Rep. Barbara Flynn Currie

Filed: 11/15/2016

 

 


 

 


 
09900SB2437ham003LRB099 17093 RPS 51550 a

1
AMENDMENT TO SENATE BILL 2437

2    AMENDMENT NO. ______. Amend Senate Bill 2437 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Pension Code is amended by
5changing Sections 1-160, 8-113, 8-173, 8-174, 8-192, 8-243.2,
68-244, 8-244.1, 8-251, 11-110, 11-169, 11-170, 11-223.1, and
711-230 and by adding Sections 8-173.2, 8-228.5, 11-125.9,
811-169.2, and 11-197.7 as follows:
 
9    (40 ILCS 5/1-160)
10    (Text of Section WITHOUT the changes made by P.A. 98-641,
11which has been held unconstitutional)
12    Sec. 1-160. Provisions applicable to new hires.
13    (a) The provisions of this Section apply to a person who,
14on or after January 1, 2011, first becomes a member or a
15participant under any reciprocal retirement system or pension
16fund established under this Code, other than a retirement

 

 

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1system or pension fund established under Article 2, 3, 4, 5, 6,
215 or 18 of this Code, notwithstanding any other provision of
3this Code to the contrary, but do not apply to any self-managed
4plan established under this Code, to any person with respect to
5service as a sheriff's law enforcement employee under Article
67, or to any participant of the retirement plan established
7under Section 22-101. Notwithstanding anything to the contrary
8in this Section, for purposes of this Section, a person who
9participated in a retirement system under Article 15 prior to
10January 1, 2011 shall be deemed a person who first became a
11member or participant prior to January 1, 2011 under any
12retirement system or pension fund subject to this Section. The
13changes made to this Section by Public Act 98-596 this
14amendatory Act of the 98th General Assembly are a clarification
15of existing law and are intended to be retroactive to January
161, 2011 (the effective date of Public Act 96-889),
17notwithstanding the provisions of Section 1-103.1 of this Code.
18    (b) "Final average salary" means the average monthly (or
19annual) salary obtained by dividing the total salary or
20earnings calculated under the Article applicable to the member
21or participant during the 96 consecutive months (or 8
22consecutive years) of service within the last 120 months (or 10
23years) of service in which the total salary or earnings
24calculated under the applicable Article was the highest by the
25number of months (or years) of service in that period. For the
26purposes of a person who first becomes a member or participant

 

 

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

 

 

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1means the index published by the Bureau of Labor Statistics of
2the United States Department of Labor that measures the average
3change in prices of goods and services purchased by all urban
4consumers, United States city average, all items, 1982-84 =
5100. The new amount resulting from each annual adjustment shall
6be determined by the Public Pension Division of the Department
7of Insurance and made available to the boards of the retirement
8systems and pension funds by November 1 of each year.
9    (c) A member or participant is entitled to a retirement
10annuity upon written application if he or she has attained age
1167 (beginning January 1, 2015, age 65 with respect to service
12under Article 12 of this Code that is subject to this Section)
13and has at least 10 years of service credit and is otherwise
14eligible under the requirements of the applicable Article.
15    A member or participant who has attained age 62 (beginning
16January 1, 2015, age 60 with respect to service under Article
1712 of this Code that is subject to this Section) and has at
18least 10 years of service credit and is otherwise eligible
19under the requirements of the applicable Article may elect to
20receive the lower retirement annuity provided in subsection (d)
21of this Section.
22    (c-5) A person who first becomes a member or a participant
23under Article 8 or Article 11 of this Code on or after the
24effective date of this amendatory Act of the 99th General
25Assembly, notwithstanding any other provision of this Code to
26the contrary, is entitled to a retirement annuity upon written

 

 

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1application if he or she has attained age 65 and has at least
210 years of service credit under Article 8 or Article 11 of
3this Code and is otherwise eligible under the requirements of
4Article 8 or Article 11 of this Code, whichever is applicable.
5    (d) The retirement annuity of a member or participant who
6is retiring after attaining age 62 (beginning January 1, 2015,
7age 60 with respect to service under Article 12 of this Code
8that is subject to this Section) with at least 10 years of
9service credit shall be reduced by one-half of 1% for each full
10month that the member's age is under age 67 (beginning January
111, 2015, age 65 with respect to service under Article 12 of
12this Code that is subject to this Section).
13    (d-5) The retirement annuity of a person who first becomes
14a member or a participant under Article 8 or Article 11 of this
15Code on or after the effective date of this amendatory Act of
16the 99th General Assembly who is retiring at age 60 with at
17least 10 years of service credit under Article 8 or Article 11
18shall be reduced by one-half of 1% for each full month that the
19member's age is under age 65.
20    (d-10) Each person who first became a member or participant
21under Article 8 or Article 11 of this Code on or after January
221, 2011 and prior to the effective date of this amendatory Act
23of the 99th General Assembly shall make an irrevocable election
24either:
25        (i) to be eligible for the reduced retirement age
26    provided in subsections (c-5) and (d-5) of this Section,

