Rep. Karen May

Filed: 4/4/2011

 

 


 

 


 
09700HB3474ham002LRB097 10961 JDS 53881 a

1
AMENDMENT TO HOUSE BILL 3474

2    AMENDMENT NO. ______. Amend House Bill 3474 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Pension Code is amended by
5changing Sections 1-160, 7-116, 7-172, 7-205, 14-103.05,
622-101, and 22-103 and by adding Sections 1-161 and 7-225 as
7follows:
 
8    (40 ILCS 5/1-160)
9    Sec. 1-160. Provisions applicable to new hires.
10    (a) The provisions of this Section apply to a person who,
11on or after January 1, 2011, first becomes a member or a
12participant under any reciprocal retirement system or pension
13fund established under this Code, other than a retirement
14system or pension fund established under Article 2, 3, 4, 5, 6,
15or 18 of this Code, notwithstanding any other provision of this
16Code to the contrary, but do not apply to any self-managed plan

 

 

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1established under this Code, to any person with respect to
2service as a sheriff's law enforcement employee under Article
37, or to any participant of the retirement plan established
4under Section 22-101.
5    (b) "Final average salary" means the average monthly (or
6annual) salary obtained by dividing the total salary or
7earnings calculated under the Article applicable to the member
8or participant during the 96 consecutive months (or 8
9consecutive years) of service within the last 120 months (or 10
10years) of service in which the total salary or earnings
11calculated under the applicable Article was the highest by the
12number of months (or years) of service in that period. For the
13purposes of a person who first becomes a member or participant
14of any retirement system or pension fund to which this Section
15applies on or after January 1, 2011, in this Code, "final
16average salary" shall be substituted for the following:
17        (1) In Articles 7 (except for service as sheriff's law
18    enforcement employees) and 15, "final rate of earnings".
19        (2) In Articles 8, 9, 10, 11, and 12, "highest average
20    annual salary for any 4 consecutive years within the last
21    10 years of service immediately preceding the date of
22    withdrawal".
23        (3) In Article 13, "average final salary".
24        (4) In Article 14, "final average compensation".
25        (5) In Article 17, "average salary".
26        (6) In Section 22-207, "wages or salary received by him

 

 

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1    at the date of retirement or discharge".
2    (b-5) Beginning on January 1, 2011, for all purposes under
3this Code (including without limitation the calculation of
4benefits and employee contributions), the annual earnings,
5salary, or wages (based on the plan year) of a member or
6participant to whom this Section applies shall not exceed
7$106,800; however, that amount shall annually thereafter be
8increased by the lesser of (i) 3% of that amount, including all
9previous adjustments, or (ii) one-half the annual unadjusted
10percentage increase (but not less than zero) in the consumer
11price index-u for the 12 months ending with the September
12preceding each November 1, including all previous adjustments.
13    For the purposes of this Section, "consumer price index-u"
14means the index published by the Bureau of Labor Statistics of
15the United States Department of Labor that measures the average
16change in prices of goods and services purchased by all urban
17consumers, United States city average, all items, 1982-84 =
18100. The new amount resulting from each annual adjustment shall
19be determined by the Public Pension Division of the Department
20of Insurance and made available to the boards of the retirement
21systems and pension funds by November 1 of each year.
22    (c) A member or participant is entitled to a retirement
23annuity upon written application if he or she has attained age
2467 and has at least 10 years of service credit and is otherwise
25eligible under the requirements of the applicable Article.
26    A member or participant who has attained age 62 and has at

 

 

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1least 10 years of service credit and is otherwise eligible
2under the requirements of the applicable Article may elect to
3receive the lower retirement annuity provided in subsection (d)
4of this Section.
5    (d) The retirement annuity of a member or participant who
6is retiring after attaining age 62 with at least 10 years of
7service credit shall be reduced by one-half of 1% for each full
8month that the member's age is under age 67.
9    (e) Any retirement annuity or supplemental annuity shall be
10subject to annual increases on the January 1 occurring either
11on or after the attainment of age 67 or the first anniversary
12of the annuity start date, whichever is later. Each annual
13increase shall be calculated at 3% or one-half the annual
14unadjusted percentage increase (but not less than zero) in the
15consumer price index-u for the 12 months ending with the
16September preceding each November 1, whichever is less, of the
17originally granted retirement annuity. If the annual
18unadjusted percentage change in the consumer price index-u for
19the 12 months ending with the September preceding each November
201 is zero or there is a decrease, then the annuity shall not be
21increased.
22    (f) The initial survivor's or widow's annuity of an
23otherwise eligible survivor or widow of a retired member or
24participant who first became a member or participant on or
25after January 1, 2011 shall be in the amount of 66 2/3% of the
26retired member's or participant's retirement annuity at the

 

 

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1date of death. In the case of the death of a member or
2participant who has not retired and who first became a member
3or participant on or after January 1, 2011, eligibility for a
4survivor's or widow's annuity shall be determined by the
5applicable Article of this Code. The initial benefit shall be
666 2/3% of the earned annuity without a reduction due to age. A
7child's annuity of an otherwise eligible child shall be in the
8amount prescribed under each Article if applicable. Any
9survivor's or widow's annuity shall be increased (1) on each
10January 1 occurring on or after the commencement of the annuity
11if the deceased member died while receiving a retirement
12annuity or (2) in other cases, on each January 1 occurring
13after the first anniversary of the commencement of the annuity.
14Each annual increase shall be calculated at 3% or one-half the
15annual unadjusted percentage increase (but not less than zero)
16in the consumer price index-u for the 12 months ending with the
17September preceding each November 1, whichever is less, of the
18originally granted survivor's annuity. If the annual
19unadjusted percentage change in the consumer price index-u for
20the 12 months ending with the September preceding each November
211 is zero or there is a decrease, then the annuity shall not be
22increased.
23    (g) The benefits in Section 14-110 apply only if the person
24is a State policeman, a fire fighter in the fire protection
25service of a department, or a security employee of the
26Department of Corrections or the Department of Juvenile

 

 

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1Justice, as those terms are defined in subsection (b) of
2Section 14-110. A person who meets the requirements of this
3Section is entitled to an annuity calculated under the
4provisions of Section 14-110, in lieu of the regular or minimum
5retirement annuity, only if the person has withdrawn from
6service with not less than 20 years of eligible creditable
7service and has attained age 60, regardless of whether the
8attainment of age 60 occurs while the person is still in
9service.
10    (h) If a person who first becomes a member or a participant
11of a retirement system or pension fund subject to this Section
12on or after January 1, 2011 is receiving a retirement annuity
13or retirement pension under that system or fund and becomes a
14member or participant under any other system or fund created by
15this Code and is employed on a full-time basis, except for
16those members or participants exempted from the provisions of
17this Section under subsection (a) of this Section, then the
18person's retirement annuity or retirement pension under that
19system or fund shall be suspended during that employment. Upon
20termination of that employment, the person's retirement
21annuity or retirement pension payments shall resume and be
22recalculated if recalculation is provided for under the
23applicable Article of this Code.
24    If a person who first becomes a member of a retirement
25system or pension fund subject to this Section on or after the
26effective date of this amendatory Act of the 97th General

 

 

