999, such increases shall be at the rate of 3% of the
14currently payable monthly annuity, including any increases
15previously granted under this Article.
16    (b) To defray the annual cost of such increases, the annual
17interest income of the Fund, accruing from investments held by
18the Fund, exclusive of gains or losses on sales or exchanges of
19assets during the year, over and above 4% a year, shall be used
20to the extent necessary and available to finance the cost of
21such increases for the following year, and such amount shall be
22transferred as of the end of each year, beginning with the year
231969, to a Fund account designated as the Supplementary Payment
24Reserve from the Investment and Interest Reserve set forth in
25Section 8-221. The sums contributed by annuitants as provided
26for in this Section shall also be placed in the aforesaid

 

 

SB1922 Enrolled- 25 -LRB098 09566 EFG 39712 b

1Supplementary Payment Reserve and shall be applied and used for
2the purposes of such Fund account, together with the aforesaid
3interest.
4    In the event the monies in the Supplementary Payment
5Reserve in any year arising from: (1) the available interest
6income as defined hereinbefore and accruing in the preceding
7year above 4% a year and (2) the contributions by retired
8persons, as set forth hereinbefore, are insufficient to make
9the total payments to all persons estimated to be entitled to
10the annuity increases specified hereinbefore, then (3) any
11interest earnings over 4% a year beginning with the year 1969
12which were not previously used to finance such increases and
13which were transferred to the Prior Service Annuity Reserve may
14be used to the extent necessary and available to provide
15sufficient funds to finance such increases for the current
16year, and such sums shall be transferred from the Prior Service
17Annuity Reserve.
18    In the event the total monies available in the
19Supplementary Payment Reserve from the preceding indicated
20sources are insufficient to make the total payments to all
21persons entitled to such increases for the year, a
22proportionate amount computed as the ratio of the monies
23available to the total of the total payments for that year
24shall be paid to each person for that year.
25    The Fund shall be obligated for the payment of the
26increases in annuity as provided for in this Section only to

 

 

SB1922 Enrolled- 26 -LRB098 09566 EFG 39712 b

1the extent that the assets for such purpose, as specified
2herein, are available.
3    (b-5) Notwithstanding any provision of this Section to the
4contrary:
5        (1) Except for persons eligible under subdivision (3)
6    of this subsection for a minimum annual increase, there
7    shall be no annual increase under this Section in years
8    2017, 2019, and 2025.
9        (2) In all other years, beginning January 1, 2015, the
10    Fund shall pay an annual increase to persons eligible to
11    receive one under this Section, in lieu of any other annual
12    increase provided under this Section (but subject to the
13    minimum increase under subdivision (3) of this subsection,
14    if applicable) in an amount equal to the lesser of 3% or
15    one-half the annual unadjusted percentage increase (but
16    not less than zero) in the consumer price index-u for the
17    12 months ending with the September preceding each November
18    1 of the person's last annual annuity amount prior to
19    January 1, 2015.
20        For the purposes of this Section, "consumer price
21    index-u" means the index published by the Bureau of Labor
22    Statistics of the United States Department of Labor that
23    measures the average change in prices of goods and services
24    purchased by all urban consumers, United States city
25    average, all items, 1982-84 = 100.
26        (3) A person is eligible under this subdivision (3) to

 

 

SB1922 Enrolled- 27 -LRB098 09566 EFG 39712 b

1    receive a minimum annual increase in a particular year if:
2    (i) the person is otherwise eligible to receive an annual
3    increase under subdivision (2) of this subsection, and (ii)
4    the annual amount of the annuity payable at the time of the
5    increase, including all increases previously received, is
6    less than $22,000.
7        Beginning January 1, 2015, for a person who is eligible
8    under this subdivision (3) to receive a minimum annual
9    increase in the year 2017, 2019, or 2025, the annual
10    increase shall be 1% of the person's last annual annuity
11    amount prior to January 1, 2015.
12        Beginning January 1, 2015, for any other year in which
13    a person is eligible under this subdivision (3) to receive
14    a minimum annual increase, the annual increase shall be as
15    specified under subdivision (2), but not less than 1% of
16    the person's last annual annuity amount prior to January 1,
17    2015.
18    For the purposes of Section 1-103.1, this subsection (b-5)
19is applicable without regard to whether the employee was in
20active service on or after the effective date of this
21amendatory Act of the 98th General Assembly. This subsection
22(b-5) applies to any former employee who on or after the
23effective date of this amendatory Act of the 98th General
24Assembly is receiving a retirement annuity and is eligible for
25an automatic annual increase under this Section.
26(Source: P.A. 90-766, eff. 8-14-98.)
 

 

 

SB1922 Enrolled- 28 -LRB098 09566 EFG 39712 b

1    (40 ILCS 5/8-173)  (from Ch. 108 1/2, par. 8-173)
2    Sec. 8-173. Financing; tax levy.
3    (a) Except as provided in subsection (f) of this Section,
4the city council of the city shall levy a tax annually upon all
5taxable property in the city at a rate that will produce a sum
6which, when added to the amounts deducted from the salaries of
7the employees or otherwise contributed by them and the amounts
8deposited under subsection (f), will be sufficient for the
9requirements of this Article, but which when extended will
10produce an amount not to exceed the greater of the following:
11(a) the sum obtained by the levy of a tax of .1093% of the
12value, as equalized or assessed by the Department of Revenue,
13of all taxable property within such city, or (b) the sum of
14$12,000,000. However any city in which a Fund has been
15established and in operation under this Article for more than 3
16years prior to 1970 shall levy for the year 1970 a tax at a rate
17on the dollar of assessed valuation of all taxable property
18that will produce, when extended, an amount not to exceed 1.2
19times the total amount of contributions made by employees to
20the Fund for annuity purposes in the calendar year 1968, and,
21for the year 1971 and 1972 such levy that will produce, when
22extended, an amount not to exceed 1.3 times the total amount of
23contributions made by employees to the Fund for annuity
24purposes in the calendar years 1969 and 1970, respectively; and
25for the year 1973 an amount not to exceed 1.365 times such

 

 

SB1922 Enrolled- 29 -LRB098 09566 EFG 39712 b

1total amount of contributions made by employees for annuity
2purposes in the calendar year 1971; and for the year 1974 an
3amount not to exceed 1.430 times such total amount of
4contributions made by employees for annuity purposes in the
5calendar year 1972; and for the year 1975 an amount not to
6exceed 1.495 times such total amount of contributions made by
7employees for annuity purposes in the calendar year 1973; and
8for the year 1976 an amount not to exceed 1.560 times such
9total amount of contributions made by employees for annuity
10purposes in the calendar year 1974; and for the year 1977 an
11amount not to exceed 1.625 times such total amount of
12contributions made by employees for annuity purposes in the
13calendar year 1975; and for the year 1978 and each year
14thereafter through levy year 2014, such levy as will produce,
15when extended, an amount not to exceed the total amount of
16contributions made by or on behalf of employees to the Fund for
17annuity purposes in the calendar year 2 years prior to the year
18for which the annual applicable tax is levied, multiplied by
191.690 for the years 1978 through 1998 and by 1.250 for the year
201999 and for each year thereafter through levy year 2014.
21Beginning in levy year 2015, and in each year thereafter, the
22levy shall not exceed the amount of the city's total required
23contribution to the Fund for the next payment year, as
24determined under subsection (a-5). For the purposes of this
25Section, the payment year is the year immediately following the
26levy year.

