Personnel and Pensions Committee

Adopted in House Comm. on Feb 28, 2006

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 4973

2     AMENDMENT NO. ______. Amend House Bill 4973 by replacing
3 everything after the enacting clause with the following:
 
4     "Section 5. The Illinois Pension Code is amended by
5 changing Sections 7-114, 7-135, 7-139, 7-145.1, 7-170, 7-171,
6 7-172, 7-173, 7-204, 7-205, and 7-211 and by adding Section
7 7-153.1 as follows:
 
8     (40 ILCS 5/7-114)  (from Ch. 108 1/2, par. 7-114)
9     Sec. 7-114. Earnings. "Earnings":
10     (a) An amount to be determined by the board, equal to the
11 sum of:
12         1. The total amount of money paid to an employee for
13     personal services or official duties as an employee (except
14     those employed as independent contractors) paid out of the
15     general fund, or out of any special funds controlled by the
16     municipality, or by any instrumentality thereof, or
17     participating instrumentality, including compensation,
18     fees, allowances, or other emolument paid for official
19     duties (but not including automobile maintenance, travel
20     expense, or reimbursements for expenditures incurred in
21     the performance of duties) and, for fee offices, the fees
22     or earnings of the offices to the extent such fees are paid
23     out of funds controlled by the municipality, or
24     instrumentality or participating instrumentality; and

 

 

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1         2. The money value, as determined by rules prescribed
2     by the governing body of the municipality, or
3     instrumentality thereof, of any board, lodging, fuel,
4     laundry, and other allowances provided an employee in lieu
5     of money.
6     (b) For purposes of determining benefits payable under this
7 fund payments to a person who is engaged in an independently
8 established trade, occupation, profession or business and who
9 is paid for his service on a basis other than a monthly or
10 other regular salary, are not earnings.
11     (c) If a disabled participating employee is eligible to
12 receive Workers' Compensation for an accidental injury and the
13 participating municipality or instrumentality which employed
14 the participating employee when injured continues to pay the
15 participating employee regular salary or other compensation or
16 pays the employee an amount in excess of the Workers'
17 Compensation amount, then earnings shall be deemed to be the
18 total payments, including an amount equal to the Workers'
19 Compensation payments. These payments shall be subject to
20 employee contributions and allocated as if paid to the
21 participating employee when the regular payroll amounts would
22 have been paid if the participating employee had continued
23 working, and creditable service shall be awarded for this
24 period.
25     (d) If an elected official who is a participating employee
26 becomes disabled but does not resign and is not removed from
27 office, then earnings shall include all salary payments made
28 for the remainder of that term of office and the official shall
29 be awarded creditable service for the term of office.
30     (e) If a participating employee is paid pursuant to "An Act
31 to provide for the continuation of compensation for law
32 enforcement officers, correctional officers and firemen who
33 suffer disabling injury in the line of duty", approved
34 September 6, 1973, as amended, the payments shall be deemed

 

 

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1 earnings, and the participating employee shall be awarded
2 creditable service for this period.
3     (f) Additional compensation received by a person while
4 serving as a supervisor of assessments, assessor, deputy
5 assessor or member of a board of review from the State of
6 Illinois pursuant to Section 4-10 or 4-15 of the Property Tax
7 Code shall not be earnings for purposes of this Article and
8 shall not be included in the contribution formula or
9 calculation of benefits for such person pursuant to this
10 Article.
11     (g) Any moneys received by an elected official who has
12 elected to establish alternative credit under Section 7-145.1
13 before this amendatory Act of the 94th General Assembly from
14 the State of Illinois for service in that capacity shall be
15 deemed earnings unless specifically excluded in this Code.
16 (Source: P.A. 87-740; 88-670, eff. 12-2-94.)
 
17     (40 ILCS 5/7-135)  (from Ch. 108 1/2, par. 7-135)
18     Sec. 7-135. Authorized agents.
19     (a) Each participating municipality and participating
20 instrumentality shall appoint an authorized agent who shall
21 have the powers and duties set forth in this section. In
22 absence of such appointment, the duties of the authorized agent
23 shall devolve upon the clerk or secretary of the municipality
24 or instrumentality and in the case of township school trustees
25 upon the township school treasurer. In townships the Authorized
26 Agent shall be the township supervisor.
27     (b) The authorized agent shall have the following powers
28 and duties:
29         1. To certify to the fund whether or not a given person
30     is authorized to participate in the fund;
31         2. To certify to the fund when a participating employee
32     is on a leave of absence authorized by the municipality;
33         3. To request the proper officer to cause employee

 

 

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1     contributions to be withheld from earnings and transmitted
2     to the fund;
3         4. To request the proper officer to cause municipality
4     contributions to be forwarded to the fund promptly;
5         5. To forward promptly to all participating employees
6     any communications from the fund for such employees;
7         6. To forward promptly to the fund all applications,
8     claims, reports and other communications delivered to him
9     by participating employees;
10         7. To perform all duties related to the administration
11     of this retirement system as requested by the fund and the
12     governing body of his municipality.
13     (c) The governing body of each participating municipality
14 and participating instrumentality may delegate any or all of
15 the following powers and duties to its authorized agent, but
16 only if the agent is a member of the fund:
17         1. To file a petition for nomination of an executive
18     trustee of the fund.
19         2. To cast the ballot for election of an executive
20     trustee of the fund.
21     If a governing body does not authorize its agent to perform
22 the powers and duties set forth in this paragraph (c), they
23 shall be performed by the governing body itself, unless the
24 governing body by resolution duly certified to the fund
25 delegates them to some other officer or employee.
26     (d) The delivery of any communication or document by an
27 employee or a participating municipality or participating
28 instrumentality to its authorized agent shall not constitute
29 delivery to the fund.
30 (Source: P.A. 87-740.)
 
31     (40 ILCS 5/7-139)  (from Ch. 108 1/2, par. 7-139)
32     Sec. 7-139. Credits and creditable service to employees.
33     (a) Each participating employee shall be granted credits

 

 

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1 and creditable service, for purposes of determining the amount
2 of any annuity or benefit to which he or a beneficiary is
3 entitled, as follows:
4         1. For prior service: Each participating employee who
5     is an employee of a participating municipality or
6     participating instrumentality on the effective date shall
7     be granted creditable service, but no credits under
8     paragraph 2 of this subsection (a), for periods of prior
9     service for which credit has not been received under any
10     other pension fund or retirement system established under
11     this Code, as follows:
12         If the effective date of participation for the
13     participating municipality or participating
14     instrumentality is on or before January 1, 1998, creditable
15     service shall be granted for the entire period of prior
16     service with that employer without any employee
17     contribution.
18         If the effective date of participation for the
19     participating municipality or participating
20     instrumentality is after January 1, 1998, creditable
21     service shall be granted for the last 20% of the period of
22     prior service with that employer, but no more than 5 years,
23     without any employee contribution. A participating
24     employee may establish creditable service for the
25     remainder of the period of prior service with that employer
26     by making an application in writing, accompanied by payment
27     of an employee contribution in an amount determined by the
28     Fund, based on the employee contribution rates in effect at
29     the time of application for the creditable service and the
30     employee's salary rate on the effective date of
31     participation for that employer, plus interest at the
32     effective rate from the date of the prior service to the
33     date of payment. Application for this creditable service
34     may be made at any time while the employee is still in

 

 

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1     service.
2         A municipality that (i) has at least 35 employees; (ii)
3     is located in a county with at least 2,000,000 inhabitants;
4     and (iii) maintains an independent defined benefit pension
5     plan for the benefit of its eligible employees may restrict
6     creditable service in whole or in part for periods of prior
7     service with the employer if the governing body of the
8     municipality adopts an irrevocable resolution to restrict
9     that creditable service and files the resolution with the
10     board before the municipality's effective date of
11     participation.
12         Any person who has withdrawn from the service of a
13     participating municipality or participating
14     instrumentality prior to the effective date, who reenters
15     the service of the same municipality or participating
16     instrumentality after the effective date and becomes a
17     participating employee is entitled to creditable service
18     for prior service as otherwise provided in this subdivision
19     (a)(1) only if he or she renders 2 years of service as a
20     participating employee after the effective date.
21     Application for such service must be made while in a
22     participating status. The salary rate to be used in the
23     calculation of the required employee contribution, if any,
24     shall be the employee's salary rate at the time of first
25     reentering service with the employer after the employer's
26     effective date of participation.
27         2. For current service, each participating employee
28     shall be credited with:
29             a. Additional credits of amounts equal to each
30         payment of additional contributions received from him
31         under Section 7-173, as of the date the corresponding
32         payment of earnings is payable to him.
33             b. Normal credits of amounts equal to each payment
34         of normal contributions received from him, as of the