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1Assembly is receiving a retirement annuity or retirement
2pension under that system or fund and accepts on a contractual
3basis a position to provide services to a governmental entity
4from which he or she has retired, then that person's annuity or
5retirement pension earned as an active employee of the employer
6shall be suspended during that contractual service. A person
7receiving an annuity or retirement pension under this Code
8shall notify the pension fund or retirement system from which
9he or she is receiving an annuity or retirement pension, as
10well as his or her contractual employer, of his or her
11retirement status before accepting contractual employment. A
12person who fails to submit such notification shall be a guilty
13of a Class A misdemeanor and required to pay a fine of $1,000.
14Upon termination of that contractual employment, the person's
15retirement annuity or retirement pension payments shall resume
16and, if appropriate, be recalculated under the applicable
17provisions of this Code.
18    (i) Notwithstanding any other provision of this Section, a
19person who first becomes a participant of the retirement system
20established under Article 15 on or after January 1, 2011 shall
21have the option to enroll in the self-managed plan created
22under Section 15-158.2 of this Code.
23    (j) In the case of a conflict between the provisions of
24this Section and any other provision of this Code, the
25provisions of this Section shall control.
26(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
 

 

 

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1    (40 ILCS 5/1-161 new)
2    Sec. 1-161. Provisions applicable to new hires.
3    (a) The provisions of this Section apply to a person who,
4on or after the effective date of this amendatory Act of the
597th General Assembly, first becomes a member or a participant
6under any retirement system or pension fund established under
7this Code.
8    (b) Pensionable earnings shall be limited to the base
9salary or other base compensation paid to the member or
10participant for employment by the employer, and shall not
11include, without limitation: overtime; commissions; bonuses;
12payment of any type in anticipation of retirement; termination
13or severance pay; lump sum payments for sick, compensatory,
14vacation time, or other benefits; indirect or in-kind payments
15for items such as housing, vehicles, lodging, travel, or
16clothing allowances; or any other type of payment that is a
17divergence from the normal progression patterns on which an
18individual's benefits should be based. For the purposes of a
19person who first becomes a member or participant of any
20retirement system or pension fund to which this Section applies
21on or after the effective date of this amendatory Act of the
2297th General Assembly, in this Code, "pensionable earnings"
23shall be substituted for the following:
24        (1) In Articles 2, 3, 4, 5, 6, 8, 9, 10, 11, 12, 13, 16,
25    17, and 18, "salary".

 

 

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1        (2) In Article 7, "earnings".
2        (3) In Article 14, "compensation".
3        (4) In Article 15, "basic compensation".
 
4    (40 ILCS 5/7-116)  (from Ch. 108 1/2, par. 7-116)
5    Sec. 7-116. "Final rate of earnings":
6    (a) For retirement and survivor annuities, the monthly
7earnings obtained by dividing the total earnings received by
8the employee during the period of either (1) the 48 consecutive
9months of service within the last 120 months of service in
10which his total earnings were the highest or (2) the employee's
11total period of service, by the number of months of service in
12such period.
13    (b) For death benefits, the higher of the rate determined
14under paragraph (a) of this Section or total earnings received
15in the last 12 months of service divided by twelve. If the
16deceased employee has less than 12 months of service, the
17monthly final rate shall be the monthly rate of pay the
18employee was receiving when he began service.
19    (c) For disability benefits, the total earnings of a
20participating employee in the last 12 calendar months of
21service prior to the date he becomes disabled divided by 12.
22    (d) In computing the final rate of earnings: (1) the
23earnings rate for all periods of prior service shall be
24considered equal to the average earnings rate for the last 3
25calendar years of prior service for which creditable service is

 

 

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1received under Section 7-139 or, if there is less than 3 years
2of creditable prior service, the average for the total prior
3service period for which creditable service is received under
4Section 7-139; (2) for out of state service and authorized
5leave, the earnings rate shall be the rate upon which service
6credits are granted; (3) periods of military leave shall not be
7considered; (4) the earnings rate for all periods of disability
8shall be considered equal to the rate of earnings upon which
9the employee's disability benefits are computed for such
10periods; (5) the earnings to be considered for each of the
11final three months of the final earnings period for persons who
12first become participants on or after the effective date of
13this amendatory Act of the 97th General Assembly and the
14earnings to be considered for each of the final 24 months for
15participants who first become participants on or after the
16effective date of the this amendatory Act of the 97th General
17Assembly shall not exceed 125% of the highest earnings of any
18other month in the final earnings period; and (6) the annual
19amount of final rate of earnings shall be the monthly amount
20multiplied by the number of months of service normally required
21by the position in a year.
22(Source: P.A. 90-448, eff. 8-16-97.)
 
23    (40 ILCS 5/7-172)  (from Ch. 108 1/2, par. 7-172)
24    Sec. 7-172. Contributions by participating municipalities
25and participating instrumentalities.

 

 

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1    (a) Each participating municipality and each participating
2instrumentality shall make payment to the fund as follows:
3        1. municipality contributions in an amount determined
4    by applying the municipality contribution rate to each
5    payment of earnings paid to each of its participating
6    employees;
7        2. an amount equal to the employee contributions
8    provided by paragraphs (a) and (b) of Section 7-173,
9    whether or not the employee contributions are withheld as
10    permitted by that Section;
11        3. all accounts receivable, together with interest
12    charged thereon, as provided in Section 7-209;
13        4. if it has no participating employees with current
14    earnings, an amount payable which, over a closed period of
15    20 years for participating municipalities and 10 years for
16    participating instrumentalities, will amortize, at the
17    effective rate for that year, any unfunded obligation. The
18    unfunded obligation shall be computed as provided in
19    paragraph 2 of subsection (b);
20        5. if it has fewer than 7 participating employees or a
21    negative balance in its municipality reserve, the greater
22    of (A) an amount payable that, over a period of 20 years,
23    will amortize at the effective rate for that year any
24    unfunded obligation, computed as provided in paragraph 2 of
25    subsection (b) or (B) the amount required by paragraph 1 of
26    this subsection (a).

 

 

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1    (b) A separate municipality contribution rate shall be
2determined for each calendar year for all participating
3municipalities together with all instrumentalities thereof.
4The municipality contribution rate shall be determined for
5participating instrumentalities as if they were participating
6municipalities. The municipality contribution rate shall be
7the sum of the following percentages:
8        1. The percentage of earnings of all the participating
9    employees of all participating municipalities and
10    participating instrumentalities which, if paid over the
11    entire period of their service, will be sufficient when
12    combined with all employee contributions available for the
13    payment of benefits, to provide all annuities for
14    participating employees, and the $3,000 death benefit
15    payable under Sections 7-158 and 7-164, such percentage to
16    be known as the normal cost rate.
17        2. The percentage of earnings of the participating
18    employees of each participating municipality and
19    participating instrumentalities necessary to adjust for
20    the difference between the present value of all benefits,
21    excluding temporary and total and permanent disability and
22    death benefits, to be provided for its participating
23    employees and the sum of its accumulated municipality
24    contributions and the accumulated employee contributions
25    and the present value of expected future employee and
26    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
19computed for each participating municipality or participating
20instrumentality for its sheriff's law enforcement employees.
21    A separate municipality contribution rate shall be
22computed for the sheriff's law enforcement employees of each
23forest preserve district that elects to have such employees.
24For the period from January 1, 1986 to December 31, 1986, such
25rate shall be the forest preserve district's regular rate plus
262%.

