Rep. Karen May

Filed: 5/24/2011

 

 


 

 


 
09700SB1831ham001LRB097 08644 JDS 56114 a

1
AMENDMENT TO SENATE BILL 1831

2    AMENDMENT NO. ______. Amend Senate Bill 1831 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Open Meetings Act is amended by adding
5Section 7.3 as follows:
 
6    (5 ILCS 120/7.3 new)
7    Sec. 7.3. Duty to post information pertaining to benefits
8offered through the Illinois Municipal Retirement Fund.
9    (a) Within 6 business days after an employer participating
10in the Illinois Municipal Retirement Fund approves a budget,
11that employer must post on its website the total compensation
12package for each employee having a total compensation package
13that exceeds $75,000 per year. If the employer does not
14maintain a website, the employer must post a physical copy of
15this information at the principal office of the employer. If an
16employer maintains a website, it may choose to post a physical

 

 

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1copy of this information at the principal office of the
2employer in lieu of posting the information directly on the
3website; however, the employer must post directions on the
4website on how to access that information.
5    (b) At least 6 days before an employer participating in the
6Illinois Municipal Retirement Fund approves an employee's
7total compensation package that is equal to or in excess of
8$150,000 per year, the employer must post on its website the
9total compensation package for that employee. If the employer
10does not maintain a website, the employer shall post a physical
11copy of this information at the principal office of the
12employer. If an employer maintains a website, it may choose to
13post a physical copy of this information at the principal
14office of the employer in lieu of posting the information
15directly on the website; however, the employer must post
16directions on the website on how to access that information.
17    (c) For the purposes of this Section, "total compensation
18package" means payment by the employer to the employee for
19salary, health insurance, a housing allowance, a vehicle
20allowance, a clothing allowance, bonuses, loans, vacation days
21granted, and sick days granted.
 
22    Section 10. The Illinois Pension Code is amended by
23changing Sections 1-160, 7-109, 7-116, 7-135, 7-137, 7-141,
247-141.1, 7-142.1, 7-144, 7-145.1, 7-172, 7-205, 14-103.05,
2522-101, and 22-103 and by adding Sections 3-140.2, 4-129.2,

 

 

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17-199.4, and 7-225 as follows:
 
2    (40 ILCS 5/1-160)
3    Sec. 1-160. Provisions applicable to new hires.
4    (a) The provisions of this Section apply to a person who,
5on or after January 1, 2011, first becomes a member or a
6participant under any reciprocal retirement system or pension
7fund established under this Code, other than a retirement
8system or pension fund established under Article 2, 3, 4, 5, 6,
9or 18 of this Code, notwithstanding any other provision of this
10Code to the contrary, but do not apply to any self-managed plan
11established under this Code, to any person with respect to
12service as a sheriff's law enforcement employee under Article
137, or to any participant of the retirement plan established
14under Section 22-101.
15    (b) "Final average salary" means the average monthly (or
16annual) salary obtained by dividing the total salary or
17earnings calculated under the Article applicable to the member
18or participant during the 96 consecutive months (or 8
19consecutive years) of service within the last 120 months (or 10
20years) of service in which the total salary or earnings
21calculated under the applicable Article was the highest by the
22number of months (or years) of service in that period. For the
23purposes of a person who first becomes a member or participant
24of any retirement system or pension fund to which this Section
25applies on or after January 1, 2011, in this Code, "final

 

 

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1average salary" shall be substituted for the following:
2        (1) In Articles 7 (except for service as sheriff's law
3    enforcement employees) and 15, "final rate of earnings".
4        (2) In Articles 8, 9, 10, 11, and 12, "highest average
5    annual salary for any 4 consecutive years within the last
6    10 years of service immediately preceding the date of
7    withdrawal".
8        (3) In Article 13, "average final salary".
9        (4) In Article 14, "final average compensation".
10        (5) In Article 17, "average salary".
11        (6) In Section 22-207, "wages or salary received by him
12    at the date of retirement or discharge".
13    (b-5) Beginning on January 1, 2011, for all purposes under
14this Code (including without limitation the calculation of
15benefits and employee contributions), the annual earnings,
16salary, or wages (based on the plan year) of a member or
17participant to whom this Section applies shall not exceed
18$106,800; however, that amount shall annually thereafter be
19increased by the lesser of (i) 3% of that amount, including all
20previous adjustments, or (ii) one-half the annual unadjusted
21percentage increase (but not less than zero) in the consumer
22price index-u for the 12 months ending with the September
23preceding each November 1, including all previous adjustments.
24    For the purposes of this Section, "consumer price index-u"
25means the index published by the Bureau of Labor Statistics of
26the United States Department of Labor that measures the average

 

 

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1change in prices of goods and services purchased by all urban
2consumers, United States city average, all items, 1982-84 =
3100. The new amount resulting from each annual adjustment shall
4be determined by the Public Pension Division of the Department
5of Insurance and made available to the boards of the retirement
6systems and pension funds by November 1 of each year.
7    (c) A member or participant is entitled to a retirement
8annuity upon written application if he or she has attained age
967 and has at least 10 years of service credit and is otherwise
10eligible under the requirements of the applicable Article.
11    A member or participant who has attained age 62 and has at
12least 10 years of service credit and is otherwise eligible
13under the requirements of the applicable Article may elect to
14receive the lower retirement annuity provided in subsection (d)
15of this Section.
16    (d) The retirement annuity of a member or participant who
17is retiring after attaining age 62 with at least 10 years of
18service credit shall be reduced by one-half of 1% for each full
19month that the member's age is under age 67.
20    (e) Any retirement annuity or supplemental annuity shall be
21subject to annual increases on the January 1 occurring either
22on or after the attainment of age 67 or the first anniversary
23of the annuity start date, whichever is later. Each annual
24increase shall be calculated at 3% or one-half the annual
25unadjusted percentage increase (but not less than zero) in the
26consumer price index-u for the 12 months ending with the

 

 

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1September preceding each November 1, whichever is less, of the
2originally granted retirement annuity. If the annual
3unadjusted percentage change in the consumer price index-u for
4the 12 months ending with the September preceding each November
51 is zero or there is a decrease, then the annuity shall not be
6increased.
7    (f) The initial survivor's or widow's annuity of an
8otherwise eligible survivor or widow of a retired member or
9participant who first became a member or participant on or
10after January 1, 2011 shall be in the amount of 66 2/3% of the
11retired member's or participant's retirement annuity at the
12date of death. In the case of the death of a member or
13participant who has not retired and who first became a member
14or participant on or after January 1, 2011, eligibility for a
15survivor's or widow's annuity shall be determined by the
16applicable Article of this Code. The initial benefit shall be
1766 2/3% of the earned annuity without a reduction due to age. A
18child's annuity of an otherwise eligible child shall be in the
19amount prescribed under each Article if applicable. Any
20survivor's or widow's annuity shall be increased (1) on each
21January 1 occurring on or after the commencement of the annuity
22if the deceased member died while receiving a retirement
23annuity or (2) in other cases, on each January 1 occurring
24after the first anniversary of the commencement of the annuity.
25Each annual increase shall be calculated at 3% or one-half the
26annual unadjusted percentage increase (but not less than zero)

 

 

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1in the consumer price index-u for the 12 months ending with the
2September preceding each November 1, whichever is less, of the
3originally granted survivor's annuity. If the annual
4unadjusted percentage change in the consumer price index-u for
5the 12 months ending with the September preceding each November
61 is zero or there is a decrease, then the annuity shall not be
7increased.
8    (g) The benefits in Section 14-110 apply only if the person
9is a State policeman, a fire fighter in the fire protection
10service of a department, or a security employee of the
11Department of Corrections or the Department of Juvenile
12Justice, as those terms are defined in subsection (b) of
13Section 14-110. A person who meets the requirements of this
14Section is entitled to an annuity calculated under the
15provisions of Section 14-110, in lieu of the regular or minimum
16retirement annuity, only if the person has withdrawn from
17service with not less than 20 years of eligible creditable
18service and has attained age 60, regardless of whether the
19attainment of age 60 occurs while the person is still in
20service.
21    (h) If a person who first becomes a member or a participant
22of a retirement system or pension fund subject to this Section
23on or after January 1, 2011 is receiving a retirement annuity
24or retirement pension under that system or fund and becomes a
25member or participant under any other system or fund created by
26this Code and is employed on a full-time basis, except for

 

 

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1those members or participants exempted from the provisions of
2this Section under subsection (a) of this Section, then the
3person's retirement annuity or retirement pension under that
4system or fund shall be suspended during that employment. Upon
5termination of that employment, the person's retirement
6annuity or retirement pension payments shall resume and be
7recalculated if recalculation is provided for under the
8applicable Article of this Code.
9    If a person who first becomes a member of a retirement
10system or pension fund subject to this Section on or after
11January 1, 2012 and is receiving a retirement annuity or
12retirement pension under that system or fund and accepts on a
13contractual basis a position to provide services to a
14governmental entity from which he or she has retired, then that
15person's annuity or retirement pension earned as an active
16employee of the employer shall be suspended during that
17contractual service. A person receiving an annuity or
18retirement pension under this Code shall notify the pension
19fund or retirement system from which he or she is receiving an
20annuity or retirement pension, as well as his or her
21contractual employer, of his or her retirement status before
22accepting contractual employment. A person who fails to submit
23such notification shall be guilty of a Class A misdemeanor and
24required to pay a fine of $1,000. Upon termination of that
25contractual employment, the person's retirement annuity or
26retirement pension payments shall resume and, if appropriate,

 

 

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1be recalculated under the applicable provisions of this Code.
2    (i) Notwithstanding any other provision of this Section, a
3person who first becomes a participant of the retirement system
4established under Article 15 on or after January 1, 2011 shall
5have the option to enroll in the self-managed plan created
6under Section 15-158.2 of this Code.
7    (j) In the case of a conflict between the provisions of
8this Section and any other provision of this Code, the
9provisions of this Section shall control.
10(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
 
11    (40 ILCS 5/3-140.2 new)
12    Sec. 3-140.2. Investment of funds by the board of trustees
13of the Illinois Municipal Retirement Fund. The board of each
14fund may, by irrevocable resolution duly adopted, transfer to
15the board of trustees of the Illinois Municipal Retirement
16Fund, for management and administration, all investments owned
17by the fund of every kind and character. Upon completion of the
18transfer, the authority of the board of a fund to make
19investments shall terminate. Thereafter, all investments of
20the reserves of each fund shall be made by the board of
21trustees of the Illinois Municipal Retirement Fund.
22    The transfers shall be made as soon as practicable
23following the effective date of such resolution, but after an
24audit of the investments shall be completed by a certified
25public accountant who is (i) selected by the board created

 

 

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1under this Article and (ii) approved by the Auditor General of
2the State of Illinois. The expense of each audit shall be
3assumed by the board created under this Article.
 
4    (40 ILCS 5/4-129.2 new)
5    Sec. 4-129.2. Investment of funds by the board of trustees
6of the Illinois Municipal Retirement Fund. The board of each
7fund may, by irrevocable resolution duly adopted, transfer to
8the board of trustees of the Illinois Municipal Retirement
9Fund, for management and administration, all investments owned
10by the fund of every kind and character. Upon completion of the
11transfer, the authority of the board of a fund to make
12investments shall terminate. Thereafter, all investments of
13the reserves of each fund shall be made by the board of
14trustees of the Illinois Municipal Retirement Fund.
15    The transfers shall be made as soon as practicable
16following the effective date of such resolution, but after an
17audit of the investments shall be completed by a certified
18public accountant who is (i) selected by the board created
19under this Article and (ii) approved by the Auditor General of
20the State of Illinois. The expense of each audit shall be
21assumed by the board created under this Article.
 
22    (40 ILCS 5/7-109)  (from Ch. 108 1/2, par. 7-109)
23    Sec. 7-109. Employee.
24    (1) "Employee" means any person who:

 

 

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1        (a) 1. Receives earnings as payment for the performance
2        of personal services or official duties out of the
3        general fund of a municipality, or out of any special
4        fund or funds controlled by a municipality, or by an
5        instrumentality thereof, or a participating
6        instrumentality, including, in counties, the fees or
7        earnings of any county fee office; and
8            2. Under the usual common law rules applicable in
9        determining the employer-employee relationship, has
10        the status of an employee with a municipality, or any
11        instrumentality thereof, or a participating
12        instrumentality, including aldermen, county
13        supervisors and other persons (excepting those
14        employed as independent contractors) who are paid
15        compensation, fees, allowances or other emolument for
16        official duties, and, in counties, the several county
17        fee offices.
18        (b) Serves as a township treasurer appointed under the
19    School Code, as heretofore or hereafter amended, and who
20    receives for such services regular compensation as
21    distinguished from per diem compensation, and any regular
22    employee in the office of any township treasurer whether or
23    not his earnings are paid from the income of the permanent
24    township fund or from funds subject to distribution to the
25    several school districts and parts of school districts as
26    provided in the School Code, or from both such sources.

