97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB3253

 

Introduced 2/24/2011, by Rep. Karen May

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/7-142.1  from Ch. 108 1/2, par. 7-142.1
40 ILCS 5/7-145.1
30 ILCS 805/8.35 new

    Amends the Illinois Municipal Retirement Fund (IMRF) Article of the Illinois Pension Code. Prohibits a sheriff's law enforcement employee who begins service in that capacity after the effective date of the amendatory Act from being able to convert up to 10 years of service in any other capacity into service as a sheriff's law enforcement employee. Provides that, on and after the effective date of the amendatory Act, an elected county officer will not be able to elect to establish alternative credits for an alternative annuity. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.


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FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

 

 

A BILL FOR

 

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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
5Sections 7-142.1 and 7-145.1 as follows:
 
6    (40 ILCS 5/7-142.1)  (from Ch. 108 1/2, par. 7-142.1)
7    Sec. 7-142.1. Sheriff's law enforcement employees.
8    (a) In lieu of the retirement annuity provided by
9subparagraph 1 of paragraph (a) of Section 7-142:
10    Any sheriff's law enforcement employee who has 20 or more
11years of service in that capacity and who terminates service
12prior to January 1, 1988 shall be entitled at his option to
13receive a monthly retirement annuity for his service as a
14sheriff's law enforcement employee computed by multiplying 2%
15for each year of such service up to 10 years, 2 1/4% for each
16year of such service above 10 years and up to 20 years, and 2
171/2% for each year of such service above 20 years, by his
18annual final rate of earnings and dividing by 12.
19    Any sheriff's law enforcement employee who has 20 or more
20years of service in that capacity and who terminates service on
21or after January 1, 1988 and before July 1, 2004 shall be
22entitled at his option to receive a monthly retirement annuity
23for his service as a sheriff's law enforcement employee

 

 

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1computed by multiplying 2.5% for each year of such service up
2to 20 years, 2% for each year of such service above 20 years
3and up to 30 years, and 1% for each year of such service above
430 years, by his annual final rate of earnings and dividing by
512.
6    Any sheriff's law enforcement employee who has 20 or more
7years of service in that capacity and who terminates service on
8or after July 1, 2004 shall be entitled at his or her option to
9receive a monthly retirement annuity for service as a sheriff's
10law enforcement employee computed by multiplying 2.5% for each
11year of such service by his annual final rate of earnings and
12dividing by 12.
13    If a sheriff's law enforcement employee has service in any
14other capacity, his retirement annuity for service as a
15sheriff's law enforcement employee may be computed under this
16Section and the retirement annuity for his other service under
17Section 7-142.
18    In no case shall the total monthly retirement annuity for
19persons who retire before July 1, 2004 exceed 75% of the
20monthly final rate of earnings. In no case shall the total
21monthly retirement annuity for persons who retire on or after
22July 1, 2004 exceed 80% of the monthly final rate of earnings.
23    (b) Whenever continued group insurance coverage is elected
24in accordance with the provisions of Section 367h of the
25Illinois Insurance Code, as now or hereafter amended, the total
26monthly premium for such continued group insurance coverage or

 

 

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1such portion thereof as is not paid by the municipality shall,
2upon request of the person electing such continued group
3insurance coverage, be deducted from any monthly pension
4benefit otherwise payable to such person pursuant to this
5Section, to be remitted by the Fund to the insurance company or
6other entity providing the group insurance coverage.
7    (c) A sheriff's law enforcement employee who began service
8in that capacity prior to the effective date of this amendatory
9Act of the 97th General Assembly and who has service in any
10other capacity may convert up to 10 years of that service into
11service as a sheriff's law enforcement employee by paying to
12the Fund an amount equal to (1) the additional employee
13contribution required under Section 7-173.1, plus (2) the
14additional employer contribution required under Section 7-172,
15plus (3) interest on items (1) and (2) at the prescribed rate
16from the date of the service to the date of payment.
17    (d) The changes to subsections (a) and (b) of this Section
18made by this amendatory Act of the 94th General Assembly apply
19only to persons in service on or after July 1, 2004. In the
20case of such a person who begins to receive a retirement
21annuity before the effective date of this amendatory Act of the
2294th General Assembly, the annuity shall be recalculated
23prospectively to reflect those changes, with the resulting
24increase beginning to accrue on the first annuity payment date
25following the effective date of this amendatory Act.
26    (e) Any elected county officer who was entitled to receive