 

 

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1    In the event that the Board determines that there is an
2actuarial deficiency in the account of any municipality with
3respect to a person who has elected to participate in the Fund
4under Section 3-109.1 of this Code, the Board may adjust the
5municipality's contribution rate so as to make up that
6deficiency over such reasonable period of time as the Board may
7determine.
8    (d) The Board may establish a separate municipality
9contribution rate for all employees who are program
10participants employed under the federal Comprehensive
11Employment Training Act by all of the participating
12municipalities and instrumentalities. The Board may also
13provide that, in lieu of a separate municipality rate for these
14employees, a portion of the municipality contributions for such
15program participants shall be refunded or an extra charge
16assessed so that the amount of municipality contributions
17retained or received by the fund for all CETA program
18participants shall be an amount equal to that which would be
19provided by the separate municipality contribution rate for all
20such program participants. Refunds shall be made to prime
21sponsors of programs upon submission of a claim therefor and
22extra charges shall be assessed to participating
23municipalities and instrumentalities. In establishing the
24municipality contribution rate as provided in paragraph (b) of
25this Section, the use of a separate municipality contribution
26rate for program participants or the refund of a portion of the

 

 

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1municipality contributions, as the case may be, may be
2considered.
3    (e) Computations of municipality contribution rates for
4the following calendar year shall be made prior to the
5beginning of each year, from the information available at the
6time the computations are made, and on the assumption that the
7employees in each participating municipality or participating
8instrumentality at such time will continue in service until the
9end of such calendar year at their respective rates of earnings
10at such time.
11    (f) Any municipality which is the recipient of State
12allocations representing that municipality's contributions for
13retirement annuity purposes on behalf of its employees as
14provided in Section 12-21.16 of the Illinois Public Aid Code
15shall pay the allocations so received to the Board for such
16purpose. Estimates of State allocations to be received during
17any taxable year shall be considered in the determination of
18the municipality's tax rate for that year under Section 7-171.
19If a special tax is levied under Section 7-171, none of the
20proceeds may be used to reimburse the municipality for the
21amount of State allocations received and paid to the Board. Any
22multiple-county or consolidated health department which
23receives contributions from a county under Section 11.2 of "An
24Act in relation to establishment and maintenance of county and
25multiple-county health departments", approved July 9, 1943, as
26amended, or distributions under Section 3 of the Department of

 

 

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1Public Health Act, shall use these only for municipality
2contributions by the health department.
3    (g) Municipality contributions for the several purposes
4specified shall, for township treasurers and employees in the
5offices of the township treasurers who meet the qualifying
6conditions for coverage hereunder, be allocated among the
7several school districts and parts of school districts serviced
8by such treasurers and employees in the proportion which the
9amount of school funds of each district or part of a district
10handled by the treasurer bears to the total amount of all
11school funds handled by the treasurer.
12    From the funds subject to allocation among districts and
13parts of districts pursuant to the School Code, the trustees
14shall withhold the proportionate share of the liability for
15municipality contributions imposed upon such districts by this
16Section, in respect to such township treasurers and employees
17and remit the same to the Board.
18    The municipality contribution rate for an educational
19service center shall initially be the same rate for each year
20as the regional office of education or school district which
21serves as its administrative agent. When actuarial data become
22available, a separate rate shall be established as provided in
23subparagraph (i) of this Section.
24    The municipality contribution rate for a public agency,
25other than a vocational education cooperative, formed under the
26Intergovernmental Cooperation Act shall initially be the

 

 

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1average rate for the municipalities which are parties to the
2intergovernmental agreement. When actuarial data become
3available, a separate rate shall be established as provided in
4subparagraph (i) of this Section.
5    (h) Each participating municipality and participating
6instrumentality shall make the contributions in the amounts
7provided in this Section in the manner prescribed from time to
8time by the Board and all such contributions shall be
9obligations of the respective participating municipalities and
10participating instrumentalities to this fund. The failure to
11deduct any employee contributions shall not relieve the
12participating municipality or participating instrumentality of
13its obligation to this fund. Delinquent payments of
14contributions due under this Section may, with interest, be
15recovered by civil action against the participating
16municipalities or participating instrumentalities.
17Municipality contributions, other than the amount necessary
18for employee contributions and Social Security contributions,
19for periods of service by employees from whose earnings no
20deductions were made for employee contributions to the fund,
21may be charged to the municipality reserve for the municipality
22or participating instrumentality.
23    (i) Contributions by participating instrumentalities shall
24be determined as provided herein except that the percentage
25derived under subparagraph 2 of paragraph (b) of this Section,
26and the amount payable under subparagraph 4 of paragraph (a) of

 

 

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1this Section, shall be based on an amortization period of 10
2years.
3    (j) Notwithstanding the other provisions of this Section,
4the additional unfunded liability accruing as a result of this
5amendatory Act of the 94th General Assembly shall be amortized
6over a period of 30 years beginning on January 1 of the second
7calendar year following the calendar year in which this
8amendatory Act takes effect, except that the employer may
9provide for a longer amortization period by adopting a
10resolution or ordinance specifying a 35-year or 40-year period
11and submitting a certified copy of the ordinance or resolution
12to the fund no later than June 1 of the calendar year following
13the calendar year in which this amendatory Act takes effect.
14    (k) If the amount of a participating employee's reported
15earnings for any of the 12-month periods used to determine the
16final rate of earnings exceeds the employee's 12 month reported
17earnings with the same employer for the previous year by the
18greater of 6% or 1.5 times the annual increase in the consumer
19price index-u, as established by the United States Department
20of Labor for the preceding September, the participating
21municipality or participating instrumentality that paid those
22earnings shall pay to the Fund, in addition to any other
23contributions required under this Article, the present value of
24the increase in the pension resulting from the portion of the
25increase in salary that is in excess of the greater of 6% or
261.5 times the annual increase in the Consumer Price Index-U, as

 

 

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1determined by the Fund. This present value shall be computed on
2the basis of the actuarial assumptions and tables used in the
3most recent actuarial valuation of the Fund that is available
4at the time of the computation.
5    Whenever it determines that a payment is or may be required
6under this subsection (k), the fund shall calculate the amount
7of the payment and bill the participating municipality or
8participating instrumentality for that amount. The bill shall
9specify the calculations used to determine the amount due. If
10the participating municipality or participating
11instrumentality disputes the amount of the bill, it may, within
1230 days after receipt of the bill, apply to the fund in writing
13for a recalculation. The application must specify in detail the
14grounds of the dispute. Upon receiving a timely application for
15recalculation, the fund shall review the application and, if
16appropriate, recalculate the amount due. The participating
17municipality and participating instrumentality contributions
18required under this subsection (k) may be paid in the form of a
19lump sum within 90 days after receipt of the bill. If the
20participating municipality and participating instrumentality
21contributions are not paid within 90 days after receipt of the
22bill, then interest will be charged at a rate equal to the
23fund's annual actuarially assumed rate of return on investment
24compounded annually from the 91st day after receipt of the
25bill. Payments must be concluded within 3 years after receipt
26of the bill by the participating municipality or participating

 

 

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1instrumentality.
2    When assessing payment for any amount due under this
3subsection (k), the fund shall exclude earnings increases
4resulting from overload or overtime earnings.
5    When assessing payment for any amount due under this
6subsection (k), the fund shall also exclude earnings increases
7attributable to standard employment promotions resulting in
8increased responsibility and workload.
9    
10(Source: P.A. 96-1084, eff. 7-16-10; 96-1140, eff. 7-21-10;
11revised 9-16-10.)
 