 

 

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1        (c) Holds an elective office in a municipality,
2    instrumentality thereof or participating instrumentality.
3    (2) "Employee" does not include persons who:
4        (a) Are eligible for inclusion under any of the
5    following laws:
6            1. "An Act in relation to an Illinois State
7        Teachers' Pension and Retirement Fund", approved May
8        27, 1915, as amended;
9            2. Articles 15 and 16 of this Code.
10        However, such persons shall be included as employees to
11    the extent of earnings that are not eligible for inclusion
12    under the foregoing laws for services not of an
13    instructional nature of any kind.
14        However, any member of the armed forces who is employed
15    as a teacher of subjects in the Reserve Officers Training
16    Corps of any school and who is not certified under the law
17    governing the certification of teachers shall be included
18    as an employee.
19        (b) Are designated by the governing body of a
20    municipality in which a pension fund is required by law to
21    be established for policemen or firemen, respectively, as
22    performing police or fire protection duties, except that
23    when such persons are the heads of the police or fire
24    department and are not eligible to be included within any
25    such pension fund, they shall be included within this
26    Article; provided, that such persons shall not be excluded

 

 

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1    to the extent of concurrent service and earnings not
2    designated as being for police or fire protection duties.
3    However, (i) any head of a police department who was a
4    participant under this Article immediately before October
5    1, 1977 and did not elect, under Section 3-109 of this Act,
6    to participate in a police pension fund shall be an
7    "employee", and (ii) any chief of police who elects to
8    participate in this Fund under Section 3-109.1 of this
9    Code, regardless of whether such person continues to be
10    employed as chief of police or is employed in some other
11    rank or capacity within the police department, shall be an
12    employee under this Article for so long as such person is
13    employed to perform police duties by a participating
14    municipality and has not lawfully rescinded that election.
15        (c) After the effective date of this amendatory Act of
16    the 97th General Assembly, are contributors to or eligible
17    to contribute to a Taft-Hartley pension plan established on
18    or before June 1, 2011 and are employees of a theatre,
19    arena, or convention center that is located in a
20    municipality located in a county with a population greater
21    than 5,000,000, and to which the participating
22    municipality is required to contribute as the person's
23    employer based on earnings from the municipality. Nothing
24    in this paragraph shall affect service credit or creditable
25    service for any period of service prior to the effective
26    date of this amendatory Act of the 97th General Assembly,

 

 

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1    and this paragraph shall not apply to individuals who are
2    participating in the Fund prior to the effective date of
3    this amendatory Act of the 97th General Assembly.
4    (3) All persons, including, without limitation, public
5defenders and probation officers, who receive earnings from
6general or special funds of a county for performance of
7personal services or official duties within the territorial
8limits of the county, are employees of the county (unless
9excluded by subsection (2) of this Section) notwithstanding
10that they may be appointed by and are subject to the direction
11of a person or persons other than a county board or a county
12officer. It is hereby established that an employer-employee
13relationship under the usual common law rules exists between
14such employees and the county paying their salaries by reason
15of the fact that the county boards fix their rates of
16compensation, appropriate funds for payment of their earnings
17and otherwise exercise control over them. This finding and this
18amendatory Act shall apply to all such employees from the date
19of appointment whether such date is prior to or after the
20effective date of this amendatory Act and is intended to
21clarify existing law pertaining to their status as
22participating employees in the Fund.
23(Source: P.A. 90-460, eff. 8-17-97.)
 
24    (40 ILCS 5/7-116)  (from Ch. 108 1/2, par. 7-116)
25    Sec. 7-116. "Final rate of earnings":

 

 

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1    (a) For retirement and survivor annuities, the monthly
2earnings obtained by dividing the total earnings received by
3the employee during the period of either (1) the 48 consecutive
4months of service within the last 120 months of service in
5which his total earnings were the highest or (2) the employee's
6total period of service, by the number of months of service in
7such period.
8    (b) For death benefits, the higher of the rate determined
9under paragraph (a) of this Section or total earnings received
10in the last 12 months of service divided by twelve. If the
11deceased employee has less than 12 months of service, the
12monthly final rate shall be the monthly rate of pay the
13employee was receiving when he began service.
14    (c) For disability benefits, the total earnings of a
15participating employee in the last 12 calendar months of
16service prior to the date he becomes disabled divided by 12.
17    (d) In computing the final rate of earnings: (1) the
18earnings rate for all periods of prior service shall be
19considered equal to the average earnings rate for the last 3
20calendar years of prior service for which creditable service is
21received under Section 7-139 or, if there is less than 3 years
22of creditable prior service, the average for the total prior
23service period for which creditable service is received under
24Section 7-139; (2) for out of state service and authorized
25leave, the earnings rate shall be the rate upon which service
26credits are granted; (3) periods of military leave shall not be

 

 

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1considered; (4) the earnings rate for all periods of disability
2shall be considered equal to the rate of earnings upon which
3the employee's disability benefits are computed for such
4periods; (5) the earnings to be considered for each of the
5final three months of the final earnings period for persons who
6first became participants before January 1, 2012 and the
7earnings to be considered for each of the final 24 months for
8participants who first become participants on or after January
91, 2012 shall not exceed 125% of the highest earnings of any
10other month in the final earnings period; and (6) the annual
11amount of final rate of earnings shall be the monthly amount
12multiplied by the number of months of service normally required
13by the position in a year.
14(Source: P.A. 90-448, eff. 8-16-97.)
 
15    (40 ILCS 5/7-135)  (from Ch. 108 1/2, par. 7-135)
16    Sec. 7-135. Authorized agents.
17    (a) Each participating municipality and participating
18instrumentality shall appoint an authorized agent who shall
19have the powers and duties set forth in this section. In
20absence of such appointment, the duties of the authorized agent
21shall devolve upon the clerk or secretary of the municipality
22or instrumentality and in the case of township school trustees
23upon the township school treasurer. In townships the Authorized
24Agent shall be the township supervisor.
25    (b) The authorized agent shall have the following powers

 

 

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1and duties:
2        1. To certify to the fund whether or not a given person
3    is authorized to participate in the fund;
4        2. To certify to the fund when a participating employee
5    is on a leave of absence authorized by the municipality;
6        3. To request the proper officer to cause employee
7    contributions to be withheld from earnings and transmitted
8    to the fund;
9        4. To request the proper officer to cause municipality
10    contributions to be forwarded to the fund promptly;
11        5. To forward promptly to all participating employees
12    any communications from the fund for such employees;
13        6. To forward promptly to the fund all applications,
14    claims, reports and other communications delivered to him
15    by participating employees;
16        7. To perform all duties related to the administration
17    of this retirement system as requested by the fund and the
18    governing body of his municipality.
19    (c) The governing body of each participating municipality
20and participating instrumentality may delegate any or all of
21the following powers and duties to its authorized agent, but
22only if the agent is a member of the fund:
23        1. To file a petition for nomination of an executive
24    trustee of the fund.
25        2. To cast the ballot for election of an executive
26    trustee of the fund.

 

 

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1    If a governing body does not authorize its agent to perform
2the powers and duties set forth in this paragraph (c), they
3shall be performed by the governing body itself, unless the
4governing body by resolution duly certified to the fund
5delegates them to some other officer or employee.
6    (d) The delivery of any communication or document by an
7employee or a participating municipality or participating
8instrumentality to its authorized agent shall not constitute
9delivery to the fund.
10(Source: P.A. 87-740.)
 
11    (40 ILCS 5/7-137)  (from Ch. 108 1/2, par. 7-137)
12    Sec. 7-137. Participating and covered employees.
13    (a) The persons described in this paragraph (a) shall be
14included within and be subject to this Article and eligible to
15benefits from this fund, beginning upon the dates hereinafter
16specified:
17        1. Except as to the employees specifically excluded
18    under the provisions of this Article, all persons who are
19    employees of any municipality (or instrumentality thereof)
20    or participating instrumentality on the effective date of
21    participation of the municipality or participating
22    instrumentality beginning upon such effective date.
23        2. Except as to the employees specifically excluded
24    under the provisions of this Article, all persons, who
25    became employees of any participating municipality (or

 

 

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

 

 

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

 

 

09700SB1831ham001- 21 -LRB097 08644 JDS 56114 a

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

 

 

09700SB1831ham001- 22 -LRB097 08644 JDS 56114 a

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

 

 

09700SB1831ham001- 23 -LRB097 08644 JDS 56114 a

1ordinance, and once effective shall be irrevocable.
2(Source: P.A. 96-1140, eff. 7-21-10.)
 
3    (40 ILCS 5/7-141)  (from Ch. 108 1/2, par. 7-141)
4    Sec. 7-141. Retirement annuities - Conditions. Retirement
5annuities shall be payable as hereinafter set forth:
6    (a) A participating employee who, regardless of cause, is
7separated from the service of all participating municipalities
8and instrumentalities thereof and participating
9instrumentalities shall be entitled to a retirement annuity
10provided:
11        1. He is at least age 55, or in the case of a person who
12    is eligible to have his annuity calculated under Section
13    7-142.1, he is at least age 50;
14        2. He is (i) an employee who was employed by any
15    participating municipality or participating
16    instrumentality which had not elected to exclude persons
17    employed in positions normally requiring performance of
18    duty for less than 1000 hours per year or was employed in a
19    position normally requiring performance of duty for 600
20    hours or more per year prior to such election by any
21    participating municipality or participating
22    instrumentality included in and subject to this Article on
23    or before the effective date of this amendatory Act of 1981
24    which made such election and is not entitled to receive
25    earnings for employment in a position normally requiring

 

 

09700SB1831ham001- 24 -LRB097 08644 JDS 56114 a

1    performance of duty for 600 hours or more per year for any
2    participating municipality and instrumentalities thereof
3    and participating instrumentality; or (ii) an employee who
4    was employed only by a participating municipality or
5    participating instrumentality, or participating
6    municipalities or participating instrumentalities, which
7    have elected to exclude persons in positions normally
8    requiring performance of duty for less than 1000 hours per
9    year after the effective date of such exclusion or which
10    are included under and subject to the Article after the
11    effective date of this amendatory Act of 1981 and elects to
12    exclude persons in such positions, and is not entitled to
13    receive earnings for employment in a position requiring
14    him, or entitling him to elect, to be a participating
15    employee normally requiring performance of duty for 1000
16    hours or more per year by such a participating municipality
17    or participating instrumentality;
18        3. The amount of his annuity, before the application of
19    paragraph (b) of Section 7-142 is at least $10 per month;
20        4. If he first became a participating employee after
21    December 31, 1961, he has at least 8 years of service. This
22    service requirement shall not apply to any participating
23    employee, regardless of participation date, if the General
24    Assembly terminates the Fund.
25    (b) Retirement annuities shall be payable:
26        1. As provided in Section 7-119;

 

 

09700SB1831ham001- 25 -LRB097 08644 JDS 56114 a

1        2. Except as provided in item 3, upon receipt by the
2    fund of a written application. The effective date may be
3    not more than one year prior to the date of the receipt by
4    the fund of the application;
5        3. Upon attainment of age 70 1/2 if the member (i) is
6    no longer in service, and (ii) is otherwise entitled to an
7    annuity under this Article;
8        4. To the beneficiary of the deceased annuitant for the
9    unpaid amount accrued to date of death, if any.
10(Source: P.A. 91-887, eff. 7-6-00.)
 
