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| [ House Amendment 003 ] |
90_SB0667ham002
LRB9000609EGfgam30
1 AMENDMENT TO SENATE BILL 667
2 AMENDMENT NO. . Amend Senate Bill 667, AS AMENDED,
3 by replacing the title with the following:
4 "AN ACT in relation to public employee retirement
5 benefits."; and
6 by replacing everything after the enacting clause with the
7 following:
8 "Section 5. The Property Tax Code is amended by changing
9 Section 18-185 as follows:
10 (35 ILCS 200/18-185)
11 Sec. 18-185. Short title; definitions. This Section and
12 Sections 18-190 through 18-245 may be cited as the Property
13 Tax Extension Limitation Law. As used in Sections 18-190
14 through 18-245:
15 "Consumer Price Index" means the Consumer Price Index for
16 All Urban Consumers for all items published by the United
17 States Department of Labor.
18 "Extension limitation" means (a) the lesser of 5% or the
19 percentage increase in the Consumer Price Index during the
20 12-month calendar year preceding the levy year or (b) the
21 rate of increase approved by voters under Section 18-205.
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1 "Affected county" means a county of 3,000,000 or more
2 inhabitants or a county contiguous to a county of 3,000,000
3 or more inhabitants.
4 "Taxing district" has the same meaning provided in
5 Section 1-150, except as otherwise provided in this Section.
6 For the 1991 through 1994 levy years only, "taxing district"
7 includes only each non-home rule taxing district having the
8 majority of its 1990 equalized assessed value within any
9 county or counties contiguous to a county with 3,000,000 or
10 more inhabitants. Beginning with the 1995 levy year, "taxing
11 district" includes only each non-home rule taxing district
12 subject to this Law before the 1995 levy year and each
13 non-home rule taxing district not subject to this Law before
14 the 1995 levy year having the majority of its 1994 equalized
15 assessed value in an affected county or counties. Beginning
16 with the levy year in which this Law becomes applicable to a
17 taxing district as provided in Section 18-213, "taxing
18 district" also includes those taxing districts made subject
19 to this Law as provided in Section 18-213.
20 "Aggregate extension" for taxing districts to which this
21 Law applied before the 1995 levy year means the annual
22 corporate extension for the taxing district and those special
23 purpose extensions that are made annually for the taxing
24 district, excluding special purpose extensions: (a) made for
25 the taxing district to pay interest or principal on general
26 obligation bonds that were approved by referendum; (b) made
27 for any taxing district to pay interest or principal on
28 general obligation bonds issued before October 1, 1991; (c)
29 made for any taxing district to pay interest or principal on
30 bonds issued to refund or continue to refund those bonds
31 issued before October 1, 1991; (d) made for any taxing
32 district to pay interest or principal on bonds issued to
33 refund or continue to refund bonds issued after October 1,
34 1991 that were approved by referendum; (e) made for any
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1 taxing district to pay interest or principal on revenue bonds
2 issued before October 1, 1991 for payment of which a property
3 tax levy or the full faith and credit of the unit of local
4 government is pledged; however, a tax for the payment of
5 interest or principal on those bonds shall be made only after
6 the governing body of the unit of local government finds that
7 all other sources for payment are insufficient to make those
8 payments; (f) made for payments under a building commission
9 lease when the lease payments are for the retirement of bonds
10 issued by the commission before October 1, 1991, to pay for
11 the building project; (g) made for payments due under
12 installment contracts entered into before October 1, 1991;
13 (h) made for payments of principal and interest on bonds
14 issued under the Metropolitan Water Reclamation District Act
15 to finance construction projects initiated before October 1,
16 1991; (i) made for payments of principal and interest on
17 limited bonds, as defined in Section 3 of the Local
18 Government Debt Reform Act, in an amount not to exceed the
19 debt service extension base less the amount in items (b),
20 (c), (e), and (h) of this definition for non-referendum
21 obligations, except obligations initially issued pursuant to
22 referendum; and (j) made for payments of principal and
23 interest on bonds issued under Section 15 of the Local
24 Government Debt Reform Act; and (k) made by a school district
25 that participates in the Special Education District of Lake
26 County, created by special education joint agreement under
27 Section 10-22.31 of the School Code, for payment of the
28 school district's share of the amounts required to be
29 contributed by the Special Education District of Lake County
30 to the Illinois Municipal Retirement Fund under Article 7 of
31 the Illinois Pension Code; the amount of any extension under
32 this item (k) shall be certified by the school district to
33 the county clerk.
34 "Aggregate extension" for the taxing districts to which
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1 this Law did not apply before the 1995 levy year (except
2 taxing districts subject to this Law in accordance with
3 Section 18-213) means the annual corporate extension for the
4 taxing district and those special purpose extensions that are
5 made annually for the taxing district, excluding special
6 purpose extensions: (a) made for the taxing district to pay
7 interest or principal on general obligation bonds that were
8 approved by referendum; (b) made for any taxing district to
9 pay interest or principal on general obligation bonds issued
10 before March 1, 1995; (c) made for any taxing district to pay
11 interest or principal on bonds issued to refund or continue
12 to refund those bonds issued before March 1, 1995; (d) made
13 for any taxing district to pay interest or principal on bonds
14 issued to refund or continue to refund bonds issued after
15 March 1, 1995 that were approved by referendum; (e) made for
16 any taxing district to pay interest or principal on revenue
17 bonds issued before March 1, 1995 for payment of which a
18 property tax levy or the full faith and credit of the unit of
19 local government is pledged; however, a tax for the payment
20 of interest or principal on those bonds shall be made only
21 after the governing body of the unit of local government
22 finds that all other sources for payment are insufficient to
23 make those payments; (f) made for payments under a building
24 commission lease when the lease payments are for the
25 retirement of bonds issued by the commission before March 1,
26 1995 to pay for the building project; (g) made for payments
27 due under installment contracts entered into before March 1,
28 1995; (h) made for payments of principal and interest on
29 bonds issued under the Metropolitan Water Reclamation
30 District Act to finance construction projects initiated
31 before October 1, 1991; (i) made for payments of principal
32 and interest on limited bonds, as defined in Section 3 of the
33 Local Government Debt Reform Act, in an amount not to exceed
34 the debt service extension base less the amount in items (b),
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1 (c), (e), and (h) of this definition for non-referendum
2 obligations, except obligations initially issued pursuant to
3 referendum; (j) made for payments of principal and interest
4 on bonds issued under Section 15 of the Local Government Debt
5 Reform Act; (k) made for payments of principal and interest
6 on bonds authorized by Public Act 88-503 and issued under
7 Section 20a of the Chicago Park District Act for aquarium or
8 museum projects; and (l) made for payments of principal and
9 interest on bonds authorized by Public Act 87-1191 and issued
10 under Section 42 of the Cook County Forest Preserve District
11 Act for zoological park projects.
12 "Aggregate extension" for all taxing districts to which
13 this Law applies in accordance with Section 18-213, except
14 for those taxing districts subject to paragraph (2) of
15 subsection (e) of Section 18-213, means the annual corporate
16 extension for the taxing district and those special purpose
17 extensions that are made annually for the taxing district,
18 excluding special purpose extensions: (a) made for the taxing
19 district to pay interest or principal on general obligation
20 bonds that were approved by referendum; (b) made for any
21 taxing district to pay interest or principal on general
22 obligation bonds issued before the date on which the
23 referendum making this Law applicable to the taxing district
24 is held; (c) made for any taxing district to pay interest or
25 principal on bonds issued to refund or continue to refund
26 those bonds issued before the date on which the referendum
27 making this Law applicable to the taxing district is held;
28 (d) made for any taxing district to pay interest or principal
29 on bonds issued to refund or continue to refund bonds issued
30 after the date on which the referendum making this Law
31 applicable to the taxing district is held if the bonds were
32 approved by referendum after the date on which the referendum
33 making this Law applicable to the taxing district is held;
34 (e) made for any taxing district to pay interest or principal
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1 on revenue bonds issued before the date on which the
2 referendum making this Law applicable to the taxing district
3 is held for payment of which a property tax levy or the full
4 faith and credit of the unit of local government is pledged;
5 however, a tax for the payment of interest or principal on
6 those bonds shall be made only after the governing body of
7 the unit of local government finds that all other sources for
8 payment are insufficient to make those payments; (f) made for
9 payments under a building commission lease when the lease
10 payments are for the retirement of bonds issued by the
11 commission before the date on which the referendum making
12 this Law applicable to the taxing district is held to pay for
13 the building project; (g) made for payments due under
14 installment contracts entered into before the date on which
15 the referendum making this Law applicable to the taxing
16 district is held; (h) made for payments of principal and
17 interest on limited bonds, as defined in Section 3 of the
18 Local Government Debt Reform Act, in an amount not to exceed
19 the debt service extension base less the amount in items (b),
20 (c), and (e) of this definition for non-referendum
21 obligations, except obligations initially issued pursuant to
22 referendum; (i) made for payments of principal and interest
23 on bonds issued under Section 15 of the Local Government Debt
24 Reform Act; and (j) made for a qualified airport authority to
25 pay interest or principal on general obligation bonds issued
26 for the purpose of paying obligations due under, or financing
27 airport facilities required to be acquired, constructed,
28 installed or equipped pursuant to, contracts entered into
29 before March 1, 1996 (but not including any amendments to
30 such a contract taking effect on or after that date).
31 "Aggregate extension" for all taxing districts to which
32 this Law applies in accordance with paragraph (2) of
33 subsection (e) of Section 18-213 means the annual corporate
34 extension for the taxing district and those special purpose
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1 extensions that are made annually for the taxing district,
2 excluding special purpose extensions: (a) made for the taxing
3 district to pay interest or principal on general obligation
4 bonds that were approved by referendum; (b) made for any
5 taxing district to pay interest or principal on general
6 obligation bonds issued before the effective date of this
7 amendatory Act of 1997; (c) made for any taxing district to
8 pay interest or principal on bonds issued to refund or
9 continue to refund those bonds issued before the effective
10 date of this amendatory Act of 1997; (d) made for any taxing
11 district to pay interest or principal on bonds issued to
12 refund or continue to refund bonds issued after the effective
13 date of this amendatory Act of 1997 if the bonds were
14 approved by referendum after the effective date of this
15 amendatory Act of 1997; (e) made for any taxing district to
16 pay interest or principal on revenue bonds issued before the
17 effective date of this amendatory Act of 1997 for payment of
18 which a property tax levy or the full faith and credit of the
19 unit of local government is pledged; however, a tax for the
20 payment of interest or principal on those bonds shall be made
21 only after the governing body of the unit of local government
22 finds that all other sources for payment are insufficient to
23 make those payments; (f) made for payments under a building
24 commission lease when the lease payments are for the
25 retirement of bonds issued by the commission before the
26 effective date of this amendatory Act of 1997 to pay for the
27 building project; (g) made for payments due under installment
28 contracts entered into before the effective date of this
29 amendatory Act of 1997; (h) made for payments of principal
30 and interest on limited bonds, as defined in Section 3 of the
31 Local Government Debt Reform Act, in an amount not to exceed
32 the debt service extension base less the amount in items (b),
33 (c), and (e) of this definition for non-referendum
34 obligations, except obligations initially issued pursuant to
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1 referendum; (i) made for payments of principal and interest
2 on bonds issued under Section 15 of the Local Government Debt
3 Reform Act; and (j) made for a qualified airport authority to
4 pay interest or principal on general obligation bonds issued
5 for the purpose of paying obligations due under, or financing
6 airport facilities required to be acquired, constructed,
7 installed or equipped pursuant to, contracts entered into
8 before March 1, 1996 (but not including any amendments to
9 such a contract taking effect on or after that date).