12    (40 ILCS 5/7-205)  (from Ch. 108 1/2, par. 7-205)
13    Sec. 7-205. Reserves for annuities. Appropriate reserves
14shall be created for payment of all annuities granted under
15this Article at the time such annuities are granted and in
16amounts determined to be necessary under actuarial tables
17adopted by the Board upon recommendation of the actuary of the
18fund. All annuities payable shall be charged to the annuity
19reserve.
20    1. Amounts credited to annuity reserves shall be derived by
21transfer of all the employee credits from the appropriate
22employee reserves and by charges to the municipality reserve of
23those municipalities in which the retiring employee has
24accumulated service. If a retiring employee has accumulated
25service in more than one participating municipality or

 

 

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1participating instrumentality, the aggregate municipality
2charges for non-concurrent service shall be calculated as
3follows:
4        (A) for purposes of calculating the annuity reserve, an
5    annuity will be calculated based on service and adjusted
6    earnings with each employer (without regard to the vesting
7    requirement contained in subsection (a) of Section 7-142);
8    and
9        (B) the difference between the municipality charges
10    for the actual annuity granted and the aggregation of the
11    municipality charges based upon the ratio of each from
12    those calculations to the aggregated total from paragraph
13    (A) of this item 1.
14    Aggregate municipality charges for concurrent service
15shall be prorated based on the employee's earnings. The
16municipality charges for retirement annuities calculated under
17subparagraph a of subparagraph 1 of subsection (a) of Section
187-142 shall be prorated based on actual contributions prorated
19on a basis of the employee's earnings in case of concurrent
20service and creditable service in other cases.
21    2. Supplemental annuities shall be handled as a separate
22annuity and amounts to be credited to the annuity reserve
23therefor shall be derived in the same manner as a regular
24annuity.
25    3. When a retirement annuity is granted to an employee with
26a spouse eligible for a surviving spouse annuity, there shall

 

 

09700HB3474ham002- 22 -LRB097 10961 JDS 53881 a

1be credited to the annuity reserve an amount to fund the cost
2of both the retirement and surviving spouse annuity as a joint
3and survivors annuity.
4    4. Beginning January 1, 1989, when a retirement annuity is
5awarded, an amount equal to the present value of the $3,000
6death benefit payable upon the death of the annuitant shall be
7transferred to the annuity reserve from the appropriate
8municipality reserves in the same manner as the transfer for
9annuities.
10    5. All annuity reserves shall be revalued annually as of
11December 31. Beginning as of December 31, 1973, adjustment
12required therein by such revaluation shall be charged or
13credited to the earnings and experience variation reserve.
14    6. There shall be credited to the annuity reserve all of
15the payments made by annuitants under Section 7-144.2, plus an
16additional amount from the earnings and experience variation
17reserve to fund the cost of the incremental annuities granted
18to annuitants making these payments.
19    7. As of December 31, 1972, the excess in the annuity
20reserve shall be transferred to the municipality reserves. An
21amount equal to the deficiency in the reserve of participating
22municipalities and participating instrumentalities which have
23no participating employees shall be allocated to their
24reserves. The remainder shall be allocated in amounts
25proportionate to the present value, as of January 1, 1972, of
26annuities of annuitants of the remaining participating

 

 

09700HB3474ham002- 23 -LRB097 10961 JDS 53881 a

1municipalities and participating instrumentalities.
2(Source: P.A. 89-136, eff. 7-14-95.)
 
3    (40 ILCS 5/7-225 new)
4    Sec. 7-225. Increases in salary; pension impact statement.
5Before increasing the salary of a municipal officer, executive,
6or manager by 12% or more:
7        (1) the authorities of the respective municipality who
8    are authorizing the increase must contact the Illinois
9    Municipal Retirement Fund as to the effect of that increase
10    in salary on the pension benefits of that participant;
11        (2) the Illinois Municipal Retirement Fund must
12    respond with a written "Pension Impact Statement" stating
13    the effect of that increase in salary on the pension
14    benefits of that participant, and any other relevant effect
15    of the increase, including payment of the present value of
16    the increase in benefits resulting from the portion of any
17    increase in salary that is in excess of 6% as provided
18    under subsection (k) of Section 7-172, if applicable;
19        (3) the authorities authorizing this increase must
20    sign the pension impact statement, acknowledging receipt
21    and understanding of the effects of the increase; and
22        (4) the municipality must pay the costs associated with
23    the pension impact statement.
24    The provisions of this Section do not apply to increases
25attributable to standard employment promotions resulting in

 

 

09700HB3474ham002- 24 -LRB097 10961 JDS 53881 a

1increased responsibility and workloads.
 
2    (40 ILCS 5/14-103.05)  (from Ch. 108 1/2, par. 14-103.05)
3    Sec. 14-103.05. Employee.
4    (a) Any person employed by a Department who receives salary
5for personal services rendered to the Department on a warrant
6issued pursuant to a payroll voucher certified by a Department
7and drawn by the State Comptroller upon the State Treasurer,
8including an elected official described in subparagraph (d) of
9Section 14-104, shall become an employee for purpose of
10membership in the Retirement System on the first day of such
11employment.
12    A person entering service on or after January 1, 1972 and
13prior to January 1, 1984 shall become a member as a condition
14of employment and shall begin making contributions as of the
15first day of employment.
16    A person entering service on or after January 1, 1984
17shall, upon completion of 6 months of continuous service which
18is not interrupted by a break of more than 2 months, become a
19member as a condition of employment. Contributions shall begin
20the first of the month after completion of the qualifying
21period.
22    A person employed by the Chicago Metropolitan Agency for
23Planning on the effective date of this amendatory Act of the
2495th General Assembly who was a member of this System as an
25employee of the Chicago Area Transportation Study and makes an

 

 

09700HB3474ham002- 25 -LRB097 10961 JDS 53881 a

1election under Section 14-104.13 to participate in this System
2for his or her employment with the Chicago Metropolitan Agency
3for Planning.
4    The qualifying period of 6 months of service is not
5applicable to: (1) a person who has been granted credit for
6service in a position covered by the State Universities
7Retirement System, the Teachers' Retirement System of the State
8of Illinois, the General Assembly Retirement System, or the
9Judges Retirement System of Illinois unless that service has
10been forfeited under the laws of those systems; (2) a person
11entering service on or after July 1, 1991 in a noncovered
12position; (3) a person to whom Section 14-108.2a or 14-108.2b
13applies; or (4) a person to whom subsection (a-5) of this
14Section applies.
15    (a-5) A person entering service on or after December 1,
162010 shall become a member as a condition of employment and
17shall begin making contributions as of the first day of
18employment. A person serving in the qualifying period on
19December 1, 2010 will become a member on December 1, 2010 and
20shall begin making contributions as of December 1, 2010.
21    (b) The term "employee" does not include the following:
22        (1) members of the State Legislature, and persons
23    electing to become members of the General Assembly
24    Retirement System pursuant to Section 2-105;
25        (2) incumbents of offices normally filled by vote of
26    the people;

 

 

09700HB3474ham002- 26 -LRB097 10961 JDS 53881 a

1        (3) except as otherwise provided in this Section, any
2    person appointed by the Governor with the advice and
3    consent of the Senate unless that person elects to
4    participate in this system;
5        (3.1) any person serving as a commissioner of an ethics
6    commission created under the State Officials and Employees
7    Ethics Act unless that person elects to participate in this
8    system with respect to that service as a commissioner;
9        (3.2) any person serving as a part-time employee in any
10    of the following positions: Legislative Inspector General,
11    Special Legislative Inspector General, employee of the
12    Office of the Legislative Inspector General, Executive
13    Director of the Legislative Ethics Commission, or staff of
14    the Legislative Ethics Commission, regardless of whether
15    he or she is in active service on or after July 8, 2004
16    (the effective date of Public Act 93-685), unless that
17    person elects to participate in this System with respect to
18    that service; in this item (3.2), a "part-time employee" is
19    a person who is not required to work at least 35 hours per
20    week;
21        (3.3) any person who has made an election under Section
22    1-123 and who is serving either as legal counsel in the
23    Office of the Governor or as Chief Deputy Attorney General;
24        (4) except as provided in Section 14-108.2 or
25    14-108.2c, any person who is covered or eligible to be
26    covered by the Teachers' Retirement System of the State of

