Illinois General Assembly

Previous General Assemblies

Public Act 097-0894


 

Public Act 0894 97TH GENERAL ASSEMBLY

  
  
  

 


 
Public Act 097-0894
 
HB4513 EnrolledLRB097 19245 EFG 64487 b

    AN ACT concerning public employee benefits.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Illinois Pension Code is amended by changing
Sections 13-502 and 13-503 as follows:
 
    (40 ILCS 5/13-502)  (from Ch. 108 1/2, par. 13-502)
    Sec. 13-502. Employee contributions; deductions from
salary.
    (a) Retirement annuity and child's annuity. Except as
otherwise provided in this Section, there There shall be
deducted from each payment of salary an amount equal to 7% of
salary as the employee's contribution for the retirement
annuity, including child's annuity, and 0.5% of salary as the
employee's contribution for annual increases to the retirement
annuity.
    (a-1) For employees who first became a member or
participant before January 1, 2011 under any reciprocal
retirement system or pension fund established under this Code
other than a retirement system or pension fund established
under Article 2, 3, 4, 5, 6, or 18 of this Code:
        (1) beginning with the first pay period paid on or
    after January 1, 2013 and ending with the last pay period
    paid on or before December 31, 2013, employee contributions
    shall be 7.5% for the retirement annuity and 1.0% for
    annual increases for a total of 8.5%;
        (2) beginning with the first pay period paid on or
    after January 1, 2014 and ending with the last pay period
    paid on or before December 31, 2014, employee contributions
    shall be 8.0% for the retirement annuity and 1.5% for
    annual increases for a total of 9.5%;
        (3) beginning with the first pay period paid on or
    after January 1, 2015 and ending with the last pay period
    paid on or before the date when the funded ratio of the
    Fund is first determined to have reached the 90% funding
    goal, employee contributions shall be 8.5% for the
    retirement annuity and 1.5% for annual increases for a
    total of 10.0%; and
        (4) beginning with the first pay period paid on or
    after the date when the funded ratio of the Fund is first
    determined to have reached the 90% funding goal, and each
    pay period paid thereafter, employee contributions shall
    be 7.0% for the retirement annuity and 0.5% for annual
    increases for a total of 7.5%.
    (b) Surviving spouse's annuity. There shall be deducted
from each payment of salary an amount equal to 1 1/2% of salary
as the employee's contribution for the surviving spouse's
annuity and annual increases therefor. For employees that first
became a member or a participant before January 1, 2011 under
any reciprocal retirement system or pension fund established
under this Code other than a retirement system or pension fund
established under Article 2, 3, 4, 5, 6, or 18 of this Code,
beginning with the first pay period paid on or after January 1,
2015 and ending with the last pay period paid on or before the
date when the funded ratio of the Fund is first determined to
have reached the 90% funding goal, there shall be deducted an
additional 0.5% of salary for a total of 2.0% for the surviving
spouse's annuity and annual increases.
    (c) Pickup of employee contributions. The Employer may pick
up employee contributions required under subsections (a) and
(b) of this Section. If contributions are picked up they shall
be treated as Employer contributions in determining tax
treatment under the United States Internal Revenue Code, and
shall not be included as gross income of the employee until
such time as they are distributed. The Employer shall pay these
employee contributions from the same source of funds used in
paying salary to the employee. The Employer may pick up these
contributions by a reduction in the cash salary of the employee
or by an offset against a future salary increase or by a
combination of a reduction in salary and offset against a
future salary increase. If employee contributions are picked up
they shall be treated for all purposes of this Article 13,
including Sections 13-503 and 13-601, in the same manner and to
the same extent as employee contributions made prior to the
date picked up.
    (d) Subject to the requirements of federal law, the
Employer shall pick up optional contributions that the employee
has elected to pay to the Fund under Section 13-304.1, and the
contributions so picked up shall be treated as employer
contributions for the purposes of determining federal tax
treatment. The Employer shall pick up the contributions by a
reduction in the cash salary of the employee and shall pay the
contributions from the same fund that is used to pay earnings
to the employee. The Employer shall, however, continue to
withhold federal and State income taxes based upon
contributions made under Section 13-304.1 until the Internal
Revenue Service or the federal courts rule that pursuant to
Section 414(h) of the U.S. Internal Revenue Code of 1986, as
amended, these contributions shall not be included as gross
income of the employee until such time as they are distributed
or made available.
    (e) Each employee is deemed to consent and agree to the
deductions from compensation provided for in this Article.
    (f) Subject to the requirements of federal law, the
Employer shall pick up contributions that a commissioner has
elected to pay to the Fund under Section 13-314, and the
contributions so picked up shall be treated as Employer
contributions for the purposes of determining federal tax
treatment. The Employer shall pick up the contributions by a
reduction in the cash salary of the commissioner and shall pay
the contributions from the same fund as is used to pay earnings
to the commissioner. The Employer shall, however, continue to
withhold federal and State income taxes based upon
contributions made under Section 13-314 until the U.S. Internal
Revenue Service or the federal courts rule that pursuant to
Section 414(h) of the Internal Revenue Code of 1986, as
amended, these contributions shall not be included as gross
income of the employee until such time as they are distributed
or made available.
(Source: P.A. 94-621, eff. 8-18-05; 95-586, eff. 8-31-07.)
 