 

 

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1    the eligibility for which is conditioned upon the member or
2    participant agreeing to the increases in employee
3    contributions for age and service annuities provided in
4    subsection (a-5) of Section 8-174 of this Code (for service
5    under Article 8) or subsection (a-5) of Section 11-170 of
6    this Code (for service under Article 11); or
7        (ii) to not agree to item (i) of this subsection
8    (d-10), in which case the member or participant shall
9    continue to be subject to the retirement age provisions in
10    subsections (c) and (d) of this Section and the employee
11    contributions for age and service annuity as provided in
12    subsection (a) of Section 8-174 of this Code (for service
13    under Article 8) or subsection (a) of Section 11-170 of
14    this Code (for service under Article 11).
15    The election provided for in this subsection shall be made
16between June 1, 2017 and July 15, 2017. A person subject to
17this subsection who makes the required election shall remain
18bound by that election. A person subject to this subsection who
19fails for any reason to make the required election within the
20time specified in this subsection shall be deemed to have made
21the election under item (ii).
22    (e) Any retirement annuity or supplemental annuity shall be
23subject to annual increases on the January 1 occurring either
24on or after the attainment of age 67 (beginning January 1,
252015, age 65 with respect to service under Article 12 of this
26Code that is subject to this Section and beginning on the

 

 

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1effective date of this amendatory Act of the 99th General
2Assembly, age 65 with respect to persons who: (i) first became
3members or participants under Article 8 or Article 11 of this
4Code on or after the effective date of this amendatory Act of
5the 99th General Assembly; or (ii) first became members or
6participants under Article 8 or Article 11 of this Code on or
7after January 1, 2011 and before the effective date of this
8amendatory Act of the 99th General Assembly and made the
9election under item (i) of subsection (d-10) of this Section)
10or the first anniversary of the annuity start date, whichever
11is later. Each annual increase shall be calculated at 3% or
12one-half the annual unadjusted percentage increase (but not
13less than zero) in the consumer price index-u for the 12 months
14ending with the September preceding each November 1, whichever
15is less, of the originally granted retirement annuity. If the
16annual unadjusted percentage change in the consumer price
17index-u for the 12 months ending with the September preceding
18each November 1 is zero or there is a decrease, then the
19annuity shall not be increased.
20    Notwithstanding Section 1-103.1 of this Code, the changes
21made to this Section by this amendatory Act of the 99th General
22Assembly are applicable without regard to whether the employee
23was in active service on or after the effective date of this
24amendatory Act of the 99th General Assembly.
25    (f) The initial survivor's or widow's annuity of an
26otherwise eligible survivor or widow of a retired member or

 

 

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1participant who first became a member or participant on or
2after January 1, 2011 shall be in the amount of 66 2/3% of the
3retired member's or participant's retirement annuity at the
4date of death. In the case of the death of a member or
5participant who has not retired and who first became a member
6or participant on or after January 1, 2011, eligibility for a
7survivor's or widow's annuity shall be determined by the
8applicable Article of this Code. The initial benefit shall be
966 2/3% of the earned annuity without a reduction due to age. A
10child's annuity of an otherwise eligible child shall be in the
11amount prescribed under each Article if applicable. Any
12survivor's or widow's annuity shall be increased (1) on each
13January 1 occurring on or after the commencement of the annuity
14if the deceased member died while receiving a retirement
15annuity or (2) in other cases, on each January 1 occurring
16after the first anniversary of the commencement of the annuity.
17Each annual increase shall be calculated at 3% or one-half the
18annual unadjusted percentage increase (but not less than zero)
19in the consumer price index-u for the 12 months ending with the
20September preceding each November 1, whichever is less, of the
21originally granted survivor's annuity. If the annual
22unadjusted percentage change in the consumer price index-u for
23the 12 months ending with the September preceding each November
241 is zero or there is a decrease, then the annuity shall not be
25increased.
26    (g) The benefits in Section 14-110 apply only if the person

 

 

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

 

 