 

 

09700HB3474ham002- 27 -LRB097 10961 JDS 53881 a

1    Illinois, the State Universities Retirement System, or the
2    Judges Retirement System of Illinois;
3        (5) an employee of a municipality or any other
4    political subdivision of the State;
5        (6) any person who becomes an employee after June 30,
6    1979 as a public service employment program participant
7    under the Federal Comprehensive Employment and Training
8    Act and whose wages or fringe benefits are paid in whole or
9    in part by funds provided under such Act;
10        (7) enrollees of the Illinois Young Adult Conservation
11    Corps program, administered by the Department of Natural
12    Resources, authorized grantee pursuant to Title VIII of the
13    "Comprehensive Employment and Training Act of 1973", 29 USC
14    993, as now or hereafter amended;
15        (8) enrollees and temporary staff of programs
16    administered by the Department of Natural Resources under
17    the Youth Conservation Corps Act of 1970;
18        (9) any person who is a member of any professional
19    licensing or disciplinary board created under an Act
20    administered by the Department of Professional Regulation
21    or a successor agency or created or re-created after the
22    effective date of this amendatory Act of 1997, and who
23    receives per diem compensation rather than a salary,
24    notwithstanding that such per diem compensation is paid by
25    warrant issued pursuant to a payroll voucher; such persons
26    have never been included in the membership of this System,

 

 

09700HB3474ham002- 28 -LRB097 10961 JDS 53881 a

1    and this amendatory Act of 1987 (P.A. 84-1472) is not
2    intended to effect any change in the status of such
3    persons;
4        (10) any person who is a member of the Illinois Health
5    Care Cost Containment Council, and receives per diem
6    compensation rather than a salary, notwithstanding that
7    such per diem compensation is paid by warrant issued
8    pursuant to a payroll voucher; such persons have never been
9    included in the membership of this System, and this
10    amendatory Act of 1987 is not intended to effect any change
11    in the status of such persons;
12        (11) any person who is a member of the Oil and Gas
13    Board created by Section 1.2 of the Illinois Oil and Gas
14    Act, and receives per diem compensation rather than a
15    salary, notwithstanding that such per diem compensation is
16    paid by warrant issued pursuant to a payroll voucher; or
17        (12) a person employed by the State Board of Higher
18    Education in a position with the Illinois Century Network
19    as of June 30, 2004, who remains continuously employed
20    after that date by the Department of Central Management
21    Services in a position with the Illinois Century Network
22    and participates in the Article 15 system with respect to
23    that employment; .
24        (13) any person who first becomes a member of the Civil
25    Service Commission on or after the effective date of this
26    amendatory Act of the 97th General Assembly;

 

 

09700HB3474ham002- 29 -LRB097 10961 JDS 53881 a

1        (14) any person, other than the Director of Employment
2    Security, who first becomes a member of the Board of Review
3    of the Department of Employment Security on or after the
4    effective date of this amendatory Act of the 97th General
5    Assembly;
6        (15) any person who first becomes a member of the Civil
7    Service Commission on or after the effective date of this
8    amendatory Act of the 97th General Assembly;
9        (16) any person who first becomes a member of the
10    Illinois Liquor Control Commission on or after the
11    effective date of this amendatory Act of the 97th General
12    Assembly;
13        (17) any person who first becomes a member of the
14    Secretary of State Merit Commission on or after the
15    effective date of this amendatory Act of the 97th General
16    Assembly;
17        (18) any person who first becomes a member of the Human
18    Rights Commission on or after the effective date of this
19    amendatory Act of the 97th General Assembly;
20        (19) any person who first becomes a member of the State
21    Mining Board on or after the effective date of this
22    amendatory Act of the 97th General Assembly;
23        (20) any person who first becomes a member of the
24    Property Tax Appeal Board on or after the effective date of
25    this amendatory Act of the 97th General Assembly;
26        (21) any person who first becomes a member of the

 

 

09700HB3474ham002- 30 -LRB097 10961 JDS 53881 a

1    Illinois Racing Board on or after the effective date of
2    this amendatory Act of the 97th General Assembly;
3        (22) any person who first becomes a member of the
4    Department of State Police Merit Board on or after the
5    effective date of this amendatory Act of the 97th General
6    Assembly;
7        (23) any person who first becomes a member of the
8    Illinois State Toll Highway Authority on or after the
9    effective date of this amendatory Act of the 97th General
10    Assembly; or
11        (24) any person who first becomes a member of the
12    Illinois State Board of Elections on or after the effective
13    date of this amendatory Act of the 97th General Assembly.
14    (c) An individual who represents or is employed as an
15officer or employee of a statewide labor organization that
16represents members of this System may participate in the System
17and shall be deemed an employee, provided that (1) the
18individual has previously earned creditable service under this
19Article, (2) the individual files with the System an
20irrevocable election to become a participant within 6 months
21after the effective date of this amendatory Act of the 94th
22General Assembly, and (3) the individual does not receive
23credit for that employment under any other provisions of this
24Code. An employee under this subsection (c) is responsible for
25paying to the System both (i) employee contributions based on
26the actual compensation received for service with the labor

 

 

09700HB3474ham002- 31 -LRB097 10961 JDS 53881 a

1organization and (ii) employer contributions based on the
2percentage of payroll certified by the board; all or any part
3of these contributions may be paid on the employee's behalf or
4picked up for tax purposes (if authorized under federal law) by
5the labor organization.
6    A person who is an employee as defined in this subsection
7(c) may establish service credit for similar employment prior
8to becoming an employee under this subsection by paying to the
9System for that employment the contributions specified in this
10subsection, plus interest at the effective rate from the date
11of service to the date of payment. However, credit shall not be
12granted under this subsection (c) for any such prior employment
13for which the applicant received credit under any other
14provision of this Code or during which the applicant was on a
15leave of absence.
16(Source: P.A. 95-677, eff. 10-11-07; 96-1490, eff. 1-1-11.)
 
17    (40 ILCS 5/22-101)  (from Ch. 108 1/2, par. 22-101)
18    Sec. 22-101. Retirement Plan for Chicago Transit Authority
19Employees.
20    (a) There shall be established and maintained by the
21Authority created by the "Metropolitan Transit Authority Act",
22approved April 12, 1945, as amended, (referred to in this
23Section as the "Authority") a financially sound pension and
24retirement system adequate to provide for all payments when due
25under such established system or as modified from time to time

 

 

09700HB3474ham002- 32 -LRB097 10961 JDS 53881 a

1by ordinance of the Chicago Transit Board or collective
2bargaining agreement. For this purpose, the Board must make
3contributions to the established system as required under this
4Section and may make any additional contributions provided for
5by Board ordinance or collective bargaining agreement. The
6participating employees shall make such periodic payments to
7the established system as required under this Section and may
8make any additional contributions provided for by Board
9ordinance or collective bargaining agreement.
10    Provisions shall be made by the Board for all officers,
11except trustees who first become members on after the effective
12date of this amendatory Act of the 97th General Assembly, and
13employees of the Authority appointed pursuant to the
14"Metropolitan Transit Authority Act" to become, subject to
15reasonable rules and regulations, participants of the pension
16or retirement system with uniform rights, privileges,
17obligations and status as to the class in which such officers
18and employees belong. The terms, conditions and provisions of
19any pension or retirement system or of any amendment or
20modification thereof affecting employees who are members of any
21labor organization may be established, amended or modified by
22agreement with such labor organization, provided the terms,
23conditions and provisions must be consistent with this Act, the
24annual funding levels for the retirement system established by
25law must be met and the benefits paid to future participants in
26the system may not exceed the benefit ceilings set for future

