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Public Act 098-0622


 

Public Act 0622 98TH GENERAL ASSEMBLY

  
  
  

 


 
Public Act 098-0622
 
SB1523 EnrolledLRB098 07986 EFG 38076 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 1-160, 12-130, 12-133.1, 12-133.2, 12-140, 12-149,
and 12-150 and adding Sections 12-150.5, 12-155.5, and 12-195
as follows:
 
    (40 ILCS 5/1-160)
    Sec. 1-160. Provisions applicable to new hires.
    (a) The provisions of this Section apply to a person who,
on or after January 1, 2011, first becomes a member or a
participant 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,
15 or 18 of this Code, notwithstanding any other provision of
this Code to the contrary, but do not apply to any self-managed
plan established under this Code, to any person with respect to
service as a sheriff's law enforcement employee under Article
7, or to any participant of the retirement plan established
under Section 22-101.
    (b) "Final average salary" means the average monthly (or
annual) salary obtained by dividing the total salary or
earnings calculated under the Article applicable to the member
or participant during the 96 consecutive months (or 8
consecutive years) of service within the last 120 months (or 10
years) of service in which the total salary or earnings
calculated under the applicable Article was the highest by the
number of months (or years) of service in that period. For the
purposes of a person who first becomes a member or participant
of any retirement system or pension fund to which this Section
applies on or after January 1, 2011, in this Code, "final
average salary" shall be substituted for the following:
        (1) In Article 7 (except for service as sheriff's law
    enforcement employees), "final rate of earnings".
        (2) In Articles 8, 9, 10, 11, and 12, "highest average
    annual salary for any 4 consecutive years within the last
    10 years of service immediately preceding the date of
    withdrawal".
        (3) In Article 13, "average final salary".
        (4) In Article 14, "final average compensation".
        (5) In Article 17, "average salary".
        (6) In Section 22-207, "wages or salary received by him
    at the date of retirement or discharge".
    (b-5) Beginning on January 1, 2011, for all purposes under
this Code (including without limitation the calculation of
benefits and employee contributions), the annual earnings,
salary, or wages (based on the plan year) of a member or
participant to whom this Section applies shall not exceed
$106,800; however, that amount shall annually thereafter be
increased by the lesser of (i) 3% of that amount, including all
previous adjustments, or (ii) one-half the annual unadjusted
percentage increase (but not less than zero) in the consumer
price index-u for the 12 months ending with the September
preceding each November 1, including all previous adjustments.
    For the purposes of this Section, "consumer price index-u"
means the index published by the Bureau of Labor Statistics of
the United States Department of Labor that measures the average
change in prices of goods and services purchased by all urban
consumers, United States city average, all items, 1982-84 =
100. The new amount resulting from each annual adjustment shall
be determined by the Public Pension Division of the Department
of Insurance and made available to the boards of the retirement
systems and pension funds by November 1 of each year.
    (c) A member or participant is entitled to a retirement
annuity upon written application if he or she has attained age
67 (beginning January 1, 2015, age 65 with respect to service
under Article 12 of this Code that is subject to this Section)
and has at least 10 years of service credit and is otherwise
eligible under the requirements of the applicable Article.
    A member or participant who has attained age 62 (beginning
January 1, 2015, age 60 with respect to service under Article
12 of this Code that is subject to this Section) and has at
least 10 years of service credit and is otherwise eligible
under the requirements of the applicable Article may elect to
receive the lower retirement annuity provided in subsection (d)
of this Section.
    (d) The retirement annuity of a member or participant who
is retiring after attaining age 62 (beginning January 1, 2015,
age 60 with respect to service under Article 12 of this Code
that is subject to this Section) with at least 10 years of
service credit shall be reduced by one-half of 1% for each full
month that the member's age is under age 67 (beginning January
1, 2015, age 65 with respect to service under Article 12 of
this Code that is subject to this Section).
    (e) Any retirement annuity or supplemental annuity shall be
subject to annual increases on the January 1 occurring either
on or after the attainment of age 67 (beginning January 1,
2015, age 65 with respect to service under Article 12 of this
Code that is subject to this Section) or the first anniversary
