HB4513 EngrossedLRB097 19245 EFG 64487 b

1    AN ACT concerning public employee benefits.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Pension Code is amended by changing
5Sections 13-502 and 13-503 as follows:
 
6    (40 ILCS 5/13-502)  (from Ch. 108 1/2, par. 13-502)
7    Sec. 13-502. Employee contributions; deductions from
8salary.
9    (a) Retirement annuity and child's annuity. Except as
10otherwise provided in this Section, there There shall be
11deducted from each payment of salary an amount equal to 7% of
12salary as the employee's contribution for the retirement
13annuity, including child's annuity, and 0.5% of salary as the
14employee's contribution for annual increases to the retirement
15annuity.
16    (a-1) For employees who first became a member or
17participant before January 1, 2011 under any reciprocal
18retirement system or pension fund established under this Code
19other than a retirement system or pension fund established
20under Article 2, 3, 4, 5, 6, or 18 of this Code:
21        (1) beginning with the first pay period paid on or
22    after January 1, 2013 and ending with the last pay period
23    paid on or before December 31, 2013, employee contributions

 

 

HB4513 Engrossed- 2 -LRB097 19245 EFG 64487 b

1    shall be 7.5% for the retirement annuity and 1.0% for
2    annual increases for a total of 8.5%;
3        (2) beginning with the first pay period paid on or
4    after January 1, 2014 and ending with the last pay period
5    paid on or before December 31, 2014, employee contributions
6    shall be 8.0% for the retirement annuity and 1.5% for
7    annual increases for a total of 9.5%;
8        (3) beginning with the first pay period paid on or
9    after January 1, 2015 and ending with the last pay period
10    paid on or before the date when the funded ratio of the
11    Fund is first determined to have reached the 90% funding
12    goal, employee contributions shall be 8.5% for the
13    retirement annuity and 1.5% for annual increases for a
14    total of 10.0%; and
15        (4) beginning with the first pay period paid on or
16    after the date when the funded ratio of the Fund is first
17    determined to have reached the 90% funding goal, and each
18    pay period paid thereafter, employee contributions shall
19    be 7.0% for the retirement annuity and 0.5% for annual
20    increases for a total of 7.5%.
21    (b) Surviving spouse's annuity. There shall be deducted
22from each payment of salary an amount equal to 1 1/2% of salary
23as the employee's contribution for the surviving spouse's
24annuity and annual increases therefor. For employees that first
25became a member or a participant before January 1, 2011 under
26any reciprocal retirement system or pension fund established

 

 

HB4513 Engrossed- 3 -LRB097 19245 EFG 64487 b

1under this Code other than a retirement system or pension fund
2established under Article 2, 3, 4, 5, 6, or 18 of this Code,
3beginning with the first pay period paid on or after January 1,
42015 and ending with the last pay period paid on or before the
5date when the funded ratio of the Fund is first determined to
6have reached the 90% funding goal, there shall be deducted an
7additional 0.5% of salary for a total of 2.0% for the surviving
8spouse's annuity and annual increases.
9    (c) Pickup of employee contributions. The Employer may pick
10up employee contributions required under subsections (a) and
11(b) of this Section. If contributions are picked up they shall
12be treated as Employer contributions in determining tax
13treatment under the United States Internal Revenue Code, and
14shall not be included as gross income of the employee until
15such time as they are distributed. The Employer shall pay these
16employee contributions from the same source of funds used in
17paying salary to the employee. The Employer may pick up these
18contributions by a reduction in the cash salary of the employee
19or by an offset against a future salary increase or by a
20combination of a reduction in salary and offset against a
21future salary increase. If employee contributions are picked up
22they shall be treated for all purposes of this Article 13,
23including Sections 13-503 and 13-601, in the same manner and to
24the same extent as employee contributions made prior to the
25date picked up.
26    (d) Subject to the requirements of federal law, the

 

 