 

 

09700HB3474ham002- 33 -LRB097 10961 JDS 53881 a

1participants under this Act and the contribution levels
2required by the Authority and its employees may not be less
3than the contribution levels established under this Act.
4    (b) The Board of Trustees shall consist of 11 members
5appointed as follows: (i) 5 trustees shall be appointed by the
6Chicago Transit Board; (ii) 3 trustees shall be appointed by an
7organization representing the highest number of Chicago
8Transit Authority participants; (iii) one trustee shall be
9appointed by an organization representing the second-highest
10number of Chicago Transit Authority participants; (iv) one
11trustee shall be appointed by the recognized coalition
12representatives of participants who are not represented by an
13organization with the highest or second-highest number of
14Chicago Transit Authority participants; and (v) one trustee
15shall be selected by the Regional Transportation Authority
16Board of Directors, and the trustee shall be a professional
17fiduciary who has experience in the area of collectively
18bargained pension plans. Trustees shall serve until a successor
19has been appointed and qualified, or until resignation, death,
20incapacity, or disqualification.
21    Any person appointed as a trustee of the board shall
22qualify by taking an oath of office that he or she will
23diligently and honestly administer the affairs of the system
24and will not knowingly violate or willfully permit the
25violation of any of the provisions of law applicable to the
26Plan, including Sections 1-109, 1-109.1, 1-109.2, 1-110,

 

 

09700HB3474ham002- 34 -LRB097 10961 JDS 53881 a

11-111, 1-114, and 1-115 of the Illinois Pension Code.
2    Each trustee shall cast individual votes, and a majority
3vote shall be final and binding upon all interested parties,
4provided that the Board of Trustees may require a supermajority
5vote with respect to the investment of the assets of the
6Retirement Plan, and may set forth that requirement in the
7Retirement Plan documents, by-laws, or rules of the Board of
8Trustees. Each trustee shall have the rights, privileges,
9authority, and obligations as are usual and customary for such
10fiduciaries.
11    The Board of Trustees may cause amounts on deposit in the
12Retirement Plan to be invested in those investments that are
13permitted investments for the investment of moneys held under
14any one or more of the pension or retirement systems of the
15State, any unit of local government or school district, or any
16agency or instrumentality thereof. The Board, by a vote of at
17least two-thirds of the trustees, may transfer investment
18management to the Illinois State Board of Investment, which is
19hereby authorized to manage these investments when so requested
20by the Board of Trustees.
21    Notwithstanding any other provision of this Article or any
22law to the contrary, any person who first becomes a trustee on
23or after the effective date of this Act shall not be eligible
24to participate in this Retirement Plan.
25    (c) All individuals who were previously participants in the
26Retirement Plan for Chicago Transit Authority Employees shall

 

 

09700HB3474ham002- 35 -LRB097 10961 JDS 53881 a

1remain participants, and shall receive the same benefits
2established by the Retirement Plan for Chicago Transit
3Authority Employees, except as provided in this amendatory Act
4or by subsequent legislative enactment or amendment to the
5Retirement Plan. For Authority employees hired on or after the
6effective date of this amendatory Act of the 95th General
7Assembly, the Retirement Plan for Chicago Transit Authority
8Employees shall be the exclusive retirement plan and such
9employees shall not be eligible for any supplemental plan,
10except for a deferred compensation plan funded only by employee
11contributions.
12    For all Authority employees who are first hired on or after
13the effective date of this amendatory Act of the 95th General
14Assembly and are participants in the Retirement Plan for
15Chicago Transit Authority Employees, the following terms,
16conditions and provisions with respect to retirement shall be
17applicable:
18        (1) Such participant shall be eligible for an unreduced
19    retirement allowance for life upon the attainment of age 64
20    with 25 years of continuous service.
21        (2) Such participant shall be eligible for a reduced
22    retirement allowance for life upon the attainment of age 55
23    with 10 years of continuous service.
24        (3) For the purpose of determining the retirement
25    allowance to be paid to a retiring employee, the term
26    "Continuous Service" as used in the Retirement Plan for

 

 

09700HB3474ham002- 36 -LRB097 10961 JDS 53881 a

1    Chicago Transit Authority Employees shall also be deemed to
2    include all pension credit for service with any retirement
3    system established under Article 8 or Article 11 of this
4    Code, provided that the employee forfeits and relinquishes
5    all pension credit under Article 8 or Article 11 of this
6    Code, and the contribution required under this subsection
7    is made by the employee. The Retirement Plan's actuary
8    shall determine the contribution paid by the employee as an
9    amount equal to the normal cost of the benefit accrued, had
10    the service been rendered as an employee, plus interest per
11    annum from the time such service was rendered until the
12    date the payment is made.
13    (d) From the effective date of this amendatory Act through
14December 31, 2008, all participating employees shall
15contribute to the Retirement Plan in an amount not less than 6%
16of compensation, and the Authority shall contribute to the
17Retirement Plan in an amount not less than 12% of compensation.
18    (e)(1) Beginning January 1, 2009 the Authority shall make
19contributions to the Retirement Plan in an amount equal to
20twelve percent (12%) of compensation and participating
21employees shall make contributions to the Retirement Plan in an
22amount equal to six percent (6%) of compensation. These
23contributions may be paid by the Authority and participating
24employees on a payroll or other periodic basis, but shall in
25any case be paid to the Retirement Plan at least monthly.
26    (2) For the period ending December 31, 2040, the amount

 

 

09700HB3474ham002- 37 -LRB097 10961 JDS 53881 a

1paid by the Authority in any year with respect to debt service
2on bonds issued for the purposes of funding a contribution to
3the Retirement Plan under Section 12c of the Metropolitan
4Transit Authority Act, other than debt service paid with the
5proceeds of bonds or notes issued by the Authority for any year
6after calendar year 2008, shall be treated as a credit against
7the amount of required contribution to the Retirement Plan by
8the Authority under subsection (e)(1) for the following year up
9to an amount not to exceed 6% of compensation paid by the
10Authority in that following year.
11    (3) By September 15 of each year beginning in 2009 and
12ending on December 31, 2039, on the basis of a report prepared
13by an enrolled actuary retained by the Plan, the Board of
14Trustees of the Retirement Plan shall determine the estimated
15funded ratio of the total assets of the Retirement Plan to its
16total actuarially determined liabilities. A report containing
17that determination and the actuarial assumptions on which it is
18based shall be filed with the Authority, the representatives of
19its participating employees, the Auditor General of the State
20of Illinois, and the Regional Transportation Authority. If the
21funded ratio is projected to decline below 60% in any year
22before 2040, the Board of Trustees shall also determine the
23increased contribution required each year as a level percentage
24of payroll over the years remaining until 2040 using the
25projected unit credit actuarial cost method so the funded ratio
26does not decline below 60% and include that determination in

 

 