 

 

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1         date the corresponding payment of earnings is payable
2         to him, and normal contributions made for the purpose
3         of establishing out-of-state service credits as
4         permitted under the conditions set forth in paragraph 6
5         of this subsection (a).
6             c. Municipality credits in an amount equal to 1.4
7         times the normal credits, except those established by
8         out-of-state service credits, as of the date of
9         computation of any benefit if these credits would
10         increase the benefit.
11             d. Survivor credits equal to each payment of
12         survivor contributions received from the participating
13         employee as of the date the corresponding payment of
14         earnings is payable, and survivor contributions made
15         for the purpose of establishing out-of-state service
16         credits.
17         3. For periods of temporary and total and permanent
18     disability benefits, each employee receiving disability
19     benefits shall be granted creditable service for the period
20     during which disability benefits are payable. Normal and
21     survivor credits, based upon the rate of earnings applied
22     for disability benefits, shall also be granted if such
23     credits would result in a higher benefit to any such
24     employee or his beneficiary.
25         4. For authorized leave of absence without pay: A
26     participating employee shall be granted credits and
27     creditable service for periods of authorized leave of
28     absence without pay under the following conditions:
29             a. An application for credits and creditable
30         service is submitted to the board while the employee is
31         in a status of active employment, and within 2 years
32         after termination of the leave of absence period for
33         which credits and creditable service are sought.
34             b. Not more than 12 complete months of creditable

 

 

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1         service for authorized leave of absence without pay
2         shall be counted for purposes of determining any
3         benefits payable under this Article.
4             c. Credits and creditable service shall be granted
5         for leave of absence only if such leave is approved by
6         the governing body of the municipality, including
7         approval of the estimated cost thereof to the
8         municipality as determined by the fund, and employee
9         contributions, plus interest at the effective rate
10         applicable for each year from the end of the period of
11         leave to date of payment, have been paid to the fund in
12         accordance with Section 7-173. The contributions shall
13         be computed upon the assumption earnings continued
14         during the period of leave at the rate in effect when
15         the leave began.
16             d. Benefits under the provisions of Sections
17         7-141, 7-146, 7-150 and 7-163 shall become payable to
18         employees on authorized leave of absence, or their
19         designated beneficiary, only if such leave of absence
20         is creditable hereunder, and if the employee has at
21         least one year of creditable service other than the
22         service granted for leave of absence. Any employee
23         contributions due may be deducted from any benefits
24         payable.
25             e. No credits or creditable service shall be
26         allowed for leave of absence without pay during any
27         period of prior service.
28         5. For military service: The governing body of a
29     municipality or participating instrumentality may elect to
30     allow creditable service to participating employees who
31     leave their employment to serve in the armed forces of the
32     United States for all periods of such service, provided
33     that the person returns to active employment within 90 days
34     after completion of full time active duty, but no

 

 

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1     creditable service shall be allowed such person for any
2     period that can be used in the computation of a pension or
3     any other pay or benefit, other than pay for active duty,
4     for service in any branch of the armed forces of the United
5     States. If necessary to the computation of any benefit, the
6     board shall establish municipality credits for
7     participating employees under this paragraph on the
8     assumption that the employee received earnings at the rate
9     received at the time he left the employment to enter the
10     armed forces. A participating employee in the armed forces
11     shall not be considered an employee during such period of
12     service and no additional death and no disability benefits
13     are payable for death or disability during such period.
14         Any participating employee who left his employment
15     with a municipality or participating instrumentality to
16     serve in the armed forces of the United States and who
17     again became a participating employee within 90 days after
18     completion of full time active duty by entering the service
19     of a different municipality or participating
20     instrumentality, which has elected to allow creditable
21     service for periods of military service under the preceding
22     paragraph, shall also be allowed creditable service for his
23     period of military service on the same terms that would
24     apply if he had been employed, before entering military
25     service, by the municipality or instrumentality which
26     employed him after he left the military service and the
27     employer costs arising in relation to such grant of
28     creditable service shall be charged to and paid by that
29     municipality or instrumentality.
30         Notwithstanding the foregoing, any participating
31     employee shall be entitled to creditable service as
32     required by any federal law relating to re-employment
33     rights of persons who served in the United States Armed
34     Services. Such creditable service shall be granted upon

 

 

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1     payment by the member of an amount equal to the employee
2     contributions which would have been required had the
3     employee continued in service at the same rate of earnings
4     during the military leave period, plus interest at the
5     effective rate.
6         5.1. In addition to any creditable service established
7     under paragraph 5 of this subsection (a), creditable
8     service may be granted for up to 24 months of service in
9     the armed forces of the United States.
10         In order to receive creditable service for military
11     service under this paragraph 5.1, a participating employee
12     must (1) apply to the Fund in writing and provide evidence
13     of the military service that is satisfactory to the Board;
14     (2) obtain the written approval of the current employer;
15     and (3) make contributions to the Fund equal to (i) the
16     employee contributions that would have been required had
17     the service been rendered as a member, plus (ii) an amount
18     determined by the board to be equal to the employer's
19     normal cost of the benefits accrued for that military
20     service, plus (iii) interest on items (i) and (ii) from the
21     date of first membership in the Fund to the date of
22     payment. If payment is made during the 6-month period that
23     begins 3 months after the effective date of this amendatory
24     Act of 1997, the required interest shall be at the rate of
25     2.5% per year, compounded annually; otherwise, the
26     required interest shall be calculated at the regular
27     interest rate.
28         6. For out-of-state service: Creditable service shall
29     be granted for service rendered to an out-of-state local
30     governmental body under the following conditions: The
31     employee had participated and has irrevocably forfeited
32     all rights to benefits in the out-of-state public employees
33     pension system; the governing body of his participating
34     municipality or instrumentality authorizes the employee to

 

 

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1     establish such service; the employee has 2 years current
2     service with this municipality or participating
3     instrumentality; the employee makes a payment of
4     contributions, which shall be computed at 8% (normal) plus
5     2% (survivor) times length of service purchased times the
6     average rate of earnings for the first 2 years of service
7     with the municipality or participating instrumentality
8     whose governing body authorizes the service established
9     plus interest at the effective rate on the date such
10     credits are established, payable from the date the employee
11     completes the required 2 years of current service to date
12     of payment. In no case shall more than 120 months of
13     creditable service be granted under this provision.
14         7. For retroactive service: Any employee who could have
15     but did not elect to become a participating employee, or
16     who should have been a participant in the Municipal Public
17     Utilities Annuity and Benefit Fund before that fund was
18     superseded, may receive creditable service for the period
19     of service not to exceed 50 months; however, a current or
20     former elected or appointed official of a participating
21     municipality may establish credit under this paragraph 7
22     for more than 50 months of service as an official of that
23     municipality, if the excess over 50 months is approved by
24     resolution of the governing body of the affected
25     municipality filed with the Fund before January 1, 2002.
26         Any employee who is a participating employee on or
27     after September 24, 1981 and who was excluded from
28     participation by the age restrictions removed by Public Act
29     82-596 may receive creditable service for the period, on or
30     after January 1, 1979, excluded by the age restriction and,
31     in addition, if the governing body of the participating
32     municipality or participating instrumentality elects to
33     allow creditable service for all employees excluded by the
34     age restriction prior to January 1, 1979, for service

 

 

