093_HB0521

 
                                     LRB093 06101 LRD 06206 b

 1        AN ACT in relation to public employee benefits.

 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:

 4        Section 5.  The  Illinois  Pension  Code  is  amended  by
 5    changing  Sections  7-118,  7-158,  7-164,  7-172, 7-205, and
 6    7-206 as follows:

 7        (40 ILCS 5/7-118) (from Ch. 108 1/2, par. 7-118)
 8        Sec. 7-118.  "Beneficiary":
 9        (a)  The  surviving  spouse  of  an  employee  or  of  an
10    employee annuitant, or if no surviving spouse  survives,  the
11    person  or  persons designated by a participating employee or
12    employee annuitant, or if no person so  designated  survives,
13    or  if  no designation is on file, the estate of the employee
14    or employee annuitant.  The person or persons designated by a
15    beneficiary annuitant, or if no person  designated  survives,
16    or   if  no  designation  is  on  file,  the  estate  of  the
17    beneficiary annuitant.  The  estate  of  a  surviving  spouse
18    annuitant  where  the employee or employee annuitant filed no
19    designation, or no person designated survives at the death of
20    a surviving spouse annuitant.  Designations of  beneficiaries
21    shall  be  in  writing  on  forms prescribed by the board and
22    effective upon filing in the fund offices.   The  designation
23    forms  shall  provide for contingent beneficiaries.  Divorce,
24    dissolution or annulment of marriage revokes the  designation
25    of  an  employee's  former  spouse  as  a  beneficiary  on  a
26    designation   executed  before entry of judgment for divorce,
27    dissolution or annulment of marriage.
28        (b)  Notwithstanding the foregoing, an  employee,  former
29    employee  who  has  not  yet received a retirement annuity or
30    separation benefit, or employee annuitant may elect  to  name
31    any person, trust or charity to be the primary beneficiary of
 
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 1    any  death  benefit  payable  by  reason  of his death.  Such
 2    election shall state specifically whether it is his intention
 3    to exclude the spouse,  shall  be  in  writing,  and  may  be
 4    revoked  at any time.  Such election or revocation shall take
 5    effect upon being filed in the fund offices.
 6        (c)  If a surviving spouse annuity is payable to a former
 7    spouse upon the death of an employee  annuitant,  the  former
 8    spouse,  unless  designated  by  the employee annuitant after
 9    dissolution of the marriage, shall not be the beneficiary for
10    the purposes of the $5,000 $3,000 death benefit payable under
11    subparagraph 6 of Section 7-164.  This benefit shall be  paid
12    to  the  designated beneficiary of the employee annuitant or,
13    if there is  no  designation,  then  to  the  estate  of  the
14    employee annuitant.
15    (Source: P.A. 89-136, eff. 7-14-95; 90-448, eff. 8-16-97.)

16        (40 ILCS 5/7-158) (from Ch. 108 1/2, par. 7-158)
17        Sec.  7-158.   Surviving  spouse annuities - Options.  In
18    lieu of the surviving spouse annuity  an  eligible  surviving
19    spouse  shall  have the option of receiving other benefits as
20    follows:
21        1.  The surviving spouse of a participating employee  may
22    elect  to  receive  either  a  single  sum death benefit or a
23    surviving spouse annuity and the $5,000 $3,000 death  benefit
24    provided in Sections 7-163 and 7-164.
25        2.  The   surviving   spouse  of  an  employee,  who  has
26    separated from service and would  have  been  entitled  to  a
27    retirement  annuity  on  date  of death, may elect to receive
28    either a single sum  death  benefit  or  a  surviving  spouse
29    annuity  and  the  $5,000  $3,000  death  benefit provided in
30    Sections 7-163 and 7-164.
31        3.  If any surviving spouse annuity is payable  prior  to
32    the  earliest age at which the recipient will become eligible
33    for a  widows'  or  widowers'  insurance  benefit  under  the
 