 

 

SB1922 Enrolled- 30 -LRB098 09566 EFG 39712 b

1    The tax shall be levied and collected in like manner with
2the general taxes of the city, and shall be exclusive of and in
3addition to the amount of tax the city is now or may hereafter
4be authorized to levy for general purposes under any laws which
5may limit the amount of tax which the city may levy for general
6purposes. The county clerk of the county in which the city is
7located, in reducing tax levies under the provisions of any Act
8concerning the levy and extension of taxes, shall not consider
9the tax herein provided for as a part of the general tax levy
10for city purposes, and shall not include the same within any
11limitation of the percent of the assessed valuation upon which
12taxes are required to be extended for such city.
13    Revenues derived from such tax shall be paid to the city
14treasurer of the city as collected and held by the city
15treasurer him for the benefit of the fund.
16    If the payments on account of taxes are insufficient during
17any year to meet the requirements of this Article, the city may
18issue tax anticipation warrants against the current tax levy.
19    The city may continue to use other lawfully available funds
20in lieu of all or part of the levy, as provided under
21subsection (f) of this Section.
22    (a-5) Beginning in payment year 2016, the city's required
23annual contribution to the Fund shall be the lesser of:
24        (i) (I) for payment years 2016 through 2055, the annual
25    amount determined by the Fund to be equal to the greater of
26    $0, or the sum of (1) the city's portion of the projected

 

 

SB1922 Enrolled- 31 -LRB098 09566 EFG 39712 b

1    normal cost for that fiscal year, plus (2) an amount
2    determined on a level percentage of applicable employee
3    payroll basis (reflecting any limits on individual
4    participants' pay that apply for benefit and contribution
5    purposes under this plan) that is sufficient to bring the
6    total actuarial assets of the Fund up to 90% of the total
7    actuarial liabilities of the Fund by the end of 2055. (II)
8    For payment years after 2055, the annual amount determined
9    by the Fund to be equal to the amount, if any, needed to
10    bring the total actuarial assets of the Fund up to 90% of
11    the total actuarial liabilities of the Fund as of the end
12    of the year. In making the determinations under both (I)
13    and (II), the actuarial calculations shall be determined
14    under the entry age normal actuarial cost method, and any
15    actuarial gains or losses from investment return incurred
16    in a fiscal year shall be recognized in equal annual
17    amounts over the 5-year period following the fiscal year;
18    or
19        (ii) for payment year 2016, 1.85 times the total amount
20    of contributions made by or on behalf of employees to the
21    Fund for annuity purposes in the calendar year 2013; for
22    payment year 2017, 2.15 times the total amount of
23    contributions made by or on behalf of employees to the Fund
24    for annuity purposes in the calendar year 2014; for payment
25    year 2018, 2.45 times the total amount of contributions
26    made by or on behalf of employees to the Fund for annuity

 

 

SB1922 Enrolled- 32 -LRB098 09566 EFG 39712 b

1    purposes in the calendar year 2015; for payment year 2019,
2    2.75 times the total amount of contributions made by or on
3    behalf of employees to the Fund for annuity purposes in the
4    calendar year 2016; for payment year 2020, 3.05 times the
5    total amount of contributions made by or on behalf of
6    employees to the Fund for annuity purposes in the calendar
7    year 2017.
8However, beginning in the earlier of payment year 2021 or the
9first payment year in which the annual contribution amount
10calculated under subdivision (i) is less than the contribution
11amount calculated under subdivision (ii), and in each year
12thereafter, the city's required annual contribution to the Fund
13shall be determined under subdivision (i).
14    The city's required annual contribution to the Fund may be
15paid with any available funds and shall be paid by the city to
16the city treasurer. The city treasurer shall collect and hold
17those funds for the benefit of the Fund.
18    (a-10) If the city fails to transmit to the Fund
19contributions required of it under this Article by December
2031st of the year in which such contributions are due, the Fund
21may, after giving notice to the city, certify to the State
22Comptroller the amounts of the delinquent payments, and the
23Comptroller must, beginning in payment year 2016, deduct and
24deposit into the Fund the certified amounts or a portion of
25those amounts from the following proportions of grants of State
26funds to the city:

 

 

SB1922 Enrolled- 33 -LRB098 09566 EFG 39712 b

1        (1) in payment year 2016, one-third of the total amount
2    of any grants of State funds to the city;
3        (2) in payment year 2017, two-thirds of the total
4    amount of any grants of State funds to the city; and
5        (3) in payment year 2018 and each payment year
6    thereafter, the total amount of any grants of State funds
7    to the city.
8    The State Comptroller may not deduct from any grants of
9State funds to the city more than the amount of delinquent
10payments certified to the State Comptroller by the Fund.
11    (b) On or before July 1 January 10, annually, the board
12shall certify to notify the city council the annual amounts
13required under of the requirements of this Article, for which
14that the tax herein provided may shall be levied for the
15following that current year. The board shall compute the
16amounts necessary to be credited to the reserves established
17and maintained as herein provided, and shall make an annual
18determination of the amount of the required city contributions,
19and certify the results thereof to the city council.
20    (c) In respect to employees of the city who are transferred
21to the employment of a park district by virtue of the "Exchange
22of Functions Act of 1957", the corporate authorities of the
23park district shall annually levy a tax upon all the taxable
24property in the park district at such rate per cent of the
25value of such property, as equalized or assessed by the
26Department of Revenue, as shall be sufficient, when added to

 

 

SB1922 Enrolled- 34 -LRB098 09566 EFG 39712 b

1the amounts deducted from their salaries and otherwise
2contributed by them to provide the benefits to which they and
3their dependents and beneficiaries are entitled under this
4Article. The city shall not levy a tax hereunder in respect to
5such employees.
6    The tax so levied by the park district shall be in addition
7to and exclusive of all other taxes authorized to be levied by
8the park district for corporate, annuity fund, or other
9purposes. The county clerk of the county in which the park
10district is located, in reducing any tax levied under the
11provisions of any act concerning the levy and extension of
12taxes shall not consider such tax as part of the general tax
13levy for park purposes, and shall not include the same in any
14limitation of the per cent of the assessed valuation upon which
15taxes are required to be extended for the park district. The
16proceeds of the tax levied by the park district, upon receipt
17by the district, shall be immediately paid over to the city
18treasurer of the city for the uses and purposes of the fund.
19    The various sums to be contributed by the city and park
20district and allocated for the purposes of this Article, and
21any interest to be contributed by the city, shall be derived
22from the revenue from the taxes authorized in this Section or
23otherwise as expressly provided in this Section.
24    If it is not possible or practicable for the city to make
25contributions for age and service annuity and widow's annuity
26at the same time that employee contributions are made for such