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1     during the period prior to that date excluded by the age
2     restriction. Any employee who was excluded from
3     participation by the age restriction removed by Public Act
4     82-596 and who is not a participating employee on or after
5     September 24, 1981 may receive creditable service for
6     service after January 1, 1979. Creditable service under
7     this paragraph shall be granted upon payment of the
8     employee contributions which would have been required had
9     he participated, with interest at the effective rate for
10     each year from the end of the period of service established
11     to date of payment.
12         8. For accumulated unused sick leave: A participating
13     employee who is applying for a retirement annuity shall be
14     entitled to creditable service for that portion of the
15     employee's accumulated unused sick leave for which payment
16     is not received, as follows:
17             a. Sick leave days shall be limited to those
18         accumulated under a sick leave plan established by a
19         participating municipality or participating
20         instrumentality which is available to all employees or
21         a class of employees.
22             b. Only sick leave days accumulated with a
23         participating municipality or participating
24         instrumentality with which the employee was in service
25         within 60 days of the effective date of his retirement
26         annuity shall be credited; If the employee was in
27         service with more than one employer during this period
28         only the sick leave days with the employer with which
29         the employee has the greatest number of unpaid sick
30         leave days shall be considered.
31             c. The creditable service granted shall be
32         considered solely for the purpose of computing the
33         amount of the retirement annuity and shall not be used
34         to establish any minimum service period required by any

 

 

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1         provision of the Illinois Pension Code, the effective
2         date of the retirement annuity, or the final rate of
3         earnings.
4             d. The creditable service shall be at the rate of
5         1/20 of a month for each full sick day, provided that
6         no more than 12 months may be credited under this
7         subdivision 8.
8             e. Employee contributions shall not be required
9         for creditable service under this subdivision 8.
10             f. Each participating municipality and
11         participating instrumentality with which an employee
12         has service within 60 days of the effective date of his
13         retirement annuity shall certify to the board the
14         number of accumulated unpaid sick leave days credited
15         to the employee at the time of termination of service.
16         9. For service transferred from another system:
17     Credits and creditable service shall be granted for service
18     under Article 3, 4, 5, 14 or 16 of this Act, to any active
19     member of this Fund, and to any inactive member who has
20     been a county sheriff, upon transfer of such credits
21     pursuant to Section 3-110.3, 4-108.3, 5-235, 14-105.6 or
22     16-131.4, and payment by the member of the amount by which
23     (1) the employer and employee contributions that would have
24     been required if he had participated in this Fund as a
25     sheriff's law enforcement employee during the period for
26     which credit is being transferred, plus interest thereon at
27     the effective rate for each year, compounded annually, from
28     the date of termination of the service for which credit is
29     being transferred to the date of payment, exceeds (2) the
30     amount actually transferred to the Fund. Such transferred
31     service shall be deemed to be service as a sheriff's law
32     enforcement employee for the purposes of Section 7-142.1.
33         10. For service transferred from an Article 3 system
34     under Section 3-110.8: Credits and creditable service

 

 

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1     shall be granted for service under Article 3 of this Act as
2     provided in Section 3-110.8, to any active member of this
3     Fund upon transfer of such credits pursuant to Section
4     3-110.8. If the amount by which (1) the employer and
5     employee contributions that would have been required if he
6     had participated in this Fund during the period for which
7     credit is being transferred, plus interest thereon at the
8     effective rate for each year, compounded annually, from the
9     date of termination of the service for which credit is
10     being transferred to the date of payment, exceeds (2) the
11     amount actually transferred to the Fund, then the amount of
12     creditable service established under this paragraph 10
13     shall be reduced by a corresponding amount in accordance
14     with the rules and procedures established under this
15     paragraph 10.
16         The board shall establish by rule the manner of making
17     the calculation required under this paragraph 10, taking
18     into account the appropriate actuarial assumptions; the
19     member's service, age, and salary history; the level of
20     funding of the employer; and any other factors that the
21     board determines to be relevant.
22     (b) Creditable service - amount:
23         1. One month of creditable service shall be allowed for
24     each month for which a participating employee made
25     contributions as required under Section 7-173, or for which
26     creditable service is otherwise granted hereunder. Not
27     more than 1 month of service shall be credited and counted
28     for 1 calendar month, and not more than 1 year of service
29     shall be credited and counted for any calendar year. A
30     calendar month means a nominal month beginning on the first
31     day thereof, and a calendar year means a year beginning
32     January 1 and ending December 31.
33         2. A seasonal employee shall be given 12 months of
34     creditable service if he renders the number of months of

 

 

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1     service normally required by the position in a 12-month
2     period and he remains in service for the entire 12-month
3     period. Otherwise a fractional year of service in the
4     number of months of service rendered shall be credited.
5         3. An intermittent employee shall be given creditable
6     service for only those months in which a contribution is
7     made under Section 7-173.
8     (c) No application for correction of credits or creditable
9 service shall be considered unless the board receives an
10 application for correction while (1) the applicant is a
11 participating employee and in active employment with a
12 participating municipality or instrumentality, or (2) while
13 the applicant is actively participating in a pension fund or
14 retirement system which is a participating system under the
15 Retirement Systems Reciprocal Act. A participating employee or
16 other applicant shall not be entitled to credits or creditable
17 service unless the required employee contributions are made in
18 a lump sum or in installments made in accordance with board
19 rule.
20     (d) Upon the granting of a retirement, surviving spouse or
21 child annuity, a death benefit or a separation benefit, on
22 account of any employee, all individual accumulated credits
23 shall thereupon terminate. Upon the withdrawal of additional
24 contributions, the credits applicable thereto shall thereupon
25 terminate. Terminated credits shall not be applied to increase
26 the benefits any remaining employee would otherwise receive
27 under this Article.
28 (Source: P.A. 93-933, eff. 8-13-04; 94-356, eff. 7-29-05.)
 
29     (40 ILCS 5/7-145.1)
30     Sec. 7-145.1. Alternative annuity for county officers.
31     (a) The benefits provided in this Section and Section
32 7-145.2 are available only if (1) the county board has filed
33 with the Board of the Fund a resolution or ordinance expressly

 

 

09400HB4973ham001 - 16 - LRB094 15880 AMC 56694 a

1 consenting to the availability of these benefits for its
2 elected county officers and (2) the elected county officer has
3 elected to establish alternative credit under this Section
4 before the effective date of this amendatory Act of the 94th
5 General Assembly. The county board's consent is irrevocable
6 with respect to persons participating in the program, but may
7 be revoked at any time with respect to persons who have not
8 paid an additional optional contribution under this Section
9 before the date of revocation.
10     An elected county officer may elect to establish
11 alternative credits for an alternative annuity by electing in
12 writing before the effective date of this amendatory Act of the
13 94th General Assembly to make additional optional
14 contributions in accordance with this Section and procedures
15 established by the board. These alternative credits are
16 available only for periods of service as an elected county
17 officer. The elected county officer may discontinue making the
18 additional optional contributions by notifying the Fund in
19 writing in accordance with this Section and procedures
20 established by the board.
21     Additional optional contributions for the alternative
22 annuity shall be as follows:
23         (1) For service as an elected county officer after the
24     option is elected, an additional contribution of 3% of
25     salary shall be contributed to the Fund on the same basis
26     and under the same conditions as contributions required
27     under Section 7-173.
28         (2) For service as an elected county officer before the
29     option is elected, an additional contribution of 3% of the
30     salary for the applicable period of service, plus interest
31     at the effective rate from the date of service to the date
32     of payment, plus any additional amount required by the
33     county board under paragraph (3). All payments for past
34     service must be paid in full before credit is given.