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1    If a person who first becomes a member of a retirement
2system or pension fund subject to this Section on or after
3January 1, 2012 and is receiving a retirement annuity or
4retirement pension under that system or fund and accepts on a
5contractual basis a position to provide services to a
6governmental entity from which he or she has retired, then that
7person's annuity or retirement pension earned as an active
8employee of the employer shall be suspended during that
9contractual service. A person receiving an annuity or
10retirement pension under this Code shall notify the pension
11fund or retirement system from which he or she is receiving an
12annuity or retirement pension, as well as his or her
13contractual employer, of his or her retirement status before
14accepting contractual employment. A person who fails to submit
15such notification shall be guilty of a Class A misdemeanor and
16required to pay a fine of $1,000. Upon termination of that
17contractual employment, the person's retirement annuity or
18retirement pension payments shall resume and, if appropriate,
19be recalculated under the applicable provisions of this Code.
20    (i) (Blank).
21    (j) In the case of a conflict between the provisions of
22this Section and any other provision of this Code, the
23provisions of this Section shall control.
24(Source: P.A. 97-609, eff. 1-1-12; 98-92, eff. 7-16-13; 98-596,
25eff. 11-19-13; 98-622, eff. 6-1-14; revised 3-24-16.)
 

 

 

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1    (40 ILCS 5/8-113)  (from Ch. 108 1/2, par. 8-113)
2    Sec. 8-113. Municipal employee, employee, contributor, or
3participant. "Municipal employee", "employee", "contributor",
4or "participant":
5    (a) Any employee of an employer employed in the classified
6civil service thereof other than by temporary appointment or in
7a position excluded or exempt from the classified service by
8the Civil Service Act, or in the case of a city operating under
9a personnel ordinance, any employee of an employer employed in
10the classified or career service under the provisions of a
11personnel ordinance, other than in a provisional or exempt
12position as specified in such ordinance or in rules and
13regulations formulated thereunder.
14    (b) Any employee in the service of an employer before the
15Civil Service Act came in effect for the employer.
16    (c) Any person employed by the board; however, with respect
17to any person who first becomes employed by the board on or
18after the effective date of this amendatory Act of the 99th
19General Assembly, such person must be an actual resident of the
20City of Chicago for the duration of his or her employment with
21the board.
22    (d) Any person employed after December 31, 1949, but prior
23to January 1, 1984, in the service of the employer by temporary
24appointment or in a position exempt from the classified service
25as set forth in the Civil Service Act, or in a provisional or
26exempt position as specified in the personnel ordinance, who

 

 

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1meets the following qualifications:
2        (1) has rendered service during not less than 12
3    calendar months to an employer as an employee, officer, or
4    official, 4 months of which must have been consecutive full
5    normal working months of service rendered immediately
6    prior to filing application to be included; and
7        (2) files written application with the board, while in
8    the service, to be included hereunder.
9    (e) After December 31, 1949, any alderman or other officer
10or official of the employer, who files, while in office,
11written application with the board to be included hereunder.
12    (f) Beginning January 1, 1984, any person employed by an
13employer other than the Chicago Housing Authority or the Public
14Building Commission of the city, whether or not such person is
15serving by temporary appointment or in a position exempt from
16the classified service as set forth in the Civil Service Act,
17or in a provisional or exempt position as specified in the
18personnel ordinance, provided that such person is neither (1)
19an alderman or other officer or official of the employer, nor
20(2) participating, on the basis of such employment, in any
21other pension fund or retirement system established under this
22Act.
23    (g) After December 31, 1959, any person employed in the law
24department of the city, or municipal court or Board of Election
25Commissioners of the city, who was a contributor and
26participant, on December 31, 1959, in the annuity and benefit

 

 

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1fund in operation in the city on said date, by virtue of the
2Court and Law Department Employees' Annuity Act or the Board of
3Election Commissioners Employees' Annuity Act.
4    After December 31, 1959, the foregoing definition includes
5any other person employed or to be employed in the law
6department, or municipal court (other than as a judge), or
7Board of Election Commissioners (if his salary is provided by
8appropriation of the city council of the city and his salary
9paid by the city) -- subject, however, in the case of such
10persons not participants on December 31, 1959, to compliance
11with the same qualifications and restrictions otherwise set
12forth in this Section and made generally applicable to
13employees or officers of the city concerning eligibility for
14participation or membership.
15    Notwithstanding any other provision in this Section, any
16person who first becomes employed in the law department of the
17city on or after the effective date of this amendatory Act of
18the 99th General Assembly shall be included within the
19foregoing definition, effective upon the date the person first
20becomes so employed, regardless of the nature of the
21appointment the person holds under the provisions of a
22personnel ordinance.
23    (h) After December 31, 1965, any person employed in the
24public library of the city -- and any other person -- who was a
25contributor and participant, on December 31, 1965, in the
26pension fund in operation in the city on said date, by virtue

 

 

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1of the Public Library Employees' Pension Act.
2    (i) After December 31, 1968, any person employed in the
3house of correction of the city, who was a contributor and
4participant, on December 31, 1968, in the pension fund in
5operation in the city on said date, by virtue of the House of
6Correction Employees' Pension Act.
7    (j) Any person employed full-time on or after the effective
8date of this amendatory Act of the 92nd General Assembly by the
9Chicago Housing Authority who has elected to participate in
10this Fund as provided in subsection (a) of Section 8-230.9.
11    (k) Any person employed full-time by the Public Building
12Commission of the city who has elected to participate in this
13Fund as provided in subsection (d) of Section 8-230.7.
14(Source: P.A. 92-599, eff. 6-28-02.)
 