10 "Debt service extension base" means an amount equal to
11 that portion of the extension for a taxing district for the
12 1994 levy year, or for those taxing districts subject to this
13 Law in accordance with Section 18-213, except for those
14 subject to paragraph (2) of subsection (e) of Section 18-213,
15 for the levy year in which the referendum making this Law
16 applicable to the taxing district is held, or for those
17 taxing districts subject to this Law in accordance with
18 paragraph (2) of subsection (e) of Section 18-213 for the
19 1996 levy year, constituting an extension for payment of
20 principal and interest on bonds issued by the taxing district
21 without referendum, but not including (i) bonds authorized by
22 Public Act 88-503 and issued under Section 20a of the Chicago
23 Park District Act for aquarium and museum projects; (ii)
24 bonds issued under Section 15 of the Local Government Debt
25 Reform Act; or (iii) refunding obligations issued to refund
26 or to continue to refund obligations initially issued
27 pursuant to referendum. The debt service extension base may
28 be established or increased as provided under Section 18-212.
29 "Special purpose extensions" include, but are not limited
30 to, extensions for levies made on an annual basis for
31 unemployment and workers' compensation, self-insurance,
32 contributions to pension plans, and extensions made pursuant
33 to Section 6-601 of the Illinois Highway Code for a road
34 district's permanent road fund whether levied annually or
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1 not. The extension for a special service area is not
2 included in the aggregate extension.
3 "Aggregate extension base" means the taxing district's
4 last preceding aggregate extension as adjusted under Sections
5 18-215 through 18-230.
6 "Levy year" has the same meaning as "year" under Section
7 1-155.
8 "New property" means (i) the assessed value, after final
9 board of review or board of appeals action, of new
10 improvements or additions to existing improvements on any
11 parcel of real property that increase the assessed value of
12 that real property during the levy year multiplied by the
13 equalization factor issued by the Department under Section
14 17-30 and (ii) the assessed value, after final board of
15 review or board of appeals action, of real property not
16 exempt from real estate taxation, which real property was
17 exempt from real estate taxation for any portion of the
18 immediately preceding levy year, multiplied by the
19 equalization factor issued by the Department under Section
20 17-30.
21 "Qualified airport authority" means an airport authority
22 organized under the Airport Authorities Act and located in a
23 county bordering on the State of Wisconsin and having a
24 population in excess of 200,000 and not greater than 500,000.
25 "Recovered tax increment value" means the amount of the
26 current year's equalized assessed value, in the first year
27 after a municipality terminates the designation of an area as
28 a redevelopment project area previously established under the
29 Tax Increment Allocation Development Act in the Illinois
30 Municipal Code, previously established under the Industrial
31 Jobs Recovery Law in the Illinois Municipal Code, or
32 previously established under the Economic Development Area
33 Tax Increment Allocation Act, of each taxable lot, block,
34 tract, or parcel of real property in the redevelopment
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1 project area over and above the initial equalized assessed
2 value of each property in the redevelopment project area.
3 Except as otherwise provided in this Section, "limiting
4 rate" means a fraction the numerator of which is the last
5 preceding aggregate extension base times an amount equal to
6 one plus the extension limitation defined in this Section and
7 the denominator of which is the current year's equalized
8 assessed value of all real property in the territory under
9 the jurisdiction of the taxing district during the prior levy
10 year. For those taxing districts that reduced their
11 aggregate extension for the last preceding levy year, the
12 highest aggregate extension in any of the last 3 preceding
13 levy years shall be used for the purpose of computing the
14 limiting rate. The denominator shall not include new
15 property. The denominator shall not include the recovered
16 tax increment value.
17 (Source: P.A. 88-455; 89-1, eff. 2-12-95; 89-138, eff.
18 7-14-95; 89-385, eff. 8-18-95; 89-436, eff. 1-1-96; 89-449,
19 eff. 6-1-96; 89-510, eff. 7-11-96; 89-718, eff. 3-7-97.)
20 Section 10. The Illinois Pension Code is amended by
21 changing Sections 1-113, 2-110, 3-110.2, 4-108.1, 5-230,
22 6-224, 7-132, 7-139.1, 7-141.1, 7-171, 8-138, 8-150.1, 8-154,
23 8-159, 8-226, 8-226.1, 9-121.1, 10-104.1, 11-125.1, 11-134,
24 11-145.1, 11-149, 11-154, 11-215, 12-127.1, 13-801,
25 14-103.04, 14-104, 14-105.1, 14-105.3, 15-112, 15-113.2,
26 15-113.3, 15-113.4, 15-113.7, 15-125, 15-134.2, 15-136.2,
27 15-143, 15-153.2, 15-157, 15-167.2, 15-185, 15-190, 15-191,
28 16-127, 16-131.1, 16-140, 17-114.1, 17-116.4, 18-112, and
29 18-112.1 and adding Sections 2-117.4, 8-138.3, 9-134.3,
30 11-133.2, 14-104.10, and 15-168.1 as follows:
31 (40 ILCS 5/1-113) (from Ch. 108 1/2, par. 1-113)
32 Sec. 1-113. Investment authority. The investment
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1 authority of a board of trustees of a retirement system or
2 pension fund established under this Code shall, if so
3 provided in the Article establishing such retirement system
4 or pension fund, embrace the following investments:
5 (1) Bonds, notes and other direct obligations of the
6 United States Government; bonds, notes and other obligations
7 of any United States Government agency or instrumentality,
8 whether or not guaranteed; and obligations the principal and
9 interest of which are guaranteed unconditionally by the
10 United States Government or by an agency or instrumentality
11 thereof.
12 (2) Obligations of the Inter-American Development Bank,
13 the International Bank for Reconstruction and Development,
14 the African Development Bank, the International Finance
15 Corporation, and the Asian Development Bank.
16 (3) Obligations of any state, or of any political
17 subdivision in Illinois, or of any county or city in any
18 other state having a population as shown by the last federal
19 census of not less than 30,000 inhabitants provided that such
20 political subdivision is not permitted by law to become
21 indebted in excess of 10% of the assessed valuation of
22 property therein and has not defaulted for a period longer
23 than 30 days in the payment of interest and principal on any
24 of its general obligations or indebtedness during a period of
25 10 calendar years immediately preceding such investment.
26 (4) Nonconvertible bonds, debentures, notes and other
27 corporate obligations of any corporation created or existing
28 under the laws of the United States or any state, district or
29 territory thereof, provided there has been no default on the
30 obligations of the corporation or its predecessor(s) during
31 the 5 calendar years immediately preceding the purchase. Up
32 to 5% of the assets of a pension fund established under
33 Article 9 of this Code may be invested in nonconvertible
34 bonds, debentures, notes, and other corporate obligations of
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1 corporations created or existing under the laws of a foreign
2 country, provided there has been no default on the
3 obligations of the corporation or its predecessors during the
4 5 calendar years immediately preceding the date of purchase.
5 (5) Obligations guaranteed by the Government of Canada,
6 or by any Province of Canada, or by any Canadian city with a
7 population of not less than 150,000 inhabitants, provided (a)
8 they are payable in United States currency and are exempt
9 from any Canadian withholding tax; (b) the investment in any
10 one issue of bonds shall not exceed 10% of the amount
11 outstanding; and (c) the total investments at book value in
12 Canadian securities shall be limited to 5% of the total
13 investment account of the board at book value.
14 (5.1) Direct obligations of the State of Israel for the
15 payment of money, or obligations for the payment of money
16 which are guaranteed as to the payment of principal and
17 interest by the State of Israel, or common or preferred stock
18 or notes issued by a bank owned or controlled in whole or in
19 part by the State of Israel, on the following conditions:
20 (a) The total investments in such obligations shall
21 not exceed 5% of the book value of the aggregate
22 investments owned by the board;
23 (b) The State of Israel shall not be in default in
24 the payment of principal or interest on any of its direct
25 general obligations on the date of such investment;
26 (c) The bonds, stock or notes, and interest thereon
27 shall be payable in currency of the United States;
28 (d) The bonds shall (1) contain an option for the
29 redemption thereof after 90 days from date of purchase or
30 (2) either become due 5 years from the date of their
31 purchase or be subject to redemption 120 days after the
32 date of notice for redemption;
33 (e) The investment in these obligations has been
34 approved in writing by investment counsel employed by the
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1 board, which counsel shall be a national or state bank or
2 trust company authorized to do a trust business in the
3 State of Illinois, or an investment advisor qualified
4 under the Federal Investment Advisors Act of 1940 and
5 registered under the Illinois Securities Act of 1953;
6 (f) The fund or system making the investment shall
7 have at least $5,000,000 of net present assets.
8 (6) Notes secured by mortgages under Sections 203, 207,
9 220 and 221 of the National Housing Act which are insured by
10 the Federal Housing Commissioner, or his successor assigns,
11 or debentures issued by such Commissioner, which are
12 guaranteed as to principal and interest by the Federal
13 Housing Administration, or agency of the United States
14 Government, provided the aggregate investment shall not
15 exceed 20% of the total investment account of the board at
16 book value, and provided further that the investment in such
17 notes under Sections 220 and 221 shall in no event exceed
18 one-half of the maximum investment in notes under this
19 paragraph.
20 (7) Loans to veterans guaranteed in whole or part by the
21 United States Government pursuant to Title III of the Act of
22 Congress known as the "Servicemen's Readjustment Act of
23 1944," 58 Stat. 284, 38 U.S.C. 693, as amended or
24 supplemented from time to time, provided such guaranteed
25 loans are liens upon real estate.
26 (8) Common and preferred stocks and convertible debt
27 securities authorized for investment of trust funds under the
28 laws of the State of Illinois, provided:
29 (a) the common stocks, except as provided in
30 subparagraph (h), are listed on a national securities
31 exchange as defined in the Federal Securities Exchange
32 Act, or quoted in the National Association of Securities
33 Dealers Automated Quotation System (NASDAQ);
34 (b) the securities are of a corporation created or
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1 existing under the laws of the United States or any
2 state, district or territory thereof, except that up to
3 5% of the assets of a pension fund established under
4 Article 9 of this Code may be invested in securities
5 issued by corporations created or existing under the laws
6 of a foreign country, if those securities are otherwise
7 in conformance with this paragraph (8);
8 (c) the corporation is not in arrears on payment of
9 dividends on its preferred stock;
10 (d) the total book value of all stocks and
11 convertible debt owned by any pension fund or retirement
12 system shall not exceed 40% of the aggregate book value
13 of all investments of such pension fund or retirement
14 system, except for a pension fund or retirement that
15 system governed by Article 9 or 17, where the total of
16 all stocks and convertible debt shall not exceed 50% of
17 the aggregate book value of all fund investments;
18 (e) the book value of stock and convertible debt
19 investments in any one corporation shall not exceed 5% of
20 the total investment account at book value in which such
21 securities are held, determined as of the date of the
22 investment, and the investments in the stock of any one
23 corporation shall not exceed 5% of the total outstanding
24 stock of such corporation, and the investments in the
25 convertible debt of any one corporation shall not exceed
26 5% of the total amount of such debt that may be
27 outstanding;
28 (f) the straight preferred stocks or convertible
29 preferred stocks and convertible debt securities are
30 issued or guaranteed by a corporation whose common stock
31 qualifies for investment by the board; and
32 (g) that any common stocks not listed or quoted as
33 provided in subdivision 8(a) above be limited to the
34 following types of institutions: (a) any bank which is a
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1 member of the Federal Deposit Insurance Corporation
2 having capital funds represented by capital stock,
3 surplus and undivided profits of at least $20,000,000;
4 (b) any life insurance company having capital funds
5 represented by capital stock, special surplus funds and
6 unassigned surplus totalling at least $50,000,000; and
7 (c) any fire or casualty insurance company, or a
8 combination thereof, having capital funds represented by
9 capital stock, net surplus and voluntary reserves of at
10 least $50,000,000.