HB4513 Engrossed- 4 -LRB097 19245 EFG 64487 b

1Employer shall pick up optional contributions that the employee
2has elected to pay to the Fund under Section 13-304.1, and the
3contributions so picked up shall be treated as employer
4contributions for the purposes of determining federal tax
5treatment. The Employer shall pick up the contributions by a
6reduction in the cash salary of the employee and shall pay the
7contributions from the same fund that is used to pay earnings
8to the employee. The Employer shall, however, continue to
9withhold federal and State income taxes based upon
10contributions made under Section 13-304.1 until the Internal
11Revenue Service or the federal courts rule that pursuant to
12Section 414(h) of the U.S. Internal Revenue Code of 1986, as
13amended, these contributions shall not be included as gross
14income of the employee until such time as they are distributed
15or made available.
16    (e) Each employee is deemed to consent and agree to the
17deductions from compensation provided for in this Article.
18    (f) Subject to the requirements of federal law, the
19Employer shall pick up contributions that a commissioner has
20elected to pay to the Fund under Section 13-314, and the
21contributions so picked up shall be treated as Employer
22contributions for the purposes of determining federal tax
23treatment. The Employer shall pick up the contributions by a
24reduction in the cash salary of the commissioner and shall pay
25the contributions from the same fund as is used to pay earnings
26to the commissioner. The Employer shall, however, continue to

 

 

HB4513 Engrossed- 5 -LRB097 19245 EFG 64487 b

1withhold federal and State income taxes based upon
2contributions made under Section 13-314 until the U.S. Internal
3Revenue Service or the federal courts rule that pursuant to
4Section 414(h) of the Internal Revenue Code of 1986, as
5amended, these contributions shall not be included as gross
6income of the employee until such time as they are distributed
7or made available.
8(Source: P.A. 94-621, eff. 8-18-05; 95-586, eff. 8-31-07.)
 
9    (40 ILCS 5/13-503)  (from Ch. 108 1/2, par. 13-503)
10    Sec. 13-503. Tax levy. Until fiscal year 2013, the The
11Water Reclamation District shall annually levy a tax upon all
12the taxable real property within the District at a rate which,
13when extended, will produce a sum that (i) when added to the
14amounts deducted from the salaries of employees, interest
15income on investments, and other income, will be sufficient to
16meet the requirements of the Fund on an actuarially funded
17basis, but (ii) shall not exceed an amount equal to the total
18amount of contributions by the employees to the Fund made in
19the calendar year 2 years prior to the year for which the tax
20is levied, multiplied by 2.19, except that the amount of
21employee contributions made on or after January 1, 2003 towards
22the purchase of additional optional benefits under Section
2313-304.1 shall only be multiplied by 1.00.
24    Beginning in fiscal year 2013, the District shall annually
25levy a tax upon all the taxable real property within the

 

 

HB4513 Engrossed- 6 -LRB097 19245 EFG 64487 b

1District at a rate which, when extended, will produce a sum
2that (i) will be sufficient to meet the Fund's actuarially
3determined contribution requirement, but (ii) shall not exceed
4an amount equal to the total employee contributions 2 years
5prior multiplied by 4.19. The actuarially determined
6contribution requirement is equal to the employer's normal cost
7plus the annual amount needed to amortize the unfunded
8liability by the year 2050 as a level percent of payroll. The
9funding goal is to attain a funded ratio of at least 90% by the
10year 2050, with the funded ratio being the ratio of the
11actuarial value of assets to the total actuarial liability.
12    The tax shall be levied and collected in the same manner as
13the general taxes of the District.
14    The tax shall be exclusive of and in addition to the amount
15of tax the District is now or may hereafter be authorized to
16levy for general purposes under the Metropolitan Water
17Reclamation District Act or under any other laws which may
18limit the amount of tax for general purposes. The county clerk
19of any county, in reducing tax levies as may be authorized by
20law, shall not consider any such tax as a part of the general
21tax levy for District purposes, and shall not include the same
22in any limitation of the percent of the assessed valuation upon
23which taxes are required to be extended.
24    Revenues derived from the tax shall be paid to the Fund for
25the benefit of the Fund.
26    If the funds available for the purposes of this Article are

 

 

HB4513 Engrossed- 7 -LRB097 19245 EFG 64487 b

1insufficient during any year to meet the requirements of this
2Article, the District may issue tax anticipation warrants or
3notes, as provided by law, against the current tax levy.
4    The Board shall submit annually to the Board of
5Commissioners of the District an estimate of the amount
6required to be raised by taxation for the purposes of the Fund.
7The Board of Commissioners shall review the estimate and
8determine the tax to be levied for such purposes.
9(Source: P.A. 92-599, eff. 6-28-02.)
 
10    Section 90. The State Mandates Act is amended by adding
11Section 8.36 as follows:
 
12    (30 ILCS 805/8.36 new)
13    Sec. 8.36. Exempt mandate. Notwithstanding Sections 6 and 8
14of this Act, no reimbursement by the State is required for the
15implementation of any mandate created by this amendatory Act of
16the 97th General Assembly.
 
17    Section 99. Effective date. This Act takes effect upon
18becoming law.