15    (40 ILCS 5/8-173)  (from Ch. 108 1/2, par. 8-173)
16    (Text of Section WITHOUT the changes made by P.A. 98-641,
17which has been held unconstitutional)
18    Sec. 8-173. Financing; tax levy.
19    (a) Except as provided in subsection (f) of this Section,
20the city council of the city shall levy a tax annually upon all
21taxable property in the city at a rate that will produce a sum
22which, when added to the amounts deducted from the salaries of
23the employees or otherwise contributed by them and the amounts
24deposited under subsection (f), will be sufficient for the
25requirements of this Article, but which when extended will

 

 

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1produce an amount not to exceed the greater of the following:
2(a) the sum obtained by the levy of a tax of .1093% of the
3value, as equalized or assessed by the Department of Revenue,
4of all taxable property within such city, or (b) the sum of
5$12,000,000. However any city in which a Fund has been
6established and in operation under this Article for more than 3
7years prior to 1970 shall levy for the year 1970 a tax at a rate
8on the dollar of assessed valuation of all taxable property
9that will produce, when extended, an amount not to exceed 1.2
10times the total amount of contributions made by employees to
11the Fund for annuity purposes in the calendar year 1968, and,
12for the year 1971 and 1972 such levy that will produce, when
13extended, an amount not to exceed 1.3 times the total amount of
14contributions made by employees to the Fund for annuity
15purposes in the calendar years 1969 and 1970, respectively; and
16for the year 1973 an amount not to exceed 1.365 times such
17total amount of contributions made by employees for annuity
18purposes in the calendar year 1971; and for the year 1974 an
19amount not to exceed 1.430 times such total amount of
20contributions made by employees for annuity purposes in the
21calendar year 1972; and for the year 1975 an amount not to
22exceed 1.495 times such total amount of contributions made by
23employees for annuity purposes in the calendar year 1973; and
24for the year 1976 an amount not to exceed 1.560 times such
25total amount of contributions made by employees for annuity
26purposes in the calendar year 1974; and for the year 1977 an

 

 

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1amount not to exceed 1.625 times such total amount of
2contributions made by employees for annuity purposes in the
3calendar year 1975; and for the year 1978 and each year
4thereafter through levy year 2016, such levy as will produce,
5when extended, an amount not to exceed the total amount of
6contributions made by or on behalf of employees to the Fund for
7annuity purposes in the calendar year 2 years prior to the year
8for which the annual applicable tax is levied, multiplied by
91.690 for the years 1978 through 1998 and by 1.250 for the year
101999 and for each year thereafter through levy year 2016.
11Beginning in levy year 2017, and in each year thereafter, the
12levy shall not exceed the amount of the city's total required
13contribution to the Fund for the next payment year, as
14determined under subsection (a-5). For the purposes of this
15Section, the payment year is the year immediately following the
16levy year.
17    The tax shall be levied and collected in like manner with
18the general taxes of the city, and shall be exclusive of and in
19addition to the amount of tax the city is now or may hereafter
20be authorized to levy for general purposes under any laws which
21may limit the amount of tax which the city may levy for general
22purposes. The county clerk of the county in which the city is
23located, in reducing tax levies under the provisions of any Act
24concerning the levy and extension of taxes, shall not consider
25the tax herein provided for as a part of the general tax levy
26for city purposes, and shall not include the same within any

 

 

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1limitation of the percent of the assessed valuation upon which
2taxes are required to be extended for such city.
3    Revenues derived from such tax shall be paid to the city
4treasurer of the city as collected and held by the city
5treasurer him for the benefit of the fund.
6    If the payments on account of taxes are insufficient during
7any year to meet the requirements of this Article, the city may
8issue tax anticipation warrants against the current tax levy.
9    The city may continue to use other lawfully available funds
10in lieu of all or part of the levy, as provided under
11subsection (f) of this Section.
12    (a-5) (1) Beginning in payment year 2018, the city's
13required annual contribution to the Fund for payment years 2018
14through 2022 shall be: for 2018, $266,000,000; for 2019,
15$344,000,000; for 2020, $421,000,000; for 2021, $499,000,000;
16and for 2022, $576,000,000.
17    (2) For payment years 2023 through 2058, the city's
18required annual contribution to the Fund shall be the amount
19determined by the Fund to be equal to the sum of (i) the city's
20portion of the projected normal cost for that fiscal year, plus
21(ii) an amount determined on a level percentage of applicable
22employee payroll basis (reflecting any limits on individual
23participants' pay that apply for benefit and contribution
24purposes under this plan) that is sufficient to bring the total
25actuarial assets of the Fund up to 90% of the total actuarial
26liabilities of the Fund by the end of 2058.