 

 

09400HB4973ham001 - 17 - LRB094 15880 AMC 56694 a

1         (3) With respect to service as an elected county
2     officer before the option is elected, if payment is made
3     after the county board has filed with the Board of the Fund
4     a resolution or ordinance requiring an additional
5     contribution under this paragraph, then the contribution
6     required under paragraph (2) shall include an amount to be
7     determined by the Fund, equal to the actuarial present
8     value of the additional employer cost that would otherwise
9     result from the alternative credits being established for
10     that service. A county board's resolution or ordinance
11     requiring additional contributions under this paragraph
12     (3) is irrevocable.
13     No additional optional contributions may be made for any
14 period of service for which credit has been previously
15 forfeited by acceptance of a refund, unless the refund is
16 repaid in full with interest at the effective rate from the
17 date of refund to the date of repayment.
18     (b) In lieu of the retirement annuity otherwise payable
19 under this Article, an elected county officer who (1) has
20 elected to participate in the Fund and make additional optional
21 contributions in accordance with this Section, (2) has held and
22 made additional optional contributions with respect to the same
23 elected county office for at least 8 years, and (3) has
24 attained age 55 with at least 8 years of service credit (or has
25 attained age 50 with at least 20 years of service as a
26 sheriff's law enforcement employee) may elect to have his
27 retirement annuity computed as follows: 3% of the participant's
28 salary for each of the first 8 years of service credit, plus 4%
29 of that salary for each of the next 4 years of service credit,
30 plus 5% of that salary for each year of service credit in
31 excess of 12 years, subject to a maximum of 80% of that salary.
32     This formula applies only to service in an elected county
33 office that the officer held for at least 8 years, and only to
34 service for which additional optional contributions have been

 

 

09400HB4973ham001 - 18 - LRB094 15880 AMC 56694 a

1 paid under this Section. If an elected county officer qualifies
2 to have this formula applied to service in more than one
3 elected county office, the qualifying service shall be
4 accumulated for purposes of determining the applicable accrual
5 percentages, but the salary used for each office shall be the
6 separate salary calculated for that office, as defined in
7 subsection (g).
8     To the extent that the elected county officer has service
9 credit that does not qualify for this formula, his retirement
10 annuity will first be determined in accordance with this
11 formula with respect to the service to which this formula
12 applies, and then in accordance with the remaining Sections of
13 this Article with respect to the service to which this formula
14 does not apply.
15     (c) In lieu of the disability benefits otherwise payable
16 under this Article, an elected county officer who (1) has
17 elected to participate in the Fund, and (2) has become
18 permanently disabled and as a consequence is unable to perform
19 the duties of his office, and (3) was making optional
20 contributions in accordance with this Section at the time the
21 disability was incurred, may elect to receive a disability
22 annuity calculated in accordance with the formula in subsection
23 (b). For the purposes of this subsection, an elected county
24 officer shall be considered permanently disabled only if: (i)
25 disability occurs while in service as an elected county officer
26 and is of such a nature as to prevent him from reasonably
27 performing the duties of his office at the time; and (ii) the
28 board has received a written certification by at least 2
29 licensed physicians appointed by it stating that the officer is
30 disabled and that the disability is likely to be permanent.
31     (d) Refunds of additional optional contributions shall be
32 made on the same basis and under the same conditions as
33 provided under Section 7-166, 7-167 and 7-168. Interest shall
34 be credited at the effective rate on the same basis and under

 

 

09400HB4973ham001 - 19 - LRB094 15880 AMC 56694 a

1 the same conditions as for other contributions.
2     If an elected county officer fails to hold that same
3 elected county office for at least 8 years, he or she shall be
4 entitled after leaving office to receive a refund of the
5 additional optional contributions made with respect to that
6 office, plus interest at the effective rate.
7     (e) The plan of optional alternative benefits and
8 contributions shall be available to persons who are elected
9 county officers and active contributors to the Fund on or after
10 November 15, 1994 and have elected to establish alternative
11 credit before the effective date of this amendatory Act of the
12 94th General Assembly. A person who was an elected county
13 officer and an active contributor to the Fund on November 15,
14 1994 but is no longer an active contributor may apply to make
15 additional optional contributions under this Section at any
16 time within 90 days after the effective date of this amendatory
17 Act of 1997; if the person is an annuitant, the resulting
18 increase in annuity shall begin to accrue on the first day of
19 the month following the month in which the required payment is
20 received by the Fund.
21     (f) For the purposes of this Section and Section 7-145.2,
22 the terms "elected county officer" and "elected county office"
23 include, but are not limited to: (1) the county clerk,
24 recorder, treasurer, coroner, assessor (if elected), auditor,
25 sheriff, and State's Attorney; members of the county board; and
26 the clerk of the circuit court; and (2) a person who has been
27 appointed to fill a vacancy in an office that is normally
28 filled by election on a countywide basis, for the duration of
29 his or her service in that office. The terms "elected county
30 officer" and "elected county office" do not include any officer
31 or office of a county that has not consented to the
32 availability of benefits under this Section and Section
33 7-145.2.
34     (g) For the purposes of this Section and Section 7-145.2,

 

 

09400HB4973ham001 - 20 - LRB094 15880 AMC 56694 a

1 the term "salary" means the final rate of earnings for the
2 elected county office held, calculated in a manner consistent
3 with Section 7-116, but for that office only. If an elected
4 county officer qualifies to have the formula in subsection (b)
5 applied to service in more than one elected county office, a
6 separate salary shall be calculated and applied with respect to
7 each such office.
8     (h) The changes to this Section made by this amendatory Act
9 of the 91st General Assembly apply to persons who first make an
10 additional optional contribution under this Section on or after
11 the effective date of this amendatory Act.
12 (Source: P.A. 90-32, eff. 6-27-97; 91-685, eff. 1-26-00;
13 91-887, eff. 7-6-00.)
 
14     (40 ILCS 5/7-153.1 new)
15     Sec. 7-153.1. Disability hearings; request for closed
16 meeting. Those portions of meetings of the Board or of Board
17 committees in which matters relating to the determination of
18 disability or the results of medical examinations are to be
19 considered may be closed, but only if the request for a closed
20 meeting is initiated by the participating employee whose
21 disability determination or whose medical examination results
22 are at issue.
 
23     (40 ILCS 5/7-170)  (from Ch. 108 1/2, par. 7-170)
24     Sec. 7-170. Federal Social Security coverage.
25     (a) It is declared to be the policy and purpose of this
26 Section to extend to covered employees as defined in Section
27 7-138, the benefits of the Federal Old Age and Survivors
28 Insurance System as authorized by the Federal Social Security
29 Act and amendments thereto. To effect this, the board shall
30 take such action as may be required by applicable State and
31 Federal laws or regulations.
32     (b) The board shall execute an agreement with the State

 

 

09400HB4973ham001 - 21 - LRB094 15880 AMC 56694 a

1 Agency to secure coverage of covered employees as provided in
2 paragraph (a) of this section.
3     (c) Each participating municipality and each participating
4 instrumentality shall remit payment of contributions for
5 Social Security purposes on behalf of covered employees and
6 covered municipalities and participating instrumentalities in
7 the manner provided by law as required by the board and the
8 State Agency established by the Social Security Enabling Act.
9     (d) (Blank). Contributions of covered employees to this
10 fund for Federal Social Security purposes shall be paid to the
11 State Agency in such amounts and at such time as are designated
12 by State laws or regulations.
13     (e) (Blank). Contributions in behalf of covered
14 municipalities and participating instrumentalities for Federal
15 Social Security purposes and the required pro rata share of
16 administrative expenses shall be paid to the State Agency from
17 this fund in accordance with applicable State laws and
18 regulations.
19     (f) The board shall maintain such records and submit such
20 reports as may be required by applicable State and Federal laws
21 or regulations.
22 (Source: P.A. 81-793.)
 
23     (40 ILCS 5/7-171)  (from Ch. 108 1/2, par. 7-171)
24     Sec. 7-171. Finance; taxes.
25     (a) Each municipality other than a school district shall
26 appropriate an amount sufficient to provide for the current
27 municipality contributions required by Section 7-172 of this
28 Article, for the fiscal year for which the appropriation is
29 made and all amounts due for municipal contributions for
30 previous years. Those municipalities which have been assessed
31 an annual amount to amortize its unfunded obligation, as
32 provided in subparagraph 4 5 of paragraph (a) of Section 7-172
33 of this Article, shall include in the appropriation an amount

 

 

09400HB4973ham001 - 22 - LRB094 15880 AMC 56694 a

1 sufficient to pay the amount assessed. The appropriation shall
2 be based upon an estimate of assets available for municipality
3 contributions and liabilities therefor for the fiscal year for
4 which appropriations are to be made, including funds available
5 from levies for this purpose in prior years.
6     (b) For the purpose of providing monies for municipality
7 contributions, beginning for the year in which a municipality
8 is included in this fund:
9         (1) A municipality other than a school district may
10     levy a tax which shall not exceed the amount appropriated
11     for municipality contributions.
12         (2) A school district may levy a tax in an amount
13     reasonably calculated at the time of the levy to provide
14     for the municipality contributions required under Section
15     7-172 of this Article for the fiscal years for which
16     revenues from the levy will be received and all amounts due
17     for municipal contributions for previous years. Any levy
18     adopted before the effective date of this amendatory Act of
19     1995 by a school district shall be considered valid and
20     authorized to the extent that the amount was reasonably
21     calculated at the time of the levy to provide for the
22     municipality contributions required under Section 7-172
23     for the fiscal years for which revenues from the levy will
24     be received and all amounts due for municipal contributions
25     for previous years. In no event shall a budget adopted by a
26     school district limit a levy of that school district
27     adopted under this Section.
28     (c) Any county which is served by a regional office of
29 education that serves 2 or more counties may include in its
30 appropriation an amount sufficient to provide its
31 proportionate share of the municipality contributions for that
32 regional office of education. The tax levy authorized by this
33 Section may include an amount necessary to provide monies for
34 this contribution.

