HB4960 Enrolled LRB096 15968 AMC 31213 b

1     AN ACT concerning public employee benefits.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The Illinois Pension Code is amended by changing
5 Sections 7-118, 7-137, 7-172, and 7-220 as follows:
 
6     (40 ILCS 5/7-118)  (from Ch. 108 1/2, par. 7-118)
7     Sec. 7-118. "Beneficiary". :
8     (a) "Beneficiary" means:
9         (1) Any person or persons, trust, or charity designated
10     as a beneficiary by an employee, former employee who has
11     not yet received a retirement annuity or separation
12     benefit, or employee annuitant. If no designation is on
13     file or no beneficiary so designated survives, the estate
14     of the employee, former employee who has not yet received a
15     retirement annuity or separation benefit, or employee
16     annuitant.
17         (2) Any person or persons, trust, or charity designated
18     as a beneficiary by a beneficiary annuitant or, if no
19     designation is on file or no beneficiary so designated
20     survives, the estate of the beneficiary annuitant. The
21     surviving spouse of an employee or of an employee
22     annuitant, or if no surviving spouse survives, the person
23     or persons designated by a participating employee or

 

 

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1     employee annuitant, or if no person so designated survives,
2     or if no designation is on file, the estate of the employee
3     or employee annuitant. The person or persons designated by
4     a beneficiary annuitant, or if no person designated
5     survives, or if no designation is on file, the estate of
6     the beneficiary annuitant.
7         (3) The estate of a surviving spouse annuitant where
8     the employee or employee annuitant filed no designation, or
9     no person designated survives at the death of a surviving
10     spouse annuitant.
11     (b) Designations of beneficiaries shall be in writing on
12 forms prescribed by the board and effective upon filing in the
13 fund offices. The designation forms shall provide for
14 contingent beneficiaries. Divorce, dissolution or annulment of
15 marriage revokes the designation of an employee's former spouse
16 as a beneficiary on a designation executed before entry of
17 judgment for divorce, dissolution or annulment of marriage.
18     (b) Notwithstanding the foregoing, an employee, former
19 employee who has not yet received a retirement annuity or
20 separation benefit, or employee annuitant may elect to name any
21 person, trust or charity to be the primary beneficiary of any
22 death benefit payable by reason of his death. Such election
23 shall state specifically whether it is his intention to exclude
24 the spouse, shall be in writing, and may be revoked at any
25 time. Such election or revocation shall take effect upon being
26 filed in the fund offices.

 

 

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1     (c) If a surviving spouse annuity is payable to a former
2 spouse upon the death of an employee annuitant, the former
3 spouse, unless designated by the employee annuitant after
4 dissolution of the marriage, shall not be the beneficiary for
5 the purposes of the $3,000 death benefit payable under
6 subparagraph 6 of Section 7-164. This benefit shall be paid to
7 the designated beneficiary of the employee annuitant or, if
8 there is no designation, then to the estate of the employee
9 annuitant.
10 (Source: P.A. 89-136, eff. 7-14-95; 90-448, eff. 8-16-97.)
 
11     (40 ILCS 5/7-137)  (from Ch. 108 1/2, par. 7-137)
12     Sec. 7-137. Participating and covered employees.
13     (a) The persons described in this paragraph (a) shall be
14 included within and be subject to this Article and eligible to
15 benefits from this fund, beginning upon the dates hereinafter
16 specified:
17         1. Except as to the employees specifically excluded
18     under the provisions of this Article, all persons who are
19     employees of any municipality (or instrumentality thereof)
20     or participating instrumentality on the effective date of
21     participation of the municipality or participating
22     instrumentality beginning upon such effective date.
23         2. Except as to the employees specifically excluded
24     under the provisions of this Article, all persons, who
25     became employees of any participating municipality (or

 

 