11    (40 ILCS 5/7-141.1)
12    Sec. 7-141.1. Early retirement incentive.
13    (a) The General Assembly finds and declares that:
14        (1) Units of local government across the State have
15    been functioning under a financial crisis.
16        (2) This financial crisis is expected to continue.
17        (3) Units of local government must depend on additional
18    sources of revenue and, when those sources are not
19    forthcoming, must establish cost-saving programs.
20        (4) An early retirement incentive designed
21    specifically to target highly-paid senior employees could
22    result in significant annual cost savings.
23        (5) The early retirement incentive should be made
24    available only to those units of local government that
25    determine that an early retirement incentive is in their

 

 

09700SB1831ham001- 26 -LRB097 08644 JDS 56114 a

1    best interest.
2        (6) A unit of local government adopting a program of
3    early retirement incentives under this Section is
4    encouraged to implement personnel procedures to prohibit,
5    for at least 5 years, the rehiring (whether on payroll or
6    by independent contract) of employees who receive early
7    retirement incentives.
8        (7) A unit of local government adopting a program of
9    early retirement incentives under this Section is also
10    encouraged to replace as few of the participating employees
11    as possible and to hire replacement employees for salaries
12    totaling no more than 80% of the total salaries formerly
13    paid to the employees who participate in the early
14    retirement program.
15    It is the primary purpose of this Section to encourage
16units of local government that can realize true cost savings,
17or have determined that an early retirement program is in their
18best interest, to implement an early retirement program.
19    (b) Until the effective date of this amendatory Act of
201997, this Section does not apply to any employer that is a
21city, village, or incorporated town, nor to the employees of
22any such employer. Beginning on the effective date of this
23amendatory Act of 1997, any employer under this Article,
24including an employer that is a city, village, or incorporated
25town, may establish an early retirement incentive program for
26its employees under this Section. The decision of a city,

 

 

09700SB1831ham001- 27 -LRB097 08644 JDS 56114 a

1village, or incorporated town to consider or establish an early
2retirement program is at the sole discretion of that city,
3village, or incorporated town, and nothing in this amendatory
4Act of 1997 limits or otherwise diminishes this discretion.
5Nothing contained in this Section shall be construed to require
6a city, village, or incorporated town to establish an early
7retirement program and no city, village, or incorporated town
8may be compelled to implement such a program.
9    The benefits provided in this Section are available only to
10members employed by a participating employer that has filed
11with the Board of the Fund a resolution or ordinance expressly
12providing for the creation of an early retirement incentive
13program under this Section for its employees and specifying the
14effective date of the early retirement incentive program.
15Subject to the limitation in subsection (h), an employer may
16adopt a resolution or ordinance providing a program of early
17retirement incentives under this Section at any time.
18    The resolution or ordinance shall be in substantially the
19following form:
 
20
RESOLUTION (ORDINANCE) NO. ....
21
A RESOLUTION (ORDINANCE) ADOPTING AN EARLY
22
RETIREMENT INCENTIVE PROGRAM FOR EMPLOYEES
23
IN THE ILLINOIS MUNICIPAL RETIREMENT FUND
24    WHEREAS, Section 7-141.1 of the Illinois Pension Code
25provides that a participating employer may elect to adopt an

 

 

09700SB1831ham001- 28 -LRB097 08644 JDS 56114 a

1early retirement incentive program offered by the Illinois
2Municipal Retirement Fund by adopting a resolution or
3ordinance; and
4    WHEREAS, The goal of adopting an early retirement program
5is to realize a substantial savings in personnel costs by
6offering early retirement incentives to employees who have
7accumulated many years of service credit; and
8    WHEREAS, Implementation of the early retirement program
9will provide a budgeting tool to aid in controlling payroll
10costs; and
11    WHEREAS, The (name of governing body) has determined that
12the adoption of an early retirement incentive program is in the
13best interests of the (name of participating employer);
14therefore be it
15    RESOLVED (ORDAINED) by the (name of governing body) of
16(name of participating employer) that:
17    (1) The (name of participating employer) does hereby adopt
18the Illinois Municipal Retirement Fund early retirement
19incentive program as provided in Section 7-141.1 of the
20Illinois Pension Code. The early retirement incentive program
21shall take effect on (date).
22    (2) In order to help achieve a true cost savings, a person
23who retires under the early retirement incentive program shall
24lose those incentives if he or she later accepts employment
25with any IMRF employer in a position for which participation in
26IMRF is required or is elected by the employee.

 

 

09700SB1831ham001- 29 -LRB097 08644 JDS 56114 a

1    (3) In order to utilize an early retirement incentive as a
2budgeting tool, the (name of participating employer) will use
3its best efforts either to limit the number of employees who
4replace the employees who retire under the early retirement
5program or to limit the salaries paid to the employees who
6replace the employees who retire under the early retirement
7program.
8    (4) The effective date of each employee's retirement under
9this early retirement program shall be set by (name of
10employer) and shall be no earlier than the effective date of
11the program and no later than one year after that effective
12date; except that the employee may require that the retirement
13date set by the employer be no later than the June 30 next
14occurring after the effective date of the program and no
15earlier than the date upon which the employee qualifies for
16retirement.
17    (5) To be eligible for the early retirement incentive under
18this Section, the employee must have attained age 50 and have
19at least 20 years of creditable service by his or her
20retirement date.
21    (6) The (clerk or secretary) shall promptly file a
22certified copy of this resolution (ordinance) with the Board of
23Trustees of the Illinois Municipal Retirement Fund.
24CERTIFICATION
25    I, (name), the (clerk or secretary) of the (name of
26participating employer) of the County of (name), State of

 

 

09700SB1831ham001- 30 -LRB097 08644 JDS 56114 a

1Illinois, do hereby certify that I am the keeper of the books
2and records of the (name of employer) and that the foregoing is
3a true and correct copy of a resolution (ordinance) duly
4adopted by the (governing body) at a meeting duly convened and
5held on (date).
6SEAL
7(Signature of clerk or secretary)
 
8    (c) To be eligible for the benefits provided under an early
9retirement incentive program adopted under this Section, a
10member must:
11        (1) be a participating employee of this Fund who, on
12    the effective date of the program, (i) is in active payroll
13    status as an employee of a participating employer that has
14    filed the required ordinance or resolution with the Board,
15    (ii) is on layoff status from such a position with a right
16    of re-employment or recall to service, (iii) is on a leave
17    of absence from such a position, or (iv) is on disability
18    but has not been receiving benefits under Section 7-146 or
19    7-150 for a period of more than 2 years from the date of
20    application;
21        (2) have never previously received a retirement
22    annuity under this Article or under the Retirement Systems
23    Reciprocal Act using service credit established under this
24    Article;
25        (3) (blank);

 

 

09700SB1831ham001- 31 -LRB097 08644 JDS 56114 a

1        (4) have at least 20 years of creditable service in the
2    Fund by the date of retirement, without the use of any
3    creditable service established under this Section;
4        (5) have attained age 50 by the date of retirement,
5    without the use of any age enhancement received under this
6    Section; and
7        (6) be eligible to receive a retirement annuity under
8    this Article by the date of retirement, for which purpose
9    the age enhancement and creditable service established
10    under this Section may be considered.
11    (d) The employer shall determine the retirement date for
12each employee participating in the early retirement program
13adopted under this Section. The retirement date shall be no
14earlier than the effective date of the program and no later
15than one year after that effective date, except that the
16employee may require that the retirement date set by the
17employer be no later than the June 30 next occurring after the
18effective date of the program and no earlier than the date upon
19which the employee qualifies for retirement. The employer shall
20give each employee participating in the early retirement
21program at least 30 days written notice of the employee's
22designated retirement date, unless the employee waives this
23notice requirement.
24    (e) An eligible person may establish up to 5 years of
25creditable service under this Section. In addition, for each
26period of creditable service established under this Section, a

 

 

09700SB1831ham001- 32 -LRB097 08644 JDS 56114 a

1person shall have his or her age at retirement deemed enhanced
2by an equivalent period.
3    The creditable service established under this Section may
4be used for all purposes under this Article and the Retirement
5Systems Reciprocal Act, except for the computation of final
6rate of earnings and the determination of earnings, salary, or
7compensation under this or any other Article of the Code.
8    The age enhancement established under this Section may be
9used for all purposes under this Article (including calculation
10of the reduction imposed under subdivision (a)1b(iv) of Section
117-142), except for purposes of a reversionary annuity under
12Section 7-145 and any distributions required because of age.
13The age enhancement established under this Section may be used
14in calculating a proportionate annuity payable by this Fund
15under the Retirement Systems Reciprocal Act, but shall not be
16used in determining benefits payable under other Articles of
17this Code under the Retirement Systems Reciprocal Act.
18    (f) For all creditable service established under this
19Section, the member must pay to the Fund an employee
20contribution consisting of 4.5% of the member's highest annual
21salary rate used in the determination of the final rate of
22earnings for retirement annuity purposes for each year of
23creditable service granted under this Section. For creditable
24service established under this Section by a person who is a
25sheriff's law enforcement employee to be deemed service as a
26sheriff's law enforcement employee, the employee contribution

 

 

09700SB1831ham001- 33 -LRB097 08644 JDS 56114 a

1shall be at the rate of 6.5% of highest annual salary per year
2of creditable service granted. Contributions for fractions of a
3year of service shall be prorated. Any amounts that are
4disregarded in determining the final rate of earnings under
5subdivision (d)(5) of Section 7-116 (the 125% rule) shall also
6be disregarded in determining the required contribution under
7this subsection (f).
8    The employee contribution shall be paid to the Fund as
9follows: If the member is entitled to a lump sum payment for
10accumulated vacation, sick leave, or personal leave upon
11withdrawal from service, the employer shall deduct the employee
12contribution from that lump sum and pay the deducted amount
13directly to the Fund. If there is no such lump sum payment or
14the required employee contribution exceeds the net amount of
15the lump sum payment, then the remaining amount due, at the
16option of the employee, may either be paid to the Fund before
17the annuity commences or deducted from the retirement annuity
18in 24 equal monthly installments.
19    (g) An annuitant who has received any age enhancement or
20creditable service under this Section and thereafter accepts
21employment with or enters into a personal services contract
22with an employer under this Article thereby forfeits that age
23enhancement and creditable service; except that this
24restriction does not apply to (1) service in an elective
25office, so long as the annuitant does not participate in this
26Fund with respect to that office, and (2) a person appointed as

 

 

09700SB1831ham001- 34 -LRB097 08644 JDS 56114 a

1an officer under subsection (f) of Section 3-109 of this Code,
2and (3) a person appointed as an auxiliary police officer
3pursuant to Section 3.1-30-5 of the Illinois Municipal Code. A
4person forfeiting early retirement incentives under this
5subsection (i) must repay to the Fund that portion of the
6retirement annuity already received which is attributable to
7the early retirement incentives that are being forfeited, (ii)
8shall not be eligible to participate in any future early
9retirement program adopted under this Section, and (iii) is
10entitled to a refund of the employee contribution paid under
11subsection (f). The Board shall deduct the required repayment
12from the refund and may impose a reasonable payment schedule
13for repaying the amount, if any, by which the required
14repayment exceeds the refund amount.
15    (h) The additional unfunded liability accruing as a result
16of the adoption of a program of early retirement incentives
17under this Section by an employer shall be amortized over a
18period of 10 years beginning on January 1 of the second
19calendar year following the calendar year in which the latest
20date for beginning to receive a retirement annuity under the
21program (as determined by the employer under subsection (d) of
22this Section) occurs; except that the employer may provide for
23a shorter amortization period (of no less than 5 years) by
24adopting an ordinance or resolution specifying the length of
25the amortization period and submitting a certified copy of the
26ordinance or resolution to the Fund no later than 6 months

 

 

09700SB1831ham001- 35 -LRB097 08644 JDS 56114 a

1after the effective date of the program. An employer, at its
2discretion, may accelerate payments to the Fund.
3    An employer may provide more than one early retirement
4incentive program for its employees under this Section.
5However, an employer that has provided an early retirement
6incentive program for its employees under this Section may not
7provide another early retirement incentive program under this
8Section until the liability arising from the earlier program
9has been fully paid to the Fund.
10(Source: P.A. 96-775, eff. 8-28-09.)
 