 

 

09400HB4973ham001 - 23 - LRB094 15880 AMC 56694 a

1     (d) Any county that is a part of a multiple-county health
2 department or consolidated health department which is formed
3 under "An Act in relation to the establishment and maintenance
4 of county and multiple-county public health departments",
5 approved July 9, 1943, as amended, and which is a participating
6 instrumentality may include in the county's appropriation an
7 amount sufficient to provide its proportionate share of
8 municipality contributions of the department. The tax levy
9 authorized by this Section may include the amount necessary to
10 provide monies for this contribution.
11     (d-5) A school district participating in a special
12 education joint agreement created under Section 10-22.31 of the
13 School Code that is a participating instrumentality may include
14 in the school district's tax levy under this Section an amount
15 sufficient to provide its proportionate share of the
16 municipality contributions for current and prior service by
17 employees of the participating instrumentality created under
18 the joint agreement.
19     (e) Such tax shall be levied and collected in like manner,
20 with the general taxes of the municipality and shall be in
21 addition to all other taxes which the municipality is now or
22 may hereafter be authorized to levy upon all taxable property
23 therein, and shall be exclusive of and in addition to the
24 amount of tax levied for general purposes under Section 8-3-1
25 of the "Illinois Municipal Code", approved May 29, 1961, as
26 amended, or under any other law or laws which may limit the
27 amount of tax which the municipality may levy for general
28 purposes. The tax may be levied by the governing body of the
29 municipality without being authorized as being additional to
30 all other taxes by a vote of the people of the municipality.
31     (f) The county clerk of the county in which any such
32 municipality is located, in reducing tax levies shall not
33 consider any such tax as a part of the general tax levy for
34 municipality purposes, and shall not include the same in the

 

 

09400HB4973ham001 - 24 - LRB094 15880 AMC 56694 a

1 limitation of any other tax rate which may be extended.
2     (g) The amount of the tax to be levied in any year shall,
3 within the limits herein prescribed, be determined by the
4 governing body of the respective municipality.
5     (h) The revenue derived from any such tax levy shall be
6 used only for the purposes specified in this Article and, as
7 collected, shall be paid to the treasurer of the municipality
8 levying the tax. Monies received by a county treasurer for use
9 in making contributions to a regional office of education for
10 its municipality contributions shall be held by him for that
11 purpose and paid to the regional office of education in the
12 same manner as other monies appropriated for the expense of the
13 regional office.
14 (Source: P.A. 89-329, eff. 8-17-95; 90-448, eff. 8-16-97;
15 90-511, eff. 8-22-97; 90-655, eff. 7-30-98.)
 
16     (40 ILCS 5/7-172)  (from Ch. 108 1/2, par. 7-172)
17     (Text of Section before amendment by P.A. 94-712)
18     Sec. 7-172. Contributions by participating municipalities
19 and participating instrumentalities.
20     (a) Each participating municipality and each participating
21 instrumentality shall make payment to the fund as follows:
22         1. municipality contributions in an amount determined
23     by applying the municipality contribution rate to each
24     payment of earnings paid to each of its participating
25     employees;
26         2. an amount equal to the employee contributions
27     provided by paragraphs (a) and (b) of Section 7-173,
28     whether or not the employee contributions are withheld as
29     permitted by that Section;
30         3. all accounts receivable, together with interest
31     charged thereon, as provided in Section 7-209;
32         4. if it has no participating employees with current
33     earnings, an amount payable which, over a period of 20

 

 

09400HB4973ham001 - 25 - LRB094 15880 AMC 56694 a

1     years beginning with the year following an award of
2     benefit, will amortize, at the effective rate for that year
3     any unfunded obligation. The unfunded obligation shall be
4     computed as provided in paragraph 2 of subsection (b) , any
5     negative balance in its municipality reserve resulting
6     from the award. This amount when established will be
7     payable as a separate contribution whether or not it later
8     has participating employees; .
9         5. if it has fewer than 7 participating employees or
10     has a negative balance in its municipality reserve, the
11     greater of (A) an amount payable which, over a period of 20
12     years, will amortize at the effective rate for that year
13     any unfunded obligation, computed as provided in paragraph
14     2 of subsection (b) or (B) the amount required by paragraph
15     1 of this subsection.
16     (b) A separate municipality contribution rate shall be
17 determined for each calendar year for all participating
18 municipalities together with all instrumentalities thereof.
19 The municipality contribution rate shall be determined for
20 participating instrumentalities as if they were participating
21 municipalities. The municipality contribution rate shall be
22 the sum of the following percentages:
23         1. The percentage of earnings of all the participating
24     employees of all participating municipalities and
25     participating instrumentalities which, if paid over the
26     entire period of their service, will be sufficient when
27     combined with all employee contributions available for the
28     payment of benefits, to provide all annuities for
29     participating employees, and the $3,000 death benefit
30     payable under Sections 7-158 and 7-164, such percentage to
31     be known as the normal cost rate.
32         2. The percentage of earnings of the participating
33     employees of each participating municipality and
34     participating instrumentalities necessary to adjust for

 

 

09400HB4973ham001 - 26 - LRB094 15880 AMC 56694 a

1     the difference between the present value of all benefits,
2     excluding temporary and total and permanent disability and
3     death benefits, to be provided for its participating
4     employees and the sum of its accumulated municipality
5     contributions and the accumulated employee contributions
6     and the present value of expected future employee and
7     municipality contributions pursuant to subparagraph 1 of
8     this paragraph (b). This adjustment shall be spread over
9     the remainder of the period that is allowable under
10     generally accepted accounting principles.
11         3. The percentage of earnings of the participating
12     employees of all municipalities and participating
13     instrumentalities necessary to provide the present value
14     of all temporary and total and permanent disability
15     benefits granted during the most recent year for which
16     information is available.
17         4. The percentage of earnings of the participating
18     employees of all participating municipalities and
19     participating instrumentalities necessary to provide the
20     present value of the net single sum death benefits expected
21     to become payable from the reserve established under
22     Section 7-206 during the year for which this rate is fixed.
23         5. The percentage of earnings necessary to meet any
24     deficiency arising in the Terminated Municipality Reserve.
25     (c) A separate municipality contribution rate shall be
26 computed for each participating municipality or participating
27 instrumentality for its sheriff's law enforcement employees.
28     A separate municipality contribution rate shall be
29 computed for the sheriff's law enforcement employees of each
30 forest preserve district that elects to have such employees.
31 For the period from January 1, 1986 to December 31, 1986, such
32 rate shall be the forest preserve district's regular rate plus
33 2%.
34     In the event that the Board determines that there is an

 

 

09400HB4973ham001 - 27 - LRB094 15880 AMC 56694 a

1 actuarial deficiency in the account of any municipality with
2 respect to a person who has elected to participate in the Fund
3 under Section 3-109.1 of this Code, the Board may adjust the
4 municipality's contribution rate so as to make up that
5 deficiency over such reasonable period of time as the Board may
6 determine.
7     (d) The Board may establish a separate municipality
8 contribution rate for all employees who are program
9 participants employed under the federal Comprehensive
10 Employment Training Act by all of the participating
11 municipalities and instrumentalities. The Board may also
12 provide that, in lieu of a separate municipality rate for these
13 employees, a portion of the municipality contributions for such
14 program participants shall be refunded or an extra charge
15 assessed so that the amount of municipality contributions
16 retained or received by the fund for all CETA program
17 participants shall be an amount equal to that which would be
18 provided by the separate municipality contribution rate for all
19 such program participants. Refunds shall be made to prime
20 sponsors of programs upon submission of a claim therefor and
21 extra charges shall be assessed to participating
22 municipalities and instrumentalities. In establishing the
23 municipality contribution rate as provided in paragraph (b) of
24 this Section, the use of a separate municipality contribution
25 rate for program participants or the refund of a portion of the
26 municipality contributions, as the case may be, may be
27 considered.
28     (e) Computations of municipality contribution rates for
29 the following calendar year shall be made prior to the
30 beginning of each year, from the information available at the
31 time the computations are made, and on the assumption that the
32 employees in each participating municipality or participating
33 instrumentality at such time will continue in service until the
34 end of such calendar year at their respective rates of earnings