 

 

SB1922 Enrolled- 35 -LRB098 09566 EFG 39712 b

1purposes, such city contributions shall be construed to be due
2and payable as of the end of the fiscal year for which the tax
3is levied and shall accrue thereafter with interest at the
4effective rate until paid.
5    (d) With respect to employees whose wages are funded as
6participants under the Comprehensive Employment and Training
7Act of 1973, as amended (P.L. 93-203, 87 Stat. 839, P.L.
893-567, 88 Stat. 1845), hereinafter referred to as CETA,
9subsequent to October 1, 1978, and in instances where the board
10has elected to establish a manpower program reserve, the board
11shall compute the amounts necessary to be credited to the
12manpower program reserves established and maintained as herein
13provided, and shall make a periodic determination of the amount
14of required contributions from the City to the reserve to be
15reimbursed by the federal government in accordance with rules
16and regulations established by the Secretary of the United
17States Department of Labor or his designee, and certify the
18results thereof to the City Council. Any such amounts shall
19become a credit to the City and will be used to reduce the
20amount which the City would otherwise contribute during
21succeeding years for all employees.
22    (e) In lieu of establishing a manpower program reserve with
23respect to employees whose wages are funded as participants
24under the Comprehensive Employment and Training Act of 1973, as
25authorized by subsection (d), the board may elect to establish
26a special municipality contribution rate for all such

 

 

SB1922 Enrolled- 36 -LRB098 09566 EFG 39712 b

1employees. If this option is elected, the City shall contribute
2to the Fund from federal funds provided under the Comprehensive
3Employment and Training Act program at the special rate so
4established and such contributions shall become a credit to the
5City and be used to reduce the amount which the City would
6otherwise contribute during succeeding years for all
7employees.
8    (f) In lieu of levying all or a portion of the tax required
9under this Section in any year, the city may deposit with the
10city treasurer no later than March 1 of that year for the
11benefit of the fund, to be held in accordance with this
12Article, an amount that, together with the taxes levied under
13this Section for that year, is not less than the amount of the
14city contributions for that year as certified by the board to
15the city council. The deposit may be derived from any source
16legally available for that purpose, including, but not limited
17to, the proceeds of city borrowings. The making of a deposit
18shall satisfy fully the requirements of this Section for that
19year to the extent of the amounts so deposited. Amounts
20deposited under this subsection may be used by the fund for any
21of the purposes for which the proceeds of the tax levied by the
22city under this Section may be used, including the payment of
23any amount that is otherwise required by this Article to be
24paid from the proceeds of that tax.
25(Source: P.A. 90-31, eff. 6-27-97; 90-655, eff. 7-30-98;
2690-766, eff. 8-14-98.)
 

 

 

SB1922 Enrolled- 37 -LRB098 09566 EFG 39712 b

1    (40 ILCS 5/8-173.1 new)
2    Sec. 8-173.1. Funding Obligation.
3    (a) Beginning January 1, 2015, the city shall be obligated
4to contribute to the Fund in each fiscal year an amount not
5less than the amount determined annually under subsection (a-5)
6of Section 8-173 of this Code. Notwithstanding any other
7provision of law, if the city fails to pay the amount
8guaranteed under this Section on or before December 31 of the
9year in which such amount is due, the retirement board may
10bring a mandamus action in the Circuit Court of Cook County to
11compel the city to make the required payment, irrespective of
12other remedies that may be available to the Fund. The
13obligations and causes of action created under this Section
14shall be in addition to any other right or remedy otherwise
15accorded by common law or State or federal law, and nothing in
16this Section shall be construed to deny, abrogate, impair, or
17waive any such common law or statutory right or remedy.
18    (b) In ordering the city to make the required payment, the
19court may order a reasonable payment schedule to enable the
20city to make the required payment without significantly
21imperiling the public health, safety, or welfare. Any payments
22required to be made by the city pursuant to this Section are
23expressly subordinated to the payment of the principal,
24interest, premium, if any, and other payments on or related to
25any bonded debt obligation of the city, either currently

 

 

SB1922 Enrolled- 38 -LRB098 09566 EFG 39712 b

1outstanding or to be issued, for which the source of repayment
2or security thereon is derived directly or indirectly from any
3funds collected or received by the city or collected or
4received on behalf of the city. Payments on such bonded
5obligations include any statutory fund transfers or other
6prefunding mechanisms or formulas set forth, now or hereafter,
7in State law, city ordinance, or bond indentures, into debt
8service funds or accounts of the city related to such bonded
9obligations, consistent with the payment schedules associated
10with such obligations.
 
11    (40 ILCS 5/8-174)   (from Ch. 108 1/2, par. 8-174)
12    Sec. 8-174. Contributions for age and service annuities for
13present employees and future entrants.
14    (a) Beginning on the effective date and prior to July 1,
151947, 3 1/4%; and beginning on July 1, 1947 and prior to July
161, 1953, 5%; and beginning July 1, 1953, and prior to January
171, 1972, 6%; and beginning January 1, 1972, 6.5%; and beginning
18January 1, 2015, and prior to January 1, 2016, 7.0%; and
19beginning January 1, 2016, and prior to January 1, 2017, 7.5%;
20and, beginning January 1, 2017, and prior to January 1, 2018,
218.0%; and beginning January 1, 2018, and prior to January 1,
222019, 8.5%; and beginning January 1, 2019, and thereafter, 9.0%
236-1/2% of each payment of the salary of each present employee
24and future entrant shall be contributed to the fund as a
25deduction from salary for age and service annuity; provided,

 

 

