Sen. Michael Bond

Filed: 3/9/2007

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 1158

2     AMENDMENT NO. ______. Amend Senate Bill 1158 by replacing
3 everything after the enacting clause with the following:
 
4     "Section 5. The Illinois Pension Code is amended by
5 changing Section 7-172 as follows:
 
6     (40 ILCS 5/7-172)  (from Ch. 108 1/2, par. 7-172)
7     Sec. 7-172. Contributions by participating municipalities
8 and participating instrumentalities.
9     (a) Each participating municipality and each participating
10 instrumentality shall make payment to the fund as follows:
11         1. municipality contributions in an amount determined
12     by applying the municipality contribution rate to each
13     payment of earnings paid to each of its participating
14     employees;
15         2. an amount equal to the employee contributions
16     provided by paragraphs (a) and (b) of Section 7-173,

 

 

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1     whether or not the employee contributions are withheld as
2     permitted by that Section;
3         3. all accounts receivable, together with interest
4     charged thereon, as provided in Section 7-209;
5         4. if it has no participating employees with current
6     earnings, an amount payable which, over a period of 20
7     years beginning with the year following an award of
8     benefit, will amortize, at the effective rate for that
9     year, any negative balance in its municipality reserve
10     resulting from the award. This amount when established will
11     be payable as a separate contribution whether or not it
12     later has participating employees.
13     (b) A separate municipality contribution rate shall be
14 determined for each calendar year for all participating
15 municipalities together with all instrumentalities thereof.
16 The municipality contribution rate shall be determined for
17 participating instrumentalities as if they were participating
18 municipalities. The municipality contribution rate shall be
19 the sum of the following percentages:
20         1. The percentage of earnings of all the participating
21     employees of all participating municipalities and
22     participating instrumentalities which, if paid over the
23     entire period of their service, will be sufficient when
24     combined with all employee contributions available for the
25     payment of benefits, to provide all annuities for
26     participating employees, and the $3,000 death benefit

 

 

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1     payable under Sections 7-158 and 7-164, such percentage to
2     be known as the normal cost rate.
3         2. The percentage of earnings of the participating
4     employees of each participating municipality and
5     participating instrumentalities necessary to adjust for
6     the difference between the present value of all benefits,
7     excluding temporary and total and permanent disability and
8     death benefits, to be provided for its participating
9     employees and the sum of its accumulated municipality
10     contributions and the accumulated employee contributions
11     and the present value of expected future employee and
12     municipality contributions pursuant to subparagraph 1 of
13     this paragraph (b). This adjustment shall be spread over
14     the remainder of the period that is allowable under
15     generally accepted accounting principles.
16         3. The percentage of earnings of the participating
17     employees of all municipalities and participating
18     instrumentalities necessary to provide the present value
19     of all temporary and total and permanent disability
20     benefits granted during the most recent year for which
21     information is available.
22         4. The percentage of earnings of the participating
23     employees of all participating municipalities and
24     participating instrumentalities necessary to provide the
25     present value of the net single sum death benefits expected
26     to become payable from the reserve established under

 

 

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1     Section 7-206 during the year for which this rate is fixed.
2         5. The percentage of earnings necessary to meet any
3     deficiency arising in the Terminated Municipality Reserve.
4     (c) A separate municipality contribution rate shall be
5 computed for each participating municipality or participating
6 instrumentality for its sheriff's law enforcement employees.
7     A separate municipality contribution rate shall be
8 computed for the sheriff's law enforcement employees of each
9 forest preserve district that elects to have such employees.
10 For the period from January 1, 1986 to December 31, 1986, such
11 rate shall be the forest preserve district's regular rate plus
12 2%.
13     In the event that the Board determines that there is an
14 actuarial deficiency in the account of any municipality with
15 respect to a person who has elected to participate in the Fund
16 under Section 3-109.1 of this Code, the Board may adjust the
17 municipality's contribution rate so as to make up that
18 deficiency over such reasonable period of time as the Board may
19 determine.
20     (d) The Board may establish a separate municipality
21 contribution rate for all employees who are program
22 participants employed under the federal Comprehensive
23 Employment Training Act by all of the participating
24 municipalities and instrumentalities. The Board may also
25 provide that, in lieu of a separate municipality rate for these
26 employees, a portion of the municipality contributions for such

 

 

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

 

 

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

 

 

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1 municipality contributions imposed upon such districts by this
2 Section, in respect to such township treasurers and employees
3 and remit the same to the Board.
4     The municipality contribution rate for an educational
5 service center shall initially be the same rate for each year
6 as the regional office of education or school district which
7 serves as its administrative agent. When actuarial data become
8 available, a separate rate shall be established as provided in
9 subparagraph (i) of this Section.
10     The municipality contribution rate for a public agency,
11 other than a vocational education cooperative, formed under the
12 Intergovernmental Cooperation Act shall initially be the
13 average rate for the municipalities which are parties to the
14 intergovernmental agreement. When actuarial data become
15 available, a separate rate shall be established as provided in
16 subparagraph (i) of this Section.
17     (h) Each participating municipality and participating
18 instrumentality shall make the contributions in the amounts
19 provided in this Section in the manner prescribed from time to
20 time by the Board and all such contributions shall be
21 obligations of the respective participating municipalities and
22 participating instrumentalities to this fund. The failure to
23 deduct any employee contributions shall not relieve the
24 participating municipality or participating instrumentality of
25 its obligation to this fund. Delinquent payments of
26 contributions due under this Section may, with interest, be

 

 

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1 recovered by civil action against the participating
2 municipalities or participating instrumentalities.
3 Municipality contributions, other than the amount necessary
4 for employee contributions and Social Security contributions,
5 for periods of service by employees from whose earnings no
6 deductions were made for employee contributions to the fund,
7 may be charged to the municipality reserve for the municipality
8 or participating instrumentality.
9     (i) Contributions by participating instrumentalities shall
10 be determined as provided herein except that the percentage
11 derived under subparagraph 2 of paragraph (b) of this Section,
12 and the amount payable under subparagraph 5 of paragraph (a) of
13 this Section, shall be based on an amortization period of 10
14 years.
15     (j) Notwithstanding the other provisions of this Section,
16 the additional unfunded liability accruing as a result of this
17 amendatory Act of the 94th General Assembly shall be amortized
18 over a period of 30 years beginning on January 1 of the second
19 calendar year following the calendar year in which this
20 amendatory Act takes effect, except that the employer may
21 provide for a longer amortization period by adopting a
22 resolution or ordinance specifying a 35-year or 40-year period
23 and submitting a certified copy of the ordinance or resolution
24 to the fund no later than June 1 of the calendar year following
25 the calendar year in which this amendatory Act takes effect.
26     (k) The percentage of contributions by participating

 

 

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1 municipalities under subparagraph 2 of paragraph (b) of this
2 Section shall be spread over the remainder of the period that
3 is allowable under generally accepted accounting principles,
4 except that an employer other than a school district may
5 provide for a longer period by adopting a resolution or
6 ordinance specifying a 40-year period and submitting a
7 certified copy of the ordinance or resolution to the Fund.
8 (Source: P.A. 94-712, eff. 6-1-06.)
 
9     Section 99. Effective date. This Act takes effect upon
10 becoming law.".