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 1    Federal Social Security Act, the recipient may elect that the
 2    annuity  payments  from  this fund shall exceed those payable
 3    after attaining such age by an amount not in  excess  of  the
 4    estimated  Social  Security  Benefit,  determined  as  of the
 5    effective date of the surviving spouse annuity, provided that
 6    in no case shall the total annuity payments made by this fund
 7    exceed in actuarial value the annuity which would  have  been
 8    paid had no such election been made.
 9        4.  The  surviving  spouse  of  a participating employee,
10    whose annuity was suspended upon return to employment and who
11    had one year or more of service after his return,  may  apply
12    the  additional  service  credits to a supplemental surviving
13    spouse annuity and receive the $5,000 $3,000 death benefit or
14    apply the additional service credits to a  single  sum  death
15    benefit  and  forego  the $5,000 $3,000 death benefit payable
16    upon the death of an annuitant.
17        5.  The surviving spouse  of  a  participating  employee,
18    whose annuity was suspended upon return to employment and who
19    had  less  than  one  year of service after his return, shall
20    have  the  additional  service  credits  applied  towards   a
21    supplemental  surviving  spouse annuity and shall receive the
22    $5,000 $3,000 death benefit.
23    (Source: P.A. 85-941.)

24        (40 ILCS 5/7-164) (from Ch. 108 1/2, par. 7-164)
25        Sec. 7-164.  Death benefits - Amount.  The amount of  the
26    death benefit shall be:
27        1.  Upon  the death of an employee with at least one year
28    of service occurring  while  in  an  employment  relationship
29    (including  employees  drawing  disability  benefits)  with a
30    participating municipality or participating  instrumentality,
31    an amount equal to the sum of:
32             (a)  The  employee's normal, additional and survivor
33        credits, including interest credited thereto through  the
 
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 1        end of the preceding calendar year, but excluding credits
 2        and interest thereon allowed for periods of disability.
 3             (b)  An  amount equal to the employee's annual final
 4        rate of earnings. An employee who dies  as  a  result  of
 5        injuries connected with his duties shall be considered to
 6        have a year of service for purposes of this benefit.
 7        2.  Upon  the  death  of an employee with less than 1 one
 8    year of  service  occurring  while  in  the  service  of  any
 9    participating  municipality  or  instrumentality,  an  amount
10    equal  to  the  sum of his accumulated normal, additional and
11    survivor credits  on  the  date  of  death,  excluding  those
12    credits  and  interest  thereon  allowed  during  periods  of
13    disability.
14        3.  Upon  the death of an employee who has separated from
15    service and was not entitled to a retirement annuity  on  the
16    date  of death, an amount equal to the sum of his accumulated
17    normal, survivor and additional credits on the date of  death
18    excluding  those  credits and interest thereon allowed during
19    periods of disability.
20        4.  Upon the  death  of  an  employee  in  an  employment
21    relationship, or an employee who has service and was entitled
22    to  a  retirement  annuity  on  the  date  of  death,  when a
23    surviving spouse or child annuity is awarded, $5,000 $3,000.
24        5.  Upon the death of an employee, who has separated from
25    service and was entitled to a retirement annuity on the  date
26    of  death,  and  no  surviving  spouse  or  child  annuity is
27    awarded,  $5,000  $3,000  plus  an  amount   equal   to   his
28    accumulated  normal,  survivor  and additional credits on the
29    date of death, excluding those credits  and  interest  earned
30    thereon allowed during periods of disability.
31        6.  Upon  the  death  of  an  employee  annuitant, $5,000
32    $3,000 and, unless a surviving spouse, child or  reversionary
33    annuity  is  payable, the sum of (i) the excess of the normal
34    and survivor credits, excluding those allowed during  periods
 