 

 

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1    (3) For payment years after 2058, the city's required
2annual contribution to the Fund shall be equal to the amount,
3if any, needed to bring the total actuarial assets of the Fund
4up to 90% of the total actuarial liabilities of the Fund as of
5the end of the year. In making the determinations under
6paragraphs (2) and (3) of this subsection, the actuarial
7calculations shall be determined under the entry age normal
8actuarial cost method, and any actuarial gains or losses from
9investment return incurred in a fiscal year shall be recognized
10in equal annual amounts over the 5-year period following the
11fiscal year.
12    To the extent that the city's contribution for any of the
13payment years referenced in this subsection is made with
14property taxes, those property taxes shall be levied,
15collected, and paid to the Fund in a like manner with the
16general taxes of the city.
17    (a-10) If the city fails to transmit to the Fund
18contributions required of it under this Article by December 31
19of the year in which such contributions are due, the Fund may,
20after giving notice to the city, certify to the State
21Comptroller the amounts of the delinquent payments, and the
22Comptroller must, beginning in payment year 2018, deduct and
23deposit into the Fund the certified amounts or a portion of
24those amounts from the following proportions of grants of State
25funds to the city:
26        (1) in payment year 2018, one-third of the total amount

 

 

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1    of any grants of State funds to the city;
2        (2) in payment year 2019, two-thirds of the total
3    amount of any grants of State funds to the city; and
4        (3) in payment year 2020 and each payment year
5    thereafter, the total amount of any grants of State funds
6    to the city.
7    The State Comptroller may not deduct from any grants of
8State funds to the city more than the amount of delinquent
9payments certified to the State Comptroller by the Fund.
10    (b) On or before July 1, 2017, and each July 1 thereafter
11January 10, annually, the board shall certify to notify the
12city council the annual amounts required under of the
13requirements of this Article, for which that the tax herein
14provided shall be levied for the following that current year.
15The board shall compute the amounts necessary to be credited to
16the reserves established and maintained as herein provided, and
17shall make an annual determination of the amount of the
18required city contributions, and certify the results thereof to
19the city council.
20    (c) In respect to employees of the city who are transferred
21to the employment of a park district by virtue of the "Exchange
22of Functions Act of 1957", the corporate authorities of the
23park district shall annually levy a tax upon all the taxable
24property in the park district at such rate per cent of the
25value of such property, as equalized or assessed by the
26Department of Revenue, as shall be sufficient, when added to

 

 

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1the amounts deducted from their salaries and otherwise
2contributed by them to provide the benefits to which they and
3their dependents and beneficiaries are entitled under this
4Article. The city shall not levy a tax hereunder in respect to
5such employees.
6    The tax so levied by the park district shall be in addition
7to and exclusive of all other taxes authorized to be levied by
8the park district for corporate, annuity fund, or other
9purposes. The county clerk of the county in which the park
10district is located, in reducing any tax levied under the
11provisions of any act concerning the levy and extension of
12taxes shall not consider such tax as part of the general tax
13levy for park purposes, and shall not include the same in any
14limitation of the per cent of the assessed valuation upon which
15taxes are required to be extended for the park district. The
16proceeds of the tax levied by the park district, upon receipt
17by the district, shall be immediately paid over to the city
18treasurer of the city for the uses and purposes of the fund.
19    The various sums to be contributed by the city and park
20district and allocated for the purposes of this Article, and
21any interest to be contributed by the city, shall be derived
22from the revenue from the taxes authorized in this Section or
23otherwise as expressly provided in this Section.
24    If it is not possible or practicable for the city to make
25contributions for age and service annuity and widow's annuity
26at the same time that employee contributions are made for such

 

 