09700HB3474ham002- 38 -LRB097 10961 JDS 53881 a

1its report. If the actual funded ratio declines below 60% in
2any year prior to 2040, the Board of Trustees shall also
3determine the increased contribution required each year as a
4level percentage of payroll during the years after the then
5current year using the projected unit credit actuarial cost
6method so the funded ratio is projected to reach at least 60%
7no later than 10 years after the then current year and include
8that determination in its report. Within 60 days after
9receiving the report, the Auditor General shall review the
10determination and the assumptions on which it is based, and if
11he finds that the determination and the assumptions on which it
12is based are unreasonable in the aggregate, he shall issue a
13new determination of the funded ratio, the assumptions on which
14it is based and the increased contribution required each year
15as a level percentage of payroll over the years remaining until
162040 using the projected unit credit actuarial cost method so
17the funded ratio does not decline below 60%, or, in the event
18of an actual decline below 60%, so the funded ratio is
19projected to reach 60% by no later than 10 years after the then
20current year. If the Board of Trustees or the Auditor General
21determine that an increased contribution is required to meet
22the funded ratio required by the subsection, effective January
231 following the determination or 30 days after such
24determination, whichever is later, one-third of the increased
25contribution shall be paid by participating employees and
26two-thirds by the Authority, in addition to the contributions

 

 

09700HB3474ham002- 39 -LRB097 10961 JDS 53881 a

1required by this subsection (1).
2    (4) For the period beginning 2040, the minimum contribution
3to the Retirement Plan for each fiscal year shall be an amount
4determined by the Board of Trustees of the Retirement Plan to
5be sufficient to bring the total assets of the Retirement Plan
6up to 90% of its total actuarial liabilities by the end of
72059. Participating employees shall be responsible for
8one-third of the required contribution and the Authority shall
9be responsible for two-thirds of the required contribution. In
10making these determinations, the Board of Trustees shall
11calculate the required contribution each year as a level
12percentage of payroll over the years remaining to and including
13fiscal year 2059 using the projected unit credit actuarial cost
14method. A report containing that determination and the
15actuarial assumptions on which it is based shall be filed by
16September 15 of each year with the Authority, the
17representatives of its participating employees, the Auditor
18General of the State of Illinois and the Regional
19Transportation Authority. If the funded ratio is projected to
20fail to reach 90% by December 31, 2059, the Board of Trustees
21shall also determine the increased contribution required each
22year as a level percentage of payroll over the years remaining
23until December 31, 2059 using the projected unit credit
24actuarial cost method so the funded ratio will meet 90% by
25December 31, 2059 and include that determination in its report.
26Within 60 days after receiving the report, the Auditor General

 

 

09700HB3474ham002- 40 -LRB097 10961 JDS 53881 a

1shall review the determination and the assumptions on which it
2is based and if he finds that the determination and the
3assumptions on which it is based are unreasonable in the
4aggregate, he shall issue a new determination of the funded
5ratio, the assumptions on which it is based and the increased
6contribution required each year as a level percentage of
7payroll over the years remaining until December 31, 2059 using
8the projected unit credit actuarial cost method so the funded
9ratio reaches no less than 90% by December 31, 2059. If the
10Board of Trustees or the Auditor General determine that an
11increased contribution is required to meet the funded ratio
12required by this subsection, effective January 1 following the
13determination or 30 days after such determination, whichever is
14later, one-third of the increased contribution shall be paid by
15participating employees and two-thirds by the Authority, in
16addition to the contributions required by subsection (e)(1).
17    (5) Beginning in 2060, the minimum contribution for each
18year shall be the amount needed to maintain the total assets of
19the Retirement Plan at 90% of the total actuarial liabilities
20of the Plan, and the contribution shall be funded two-thirds by
21the Authority and one-third by the participating employees in
22accordance with this subsection.
23    (f) The Authority shall take the steps necessary to comply
24with Section 414(h)(2) of the Internal Revenue Code of 1986, as
25amended, to permit the pick-up of employee contributions under
26subsections (d) and (e) on a tax-deferred basis.

 

 

09700HB3474ham002- 41 -LRB097 10961 JDS 53881 a

1    (g) The Board of Trustees shall certify to the Governor,
2the General Assembly, the Auditor General, the Board of the
3Regional Transportation Authority, and the Authority at least
490 days prior to the end of each fiscal year the amount of the
5required contributions to the retirement system for the next
6retirement system fiscal year under this Section. The
7certification shall include a copy of the actuarial
8recommendations upon which it is based. In addition, copies of
9the certification shall be sent to the Commission on Government
10Forecasting and Accountability and the Mayor of Chicago.
11    (h)(1) As to an employee who first becomes entitled to a
12retirement allowance commencing on or after November 30, 1989,
13the retirement allowance shall be the amount determined in
14accordance with the following formula:
15        (A) One percent (1%) of his "Average Annual
16    Compensation in the highest four (4) completed Plan Years"
17    for each full year of continuous service from the date of
18    original employment to the effective date of the Plan; plus
19        (B) One and seventy-five hundredths percent (1.75%) of
20    his "Average Annual Compensation in the highest four (4)
21    completed Plan Years" for each year (including fractions
22    thereof to completed calendar months) of continuous
23    service as provided for in the Retirement Plan for Chicago
24    Transit Authority Employees.
25Provided, however that:
26    (2) As to an employee who first becomes entitled to a

 

 

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1retirement allowance commencing on or after January 1, 1993,
2the retirement allowance shall be the amount determined in
3accordance with the following formula:
4        (A) One percent (1%) of his "Average Annual
5    Compensation in the highest four (4) completed Plan Years"
6    for each full year of continuous service from the date of
7    original employment to the effective date of the Plan; plus
8        (B) One and eighty hundredths percent (1.80%) of his
9    "Average Annual Compensation in the highest four (4)
10    completed Plan Years" for each year (including fractions
11    thereof to completed calendar months) of continuous
12    service as provided for in the Retirement Plan for Chicago
13    Transit Authority Employees.
14Provided, however that:
15    (3) As to an employee who first becomes entitled to a
16retirement allowance commencing on or after January 1, 1994,
17the retirement allowance shall be the amount determined in
18accordance with the following formula:
19        (A) One percent (1%) of his "Average Annual
20    Compensation in the highest four (4) completed Plan Years"
21    for each full year of continuous service from the date of
22    original employment to the effective date of the Plan; plus
23        (B) One and eighty-five hundredths percent (1.85%) of
24    his "Average Annual Compensation in the highest four (4)
25    completed Plan Years" for each year (including fractions
26    thereof to completed calendar months) of continuous

 

 

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1    service as provided for in the Retirement Plan for Chicago
2    Transit Authority Employees.
3Provided, however that:
4    (4) As to an employee who first becomes entitled to a
5retirement allowance commencing on or after January 1, 2000,
6the retirement allowance shall be the amount determined in
7accordance with the following formula:
8        (A) One percent (1%) of his "Average Annual
9    Compensation in the highest four (4) completed Plan Years"
10    for each full year of continuous service from the date of
11    original employment to the effective date of the Plan; plus
12        (B) Two percent (2%) of his "Average Annual
13    Compensation in the highest four (4) completed Plan Years"
14    for each year (including fractions thereof to completed
15    calendar months) of continuous service as provided for in
16    the Retirement Plan for Chicago Transit Authority
17    Employees.
18Provided, however that:
19    (5) As to an employee who first becomes entitled to a
20retirement allowance commencing on or after January 1, 2001,
21the retirement allowance shall be the amount determined in
22accordance with the following formula:
23        (A) One percent (1%) of his "Average Annual
24    Compensation in the highest four (4) completed Plan Years"
25    for each full year of continuous service from the date of
26    original employment to the effective date of the Plan; plus

 

 