SB1922 Enrolled- 39 -LRB098 09566 EFG 39712 b

1however, that beginning with the first pay period on or after
2the date when the funded ratio of the Fund is first determined
3to have reached the 90% funding goal set forth in subsection
4(a-5) of Section 8-173, and each pay period thereafter for as
5long as the Fund maintains a funding ratio of 90% or more,
6employee contributions shall be 7.75% of salary for the age and
7service annuity. If the funding ratio falls below 90%, then
8employee contributions for the age and service annuity shall
9revert to 9.0% of salary until such time as the Fund once again
10is determined to have reached a funding ratio of at least 90%,
11at which time employee contributions of 7.75% shall resume for
12the age and service annuity.
13    Notwithstanding Section 1-103.1, the changes to this
14Section made by this amendatory Act of the 98th General
15Assembly apply regardless of whether the employee was in active
16service on or after the effective date of this amendatory Act.
17    Such deductions beginning on the effective date and prior
18to July 1, 1947 shall be made for a future entrant while he is
19in the service until he attains age 65 and for a present
20employee while he is in the service until the amount so
21deducted from his salary with the amount deducted from his
22salary or paid by him according to law to any municipal pension
23fund in force on the effective date with interest on both such
24amounts at 4% per annum equals the sum that would have been to
25his credit from sums deducted from his salary if deductions at
26the rate herein stated had been made during his entire service

 

 

SB1922 Enrolled- 40 -LRB098 09566 EFG 39712 b

1until he attained age 65 with interest at 4% per annum for the
2period subsequent to his attainment of age 65. Such deductions
3beginning July 1, 1947 shall be made and continued for
4employees while in the service.
5    (b) Concurrently with each employee contribution beginning
6on the effective date and prior to July 1, 1947 the city shall
7contribute 5 3/4%; and beginning on July 1, 1947 and prior to
8July 1, 1953, 7%; and beginning July 1, 1953, 6% of each
9payment of such salary until the employee attains age 65.
10Notwithstanding any provision of this subsection (b) to the
11contrary, the city shall not make a contribution for any credit
12established by an employee under subsection (b) of Section
138-138.4.
14    (c) Each employee contribution made prior to the date the
15age and service annuity for an employee is fixed and each
16corresponding city contribution shall be credited to the
17employee and allocated to the account of the employee for whose
18benefit it is made.
19(Source: P.A. 93-654, eff. 1-16-04.)
 
20    (40 ILCS 5/8-174.2 new)
21    Sec. 8-174.2. Use of contributions for health care
22subsidies. Except as may be required pursuant to Sections
238-164.1 and 8-164.2 of this Code, the Fund shall not use any
24contribution received by the Fund under this Article to provide
25a subsidy for the cost of participation in a retiree health

 

 

SB1922 Enrolled- 41 -LRB098 09566 EFG 39712 b

1care program.
 
2    (40 ILCS 5/11-134.1)   (from Ch. 108 1/2, par. 11-134.1)
3    Sec. 11-134.1. Automatic increase in annuity.
4    (a) An employee who retired or retires from service after
5December 31, 1963, and before January 1, 1987, having attained
6age 60 or more, shall, in the month of January of the year
7following the year in which the first anniversary of retirement
8occurs, have the amount of his then fixed and payable monthly
9annuity increased by 1 1/2%, and such first fixed annuity as
10granted at retirement increased by a further 1 1/2% in January
11of each year thereafter. Beginning with January of the year
121972, such increases shall be at the rate of 2% in lieu of the
13aforesaid specified 1 1/2%. Beginning January, 1984, such
14increases shall be at the rate of 3%. Beginning in January of
151999, such increases shall be at the rate of 3% of the
16currently payable monthly annuity, including any increases
17previously granted under this Article. An employee who retires
18on annuity after December 31, 1963 and before January 1, 1987,
19but prior to age 60, shall receive such increases beginning
20with January of the year immediately following the year in
21which he attains the age of 60 years.
22    An employee who retires from service on or after January 1,
231987 shall, upon the first annuity payment date following the
24first anniversary of the date of retirement, or upon the first
25annuity payment date following attainment of age 60, whichever

 

 

SB1922 Enrolled- 42 -LRB098 09566 EFG 39712 b

1occurs later, have his then fixed and payable monthly annuity
2increased by 3%, and such annuity shall be increased by an
3additional 3% of the original fixed annuity on the same date
4each year thereafter. Beginning in January of 1999, such
5increases shall be at the rate of 3% of the currently payable
6monthly annuity, including any increases previously granted
7under this Article.
8    (a-5) Notwithstanding the provisions of subsection (a),
9upon the first annuity payment date following (1) the third
10anniversary of retirement, (2) the attainment of age 53, or (3)
11January 1, 2002, whichever occurs latest, the monthly annuity
12of an employee who retires on annuity prior to the attainment
13of age 60 and has not received an increase under subsection (a)
14shall be increased by 3%, and the annuity shall be increased by
15an additional 3% of the current payable monthly annuity,
16including any increases previously granted under this Article,
17on the same date each year thereafter. The increases provided
18under this subsection are in lieu of the increases provided in
19subsection (a).
20    (a-6) Notwithstanding the provisions of subsections (a)
21and (a-5), for all calendar years following the year in which
22this amendatory Act of the 93rd General Assembly takes effect,
23an increase in annuity under this Section that would otherwise
24take effect at any time during the year shall instead take
25effect in January of that year.
26    (b) Subsections (a), (a-5), and (a-6) are not applicable to

 

 

SB1922 Enrolled- 43 -LRB098 09566 EFG 39712 b

1an employee retiring and receiving a term annuity, as defined
2in this Article, nor to any otherwise qualified employee who
3retires before he shall have made employee contributions (at
4the 1/2 of 1% rate as hereinafter provided) for the purposes of
5this additional annuity for not less than the equivalent of one
6full year. Such employee, however, shall make arrangement to
7pay to the fund a balance of such 1/2 of 1% contributions,
8based on his final salary, as will bring such 1/2 of 1%
9contributions, computed without interest, to the equivalent of
10or completion of one year's contributions.
11    Beginning with the month of January, 1964, each employee
12shall contribute by means of salary deductions 1/2 of 1% of
13each salary payment, concurrently with and in addition to the
14employee contributions otherwise made for annuity purposes.
15    Each such additional employee contribution shall be
16credited to an account in the prior service annuity reserve, to
17be used, together with city contributions, to defray the cost
18of the specified annuity increments. Any balance as of the
19beginning of each calendar year existing in such account shall
20be credited with interest at the rate of 3% per annum.
21    Such employee contributions shall not be subject to refund,
22except to an employee who resigns or is discharged and applies
23for refund under this Article, and also in cases where a term
24annuity becomes payable.
25    In such cases the employee contributions shall be refunded
26him, without interest, and charged to the aforementioned

 

 