09900SB2437ham003- 21 -LRB099 17093 RPS 51550 a

1purposes, such city contributions shall be construed to be due
2and payable as of the end of the fiscal year for which the tax
3is levied and shall accrue thereafter with interest at the
4effective rate until paid.
5    (d) With respect to employees whose wages are funded as
6participants under the Comprehensive Employment and Training
7Act of 1973, as amended (P.L. 93-203, 87 Stat. 839, P.L.
893-567, 88 Stat. 1845), hereinafter referred to as CETA,
9subsequent to October 1, 1978, and in instances where the board
10has elected to establish a manpower program reserve, the board
11shall compute the amounts necessary to be credited to the
12manpower program reserves established and maintained as herein
13provided, and shall make a periodic determination of the amount
14of required contributions from the City to the reserve to be
15reimbursed by the federal government in accordance with rules
16and regulations established by the Secretary of the United
17States Department of Labor or his designee, and certify the
18results thereof to the City Council. Any such amounts shall
19become a credit to the City and will be used to reduce the
20amount which the City would otherwise contribute during
21succeeding years for all employees.
22    (e) In lieu of establishing a manpower program reserve with
23respect to employees whose wages are funded as participants
24under the Comprehensive Employment and Training Act of 1973, as
25authorized by subsection (d), the board may elect to establish
26a special municipality contribution rate for all such

 

 

09900SB2437ham003- 22 -LRB099 17093 RPS 51550 a

1employees. If this option is elected, the City shall contribute
2to the Fund from federal funds provided under the Comprehensive
3Employment and Training Act program at the special rate so
4established and such contributions shall become a credit to the
5City and be used to reduce the amount which the City would
6otherwise contribute during succeeding years for all
7employees.
8    (f) In lieu of levying all or a portion of the tax required
9under this Section in any year, the city may deposit with the
10city treasurer no later than March 1 of that year for the
11benefit of the fund, to be held in accordance with this
12Article, an amount that, together with the taxes levied under
13this Section for that year, is not less than the amount of the
14city contributions for that year as certified by the board to
15the city council. The deposit may be derived from any source
16legally available for that purpose, including, but not limited
17to, the proceeds of city borrowings. The making of a deposit
18shall satisfy fully the requirements of this Section for that
19year to the extent of the amounts so deposited. Amounts
20deposited under this subsection may be used by the fund for any
21of the purposes for which the proceeds of the tax levied by the
22city under this Section may be used, including the payment of
23any amount that is otherwise required by this Article to be
24paid from the proceeds of that tax.
25(Source: P.A. 90-31, eff. 6-27-97; 90-655, eff. 7-30-98;
2690-766, eff. 8-14-98.)
 

 

 

09900SB2437ham003- 23 -LRB099 17093 RPS 51550 a

1    (40 ILCS 5/8-173.2 new)
2    Sec. 8-173.2. Funding obligation.
3    (a) Beginning January 1, 2018, the city shall be obligated
4to contribute to the Fund in each fiscal year an amount not
5less than the amount determined annually under subsection (a-5)
6of Section 8-173 of this Code. Notwithstanding any other
7provision of law, if the city fails to pay the amount
8guaranteed under this Section on or before December 31 of the
9year in which such amount is due, the retirement board may
10bring a mandamus action in the Circuit Court of Cook County to
11compel the city to make the required payment, irrespective of
12other remedies that may be available to the Fund. The
13obligations and causes of action created under this Section
14shall be in addition to any other right or remedy otherwise
15accorded by common law or State or federal law, and nothing in
16this Section shall be construed to deny, abrogate, impair, or
17waive any such common law or statutory right or remedy.
18    (b) In ordering the city to make the required payment, the
19court may order a reasonable payment schedule to enable the
20city to make the required payment without significantly
21imperiling the public health, safety, or welfare. Any payments
22required to be made by the city pursuant to this Section are
23expressly subordinated to the payment of the principal,
24interest, premium, if any, and other payments on or related to
25any bonded debt obligation of the city, either currently

 

 

09900SB2437ham003- 24 -LRB099 17093 RPS 51550 a

1outstanding or to be issued, for which the source of repayment
2or security thereon is derived directly or indirectly from any
3funds collected or received by the city or collected or
4received on behalf of the city. Payments on such bonded
5obligations include any statutory fund transfers or other
6prefunding mechanisms or formulas set forth, now or hereafter,
7in State law, city ordinance, or bond indentures, into debt
8service funds or accounts of the city related to such bonded
9obligations, consistent with the payment schedules associated
10with such obligations.
 