of the annuity start date, whichever is later. Each annual
increase shall be calculated at 3% or one-half the annual
unadjusted percentage increase (but not less than zero) in the
consumer price index-u for the 12 months ending with the
September preceding each November 1, whichever is less, of the
originally granted retirement annuity. If the annual
unadjusted percentage change in the consumer price index-u for
the 12 months ending with the September preceding each November
1 is zero or there is a decrease, then the annuity shall not be
increased.
    (f) The initial survivor's or widow's annuity of an
otherwise eligible survivor or widow of a retired member or
participant who first became a member or participant on or
after January 1, 2011 shall be in the amount of 66 2/3% of the
retired member's or participant's retirement annuity at the
date of death. In the case of the death of a member or
participant who has not retired and who first became a member
or participant on or after January 1, 2011, eligibility for a
survivor's or widow's annuity shall be determined by the
applicable Article of this Code. The initial benefit shall be
66 2/3% of the earned annuity without a reduction due to age. A
child's annuity of an otherwise eligible child shall be in the
amount prescribed under each Article if applicable. Any
survivor's or widow's annuity shall be increased (1) on each
January 1 occurring on or after the commencement of the annuity
if the deceased member died while receiving a retirement
annuity or (2) in other cases, on each January 1 occurring
after the first anniversary of the commencement of the annuity.
Each annual increase shall be calculated at 3% or one-half the
annual unadjusted percentage increase (but not less than zero)
in the consumer price index-u for the 12 months ending with the
September preceding each November 1, whichever is less, of the
originally granted survivor's annuity. If the annual
unadjusted percentage change in the consumer price index-u for
the 12 months ending with the September preceding each November
1 is zero or there is a decrease, then the annuity shall not be
increased.
    (g) The benefits in Section 14-110 apply only if the person
is a State policeman, a fire fighter in the fire protection
service of a department, or a security employee of the
Department of Corrections or the Department of Juvenile
Justice, as those terms are defined in subsection (b) of
Section 14-110. A person who meets the requirements of this
Section is entitled to an annuity calculated under the
provisions of Section 14-110, in lieu of the regular or minimum
retirement annuity, only if the person has withdrawn from
service with not less than 20 years of eligible creditable
service and has attained age 60, regardless of whether the
attainment of age 60 occurs while the person is still in
service.
    (h) If a person who first becomes a member or a participant
of a retirement system or pension fund subject to this Section
on or after January 1, 2011 is receiving a retirement annuity
or retirement pension under that system or fund and becomes a
member or participant under any other system or fund created by
this Code and is employed on a full-time basis, except for
those members or participants exempted from the provisions of
this Section under subsection (a) of this Section, then the
person's retirement annuity or retirement pension under that
system or fund shall be suspended during that employment. Upon
termination of that employment, the person's retirement
annuity or retirement pension payments shall resume and be
recalculated if recalculation is provided for under the
applicable Article of this Code.
    If a person who first becomes a member of a retirement
system or pension fund subject to this Section on or after
January 1, 2012 and is receiving a retirement annuity or
retirement pension under that system or fund and accepts on a
contractual basis a position to provide services to a
governmental entity from which he or she has retired, then that
person's annuity or retirement pension earned as an active
employee of the employer shall be suspended during that
contractual service. A person receiving an annuity or
retirement pension under this Code shall notify the pension
fund or retirement system from which he or she is receiving an
annuity or retirement pension, as well as his or her
contractual employer, of his or her retirement status before
accepting contractual employment. A person who fails to submit
such notification shall be guilty of a Class A misdemeanor and
required to pay a fine of $1,000. Upon termination of that
contractual employment, the person's retirement annuity or
retirement pension payments shall resume and, if appropriate,
be recalculated under the applicable provisions of this Code.
    (i) (Blank).
    (j) In the case of a conflict between the provisions of
this Section and any other provision of this Code, the
provisions of this Section shall control.
(Source: P.A. 97-609, eff. 1-1-12; 98-92, eff. 7-16-13.)
 