11    (40 ILCS 5/7-142.1)  (from Ch. 108 1/2, par. 7-142.1)
12    Sec. 7-142.1. Sheriff's law enforcement employees.
13    (a) In lieu of the retirement annuity provided by
14subparagraph 1 of paragraph (a) of Section 7-142:
15    Any sheriff's law enforcement employee who has 20 or more
16years of service in that capacity and who terminates service
17prior to January 1, 1988 shall be entitled at his option to
18receive a monthly retirement annuity for his service as a
19sheriff's law enforcement employee computed by multiplying 2%
20for each year of such service up to 10 years, 2 1/4% for each
21year of such service above 10 years and up to 20 years, and 2
221/2% for each year of such service above 20 years, by his
23annual final rate of earnings and dividing by 12.
24    Any sheriff's law enforcement employee who has 20 or more
25years of service in that capacity and who terminates service on

 

 

09700SB1831ham001- 36 -LRB097 08644 JDS 56114 a

1or after January 1, 1988 and before July 1, 2004 shall be
2entitled at his option to receive a monthly retirement annuity
3for his service as a sheriff's law enforcement employee
4computed by multiplying 2.5% for each year of such service up
5to 20 years, 2% for each year of such service above 20 years
6and up to 30 years, and 1% for each year of such service above
730 years, by his annual final rate of earnings and dividing by
812.
9    Any sheriff's law enforcement employee who has 20 or more
10years of service in that capacity and who terminates service on
11or after July 1, 2004 shall be entitled at his or her option to
12receive a monthly retirement annuity for service as a sheriff's
13law enforcement employee computed by multiplying 2.5% for each
14year of such service by his annual final rate of earnings and
15dividing by 12.
16    If a sheriff's law enforcement employee has service in any
17other capacity, his retirement annuity for service as a
18sheriff's law enforcement employee may be computed under this
19Section and the retirement annuity for his other service under
20Section 7-142.
21    In no case shall the total monthly retirement annuity for
22persons who retire before July 1, 2004 exceed 75% of the
23monthly final rate of earnings. In no case shall the total
24monthly retirement annuity for persons who retire on or after
25July 1, 2004 exceed 80% of the monthly final rate of earnings.
26    (b) Whenever continued group insurance coverage is elected

 

 

09700SB1831ham001- 37 -LRB097 08644 JDS 56114 a

1in accordance with the provisions of Section 367h of the
2Illinois Insurance Code, as now or hereafter amended, the total
3monthly premium for such continued group insurance coverage or
4such portion thereof as is not paid by the municipality shall,
5upon request of the person electing such continued group
6insurance coverage, be deducted from any monthly pension
7benefit otherwise payable to such person pursuant to this
8Section, to be remitted by the Fund to the insurance company or
9other entity providing the group insurance coverage.
10    (c) A sheriff's law enforcement employee who began service
11in that capacity prior to the effective date of this amendatory
12Act of the 97th General Assembly and who has service in any
13other capacity may convert up to 10 years of that service into
14service as a sheriff's law enforcement employee by paying to
15the Fund an amount equal to (1) the additional employee
16contribution required under Section 7-173.1, plus (2) the
17additional employer contribution required under Section 7-172,
18plus (3) interest on items (1) and (2) at the prescribed rate
19from the date of the service to the date of payment.
20    (d) The changes to subsections (a) and (b) of this Section
21made by this amendatory Act of the 94th General Assembly apply
22only to persons in service on or after July 1, 2004. In the
23case of such a person who begins to receive a retirement
24annuity before the effective date of this amendatory Act of the
2594th General Assembly, the annuity shall be recalculated
26prospectively to reflect those changes, with the resulting

 

 

09700SB1831ham001- 38 -LRB097 08644 JDS 56114 a

1increase beginning to accrue on the first annuity payment date
2following the effective date of this amendatory Act.
3    (e) Any elected county officer who was entitled to receive
4a stipend from the State on or after July 1, 2009 and on or
5before June 30, 2010 may establish earnings credit for the
6amount of stipend not received, if the elected county official
7applies in writing to the fund within 6 months after the
8effective date of this amendatory Act of the 96th General
9Assembly and pays to the fund an amount equal to (i) employee
10contributions on the amount of stipend not received, (ii)
11employer contributions determined by the Board equal to the
12employer's normal cost of the benefit on the amount of stipend
13not received, plus (iii) interest on items (i) and (ii) at the
14actuarially assumed rate.
15    (f) Notwithstanding any other provision of this Article,
16the provisions of this subsection (f) apply to a person who
17first becomes a sheriff's law enforcement employee under this
18Article on or after January 1, 2011.
19    A sheriff's law enforcement employee age 55 or more who has
2010 or more years of service in that capacity shall be entitled
21at his option to receive a monthly retirement annuity for his
22or her service as a sheriff's law enforcement employee computed
23by multiplying 2.5% for each year of such service by his or her
24final rate of earnings.
25    The retirement annuity of a sheriff's law enforcement
26employee who is retiring after attaining age 50 with 10 or more

 

 

09700SB1831ham001- 39 -LRB097 08644 JDS 56114 a

1years of creditable service shall be reduced by one-half of 1%
2for each month that the sheriff's law enforcement employee's
3age is under age 55.
4    The maximum retirement annuity under this subsection (f)
5shall be 75% of final rate of earnings.
6    For the purposes of this subsection (f), "final rate of
7earnings" means the average monthly earnings obtained by
8dividing the total salary of the sheriff's law enforcement
9employee during the 96 consecutive months of service within the
10last 120 months of service in which the total earnings was the
11highest by the number of months of service in that period.
12    Notwithstanding any other provision of this Article,
13beginning on January 1, 2011, for all purposes under this Code
14(including without limitation the calculation of benefits and
15employee contributions), the annual earnings of a sheriff's law
16enforcement employee to whom this Section applies shall not
17include overtime and shall not exceed $106,800; however, that
18amount shall annually thereafter be increased by the lesser of
19(i) 3% of that amount, including all previous adjustments, or
20(ii) one-half the annual unadjusted percentage increase (but
21not less than zero) in the consumer price index-u for the 12
22months ending with the September preceding each November 1,
23including all previous adjustments.
24    (g) Notwithstanding any other provision of this Article,
25the monthly annuity of a person who first becomes a sheriff's
26law enforcement employee under this Article on or after January

 

 

09700SB1831ham001- 40 -LRB097 08644 JDS 56114 a

11, 2011 shall be increased on the January 1 occurring either on
2or after the attainment of age 60 or the first anniversary of
3the annuity start date, whichever is later. Each annual
4increase shall be calculated at 3% or one-half the annual
5unadjusted percentage increase (but not less than zero) in the
6consumer price index-u for the 12 months ending with the
7September preceding each November 1, whichever is less, of the
8originally granted retirement annuity. If the annual
9unadjusted percentage change in the consumer price index-u for
10a 12-month period ending in September is zero or, when compared
11with the preceding period, decreases, then the annuity shall
12not be increased.
13    (h) Notwithstanding any other provision of this Article,
14for a person who first becomes a sheriff's law enforcement
15employee under this Article on or after January 1, 2011, the
16annuity to which the surviving spouse, children, or parents are
17entitled under this subsection (h) shall be in the amount of 66
182/3% of the sheriff's law enforcement employee's earned annuity
19at the date of death.
20    (i) Notwithstanding any other provision of this Article,
21the monthly annuity of a survivor of a person who first becomes
22a sheriff's law enforcement employee under this Article on or
23after January 1, 2011 shall be increased on the January 1 after
24attainment of age 60 by the recipient of the survivor's annuity
25and each January 1 thereafter by 3% or one-half the annual
26unadjusted percentage increase in the consumer price index-u

 

 

09700SB1831ham001- 41 -LRB097 08644 JDS 56114 a

1for the 12 months ending with the September preceding each
2November 1, whichever is less, of the originally granted
3pension. If the annual unadjusted percentage change in the
4consumer price index-u for a 12-month period ending in
5September is zero or, when compared with the preceding period,
6decreases, then the annuity shall not be increased.
7    (j) For the purposes of this Section, "consumer price
8index-u" means the index published by the Bureau of Labor
9Statistics of the United States Department of Labor that
10measures the average change in prices of goods and services
11purchased by all urban consumers, United States city average,
12all items, 1982-84 = 100. The new amount resulting from each
13annual adjustment shall be determined by the Public Pension
14Division of the Department of Insurance and made available to
15the boards of the pension funds.
16(Source: P.A. 96-961, eff. 7-2-10; 96-1495, eff. 1-1-11.)
 
17    (40 ILCS 5/7-144)  (from Ch. 108 1/2, par. 7-144)
18    Sec. 7-144. Retirement annuities-Suspended during
19employment.
20    (a) (1) If any person described in clause (i) of subsection
21(a) 2 of Section 7-141 receiving any annuity again becomes an
22employee and receives earnings from employment in a position
23normally requiring performance of duty during 600 hours or more
24per year for any participating municipality and
25instrumentalities thereof or participating instrumentality; or

 

 

09700SB1831ham001- 42 -LRB097 08644 JDS 56114 a

1(2) if any person described in clause (ii) of subsection (a) 2
2of Section 7-141 receiving any annuity returns to employment in
3a position requiring him, or entitling him to elect, to become
4a participating employee, ; then the annuity payable to such
5employee shall be suspended as of the 1st day of the month
6coincidental with or next following the date upon which such
7person becomes such an employee. Upon proper qualification of
8the participating employee payment of such annuity may be
9resumed on the 1st day of the month following such
10qualification and upon proper application therefor. The
11participating employee in such case shall be entitled to a
12supplemental annuity arising from service and credits earned
13subsequent to such re-entry as a participating employee.
14    (b) Supplemental annuities to persons who return to service
15for less than 48 months shall be computed under the provisions
16of Sections 7-141, 7-142 and 7-143. In determining whether an
17employee is eligible for an annuity which requires a minimum
18period of service, his entire period of service shall be taken
19into consideration but the supplemental annuity shall be based
20on earnings and service in the supplemental period only. The
21effective date of the suspended and supplemental annuity for
22the purpose of increases after retirement shall be considered
23to be the effective date of the suspended annuity.
24    (c) Supplemental annuities to persons who return to service
25for 48 months or more shall be a monthly amount determined as
26follows:

 

 

09700SB1831ham001- 43 -LRB097 08644 JDS 56114 a

1        (1) An amount shall be computed under subparagraph b of
2    paragraph (1) of subsection (a) of Section 7-142,
3    considering all of the service credits of the employee;
4        (2) The actuarial value in monthly payments for life of
5    the annuity payments made before suspension shall be
6    determined and subtracted from the amount determined in (1)
7    above;
8        (3) The monthly amount of the suspended annuity, with
9    any applicable increases after retirement computed from
10    the effective date to the date of reinstatement, shall be
11    subtracted from the amount determined in (2) above and the
12    remainder shall be the amount of the supplemental annuity
13    provided that this amount shall not be less than the amount
14    computed under subsection (b) of this Section.
15        (4) The suspended annuity shall be reinstated at an
16    amount including any increases after retirement from the
17    effective date to date of reinstatement.
18        (5) The effective date of the combined suspended and
19    supplemental annuities for the purposes of increases after
20    retirement shall be considered to be the effective date of
21    the supplemental annuity.
22(Source: P.A. 82-459.)
 
23    (40 ILCS 5/7-145.1)
24    Sec. 7-145.1. Alternative annuity for county officers.
25    (a) The benefits provided in this Section and Section

 

 

09700SB1831ham001- 44 -LRB097 08644 JDS 56114 a

17-145.2 are available only if, prior to the effective date of
2this amendatory Act of the 97th General Assembly, the county
3board has filed with the Board of the Fund a resolution or
4ordinance expressly consenting to the availability of these
5benefits for its elected county officers. The county board's
6consent is irrevocable with respect to persons participating in
7the program, but may be revoked at any time with respect to
8persons who have not paid an additional optional contribution
9under this Section before the date of revocation.
10    An elected county officer may elect to establish
11alternative credits for an alternative annuity by electing in
12writing before the effective date of this amendatory Act of the
1397th General Assembly to make additional optional
14contributions in accordance with this Section and procedures
15established by the board. These alternative credits are
16available only for periods of service as an elected county
17officer. The elected county officer may discontinue making the
18additional optional contributions by notifying the Fund in
19writing in accordance with this Section and procedures
20established by the board.
21    Additional optional contributions for the alternative
22annuity shall be as follows:
23        (1) For service as an elected county officer after the
24    option is elected, an additional contribution of 3% of
25    salary shall be contributed to the Fund on the same basis
26    and under the same conditions as contributions required

 

 

09700SB1831ham001- 45 -LRB097 08644 JDS 56114 a

1    under Section 7-173.
2        (2) For service as an elected county officer before the
3    option is elected, an additional contribution of 3% of the
4    salary for the applicable period of service, plus interest
5    at the effective rate from the date of service to the date
6    of payment, plus any additional amount required by the
7    county board under paragraph (3). All payments for past
8    service must be paid in full before credit is given.
9        (3) With respect to service as an elected county
10    officer before the option is elected, if payment is made
11    after the county board has filed with the Board of the Fund
12    a resolution or ordinance requiring an additional
13    contribution under this paragraph, then the contribution
14    required under paragraph (2) shall include an amount to be
15    determined by the Fund, equal to the actuarial present
16    value of the additional employer cost that would otherwise
17    result from the alternative credits being established for
18    that service. A county board's resolution or ordinance
19    requiring additional contributions under this paragraph
20    (3) is irrevocable.
21    No additional optional contributions may be made for any
22period of service for which credit has been previously
23forfeited by acceptance of a refund, unless the refund is
24repaid in full with interest at the effective rate from the
25date of refund to the date of repayment.
26    (b) In lieu of the retirement annuity otherwise payable

 

 

09700SB1831ham001- 46 -LRB097 08644 JDS 56114 a

1under this Article, an elected county officer who (1) has
2elected to participate in the Fund and make additional optional
3contributions in accordance with this Section, (2) has held and
4made additional optional contributions with respect to the same
5elected county office for at least 8 years, and (3) has
6attained age 55 with at least 8 years of service credit (or has
7attained age 50 with at least 20 years of service as a
8sheriff's law enforcement employee) may elect to have his
9retirement annuity computed as follows: 3% of the participant's
10salary for each of the first 8 years of service credit, plus 4%
11of that salary for each of the next 4 years of service credit,
12plus 5% of that salary for each year of service credit in
13excess of 12 years, subject to a maximum of 80% of that salary.
14    This formula applies only to service in an elected county
15office that the officer held for at least 8 years, and only to
16service for which additional optional contributions have been
17paid under this Section. If an elected county officer qualifies
18to have this formula applied to service in more than one
19elected county office, the qualifying service shall be
20accumulated for purposes of determining the applicable accrual
21percentages, but the salary used for each office shall be the
22separate salary calculated for that office, as defined in
23subsection (g).
24    To the extent that the elected county officer has service
25credit that does not qualify for this formula, his retirement
26annuity will first be determined in accordance with this