11 (9) Withdrawable accounts of State chartered and federal
12 chartered savings and loan associations insured by the
13 Federal Savings and Loan Insurance Corporation; deposits or
14 certificates of deposit in State and national banks insured
15 by the Federal Deposit Insurance Corporation; and share
16 accounts or share certificate accounts in a State or federal
17 credit union, the accounts of which are insured as required
18 by The Illinois Credit Union Act or the Federal Credit Union
19 Act, as applicable.
20 No bank or savings and loan association shall receive
21 investment funds as permitted by this subsection (9), unless
22 it has complied with the requirements established pursuant to
23 Section 6 of the Public Funds Investment Act.
24 (10) Trading, purchase or sale of listed options on
25 underlying securities owned by the board.
26 (11) Contracts and agreements supplemental thereto
27 providing for investments in the general account of a life
28 insurance company authorized to do business in Illinois.
29 (12) Conventional mortgage pass-through securities which
30 are evidenced by interests in Illinois owner-occupied
31 residential mortgages, having not less than an "A" rating
32 from at least one national securities rating service. Such
33 mortgages may have loan-to-value ratios up to 95%, provided
34 that any amount over 80% is insured by private mortgage
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1 insurance. The pool of such mortgages shall be insured by
2 mortgage guaranty or equivalent insurance, in accordance with
3 industry standards.
4 (13) Pooled or commingled funds managed by a national or
5 State bank which is authorized to do a trust business in the
6 State of Illinois, shares of registered investment companies
7 as defined in the federal Investment Company Act of 1940
8 which are registered under that Act, and separate accounts of
9 a life insurance company authorized to do business in
10 Illinois, where such pooled or commingled funds, shares, or
11 separate accounts are comprised of common or preferred
12 stocks, bonds, or money market instruments.
13 (14) Pooled or commingled funds managed by a national or
14 state bank which is authorized to do a trust business in the
15 State of Illinois, separate accounts managed by a life
16 insurance company authorized to do business in Illinois, and
17 commingled group trusts managed by an investment adviser
18 registered under the federal Investment Advisors Act of 1940
19 (15 U.S.C. 80b-1 et seq.) and under the Illinois Securities
20 Law of 1953, where such pooled or commingled funds, separate
21 accounts or commingled group trusts are comprised of real
22 estate or loans upon real estate secured by first or second
23 mortgages. The total investment in such pooled or commingled
24 funds, commingled group trusts and separate accounts shall
25 not exceed 10% of the aggregate book value of all investments
26 owned by the fund.
27 (15) Investment companies which (a) are registered as
28 such under the Investment Company Act of 1940, (b) are
29 diversified, open-end management investment companies and (c)
30 invest only in money market instruments.
31 (16) Up to 10% of the assets of the fund may be invested
32 in investments not included in paragraphs (1) through (15) of
33 this Section, provided that such investments comply with the
34 requirements and restrictions set forth in Sections 1-109,
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1 1-109.1, 1-109.2, 1-110 and 1-111 of this Code.
2 The board shall have the authority to enter into such
3 agreements and to execute such documents as it determines to
4 be necessary to complete any investment transaction.
5 Any limitations herein set forth shall be applicable only
6 at the time of purchase and shall not require the liquidation
7 of any investment at any time.
8 All investments shall be clearly held and accounted for
9 to indicate ownership by such board. Such board may direct
10 the registration of securities in its own name or in the name
11 of a nominee created for the express purpose of registration
12 of securities by a national or state bank or trust company
13 authorized to conduct a trust business in the State of
14 Illinois.
15 Investments shall be carried at cost or at a book value
16 in accordance with accounting procedures approved by such
17 board. No adjustments shall be made in investment carrying
18 values for ordinary current market price fluctuations; but
19 reserves may be provided to account for possible losses or
20 unrealized gains as determined by such board.
21 The book value of investments held by any pension fund or
22 retirement system in one or more commingled investment
23 accounts shall be the cost of its units of participation in
24 such commingled account or accounts as recorded on the books
25 of such board.
26 (Source: P.A. 86-272; 87-575; 87-794; 87-895.)
27 (40 ILCS 5/2-110) (from Ch. 108 1/2, par. 2-110)
28 Sec. 2-110. Service.
29 (A) "Service" means the period beginning on the day when
30 a person first became a member, and ending on the date under
31 consideration, excluding all intervening periods of
32 nonmembership following resignation or expiration of any term
33 of office.
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1 (B) "Service" includes:
2 (a) Military service during war by a person who
3 entered such service while a member, whether rendered
4 before or after the expiration of any term of office;
5 plus up to 2 years of military service that need not have
6 immediately followed service as a member, and need not
7 have been served during wartime, provided that the member
8 makes contributions to the System for such service (1) at
9 the rates provided in Section 2-126 based upon the
10 member's rate of compensation on the last date as a
11 participant prior to such military service, or on the
12 first date as a participant after such military service,
13 whichever is greater, plus (2) if payment is made on or
14 after May 1, 1993, an amount determined by the Board to
15 be equal to the employer's normal cost of the benefits
16 accrued for such military service, plus (3) interest at
17 the effective rate from the date of first membership in
18 the System to the date of payment.
19 The amendment to this subdivision (B)(a) made by
20 this amendatory Act of 1993 shall apply to persons who
21 are active contributors to the System on or after
22 November 30, 1992. A person who was an active
23 contributor to the System on November 30, 1992 but is no
24 longer an active contributor may apply to purchase
25 military credit under this subdivision (B)(a) within 60
26 days after the effective date of this amendatory Act of
27 1993; if the person is an annuitant, the resulting
28 increase in annuity shall begin to accrue on the first
29 day of the month following the month in which the
30 required payment is received by the System. The change
31 in the required contribution for purchased military
32 credit made by this amendatory Act of 1993 shall not
33 entitle any person to a refund of contributions already
34 paid.
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1 (b) Service as a judge of a court of this State,
2 but credit for such service is subject to the following
3 conditions: (1) such person shall have been a member for
4 at least 4 years and contributed to the System for
5 service as a judge subsequent to July 8, 1947, at the
6 rates herein provided, including interest at 2% per annum
7 to the date of payment based on the salary in effect
8 during such service; (2) the member was not an eligible
9 member of nor entitled to credit for such service in any
10 other retirement system in the State maintained in whole
11 or in part by public contributions; and (3) the last 4
12 years of service prior to retirement on annuity was
13 rendered while a member.
14 (c) Service as a participating employee under
15 Articles 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16,
16 17 or 18 of the Illinois Pension Code. Credit for such
17 service may be established by a member and, if permitted
18 by the credit transfer Section of the appropriate
19 Article, by a former member who is not yet an annuitant,
20 and is subject to the following conditions: (1) that the
21 credits to be transferred accrued under the above
22 mentioned Articles have been received by transferred to
23 this System; and (2) that the member has contributed to
24 this System an amount equal to (i) the contribution rate
25 in effect for participants at the date of membership in
26 this System multiplied by the salary then in effect for
27 members of the General Assembly for each year of service
28 for which credit is being transferred, plus (ii) the
29 State's share of the normal cost of benefits under this
30 System expressed as a percent of payroll, as determined
31 by the System's actuary as of the date of the
32 participant's membership in this System, multiplied by
33 the salary then in effect for members of the General
34 Assembly, for each year of service for which credit is
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1 being transferred, plus (iii) interest on items (i) and
2 (ii) above at 6% per annum compounded annually, from the
3 date of membership to the date of payment by the
4 participant, less (iv) the amount transferred to this
5 System on behalf of the participant on account of service
6 rendered while a participant under the above mentioned
7 Articles.
8 (d) Service, before October 1, 1975, as an officer
9 elected by the people of Illinois, for which creditable
10 service is required to be transferred from the State
11 Employees' Retirement System to this System by this
12 amendatory Act of 1975.
13 (e) Service rendered prior to January 1, 1964, as a
14 justice of the peace or police magistrate or as a civil
15 referee in the Municipal Court of Chicago, but credit for
16 such service may not be granted until the member has paid
17 to the System an amount equal to (1) the contribution
18 rate for participants at the date of membership in this
19 System multiplied by the salary then in effect for
20 members of the General Assembly for each year of service
21 for which credit is being transferred, plus (2) the
22 State's share of the normal cost of benefits under this
23 System expressed as a percent of payroll, as determined
24 by the System's actuary as of the date of the
25 participant's membership in this System, multiplied by
26 the salary then in effect for members of the General
27 Assembly, for each year of service for which credit is
28 allowed, plus, (3) interest on (1) and (2) above at 6%
29 per annum compounded annually from the date of membership
30 to the date of payment by the member. However, a
31 participant may not receive more than 6 years of credit
32 for such service nor may any member receive credit under
33 this paragraph for service for which credit has been
34 granted in any other public pension fund or retirement
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1 system in the State.
2 (f) Service before January 16, 1981, as an officer
3 elected by the people of Illinois, for which creditable
4 service is transferred from the State Employees'
5 Retirement System to this System.
6 (C) Service during any fraction of a month shall be
7 considered as a month of service.
8 Service includes the total period of time for which a
9 participant is elected as a member or officer, even though he
10 or she does not complete the term because of death,
11 resignation, judicial decision, or operation of law, provided
12 that the contributions required under this Article for such
13 entire period of office have been made by or on behalf of the
14 participant. In the case of a participant appointed or
15 elected to fill a vacancy, service includes the total period
16 from January 1 of the year in which his or her service
17 commences to the end of the term in which the vacancy occurs,
18 provided the participant contributes in the year of
19 appointment an amount equal to the contributions that would
20 have been required had the participant received salary for
21 the entire year. The foregoing provisions relating to a
22 participant appointed or elected to fill a vacancy shall not
23 apply if the participant was a member of the other
24 legislative chamber at the time of appointment or election.
25 (D) Notwithstanding the other provisions of this
26 Section, if application to transfer or establish service
27 credit under paragraph (c) or (e) of subsection (B) of this
28 Section is made between June 1, 1997 and June 1, 1998, both
29 inclusive January 1, 1992 and February 1, 1993, the
30 contribution required for such credit shall be an amount
31 equal to (1) the contribution rate in effect for participants
32 at the date of membership in this System multiplied by the
33 salary then in effect for members of the General Assembly for
34 each year of service for which credit is being granted, plus
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1 (2) interest thereon at 6% per annum compounded annually,
2 from the date of membership to the date of payment by the
3 member, less (3) any amount transferred to this System on
4 behalf of the member on account of such service credit.