 

 

09400HB4973ham001 - 28 - LRB094 15880 AMC 56694 a

1 at such time.
2     (f) Any municipality which is the recipient of State
3 allocations representing that municipality's contributions for
4 retirement annuity purposes on behalf of its employees as
5 provided in Section 12-21.16 of the Illinois Public Aid Code
6 shall pay the allocations so received to the Board for such
7 purpose. Estimates of State allocations to be received during
8 any taxable year shall be considered in the determination of
9 the municipality's tax rate for that year under Section 7-171.
10 If a special tax is levied under Section 7-171, none of the
11 proceeds may be used to reimburse the municipality for the
12 amount of State allocations received and paid to the Board. Any
13 multiple-county or consolidated health department which
14 receives contributions from a county under Section 11.2 of "An
15 Act in relation to establishment and maintenance of county and
16 multiple-county health departments", approved July 9, 1943, as
17 amended, or distributions under Section 3 of the Department of
18 Public Health Act, shall use these only for municipality
19 contributions by the health department.
20     (g) Municipality contributions for the several purposes
21 specified shall, for township treasurers and employees in the
22 offices of the township treasurers who meet the qualifying
23 conditions for coverage hereunder, be allocated among the
24 several school districts and parts of school districts serviced
25 by such treasurers and employees in the proportion which the
26 amount of school funds of each district or part of a district
27 handled by the treasurer bears to the total amount of all
28 school funds handled by the treasurer.
29     From the funds subject to allocation among districts and
30 parts of districts pursuant to the School Code, the trustees
31 shall withhold the proportionate share of the liability for
32 municipality contributions imposed upon such districts by this
33 Section, in respect to such township treasurers and employees
34 and remit the same to the Board.

 

 

09400HB4973ham001 - 29 - LRB094 15880 AMC 56694 a

1     The municipality contribution rate for an educational
2 service center shall initially be the same rate for each year
3 as the regional office of education or school district which
4 serves as its administrative agent. When actuarial data become
5 available, a separate rate shall be established as provided in
6 subparagraph (i) of this Section.
7     The municipality contribution rate for a public agency,
8 other than a vocational education cooperative, formed under the
9 Intergovernmental Cooperation Act shall initially be the
10 average rate for the municipalities which are parties to the
11 intergovernmental agreement. When actuarial data become
12 available, a separate rate shall be established as provided in
13 subparagraph (i) of this Section.
14     (h) Each participating municipality and participating
15 instrumentality shall make the contributions in the amounts
16 provided in this Section in the manner prescribed from time to
17 time by the Board and all such contributions shall be
18 obligations of the respective participating municipalities and
19 participating instrumentalities to this fund. The failure to
20 deduct any employee contributions shall not relieve the
21 participating municipality or participating instrumentality of
22 its obligation to this fund. Delinquent payments of
23 contributions due under this Section may, with interest, be
24 recovered by civil action against the participating
25 municipalities or participating instrumentalities.
26 Municipality contributions, other than the amount necessary
27 for employee contributions and Social Security contributions,
28 for periods of service by employees from whose earnings no
29 deductions were made for employee contributions to the fund,
30 may be charged to the municipality reserve for the municipality
31 or participating instrumentality.
32     (i) Contributions by participating instrumentalities shall
33 be determined as provided herein except that the percentage
34 derived under subparagraph 2 of paragraph (b) of this Section,

 

 

09400HB4973ham001 - 30 - LRB094 15880 AMC 56694 a

1 and the amount payable under subparagraph 4 5 of paragraph (a)
2 of this Section, shall be based on an amortization period of 10
3 years.
4     (k) Each county with current or former elected county
5 officers, as defined in Section 7-145.1, participating in the
6 alternative annuity program established under that Section
7 shall have a separate municipality contribution rate computed
8 for those elected county officers.
9 (Source: P.A. 92-424, eff. 8-17-01.)
 
10     (Text of Section after amendment by P.A. 94-712)
11     Sec. 7-172. Contributions by participating municipalities
12 and participating instrumentalities.
13     (a) Each participating municipality and each participating
14 instrumentality shall make payment to the fund as follows:
15         1. municipality contributions in an amount determined
16     by applying the municipality contribution rate to each
17     payment of earnings paid to each of its participating
18     employees;
19         2. an amount equal to the employee contributions
20     provided by paragraphs (a) and (b) of Section 7-173,
21     whether or not the employee contributions are withheld as
22     permitted by that Section;
23         3. all accounts receivable, together with interest
24     charged thereon, as provided in Section 7-209;
25         4. if it has no participating employees with current
26     earnings, an amount payable which, over a period of 20
27     years beginning with the year following an award of
28     benefit, will amortize, at the effective rate for that year
29     any unfunded obligation. The unfunded obligation shall be
30     computed as provided in paragraph 2 of subsection (b) , any
31     negative balance in its municipality reserve resulting
32     from the award. This amount when established will be
33     payable as a separate contribution whether or not it later

 

 

09400HB4973ham001 - 31 - LRB094 15880 AMC 56694 a

1     has participating employees; .
2         5. if it has fewer than 7 participating employees or
3     has a negative balance in its municipality reserve, the
4     greater of (A) an amount payable which, over a period of 20
5     years, will amortize at the effective rate for that year
6     any unfunded obligation, computed as provided in paragraph
7     2 of subsection (b) or (B) the amount required by paragraph
8     1 of this subsection.
9     (b) A separate municipality contribution rate shall be
10 determined for each calendar year for all participating
11 municipalities together with all instrumentalities thereof.
12 The municipality contribution rate shall be determined for
13 participating instrumentalities as if they were participating
14 municipalities. The municipality contribution rate shall be
15 the sum of the following percentages:
16         1. The percentage of earnings of all the participating
17     employees of all participating municipalities and
18     participating instrumentalities which, if paid over the
19     entire period of their service, will be sufficient when
20     combined with all employee contributions available for the
21     payment of benefits, to provide all annuities for
22     participating employees, and the $3,000 death benefit
23     payable under Sections 7-158 and 7-164, such percentage to
24     be known as the normal cost rate.
25         2. The percentage of earnings of the participating
26     employees of each participating municipality and
27     participating instrumentalities necessary to adjust for
28     the difference between the present value of all benefits,
29     excluding temporary and total and permanent disability and
30     death benefits, to be provided for its participating
31     employees and the sum of its accumulated municipality
32     contributions and the accumulated employee contributions
33     and the present value of expected future employee and
34     municipality contributions pursuant to subparagraph 1 of

 

 

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1     this paragraph (b). This adjustment shall be spread over
2     the remainder of the period that is allowable under
3     generally accepted accounting principles.
4         3. The percentage of earnings of the participating
5     employees of all municipalities and participating
6     instrumentalities necessary to provide the present value
7     of all temporary and total and permanent disability
8     benefits granted during the most recent year for which
9     information is available.
10         4. The percentage of earnings of the participating
11     employees of all participating municipalities and
12     participating instrumentalities necessary to provide the
13     present value of the net single sum death benefits expected
14     to become payable from the reserve established under
15     Section 7-206 during the year for which this rate is fixed.
16         5. The percentage of earnings necessary to meet any
17     deficiency arising in the Terminated Municipality Reserve.
18     (c) A separate municipality contribution rate shall be
19 computed for each participating municipality or participating
20 instrumentality for its sheriff's law enforcement employees.
21     A separate municipality contribution rate shall be
22 computed for the sheriff's law enforcement employees of each
23 forest preserve district that elects to have such employees.
24 For the period from January 1, 1986 to December 31, 1986, such
25 rate shall be the forest preserve district's regular rate plus
26 2%.
27     In the event that the Board determines that there is an
28 actuarial deficiency in the account of any municipality with
29 respect to a person who has elected to participate in the Fund
30 under Section 3-109.1 of this Code, the Board may adjust the
31 municipality's contribution rate so as to make up that
32 deficiency over such reasonable period of time as the Board may
33 determine.
34     (d) The Board may establish a separate municipality