    (40 ILCS 5/12-130)  (from Ch. 108 1/2, par. 12-130)
    Sec. 12-130. Retirement prior to age 60. An employee
withdrawing prior to January 1, 1990 with at least 10 years of
service and before attainment of age 55 shall be entitled at
his option to a retirement annuity beginning at age 55.
    An employee withdrawing prior to January 1, 1990 with at
least 10 years of service upon or after attainment of age 55,
and before age 60, shall be entitled to a retirement annuity
beginning at any time thereafter.
    An employee who withdraws on or after January 1, 1990 and
has attained age 45 before January 1, 2015 with at least 10
years of service and prior to age 60 shall be entitled, at his
option, to a retirement annuity beginning at any time after
withdrawal or attainment of age 50, whichever occurs later. An
employee who has not attained age 45 before January 1, 2015 and
withdraws on or after that date with at least 10 years of
service and prior to age 60 shall be entitled, at his option,
to a retirement annuity beginning at any time after withdrawal
or attainment of age 58, whichever occurs later.
    Notwithstanding Section 1-103.1, the changes to this
Section made by this amendatory Act of the 98th General
Assembly apply regardless of whether the employee was in active
service on or after the effective date of this amendatory Act,
but do not apply to a person whose service under this Article
is subject to Section 1-160.
    Any employee upon withdrawal after at least 15 years of
service, upon or after attainment of age 50, and before
attainment of age 55, who received ordinary disability benefit
for the maximum period of time provided herein, and who
continues to be disabled, shall be entitled to a retirement
annuity.
    The amount of retirement annuity for any employee who
entered service prior to July 1, 1971 shall be provided from
the total of the accumulations as stated in this Section, at
the employee's attained age on the date of retirement:
        (a) the accumulation from employee contributions for
    service annuity on the date of withdrawal, improved by
    regular interest from the date the employee withdraws to
    the date he enters upon annuity;
        (b) 1/10 of the accumulation, on the date of
    withdrawal, from employer contributions for service
    annuity, for each complete year of service above 10 years
    up to 100% of such accumulation, improved by regular
    interest from the date the employee withdraws to the date
    he enters upon annuity.
(Source: P.A. 86-272; 86-1028.)
 