5 The application of the changes to this Section made by
6 this amendatory Act of 1997 is not limited to persons who are
7 in service on or after the effective date of this amendatory
8 Act of 1997.
9 (Source: P.A. 86-27; 86-1028; 87-794; 87-1265.)
10 (40 ILCS 5/2-117.4 new)
11 Sec. 2-117.4. Retransfer of creditable service to
12 Article 14 system. If a person transferred creditable
13 service to this System under Section 14-105.1 between January
14 1, 1990 and February 1, 1991, and that transfer resulted in
15 the person having excess service not established in this
16 System, the person may elect to transfer that excess service
17 back into the Article 14 retirement system. Application to
18 transfer excess service under this Section must be made to
19 the Board in writing within 6 months after the effective date
20 of this Section. The amount of excess service to be
21 retransferred shall be calculated by multiplying the number
22 of years of service transferred from the Article 14 system
23 under Section 14-105.1 by a fraction, the denominator of
24 which is the total employee contribution (including interest)
25 transferred to this system under Section 14-105.1 and the
26 numerator of which is the amount of that transferred employee
27 contribution not used to establish service in this System.
28 At the time of the retransfer, the System shall also
29 transfer to the State Employees' Retirement System an amount,
30 calculated by the Board, equal to (i) the employee
31 contributions (including interest), if any, that were
32 transferred to this System by the applicant under Section
33 14-105.1 and not used to establish service under this
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1 Article, plus (ii) regular interest on those unused employee
2 contributions from the date of the transfer under Section
3 14-105.1 to the date of the retransfer under this Section.
4 (40 ILCS 5/3-110.2) (from Ch. 108 1/2, par. 3-110.2)
5 Sec. 3-110.2. Transfer of creditable service to General
6 Assembly Retirement System.
7 (a) An active member of the General Assembly Retirement
8 System (and until June 1, 1998, a former member of that
9 System who has not yet retired) may apply to transfer his or
10 her credits and creditable service accumulated in any police
11 pension fund under this Article to the General Assembly
12 Retirement System. Such transfer shall be made forthwith.
13 Payment by the police pension fund to the General Assembly
14 Retirement System shall be made at the same time and shall
15 consist of:
16 (1) the amounts credited to the applicant, through
17 employee contributions on the date of transfer; and
18 (2) municipality contributions equal to the
19 accumulated employee contributions as determined under
20 subparagraph (1) above.
21 Participation in the police pension fund shall terminate on
22 the date of transfer.
23 (b) An active member of the General Assembly Retirement
24 System (and until June 1, 1998, a former member of that
25 System who has not yet retired) may reinstate service and
26 creditable service terminated upon receipt of a refund, by
27 payment to the fund of the amount of the refund together with
28 interest thereon at the rate of 6% per year to the date of
29 payment.
30 (c) The application of this Section is not limited to
31 persons who are in service on or after the effective date of
32 this amendatory Act of 1997.
33 (Source: P.A. 83-1440.)
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1 (40 ILCS 5/4-108.1) (from Ch. 108 1/2, par. 4-108.1)
2 Sec. 4-108.1. Transfer of creditable service to General
3 Assembly Retirement System.
4 (a) Any active member of the General Assembly Retirement
5 System (and until June 1, 1998, a former member of that
6 System who has not yet retired) may apply for transfer of
7 credits and creditable service accumulated in any
8 firefighter's pension fund under this Article to the General
9 Assembly Retirement System. Such transfer shall be made
10 forthwith. Payment by the firefighters' pension fund to the
11 General Assembly Retirement System shall be made at the same
12 time and shall consist of:
13 (1) the amounts credited to the applicant through
14 employee contributions; and
15 (2) municipality contributions equal to the
16 accumulated employee contributions as determined under
17 (1) above.
18 Participation in the firefighters' pension fund shall
19 terminate on the date of transfer.
20 (b) An active member of the General Assembly Retirement
21 System (and until June 1, 1998, a former member of that
22 System who has not yet retired) may reinstate service and
23 creditable service terminated upon receipt of a refund, by
24 payment to the firefighters' pension fund of the amount of
25 the refund with interest thereon at the rate of 6% per year
26 to the date of payment.
27 (c) The application of this Section is not limited to
28 persons who are in service on or after the effective date of
29 this amendatory Act of 1997.
30 (Source: P.A. 83-1440.)
31 (40 ILCS 5/5-230) (from Ch. 108 1/2, par. 5-230)
32 Sec. 5-230. General Assembly.
33 (a) Any active (and until February 1, 1993, any former)
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1 member of the General Assembly Retirement System (and until
2 June 1, 1998, a former member of that System who has not yet
3 retired) may apply for transfer of his or her credits and
4 creditable service accumulated under this Fund to the General
5 Assembly System. Such credits and creditable service shall
6 be transferred forthwith. Payment by this Fund to the
7 General Assembly Retirement System shall be made at the same
8 time and shall consist of:
9 (1) the amounts accumulated to the credit of the
10 applicant, including interest, on the books of the Fund
11 on the date of transfer, but excluding any additional or
12 optional credits, which credits shall be refunded to the
13 applicant; and
14 (2) municipality credits computed and credited
15 under this Article including interest, on the books of
16 the Fund on the date the member terminated service under
17 the Fund.
18 Participation in this Fund as to any credits transferred
19 under this Section shall terminate on the date of transfer.
20 (b) An active (and until February 1, 1993, a former)
21 member of the General Assembly Retirement System (and until
22 June 1, 1998, a former member of that System who has not yet
23 retired) may reinstate service and service credits terminated
24 upon receipt of a refund or separation benefit, by payment to
25 the Fund of the amount of the separation benefit plus
26 interest thereon from the date of the refund to the date of
27 payment.
28 (c) The application of this Section is not limited to
29 persons who are in service on or after the effective date of
30 this amendatory Act of 1997.
31 (Source: P.A. 87-1265.)
32 (40 ILCS 5/6-224) (from Ch. 108 1/2, par. 6-224)
33 Sec. 6-224. Transfer to General Assembly Retirement
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1 System.
2 (a) Any active member of the General Assembly Retirement
3 System (and until June 1, 1998, a former member of that
4 System who has not yet retired) may apply for transfer of his
5 or her credits and creditable service accumulated under this
6 Fund to the General Assembly System. Such credits and
7 creditable service shall be transferred forthwith. Payment
8 by this Fund to the General Assembly Retirement System shall
9 be made at the same time and shall consist of:
10 (1) the amounts accumulated to the credit of the
11 applicant, including interest, on the books of the Fund
12 on the date of transfer, but excluding any additional or
13 optional credits, which credits shall be refunded to the
14 applicant; and
15 (2) municipality credits computed and credited
16 under this Article including interest, on the books of
17 the Fund on the date the member terminated service under
18 the Fund.
19 Participation in this Fund as to any credits transferred
20 under this Section shall terminate on the date of transfer.
21 (b) An active member of the General Assembly Retirement
22 System (and until June 1, 1998, a former member of that
23 System who has not yet retired) may reinstate service and
24 service credits terminated upon receipt of a separation
25 benefit, by payment to the Fund of the amount of the
26 separation benefit plus interest thereon to the date of
27 payment.
28 (c) The application of this Section is not limited to
29 persons who are in service on or after the effective date of
30 this amendatory Act of 1997.
31 (Source: P.A. 81-1128.)
32 (40 ILCS 5/7-132) (from Ch. 108 1/2, par. 7-132)
33 Sec. 7-132. Municipalities, instrumentalities and
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1 participating instrumentalities included and effective dates.
2 (A) Municipalities and their instrumentalities.
3 (a) The following described municipalities, but not
4 including any with more than 1,000,000 inhabitants, and the
5 instrumentalities thereof, shall be included within and be
6 subject to this Article beginning upon the effective dates
7 specified by the Board:
8 (1) Except as to the municipalities and
9 instrumentalities thereof specifically excluded under
10 this Article, every county shall be subject to this
11 Article, and all cities, villages and incorporated towns
12 having a population in excess of 5,000 inhabitants as
13 determined by the last preceding decennial or subsequent
14 federal census, shall be subject to this Article
15 following publication of the census by the Bureau of the
16 Census. Within 90 days after publication of the census,
17 the Board shall notify any municipality that has become
18 subject to this Article as a result of that census, and
19 shall provide information to the corporate authorities of
20 the municipality explaining the duties and consequences
21 of participation. The notification shall also include a
22 proposed date upon which participation by the
23 municipality will commence.
24 However, for any city, village or incorporated town
25 that attains a population over 5,000 inhabitants after
26 having provided social security coverage for its
27 employees under the Social Security Enabling Act,
28 participation under this Article shall not be mandatory
29 but may be elected in accordance with subparagraph (3) or
30 (4) of this paragraph (a), whichever is applicable.
31 (2) School districts, other than those specifically
32 excluded under this Article, shall be subject to this
33 Article, without election, with respect to all employees
34 thereof.
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1 (3) Towns and all other bodies politic and
2 corporate which are formed by vote of, or are subject to
3 control by, the electors in towns and are located in
4 towns which are not participating municipalities on the
5 effective date of this Act, may become subject to this
6 Article by election pursuant to Section 7-132.1.
7 (4) Any other municipality (together with its
8 instrumentalities), other than those specifically
9 excluded from participation and those described in
10 paragraph (3) above, may elect to be included either by
11 referendum under Section 7-134 or by the adoption of a
12 resolution or ordinance by its governing body. A copy of
13 such resolution or ordinance duly authenticated and
14 certified by the clerk of the municipality or other
15 appropriate official of its governing body shall
16 constitute the required notice to the board of such
17 action.
18 (b) A municipality that is about to begin participation
19 shall submit to the Board an application to participate, in a
20 form acceptable to the Board, not later than 90 days prior to
21 the proposed effective date of participation. The Board
22 shall act upon the application within 90 days, and if it
23 finds that the application is in conformity with its
24 requirements and the requirements of this Article,
25 participation by the applicant shall commence on a date
26 acceptable to the municipality and specified by the Board,
27 but in no event more than one year from the date of
28 application.
29 (c) A participating municipality which succeeds to the
30 functions of a participating municipality which is dissolved
31 or terminates its existence shall assume and be transferred
32 the net accumulation balance in the municipality reserve and
33 the municipality account receivable balance of the terminated
34 municipality.
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1 (d) In the case of a Veterans Assistance Commission
2 whose employees were being treated by the Fund on January 1,
3 1990 as employees of the county served by the Commission, the
4 Fund may continue to treat the employees of the Veterans
5 Assistance Commission as county employees for the purposes of
6 this Article, unless the Commission becomes a participating
7 instrumentality in accordance with subsection (B) of this
8 Section.
9 (B) Participating instrumentalities.
10 (a) The participating instrumentalities designated in
11 paragraph (b) of this subsection shall be included within and
12 be subject to this Article if:
13 (1) an application to participate, in a form
14 acceptable to the Board and adopted by a two-thirds vote
15 of the governing body, is presented to the Board not
16 later than 90 days prior to the proposed effective date;
17 and
18 (2) the Board finds that the application is in
19 conformity with its requirements, that the applicant has
20 reasonable expectation to continue as a political entity
21 for a period of at least 10 years and has the prospective
22 financial capacity to meet its current and future
23 obligations to the Fund, and that the actuarial soundness
24 of the Fund may be reasonably expected to be unimpaired
25 by approval of participation by the applicant.