SB1922 Enrolled- 44 -LRB098 09566 EFG 39712 b

1account in the prior service annuity reserve.
2    (b-5) Notwithstanding any provision of this Section to the
3contrary:
4        (1) A person retiring after the effective date of this
5    amendatory Act of the 98th General Assembly shall not be
6    eligible for an annual increase under this Section until
7    one full year after the date on which such annual increase
8    otherwise would take effect under this Section.
9        (2) Except for persons eligible under subdivision (4)
10    of this subsection for a minimum annual increase, there
11    shall be no annual increase under this Section in years
12    2017, 2019, and 2025.
13        (3) In all other years, beginning January 1, 2015, the
14    Fund shall pay an annual increase to persons eligible to
15    receive one under this Section, in lieu of any other annual
16    increase provided under this Section (but subject to the
17    minimum increase under subdivision (4) of this subsection,
18    if applicable) in an amount equal to the lesser of 3% or
19    one-half the annual unadjusted percentage increase (but
20    not less than zero) in the consumer price index-u for the
21    12 months ending with the September preceding each November
22    1 of the person's last annual annuity amount prior to
23    January 1, 2015, or if the person was not yet receiving an
24    annuity on that date, then this calculation shall be based
25    on his or her originally granted annual annuity amount.
26        For the purposes of this Section, "consumer price

 

 

SB1922 Enrolled- 45 -LRB098 09566 EFG 39712 b

1    index-u" means the index published by the Bureau of Labor
2    Statistics of the United States Department of Labor that
3    measures the average change in prices of goods and services
4    purchased by all urban consumers, United States city
5    average, all items, 1982-84 = 100.
6        (4) A person is eligible under this subdivision (4) to
7    receive a minimum annual increase in a particular year if:
8    (i) the person is otherwise eligible to receive an annual
9    increase under subdivision (3) of this subsection, and (ii)
10    the annual amount of the annuity payable at the time of the
11    increase, including all increases previously received, is
12    less than $22,000.
13        Beginning January 1, 2015, for a person who is eligible
14    under this subdivision (4) to receive a minimum annual
15    increase in the year 2017, 2019, or 2025, the annual
16    increase shall be 1% of the person's last annual annuity
17    amount prior to January 1, 2015, or if the person was not
18    yet receiving an annuity on that date, then 1% of his or
19    her originally granted annual annuity amount.
20        Beginning January 1, 2015, for any other year in which
21    a person is eligible under this subdivision (4) to receive
22    a minimum annual increase, the annual increase shall be as
23    specified under subdivision (3), but not less than 1% of
24    the person's last annual annuity amount prior to January 1,
25    2015 or, if the person was not yet receiving an annuity on
26    that date, then not less than 1% of his or her originally

 

 

SB1922 Enrolled- 46 -LRB098 09566 EFG 39712 b

1    granted annual annuity amount.
2    For the purposes of Section 1-103.1, this subsection (b-5)
3is applicable without regard to whether the employee was in
4active service on or after the effective date of this
5amendatory Act of the 98th General Assembly. This subsection
6(b-5) applies to any former employee who on or after the
7effective date of this amendatory Act of the 98th General
8Assembly is receiving a retirement annuity and is eligible for
9an automatic annual increase under this Section.
10(Source: P.A. 92-599, eff. 6-28-02; 92-609, eff. 7-1-02;
1193-654, eff. 1-16-04.)
 
12    (40 ILCS 5/11-134.3)  (from Ch. 108 1/2, par. 11-134.3)
13    Sec. 11-134.3. Automatic increases in annuity for certain
14heretofore retired participants.
15    (a) A retired employee who (i) (a) is receiving annuity
16based on a service credit of 20 or more years regardless of age
17at retirement or based on a service credit of 15 or more years
18with retirement at age 55 or over, and (ii) (b) does not
19qualify for the automatic increases in annuity provided for in
20Section 11-134.1 of this Article, and (iii) (c) elects to make
21a contribution to the Fund at a time and manner prescribed by
22the Retirement Board, of a sum equal to 1% of the amount of
23final monthly salary times the number of full years of service
24on which the annuity was based in those cases where the annuity
25was computed on the money purchase formula, and in those cases

 

 

SB1922 Enrolled- 47 -LRB098 09566 EFG 39712 b

1in which the annuity was computed under the minimum annuity
2formula provisions of this Article a sum equal to 1% of the
3average monthly salary on which the annuity was based times
4such number of full years of service, shall have his original
5fixed and payable monthly amount of annuity increased in
6January of the year following the year in which he attains the
7age of 65 years, if such age of 65 years is attained in the year
81969 or later, by an amount equal to 1 1/2%, and by an equal
9additional 1 1/2% in January of each year thereafter. Beginning
10with January of the year 1972, such increases shall be at the
11rate of 2% in lieu of the aforesaid specified 1 1/2%. Beginning
12January, 1984, such increases shall be at the rate of 3%.
13Beginning in January of 1999, such increases shall be at the
14rate of 3% of the currently payable monthly annuity, including
15any increases previously granted under this Article.
16    In those cases in which the retired employee receiving
17annuity has attained the age of 66 or more years in the year
181969, he shall have such annuity increased in January of the
19year 1970 by an amount equal to 1 1/2% multiplied by the number
20equal to the number of months of January elapsing from and
21including January of the year immediately following the year he
22attained the age of 65 years if retired at or prior to age 65,
23or from and including January of the year immediately following
24the year of retirement if retired at an age greater than 65
25years, to and including January of the year 1970, and by an
26equal additional 1 1/2% in January of each year thereafter.

 

 

SB1922 Enrolled- 48 -LRB098 09566 EFG 39712 b

1Beginning with January of the year 1972, such increases shall
2be at the rate of 2% in lieu of the aforesaid specified 1 1/2%.
3Beginning January, 1984, such increases shall be at the rate of
43%. Beginning in January of 1999, such increases shall be at
5the rate of 3% of the currently payable monthly annuity,
6including any increases previously granted under this Article.
7    (b) To defray the annual cost of such increases, the annual
8interest income of the Fund, accruing from investments held by
9the Fund, exclusive of gains or losses on sales or exchanges of
10assets during the year, over and above 4% a year, shall be used
11to the extent necessary and available to finance the cost of
12such increases for the following year, and such amount shall be
13transferred as of the end of each year, beginning with the year
141969, to a Fund account designated as the Supplementary Payment
15Reserve from the Investment and Interest Reserve set forth in
16Sec. 11-210. The sums contributed by annuitants as provided for
17in this Section shall also be placed in the aforesaid
18Supplementary Payment Reserve and shall be applied for and used
19for the purposes of such Fund account, together with the
20aforesaid interest.
21    In the event the monies in the Supplementary Payment
22Reserve in any year arising from: (1) the available interest
23income as defined hereinbefore and accruing in the preceding
24year above 4% a year and (2) the contributions by retired
25persons, as set forth hereinbefore, are insufficient to make
26the total payments to all persons estimated to be entitled to

 

 

