HB1471 EngrossedLRB097 05390 JDS 45447 b

1    AN ACT concerning public employee benefits.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Pension Code is amended by changing
5Section 7-205 as follows:
 
6    (40 ILCS 5/7-205)  (from Ch. 108 1/2, par. 7-205)
7    Sec. 7-205. Reserves for annuities. Appropriate reserves
8shall be created for payment of all annuities granted under
9this Article at the time such annuities are granted and in
10amounts determined to be necessary under actuarial tables
11adopted by the Board upon recommendation of the actuary of the
12fund. All annuities payable shall be charged to the annuity
13reserve.
14    1. Amounts credited to annuity reserves shall be derived by
15transfer of all the employee credits from the appropriate
16employee reserves and by charges to the municipality reserve of
17those municipalities in which the retiring employee has
18accumulated service. If a retiring employee has accumulated
19service in more than one participating municipality or
20participating instrumentality, the aggregate municipality
21charges for non-concurrent service shall be calculated as
22follows:
23        (A) for purposes of calculating the annuity reserve, an

 

 

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1    annuity will be calculated based on service and adjusted
2    earnings with each employer (without regard to the vesting
3    requirement contained in subsection (a) of Section 7-142);
4    and
5        (B) the difference between the municipality charges
6    for the actual annuity granted and the aggregation of the
7    municipality charges based upon the ratio of each from
8    those calculations to the aggregated total from paragraph
9    (A) of this item 1.
10    Aggregate municipality charges for concurrent service
11shall be prorated based on the employee's earnings. The
12municipality charges for retirement annuities calculated under
13subparagraph a. of subparagraph 1. of subsection (a) of Section
147-142 shall be prorated based on actual contributions prorated
15on a basis of the employee's earnings in case of concurrent
16service and creditable service in other cases.
17    2. Supplemental annuities shall be handled as a separate
18annuity and amounts to be credited to the annuity reserve
19therefor shall be derived in the same manner as a regular
20annuity.
21    3. When a retirement annuity is granted to an employee with
22a spouse eligible for a surviving spouse annuity, there shall
23be credited to the annuity reserve an amount to fund the cost
24of both the retirement and surviving spouse annuity as a joint
25and survivors annuity.
26    4. Beginning January 1, 1989, when a retirement annuity is

 

 

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1awarded, an amount equal to the present value of the $3,000
2death benefit payable upon the death of the annuitant shall be
3transferred to the annuity reserve from the appropriate
4municipality reserves in the same manner as the transfer for
5annuities.
6    5. All annuity reserves shall be revalued annually as of
7December 31. Beginning as of December 31, 1973, adjustment
8required therein by such revaluation shall be charged or
9credited to the earnings and experience variation reserve.
10    6. There shall be credited to the annuity reserve all of
11the payments made by annuitants under Section 7-144.2, plus an
12additional amount from the earnings and experience variation
13reserve to fund the cost of the incremental annuities granted
14to annuitants making these payments.
15    7. As of December 31, 1972, the excess in the annuity
16reserve shall be transferred to the municipality reserves. An
17amount equal to the deficiency in the reserve of participating
18municipalities and participating instrumentalities which have
19no participating employees shall be allocated to their
20reserves. The remainder shall be allocated in amounts
21proportionate to the present value, as of January 1, 1972, of
22annuities of annuitants of the remaining participating
23municipalities and participating instrumentalities.
24(Source: P.A. 89-136, eff. 7-14-95.)
 
25    Section 90. The State Mandates Act is amended by adding

 

 

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1Section 8.35 as follows:
 
2    (30 ILCS 805/8.35 new)
3    Sec. 8.35. Exempt mandate. Notwithstanding Sections 6 and 8
4of this Act, no reimbursement by the State is required for the
5implementation of any mandate created by this amendatory Act of
6the 97th General Assembly.
 
7    Section 99. Effective date. This Act takes effect January
81, 2012.