    (40 ILCS 5/12-133.1)  (from Ch. 108 1/2, par. 12-133.1)
    Sec. 12-133.1. Annual increase in basic retirement
annuity.
    (a) Any employee upon withdrawal from service on or after
July 1, 1965, and retiring on a retirement annuity, shall be
entitled to an annual increase in his basic retirement annuity
as defined herein while he is in receipt of such annuity.
    The term "basic retirement annuity" shall mean the
retirement annuity of the amount fixed and payable at date of
retirement of the employee.
    (b) The annual increase in annuity shall be 1 1/2% of the
basic retirement annuity. The increase shall first occur in the
month of January or the month of July, whichever first occurs
next following or coincidental with the first anniversary of
retirement. Effective January 1, 1972, the annual rate of
increase in annuity thereafter shall be 2% of the basic
retirement annuity, provided that beginning as of January 1,
1976, the annual rate of increase shall be 3% of the basic
retirement annuity.
    (b-1) Notwithstanding subsection (b), all automatic annual
increases payable under this Section on or after January 1,
2015 shall be calculated at 3% or one-half the annual
unadjusted percentage increase (but not less than 0) in the
Consumer Price Index-U for the 12 months ending with the
September preceding each November 1, whichever is less, of the
originally granted retirement annuity.
    For the purposes of this Article, "Consumer Price Index-U"
means the index published by the Bureau of Labor Statistics of
the United States Department of Labor that measures the average
change in prices of goods and services purchased by all urban
consumers, United States city average, all items, 1982-84 =
100. The new amount resulting from each annual adjustment shall
be determined by the Public Pension Division of the Department
of Insurance.
    Notwithstanding Section 1-103.1, this subsection (b-1) is
applicable without regard to whether the employee was in active
service on or after the effective date of this amendatory Act
of the 98th General Assembly. This subsection (b-1) is also
applicable to any former employee who on or after the effective
date of this amendatory Act of the 98th General Assembly is
receiving a retirement annuity pursuant to the provisions of
this Section.
    (b-2) Notwithstanding any other provision of this Article,
no automatic annual increase in retirement annuity payable
under this Section shall be granted to any person by the Fund
in 2015, 2017, and 2019 under this Article or under Section
1-160 of this Code as it applies to this Article. In the years
2016, 2018, 2020, and thereafter, the Fund shall continue to
pay amounts accruing from automatic annual increases in the
manner provided by this Code.
    Notwithstanding Section 1-103.1, this subsection (b-2) is
applicable without regard to whether the employee was in active
service on or after the effective date of this amendatory Act
of the 98th General Assembly. This subsection (b-2) is also
applicable to any former employee who on or after the effective
date of this amendatory Act of the 98th General Assembly is
receiving a retirement annuity pursuant to the provisions of
this Article.
    (c) For an employee who retires with less than 30 years of
service, the increase in the basic retirement annuity shall
begin not earlier than in the month of January or the month of
July, whichever occurs first, following or coincidental with
the employee's attainment of age 60.
    Subject to the provisions of subsection (b-2), for For an
employee who retires with at least 30 years of service, the
annual increase under this Section shall begin in the month of
January or the month of July, whichever first occurs next
following or coincidental with the later of (1) the first
anniversary of retirement or (2) July 1, 1998, without regard
to the attainment of age 60 and without regard to whether or
not the employee was in service on or after the effective date
of this amendatory Act of 1998.
    (d) The increase in the basic retirement annuity shall not
be applicable unless the employee otherwise qualified has made
contributions to the fund as provided herein for an equivalent
period of one full year. If such contributions were not made,
the employee may make the required payment to the fund at the
time of retirement, in a single sum, without interest.
    (e) The additional contributions by an employee towards the
annual increase in basic retirement annuity shall not be
refundable, except to an employee who withdraws and applies for
a refund under this Article, or dies while in service, and also
in cases where a temporary annuity becomes payable. In such
cases his contributions shall be refunded without interest.
(Source: P.A. 90-766, eff. 8-14-98.)
 
    (40 ILCS 5/12-133.2)  (from Ch. 108 1/2, par. 12-133.2)
    Sec. 12-133.2. Increases to employee annuitants. The
provisions of subsections (b-1) and (b-2) of Section 12-133.1
also apply to the benefits provided under this Section.
    Employees who retired on service retirement annuity prior
to July 1, 1965 who were at least 55 years of age at date of
retirement and had at least 20 years of credited service, who
shall have attained age 65, and any employee retired on or
after such date who meets such qualifying conditions and who is
not eligible for an annual increase in basic retirement annuity
otherwise provided in this Article, shall be entitled to
receive benefits under this Section.
    These benefits shall be in an amount equal to 1 1/2% of the
service retirement annuity multiplied by the number of full
years that the annuitant was in receipt of such annuity. This
payment shall begin in January of 1970, and an additional 1
1/2% based upon the original grant of annuity shall be added in
January of each year thereafter. Beginning January 1, 1972, the
annual rate of increase in annuity shall be 2% of the original
grant of annuity and shall also apply thereafter to any person
who shall have had at least 15 years of credited service and
less than 20 years on the same basis as was applicable to
persons retired with 20 or more years of service; provided that
beginning January 1, 1976, the annual rate of increase in
retirement annuity shall be 3% of the basic retirement annuity.
    An employee annuitant who otherwise qualifies for the
aforesaid benefit shall make a one-time contribution of 1% of
the final monthly average salary multiplied by the number of
completed years of service forming the basis of his service
retirement annuity, provided that if the annuity was computed
on any other basis, the contribution shall be 1% of the rate of
monthly salary in effect on the date of retirement multiplied
by the number of completed years of service forming the basis
of his service retirement annuity.
(Source: P.A. 87-1265.)
 