09700HB3474ham002- 44 -LRB097 10961 JDS 53881 a

1        (B) Two and fifteen hundredths percent (2.15%) of his
2    "Average Annual Compensation in the highest four (4)
3    completed Plan Years" for each year (including fractions
4    thereof to completed calendar months) of continuous
5    service as provided for in the Retirement Plan for Chicago
6    Transit Authority Employees.
7    The changes made by this amendatory Act of the 95th General
8Assembly, to the extent that they affect the rights or
9privileges of Authority employees that are currently the
10subject of collective bargaining, have been agreed to between
11the authorized representatives of these employees and of the
12Authority prior to enactment of this amendatory Act, as
13evidenced by a Memorandum of Understanding between these
14representatives that will be filed with the Secretary of State
15Index Department and designated as "95-GA-C05". The General
16Assembly finds and declares that those changes are consistent
17with 49 U.S.C. 5333(b) (also known as Section 13(c) of the
18Federal Transit Act) because of this agreement between
19authorized representatives of these employees and of the
20Authority, and that any future amendments to the provisions of
21this amendatory Act of the 95th General Assembly, to the extent
22those amendments would affect the rights and privileges of
23Authority employees that are currently the subject of
24collective bargaining, would be consistent with 49 U.S.C.
255333(b) if and only if those amendments were agreed to between
26these authorized representatives prior to enactment.

 

 

09700HB3474ham002- 45 -LRB097 10961 JDS 53881 a

1    (i) Early retirement incentive plan; funded ratio.
2        (1) Beginning on the effective date of this Section, no
3    early retirement incentive shall be offered to
4    participants of the Plan unless the Funded Ratio of the
5    Plan is at least 80% or more.
6        (2) For the purposes of this Section, the Funded Ratio
7    shall be the Adjusted Assets divided by the Actuarial
8    Accrued Liability developed in accordance with Statement
9    #25 promulgated by the Government Accounting Standards
10    Board and the actuarial assumptions described in the Plan.
11    The Adjusted Assets shall be calculated based on the
12    methodology described in the Plan.
13    (j) Nothing in this amendatory Act of the 95th General
14Assembly shall impair the rights or privileges of Authority
15employees under any other law.
16(Source: P.A. 94-839, eff. 6-6-06; 95-708, eff. 1-18-08.)
 
17    (40 ILCS 5/22-103)
18    Sec. 22-103. Regional Transportation Authority and related
19pension plans.
20    (a) As used in this Section:
21    "Affected pension plan" means a defined-benefit pension
22plan supported in whole or in part by employer contributions
23and maintained by the Regional Transportation Authority, the
24Suburban Bus Division, or the Commuter Rail Division, or any
25combination thereof, under the general authority of the

 

 

09700HB3474ham002- 46 -LRB097 10961 JDS 53881 a

1Regional Transportation Authority Act, including but not
2limited to any such plan that has been established under or is
3subject to a collective bargaining agreement or is limited to
4employees covered by a collective bargaining agreement.
5"Affected pension plan" does not include any pension fund or
6retirement system subject to Section 22-101 of this Section.
7    "Authority" means the Regional Transportation Authority
8created under the Regional Transportation Authority Act.
9    "Contributing employer" means an employer that is required
10to make contributions to an affected pension plan under the
11terms of that plan.
12    "Funding ratio" means the ratio of an affected pension
13plan's assets to the present value of its actuarial
14liabilities, as determined at its latest actuarial valuation in
15accordance with applicable actuarial assumptions and
16recommendations.
17    "Under-funded pension plan" or "under-funded" means an
18affected pension plan that, at the time of its last actuarial
19valuation, has a funding ratio of less than 90%.
20    (b) The contributing employers of each affected pension
21plan have a general duty to make the required employer
22contributions to the affected pension plan in a timely manner
23in accordance with the terms of the plan. A contributing
24employer must make contributions to the affected pension plan
25as required under this subsection and, if applicable,
26subsection (c); a contributing employer may make any additional

 

 

09700HB3474ham002- 47 -LRB097 10961 JDS 53881 a

1contributions provided for by the board of the employer or
2collective bargaining agreement.
3    (c) In the case of an affected pension plan that is
4under-funded on January 1, 2009 or becomes under-funded at any
5time after that date, the contributing employers shall
6contribute to the affected pension plan, in addition to all
7amounts otherwise required, amounts sufficient to bring the
8funding ratio of the affected pension plan up to 90% in
9accordance with an amortization schedule adopted jointly by the
10contributing employers and the trustee of the affected pension
11plan. The amortization schedule may extend for any period up to
12a maximum of 50 years and shall provide for additional employer
13contributions in substantially equal annual amounts over the
14selected period. If the contributing employers and the trustee
15of the affected pension plan do not agree on an appropriate
16period for the amortization schedule within 6 months of the
17date of determination that the plan is under-funded, then the
18amortization schedule shall be based on a period of 50 years.
19    In the case of an affected pension plan that has more than
20one contributing employer, each contributing employer's share
21of the total additional employer contributions required under
22this subsection shall be determined: (i) in proportion to the
23amounts, if any, by which the respective contributing employers
24have failed to meet their contribution obligations under the
25terms of the affected pension plan; or (ii) if all of the
26contributing employers have met their contribution obligations

 

 

09700HB3474ham002- 48 -LRB097 10961 JDS 53881 a

1under the terms of the affected pension plan, then in the same
2proportion as they are required to contribute under the terms
3of that plan. In the case of an affected pension plan that has
4only one contributing employer, that contributing employer is
5responsible for all of the additional employer contributions
6required under this subsection.
7    If an under-funded pension plan is determined to have
8achieved a funding ratio of at least 90% during the period when
9an amortization schedule is in force under this Section, the
10contributing employers and the trustee of the affected pension
11plan, acting jointly, may cancel the amortization schedule and
12the contributing employers may cease making additional
13contributions under this subsection for as long as the affected
14pension plan retains a funding ratio of at least 90%.
15    (d) Beginning January 1, 2009, if the Authority fails to
16pay to an affected pension fund within 30 days after it is due
17(i) any employer contribution that it is required to make as a
18contributing employer, (ii) any additional employer
19contribution that it is required to pay under subsection (c),
20or (iii) any payment that it is required to make under Section
214.02a or 4.02b of the Regional Transportation Authority Act,
22the trustee of the affected pension fund shall promptly so
23notify the Commission on Government Forecasting and
24Accountability, the Mayor of Chicago, the Governor, and the
25General Assembly.
26    (e) For purposes of determining employer contributions,

 

 

09700HB3474ham002- 49 -LRB097 10961 JDS 53881 a

1assets, and actuarial liabilities under this subsection,
2contributions, assets, and liabilities relating to health care
3benefits shall not be included.
4    (f) This amendatory Act of the 94th General Assembly does
5not affect or impair the right of any contributing employer or
6its employees to collectively bargain the amount or level of
7employee contributions to an affected pension plan, to the
8extent that the plan includes employees subject to collective
9bargaining.
10    (g) Notwithstanding any other provision of this Article or
11any law to the contrary, a person who, on or after the
12effective date of this amendatory Act of the 97th General
13Assembly, first becomes a director on the Suburban Bus Board,
14the Commuter Rail Board, or the Board of Directors of the
15Regional Transportation Authority shall not be eligible to
16participate in an affected pension plan.
17(Source: P.A. 94-839, eff. 6-6-06.)
 
18    Section 15. The State Mandates Act is amended by adding
19Section 8.35 as follows:
 
20    (30 ILCS 805/8.35 new)
21    Sec. 8.35. Exempt mandate. Notwithstanding Sections 6 and 8
22of this Act, no reimbursement by the State is required for the
23implementation of any mandate created by this amendatory Act of
24the 97th General Assembly.".