    (40 ILCS 5/13-503)  (from Ch. 108 1/2, par. 13-503)
    Sec. 13-503. Tax levy. Until fiscal year 2013, the The
Water Reclamation District shall annually levy a tax upon all
the taxable real property within the District at a rate which,
when extended, will produce a sum that (i) when added to the
amounts deducted from the salaries of employees, interest
income on investments, and other income, will be sufficient to
meet the requirements of the Fund on an actuarially funded
basis, but (ii) shall not exceed an amount equal to the total
amount of contributions by the employees to the Fund made in
the calendar year 2 years prior to the year for which the tax
is levied, multiplied by 2.19, except that the amount of
employee contributions made on or after January 1, 2003 towards
the purchase of additional optional benefits under Section
13-304.1 shall only be multiplied by 1.00.
    Beginning in fiscal year 2013, the District shall annually
levy a tax upon all the taxable real property within the
District at a rate which, when extended, will produce a sum
that (i) will be sufficient to meet the Fund's actuarially
determined contribution requirement, but (ii) shall not exceed
an amount equal to the total employee contributions 2 years
prior multiplied by 4.19. The actuarially determined
contribution requirement is equal to the employer's normal cost
plus the annual amount needed to amortize the unfunded
liability by the year 2050 as a level percent of payroll. The
funding goal is to attain a funded ratio of at least 90% by the
year 2050, with the funded ratio being the ratio of the
actuarial value of assets to the total actuarial liability.
    The tax shall be levied and collected in the same manner as
the general taxes of the District.
    The tax shall be exclusive of and in addition to the amount
of tax the District is now or may hereafter be authorized to
levy for general purposes under the Metropolitan Water
Reclamation District Act or under any other laws which may
limit the amount of tax for general purposes. The county clerk
of any county, in reducing tax levies as may be authorized by
law, shall not consider any such tax as a part of the general
tax levy for District purposes, and shall not include the same
in any limitation of the percent of the assessed valuation upon
which taxes are required to be extended.
    Revenues derived from the tax shall be paid to the Fund for
the benefit of the Fund.
    If the funds available for the purposes of this Article are
insufficient during any year to meet the requirements of this
Article, the District may issue tax anticipation warrants or
notes, as provided by law, against the current tax levy.
    The Board shall submit annually to the Board of
Commissioners of the District an estimate of the amount
required to be raised by taxation for the purposes of the Fund.
The Board of Commissioners shall review the estimate and
determine the tax to be levied for such purposes.
(Source: P.A. 92-599, eff. 6-28-02.)
 
    Section 90. The State Mandates Act is amended by adding
Section 8.36 as follows:
 
    (30 ILCS 805/8.36 new)
    Sec. 8.36. Exempt mandate. Notwithstanding Sections 6 and 8
of this Act, no reimbursement by the State is required for the
implementation of any mandate created by this amendatory Act of
the 97th General Assembly.
 
    Section 99. Effective date. This Act takes effect upon
becoming law.

Effective Date: 8/3/2012