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1     instrumentality thereof) or participating instrumentality
2     after the effective date of participation of such
3     municipality or participating instrumentality, beginning
4     upon the date such person becomes an employee.
5         3. All persons who file notice with the board as
6     provided in paragraph (b) 2 and 3 of this Section,
7     beginning upon the date of filing such notice.
8     (b) The following described persons shall not be considered
9 participating employees eligible for benefits from this fund,
10 but shall be included within and be subject to this Article
11 (each of the descriptions is not exclusive but is cumulative):
12         1. Any person who occupies an office or is employed in
13     a position normally requiring performance of duty during
14     less than 600 hours a year for a municipality (including
15     all instrumentalities thereof) or a participating
16     instrumentality. If a school treasurer performs services
17     for more than one school district, the total number of
18     hours of service normally required for the several school
19     districts shall be considered to determine whether he
20     qualifies under this paragraph;
21         2. Any person who holds elective office unless he has
22     elected while in that office in a written notice on file
23     with the board to become a participating employee;
24         3. Any person working for a city hospital unless any
25     such person, while in active employment, has elected in a
26     written notice on file with the board to become a

 

 

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1     participating employee and notification thereof is
2     received by the board;
3         4. Any person who becomes an employee after June 30,
4     1979 as a public service employment program participant
5     under the federal Comprehensive Employment and Training
6     Act and whose wages or fringe benefits are paid in whole or
7     in part by funds provided under such Act;
8         5. Any person who is actively employed by a
9     municipality on its effective date of participation in the
10     Fund if that municipality (i) has at least 35 employees on
11     its effective date of participation; (ii) is located in a
12     county with at least 2,000,000 inhabitants; and (iii)
13     maintains an independent defined benefit pension plan for
14     the benefit of its eligible employees, unless the person
15     files with the board within 90 days after the
16     municipality's effective date of participation an
17     irrevocable election to participate.
18     (c) Any person electing to be a participating employee,
19 pursuant to paragraph (b) of this Section may not change such
20 election, except as provided in Section 7-137.1.
21     (d) Any employee who occupied the position of school nurse
22 in any participating municipality on August 8, 1961 and
23 continuously thereafter until the effective date of the
24 exercise of the option authorized by this subparagraph, who on
25 August 7, 1961 was a member of the Teachers' Retirement System
26 of Illinois, by virtue of certification by the Department of

 

 

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1 Registration and Education as a public health nurse, may elect
2 to terminate participation in this Fund in order to
3 re-establish membership in such System. The election may be
4 exercised by filing written notice thereof with the Board or
5 with the Board of Trustees of said Teachers' Retirement System,
6 not later than September 30, 1963, and shall be effective on
7 the first day of the calendar month next following the month in
8 which the notice was filed. If the written notice is filed with
9 such Teachers' Retirement System, that System shall
10 immediately notify this Fund, but neither failure nor delay in
11 notification shall affect the validity of the employee's
12 election. If the option is exercised, the Fund shall notify
13 such Teachers' Retirement System of such fact and transfer to
14 that system the amounts contributed by the employee to this
15 Fund, including interest at 3% per annum, but excluding
16 contributions applicable to social security coverage during
17 the period beginning August 8, 1961 to the effective date of
18 the employee's election. Participation in this Fund as to any
19 credits on or after August 8, 1961 and up to the effective date
20 of the employee's election shall terminate on such effective
21 date.
22     (e) Any participating municipality or participating
23 instrumentality, other than a school district or special
24 education joint agreement created under Section 10-22.31 of the
25 School Code, may, by a resolution or ordinance duly adopted by
26 its governing body, elect to exclude from participation and

 

 