 

 

09700SB1831ham001- 47 -LRB097 08644 JDS 56114 a

1formula with respect to the service to which this formula
2applies, and then in accordance with the remaining Sections of
3this Article with respect to the service to which this formula
4does not apply.
5    (c) In lieu of the disability benefits otherwise payable
6under this Article, an elected county officer who (1) has
7elected to participate in the Fund, and (2) has become
8permanently disabled and as a consequence is unable to perform
9the duties of his office, and (3) was making optional
10contributions in accordance with this Section at the time the
11disability was incurred, may elect to receive a disability
12annuity calculated in accordance with the formula in subsection
13(b). For the purposes of this subsection, an elected county
14officer shall be considered permanently disabled only if: (i)
15disability occurs while in service as an elected county officer
16and is of such a nature as to prevent him from reasonably
17performing the duties of his office at the time; and (ii) the
18board has received a written certification by at least 2
19licensed physicians appointed by it stating that the officer is
20disabled and that the disability is likely to be permanent.
21    (d) Refunds of additional optional contributions shall be
22made on the same basis and under the same conditions as
23provided under Section 7-166, 7-167 and 7-168. Interest shall
24be credited at the effective rate on the same basis and under
25the same conditions as for other contributions.
26    If an elected county officer fails to hold that same

 

 

09700SB1831ham001- 48 -LRB097 08644 JDS 56114 a

1elected county office for at least 8 years, he or she shall be
2entitled after leaving office to receive a refund of the
3additional optional contributions made with respect to that
4office, plus interest at the effective rate.
5    (e) The plan of optional alternative benefits and
6contributions shall be available to persons who are elected
7county officers and active contributors to the Fund on or after
8November 15, 1994 and elected to establish alternative credit
9before the effective date of this amendatory Act of the 97th
10General Assembly. A person who was an elected county officer
11and an active contributor to the Fund on November 15, 1994 but
12is no longer an active contributor may apply to make additional
13optional contributions under this Section at any time within 90
14days after the effective date of this amendatory Act of 1997;
15if the person is an annuitant, the resulting increase in
16annuity shall begin to accrue on the first day of the month
17following the month in which the required payment is received
18by the Fund.
19    (f) For the purposes of this Section and Section 7-145.2,
20the terms "elected county officer" and "elected county office"
21include, but are not limited to: (1) the county clerk,
22recorder, treasurer, coroner, assessor (if elected), auditor,
23sheriff, and State's Attorney; members of the county board; and
24the clerk of the circuit court; and (2) a person who has been
25appointed to fill a vacancy in an office that is normally
26filled by election on a countywide basis, for the duration of

 

 

09700SB1831ham001- 49 -LRB097 08644 JDS 56114 a

1his or her service in that office. The terms "elected county
2officer" and "elected county office" do not include any officer
3or office of a county that has not consented to the
4availability of benefits under this Section and Section
57-145.2.
6    (g) For the purposes of this Section and Section 7-145.2,
7the term "salary" means the final rate of earnings for the
8elected county office held, calculated in a manner consistent
9with Section 7-116, but for that office only. If an elected
10county officer qualifies to have the formula in subsection (b)
11applied to service in more than one elected county office, a
12separate salary shall be calculated and applied with respect to
13each such office.
14    (h) The changes to this Section made by this amendatory Act
15of the 91st General Assembly apply to persons who first make an
16additional optional contribution under this Section on or after
17the effective date of this amendatory Act.
18    (i) Any elected county officer who was entitled to receive
19a stipend from the State on or after July 1, 2009 and on or
20before June 30, 2010 may establish earnings credit for the
21amount of stipend not received, if the elected county official
22applies in writing to the fund within 6 months after the
23effective date of this amendatory Act of the 96th General
24Assembly and pays to the fund an amount equal to (i) employee
25contributions on the amount of stipend not received, (ii)
26employer contributions determined by the Board equal to the

 

 

09700SB1831ham001- 50 -LRB097 08644 JDS 56114 a

1employer's normal cost of the benefit on the amount of stipend
2not received, plus (iii) interest on items (i) and (ii) at the
3actuarially assumed rate.
4(Source: P.A. 96-961, eff. 7-2-10.)
 
5    (40 ILCS 5/7-172)  (from Ch. 108 1/2, par. 7-172)
6    Sec. 7-172. Contributions by participating municipalities
7and participating instrumentalities.
8    (a) Each participating municipality and each participating
9instrumentality shall make payment to the fund as follows:
10        1. municipality contributions in an amount determined
11    by applying the municipality contribution rate to each
12    payment of earnings paid to each of its participating
13    employees;
14        2. an amount equal to the employee contributions
15    provided by paragraphs (a) and (b) of Section 7-173,
16    whether or not the employee contributions are withheld as
17    permitted by that Section;
18        3. all accounts receivable, together with interest
19    charged thereon, as provided in Section 7-209;
20        4. if it has no participating employees with current
21    earnings, an amount payable which, over a closed period of
22    20 years for participating municipalities and 10 years for
23    participating instrumentalities, will amortize, at the
24    effective rate for that year, any unfunded obligation. The
25    unfunded obligation shall be computed as provided in

 

 

09700SB1831ham001- 51 -LRB097 08644 JDS 56114 a

1    paragraph 2 of subsection (b);
2        5. if it has fewer than 7 participating employees or a
3    negative balance in its municipality reserve, the greater
4    of (A) an amount payable that, over a period of 20 years,
5    will amortize at the effective rate for that year any
6    unfunded obligation, computed as provided in paragraph 2 of
7    subsection (b) or (B) the amount required by paragraph 1 of
8    this subsection (a).
9    (b) A separate municipality contribution rate shall be
10determined for each calendar year for all participating
11municipalities together with all instrumentalities thereof.
12The municipality contribution rate shall be determined for
13participating instrumentalities as if they were participating
14municipalities. The municipality contribution rate shall be
15the sum of the following percentages:
16        1. The percentage of earnings of all the participating
17    employees of all participating municipalities and
18    participating instrumentalities which, if paid over the
19    entire period of their service, will be sufficient when
20    combined with all employee contributions available for the
21    payment of benefits, to provide all annuities for
22    participating employees, and the $3,000 death benefit
23    payable under Sections 7-158 and 7-164, such percentage to
24    be known as the normal cost rate.
25        2. The percentage of earnings of the participating
26    employees of each participating municipality and

 

 

09700SB1831ham001- 52 -LRB097 08644 JDS 56114 a

1    participating instrumentalities necessary to adjust for
2    the difference between the present value of all benefits,
3    excluding temporary and total and permanent disability and
4    death benefits, to be provided for its participating
5    employees and the sum of its accumulated municipality
6    contributions and the accumulated employee contributions
7    and the present value of expected future employee and
8    municipality contributions pursuant to subparagraph 1 of
9    this paragraph (b). This adjustment shall be spread over
10    the remainder of the period that is allowable under
11    generally accepted accounting principles.
12        3. The percentage of earnings of the participating
13    employees of all municipalities and participating
14    instrumentalities necessary to provide the present value
15    of all temporary and total and permanent disability
16    benefits granted during the most recent year for which
17    information is available.
18        4. The percentage of earnings of the participating
19    employees of all participating municipalities and
20    participating instrumentalities necessary to provide the
21    present value of the net single sum death benefits expected
22    to become payable from the reserve established under
23    Section 7-206 during the year for which this rate is fixed.
24        5. The percentage of earnings necessary to meet any
25    deficiency arising in the Terminated Municipality Reserve.
26    (c) A separate municipality contribution rate shall be

 

 

09700SB1831ham001- 53 -LRB097 08644 JDS 56114 a

1computed for each participating municipality or participating
2instrumentality for its sheriff's law enforcement employees.
3    A separate municipality contribution rate shall be
4computed for the sheriff's law enforcement employees of each
5forest preserve district that elects to have such employees.
6For the period from January 1, 1986 to December 31, 1986, such
7rate shall be the forest preserve district's regular rate plus
82%.
9    In the event that the Board determines that there is an
10actuarial deficiency in the account of any municipality with
11respect to a person who has elected to participate in the Fund
12under Section 3-109.1 of this Code, the Board may adjust the
13municipality's contribution rate so as to make up that
14deficiency over such reasonable period of time as the Board may
15determine.
16    (d) The Board may establish a separate municipality
17contribution rate for all employees who are program
18participants employed under the federal Comprehensive
19Employment Training Act by all of the participating
20municipalities and instrumentalities. The Board may also
21provide that, in lieu of a separate municipality rate for these
22employees, a portion of the municipality contributions for such
23program participants shall be refunded or an extra charge
24assessed so that the amount of municipality contributions
25retained or received by the fund for all CETA program
26participants shall be an amount equal to that which would be

 

 

09700SB1831ham001- 54 -LRB097 08644 JDS 56114 a

1provided by the separate municipality contribution rate for all
2such program participants. Refunds shall be made to prime
3sponsors of programs upon submission of a claim therefor and
4extra charges shall be assessed to participating
5municipalities and instrumentalities. In establishing the
6municipality contribution rate as provided in paragraph (b) of
7this Section, the use of a separate municipality contribution
8rate for program participants or the refund of a portion of the
9municipality contributions, as the case may be, may be
10considered.
11    (e) Computations of municipality contribution rates for
12the following calendar year shall be made prior to the
13beginning of each year, from the information available at the
14time the computations are made, and on the assumption that the
15employees in each participating municipality or participating
16instrumentality at such time will continue in service until the
17end of such calendar year at their respective rates of earnings
18at such time.
19    (f) Any municipality which is the recipient of State
20allocations representing that municipality's contributions for
21retirement annuity purposes on behalf of its employees as
22provided in Section 12-21.16 of the Illinois Public Aid Code
23shall pay the allocations so received to the Board for such
24purpose. Estimates of State allocations to be received during
25any taxable year shall be considered in the determination of
26the municipality's tax rate for that year under Section 7-171.

 

 

09700SB1831ham001- 55 -LRB097 08644 JDS 56114 a

1If a special tax is levied under Section 7-171, none of the
2proceeds may be used to reimburse the municipality for the
3amount of State allocations received and paid to the Board. Any
4multiple-county or consolidated health department which
5receives contributions from a county under Section 11.2 of "An
6Act in relation to establishment and maintenance of county and
7multiple-county health departments", approved July 9, 1943, as
8amended, or distributions under Section 3 of the Department of
9Public Health Act, shall use these only for municipality
10contributions by the health department.
11    (g) Municipality contributions for the several purposes
12specified shall, for township treasurers and employees in the
13offices of the township treasurers who meet the qualifying
14conditions for coverage hereunder, be allocated among the
15several school districts and parts of school districts serviced
16by such treasurers and employees in the proportion which the
17amount of school funds of each district or part of a district
18handled by the treasurer bears to the total amount of all
19school funds handled by the treasurer.
20    From the funds subject to allocation among districts and
21parts of districts pursuant to the School Code, the trustees
22shall withhold the proportionate share of the liability for
23municipality contributions imposed upon such districts by this
24Section, in respect to such township treasurers and employees
25and remit the same to the Board.
26    The municipality contribution rate for an educational

 

 

09700SB1831ham001- 56 -LRB097 08644 JDS 56114 a

1service center shall initially be the same rate for each year
2as the regional office of education or school district which
3serves as its administrative agent. When actuarial data become
4available, a separate rate shall be established as provided in
5subparagraph (i) of this Section.
6    The municipality contribution rate for a public agency,
7other than a vocational education cooperative, formed under the
8Intergovernmental Cooperation Act shall initially be the
9average rate for the municipalities which are parties to the
10intergovernmental agreement. When actuarial data become
11available, a separate rate shall be established as provided in
12subparagraph (i) of this Section.
13    (h) Each participating municipality and participating
14instrumentality shall make the contributions in the amounts
15provided in this Section in the manner prescribed from time to
16time by the Board and all such contributions shall be
17obligations of the respective participating municipalities and
18participating instrumentalities to this fund. The failure to
19deduct any employee contributions shall not relieve the
20participating municipality or participating instrumentality of
21its obligation to this fund. Delinquent payments of
22contributions due under this Section may, with interest, be
23recovered by civil action against the participating
24municipalities or participating instrumentalities.
25Municipality contributions, other than the amount necessary
26for employee contributions and Social Security contributions,

 

 