 

 

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1 contribution rate for all employees who are program
2 participants employed under the federal Comprehensive
3 Employment Training Act by all of the participating
4 municipalities and instrumentalities. The Board may also
5 provide that, in lieu of a separate municipality rate for these
6 employees, a portion of the municipality contributions for such
7 program participants shall be refunded or an extra charge
8 assessed so that the amount of municipality contributions
9 retained or received by the fund for all CETA program
10 participants shall be an amount equal to that which would be
11 provided by the separate municipality contribution rate for all
12 such program participants. Refunds shall be made to prime
13 sponsors of programs upon submission of a claim therefor and
14 extra charges shall be assessed to participating
15 municipalities and instrumentalities. In establishing the
16 municipality contribution rate as provided in paragraph (b) of
17 this Section, the use of a separate municipality contribution
18 rate for program participants or the refund of a portion of the
19 municipality contributions, as the case may be, may be
20 considered.
21     (e) Computations of municipality contribution rates for
22 the following calendar year shall be made prior to the
23 beginning of each year, from the information available at the
24 time the computations are made, and on the assumption that the
25 employees in each participating municipality or participating
26 instrumentality at such time will continue in service until the
27 end of such calendar year at their respective rates of earnings
28 at such time.
29     (f) Any municipality which is the recipient of State
30 allocations representing that municipality's contributions for
31 retirement annuity purposes on behalf of its employees as
32 provided in Section 12-21.16 of the Illinois Public Aid Code
33 shall pay the allocations so received to the Board for such
34 purpose. Estimates of State allocations to be received during

 

 

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1 any taxable year shall be considered in the determination of
2 the municipality's tax rate for that year under Section 7-171.
3 If a special tax is levied under Section 7-171, none of the
4 proceeds may be used to reimburse the municipality for the
5 amount of State allocations received and paid to the Board. Any
6 multiple-county or consolidated health department which
7 receives contributions from a county under Section 11.2 of "An
8 Act in relation to establishment and maintenance of county and
9 multiple-county health departments", approved July 9, 1943, as
10 amended, or distributions under Section 3 of the Department of
11 Public Health Act, shall use these only for municipality
12 contributions by the health department.
13     (g) Municipality contributions for the several purposes
14 specified shall, for township treasurers and employees in the
15 offices of the township treasurers who meet the qualifying
16 conditions for coverage hereunder, be allocated among the
17 several school districts and parts of school districts serviced
18 by such treasurers and employees in the proportion which the
19 amount of school funds of each district or part of a district
20 handled by the treasurer bears to the total amount of all
21 school funds handled by the treasurer.
22     From the funds subject to allocation among districts and
23 parts of districts pursuant to the School Code, the trustees
24 shall withhold the proportionate share of the liability for
25 municipality contributions imposed upon such districts by this
26 Section, in respect to such township treasurers and employees
27 and remit the same to the Board.
28     The municipality contribution rate for an educational
29 service center shall initially be the same rate for each year
30 as the regional office of education or school district which
31 serves as its administrative agent. When actuarial data become
32 available, a separate rate shall be established as provided in
33 subparagraph (i) of this Section.
34     The municipality contribution rate for a public agency,

 

 

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1 other than a vocational education cooperative, formed under the
2 Intergovernmental Cooperation Act shall initially be the
3 average rate for the municipalities which are parties to the
4 intergovernmental agreement. When actuarial data become
5 available, a separate rate shall be established as provided in
6 subparagraph (i) of this Section.
7     (h) Each participating municipality and participating
8 instrumentality shall make the contributions in the amounts
9 provided in this Section in the manner prescribed from time to
10 time by the Board and all such contributions shall be
11 obligations of the respective participating municipalities and
12 participating instrumentalities to this fund. The failure to
13 deduct any employee contributions shall not relieve the
14 participating municipality or participating instrumentality of
15 its obligation to this fund. Delinquent payments of
16 contributions due under this Section may, with interest, be
17 recovered by civil action against the participating
18 municipalities or participating instrumentalities.
19 Municipality contributions, other than the amount necessary
20 for employee contributions and Social Security contributions,
21 for periods of service by employees from whose earnings no
22 deductions were made for employee contributions to the fund,
23 may be charged to the municipality reserve for the municipality
24 or participating instrumentality.
25     (i) Contributions by participating instrumentalities shall
26 be determined as provided herein except that the percentage
27 derived under subparagraph 2 of paragraph (b) of this Section,
28 and the amount payable under subparagraph 4 5 of paragraph (a)
29 of this Section, shall be based on an amortization period of 10
30 years.
31     (j) Notwithstanding the other provisions of this Section,
32 the additional unfunded liability accruing as a result of this
33 amendatory Act of the 94th General Assembly shall be amortized
34 over a period of 30 years beginning on January 1 of the second

 

 

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1 calendar year following the calendar year in which this
2 amendatory Act takes effect, except that the employer may
3 provide for a longer amortization period by adopting a
4 resolution or ordinance specifying a 35-year or 40-year period
5 and submitting a certified copy of the ordinance or resolution
6 to the fund no later than June 1 of the calendar year following
7 the calendar year in which this amendatory Act takes effect.
8     (k) Each county with current or former elected county
9 officers, as defined in Section 7-145.1, participating in the
10 alternative annuity program established under that Section
11 shall have a separate municipality contribution rate computed
12 for those elected county officers.
13 (Source: P.A. 94-712, eff. 6-1-06.)
 
14     (40 ILCS 5/7-173)  (from Ch. 108 1/2, par. 7-173)
15     Sec. 7-173. Contributions by employees.
16     (a) Each participating employee shall make contributions
17 to the fund as follows:
18         1. For retirement annuity purposes, normal
19     contributions of 3 3/4% of earnings.
20         2. Additional contributions of such percentages of
21     each payment of earnings, as shall be elected by the
22     employee for retirement annuity purposes, but not in excess
23     of 10%. The selected rate shall be applicable to all
24     earnings beginning on the first day of the second month
25     following receipt by the Board of written notice of
26     election to make such contributions. Additional
27     contributions at the selected rate shall be made
28     concurrently with normal contributions.
29         3. Survivor contributions, by each participating
30     employee, of 3/4% of each payment of earnings.
31     (b) Each employee shall make contributions to the fund for
32 Federal Social Security taxes, for periods during which he is a
33 covered employee, as required by the Social Security Enabling

 

 

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1 Act and federal law. For participating employees, such
2 contributions shall be in addition to those required under
3 paragraph (a) of this Section.
4     (c) Contributions shall be deducted from each
5 corresponding payment of earnings paid to each employee and
6 shall be remitted to the board by the participating
7 municipality or participating instrumentality making such
8 payment. The remittance, together with a report of the earnings
9 and contributions shall be made as directed by the board. For
10 township treasurers and employees of township treasurers
11 qualifying as employees hereunder, the contributions herein
12 required as deductions from salary shall be withheld by the
13 school township trustees from funds available for the payment
14 of the compensation of such treasurers and employees as
15 provided in the School Code and remitted to the board.
16     (d) An employee who has made additional contributions under
17 paragraph (a)2 of this Section may upon retirement or at any
18 time prior thereto, elect to withdraw the total of such
19 additional contributions including interest credited thereon
20 to the end of the preceding calendar year.
21     (e) Failure to make the deductions for employee
22 contributions provided in paragraph (c) of this Section shall
23 not relieve the employee from liability for such contributions.
24 The amount of such liability may be deducted, with interest
25 charged under Section 7-209, from any annuities or benefits
26 payable hereunder to the employee or any other person receiving
27 an annuity or benefit by reason of such employee's
28 participation.
29     (f) A participating employee who has at least 40 years of
30 creditable service in the Fund may elect to cease making the
31 contributions required under this Section. The status of the
32 employee under this Article shall be unaffected by this
33 election, except that the employee shall not receive any
34 additional creditable service for the periods of employment

 

 

09400HB4973ham001 - 38 - LRB094 15880 AMC 56694 a

1 following the election. An election under this subsection
2 relieves the employer from making additional employer
3 contributions in relation to that employee.
4 (Source: P.A. 87-1265.)
 