11    (40 ILCS 5/8-174)   (from Ch. 108 1/2, par. 8-174)
12    (Text of Section WITHOUT the changes made by P.A. 98-641,
13which has been held unconstitutional)
14    Sec. 8-174. Contributions for age and service annuities for
15present employees and future entrants. (a) Beginning on the
16effective date and prior to July 1, 1947, 3 1/4%; and beginning
17on July 1, 1947 and prior to July 1, 1953, 5%; and beginning
18July 1, 1953, and prior to January 1, 1972, 6%; and beginning
19January 1, 1972, 6-1/2% of each payment of the salary of each
20present employee and future entrant, except as provided in
21subsection (a-5) and (a-10), shall be contributed to the fund
22as a deduction from salary for age and service annuity.
23    (a-5) Except as provided in subsection (a-10), for an
24employee who, on or after January 1, 2011 and prior to the
25effective date of this amendatory Act of the 99th General

 

 

09900SB2437ham003- 25 -LRB099 17093 RPS 51550 a

1Assembly, first became a member or participant under this
2Article and made the election under item (i) of subsection
3(d-10) of Section 1-160: prior to the effective date of this
4amendatory Act of the 99th General Assembly, 6.5%; and
5beginning on the effective date of this amendatory Act of the
699th General Assembly and prior to January 1, 2018, 7.5%; and
7beginning January 1, 2018 and prior to January 1, 2019, 8.5%;
8and beginning January 1, 2019 and thereafter, 9.5% of each
9payment of salary shall be contributed to the fund as a
10deduction from salary for age and service annuity. Beginning
11with the first pay period on or after the date when the funded
12ratio of the fund is first determined to have reached the 90%
13funding goal, and each pay period thereafter for as long as the
14fund maintains a funding ratio of 75% or more, employee
15contributions for age and service annuity for those employees
16who made the election under item (i) of subsection (d-10) of
17Section 1-160 shall be 5.5% of each payment of salary. If the
18funding ratio falls below 75%, then employee contributions for
19age and service annuity for those employees who made the
20election under item (i) of subsection (d-10) shall revert to
219.5% until such time as the fund once again is determined to
22have reached a funding ratio of 75%, at which time the 5.5% of
23salary contribution for age and service annuity shall resume.
24An employee who made the election under item (ii) of subsection
25(d-10) of Section 1-160 shall continue to have the
26contributions for age and service annuity determined under

 

 

09900SB2437ham003- 26 -LRB099 17093 RPS 51550 a

1subsection (a) of this Section.
2    (a-10) For each employee who, on or after the effective
3date of this amendatory Act of the 99th General Assembly
4becomes a member or participant under this Article, 9.5% of
5each payment of salary shall be contributed to the fund as a
6deduction from salary for age and service annuity. Beginning
7with the first pay period on or after the date when the funded
8ratio of the fund is first determined to have reached the 90%
9funding goal, and each pay period thereafter as long as the
10Fund maintains a funding ratio of 75% or more, employee
11contributions for age and service annuity for each employee
12subject to this subsection (a-10) shall be 5.5% of each payment
13of salary. If the funding ratio falls below 75%, then employee
14contributions for each employee subject to this subsection
15(a-10) shall revert to 9.5% until such time as the fund once
16again is determined to have reached a funding ratio of 75%, at
17which time the 5.5% of salary contribution for age and service
18annuity shall resume.
19    Such deductions beginning on the effective date and prior
20to July 1, 1947 shall be made for a future entrant while he is
21in the service until he attains age 65 and for a present
22employee while he is in the service until the amount so
23deducted from his salary with the amount deducted from his
24salary or paid by him according to law to any municipal pension
25fund in force on the effective date with interest on both such
26amounts at 4% per annum equals the sum that would have been to

 

 

09900SB2437ham003- 27 -LRB099 17093 RPS 51550 a

1his credit from sums deducted from his salary if deductions at
2the rate herein stated had been made during his entire service
3until he attained age 65 with interest at 4% per annum for the
4period subsequent to his attainment of age 65. Such deductions
5beginning July 1, 1947 shall be made and continued for
6employees while in the service.
7    (b) (Blank). Concurrently with each employee contribution
8beginning on the effective date and prior to July 1, 1947 the
9city shall contribute 5 3/4%; and beginning on July 1, 1947 and
10prior to July 1, 1953, 7%; and beginning July 1, 1953, 6% of
11each payment of such salary until the employee attains age 65.
12    (c) Each employee contribution made prior to the date the
13age and service annuity for an employee is fixed and each
14corresponding city contribution shall be credited to the
15employee and allocated to the account of the employee for whose
16benefit it is made.
17    (d) Notwithstanding Section 1-103.1, the changes to this
18Section made by this amendatory Act of the 99th General
19Assembly apply regardless of whether the employee was in active
20service on or after the effective date of this amendatory Act
21of the 99th General Assembly.
22(Source: P.A. 93-654, eff. 1-16-04.)
 