09700SB1831ham001- 57 -LRB097 08644 JDS 56114 a

1for periods of service by employees from whose earnings no
2deductions were made for employee contributions to the fund,
3may be charged to the municipality reserve for the municipality
4or participating instrumentality.
5    (i) Contributions by participating instrumentalities shall
6be determined as provided herein except that the percentage
7derived under subparagraph 2 of paragraph (b) of this Section,
8and the amount payable under subparagraph 4 of paragraph (a) of
9this Section, shall be based on an amortization period of 10
10years.
11    (j) Notwithstanding the other provisions of this Section,
12the additional unfunded liability accruing as a result of this
13amendatory Act of the 94th General Assembly shall be amortized
14over a period of 30 years beginning on January 1 of the second
15calendar year following the calendar year in which this
16amendatory Act takes effect, except that the employer may
17provide for a longer amortization period by adopting a
18resolution or ordinance specifying a 35-year or 40-year period
19and submitting a certified copy of the ordinance or resolution
20to the fund no later than June 1 of the calendar year following
21the calendar year in which this amendatory Act takes effect.
22    (k) If the amount of a participating employee's reported
23earnings for any of the 12-month periods used to determine the
24final rate of earnings exceeds the employee's 12 month reported
25earnings with the same employer for the previous year by the
26greater of 6% or 1.5 times the annual increase in the Consumer

 

 

09700SB1831ham001- 58 -LRB097 08644 JDS 56114 a

1Price Index-U, as established by the United States Department
2of Labor for the preceding September, the participating
3municipality or participating instrumentality that paid those
4earnings shall pay to the Fund, in addition to any other
5contributions required under this Article, the present value of
6the increase in the pension resulting from the portion of the
7increase in salary that is in excess of the greater of 6% or
81.5 times the annual increase in the Consumer Price Index-U, as
9determined by the Fund. This present value shall be computed on
10the basis of the actuarial assumptions and tables used in the
11most recent actuarial valuation of the Fund that is available
12at the time of the computation.
13    Whenever it determines that a payment is or may be required
14under this subsection (k), the fund shall calculate the amount
15of the payment and bill the participating municipality or
16participating instrumentality for that amount. The bill shall
17specify the calculations used to determine the amount due. If
18the participating municipality or participating
19instrumentality disputes the amount of the bill, it may, within
2030 days after receipt of the bill, apply to the fund in writing
21for a recalculation. The application must specify in detail the
22grounds of the dispute. Upon receiving a timely application for
23recalculation, the fund shall review the application and, if
24appropriate, recalculate the amount due. The participating
25municipality and participating instrumentality contributions
26required under this subsection (k) may be paid in the form of a

 

 

09700SB1831ham001- 59 -LRB097 08644 JDS 56114 a

1lump sum within 90 days after receipt of the bill. If the
2participating municipality and participating instrumentality
3contributions are not paid within 90 days after receipt of the
4bill, then interest will be charged at a rate equal to the
5fund's annual actuarially assumed rate of return on investment
6compounded annually from the 91st day after receipt of the
7bill. Payments must be concluded within 3 years after receipt
8of the bill by the participating municipality or participating
9instrumentality.
10    When assessing payment for any amount due under this
11subsection (k), the fund shall exclude earnings increases
12resulting from overload or overtime earnings.
13    When assessing payment for any amount due under this
14subsection (k), the fund shall also exclude earnings increases
15attributable to standard employment promotions resulting in
16increased responsibility and workload.
17    This subsection (k) does not apply to earnings increases
18paid to individuals under contracts or collective bargaining
19agreements entered into, amended, or renewed before the
20effective date of this amendatory Act of the 97th General
21Assembly, earnings increases paid to members who are 10 years
22or more from retirement eligibility, or earnings increases
23resulting from an increase in the number of hours required to
24be worked.
25    When assessing payment for any amount due under this
26subsection (k), the fund shall also exclude earnings

 

 

09700SB1831ham001- 60 -LRB097 08644 JDS 56114 a

1attributable to personnel policies adopted before the
2effective date of this amendatory Act of the 97th General
3Assembly as long as those policies are not applicable to
4employees who begin service on or after the effective date of
5this amendatory Act of the 97th General Assembly.
6(Source: P.A. 96-1084, eff. 7-16-10; 96-1140, eff. 7-21-10;
7revised 9-16-10.)
 
8    (40 ILCS 5/7-199.4 new)
9    Sec. 7-199.4. To accept transfer of reserves and investment
10functions from funds established under Articles 3 and 4. To
11accept the transfer of the reserves and the control and
12management of the investment function from the board of
13trustees of any fund electing such a transfer under Section
143-140.2 or 4-129.2. Notwithstanding any other provision of this
15Code, after such transfer, the reserves shall be invested with
16and subject to the same rules as the reserves of the fund
17established under this Article.
18    The board established under this Article shall establish
19such rules and regulations as are necessary to administer this
20transfer and the investment of the reserves of the funds
21electing the transfer and the recovery of the associated costs
22of investing these reserves.
 
23    (40 ILCS 5/7-205)  (from Ch. 108 1/2, par. 7-205)
24    Sec. 7-205. Reserves for annuities. Appropriate reserves

 

 

09700SB1831ham001- 61 -LRB097 08644 JDS 56114 a

1shall be created for payment of all annuities granted under
2this Article at the time such annuities are granted and in
3amounts determined to be necessary under actuarial tables
4adopted by the Board upon recommendation of the actuary of the
5fund. All annuities payable shall be charged to the annuity
6reserve.
7    1. Amounts credited to annuity reserves shall be derived by
8transfer of all the employee credits from the appropriate
9employee reserves and by charges to the municipality reserve of
10those municipalities in which the retiring employee has
11accumulated service. If a retiring employee has accumulated
12service in more than one participating municipality or
13participating instrumentality, the aggregate municipality
14charges for non-concurrent service shall be calculated as
15follows:
16        (A) for purposes of calculating the annuity reserve, an
17    annuity will be calculated based on service and adjusted
18    earnings with each employer (without regard to the vesting
19    requirement contained in subsection (a) of Section 7-142);
20    and
21        (B) the difference between the municipality charges
22    for the actual annuity granted and the aggregation of the
23    municipality charges based upon the ratio of each from
24    those calculations to the aggregated total from paragraph
25    (A) of this item 1.
26    Aggregate municipality charges for concurrent service

 

 

09700SB1831ham001- 62 -LRB097 08644 JDS 56114 a

1shall be prorated based on the employee's earnings. The
2municipality charges for retirement annuities calculated under
3subparagraph a. of paragraph 1. of subsection (a) of Section
47-142 shall be prorated based on actual contributions prorated
5on a basis of the employee's earnings in case of concurrent
6service and creditable service in other cases.
7    2. Supplemental annuities shall be handled as a separate
8annuity and amounts to be credited to the annuity reserve
9therefor shall be derived in the same manner as a regular
10annuity.
11    3. When a retirement annuity is granted to an employee with
12a spouse eligible for a surviving spouse annuity, there shall
13be credited to the annuity reserve an amount to fund the cost
14of both the retirement and surviving spouse annuity as a joint
15and survivors annuity.
16    4. Beginning January 1, 1989, when a retirement annuity is
17awarded, an amount equal to the present value of the $3,000
18death benefit payable upon the death of the annuitant shall be
19transferred to the annuity reserve from the appropriate
20municipality reserves in the same manner as the transfer for
21annuities.
22    5. All annuity reserves shall be revalued annually as of
23December 31. Beginning as of December 31, 1973, adjustment
24required therein by such revaluation shall be charged or
25credited to the earnings and experience variation reserve.
26    6. There shall be credited to the annuity reserve all of

 

 

09700SB1831ham001- 63 -LRB097 08644 JDS 56114 a

1the payments made by annuitants under Section 7-144.2, plus an
2additional amount from the earnings and experience variation
3reserve to fund the cost of the incremental annuities granted
4to annuitants making these payments.
5    7. As of December 31, 1972, the excess in the annuity
6reserve shall be transferred to the municipality reserves. An
7amount equal to the deficiency in the reserve of participating
8municipalities and participating instrumentalities which have
9no participating employees shall be allocated to their
10reserves. The remainder shall be allocated in amounts
11proportionate to the present value, as of January 1, 1972, of
12annuities of annuitants of the remaining participating
13municipalities and participating instrumentalities.
14(Source: P.A. 89-136, eff. 7-14-95.)
 
15    (40 ILCS 5/7-225 new)
16    Sec. 7-225. Increases in earnings; pension impact
17statement. Before increasing the earnings of an officer,
18executive, or manager by 12% or more:
19        (1) the authorities of the respective employer who are
20    authorizing the increase must contact the Illinois
21    Municipal Retirement Fund as to the effect of that increase
22    in salary on the pension benefits of that participant;
23        (2) the Illinois Municipal Retirement Fund must
24    respond with a written "Pension Impact Statement" stating
25    the effect of that increase in salary on the pension

 

 

09700SB1831ham001- 64 -LRB097 08644 JDS 56114 a

1    benefits of that participant, and any other relevant effect
2    of the increase, including payment of the present value of
3    the increase in benefits resulting from the portion of any
4    increase in salary that is in excess of 6% as provided
5    under subsection (k) of Section 7-172, if applicable;
6        (3) the authorities authorizing this increase must
7    sign the pension impact statement, acknowledging receipt
8    and understanding of the effects of the increase; and
9        (4) the employer must pay the costs associated with the
10    pension impact statement.
11    The provisions of this Section do not apply to any of the
12following: increases attributable to standard employment
13promotions resulting in increased responsibility and
14workloads; earnings increases paid to individuals under
15contracts or collective bargaining agreements entered into,
16amended, or renewed before January 1, 2012; earnings increases
17paid to members who are 10 years or more from retirement
18eligibility; or earnings increases resulting from an increase
19in the number of hours required to be worked.
 
20    (40 ILCS 5/14-103.05)  (from Ch. 108 1/2, par. 14-103.05)
21    Sec. 14-103.05. Employee.
22    (a) Any person employed by a Department who receives salary
23for personal services rendered to the Department on a warrant
24issued pursuant to a payroll voucher certified by a Department
25and drawn by the State Comptroller upon the State Treasurer,

 

 

09700SB1831ham001- 65 -LRB097 08644 JDS 56114 a

1including an elected official described in subparagraph (d) of
2Section 14-104, shall become an employee for purpose of
3membership in the Retirement System on the first day of such
4employment.
5    A person entering service on or after January 1, 1972 and
6prior to January 1, 1984 shall become a member as a condition
7of employment and shall begin making contributions as of the
8first day of employment.
9    A person entering service on or after January 1, 1984
10shall, upon completion of 6 months of continuous service which
11is not interrupted by a break of more than 2 months, become a
12member as a condition of employment. Contributions shall begin
13the first of the month after completion of the qualifying
14period.
15    A person employed by the Chicago Metropolitan Agency for
16Planning on the effective date of this amendatory Act of the
1795th General Assembly who was a member of this System as an
18employee of the Chicago Area Transportation Study and makes an
19election under Section 14-104.13 to participate in this System
20for his or her employment with the Chicago Metropolitan Agency
21for Planning.
22    The qualifying period of 6 months of service is not
23applicable to: (1) a person who has been granted credit for
24service in a position covered by the State Universities
25Retirement System, the Teachers' Retirement System of the State
26of Illinois, the General Assembly Retirement System, or the

 

 

09700SB1831ham001- 66 -LRB097 08644 JDS 56114 a

1Judges Retirement System of Illinois unless that service has
2been forfeited under the laws of those systems; (2) a person
3entering service on or after July 1, 1991 in a noncovered
4position; (3) a person to whom Section 14-108.2a or 14-108.2b
5applies; or (4) a person to whom subsection (a-5) of this
6Section applies.
7    (a-5) A person entering service on or after December 1,
82010 shall become a member as a condition of employment and
9shall begin making contributions as of the first day of
10employment. A person serving in the qualifying period on
11December 1, 2010 will become a member on December 1, 2010 and
12shall begin making contributions as of December 1, 2010.
13    (b) The term "employee" does not include the following:
14        (1) members of the State Legislature, and persons
15    electing to become members of the General Assembly
16    Retirement System pursuant to Section 2-105;
17        (2) incumbents of offices normally filled by vote of
18    the people;
19        (3) except as otherwise provided in this Section, any
20    person appointed by the Governor with the advice and
21    consent of the Senate unless that person elects to
22    participate in this system;
23        (3.1) any person serving as a commissioner of an ethics
24    commission created under the State Officials and Employees
25    Ethics Act unless that person elects to participate in this
26    system with respect to that service as a commissioner;

 

 