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 1    of  disability,  which  the annuitant had as of the effective
 2    date of his annuity over the total annuities paid pursuant to
 3    paragraph (a) 1 of Section 7-142 to the date of  death,  plus
 4    (ii) the excess of the additional credits, excluding any such
 5    credits  used  to  create  a  reversionary  annuity,  used to
 6    provide the annuity granted pursuant to paragraph  (a)  2  of
 7    Section  7-142  over the total annuity payments made pursuant
 8    thereto to the time of death.
 9        7.  Upon  the  death  of   an   annuitant   receiving   a
10    reversionary  annuity  or of a person designated to receive a
11    reversionary annuity prior to the receipt of such annuity the
12    sum of the additional credits  of  the  person  creating  the
13    reversionary  annuity  as  of  the  effective date of his own
14    retirement annuity over the reversionary annuity payments, if
15    any, made prior to the date of death  of  such  annuitant  or
16    person designated to receive the reversionary annuity.
17        8.  Upon   the   death   of   an  annuitant  receiving  a
18    beneficiary annuity which was  effective  before  January  1,
19    1986,  the  excess  of  the  death  benefit which was used to
20    provide the annuity, over the sum  of  all  annuity  payments
21    made  to  the  beneficiary.  Upon  the  death of an annuitant
22    receiving a beneficiary annuity effective January 1, 1986  or
23    thereafter,  the  sum  of  (i)  the  excess of the normal and
24    survivor credits, excluding those allowed during  periods  of
25    disability,  which the annuitant had as of the effective date
26    of his annuity over the  total  annuities  paid  pursuant  to
27    paragraph  (c)  of Section 7-165, to date of death, plus (ii)
28    the excess of the  additional  credits,  excluding  any  such
29    credits  used  to  create  a  reversionary  annuity,  used to
30    provide the annuity granted  pursuant  to  paragraph  (d)  of
31    Section  7-165  over the total annuity payments made pursuant
32    thereto to the time of death.
33        9.  Upon the marriage prior to reaching  age  55  (except
34    for a surviving spouse who remarries after December 31, 2000)
 
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 1    or  death  of  a person receiving a surviving spouse annuity,
 2    unless a child annuity is payable, the sum of (i) the  excess
 3    of  the  normal and survivor credits, excluding those credits
 4    and interest thereon allowed during  periods  of  disability,
 5    attributable  to  the  employee  at the effective date of the
 6    annuity or date of death, whichever first occurred, over  the
 7    total of all annuity payments attributable to paragraph (a) 1
 8    of  Section  7-142  made  to the employee or surviving spouse
 9    plus (ii) the excess of the additional credits, excluding any
10    such credits used to create a reversionary annuity or used to
11    provide the  annuity  attributable  to  paragraph  (a)  2  of
12    Section 7-142 over the total of such payments.
13        10.  Upon  the marriage, death or attainment of age 18 of
14    a  child  receiving  a  child  annuity,  if  no  other  child
15    annuities are payable, the sum  of  (i)  the  excess  of  the
16    normal  and  survivor  credits  excluding  those  credits and
17    interest thereon allowed during periods of disability, of the
18    employee at the effective date of  the  annuity  or  date  of
19    death,  whichever  first  occurred,  over  the  total annuity
20    payments attributable to paragraph (a)  1  of  Section  7-142
21    made to the employee, surviving spouse and children plus (ii)
22    the  excess  of  the  additional  credits, excluding any such
23    credits used  to  create  a  reversionary  annuity,  used  to
24    provide  the  annuity  attributable  to  paragraph  (a)  2 of
25    Section 7-142 over the total annuity  payments  made  to  the
26    employee, surviving spouse and children, pursuant thereto.
27        11.  Upon  the  death of the participating employee whose
28    annuity was suspended upon his return to employment:
29             a.  If  a  surviving  spouse  or  child  annuity  is
30        awarded, $5,000 $3,000;
31             b.  If no  surviving  spouse  or  child  annuity  is
32        awarded  and  he  had  less  than one year's service upon
33        return, $5,000 $3,000 plus  the  excess  of  the  normal,
34        survivor   and  additional  credits,  including  interest
 