    (40 ILCS 5/12-140)  (from Ch. 108 1/2, par. 12-140)
    Sec. 12-140. Duty disability benefit. An employee who
becomes disabled as the direct result of injury incurred in the
performance of an act of duty and cannot perform the duties of
the regularly assigned position, is entitled to receive, while
so disabled, a benefit of 75% of the salary at the date when
such duty disability benefits commence, subject to the
conditions hereinafter stated, except that beginning January
1, 2015, such duty disability benefits shall be reduced to 74%
of that salary; beginning January 1, 2017, such duty disability
benefits shall be reduced to 73% of that salary; and beginning
January 1, 2019, such duty disability benefits shall be reduced
to 72% of that salary.
    In the event an employee returns to service from any duty
disability and renders actual employment in pay status
performing the duties of the regularly assigned position for at
least 60 days, and again becomes disabled, whether due to the
previous disability or a new disability, the salary to be used
in the computation of the benefit shall be the salary in effect
at the date of the last day of service prior to the latest
disability.
    The employee shall also receive a further benefit of $20
per month on account of each eligible minor child as prescribed
in Section 12-137, but the combined benefit to employee and
children shall not exceed the annual salary at the date of such
disability less the sums that would be deducted from his salary
for service annuity and spouse's service annuity.
    The benefit prescribed herein shall be payable during
disability until the employee attains age 65, if disability is
incurred before age 60, or for a period of 5 years if
disability is incurred at age 60 or older. If the disability is
incurred after age 65, this 5 year period may be reduced if
such reduction can be justified on the basis of actuarial cost
data approved by the board upon the recommendation of the
actuary. At such time if the employee remains disabled the
employee may retire on a retirement annuity.
    If an employee dies as the direct result of injury incurred
in the performance of an act of duty, or if death results from
any cause which is compensable under the Workers' Occupational
Diseases Act, a surviving spouse shall be entitled to a benefit
(subject to the modifications stated in Section 12-141) of 50%
of the employee's salary as it was at the date of injury
resulting in death, until the date when the employee would have
attained age 65, if injury was incurred under age 60, or for a
period of 5 years if disability is incurred at age 60 or older.
After such date, the spouse shall be entitled to receive the
reversionary annuity that would have been fixed had the
employee continued in service at the rate of salary received at
the date of his injury resulting in death, until the employee
attained age 65 or as stated herein and had then retired.
    If a spouse remarries while under age 55 while in receipt
of a benefit under this section, the benefit shall terminate.
Such termination shall be final and shall not be affected by
any change thereafter in his or her marital status.
    Notwithstanding Section 1-103.1, the changes to this
Section made by this amendatory Act of the 98th General
Assembly apply to duty disability benefits payable on or after
January 1, 2015, regardless of whether the recipient is deemed
to be in service on or after the effective date of this
amendatory Act.
(Source: P.A. 86-272.)
 