 

 

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1a stipend from the State on or after July 1, 2009 and on or
2before June 30, 2010 may establish earnings credit for the
3amount of stipend not received, if the elected county official
4applies in writing to the fund within 6 months after the
5effective date of this amendatory Act of the 96th General
6Assembly and pays to the fund an amount equal to (i) employee
7contributions on the amount of stipend not received, (ii)
8employer contributions determined by the Board equal to the
9employer's normal cost of the benefit on the amount of stipend
10not received, plus (iii) interest on items (i) and (ii) at the
11actuarially assumed rate.
12    (f) Notwithstanding any other provision of this Article,
13the provisions of this subsection (f) apply to a person who
14first becomes a sheriff's law enforcement employee under this
15Article on or after January 1, 2011.
16    A sheriff's law enforcement employee age 55 or more who has
1710 or more years of service in that capacity shall be entitled
18at his option to receive a monthly retirement annuity for his
19or her service as a sheriff's law enforcement employee computed
20by multiplying 2.5% for each year of such service by his or her
21final rate of earnings.
22    The retirement annuity of a sheriff's law enforcement
23employee who is retiring after attaining age 50 with 10 or more
24years of creditable service shall be reduced by one-half of 1%
25for each month that the sheriff's law enforcement employee's
26age is under age 55.

 

 

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1    The maximum retirement annuity under this subsection (f)
2shall be 75% of final rate of earnings.
3    For the purposes of this subsection (f), "final rate of
4earnings" means the average monthly earnings obtained by
5dividing the total salary of the sheriff's law enforcement
6employee during the 96 consecutive months of service within the
7last 120 months of service in which the total earnings was the
8highest by the number of months of service in that period.
9    Notwithstanding any other provision of this Article,
10beginning on January 1, 2011, for all purposes under this Code
11(including without limitation the calculation of benefits and
12employee contributions), the annual earnings of a sheriff's law
13enforcement employee to whom this Section applies shall not
14include overtime and shall not exceed $106,800; however, that
15amount shall annually thereafter be increased by the lesser of
16(i) 3% of that amount, including all previous adjustments, or
17(ii) one-half the annual unadjusted percentage increase (but
18not less than zero) in the consumer price index-u for the 12
19months ending with the September preceding each November 1,
20including all previous adjustments.
21    (g) Notwithstanding any other provision of this Article,
22the monthly annuity of a person who first becomes a sheriff's
23law enforcement employee under this Article on or after January
241, 2011 shall be increased on the January 1 occurring either on
25or after the attainment of age 60 or the first anniversary of
26the annuity start date, whichever is later. Each annual

 

 

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1increase shall be calculated at 3% or one-half the annual
2unadjusted percentage increase (but not less than zero) in the
3consumer price index-u for the 12 months ending with the
4September preceding each November 1, whichever is less, of the
5originally granted retirement annuity. If the annual
6unadjusted percentage change in the consumer price index-u for
7a 12-month period ending in September is zero or, when compared
8with the preceding period, decreases, then the annuity shall
9not be increased.
10    (h) Notwithstanding any other provision of this Article,
11for a person who first becomes a sheriff's law enforcement
12employee under this Article on or after January 1, 2011, the
13annuity to which the surviving spouse, children, or parents are
14entitled under this subsection (h) shall be in the amount of 66
152/3% of the sheriff's law enforcement employee's earned annuity
16at the date of death.
17    (i) Notwithstanding any other provision of this Article,
18the monthly annuity of a survivor of a person who first becomes
19a sheriff's law enforcement employee under this Article on or
20after January 1, 2011 shall be increased on the January 1 after
21attainment of age 60 by the recipient of the survivor's annuity
22and each January 1 thereafter by 3% or one-half the annual
23unadjusted percentage increase in the consumer price index-u
24for the 12 months ending with the September preceding each
25November 1, whichever is less, of the originally granted
26pension. If the annual unadjusted percentage change in the