                            -7-      LRB093 06101 LRD 06206 b
 1        thereon, but excluding those allowed during a  period  of
 2        disability,  at  the  effective  date  of  the  suspended
 3        annuity,  plus  those  allowed after his return, over all
 4        annuity payments made to the employee;
 5             c.  If no  surviving  spouse  or  child  annuity  is
 6        awarded  and  he  has  one  year  or more of service upon
 7        return, the higher of (a) the payment under  subparagraph
 8        b  of this paragraph or (b) the payment under paragraph 1
 9        of this  Section,  taking  into  consideration  only  the
10        service  and  credits  allowed after his return, plus the
11        excess of the normal, survivor  and  additional  credits,
12        including   interest  thereon,  excluding  those  allowed
13        during periods of disability, at the  effective  date  of
14        his  suspended  annuity over all annuity payments made to
15        the employee.
16        12.  The $3,000  or  $5,000  death  benefit  provided  in
17    paragraphs  4  and 6 shall not be payable to beneficiaries of
18    persons who terminated service prior to  September  8,  1971,
19    unless  the  payment  or  agreement  for  payment provided by
20    Section 7-144.2 of this Article is made prior to the date  of
21    death.
22        13.  The  increase  in certain death benefits from $1,000
23    to $3,000 provided by this amendatory Act of 1987 shall apply
24    only to deaths occurring on or after January 1, 1988.
25        The increase in certain death  benefits  from  $3,000  to
26    $5,000  provided  by  this amendatory Act of the 93rd General
27    Assembly applies  to  deaths  that  occur  on  or  after  the
28    effective  date  of  this  amendatory  Act, without regard to
29    whether the deceased person was in service on or  after  that
30    date.
31    (Source: P.A. 91-887, eff. 7-6-00.)

32        (40 ILCS 5/7-172) (from Ch. 108 1/2, par. 7-172)
33        Sec.     7-172.      Contributions    by    participating
 
                            -8-      LRB093 06101 LRD 06206 b
 1    municipalities and participating instrumentalities.
 2        (a)  Each    participating    municipality    and    each
 3    participating instrumentality shall make payment to the  fund
 4    as follows:
 5             1.  municipality    contributions   in   an   amount
 6        determined by applying the municipality contribution rate
 7        to  each  payment  of  earnings  paid  to  each  of   its
 8        participating employees;
 9             2.  an  amount  equal  to the employee contributions
10        provided by paragraphs (a)  and  (b)  of  Section  7-173,
11        whether or not the employee contributions are withheld as
12        permitted by that Section;
13             3.  all  accounts receivable, together with interest
14        charged thereon, as provided in Section 7-209;
15             4.  if  it  has  no  participating  employees   with
16        current  earnings, an amount payable which, over a period
17        of 20 years beginning with the year following an award of
18        benefit, will amortize, at the effective  rate  for  that
19        year,  any  negative  balance in its municipality reserve
20        resulting from the award.  This amount  when  established
21        will be payable as a separate contribution whether or not
22        it later has participating employees.
23        (b)  A  separate  municipality contribution rate shall be
24    determined for  each  calendar  year  for  all  participating
25    municipalities  together  with all instrumentalities thereof.
26    The municipality contribution rate shall  be  determined  for
27    participating instrumentalities as if they were participating
28    municipalities.   The municipality contribution rate shall be
29    the sum of the following percentages:
30             1.  The  percentage   of   earnings   of   all   the
31        participating     employees    of    all    participating
32        municipalities and participating instrumentalities which,
33        if paid over the entire period of their service, will  be
34        sufficient  when combined with all employee contributions
 