09700SB1831ham001- 67 -LRB097 08644 JDS 56114 a

1        (3.2) any person serving as a part-time employee in any
2    of the following positions: Legislative Inspector General,
3    Special Legislative Inspector General, employee of the
4    Office of the Legislative Inspector General, Executive
5    Director of the Legislative Ethics Commission, or staff of
6    the Legislative Ethics Commission, regardless of whether
7    he or she is in active service on or after July 8, 2004
8    (the effective date of Public Act 93-685), unless that
9    person elects to participate in this System with respect to
10    that service; in this item (3.2), a "part-time employee" is
11    a person who is not required to work at least 35 hours per
12    week;
13        (3.3) any person who has made an election under Section
14    1-123 and who is serving either as legal counsel in the
15    Office of the Governor or as Chief Deputy Attorney General;
16        (4) except as provided in Section 14-108.2 or
17    14-108.2c, any person who is covered or eligible to be
18    covered by the Teachers' Retirement System of the State of
19    Illinois, the State Universities Retirement System, or the
20    Judges Retirement System of Illinois;
21        (5) an employee of a municipality or any other
22    political subdivision of the State;
23        (6) any person who becomes an employee after June 30,
24    1979 as a public service employment program participant
25    under the Federal Comprehensive Employment and Training
26    Act and whose wages or fringe benefits are paid in whole or

 

 

09700SB1831ham001- 68 -LRB097 08644 JDS 56114 a

1    in part by funds provided under such Act;
2        (7) enrollees of the Illinois Young Adult Conservation
3    Corps program, administered by the Department of Natural
4    Resources, authorized grantee pursuant to Title VIII of the
5    "Comprehensive Employment and Training Act of 1973", 29 USC
6    993, as now or hereafter amended;
7        (8) enrollees and temporary staff of programs
8    administered by the Department of Natural Resources under
9    the Youth Conservation Corps Act of 1970;
10        (9) any person who is a member of any professional
11    licensing or disciplinary board created under an Act
12    administered by the Department of Professional Regulation
13    or a successor agency or created or re-created after the
14    effective date of this amendatory Act of 1997, and who
15    receives per diem compensation rather than a salary,
16    notwithstanding that such per diem compensation is paid by
17    warrant issued pursuant to a payroll voucher; such persons
18    have never been included in the membership of this System,
19    and this amendatory Act of 1987 (P.A. 84-1472) is not
20    intended to effect any change in the status of such
21    persons;
22        (10) any person who is a member of the Illinois Health
23    Care Cost Containment Council, and receives per diem
24    compensation rather than a salary, notwithstanding that
25    such per diem compensation is paid by warrant issued
26    pursuant to a payroll voucher; such persons have never been

 

 

09700SB1831ham001- 69 -LRB097 08644 JDS 56114 a

1    included in the membership of this System, and this
2    amendatory Act of 1987 is not intended to effect any change
3    in the status of such persons;
4        (11) any person who is a member of the Oil and Gas
5    Board created by Section 1.2 of the Illinois Oil and Gas
6    Act, and receives per diem compensation rather than a
7    salary, notwithstanding that such per diem compensation is
8    paid by warrant issued pursuant to a payroll voucher; or
9        (12) a person employed by the State Board of Higher
10    Education in a position with the Illinois Century Network
11    as of June 30, 2004, who remains continuously employed
12    after that date by the Department of Central Management
13    Services in a position with the Illinois Century Network
14    and participates in the Article 15 system with respect to
15    that employment; .
16        (13) any person who first becomes a member of the Civil
17    Service Commission on or after January 1, 2012;
18        (14) any person, other than the Director of Employment
19    Security, who first becomes a member of the Board of Review
20    of the Department of Employment Security on or after
21    January 1, 2012;
22        (15) any person who first becomes a member of the Civil
23    Service Commission on or after January 1, 2012;
24        (16) any person who first becomes a member of the
25    Illinois Liquor Control Commission on or after January 1,
26    2012;

 

 

09700SB1831ham001- 70 -LRB097 08644 JDS 56114 a

1        (17) any person who first becomes a member of the
2    Secretary of State Merit Commission on or after January 1,
3    2012;
4        (18) any person who first becomes a member of the Human
5    Rights Commission on or after January 1, 2012;
6        (19) any person who first becomes a member of the State
7    Mining Board on or after January 1, 2012;
8        (20) any person who first becomes a member of the
9    Property Tax Appeal Board on or after January 1, 2012;
10        (21) any person who first becomes a member of the
11    Illinois Racing Board on or after January 1, 2012;
12        (22) any person who first becomes a member of the
13    Department of State Police Merit Board on or after January
14    1, 2012;
15        (23) any person who first becomes a member of the
16    Illinois State Toll Highway Authority on or after January
17    1, 2012; or
18        (24) any person who first becomes a member of the
19    Illinois State Board of Elections on or after January 1,
20    2012.
21    (c) An individual who represents or is employed as an
22officer or employee of a statewide labor organization that
23represents members of this System may participate in the System
24and shall be deemed an employee, provided that (1) the
25individual has previously earned creditable service under this
26Article, (2) the individual files with the System an

 

 

09700SB1831ham001- 71 -LRB097 08644 JDS 56114 a

1irrevocable election to become a participant within 6 months
2after the effective date of this amendatory Act of the 94th
3General Assembly, and (3) the individual does not receive
4credit for that employment under any other provisions of this
5Code. An employee under this subsection (c) is responsible for
6paying to the System both (i) employee contributions based on
7the actual compensation received for service with the labor
8organization and (ii) employer contributions based on the
9percentage of payroll certified by the board; all or any part
10of these contributions may be paid on the employee's behalf or
11picked up for tax purposes (if authorized under federal law) by
12the labor organization.
13    A person who is an employee as defined in this subsection
14(c) may establish service credit for similar employment prior
15to becoming an employee under this subsection by paying to the
16System for that employment the contributions specified in this
17subsection, plus interest at the effective rate from the date
18of service to the date of payment. However, credit shall not be
19granted under this subsection (c) for any such prior employment
20for which the applicant received credit under any other
21provision of this Code or during which the applicant was on a
22leave of absence.
23(Source: P.A. 95-677, eff. 10-11-07; 96-1490, eff. 1-1-11.)
 
24    (40 ILCS 5/22-101)  (from Ch. 108 1/2, par. 22-101)
25    Sec. 22-101. Retirement Plan for Chicago Transit Authority

 

 

09700SB1831ham001- 72 -LRB097 08644 JDS 56114 a

1Employees.
2    (a) There shall be established and maintained by the
3Authority created by the "Metropolitan Transit Authority Act",
4approved April 12, 1945, as amended, (referred to in this
5Section as the "Authority") a financially sound pension and
6retirement system adequate to provide for all payments when due
7under such established system or as modified from time to time
8by ordinance of the Chicago Transit Board or collective
9bargaining agreement. For this purpose, the Board must make
10contributions to the established system as required under this
11Section and may make any additional contributions provided for
12by Board ordinance or collective bargaining agreement. The
13participating employees shall make such periodic payments to
14the established system as required under this Section and may
15make any additional contributions provided for by Board
16ordinance or collective bargaining agreement.
17    Provisions shall be made by the Board for all officers,
18except those who first become members on or after January 1,
192012, and employees of the Authority appointed pursuant to the
20"Metropolitan Transit Authority Act" to become, subject to
21reasonable rules and regulations, participants of the pension
22or retirement system with uniform rights, privileges,
23obligations and status as to the class in which such officers
24and employees belong. The terms, conditions and provisions of
25any pension or retirement system or of any amendment or
26modification thereof affecting employees who are members of any

 

 

09700SB1831ham001- 73 -LRB097 08644 JDS 56114 a

1labor organization may be established, amended or modified by
2agreement with such labor organization, provided the terms,
3conditions and provisions must be consistent with this Act, the
4annual funding levels for the retirement system established by
5law must be met and the benefits paid to future participants in
6the system may not exceed the benefit ceilings set for future
7participants under this Act and the contribution levels
8required by the Authority and its employees may not be less
9than the contribution levels established under this Act.
10    (b) The Board of Trustees shall consist of 11 members
11appointed as follows: (i) 5 trustees shall be appointed by the
12Chicago Transit Board; (ii) 3 trustees shall be appointed by an
13organization representing the highest number of Chicago
14Transit Authority participants; (iii) one trustee shall be
15appointed by an organization representing the second-highest
16number of Chicago Transit Authority participants; (iv) one
17trustee shall be appointed by the recognized coalition
18representatives of participants who are not represented by an
19organization with the highest or second-highest number of
20Chicago Transit Authority participants; and (v) one trustee
21shall be selected by the Regional Transportation Authority
22Board of Directors, and the trustee shall be a professional
23fiduciary who has experience in the area of collectively
24bargained pension plans. Trustees shall serve until a successor
25has been appointed and qualified, or until resignation, death,
26incapacity, or disqualification.

 

 

09700SB1831ham001- 74 -LRB097 08644 JDS 56114 a

1    Any person appointed as a trustee of the board shall
2qualify by taking an oath of office that he or she will
3diligently and honestly administer the affairs of the system
4and will not knowingly violate or willfully permit the
5violation of any of the provisions of law applicable to the
6Plan, including Sections 1-109, 1-109.1, 1-109.2, 1-110,
71-111, 1-114, and 1-115 of the Illinois Pension Code.
8    Each trustee shall cast individual votes, and a majority
9vote shall be final and binding upon all interested parties,
10provided that the Board of Trustees may require a supermajority
11vote with respect to the investment of the assets of the
12Retirement Plan, and may set forth that requirement in the
13Retirement Plan documents, by-laws, or rules of the Board of
14Trustees. Each trustee shall have the rights, privileges,
15authority, and obligations as are usual and customary for such
16fiduciaries.
17    The Board of Trustees may cause amounts on deposit in the
18Retirement Plan to be invested in those investments that are
19permitted investments for the investment of moneys held under
20any one or more of the pension or retirement systems of the
21State, any unit of local government or school district, or any
22agency or instrumentality thereof. The Board, by a vote of at
23least two-thirds of the trustees, may transfer investment
24management to the Illinois State Board of Investment, which is
25hereby authorized to manage these investments when so requested
26by the Board of Trustees.

 

 

09700SB1831ham001- 75 -LRB097 08644 JDS 56114 a

1    Notwithstanding any other provision of this Article or any
2law to the contrary, any person who first becomes a member of
3the Chicago Transit Board on or after January 1, 2012 shall not
4be eligible to participate in this Retirement Plan.
5    (c) All individuals who were previously participants in the
6Retirement Plan for Chicago Transit Authority Employees shall
7remain participants, and shall receive the same benefits
8established by the Retirement Plan for Chicago Transit
9Authority Employees, except as provided in this amendatory Act
10or by subsequent legislative enactment or amendment to the
11Retirement Plan. For Authority employees hired on or after the
12effective date of this amendatory Act of the 95th General
13Assembly, the Retirement Plan for Chicago Transit Authority
14Employees shall be the exclusive retirement plan and such
15employees shall not be eligible for any supplemental plan,
16except for a deferred compensation plan funded only by employee
17contributions.
18    For all Authority employees who are first hired on or after
19the effective date of this amendatory Act of the 95th General
20Assembly and are participants in the Retirement Plan for
21Chicago Transit Authority Employees, the following terms,
22conditions and provisions with respect to retirement shall be
23applicable:
24        (1) Such participant shall be eligible for an unreduced
25    retirement allowance for life upon the attainment of age 64
26    with 25 years of continuous service.