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1 eligibility for benefits all persons who are employed after the
2 effective date of such resolution or ordinance and who occupy
3 an office or are employed in a position normally requiring
4 performance of duty for less than 1000 hours per year for the
5 participating municipality (including all instrumentalities
6 thereof) or participating instrumentality except for persons
7 employed in a position normally requiring performance of duty
8 for 600 hours or more per year (i) by such participating
9 municipality or participating instrumentality prior to the
10 effective date of the resolution or ordinance and , (ii) by any
11 participating municipality or participating instrumentality
12 prior to January 1, 1982 and (iii) by a participating
13 municipality or participating instrumentality, which had not
14 adopted such a resolution when the person was employed, and the
15 function served by the employee's position is assumed by
16 another participating municipality or participating
17 instrumentality. A participating municipality or participating
18 instrumentality included in and subject to this Article after
19 January 1, 1982 may adopt such resolution or ordinance only
20 prior to the date it becomes included in and subject to this
21 Article. Notwithstanding the foregoing, a participating
22 municipality or participating instrumentality which is formed
23 solely to succeed to the functions of a participating
24 municipality or participating instrumentality shall be
25 considered to have adopted any such resolution or ordinance
26 which may have been applicable to the employees performing such

 

 

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1 functions. The election made by the resolution or ordinance
2 shall take effect at the time specified in the resolution or
3 ordinance, and once effective shall be irrevocable.
4 (Source: P.A. 93-933, eff. 8-13-04.)
 
5     (40 ILCS 5/7-172)  (from Ch. 108 1/2, par. 7-172)
6     Sec. 7-172. Contributions by participating municipalities
7 and participating instrumentalities.
8     (a) Each participating municipality and each participating
9 instrumentality shall make payment to the fund as follows:
10         1. municipality contributions in an amount determined
11     by applying the municipality contribution rate to each
12     payment of earnings paid to each of its participating
13     employees;
14         2. an amount equal to the employee contributions
15     provided by paragraphs (a) and (b) of Section 7-173,
16     whether or not the employee contributions are withheld as
17     permitted by that Section;
18         3. all accounts receivable, together with interest
19     charged thereon, as provided in Section 7-209;
20         4. if it has no participating employees with current
21     earnings, an amount payable which, over a closed period of
22     20 years for participating municipalities and 10 years for
23     participating instrumentalities beginning with the year
24     following an award of benefit, will amortize, at the
25     effective rate for that year, any unfunded obligation. The

 

 

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1     unfunded obligation shall be computed as provided in
2     paragraph 2 of subsection (b); negative balance in its
3     municipality reserve resulting from the award. This amount
4     when established will be payable as a separate contribution
5     whether or not it later has participating employees.
6         5. if it has fewer than 7 participating employees or a
7     negative balance in its municipality reserve, the greater
8     of (A) an amount payable that, over a period of 20 years,
9     will amortize at the effective rate for that year any
10     unfunded obligation, computed as provided in paragraph 2 of
11     subsection (b) or (B) the amount required by paragraph 1 of
12     this subsection (a).
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 (Source: P.A. 94-712, eff. 6-1-06.)
 

 

 

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1     (40 ILCS 5/7-220)  (from Ch. 108 1/2, par. 7-220)
2     Sec. 7-220. Administrative review. The provisions of the
3 Administrative Review Law, and all amendments and
4 modifications thereof and the rules adopted pursuant thereto
5 shall apply to and govern all proceedings for the judicial
6 review of final administrative decisions of the retirement
7 board provided for under this Article. The term "administrative
8 decision" is as defined in Section 3-101 of the Code of Civil
9 Procedure. The venue for actions brought under the
10 Administrative Review Law shall be any county in which the
11 Board maintains an office or the county in which the member's
12 plaintiff's employing participating municipality or
13 participating instrumentality has its main office.
14 (Source: P.A. 82-783.)
 
15     Section 90. The State Mandates Act is amended by adding
16 Section 8.34 as follows:
 
17     (30 ILCS 805/8.34 new)
18     Sec. 8.34. Exempt mandate. Notwithstanding Sections 6 and 8
19 of this Act, no reimbursement by the State is required for the
20 implementation of any mandate created by this amendatory Act of
21 the 96th General Assembly.
 
22     Section 99. Effective date. This Act takes effect upon
23 becoming law.