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 1        available for the payment of  benefits,  to  provide  all
 2        annuities  for  participating  employees,  and the $5,000
 3        $3,000 death benefit payable  under  Sections  7-158  and
 4        7-164,  such  percentage  to  be known as the normal cost
 5        rate.
 6             2.  The percentage of earnings of the  participating
 7        employees   of   each   participating   municipality  and
 8        participating instrumentalities necessary to  adjust  for
 9        the difference between the present value of all benefits,
10        excluding  temporary  and  total and permanent disability
11        and death benefits, to be provided for its  participating
12        employees  and  the  sum  of its accumulated municipality
13        contributions and the accumulated employee  contributions
14        and  the  present  value  of expected future employee and
15        municipality contributions pursuant to subparagraph 1  of
16        this paragraph (b).  This adjustment shall be spread over
17        the  remainder  of  the  period  that  is allowable under
18        generally accepted accounting principles.
19             3.  The percentage of earnings of the  participating
20        employees   of   all   municipalities  and  participating
21        instrumentalities necessary to provide the present  value
22        of  all  temporary  and  total  and  permanent disability
23        benefits granted during the most recent  year  for  which
24        information is available.
25             4.  The  percentage of earnings of the participating
26        employees  of  all   participating   municipalities   and
27        participating  instrumentalities necessary to provide the
28        present value  of  the  net  single  sum  death  benefits
29        expected  to  become payable from the reserve established
30        under Section 7-206 during the year for which  this  rate
31        is fixed.
32             5.  The percentage of earnings necessary to meet any
33        deficiency   arising   in   the  Terminated  Municipality
34        Reserve.
 
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 1        (c)  A separate municipality contribution rate  shall  be
 2    computed for each participating municipality or participating
 3    instrumentality for its sheriff's law enforcement employees.
 4        A   separate  municipality  contribution  rate  shall  be
 5    computed for the sheriff's law enforcement employees of  each
 6    forest  preserve district that elects to have such employees.
 7    For the period from January 1, 1986  to  December  31,  1986,
 8    such  rate  shall  be  the forest preserve district's regular
 9    rate plus 2%.
10        In the event that the Board determines that there  is  an
11    actuarial  deficiency in the account of any municipality with
12    respect to a person who has elected  to  participate  in  the
13    Fund under Section 3-109.1 of this Code, the Board may adjust
14    the  municipality's  contribution  rate so as to make up that
15    deficiency over such reasonable period of time as  the  Board
16    may determine.
17        (d)  The  Board  may  establish  a  separate municipality
18    contribution  rate  for  all  employees   who   are   program
19    participants   employed   under   the  federal  Comprehensive
20    Employment  Training  Act  by  all   of   the   participating
21    municipalities  and  instrumentalities.   The  Board may also
22    provide that, in lieu of a  separate  municipality  rate  for
23    these  employees, a portion of the municipality contributions
24    for such program participants shall be refunded or  an  extra
25    charge   assessed   so   that   the  amount  of  municipality
26    contributions retained or received by the fund for  all  CETA
27    program  participants  shall be an amount equal to that which
28    would be provided by the separate  municipality  contribution
29    rate  for  all  such  program participants.  Refunds shall be
30    made to prime sponsors of programs upon submission of a claim
31    therefor and extra charges shall be assessed to participating
32    municipalities and instrumentalities.   In  establishing  the
33    municipality  contribution  rate as provided in paragraph (b)
34    of  this  Section,  the  use  of  a   separate   municipality
 
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 1    contribution rate for program participants or the refund of a
 2    portion  of  the  municipality contributions, as the case may
 3    be, may be considered.
 4        (e)  Computations of municipality contribution rates  for
 5    the  following  calendar  year  shall  be  made  prior to the
 6    beginning of each year, from the information available at the
 7    time the computations are made, and on  the  assumption  that
 8    the   employees   in   each   participating  municipality  or
 9    participating instrumentality at such time will  continue  in
10    service  until  the  end  of  such  calendar  year  at  their
11    respective rates of earnings at such time.
12        (f)  Any  municipality  which  is  the recipient of State
13    allocations representing  that  municipality's  contributions
14    for retirement annuity purposes on behalf of its employees as
15    provided  in Section 12-21.16 of the Illinois Public Aid Code
16    shall pay the allocations so received to the Board  for  such
17    purpose.   Estimates  of  State  allocations  to  be received
18    during  any  taxable  year  shall  be   considered   in   the
19    determination  of  the  municipality's tax rate for that year
20    under Section 7-171.   If  a  special  tax  is  levied  under
21    Section  7-171, none of the proceeds may be used to reimburse
22    the municipality for the amount of State allocations received
23    and paid to the Board.  Any multiple-county  or  consolidated
24    health  department which receives contributions from a county
25    under Section 11.2 of "An Act in  relation  to  establishment
26    and   maintenance   of   county  and  multiple-county  health
27    departments",  approved  July  9,  1943,   as   amended,   or
28    distributions  under  Section  3  of the Department of Public
29    Health  Act,  shall   use   these   only   for   municipality
30    contributions by the health department.
31        (g)  Municipality  contributions for the several purposes
32    specified shall, for township treasurers and employees in the
33    offices of the township treasurers who  meet  the  qualifying
34    conditions  for  coverage  hereunder,  be allocated among the
 