 

 

09700SB1831ham001- 76 -LRB097 08644 JDS 56114 a

1        (2) Such participant shall be eligible for a reduced
2    retirement allowance for life upon the attainment of age 55
3    with 10 years of continuous service.
4        (3) For the purpose of determining the retirement
5    allowance to be paid to a retiring employee, the term
6    "Continuous Service" as used in the Retirement Plan for
7    Chicago Transit Authority Employees shall also be deemed to
8    include all pension credit for service with any retirement
9    system established under Article 8 or Article 11 of this
10    Code, provided that the employee forfeits and relinquishes
11    all pension credit under Article 8 or Article 11 of this
12    Code, and the contribution required under this subsection
13    is made by the employee. The Retirement Plan's actuary
14    shall determine the contribution paid by the employee as an
15    amount equal to the normal cost of the benefit accrued, had
16    the service been rendered as an employee, plus interest per
17    annum from the time such service was rendered until the
18    date the payment is made.
19    (d) From the effective date of this amendatory Act through
20December 31, 2008, all participating employees shall
21contribute to the Retirement Plan in an amount not less than 6%
22of compensation, and the Authority shall contribute to the
23Retirement Plan in an amount not less than 12% of compensation.
24    (e)(1) Beginning January 1, 2009 the Authority shall make
25contributions to the Retirement Plan in an amount equal to
26twelve percent (12%) of compensation and participating

 

 

09700SB1831ham001- 77 -LRB097 08644 JDS 56114 a

1employees shall make contributions to the Retirement Plan in an
2amount equal to six percent (6%) of compensation. These
3contributions may be paid by the Authority and participating
4employees on a payroll or other periodic basis, but shall in
5any case be paid to the Retirement Plan at least monthly.
6    (2) For the period ending December 31, 2040, the amount
7paid by the Authority in any year with respect to debt service
8on bonds issued for the purposes of funding a contribution to
9the Retirement Plan under Section 12c of the Metropolitan
10Transit Authority Act, other than debt service paid with the
11proceeds of bonds or notes issued by the Authority for any year
12after calendar year 2008, shall be treated as a credit against
13the amount of required contribution to the Retirement Plan by
14the Authority under subsection (e)(1) for the following year up
15to an amount not to exceed 6% of compensation paid by the
16Authority in that following year.
17    (3) By September 15 of each year beginning in 2009 and
18ending on December 31, 2039, on the basis of a report prepared
19by an enrolled actuary retained by the Plan, the Board of
20Trustees of the Retirement Plan shall determine the estimated
21funded ratio of the total assets of the Retirement Plan to its
22total actuarially determined liabilities. A report containing
23that determination and the actuarial assumptions on which it is
24based shall be filed with the Authority, the representatives of
25its participating employees, the Auditor General of the State
26of Illinois, and the Regional Transportation Authority. If the

 

 

09700SB1831ham001- 78 -LRB097 08644 JDS 56114 a

1funded ratio is projected to decline below 60% in any year
2before 2040, the Board of Trustees shall also determine the
3increased contribution required each year as a level percentage
4of payroll over the years remaining until 2040 using the
5projected unit credit actuarial cost method so the funded ratio
6does not decline below 60% and include that determination in
7its report. If the actual funded ratio declines below 60% in
8any year prior to 2040, the Board of Trustees shall also
9determine the increased contribution required each year as a
10level percentage of payroll during the years after the then
11current year using the projected unit credit actuarial cost
12method so the funded ratio is projected to reach at least 60%
13no later than 10 years after the then current year and include
14that determination in its report. Within 60 days after
15receiving the report, the Auditor General shall review the
16determination and the assumptions on which it is based, and if
17he finds that the determination and the assumptions on which it
18is based are unreasonable in the aggregate, he shall issue a
19new determination of the funded ratio, the assumptions on which
20it is based and the increased contribution required each year
21as a level percentage of payroll over the years remaining until
222040 using the projected unit credit actuarial cost method so
23the funded ratio does not decline below 60%, or, in the event
24of an actual decline below 60%, so the funded ratio is
25projected to reach 60% by no later than 10 years after the then
26current year. If the Board of Trustees or the Auditor General

 

 

09700SB1831ham001- 79 -LRB097 08644 JDS 56114 a

1determine that an increased contribution is required to meet
2the funded ratio required by the subsection, effective January
31 following the determination or 30 days after such
4determination, whichever is later, one-third of the increased
5contribution shall be paid by participating employees and
6two-thirds by the Authority, in addition to the contributions
7required by this subsection (1).
8    (4) For the period beginning 2040, the minimum contribution
9to the Retirement Plan for each fiscal year shall be an amount
10determined by the Board of Trustees of the Retirement Plan to
11be sufficient to bring the total assets of the Retirement Plan
12up to 90% of its total actuarial liabilities by the end of
132059. Participating employees shall be responsible for
14one-third of the required contribution and the Authority shall
15be responsible for two-thirds of the required contribution. In
16making these determinations, the Board of Trustees shall
17calculate the required contribution each year as a level
18percentage of payroll over the years remaining to and including
19fiscal year 2059 using the projected unit credit actuarial cost
20method. A report containing that determination and the
21actuarial assumptions on which it is based shall be filed by
22September 15 of each year with the Authority, the
23representatives of its participating employees, the Auditor
24General of the State of Illinois and the Regional
25Transportation Authority. If the funded ratio is projected to
26fail to reach 90% by December 31, 2059, the Board of Trustees

 

 

09700SB1831ham001- 80 -LRB097 08644 JDS 56114 a

1shall also determine the increased contribution required each
2year as a level percentage of payroll over the years remaining
3until December 31, 2059 using the projected unit credit
4actuarial cost method so the funded ratio will meet 90% by
5December 31, 2059 and include that determination in its report.
6Within 60 days after receiving the report, the Auditor General
7shall review the determination and the assumptions on which it
8is based and if he finds that the determination and the
9assumptions on which it is based are unreasonable in the
10aggregate, he shall issue a new determination of the funded
11ratio, the assumptions on which it is based and the increased
12contribution required each year as a level percentage of
13payroll over the years remaining until December 31, 2059 using
14the projected unit credit actuarial cost method so the funded
15ratio reaches no less than 90% by December 31, 2059. If the
16Board of Trustees or the Auditor General determine that an
17increased contribution is required to meet the funded ratio
18required by this subsection, effective January 1 following the
19determination or 30 days after such determination, whichever is
20later, one-third of the increased contribution shall be paid by
21participating employees and two-thirds by the Authority, in
22addition to the contributions required by subsection (e)(1).
23    (5) Beginning in 2060, the minimum contribution for each
24year shall be the amount needed to maintain the total assets of
25the Retirement Plan at 90% of the total actuarial liabilities
26of the Plan, and the contribution shall be funded two-thirds by

 

 

09700SB1831ham001- 81 -LRB097 08644 JDS 56114 a

1the Authority and one-third by the participating employees in
2accordance with this subsection.
3    (f) The Authority shall take the steps necessary to comply
4with Section 414(h)(2) of the Internal Revenue Code of 1986, as
5amended, to permit the pick-up of employee contributions under
6subsections (d) and (e) on a tax-deferred basis.
7    (g) The Board of Trustees shall certify to the Governor,
8the General Assembly, the Auditor General, the Board of the
9Regional Transportation Authority, and the Authority at least
1090 days prior to the end of each fiscal year the amount of the
11required contributions to the retirement system for the next
12retirement system fiscal year under this Section. The
13certification shall include a copy of the actuarial
14recommendations upon which it is based. In addition, copies of
15the certification shall be sent to the Commission on Government
16Forecasting and Accountability and the Mayor of Chicago.
17    (h)(1) As to an employee who first becomes entitled to a
18retirement allowance commencing on or after November 30, 1989,
19the retirement allowance shall be the amount determined in
20accordance with the following formula:
21        (A) One percent (1%) of his "Average Annual
22    Compensation in the highest four (4) completed Plan Years"
23    for each full year of continuous service from the date of
24    original employment to the effective date of the Plan; plus
25        (B) One and seventy-five hundredths percent (1.75%) of
26    his "Average Annual Compensation in the highest four (4)

 

 

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

 

 

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1    for each full year of continuous service from the date of
2    original employment to the effective date of the Plan; plus
3        (B) One and eighty-five hundredths percent (1.85%) of
4    his "Average Annual Compensation in the highest four (4)
5    completed Plan Years" for each year (including fractions
6    thereof to completed calendar months) of continuous
7    service as provided for in the Retirement Plan for Chicago
8    Transit Authority Employees.
9Provided, however that:
10    (4) As to an employee who first becomes entitled to a
11retirement allowance commencing on or after January 1, 2000,
12the retirement allowance shall be the amount determined in
13accordance with the following formula:
14        (A) One percent (1%) of his "Average Annual
15    Compensation in the highest four (4) completed Plan Years"
16    for each full year of continuous service from the date of
17    original employment to the effective date of the Plan; plus
18        (B) Two percent (2%) of his "Average Annual
19    Compensation in the highest four (4) completed Plan Years"
20    for each year (including fractions thereof to completed
21    calendar months) of continuous service as provided for in
22    the Retirement Plan for Chicago Transit Authority
23    Employees.
24Provided, however that:
25    (5) As to an employee who first becomes entitled to a
26retirement allowance commencing on or after January 1, 2001,

 

 

09700SB1831ham001- 84 -LRB097 08644 JDS 56114 a

1the retirement allowance shall be the amount determined in
2accordance with the following formula:
3        (A) One percent (1%) of his "Average Annual
4    Compensation in the highest four (4) completed Plan Years"
5    for each full year of continuous service from the date of
6    original employment to the effective date of the Plan; plus
7        (B) Two and fifteen hundredths percent (2.15%) of his
8    "Average Annual Compensation in the highest four (4)
9    completed Plan Years" for each year (including fractions
10    thereof to completed calendar months) of continuous
11    service as provided for in the Retirement Plan for Chicago
12    Transit Authority Employees.
13    The changes made by this amendatory Act of the 95th General
14Assembly, to the extent that they affect the rights or
15privileges of Authority employees that are currently the
16subject of collective bargaining, have been agreed to between
17the authorized representatives of these employees and of the
18Authority prior to enactment of this amendatory Act, as
19evidenced by a Memorandum of Understanding between these
20representatives that will be filed with the Secretary of State
21Index Department and designated as "95-GA-C05". The General
22Assembly finds and declares that those changes are consistent
23with 49 U.S.C. 5333(b) (also known as Section 13(c) of the
24Federal Transit Act) because of this agreement between
25authorized representatives of these employees and of the
26Authority, and that any future amendments to the provisions of

 

 

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1this amendatory Act of the 95th General Assembly, to the extent
2those amendments would affect the rights and privileges of
3Authority employees that are currently the subject of
4collective bargaining, would be consistent with 49 U.S.C.
55333(b) if and only if those amendments were agreed to between
6these authorized representatives prior to enactment.
7    (i) Early retirement incentive plan; funded ratio.
8        (1) Beginning on the effective date of this Section, no
9    early retirement incentive shall be offered to
10    participants of the Plan unless the Funded Ratio of the
11    Plan is at least 80% or more.
12        (2) For the purposes of this Section, the Funded Ratio
13    shall be the Adjusted Assets divided by the Actuarial
14    Accrued Liability developed in accordance with Statement
15    #25 promulgated by the Government Accounting Standards
16    Board and the actuarial assumptions described in the Plan.
17    The Adjusted Assets shall be calculated based on the
18    methodology described in the Plan.
19    (j) Nothing in this amendatory Act of the 95th General
20Assembly shall impair the rights or privileges of Authority
21employees under any other law.
22(Source: P.A. 94-839, eff. 6-6-06; 95-708, eff. 1-18-08.)
 
23    (40 ILCS 5/22-103)
24    Sec. 22-103. Regional Transportation Authority and related
25pension plans.

 

 

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

 

 

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

 

 

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1of the total additional employer contributions required under
2this subsection shall be determined: (i) in proportion to the
3amounts, if any, by which the respective contributing employers
4have failed to meet their contribution obligations under the
5terms of the affected pension plan; or (ii) if all of the
6contributing employers have met their contribution obligations
7under the terms of the affected pension plan, then in the same
8proportion as they are required to contribute under the terms
9of that plan. In the case of an affected pension plan that has
10only one contributing employer, that contributing employer is
11responsible for all of the additional employer contributions
12required under this subsection.
13    If an under-funded pension plan is determined to have
14achieved a funding ratio of at least 90% during the period when
15an amortization schedule is in force under this Section, the
16contributing employers and the trustee of the affected pension
17plan, acting jointly, may cancel the amortization schedule and
18the contributing employers may cease making additional
19contributions under this subsection for as long as the affected
20pension plan retains a funding ratio of at least 90%.
21    (d) Beginning January 1, 2009, if the Authority fails to
22pay to an affected pension fund within 30 days after it is due
23(i) any employer contribution that it is required to make as a
24contributing employer, (ii) any additional employer
25contribution that it is required to pay under subsection (c),
26or (iii) any payment that it is required to make under Section

 

 

09700SB1831ham001- 89 -LRB097 08644 JDS 56114 a

14.02a or 4.02b of the Regional Transportation Authority Act,
2the trustee of the affected pension fund shall promptly so
3notify the Commission on Government Forecasting and
4Accountability, the Mayor of Chicago, the Governor, and the
5General Assembly.
6    (e) For purposes of determining employer contributions,
7assets, and actuarial liabilities under this subsection,
8contributions, assets, and liabilities relating to health care
9benefits shall not be included.
10    (f) This amendatory Act of the 94th General Assembly does
11not affect or impair the right of any contributing employer or
12its employees to collectively bargain the amount or level of
13employee contributions to an affected pension plan, to the
14extent that the plan includes employees subject to collective
15bargaining.
16    (g) Notwithstanding any other provision of this Article or
17any law to the contrary, a person who, on or after the
18effective date of this amendatory Act of the 97th General
19Assembly, first becomes a director on the Suburban Bus Board,
20the Commuter Rail Board, or the Board of Directors of the
21Regional Transportation Authority shall not be eligible to
22participate in an affected pension plan.
23(Source: P.A. 94-839, eff. 6-6-06.)
 
24    Section 15. The State Mandates Act is amended by adding
25Section 8.35 as follows:
 

 

 

09700SB1831ham001- 90 -LRB097 08644 JDS 56114 a

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