 

 

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1consumer price index-u for a 12-month period ending in
2September is zero or, when compared with the preceding period,
3decreases, then the annuity shall not be increased.
4    (j) For the purposes of this Section, "consumer price
5index-u" means the index published by the Bureau of Labor
6Statistics of the United States Department of Labor that
7measures the average change in prices of goods and services
8purchased by all urban consumers, United States city average,
9all items, 1982-84 = 100. The new amount resulting from each
10annual adjustment shall be determined by the Public Pension
11Division of the Department of Insurance and made available to
12the boards of the pension funds.
13(Source: P.A. 96-961, eff. 7-2-10; 96-1495, eff. 1-1-11.)
 
14    (40 ILCS 5/7-145.1)
15    Sec. 7-145.1. Alternative annuity for county officers.
16    (a) The benefits provided in this Section and Section
177-145.2 are available only if, prior to the effective date of
18this amendatory Act of the 97th General Assembly, the county
19board has filed with the Board of the Fund a resolution or
20ordinance expressly consenting to the availability of these
21benefits for its elected county officers. The county board's
22consent is irrevocable with respect to persons participating in
23the program, but may be revoked at any time with respect to
24persons who have not paid an additional optional contribution
25under this Section before the date of revocation.

 

 

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1    An elected county officer may elect to establish
2alternative credits for an alternative annuity by electing in
3writing before the effective date of this amendatory Act of the
497th General Assembly to make additional optional
5contributions in accordance with this Section and procedures
6established by the board. These alternative credits are
7available only for periods of service as an elected county
8officer. The elected county officer may discontinue making the
9additional optional contributions by notifying the Fund in
10writing in accordance with this Section and procedures
11established by the board.
12    Additional optional contributions for the alternative
13annuity shall be as follows:
14        (1) For service as an elected county officer after the
15    option is elected, an additional contribution of 3% of
16    salary shall be contributed to the Fund on the same basis
17    and under the same conditions as contributions required
18    under Section 7-173.
19        (2) For service as an elected county officer before the
20    option is elected, an additional contribution of 3% of the
21    salary for the applicable period of service, plus interest
22    at the effective rate from the date of service to the date
23    of payment, plus any additional amount required by the
24    county board under paragraph (3). All payments for past
25    service must be paid in full before credit is given.
26        (3) With respect to service as an elected county

 

 

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

 

 

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1salary for each of the first 8 years of service credit, plus 4%
2of that salary for each of the next 4 years of service credit,
3plus 5% of that salary for each year of service credit in
4excess of 12 years, subject to a maximum of 80% of that salary.
5    This formula applies only to service in an elected county
6office that the officer held for at least 8 years, and only to
7service for which additional optional contributions have been
8paid under this Section. If an elected county officer qualifies
9to have this formula applied to service in more than one
10elected county office, the qualifying service shall be
11accumulated for purposes of determining the applicable accrual
12percentages, but the salary used for each office shall be the
13separate salary calculated for that office, as defined in
14subsection (g).
15    To the extent that the elected county officer has service
16credit that does not qualify for this formula, his retirement
17annuity will first be determined in accordance with this
18formula with respect to the service to which this formula
19applies, and then in accordance with the remaining Sections of
20this Article with respect to the service to which this formula
21does not apply.
22    (c) In lieu of the disability benefits otherwise payable
23under this Article, an elected county officer who (1) has
24elected to participate in the Fund, and (2) has become
25permanently disabled and as a consequence is unable to perform
26the duties of his office, and (3) was making optional

