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91_SB1517 LRB9112170EGfg 1 AN ACT to amend the Illinois Pension Code and the State 2 Mandates Act. 3 Be it enacted by the People of the State of Illinois, 4 represented in the General Assembly: 5 Section 5. The Illinois Pension Code is amended by 6 changing Section 8-243.2 as follows: 7 (40 ILCS 5/8-243.2) (from Ch. 108 1/2, par. 8-243.2) 8 Sec. 8-243.2. Alternative annuity for city officers. 9 (a) For the purposes of this Section and Sections 10 8-243.1 and 8-243.3, "city officer" means the city clerk, the 11 city treasurer, or an alderman of the city elected by vote of 12 the people, while serving in that capacity or as provided in 13 subsection (f), who has elected to participate in the Fund. 14 (b) Any elected city officer, while serving in that 15 capacity or as provided in subsection (f), may elect to 16 establish alternative credits for an alternative annuity by 17 electing in writing to make additional optional 18 contributions in accordance with this Section and the 19 procedures established by the board. Such elected city 20 officer may discontinue making the additional optional 21 contributions by notifying the Fund in writing in accordance 22 with this Section and procedures established by the board. 23 Additional optional contributions for the alternative 24 annuity shall be as follows: 25 (1) For service after the option is elected, an 26 additional contribution of 3% of salary shall be 27 contributed to the Fund on the same basis and under the 28 same conditions as contributions required under Sections 29 8-174 and 8-182. 30 (2) For service before the option is elected, an 31 additional contribution of 3% of the salary for the -2- LRB9112170EGfg 1 applicable period of service, plus interest at the 2 effective rate from the date of service to the date of 3 payment. All payments for past service must be paid in 4 full before credit is given. No additional optional 5 contributions may be made for any period of service for 6 which credit has been previously forfeited by acceptance 7 of a refund, unless the refund is repaid in full with 8 interest at the effective rate from the date of refund to 9 the date of repayment. 10 (c) In lieu of the retirement annuity otherwise payable 11 under this Article, any city officer elected by vote of the 12 people who (1) has elected to participate in the Fund and 13 make additional optional contributions in accordance with 14 this Section, and (2) has attained age 55
60with at least 10 15 years of service credit, or has attained age 60 65with at 16 least 8 years of service credit, may elect to have his 17 retirement annuity computed as follows: 3% of the 18 participant's salary at the time of termination of service 19 for each of the first 8 years of service credit, plus 4% of 20 such salary for each of the next 4 years of service credit, 21 plus 5% of such salary for each year of service credit in 22 excess of 12 years, subject to a maximum of 80% of such 23 salary. To the extent such elected city officer has made 24 additional optional contributions with respect to only a 25 portion of his years of service credit, his retirement 26 annuity will first be determined in accordance with this 27 Section to the extent such additional optional contributions 28 were made, and then in accordance with the remaining Sections 29 of this Article to the extent of years of service credit with 30 respect to which additional optional contributions were not 31 made. 32 (d) In lieu of the disability benefits otherwise payable 33 under this Article, any city officer elected by vote of the 34 people who (1) has elected to participate in the Fund, and -3- LRB9112170EGfg 1 (2) has become permanently disabled and as a consequence is 2 unable to perform the duties of his office, and (3) was 3 making optional contributions in accordance with this Section 4 at the time the disability was incurred, may elect to receive 5 a disability annuity calculated in accordance with the 6 formula in subsection (c). For the purposes of this 7 subsection, such elected city officer shall be considered 8 permanently disabled only if: (i) disability occurs while in 9 service as an elected city officer and is of such a nature as 10 to prevent him from reasonably performing the duties of his 11 office at the time; and (ii) the board has received a written 12 certification by at least 2 licensed physicians appointed by 13 it stating that such officer is disabled and that the 14 disability is likely to be permanent. 15 (e) Refunds of additional optional contributions shall 16 be made on the same basis and under the same conditions as 17 provided under Sections 8-168, 8-170 and 8-171. Interest 18 shall be credited at the effective rate on the same basis and 19 under the same conditions as for other contributions. 20 Optional contributions shall be accounted for in a separate 21 Elected City Officer Optional Contribution Reserve. Optional 22 contributions under this Section shall be included in the 23 amount of employee contributions used to compute the tax levy 24 under Section 8-173. 25 (f) The effective date of this plan of optional 26 alternative benefits and contributions shall be July 1, 1990, 27 or the date upon which approval is received from the U.S. 28 Internal Revenue Service, whichever is later. 29 The plan of optional alternative benefits and 30 contributions shall not be available to any former city 31 officer or employee receiving an annuity from the Fund on the 32 effective date of the plan, unless he re-enters service as an 33 elected city officer and renders at least 3 years of 34 additional service after the date of re-entry. However, a -4- LRB9112170EGfg 1 person who holds office as a city officer on June 1, 1995 2 April 30, 1991may elect to participate in the plan, to 3 transfer credits into the Fund from other Articles of this 4 Code, and to make the contributions required for prior 5 service, until 30 days after the effective date of this 6 amendatory Act of the 91st General Assembly the plan takes7 effect, notwithstanding the ending of his term of office 8 prior to that effective date; in the event that the person is 9 already receiving an annuity from this Fund or any other 10 Article of this Code at the time of making this election, the 11 annuity shall be recalculated to include any increase 12 resulting from participation in the plan, with such increase 13 taking effect on the effective date of the election plan. 14 (Source: P.A. 86-1488; 87-794.) 15 Section 90. The State Mandates Act is amended by adding 16 Section 8.24 as follows: 17 (30 ILCS 805/8.24 new) 18 Sec. 8.24. Exempt mandate. Notwithstanding Sections 6 19 and 8 of this Act, no reimbursement by the State is required 20 for the implementation of any mandate created by this 21 amendatory Act of the 91st General Assembly. 22 Section 99. Effective date. This Act takes effect upon 23 becoming law.
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