26 The Board shall notify the applicant of its findings
27 within 90 days after receiving the application, and if the
28 Board approves the application, participation by the
29 applicant shall commence on the effective date specified by
30 the Board.
31 (b) The following participating instrumentalities, so
32 long as they meet the requirements of Section 7-108 and the
33 area served by them or within their jurisdiction is not
34 located entirely within a municipality having more than one
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1 million inhabitants, may be included hereunder:
2 i. Township School District Trustees.
3 ii. Multiple County and Consolidated Health
4 Departments created under Division 5-25 of the Counties
5 Code or its predecessor law.
6 iii. Public Building Commissions created under the
7 Public Building Commission Act, and located in counties
8 of less than 1,000,000 inhabitants.
9 iv. A multitype, consolidated or cooperative
10 library system created under the Illinois Library System
11 Act. Any library system created under the Illinois
12 Library System Act that has one or more predecessors that
13 participated in the Fund may participate in the Fund upon
14 application. The Board shall establish procedures for
15 implementing the transfer of rights and obligations from
16 the predecessor system to the successor system.
17 v. Regional Planning Commissions created under
18 Division 5-14 of the Counties Code or its predecessor
19 law.
20 vi. Local Public Housing Authorities created under
21 the Housing Authorities Act, located in counties of less
22 than 1,000,000 inhabitants.
23 vii. Illinois Municipal League.
24 viii. Northeastern Illinois Metropolitan Area
25 Planning Commission.
26 ix. Southwestern Illinois Metropolitan Area
27 Planning Commission.
28 x. Illinois Association of Park Districts.
29 xi. Illinois Supervisors, County Commissioners and
30 Superintendents of Highways Association.
31 xii. Tri-City Regional Port District.
32 xiii. An association, or not-for-profit
33 corporation, membership in which is authorized under
34 Section 85-15 of the Township Code.
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1 xiv. Drainage Districts operating under the
2 Illinois Drainage Code.
3 xv. Local mass transit districts created under the
4 Local Mass Transit District Act.
5 xvi. Soil and water conservation districts created
6 under the Soil and Water Conservation Districts Law.
7 xvii. Commissions created to provide water supply
8 or sewer services or both under Division 135 or Division
9 136 of Article 11 of the Illinois Municipal Code.
10 xviii. Public water districts created under the
11 Public Water District Act.
12 xix. Veterans Assistance Commissions established
13 under Section 9 of the Military Veterans Assistance Act
14 that serve counties with a population of less than
15 1,000,000.
16 xx. The governing body of an entity, other than a
17 vocational education cooperative, created under an
18 intergovernmental cooperative agreement established
19 between participating municipalities under the
20 Intergovernmental Cooperation Act, which by the terms of
21 the agreement is the employer of the persons performing
22 services under the agreement under the usual common law
23 rules determining the employer-employee relationship.
24 The governing body of such an intergovernmental
25 cooperative entity established prior to July 1, 1988 may
26 make participation retroactive to the effective date of
27 the agreement and, if so, the effective date of
28 participation shall be the date the required application
29 is filed with the fund. If any such entity is unable to
30 pay the required employer contributions to the fund, then
31 the participating municipalities shall make payment of
32 the required contributions and the payments shall be
33 allocated as provided in the agreement or, if not so
34 provided, equally among them.
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1 xxi. The Illinois Municipal Electric Agency.
2 xxii. The Waukegan Port District.
3 xxiii. The Fox Waterway Agency created under the
4 Fox Waterway Agency Act.
5 (c) The governing boards of special education joint
6 agreements created under Section 10-22.31 of the School Code
7 without designation of an administrative district, shall be
8 included within and be subject to this Article as
9 participating instrumentalities when the joint agreement
10 becomes effective. However, the governing board of any such
11 special education joint agreement in effect before September
12 5, 1975 shall not be subject to this Article unless the joint
13 agreement is modified by the school districts to provide that
14 the governing board is subject to this Article, except as
15 otherwise provided by this Section.
16 The governing board of the Special Education District of
17 Lake County shall become subject to this Article as a
18 participating instrumentality on July 1, 1997.
19 Notwithstanding subdivision (a)1 of Section 7-139, on the
20 effective date of participation, employees of the governing
21 board of the Special Education District of Lake County shall
22 receive creditable service for their prior service with that
23 employer, up to a maximum of 5 years, without any employee
24 contribution. Employees may establish creditable service for
25 the remainder of their prior service with that employer, if
26 any, by applying in writing and paying an employee
27 contribution in an amount determined by the Fund, based on
28 the employee contribution rates in effect at the time of
29 application for the creditable service and the employee's
30 salary rate on the effective date of participation for that
31 employer, plus interest at the effective rate from the date
32 of the prior service to the date of payment. Application for
33 this creditable service must be made before July 1, 1998; the
34 payment may be made at any time while the employee is still
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1 in service. The employer may elect to make the required
2 contribution on behalf of the employee.
3 The governing board of a special education joint
4 agreement created under Section 10-22.31 of the School Code
5 for which an administrative district has been designated, if
6 there are employees of the cooperative educational entity who
7 are not employees of the administrative district, may elect
8 to participate in the Fund and be included within this
9 Article as a participating instrumentality, subject to such
10 application procedures and rules as the Board may prescribe.
11 The Boards of Control of cooperative or joint educational
12 programs or projects created and administered under Section
13 3-15.14 of the School Code, whether or not the Boards act as
14 their own administrative district, shall be included within
15 and be subject to this Article as participating
16 instrumentalities when the agreement establishing the
17 cooperative or joint educational program or project becomes
18 effective.
19 The governing board of a special education joint
20 agreement entered into after June 30, 1984 and prior to
21 September 17, 1985 which provides for representation on the
22 governing board by less than all the participating districts
23 shall be included within and subject to this Article as a
24 participating instrumentality. Such participation shall be
25 effective as of the date the joint agreement becomes
26 effective.
27 The governing boards of educational service centers
28 established under Section 2-3.62 of the School Code shall be
29 included within and subject to this Article as participating
30 instrumentalities. The governing boards of vocational
31 education cooperative agreements created under the
32 Intergovernmental Cooperation Act and approved by the State
33 Board of Education shall be included within and be subject to
34 this Article as participating instrumentalities. If any such
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1 governing boards or boards of control are unable to pay the
2 required employer contributions to the fund, then the school
3 districts served by such boards shall make payment of
4 required contributions as provided in Section 7-172. The
5 payments shall be allocated among the several school
6 districts in proportion to the number of students in average
7 daily attendance for the last full school year for each
8 district in relation to the total number of students in
9 average attendance for such period for all districts served.
10 If such educational service centers, vocational education
11 cooperatives or cooperative or joint educational programs or
12 projects created and administered under Section 3-15.14 of
13 the School Code are dissolved, the assets and obligations
14 shall be distributed among the districts in the same
15 proportions unless otherwise provided.
16 (d) The governing boards of special recreation joint
17 agreements created under Section 8-10b of the Park District
18 Code, operating without designation of an administrative
19 district or an administrative municipality appointed to
20 administer the program operating under the authority of such
21 joint agreement shall be included within and be subject to
22 this Article as participating instrumentalities when the
23 joint agreement becomes effective. However, the governing
24 board of any such special recreation joint agreement in
25 effect before January 1, 1980 shall not be subject to this
26 Article unless the joint agreement is modified, by the
27 districts and municipalities which are parties to the
28 agreement, to provide that the governing board is subject to
29 this Article.
30 If the Board returns any employer and employee
31 contributions to any employer which erroneously submitted
32 such contributions on behalf of a special recreation joint
33 agreement, the Board shall include interest computed from the
34 end of each year to the date of payment, not compounded, at
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1 the rate of 7% per annum.
2 (e) Each multi-township assessment district, the board
3 of trustees of which has adopted this Article by ordinance
4 prior to April 1, 1982, shall be a participating
5 instrumentality included within and subject to this Article
6 effective December 1, 1981. The contributions required under
7 Section 7-172 shall be included in the budget prepared under
8 and allocated in accordance with Section 2-30 of the Property
9 Tax Code.
10 (f) Beginning January 1, 1992, each prospective
11 participating municipality or participating instrumentality
12 shall pay to the Fund the cost, as determined by the Board,
13 of a study prepared by the Fund or its actuary, detailing the
14 prospective costs of participation in the Fund to be expected
15 by the municipality or instrumentality.
16 (Source: P.A. 88-670, eff. 12-2-94, 89-162, eff. 7-19-95.)
17 (40 ILCS 5/7-139.1) (from Ch. 108 1/2, par. 7-139.1)
18 Sec. 7-139.1. General Assembly transfers and credits.
19 (a) Any active member of the General Assembly Retirement
20 System (and until June 1, 1998 February 1, 1993, any former
21 member of that System who has not yet retired) may apply for
22 transfer of his or her credits and creditable service
23 accumulated under this Fund to the General Assembly System.
24 Also, any active member of the State Employees' Retirement
25 System of Illinois who is an officer of the General Assembly
26 may apply for a similar transfer from this Fund, provided
27 that such member received credit under this Fund as an
28 elected county officer. Such credits and creditable service
29 shall be transferred forthwith. Payment by this Fund to the
30 General Assembly System or the State Employees' Retirement
31 System shall be made at the same time and shall consist of:
32 (1) the amounts accumulated to the credit of the
33 applicant, including interest, on the books of the Fund
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1 on the date of transfer, but excluding any additional or
2 optional credits, which credits shall be refunded to the
3 applicant; and
4 (2) municipality credits computed and credited
5 under Section 7-139, including interest, on the books of
6 the Fund on the date the member terminated service under
7 the Fund.
8 Participation in this Fund as to any credits transferred
9 under this Section shall terminate on the date of transfer.
10 (b) An active member of the General Assembly Retirement
11 System (and until June 1, 1998 February 1, 1993, any former
12 member of that System who has not yet retired) who has
13 service credits and creditable service under the Fund may
14 establish additional service credits and creditable service
15 for periods during which he or she was an elected official
16 and could have elected to participate but did not so elect.
17 Service credits and creditable service may be established by
18 payment to the fund of an amount equal to the contributions
19 that the applicant he would have made if he or she had
20 elected to participate, plus interest to the date of payment.
21 The limitations in subparagraph (c) of Section 7-139 of this
22 Article shall not apply to payments made under this Section.
23 (c) An active member of the General Assembly Retirement
24 System (and until June 1, 1998 February 1, 1993, any former
25 member of that System who has not yet retired) may reinstate
26 service and service credits terminated upon receipt of a
27 separation benefit, by payment to the Fund of the amount of
28 the separation benefit plus interest thereon to the date of
29 payment.
30 (d) The application of this Section is not limited to
31 persons who are in service on or after the effective date of
32 this amendatory Act of 1997.
33 (Source: P.A. 87-794.)
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1 (40 ILCS 5/7-141.1)
2 Sec. 7-141.1. Early retirement incentive.
3 (a) The General Assembly finds and declares that:
4 (1) Units of local government across the State have
5 been functioning under a financial crisis.
6 (2) This financial crisis is expected to continue.