 

 

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1contributions in accordance with this Section at the time the
2disability was incurred, may elect to receive a disability
3annuity calculated in accordance with the formula in subsection
4(b). For the purposes of this subsection, an elected county
5officer shall be considered permanently disabled only if: (i)
6disability occurs while in service as an elected county officer
7and is of such a nature as to prevent him from reasonably
8performing the duties of his office at the time; and (ii) the
9board has received a written certification by at least 2
10licensed physicians appointed by it stating that the officer is
11disabled and that the disability is likely to be permanent.
12    (d) Refunds of additional optional contributions shall be
13made on the same basis and under the same conditions as
14provided under Section 7-166, 7-167 and 7-168. Interest shall
15be credited at the effective rate on the same basis and under
16the same conditions as for other contributions.
17    If an elected county officer fails to hold that same
18elected county office for at least 8 years, he or she shall be
19entitled after leaving office to receive a refund of the
20additional optional contributions made with respect to that
21office, plus interest at the effective rate.
22    (e) The plan of optional alternative benefits and
23contributions shall be available to persons who are elected
24county officers and active contributors to the Fund on or after
25November 15, 1994 and elected to establish alternative credit
26before the effective date of this amendatory Act of the 97th

 

 

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1General Assembly. A person who was an elected county officer
2and an active contributor to the Fund on November 15, 1994 but
3is no longer an active contributor may apply to make additional
4optional contributions under this Section at any time within 90
5days after the effective date of this amendatory Act of 1997;
6if the person is an annuitant, the resulting increase in
7annuity shall begin to accrue on the first day of the month
8following the month in which the required payment is received
9by the Fund.
10    (f) For the purposes of this Section and Section 7-145.2,
11the terms "elected county officer" and "elected county office"
12include, but are not limited to: (1) the county clerk,
13recorder, treasurer, coroner, assessor (if elected), auditor,
14sheriff, and State's Attorney; members of the county board; and
15the clerk of the circuit court; and (2) a person who has been
16appointed to fill a vacancy in an office that is normally
17filled by election on a countywide basis, for the duration of
18his or her service in that office. The terms "elected county
19officer" and "elected county office" do not include any officer
20or office of a county that has not consented to the
21availability of benefits under this Section and Section
227-145.2.
23    (g) For the purposes of this Section and Section 7-145.2,
24the term "salary" means the final rate of earnings for the
25elected county office held, calculated in a manner consistent
26with Section 7-116, but for that office only. If an elected

 

 

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1county officer qualifies to have the formula in subsection (b)
2applied to service in more than one elected county office, a
3separate salary shall be calculated and applied with respect to
4each such office.
5    (h) The changes to this Section made by this amendatory Act
6of the 91st General Assembly apply to persons who first make an
7additional optional contribution under this Section on or after
8the effective date of this amendatory Act.
9    (i) Any elected county officer who was entitled to receive
10a stipend from the State on or after July 1, 2009 and on or
11before June 30, 2010 may establish earnings credit for the
12amount of stipend not received, if the elected county official
13applies in writing to the fund within 6 months after the
14effective date of this amendatory Act of the 96th General
15Assembly and pays to the fund an amount equal to (i) employee
16contributions on the amount of stipend not received, (ii)
17employer contributions determined by the Board equal to the
18employer's normal cost of the benefit on the amount of stipend
19not received, plus (iii) interest on items (i) and (ii) at the
20actuarially assumed rate.
21(Source: P.A. 96-961, eff. 7-2-10.)
 
22    Section 90. The State Mandates Act is amended by adding
23Section 8.35 as follows:
 
24    (30 ILCS 805/8.35 new)

 

 

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1    Sec. 8.35. Exempt mandate. Notwithstanding Sections 6 and 8
2of this Act, no reimbursement by the State is required for the
3implementation of any mandate created by this amendatory Act of
4the 97th General Assembly.
 
5    Section 99. Effective date. This Act takes effect upon
6becoming law.