SB1922 Enrolled- 49 -LRB098 09566 EFG 39712 b

1the annuity increases specified hereinbefore, then (3) any
2interest earnings over 4% a year beginning with the year 1969
3which were not previously used to finance such increases and
4which were transferred to the Prior Service Annuity Reserve may
5be used to the extent necessary and available to provide
6sufficient funds to finance such increases for the current
7year, and such sums shall be transferred from the Prior Service
8Annuity Reserve.
9    In the event the total monies available in the
10Supplementary Payment Reserve from the preceding indicated
11sources are insufficient to make the total payments to all
12persons entitled to such increases for the year, a
13proportionate amount computed as the ratio of the monies
14available to the total of the total payments for that year
15shall be paid to each person for that year.
16    The Fund shall be obligated for the payment of the
17increases in annuity as provided for in this Section only to
18the extent that the assets for such purpose, as specified
19herein, are available.
20    (b-5) Notwithstanding any provision of this Section to the
21contrary:
22        (1) Except for persons eligible under subdivision (3)
23    of this subsection for a minimum annual increase, there
24    shall be no annual increase under this Section in years
25    2017, 2019, and 2025.
26        (2) In all other years, beginning January 1, 2015, the

 

 

SB1922 Enrolled- 50 -LRB098 09566 EFG 39712 b

1    Fund shall pay an annual increase to persons eligible to
2    receive one under this Section, in lieu of any other annual
3    increase provided under this Section (but subject to the
4    minimum increase under subdivision (3) of this subsection,
5    if applicable) in an amount equal to the lesser of 3% or
6    one-half the annual unadjusted percentage increase (but
7    not less than zero) in the consumer price index-u for the
8    12 months ending with the September preceding each November
9    1 of the person's last annual annuity amount prior to
10    January 1, 2015.
11        For the purposes of this Section, "consumer price
12    index-u" means the index published by the Bureau of Labor
13    Statistics of the United States Department of Labor that
14    measures the average change in prices of goods and services
15    purchased by all urban consumers, United States city
16    average, all items, 1982-84 = 100.
17        (3) A person is eligible under this subdivision (3) to
18    receive a minimum annual increase in a particular year if:
19    (i) the person is otherwise eligible to receive an annual
20    increase under subdivision (2) of this subsection, and (ii)
21    the annual amount of the annuity payable at the time of the
22    increase, including all increases previously received, is
23    less than $22,000.
24        Beginning January 1, 2015, for a person who is eligible
25    under this subdivision (3) to receive a minimum annual
26    increase in the year 2017, 2019, or 2025, the annual

 

 

SB1922 Enrolled- 51 -LRB098 09566 EFG 39712 b

1    increase shall be 1% of the person's last annual annuity
2    amount prior to January 1, 2015.
3        Beginning January 1, 2015, for any other year in which
4    a person is eligible under this subdivision (3) to receive
5    a minimum annual increase, the annual increase shall be as
6    specified under subdivision (2), but not less than 1% of
7    the person's last annual annuity amount prior to January 1,
8    2015.
9    For the purposes of Section 1-103.1, this subsection (b-5)
10is applicable without regard to whether the employee was in
11active service on or after the effective date of this
12amendatory Act of the 98th General Assembly. This subsection
13(b-5) applies to any former employee who on or after the
14effective date of this amendatory Act of the 98th General
15Assembly is receiving a retirement annuity and is eligible for
16an automatic annual increase under this Section.
17(Source: P.A. 90-766, eff. 8-14-98.)
 
18    (40 ILCS 5/11-169)  (from Ch. 108 1/2, par. 11-169)
19    Sec. 11-169. Financing; tax levy.
20    (a) Except as provided in subsection (f) of this Section,
21the city council of the city shall levy a tax annually upon all
22taxable property in the city at the rate that will produce a
23sum which, when added to the amounts deducted from the salaries
24of the employees or otherwise contributed by them and the
25amounts deposited under subsection (f), will be sufficient for

 

 

SB1922 Enrolled- 52 -LRB098 09566 EFG 39712 b

1the requirements of this Article. For the years prior to the
2year 1950 the tax rate shall be as provided for under "The 1935
3Act". Beginning with the year 1950 to and including the year
41969 such tax shall be not more than .036% annually of the
5value, as equalized or assessed by the Department of Revenue,
6of all taxable property within such city. Beginning with the
7year 1970 and each year thereafter through levy year 2014, the
8city shall levy a tax annually at a rate on the dollar of the
9value, as equalized or assessed by the Department of Revenue of
10all taxable property within such city that will produce, when
11extended, not to exceed an amount equal to the total amount of
12contributions by the employees to the fund made in the calendar
13year 2 years prior to the year for which the annual applicable
14tax is levied, multiplied by 1.1 for the years 1970, 1971 and
151972; 1.145 for the year 1973; 1.19 for the year 1974; 1.235
16for the year 1975; 1.280 for the year 1976; 1.325 for the year
171977; 1.370 for the years 1978 through 1998; and 1.000 for the
18year 1999 and for each year thereafter through levy year 2014.
19Beginning in levy year 2015, and in each year thereafter, the
20levy shall not exceed the amount of the city's total required
21contribution to the Fund for the next payment year, as
22determined under subsection (a-5). For the purposes of this
23Section, the payment year is the year immediately following the
24levy year.
25    The tax shall be levied and collected in like manner with
26the general taxes of the city, and shall be exclusive of and in

 

 

SB1922 Enrolled- 53 -LRB098 09566 EFG 39712 b

1addition to the amount of tax the city is now or may hereafter
2be authorized to levy for general purposes under any laws which
3may limit the amount of tax which the city may levy for general
4purposes. The county clerk of the county in which the city is
5located, in reducing tax levies under the provisions of any Act
6concerning the levy and extension of taxes, shall not consider
7the tax herein provided for as a part of the general tax levy
8for city purposes, and shall not include the same within any
9limitation of the per cent of the assessed valuation upon which
10taxes are required to be extended for such city.
11    Revenues derived from such tax shall be paid to the city
12treasurer of the city as collected and held by the city
13treasurer him for the benefit of the fund.
14    If the payments on account of taxes are insufficient during
15any year to meet the requirements of this Article, the city may
16issue tax anticipation warrants against the current tax levy.
17    The city may continue to use other lawfully available funds
18in lieu of all or part of the levy, as provided under
19subsection (f) of this Section.
20    (a-5) Beginning in payment year 2016, the city's required
21annual contribution to the Fund shall be the lesser of:
22        (i) (I) for payment years 2016 through 2055, the annual
23    amount determined by the Fund to be equal to the greater of
24    $0, or the sum of (1) the City's portion of the projected
25    normal cost for that fiscal year, plus (2) an amount
26    determined on a level percentage of applicable employee

 

 