    (40 ILCS 5/12-149)   (from Ch. 108 1/2, par. 12-149)
    Sec. 12-149. Financing.
    (a) The board of park commissioners of any such park
district shall annually levy a tax (in addition to the taxes
now authorized by law) upon all taxable property embraced in
the district, at the rate which, when added to the employee
contributions under this Article and applied to the fund
created hereunder, shall be sufficient to provide for the
purposes of this Article in accordance with the provisions
thereof. Such tax shall be levied and collected with and in
like manner as the general taxes of such district, and shall
not in any event be included within any limitations of rate for
general park purposes as now or hereafter provided by law, but
shall be excluded therefrom and be in addition thereto.
    The amount of such annual tax to and including the year
1977 shall not exceed .0275% of the value, as equalized or
assessed by the Department of Revenue, of all taxable property
embraced within the park district, provided that for the year
1978, and for each year thereafter, the amount of such annual
tax shall be at a rate on the dollar of assessed valuation of
all taxable property that will produce, when extended, for the
year 1978 the following sum: 0.825 times the amount of employee
contributions during the fiscal year 1976; for the year 1979,
0.85 times the amount of employee contributions during the
fiscal year 1977; for the year 1980, 0.90 times the amount of
employee contributions during the fiscal year 1978; for the
year 1981, 0.95 times the amount of employee contributions
during the fiscal year 1979; for the year 1982, 1.00 times the
amount of employee contributions during the fiscal year 1980;
for the year 1983, 1.05 times the amount of contributions made
on behalf of employees during the fiscal year 1981; and for the
year 1984 and each year thereafter through the year 2013, an
amount equal to 1.10 times the employee contributions during
the fiscal year 2-years prior to the year for which the
applicable tax is levied. For the year 2014, this calculation
shall be 1.10 times the amount of employee contributions during
the 12-month fiscal year ending June 30, 2012; and for the year
2015, this calculation shall be 1.70 1.10 times the amount of
employee contributions during the 12-month fiscal year ending
December 31, 2013. For the year 2016, this calculation shall be
an amount equal to 1.70 times; for the years 2017 and 2018,
this calculation shall be an amount equal to 2.30 times; and
for the year 2019 and each year thereafter, until the Fund
attains a funded ratio of at least 90% with the funded ratio
being the ratio of the actuarial value of assets to the total
actuarial liability, this calculation shall be an amount equal
to 2.90 times the employee contributions during the fiscal year
2 years prior to the year for which the applicable tax is
levied. Beginning in the fiscal year in which the Fund attains
a funding ratio of at least 90%, the contribution shall be the
lesser of (1) 2.90 times the employee contributions during the
fiscal year 2 years prior to the year for which the applicable
tax is levied, or (2) the amount needed to maintain a funded
ratio of 90%.
    In addition to the contributions required under the other
provisions of this Article, by November 1 of the following
specified years, the employer shall contribute to the Fund the
following specified amounts: $12,500,000 in 2015; $12,500,000
in 2016; and $50,000,000 in 2019. The additional employer
contributions required under this subsection (a) are intended
to decrease the unfunded liability of the Fund and shall not
decrease the amount of the employer contributions required
under the other provisions of this Article. The additional
employer contributions made under this subsection (a) may be
used by the Fund for any of its lawful purposes.
    (b) As used in this Section, the term "employee
contributions" means contributions by employees for retirement
annuity, spouse's annuity, automatic increase in retirement
annuity, and death benefit.
    In making required contributions under this Section, the
employer may, in lieu of levying all or a portion of the tax
required under this Section, deposit an amount not less than
the required amount of employer contributions derived from any
source legally available for that purpose.
    (c) In respect to park district employees, other than
policemen, who are transferred to the employment of a city by
virtue of the "Exchange of Functions Act of 1957", the
corporate authorities of the city shall annually levy a tax
upon all taxable property embraced in the city, as equalized or
assessed by the Department of Revenue, at such rate per cent of
the value of such property as shall be sufficient, when added
to the amounts deducted from the salary or wages of such
employees, to provide the benefits to which such employees,
their dependents and beneficiaries are entitled under the
provisions of this Article. The park district shall not levy a
tax hereunder in respect to such employees. The tax levied by
the city under authority of this Article shall be in addition
to and exclusive of all other taxes authorized by law to be
levied by the city for corporate, annuity fund or other
purposes.
    (d) All moneys accruing from the levy and collection of
taxes, pursuant to this section, shall be remitted to the board
by the employers as soon as they are received. Where a city has
levied a tax pursuant to this Section in respect to park
district employees transferred to the employment of a city, the
treasurer of such city or other authorized officer shall remit
the moneys accruing from the levy and collection of such tax as
soon as they are received. Such remittances shall be made upon
a pro rata share basis, whereby each employer shall pay to the
board such employer's proportionate percentage of each payment
of taxes received by it, according to the ratio which its tax
levy for this fund bears to the total tax levy of such
employer.
    (e) Should any board of park commissioners included under
the provisions of this Article be without authority to levy the
tax provided in this Section the corporation authorities
(meaning the supervisor, clerk and assessor) of the town or
towns for which such board shall be the board of park
commissioners shall levy such tax.
    (f) Employer contributions to the Fund may be reduced by
$5,000,000 for calendar years 2004 and 2005.
(Source: P.A. 97-973, eff. 8-16-12.)
 