5     (40 ILCS 5/7-204)  (from Ch. 108 1/2, par. 7-204)
6     Sec. 7-204. Municipality reserves.
7     (a) Except as provided in paragraph (b) of this Section,
8 each participating municipality and its instrumentalities, and
9 each participating instrumentality, shall be treated as an
10 independent unit within the fund, except that if it has any
11 sheriff's law enforcement employees or any elected county
12 officers (as defined in Section 7-154.1) participating in the
13 alternative annuity program, it shall be treated as multiple 2
14 independent units, one for its sheriff's law enforcement
15 employees, one for its elected county officers participating in
16 the alternative retirement program, and one the second for its
17 other employees. Separate municipality reserves shall be
18 maintained in such form and detail as is necessary to show the
19 net accumulated balances of each municipality, created or
20 arising under this Article.
21     (b) In the event of termination and dissolution of any
22 participating municipality or participating instrumentality,
23 if and its obligations are not assumed or transferred by law to
24 another municipality, any net debit or credit balance remaining
25 in the reserve account of such municipality, or participating
26 instrumentality, shall be transferred to a Terminated
27 Municipality Reserve Account which shall be used to fund any
28 future benefits of its employees arising out of service with
29 the terminated municipality or participating instrumentality.
30     Any deficiency arising in the Terminated Municipality
31 Reserve Account shall be eliminated by a contribution by all
32 remaining municipalities and participating instrumentalities
33 at a uniform percent of payroll, to be determined, collected

 

 

09400HB4973ham001 - 39 - LRB094 15880 AMC 56694 a

1 with other contributions required under Section 7-172.
2     (c) The municipality reserve for each municipality or
3 participating instrumentality that has any sheriff's law
4 enforcement employees shall be divided into 2 reserves. A
5 reserve for the sheriff's law enforcement employees shall be
6 allocated an amount in the same proportion to the total amount
7 in reserve as the total number of sheriff's law enforcement
8 employees is to the total participating employees of the
9 municipality or participating instrumentality at that date.
10 The remainder shall be allocated to the reserve for other
11 employees.
12     (d) The Fund shall determine what amounts shall be
13 transferred or credited to the reserve for elected county
14 officers participating in the alternative retirement program.
15 (Source: P.A. 87-740.)
 
16     (40 ILCS 5/7-205)  (from Ch. 108 1/2, par. 7-205)
17     Sec. 7-205. Reserves for annuities. Appropriate reserves
18 shall be created for payment of all annuities granted under
19 this Article at the time such annuities are granted and in
20 amounts determined to be necessary under actuarial tables
21 adopted by the Board upon recommendation of the actuary of the
22 fund. All annuities payable shall be charged to the annuity
23 reserve.
24     1. Amounts credited to annuity reserves shall be derived by
25 transfer of all the employee credits from the appropriate
26 employee reserves and by charges to the municipality reserve of
27 those municipalities in which the retiring employee has
28 accumulated service. If a retiring employee has accumulated
29 service in more than one participating municipality or
30 participating instrumentality, (i) in the case of concurrent
31 service, aggregate municipality charges shall be prorated on a
32 basis of the employee's earnings in case of concurrent service
33 and (ii) in the case of nonconcurrent service, aggregate

 

 

09400HB4973ham001 - 40 - LRB094 15880 AMC 56694 a

1 municipality charges shall be prorated among all nonfinal
2 employers on a basis of service credit and projected earnings
3 with those employers and, for the final employer, municipality
4 charges shall be paid on a basis of the remaining cost of the
5 employee's pension, as determined by the Board. creditable
6 service in other cases.
7     2. Supplemental annuities shall be handled as a separate
8 annuity and amounts to be credited to the annuity reserve
9 therefor shall be derived in the same manner as a regular
10 annuity.
11     3. When a retirement annuity is granted to an employee with
12 a spouse eligible for a surviving spouse annuity, there shall
13 be credited to the annuity reserve an amount to fund the cost
14 of both the retirement and surviving spouse annuity as a joint
15 and survivors annuity.
16     4. Beginning January 1, 1989, when a retirement annuity is
17 awarded, an amount equal to the present value of the $3,000
18 death benefit payable upon the death of the annuitant shall be
19 transferred to the annuity reserve from the appropriate
20 municipality reserves in the same manner as the transfer for
21 annuities.
22     5. All annuity reserves shall be revalued annually as of
23 December 31. Beginning as of December 31, 1973, adjustment
24 required therein by such revaluation shall be charged or
25 credited to the earnings and experience variation reserve.
26     6. There shall be credited to the annuity reserve all of
27 the payments made by annuitants under Section 7-144.2, plus an
28 additional amount from the earnings and experience variation
29 reserve to fund the cost of the incremental annuities granted
30 to annuitants making these payments.
31     7. As of December 31, 1972, the excess in the annuity
32 reserve shall be transferred to the municipality reserves. An
33 amount equal to the deficiency in the reserve of participating
34 municipalities and participating instrumentalities which have

 

 

09400HB4973ham001 - 41 - LRB094 15880 AMC 56694 a

1 no participating employees shall be allocated to their
2 reserves. The remainder shall be allocated in amounts
3 proportionate to the present value, as of January 1, 1972, of
4 annuities of annuitants of the remaining participating
5 municipalities and participating instrumentalities.
6 (Source: P.A. 89-136, eff. 7-14-95.)
 
7     (40 ILCS 5/7-211)  (from Ch. 108 1/2, par. 7-211)
8     Sec. 7-211. Authorizations.
9     (a) Each participating municipality and instrumentality
10 thereof and each participating instrumentality shall:
11         1. Deduct all normal and additional contributions and
12     contributions for federal Social Security taxes as
13     required by the Social Security Enabling Act from each
14     payment of earnings payable to each participating employee
15     who is entitled to any earnings from such municipality or
16     instrumentality thereof or participating instrumentality,
17     and remit all such normal and additional contributions
18     immediately to the board and all such contributions for
19     federal Social Security taxes in the manner provided by
20     law; and
21         2. Pay to the board contributions required by this
22     Article.
23     (b) Each participating employee shall, by virtue of the
24 payment of contributions to this fund, receive a vested
25 interest in the annuities and benefits provided in this Article
26 and in consideration of such vested interest shall be deemed to
27 have agreed and authorized the deduction from earnings of all
28 contributions payable to this fund in accordance with this
29 Article.
30     (c) Payment of earnings less the amounts of contributions
31 provided in this Article and in the Social Security Enabling
32 Act shall be a full and complete discharge of all claims for
33 payment for services rendered by any employee during the period

 

 

09400HB4973ham001 - 42 - LRB094 15880 AMC 56694 a

1 covered by any such payment.
2     (d) Any covered annuitant may authorize the withholding of
3 all or a portion of his or her annuity, for the payment of
4 premiums on group accident and health insurance provided
5 pursuant to Section 7-199.1. The annuitant may revoke this
6 authorization at any time.
7 (Source: P.A. 91-887, eff. 7-6-00.)
 
8     Section 90. The State Mandates Act is amended by adding
9 Section 8.30 as follows:
 
10     (30 ILCS 805/8.30 new)
11     Sec. 8.30. Exempt mandate. Notwithstanding Sections 6 and 8
12 of this Act, no reimbursement by the State is required for the
13 implementation of any mandate created by this amendatory Act of
14 the 94th General Assembly.
 
15     Section 95. No acceleration or delay. Where this Act makes
16 changes in a statute that is represented in this Act by text
17 that is not yet or no longer in effect (for example, a Section
18 represented by multiple versions), the use of that text does
19 not accelerate or delay the taking effect of (i) the changes
20 made by this Act or (ii) provisions derived from any other
21 Public Act.
 
22     Section 99. Effective date. This Act takes effect upon
23 becoming law.".