SB1922 Enrolled- 54 -LRB098 09566 EFG 39712 b

1    payroll basis (reflecting any limits on individual
2    participants' pay that apply for benefit and contribution
3    purposes under this plan) that is sufficient to bring the
4    total actuarial assets of the Fund up to 90% of the total
5    actuarial liabilities of the Fund by the end of 2055. (II)
6    For payment years after 2055, the annual amount determined
7    by the Fund to be equal to the amount, if any, needed to
8    bring the total actuarial assets of the Fund up to 90% of
9    the total actuarial liabilities of the Fund as of the end
10    of the year. In making the determinations under both (I)
11    and (II), the actuarial calculations shall be determined
12    under the entry age normal actuarial cost method, and any
13    actuarial gains or losses from investment return incurred
14    in a fiscal year shall be recognized in equal annual
15    amounts over the 5-year period following the fiscal year;
16    or
17        (ii) for payment year 2016, 1.60 times the total amount
18    of contributions made by or on behalf of employees to the
19    Fund for annuity purposes in the calendar year 2013; for
20    payment year 2017, 1.90 times the total amount of
21    contributions made by or on behalf of employees to the Fund
22    for annuity purposes in the calendar year 2014; for payment
23    year 2018, 2.20 times the total amount of contributions
24    made by or on behalf of employees to the Fund for annuity
25    purposes in the calendar year 2015; for payment year 2019,
26    2.50 times the total amount of contributions made by or on

 

 

SB1922 Enrolled- 55 -LRB098 09566 EFG 39712 b

1    behalf of employees to the Fund for annuity purposes in the
2    calendar year 2016; for payment year 2020, 2.80 times the
3    total amount of contributions made by or on behalf of
4    employees to the Fund for annuity purposes in the calendar
5    year 2017.
6However, beginning in the earlier of payment year 2021 or the
7first payment year in which the annual contribution amount
8calculated under subdivision (i) is less than the contribution
9amount calculated under subdivision (ii), and in each year
10thereafter, the city's required annual contribution to the Fund
11shall be determined under subdivision (i).
12    The city's required annual contribution to the Fund may be
13paid with any available funds and shall be paid by the city to
14the city treasurer. The city treasurer shall collect and hold
15those funds for the benefit of the Fund.
16    (a-10) If the city fails to transmit to the Fund
17contributions required of it under this Article by December
1831st of the year in which such contributions are due, the Fund
19may, after giving notice to the city, certify to the State
20Comptroller the amounts of the delinquent payments, and the
21Comptroller must, beginning in payment year 2016, deduct and
22deposit into the Fund the certified amounts or a portion of
23those amounts from the following proportions of grants of State
24funds to the city:
25        (1) in payment year 2016, one-third of the total amount
26    of any grants of State funds to the city;

 

 

SB1922 Enrolled- 56 -LRB098 09566 EFG 39712 b

1        (2) in payment year 2017, two-thirds of the total
2    amount of any grants of State funds to the city; and
3        (3) in payment year 2018 and each payment year
4    thereafter, the total amount of any grants of State funds
5    to the city.
6    The State Comptroller may not deduct from any grants of
7State funds to the city more than the amount of delinquent
8payments certified to the State Comptroller by the Fund.
9    (b) On or before July 1 January 10, annually, the board
10shall certify to notify the city council the annual amounts
11required under of the requirement of this Article, for which
12that the tax herein provided may shall be levied for the
13following that current year. The board shall compute the
14amounts necessary for the purposes of this fund to be credited
15to the reserves established and maintained as herein provided,
16and shall make an annual determination of the amount of the
17required city contributions; and certify the results thereof to
18the city council.
19    (c) In respect to employees of the city who are transferred
20to the employment of a park district by virtue of "Exchange of
21Functions Act of 1957" the corporate authorities of the park
22district shall annually levy a tax upon all the taxable
23property in the park district at such rate per cent of the
24value of such property, as equalized or assessed by the
25Department of Revenue, as shall be sufficient, when added to
26the amounts deducted from their salaries and otherwise

 

 

SB1922 Enrolled- 57 -LRB098 09566 EFG 39712 b

1contributed by them, to provide the benefits to which they and
2their dependents and beneficiaries are entitled under this
3Article. The city shall not levy a tax hereunder in respect to
4such employees.
5    The tax so levied by the park district shall be in addition
6to and exclusive of all other taxes authorized to be levied by
7the park district for corporate, annuity fund, or other
8purposes. The county clerk of the county in which the park
9district is located, in reducing any tax levied under the
10provisions of any Act concerning the levy and extension of
11taxes shall not consider such tax as part of the general tax
12levy for park purposes, and shall not include the same in any
13limitation of the per cent of the assessed valuation upon which
14taxes are required to be extended for the park district. The
15proceeds of the tax levied by the park district, upon receipt
16by the district, shall be immediately paid over to the city
17treasurer of the city for the uses and purposes of the fund.
18    The various sums to be contributed by the city and
19allocated for the purposes of this Article, and any interest to
20be contributed by the city, shall be taken from the revenue
21derived from the taxes authorized in this Section, and no money
22of such city derived from any source other than the levy and
23collection of those taxes or the sale of tax anticipation
24warrants in accordance with the provisions of this Article
25shall be used to provide revenue for this Article, except as
26expressly provided in this Section.

 

 

SB1922 Enrolled- 58 -LRB098 09566 EFG 39712 b

1    If it is not possible for the city to make contributions
2for age and service annuity and widow's annuity concurrently
3with the employee's contributions made for such purposes, such
4city shall make such contributions as soon as possible and
5practicable thereafter with interest thereon at the effective
6rate to the time they shall be made.
7    (d) With respect to employees whose wages are funded as
8participants under the Comprehensive Employment and Training
9Act of 1973, as amended (P.L. 93-203, 87 Stat. 839, P.L.
1093-567, 88 Stat. 1845), hereinafter referred to as CETA,
11subsequent to October 1, 1978, and in instances where the board
12has elected to establish a manpower program reserve, the board
13shall compute the amounts necessary to be credited to the
14manpower program reserves established and maintained as herein
15provided, and shall make a periodic determination of the amount
16of required contributions from the City to the reserve to be
17reimbursed by the federal government in accordance with rules
18and regulations established by the Secretary of the United
19States Department of Labor or his designee, and certify the
20results thereof to the City Council. Any such amounts shall
21become a credit to the City and will be used to reduce the
22amount which the City would otherwise contribute during
23succeeding years for all employees.
24    (e) In lieu of establishing a manpower program reserve with
25respect to employees whose wages are funded as participants
26under the Comprehensive Employment and Training Act of 1973, as

 

 

SB1922 Enrolled- 59 -LRB098 09566 EFG 39712 b

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

 

 

SB1922 Enrolled- 60 -LRB098 09566 EFG 39712 b

1(Source: P.A. 90-31, eff. 6-27-97; 90-766, eff. 8-14-98.)
 