    (40 ILCS 5/12-150)  (from Ch. 108 1/2, par. 12-150)
    Sec. 12-150. Contributions by employees for service
annuity.
    (a) From each payment of salary to a present employee
beginning August 4, 1961, and prior to September 1, 1971, there
shall be deducted as contributions for service annuity 6% of
such payment. Beginning September 1, 1971, the deduction shall
be 6 1/2% of salary. Beginning January 1, 2015, the deduction
shall be 8% of salary. Beginning January 1, 2017, the deduction
shall be 9% of salary. Beginning January 1, 2019, the deduction
shall be 10% of salary. These contributions shall continue
until the amounts thus deducted will provide an accumulation,
at regular interest, at least equal to the amount that would be
provided on such date from employee contributions, assuming
regular interest to such date, if such employee had been
contributing in accordance with the provisions of "The 1919
Act" and this Article from the beginning of his service and the
salary of the employee during his prior service was the same as
it was on July 1, 1919, or on July 1, 1937 in the case of an
employee of the board.
    (b) From each payment of salary to a future entrant
beginning August 4, 1961, and prior to September 1, 1971, there
shall be deducted as contributions for service annuity 6% of
such payment. Beginning September 1, 1971, the deduction shall
be 6 1/2% of salary. Beginning January 1, 1990, the deduction
shall be 7% of salary. Beginning January 1, 2015, the deduction
shall be 8% of salary. Beginning January 1, 2017, the deduction
shall be 9% of salary. Beginning January 1, 2019, the deduction
shall be 10% of salary. Beginning with the first pay period 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 thereafter for as long as the Fund maintains a funding
ratio of 90% or more, employee contributions shall be 8.5% of
salary for the service annuity. If the funding ratio falls
below 90%, then employee contributions for the service annuity
shall revert to 10% of salary until such time as the Fund once
again is determined to have reached the 90% funding goal, at
which time the 8.5% of salary employee contribution for the
service annuity shall resume.
    (c) For service rendered prior to August 4, 1961, the rates
of contribution by employees for service annuity shall be as
follows: July 1, 1919 to July 20, 1947, inclusive, 4% of
salary; July 21, 1947 to August 3, 1961, inclusive, 5% of
salary.
    For the period from July 1, 1919, to August 4, 1961 such
deductions for a present employee shall continue until such
date as the amounts deducted will provide an accumulation at
least equal to that which would be provided on such date,
assuming regular interest to such date, from deductions from
salary of such employee if such employee had been under the
provisions of "The 1919 Act" and this Article from the
beginning of his service and the salary of such employee during
his period of prior service was the same as it was on July 1,
1919 or on July 1, 1937 in the case of an employee of the board.
    (d) Any employee shall have the option to contribute for
service annuity an amount, together with regular interest,
equal to the difference between the amount he had accumulated
in the fund on June 30, 1947, from contributions at the rate of
4% of salary, together with regular interest, and the amount he
would have accumulated, together with regular interest, if he
had made contributions at the rate of 5% of salary. All such
contributions shall be subject to salary limitations and other
conditions in effect prior to July 1, 1947. Upon making such
contribution the employer of such employee shall contribute in
the ratio of 2 to 1 with such employee.
(Source: P.A. 86-272.)
 