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 1    several  school  districts  and  parts  of  school  districts
 2    serviced by such treasurers and employees in  the  proportion
 3    which  the amount of school funds of each district or part of
 4    a district handled by the treasurer bears to the total amount
 5    of all school funds handled by the treasurer.
 6        From the funds subject to allocation among districts  and
 7    parts  of districts pursuant to the School Code, the trustees
 8    shall withhold the proportionate share of the  liability  for
 9    municipality  contributions  imposed  upon  such districts by
10    this Section, in respect  to  such  township  treasurers  and
11    employees and remit the same to the Board.
12        The  municipality  contribution  rate  for an educational
13    service center shall initially be the same rate for each year
14    as the regional office of education or school district  which
15    serves  as  its  administrative  agent.   When actuarial data
16    become available, a separate rate  shall  be  established  as
17    provided in subparagraph (i) of this Section.
18        The  municipality  contribution rate for a public agency,
19    other than a vocational education cooperative,  formed  under
20    the  Intergovernmental Cooperation Act shall initially be the
21    average rate for the municipalities which are parties to  the
22    intergovernmental  agreement.   When  actuarial  data  become
23    available,  a  separate rate shall be established as provided
24    in subparagraph (i) of this Section.
25        (h)  Each participating  municipality  and  participating
26    instrumentality  shall  make the contributions in the amounts
27    provided in this Section in the manner prescribed  from  time
28    to  time  by  the  Board  and all such contributions shall be
29    obligations of the  respective  participating  municipalities
30    and   participating  instrumentalities  to  this  fund.   The
31    failure  to  deduct  any  employee  contributions  shall  not
32    relieve  the  participating  municipality  or   participating
33    instrumentality  of  its obligation to this fund.  Delinquent
34    payments of contributions due under this  Section  may,  with
 
                            -13-     LRB093 06101 LRD 06206 b
 1    interest,   be   recovered   by   civil  action  against  the
 2    participating      municipalities      or       participating
 3    instrumentalities.   Municipality  contributions,  other than
 4    the amount necessary for employee  contributions  and  Social
 5    Security  contributions,  for periods of service by employees
 6    from whose earnings no  deductions  were  made  for  employee
 7    contributions to the fund, may be charged to the municipality
 8    reserve     for    the    municipality    or    participating
 9    instrumentality.
10        (i)  Contributions  by  participating   instrumentalities
11    shall  be  determined  as  provided  herein  except  that the
12    percentage derived under subparagraph 2 of paragraph  (b)  of
13    this  Section, and the amount payable under subparagraph 5 of
14    paragraph  (a)  of  this  Section,  shall  be  based  on   an
15    amortization period of 10 years.
16    (Source: P.A. 92-424, eff. 8-17-01.)