7 (3) Units of local government must depend on
8 additional sources of revenue and, when those sources are
9 not forthcoming, must establish cost-saving programs.
10 (4) An early retirement incentive designed
11 specifically to target highly-paid senior employees could
12 result in significant annual cost savings.
13 (5) The early retirement incentive should be made
14 available only to those units of local government that
15 determine that an early retirement incentive is in their
16 best interest.
17 (6) A unit of local government adopting a program
18 of early retirement incentives under this Section is
19 encouraged to implement personnel procedures to prohibit,
20 for at least 5 years, the rehiring (whether on payroll or
21 by independent contract) of employees who receive early
22 retirement incentives.
23 (7) A unit of local government adopting a program
24 of early retirement incentives under this Section is also
25 encouraged to replace as few of the participating
26 employees as possible and to hire replacement employees
27 for salaries totaling no more than 80% of the total
28 salaries formerly paid to the employees who participate
29 in the early retirement program.
30 It is the primary purpose of this Section to encourage
31 units of local government that can realize true cost savings,
32 or have determined that an early retirement program is in
33 their best interest, to implement an early retirement
34 program.
-38- LRB9000609EGfgam30
1 (b) This Section does not apply to any employer that is
2 a city, village, or incorporated town, nor to the employees
3 of any such employer. All references in this Section to an
4 "employer" or "unit of local government" are specifically
5 intended to exclude every employer that is a city, village,
6 or incorporated town.
7 The benefits provided in this Section are available only
8 to members employed by a participating employer that has
9 filed with the Board of the Fund a resolution or ordinance
10 expressly providing for the creation of an early retirement
11 incentive program under this Section for its employees and
12 specifying the effective date of the early retirement
13 incentive program. Subject to the limitation in subsection
14 (h), an employer may adopt a resolution or ordinance
15 providing a program of early retirement incentives under this
16 Section at any time, but no more often than once in 5 years.
17 The resolution or ordinance shall be in substantially the
18 following form:
19 RESOLUTION (ORDINANCE) NO. ....
20 A RESOLUTION (ORDINANCE) ADOPTING AN EARLY
21 RETIREMENT INCENTIVE PROGRAM FOR EMPLOYEES
22 IN THE ILLINOIS MUNICIPAL RETIREMENT FUND
23 WHEREAS, Section 7-141.1 of the Illinois Pension Code
24 provides that a participating employer may elect to adopt an
25 early retirement incentive program offered by the Illinois
26 Municipal Retirement Fund by adopting a resolution or
27 ordinance; and
28 WHEREAS, The goal of adopting an early retirement program
29 is to realize a substantial savings in personnel costs by
30 offering early retirement incentives to employees who have
31 accumulated many years of service credit; and
32 WHEREAS, Implementation of the early retirement program
33 will provide a budgeting tool to aid in controlling payroll
34 costs; and
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1 WHEREAS, The (name of governing body) has determined that
2 the adoption of an early retirement incentive program is in
3 the best interests of the (name of participating employer);
4 therefore be it
5 RESOLVED (ORDAINED) by the (name of governing body) of
6 (name of participating employer) that:
7 (1) The (name of participating employer) does hereby
8 adopt the Illinois Municipal Retirement Fund early retirement
9 incentive program as provided in Section 7-141.1 of the
10 Illinois Pension Code. The early retirement incentive
11 program shall take effect on (date).
12 (2) In order to help achieve a true cost savings, a
13 person who retires under the early retirement incentive
14 program shall lose those incentives if he or she later
15 accepts employment with any IMRF employer in a position for
16 which participation in IMRF is required or is elected by the
17 employee.
18 (3) In order to utilize an early retirement incentive as
19 a budgeting tool, the (name of participating employer) will
20 use its best efforts either to limit the number of employees
21 who replace the employees who retire under the early
22 retirement program or to limit the salaries paid to the
23 employees who replace the employees who retire under the
24 early retirement program.
25 (4) The effective date of each employee's retirement
26 under this early retirement program shall be set by (name of
27 employer) and shall be no earlier than the effective date of
28 the program and no later than one year after that effective
29 date; except that the employee may require that the
30 retirement date set by the employer be no later than the June
31 30 next occurring after the effective date of the program and
32 no earlier than the date upon which the employee qualifies
33 for retirement.
34 (5) To be eligible for the early retirement incentive
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1 under this Section, the employee must have attained age 50
2 and have at least 20 years of creditable service by his or
3 her retirement date.
4 (6) The (clerk or secretary) shall promptly file a
5 certified copy of this resolution (ordinance) with the Board
6 of Trustees of the Illinois Municipal Retirement Fund.
7 CERTIFICATION
8 I, (name), the (clerk or secretary) of the (name of
9 participating employer) of the County of (name), State of
10 Illinois, do hereby certify that I am the keeper of the books
11 and records of the (name of employer) and that the foregoing
12 is a true and correct copy of a resolution (ordinance) duly
13 adopted by the (governing body) at a meeting duly convened
14 and held on (date).
15 SEAL
16 (Signature of clerk or secretary)
17 (c) To be eligible for the benefits provided under an
18 early retirement incentive program adopted under this
19 Section, a member must:
20 (1) be a participating employee of this Fund who,
21 on the effective date of the program, (i) is in active
22 payroll status as an employee of a participating employer
23 that has filed the required ordinance or resolution with
24 the Board, (ii) is on layoff status from such a position
25 with a right of re-employment or recall to service, (iii)
26 is on a leave of absence from such a position, or (iv) is
27 on disability but has not been receiving benefits under
28 Section 7-146 or 7-150 for a period of more than 2 years
29 from the date of application;
30 (2) have never previously received a retirement
31 annuity under this Article or under the Retirement
32 Systems Reciprocal Act using service credit established
33 under this Article;
34 (3) file with the Board within 60 days of the
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1 effective date of the program an application requesting
2 the benefits provided in this Section;
3 (4) have at least 20 years of creditable service in
4 the Fund by the date of retirement, without the use of
5 any creditable service established under this Section;
6 (5) have attained age 50 by the date of retirement,
7 without the use of any age enhancement received under
8 this Section; and
9 (6) be eligible to receive a retirement annuity
10 under this Article by the date of retirement, for which
11 purpose the age enhancement and creditable service
12 established under this Section may be considered.
13 (d) The employer shall determine the retirement date for
14 each employee participating in the early retirement program
15 adopted under this Section. The retirement date shall be no
16 earlier than the effective date of the program and no later
17 than one year after that effective date, except that the
18 employee may require that the retirement date set by the
19 employer be no later than the June 30 next occurring after
20 the effective date of the program and no earlier than the
21 date upon which the employee qualifies for retirement. The
22 employer shall give each employee participating in the early
23 retirement program at least 30 days written notice of the
24 employee's designated retirement date, unless the employee
25 waives this notice requirement.
26 (e) An eligible person may establish up to 5 years of
27 creditable service under this Section. In addition, for each
28 period of creditable service established under this Section,
29 a person shall have his or her age at retirement deemed
30 enhanced by an equivalent period.
31 The creditable service established under this Section may
32 be used for all purposes under this Article and the
33 Retirement Systems Reciprocal Act, except for the computation
34 of final rate of earnings and the determination of earnings,
-42- LRB9000609EGfgam30
1 salary, or compensation under this or any other Article of
2 the Code.
3 The age enhancement established under this Section may be
4 used for all purposes under this Article (including
5 calculation of the reduction imposed under subdivision
6 (a)1b(iv) of Section 7-142), except for purposes of a
7 reversionary annuity under Section 7-145 and any
8 distributions required because of age. The age enhancement
9 established under this Section may be used in calculating a
10 proportionate annuity payable by this Fund under the
11 Retirement Systems Reciprocal Act, but shall not be used in
12 determining benefits payable under other Articles of this
13 Code under the Retirement Systems Reciprocal Act.
14 (f) For all creditable service established under this
15 Section, the member must pay to the Fund an employee
16 contribution consisting of 4.5% of the member's highest
17 annual salary rate used in the determination of the final
18 rate of earnings for retirement annuity purposes for each
19 year of creditable service granted under this Section. For
20 creditable service established under this Section by a person
21 who is a sheriff's law enforcement employee to be deemed
22 service as a sheriff's law enforcement employee, the employee
23 contribution shall be at the rate of 6.5% of highest annual
24 salary per year of creditable service granted. Contributions
25 for fractions of a year of service shall be prorated. Any
26 amounts that are disregarded in determining the final rate of
27 earnings under subdivision (d)(5) of Section 7-116 (the 125%
28 rule) shall also be disregarded in determining the required
29 contribution under this subsection (f).
30 The employee contribution shall be paid to the Fund as
31 follows: If the member is entitled to a lump sum payment for
32 accumulated vacation, sick leave, or personal leave upon
33 withdrawal from service, the employer shall deduct the
34 employee contribution from that lump sum and pay the deducted
-43- LRB9000609EGfgam30
1 amount directly to the Fund. If there is no such lump sum
2 payment or the required employee contribution exceeds the net
3 amount of the lump sum payment, then the remaining amount
4 due, at the option of the employee, may either be paid to the
5 Fund before the annuity commences or deducted from the
6 retirement annuity in 24 equal monthly installments.
7 (g) An annuitant who has received any age enhancement or
8 creditable service under this Section and thereafter accepts
9 employment with or enters into a personal services contract
10 with an employer under this Article thereby forfeits that age
11 enhancement and creditable service. A person forfeiting
12 early retirement incentives under this subsection (i) must
13 repay to the Fund that portion of the retirement annuity
14 already received which is attributable to the early
15 retirement incentives that are being forfeited, (ii) shall
16 not be eligible to participate in any future early retirement
17 program adopted under this Section, and (iii) is entitled to
18 a refund of the employee contribution paid under subsection
19 (f). The Board shall deduct the required repayment from the
20 refund and may impose a reasonable payment schedule for
21 repaying the amount, if any, by which the required repayment
22 exceeds the refund amount.
23 (h) The additional unfunded liability accruing as a
24 result of the adoption of a program of early retirement
25 incentives under this Section by an employer shall be
26 amortized over a period of 10 years beginning on January 1 of
27 the second calendar year following the calendar year in which
28 the latest date for beginning to receive a retirement annuity
29 under the program (as determined by the employer under
30 subsection (d) of this Section) occurs; except that the
31 employer may provide for a shorter amortization period (of no
32 less than 5 years) by adopting an ordinance or resolution
33 specifying the length of the amortization period and
34 submitting a certified copy of the ordinance or resolution to
-44- LRB9000609EGfgam30
1 the Fund no later than 6 months after the effective date of
2 the program. An employer, at its discretion, may accelerate
3 payments to the Fund.
4 An employer may provide more than one early retirement
5 incentive program for its employees under this Section.
6 However, an employer that has provided an early retirement
7 incentive program for its employees under this Section may
8 not provide another early retirement incentive program under
9 this Section until (1) the liability arising from the earlier
10 program has been fully paid to the Fund and (2) at least 6
11 years have elapsed from the effective date of the previous
12 program.
13 (Source: P.A. 89-329, eff. 8-17-95.)