2    (40 ILCS 5/11-169.1 new)
3    Sec. 11-169.1. Funding Obligation.
4    (a) Beginning January 1, 2015, the city shall be obligated
5to contribute to the Fund in each fiscal year an amount not
6less than the amount determined annually under subsection (a-5)
7of Section 11-169 of this Code. Notwithstanding any other
8provision of law, if the city fails to pay the amount
9guaranteed under this Section on or before December 31 of the
10year in which such amount is due, the retirement board may
11bring a mandamus action in the Circuit Court of Cook County to
12compel the city to make the required payment, irrespective of
13other remedies that may be available to the Fund. The
14obligations and causes of action created under this Section
15shall be in addition to any other right or remedy otherwise
16accorded by common law or State or federal law, and nothing in
17this Section shall be construed to deny, abrogate, impair, or
18waive any such common law or statutory right or remedy.
19    (b) In ordering the city to make the required payment, the
20court may order a reasonable payment schedule to enable the
21city to make the required payment without significantly
22imperiling the public health, safety, or welfare. Any payments
23required to be made by the city pursuant to this Section are
24expressly subordinated to the payment of the principal,
25interest, premium, if any, and other payments on or related to

 

 

SB1922 Enrolled- 61 -LRB098 09566 EFG 39712 b

1any bonded debt obligation of the city, either currently
2outstanding or to be issued, for which the source of repayment
3or security thereon is derived directly or indirectly from any
4funds collected or received by the city or collected or
5received on behalf of the city. Payments on such bonded
6obligations include any statutory fund transfers or other
7prefunding mechanisms or formulas set forth, now or hereafter,
8in State law, city ordinance, or bond indentures, into debt
9service funds or accounts of the city related to such bonded
10obligations, consistent with the payment schedules associated
11with such obligations.
 
12    (40 ILCS 5/11-170)  (from Ch. 108 1/2, par. 11-170)
13    Sec. 11-170. Contributions for age and service annuities
14for present employees, future entrants and re-entrants.
15    (a) Beginning on the effective date and prior to July 1,
161947, 3 1/4%; and beginning on July 1, 1947 and prior to July
171, 1953, 5%; and beginning July 1, 1953 and prior to January 1,
181972, 6%; and beginning January 1, 1972, 6.5%; and beginning
19January 1, 2015, and prior to January 1, 2016, 7.0%; and
20beginning January 1, 2016, and prior to January 1, 2017, 7.5%;
21and, beginning January 1, 2017, and prior to January 1, 2018,
228.0%; and beginning January 1, 2018, and prior to January 1,
232019, 8.5%; and beginning January 1, 2019, and thereafter, 9.0%
246 1/2% of each payment of the salary of each present employee,
25future entrant and re-entrant shall be contributed to the fund

 

 

SB1922 Enrolled- 62 -LRB098 09566 EFG 39712 b

1as a deduction from salary for age and service annuity;
2provided, however, that beginning with the first pay period on
3or after the date when the funded ratio of the Fund is first
4determined to have reached the 90% funding goal set forth in
5subsection (a-5) of Section 11-169 of this Code, and each pay
6period thereafter for as long as the Fund maintains a funding
7ratio of 90% or more, employee contributions shall be 7.75% of
8salary for the age and service annuity. If the funding ratio
9falls below 90%, then employee contributions for the age and
10service annuity shall revert to 9.0% of salary until such time
11as the Fund once again is determined to have reached a funding
12ratio of at least 90%, at which time employee contributions of
137.75% shall resume for the age and service annuity. Such
14deductions beginning on the effective date and prior to June
1530, 1947, inclusive shall be made for a future entrant while he
16is in service until he attains age 65, and for a present
17employee while he is in service until the amount so deducted
18from his salary with interest at the rate of 4% per annum shall
19be equal to the sum which would have accumulated to his credit
20from sums deducted from his salary if deductions at the rate
21herein stated had been made during his entire service until he
22attained age 65 with interest at 4% per annum for the period
23subsequent to his attainment of age 65. Such deductions
24beginning July 1, 1947 shall be made and continued for
25employees while in the service.
26    Notwithstanding Section 1-103.1, the changes to this

 

 

SB1922 Enrolled- 63 -LRB098 09566 EFG 39712 b

1Section made by this amendatory Act of the 98th General
2Assembly apply regardless of whether the employee was in active
3service on or after the effective date of this amendatory Act.
4    (b) Concurrently with each employee contribution, the city
5shall contribute beginning on the effective date and prior to
6July 1, 1947, 5 3/4%; and beginning July 1, 1947 and prior to
7July 1, 1953, 7%; and beginning July 1, 1953, 6% of each
8payment of such salary until the employee attains age 65.
9    (c) Each employee contribution made prior to the date age
10and service annuity for an employee is fixed and each
11corresponding city contribution shall be allocated to the
12account of and credited to the employee for whose benefit it is
13made.
14(Source: P.A. 81-1536.)
 
15    (40 ILCS 5/11-179.1 new)
16    Sec. 11-179.1. Use of contributions for health care
17subsidies. Except as may be required pursuant to Sections
1811-160.1 and 11-160.2 of this Code, the Fund shall not use any
19contribution received by the Fund under this Article to provide
20a subsidy for the cost of participation in a retiree health
21care program.
 
22    Section 90. The State Mandates Act is amended by adding
23Section 8.38 as follows:
 

 

 

SB1922 Enrolled- 64 -LRB098 09566 EFG 39712 b

1    (30 ILCS 805/8.38 new)
2    Sec. 8.38. Exempt mandate. Notwithstanding Sections 6 and 8
3of this Act, no reimbursement by the State is required for the
4implementation of any mandate created by this amendatory Act of
5the 98th General Assembly.
 
6    Section 93. Inseverability and severability. The
7provisions of this amendatory Act of 2014 set forth in Sections
81-160, 8-137, 8-137.1, 8-173, 8-173.1, 8-174, 11-134.1,
911-134.3, 11-169, 11-169.1, and 11-170 of the Illinois Pension
10Code are mutually dependent and inseverable. If any of those
11provisions is held invalid other than as applied to a
12particular person or circumstance, then all of those provisions
13are invalid. The remaining provisions of this Act are severable
14under Section 1.31 of the Statute on Statutes, and are not
15mutually dependent upon the provisions set forth in any other
16Section of this Act.
 
17    Section 95. No acceleration or delay. Where this Act makes
18changes in a statute that is represented in this Act by text
19that is not yet or no longer in effect (for example, a Section
20represented by multiple versions), the use of that text does
21not accelerate or delay the taking effect of (i) the changes
22made by this Act or (ii) provisions derived from any other
23Public Act.
 
24    Section 99. Effective date. This Act takes effect upon

 

 

SB1922 Enrolled- 65 -LRB098 09566 EFG 39712 b

1becoming law.