17        (40 ILCS 5/7-205) (from Ch. 108 1/2, par. 7-205)
18        Sec. 7-205. Reserves for annuities.  Appropriate reserves
19    shall  be  created for payment of all annuities granted under
20    this Article at the time such annuities are  granted  and  in
21    amounts  determined  to  be  necessary under actuarial tables
22    adopted by the Board upon recommendation of  the  actuary  of
23    the  fund.    All  annuities  payable shall be charged to the
24    annuity reserve.
25        1.  Amounts credited to annuity reserves shall be derived
26    by transfer of all the employee credits from the  appropriate
27    employee  reserves and by charges to the municipality reserve
28    of those municipalities in which the  retiring  employee  has
29    accumulated  service.  If a retiring employee has accumulated
30    service  in  more  than  one  participating  municipality  or
31    participating instrumentality, aggregate municipality charges
32    shall be prorated on a basis of the  employee's  earnings  in
33    case  of  concurrent  service and creditable service in other
 
                            -14-     LRB093 06101 LRD 06206 b
 1    cases.
 2        2.  Supplemental annuities shall be handled as a separate
 3    annuity and amounts to be credited  to  the  annuity  reserve
 4    therefor  shall  be  derived  in the same manner as a regular
 5    annuity.
 6        3.  When a retirement annuity is granted to  an  employee
 7    with  a spouse eligible for a surviving spouse annuity, there
 8    shall be credited to the annuity reserve an  amount  to  fund
 9    the  cost of both the retirement and surviving spouse annuity
10    as a joint and survivors annuity.
11        4.  Beginning January 1, 1989, when a retirement  annuity
12    is  awarded,  an  amount  equal  to  the present value of the
13    $3,000 or $5,000 death benefit payable upon the death of  the
14    annuitant  shall  be  transferred to the annuity reserve from
15    the appropriate municipality reserves in the same  manner  as
16    the transfer for annuities.
17        5.  All annuity reserves shall be revalued annually as of
18    December  31.   Beginning as of December 31, 1973, adjustment
19    required therein by such  revaluation  shall  be  charged  or
20    credited to the earnings and experience variation reserve.
21        6.  There shall be credited to the annuity reserve all of
22    the  payments  made by annuitants under Section 7-144.2, plus
23    an  additional  amount  from  the  earnings  and   experience
24    variation  reserve  to  fund  the  cost  of  the  incremental
25    annuities granted to annuitants making these payments.
26        7.  As  of  December  31, 1972, the excess in the annuity
27    reserve shall be transferred to  the  municipality  reserves.
28    An   amount  equal  to  the  deficiency  in  the  reserve  of
29    participating      municipalities      and      participating
30    instrumentalities which have no participating employees shall
31    be allocated to  their  reserves.   The  remainder  shall  be
32    allocated  in  amounts proportionate to the present value, as
33    of January  1,  1972,  of  annuities  of  annuitants  of  the
34    remaining   participating  municipalities  and  participating
 
                            -15-     LRB093 06101 LRD 06206 b
 1    instrumentalities.
 2    (Source: P.A. 89-136, eff. 7-14-95.)

 3        (40 ILCS 5/7-206) (from Ch. 108 1/2, par. 7-206)
 4        Sec. 7-206.  Death Reserve.  All death  benefit  payments
 5    shall  be charged to the Death Reserve, other than the $3,000
 6    or $5,000 death benefits paid after December  31,  1988  upon
 7    the  death  of  an  annuitant.   All  contributions for death
 8    purposes under Section 7-172(b)4 shall  be  credited  to  the
 9    same  reserve.   Whenever  the balance in such reserve at the
10    close of a year exceeds 100% of the average annual charges to
11    this account during the 3 preceding calendar years, the basic
12    actuarial assumptions upon  which  municipality  contribution
13    rates  for  these  purposes  are based, shall be reviewed and
14    revised in such manner as is deemed necessary to reduce  such
15    balance.
16    (Source: P.A. 89-136, eff. 7-14-95.)

17        Section  90.  The State Mandates Act is amended by adding
18    Section 8.27 as follows:

19        (30 ILCS 805/8.27 new)
20        Sec. 8.27. Exempt mandate.   Notwithstanding  Sections  6
21    and  8 of this Act, no reimbursement by the State is required
22    for  the  implementation  of  any  mandate  created  by  this
23    amendatory Act of the 93rd General Assembly.

24        Section 99. Effective date.  This Act takes  effect  upon
25    becoming law.