14 (40 ILCS 5/7-171) (from Ch. 108 1/2, par. 7-171)
15 Sec. 7-171. Finance; taxes.
16 (a) Each municipality other than a school district shall
17 appropriate an amount sufficient to provide for the current
18 municipality contributions required by Section 7-172 of this
19 Article, for the fiscal year for which the appropriation is
20 made and all amounts due for municipal contributions for
21 previous years. Those municipalities which have been assessed
22 an annual amount to amortize its unfunded obligation, as
23 provided in subparagraph 5 of paragraph (a) of Section 7-172
24 of this Article, shall include in the appropriation an amount
25 sufficient to pay the amount assessed. The appropriation
26 shall be based upon an estimate of assets available for
27 municipality contributions and liabilities therefor for the
28 fiscal year for which appropriations are to be made,
29 including funds available from levies for this purpose in
30 prior years.
31 (b) For the purpose of providing monies for municipality
32 contributions, beginning for the year in which a municipality
33 is included in this fund:
-45- LRB9000609EGfgam30
1 (1) A municipality other than a school district may
2 levy a tax which shall not exceed the amount appropriated
3 for municipality contributions.
4 (2) A school district may levy a tax in an amount
5 reasonably calculated at the time of the levy to provide
6 for the municipality contributions required under Section
7 7-172 of this Article for the fiscal years for which
8 revenues from the levy will be received and all amounts
9 due for municipal contributions for previous years. Any
10 levy adopted before the effective date of this amendatory
11 Act of 1995 by a school district shall be considered
12 valid and authorized to the extent that the amount was
13 reasonably calculated at the time of the levy to provide
14 for the municipality contributions required under Section
15 7-172 for the fiscal years for which revenues from the
16 levy will be received and all amounts due for municipal
17 contributions for previous years. In no event shall a
18 budget adopted by a school district limit a levy of that
19 school district adopted under this Section.
20 (c) Any county which is a part of an educational service
21 region comprised of two or more counties formed under Section
22 3A of The School Code may include in its appropriation an
23 amount sufficient to provide its proportionate share of the
24 municipality contributions of the region. The tax levy
25 authorized by this Section may include an amount necessary to
26 provide monies for this contribution.
27 (d) Any county that is a part of a multiple-county
28 health department or consolidated health department which is
29 formed under "An Act in relation to the establishment and
30 maintenance of county and multiple-county public health
31 departments", approved July 9, 1943, as amended, and which is
32 a participating instrumentality may include in the county's
33 appropriation an amount sufficient to provide its
34 proportionate share of municipality contributions of the
-46- LRB9000609EGfgam30
1 department. The tax levy authorized by this Section may
2 include the amount necessary to provide monies for this
3 contribution.
4 (d-5) A school district participating in a special
5 education joint agreement created under Section 10-22.31 of
6 the School Code that is a participating instrumentality may
7 include in the school district's tax levy under this Section
8 an amount sufficient to provide its proportionate share of
9 the municipality contributions for current and prior service
10 by employees of the participating instrumentality created
11 under the joint agreement.
12 (e) Such tax shall be levied and collected in like
13 manner, with the general taxes of the municipality and shall
14 be in addition to all other taxes which the municipality is
15 now or may hereafter be authorized to levy upon all taxable
16 property therein, and shall be exclusive of and in addition
17 to the amount of tax levied for general purposes under
18 Section 8-3-1 of the "Illinois Municipal Code", approved May
19 29, 1961, as amended, or under any other law or laws which
20 may limit the amount of tax which the municipality may levy
21 for general purposes. The tax may be levied by the governing
22 body of the municipality without being authorized as being
23 additional to all other taxes by a vote of the people of the
24 municipality.
25 (f) The county clerk of the county in which any such
26 municipality is located, in reducing tax levies shall not
27 consider any such tax as a part of the general tax levy for
28 municipality purposes, and shall not include the same in the
29 limitation of any other tax rate which may be extended.
30 (g) The amount of the tax to be levied in any year
31 shall, within the limits herein prescribed, be determined by
32 the governing body of the respective municipality.
33 (h) The revenue derived from any such tax levy shall be
34 used only for the purposes specified in this Article, and, as
-47- LRB9000609EGfgam30
1 collected, shall be paid to the treasurer of the municipality
2 levying the tax. Monies received by a county treasurer for
3 use in making contributions to a consolidated educational
4 service region for its municipality contributions shall be
5 held by him for that purpose and paid to the region in the
6 same manner as other monies appropriated for the expense of
7 the region.
8 (Source: P.A. 89-329, eff. 8-17-95.)
9 (40 ILCS 5/8-138) (from Ch. 108 1/2, par. 8-138)
10 Sec. 8-138. Minimum annuities - Additional provisions.
11 (a) An employee who withdraws after age 65 or more with
12 at least 20 years of service, for whom the amount of age and
13 service and prior service annuity combined is less than the
14 amount stated in this Section, shall from the date of
15 withdrawal, instead of all annuities otherwise provided, be
16 entitled to receive an annuity for life of $150 a year, plus
17 1 1/2% for each year of service, to and including 20 years,
18 and 1 2/3% for each year of service over 20 years, of his
19 highest average annual salary for any 4 consecutive years
20 within the last 10 years of service immediately preceding the
21 date of withdrawal.
22 An employee who withdraws after 20 or more years of
23 service, before age 65, shall be entitled to such annuity, to
24 begin not earlier than upon attained age of 55 years if under
25 such age at withdrawal, reduced by 2% for each full year or
26 fractional part thereof that his attained age is less than
27 65, plus an additional 2% reduction for each full year or
28 fractional part thereof that his attained age when annuity is
29 to begin is less than 60 so that the total reduction at age
30 55 shall be 30%.
31 (b) An employee who withdraws after July 1, 1957, at age
32 60 or over, with 20 or more years of service, for whom the
33 age and service and prior service annuity combined, is less
-48- LRB9000609EGfgam30
1 than the amount stated in this paragraph, shall, from the
2 date of withdrawal, instead of such annuities, be entitled to
3 receive an annuity for life equal to 1 2/3% for each year of
4 service, of the highest average annual salary for any 5
5 consecutive years within the last 10 years of service
6 immediately preceding the date of withdrawal; provided, that
7 in the case of any employee who withdraws on or after July 1,
8 1971, such employee age 60 or over with 20 or more years of
9 service, shall receive an annuity for life equal to 1.67% for
10 each of the first 10 years of service; 1.90% for each of the
11 next 10 years of service; 2.10% for each year of service in
12 excess of 20 but not exceeding 30; and 2.30% for each year of
13 service in excess of 30, based on the highest average annual
14 salary for any 4 consecutive years within the last 10 years
15 of service immediately preceding the date of withdrawal.
16 An employee who withdraws after July 1, 1957 and before
17 January 1, 1988, with 20 or more years of service, before age
18 60 years is entitled to annuity, to begin not earlier than
19 upon attained age of 55 years, if under such age at
20 withdrawal, as computed in the last preceding paragraph,
21 reduced 0.25% for each full month or fractional part thereof
22 that his attained age when annuity is to begin is less than
23 60 if the employee was born before January 1, 1936, or 0.5%
24 for each such month if the employee was born on or after
25 January 1, 1936.
26 Any employee born before January 1, 1936, who withdraws
27 with 20 or more years of service, and any employee with 20 or
28 more years of service who withdraws on or after January 1,
29 1988, may elect to receive, in lieu of any other employee
30 annuity provided in this Section, an annuity for life equal
31 to 1.80% for each of the first 10 years of service, 2.00% for
32 each of the next 10 years of service, 2.20% for each year of
33 service in excess of 20 but not exceeding 30, and 2.40% for
34 each year of service in excess of 30, of the highest average
-49- LRB9000609EGfgam30
1 annual salary for any 4 consecutive years within the last 10
2 years of service immediately preceding the date of
3 withdrawal, to begin not earlier than upon attained age of 55
4 years, if under such age at withdrawal, reduced 0.25% for
5 each full month or fractional part thereof that his attained
6 age when annuity is to begin is less than 60; except that an
7 employee retiring on or after January 1, 1988, at age 55 or
8 over but less than age 60, having at least 35 years of
9 service, or an employee retiring on or after July 1, 1990, at
10 age 55 or over but less than age 60, having at least 30 years
11 of service, or an employee retiring on or after the effective
12 date of this amendatory Act of 1997, at age 55 or over but
13 less than age 60, having at least 25 years of service, shall
14 not be subject to the reduction in retirement annuity because
15 of retirement below age 60.
16 However, in the case of an employee who retired on or
17 after January 1, 1985 but before January 1, 1988, at age 55
18 or older and with at least 35 years of service, and who was
19 subject under this subsection (b) to the reduction in
20 retirement annuity because of retirement below age 60, that
21 reduction shall cease to be effective January 1, 1991, and
22 the retirement annuity shall be recalculated accordingly.
23 Any employee who withdraws on or after July 1, 1990, with
24 20 or more years of service, may elect to receive, in lieu of
25 any other employee annuity provided in this Section, an
26 annuity for life equal to 2.20% for each year of service of
27 the highest average annual salary for any 4 consecutive years
28 within the last 10 years of service immediately preceding the
29 date of withdrawal, to begin not earlier than upon attained
30 age of 55 years, if under such age at withdrawal, reduced
31 0.25% for each full month or fractional part thereof that his
32 attained age when annuity is to begin is less than 60; except
33 that an employee retiring at age 55 or over but less than age
34 60, having at least 30 years of service, shall not be subject
-50- LRB9000609EGfgam30
1 to the reduction in retirement annuity because of retirement
2 below age 60.
3 Any employee who withdraws on or after the effective date
4 of this amendatory Act of 1997 with 20 or more years of
5 service may elect to receive, in lieu of any other employee
6 annuity provided in this Section, an annuity for life equal
7 to 2.20%, for each year of service, of the highest average
8 annual salary for any 4 consecutive years within the last 10
9 years of service immediately preceding the date of
10 withdrawal, to begin not earlier than upon attainment of age
11 55 (age 50 if the employee has at least 30 years of service),
12 reduced 0.25% for each full month or remaining fractional
13 part thereof that the employee's attained age when annuity is
14 to begin is less than 60; except that an employee retiring at
15 age 50 or over with at least 30 years of service or at age 55
16 or over with at least 25 years of service shall not be
17 subject to the reduction in retirement annuity because of
18 retirement below age 60.
19 The maximum annuity payable under part (a) and (b) of
20 this Section shall not exceed 70% of highest average annual
21 salary in the case of an employee who withdraws prior to July
22 1, 1971, and 75% if withdrawal takes place on or after July
23 1, 1971. For the purpose of the minimum annuity provided in
24 this Section $1,500 is considered the minimum annual salary
25 for any year; and the maximum annual salary for the
26 computation of such annuity is $4,800 for any year before
27 1953, $6000 for the years 1953 to 1956, inclusive, and the
28 actual annual salary, as salary is defined in this Article,
29 for any year thereafter.
30 To preserve rights existing on December 31, 1959, for
31 participants and contributors on that date to the fund
32 created by the Court and Law Department Employees' Annuity
33 Act, who became participants in the fund provided for on
34 January 1, 1960, the maximum annual salary to be considered
-51- LRB9000609EGfgam30
1 for such persons for the years 1955 and 1956 is $7,500.
2 (c) For an employee receiving disability benefit, his
3 salary for annuity purposes under paragraphs (a) and (b) of
4 this Section, for all periods of disability benefit
5 subsequent to the year 1956, is the amount on which his
6 disability benefit was based.