    (40 ILCS 5/12-150.5 new)
    Sec. 12-150.5. Use of contributions for health care
subsidies. The Fund shall not use any contribution received by
the Fund under this Article to provide a subsidy for the cost
of participation in a retiree health care program.
 
    (40 ILCS 5/12-155.5 new)
    Sec. 12-155.5. Funding obligation.
    (a) Beginning January 1, 2015, the board of park
commissioners shall be obligated to contribute to the Fund in
each fiscal year an amount not less than the amount determined
annually under subsection (a) of Section 12-149 of this Code.
Notwithstanding any other provision of law, if the board of
park commissioners fails to pay the amount guaranteed under
this Section within 60 days after the date set forth by the
retirement board, the retirement board may bring a mandamus
action in the Circuit Court of Cook County to compel the board
of park commissioners to make the required payment,
irrespective of other remedies that may be available to the
Fund. The obligations and causes of action created under this
Section shall be in addition to any other right or remedy
otherwise accorded by common law or State or federal law, and
nothing in this Section shall be construed to deny, abrogate,
impair, or waive any such common law or statutory right or
remedy.
    (b) In ordering the board of park commissioners to make the
required payment, the court may order a reasonable payment
schedule to enable the board of park commissioners to make the
required payment without significantly imperiling the public
health, safety, or welfare. Any payments required to be made by
the board of park commissioners pursuant to this Section are
expressly subordinated to the payment of the principal,
interest, and premium, if any, on any bonded debt obligation of
the board of park commissioners, either currently outstanding
or to be issued, for which the source of repayment or security
thereon is derived directly or indirectly from tax revenues
collected by the board of park commissioners. Payments on such
bonded obligations include any statutory fund transfers or
other prefunding mechanisms or formulas set forth, now or
hereafter, in State law or bond indentures, into debt service
funds or accounts of the board of park commissioners related to
such bonded obligations, consistent with the payment schedules
associated with such obligations.
 
    (40 ILCS 5/12-195 new)
    Sec. 12-195. Application and expiration of new benefit
increases.
    (a) As used in this Section, "new benefit increase" means
an increase in the amount of any benefit provided under this
Article, or an expansion of the conditions of eligibility for
any benefit under this Article, that results from an amendment
to this Code that takes effect after the effective date of this
amendatory Act of the 98th General Assembly.
    (b) Notwithstanding any other provision of this Code or any
subsequent amendment to this Code, every new benefit increase
is subject to this Section and shall be deemed to be granted
only in conformance with and contingent upon compliance with
the provisions of this Section.
    (c) The Public Act enacting a new benefit increase must
identify and provide for payment to the Fund of additional
funding at least sufficient to fund the resulting annual
increase in cost to the Fund as it accrues.
    Every new benefit increase is contingent upon the General
Assembly providing the additional funding required under this
subsection (c). The State Actuary shall analyze whether
adequate additional funding has been provided for the new
benefit increase. A new benefit increase created by a Public
Act that does not include the additional funding required under
this subsection (c) is null and void. If the State Actuary
determines that the additional funding provided for a new
benefit increase under this subsection (c) is or has become
inadequate, it may so certify to the Governor and the State
Comptroller and, in the absence of corrective action by the
General Assembly, the new benefit increase shall expire at the
end of the fiscal year in which the certification is made.
 
    Section 90. The State Mandates Act is amended by adding
Section 8.37 as follows:
 
    (30 ILCS 805/8.37 new)
    Sec. 8.37. 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 98th General Assembly.
 
    Section 97. Inseverability and severability. The changes
made by this amendatory Act are inseverable, except that
Section 12-195 of the Illinois Pension Code is severable under
Section 1.31 of the Statute on Statutes.

Effective Date: 6/1/2014