7 (d) An employee with 20 or more years of service, whose
8 entire disability benefit credit period expires before
9 attainment of age 55 while still disabled for service, is
10 entitled upon withdrawal to the larger of (1) the minimum
11 annuity provided above, assuming he is then age 55, and
12 reducing such annuity to its actuarial equivalent as of his
13 attained age on such date or (2) the annuity provided from
14 his age and service and prior service annuity credits.
15 (e) The minimum annuity provisions do not apply to any
16 former municipal employee receiving an annuity from the fund
17 who re-enters service as a municipal employee, unless he
18 renders at least 3 years of additional service after the date
19 of re-entry.
20 (f) An employee in service on July 1, 1947, or who
21 became a contributor after July 1, 1947 and before attainment
22 of age 70, who withdraws after age 65, with less than 20
23 years of service for whom the annuity has been fixed under
24 this Article shall, instead of the annuity so fixed, receive
25 an annuity as follows:
26 Such amount as he could have received had the accumulated
27 amounts for annuity been improved with interest at the
28 effective rate to the date of his withdrawal, or to
29 attainment of age 70, whichever is earlier, and had the city
30 contributed to such earlier date for age and service annuity
31 the amount that it would have contributed had he been under
32 age 65, after the date his annuity was fixed in accordance
33 with this Article, and assuming his annuity were computed
34 from such accumulations as of his age on such earlier date.
-52- LRB9000609EGfgam30
1 The annuity so computed shall not exceed the annuity which
2 would be payable under the other provisions of this Section
3 if the employee was credited with 20 years of service and
4 would qualify for annuity thereunder.
5 (g) Instead of the annuity provided in this Article, an
6 employee having attained age 65 with at least 15 years of
7 service who withdraws from service on or after July 1, 1971
8 and whose annuity computed under other provisions of this
9 Article is less than the amount provided under this
10 paragraph, is entitled to a minimum annuity for life equal to
11 1% of the highest average annual salary, as salary is defined
12 and limited in this Section for any 4 consecutive years
13 within the last 10 years of service for each year of service,
14 plus the sum of $25 for each year of service. The annuity
15 shall not exceed 60% of such highest average annual salary.
16 (h) The minimum annuities provided under this Section
17 shall be paid in equal monthly installments.
18 (i) The amendatory provisions of part (b) and (g) of
19 this Section shall be effective July 1, 1971 and apply in the
20 case of every qualifying employee withdrawing on or after
21 July 1, 1971.
22 (j) The amendatory provisions of this amendatory Act of
23 1985 (P.A. 84-23) relating to the discount of annuity because
24 of retirement prior to attainment of age 60, and to the
25 retirement formula, for those born before January 1, 1936,
26 shall apply only to qualifying employees withdrawing on or
27 after July 18, 1985.
28 (k) Beginning on the effective date of this amendatory
29 Act of 1997 January 1, 1991, the minimum amount of employee's
30 annuity shall be $550 $350 per month for life for the
31 following classes of employees, without regard to the fact
32 that withdrawal occurred prior to the effective date of this
33 amendatory Act of 1997 January 1, 1991:
34 (1) any employee annuitant alive and receiving a
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1 life annuity on the effective date of this amendatory Act
2 of 1997 January 1, 1991, except a reciprocal annuity;
3 (2) any employee annuitant alive and receiving a
4 term annuity on the effective date of this amendatory Act
5 of 1997 January 1, 1991, except a reciprocal annuity;
6 (3) any employee annuitant alive and receiving a
7 reciprocal annuity on the effective date of this
8 amendatory Act of 1997 January 1, 1991, whose service in
9 this fund is at least 5 years;
10 (4) any employee annuitant withdrawing after age 60
11 on or after the effective date of this amendatory Act of
12 1997 January 1, 1991, with at least 10 years of service
13 in this fund.
14 The increases granted under items (1), (2) and (3) of
15 this subsection (k) shall not be limited by any other Section
16 of this Act.
17 (Source: P.A. 85-964; 86-1488.)
18 (40 ILCS 5/8-138.3 new)
19 Sec. 8-138.3. Early retirement incentive.
20 (a) To be eligible for the benefits provided in this
21 Section, an employee must:
22 (1) be a current contributor to the Fund who, on
23 November 1, 1997, is (i) in active payroll status as an
24 employee or (ii) receiving ordinary or duty disability
25 benefits under Section 8-160 or 8-161;
26 (2) have not previously retired under this Article;
27 (3) file with the Board before June 1, 1998, a
28 written application requesting the benefits provided in
29 this Section;
30 (4) withdraw from service on or after December 31,
31 1997 and on or before June 30, 1998; and
32 (5) by the date of withdrawal: (i) have attained
33 age 55 with at least 10 years of creditable service in
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1 this Fund and a total of at least 15 years of creditable
2 service in one or more of the participating systems under
3 the Retirement Systems Reciprocal Act, without including
4 any creditable service established under this Section; or
5 (ii) have attained age 50 with at least 10 years of
6 creditable service in this Fund and a total of at least
7 30 years of creditable service in one or more of the
8 participating systems under the Retirement Systems
9 Reciprocal Act, without including any creditable service
10 established under this Section.
11 A person is not eligible for the benefits provided in
12 this Section if the person (i) elects to receive the
13 alternative annuity for city officers under Section 8-243.2,
14 or (ii) elects to receive a retirement annuity calculated
15 under the alternative formula formerly set forth in Section
16 20-122.
17 (b) An eligible employee may establish up to 5 years of
18 creditable service under this Section, in increments of one
19 month, by making the contributions specified in subsection
20 (d). An eligible person must establish at least the amount
21 of creditable service necessary to bring his or her total
22 creditable service, including service in this Fund, service
23 established under this Section, and service in any of the
24 other participating systems under the Retirement Systems
25 Reciprocal Act, to a minimum of 20 years.
26 The creditable service under this Section may be used for
27 all purposes under this Article and the Retirement Systems
28 Reciprocal Act, except for the computation of average annual
29 salary and the determination of salary, earnings, or
30 compensation under this or any other Article of this Code.
31 (c) An eligible employee shall be entitled to have his
32 or her retirement annuity calculated in accordance with the
33 formula provided in Section 8-138, but with the following
34 exceptions:
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1 (1) The annuity shall not be subject to reduction
2 because of withdrawal or commencement of the annuity
3 before attainment of age 60.
4 (2) The annuity shall be subject to a maximum of
5 80% of the employee's highest average annual salary for
6 any 4 consecutive years within the last 10 years of
7 service, rather than the 75% maximum otherwise provided
8 in Section 8-138.
9 (d) For each month of creditable service established
10 under this Section, the employee must pay to the Fund an
11 employee contribution, to be calculated by the Fund, equal to
12 4.25% of the member's monthly salary rate on November 1,
13 1997. The employee may elect to pay the entire contribution
14 before the retirement annuity commences, or to have it
15 deducted from the annuity over a period not longer than 24
16 months. If the retired employee dies before the contribution
17 has been paid in full, the unpaid installments may be
18 deducted from any annuity or other benefit payable to the
19 employee's survivors.
20 All employee contributions paid under this Section shall
21 be deemed contributions made by employees for annuity
22 purposes under Section 8-173, and shall be made and credited
23 to a special reserve, without interest. Employee
24 contributions paid under this Section may be refunded under
25 the same terms and conditions as are applicable to other
26 employee contributions for retirement annuity.
27 (e) Notwithstanding Section 8-165, an annuitant who
28 reenters service under this Article after receiving a
29 retirement annuity based on benefits provided under this
30 Section thereby forfeits the right to continue to receive
31 those benefits, and shall have his or her retirement annuity
32 recalculated at the appropriate time without the benefits
33 provided in this Section.
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1 (40 ILCS 5/8-150.1) (from Ch. 108 1/2, par. 8-150.1)
2 Sec. 8-150.1. Minimum annuities for widows. The widow
3 (otherwise eligible for widow's annuity under other Sections
4 of this Article 8) of an employee hereinafter described, who
5 retires from service or dies while in the service subsequent
6 to the effective date of this amendatory provision, and for
7 which widow the amount of widow's annuity and widow's prior
8 service annuity combined, fixed or provided for such widow
9 under other provisions of this Article is less than the
10 amount provided in this Section, shall, from and after the
11 date her otherwise provided annuity would begin, in lieu of
12 such otherwise provided widow's and widow's prior service
13 annuity, be entitled to the following indicated amount of
14 annuity:
15 (a) The widow of any employee who dies while in service
16 on or after the date on which he attains age 60 if the death
17 occurs before July 1, 1990, or on or after the date on which
18 he attains age 55 if the death occurs on or after July 1,
19 1990, with at least 20 years of service, or on or after the
20 date on which he attains age 50 if the death occurs on or
21 after the effective date of this amendatory Act of 1997 with
22 at least 30 years of service, shall be entitled to an annuity
23 equal to one-half of the amount of annuity which her deceased
24 husband would have been entitled to receive had he withdrawn
25 from the service on the day immediately preceding the date of
26 his death, conditional upon such widow having attained the
27 age of 60 or more years on such date if the death occurs
28 before July 1, 1990, or age 55 or more if the death occurs on
29 or after July 1, 1990. Except as provided in subsection (k),
30 this such amount of widow's annuity shall not, however,
31 exceed the sum of $500 a month if the employee's death in
32 service occurs before January 23, 1987. The widow's annuity
33 shall not be limited to a maximum dollar amount if the
34 employee's death in service occurs on or after January 23,
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1 1987.
2 If the employee dies in service before July 1, 1990, and
3 if such widow of such described employee shall not be 60 or
4 more years of age on such date of death, the amount provided
5 in the immediately preceding paragraph for a widow 60 or more
6 years of age, shall, in the case of such younger widow, be
7 reduced by 0.25% for each month that her then attained age is
8 less than 60 years if the employee was born before January 1,
9 1936 or dies in service on or after January 1, 1988, or by
10 0.5% for each month that her then attained age is less than
11 60 years if the employee was born on or after July 1, 1936
12 and dies in service before January 1, 1988.
13 If the employee dies in service on or after July 1, 1990,
14 and if the widow of the employee has not attained age 55 on
15 or before the employee's date of death, the amount otherwise
16 provided in this subsection (a) shall be reduced by 0.25% for
17 each month that her then attained age is less than 55 years.
18 (b) The widow of any employee who dies subsequent to the
19 date of his retirement on annuity, and who so retired on or
20 after the date on which he attained the age of 60 or more
21 years if retirement occurs before July 1, 1990, or on or
22 after the date on which he attained age 55 if retirement
23 occurs on or after July 1, 1990, with at least 20 years of
24 service, or on or after the date on which he attained age 50
25 if the retirement occurs on or after the effective date of
26 this amendatory Act of 1997 with at least 30 years of
27 service, shall be entitled to an annuity equal to one-half of
28 the amount of annuity which her deceased husband received as
29 of the date of his retirement on annuity, conditional upon
30 such widow having attained the age of 60 or more years on the
31 date of her husband's retirement on annuity if retirement
32 occurs before July 1, 1990, or age 55 or more if retirement
33 occurs on or after July 1, 1990. Except as provided in
34 subsection (k), this such amount of widow's annuity shall
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1 not, however, exceed the sum of $500 a month if the
2 employee's death occurs before January 23, 1987. The widow's
3 annuity shall no