23    (40 ILCS 5/8-192)  (from Ch. 108 1/2, par. 8-192)
24    Sec. 8-192. Board created. A board of 6 5 members shall
25constitute a Board of Trustees authorized to carry out the

 

 

09900SB2437ham003- 28 -LRB099 17093 RPS 51550 a

1provisions of this Article. The board shall be known as the
2Retirement Board of the Municipal Employees', Officers', and
3Officials' Annuity and Benefit Fund of the city, or for the
4sake of brevity may also be known and referred to as the
5Retirement Board of the Municipal Employees' Annuity and
6Benefit Fund of such city. The board shall consist of the city
7comptroller, the city treasurer, 2 individuals appointed by the
8mayor of the city, and 3 members who shall be employees, to be
9elected as follows:
10    Within 30 days after the effective date, the mayor of the
11city shall arrange for and hold an election.
12    One employee shall be elected for a term ending on the
13first day in the month of December of the first year next
14following the effective date; one for a term ending December
151st of the following year; and one for a term ending on
16December 1st of the second following year.
17    The city comptroller, with the approval of the board, may
18appoint a designee from among employees of the city who are
19versed in the affairs of the comptroller's office to act in the
20absence of the comptroller on all matters pertaining to
21administering the provisions of this Article.
22    On the effective date of this amendatory Act of the 99th
23General Assembly, the city comptroller, or his or her designee,
24shall no longer be a member of the board.
25    The city treasurer, with the approval of the board, may
26appoint a designee from among employees of the city who are

 

 

09900SB2437ham003- 29 -LRB099 17093 RPS 51550 a

1versed in the affairs of the treasurer's office to act in the
2absence of the treasurer on all matters pertaining to
3administering the provisions of this Article.
4    The individuals appointed by the mayor of the city, with
5the approval of the board, may each appoint a designee, who
6shall be a city employee, to act in his or her absence on all
7matters pertaining to administering the provisions of this
8Article.
9    The members of a Retirement Board of a municipal
10employees', officers', and officials' annuity and benefit fund
11holding office in a city at the time this Article becomes
12effective, including elective and ex-officio members, shall
13continue in office until the expiration of their terms and
14until their respective successors are elected or appointed and
15have qualified.
16    An employee member who takes advantage of the early
17retirement incentives provided under this amendatory Act of the
1893rd General Assembly may continue as a member until the end of
19his or her term.
20(Source: P.A. 96-1427, eff. 1-1-11.)
 
21    (40 ILCS 5/8-228.5 new)
22    Sec. 8-228.5. Action by Fund against third party;
23subrogation. In those cases where the injury or death for which
24a disability or death benefit is payable under this Article was
25caused under circumstances creating a legal liability on the

 

 

09900SB2437ham003- 30 -LRB099 17093 RPS 51550 a

1part of some person or entity (hereinafter "third party") to
2pay damages to the employee, legal proceedings may be taken
3against such third party to recover damages notwithstanding the
4Fund's payment of or liability to pay disability or death
5benefits under this Article. In such case, however, if the
6action against such third party is brought by the injured
7employee or his or her personal representative and judgment is
8obtained and paid, or settlement is made with such third party,
9either with or without suit, from the amount received by such
10employee or personal representative, then there shall be paid
11to the Fund the amount of money representing the death or
12disability benefits paid or to be paid to the disabled employee
13pursuant to the provisions of this Article. In all
14circumstances where the action against a third party is brought
15by the disabled employee or his or her personal representative,
16the Fund shall have a claim or lien upon any recovery, by
17judgment or settlement, out of which the disabled employee or
18his or her personal representative might be compensated from
19such third party. The Fund may satisfy or enforce any such
20claim or lien only from that portion of a recovery that has
21been, or can be, allocated or attributed to past and future
22lost salary, which recovery is by judgment or settlement. The
23Fund's claim or lien shall not be satisfied or enforced from
24that portion of a recovery that has been, or can be, allocated
25or attributed to medical care and treatment, pain and
26suffering, loss of consortium, and attorney's fees and costs.

 

 

09900SB2437ham003- 31 -LRB099 17093 RPS 51550 a

1    Where action is brought by the disabled employee or his or
2her personal representative he or she shall forthwith notify
3the Fund, by personal service or registered mail, of such fact
4and of the name of the court where such suit is brought, filing
5proof of such notice in such action. The Fund may, at any time
6thereafter, intervene in such action upon its own motion.
7Therefore, no release or settlement of claim for damages by
8reason of injury to the disabled employee, and no satisfaction
9of judgment in such proceedings, shall be valid without the
10written consent of the Board of Trustees authorized by this
11Code to administer the Fund created under this Article, except
12that such consent shall be provided expeditiously following a
13settlement or judgment.
14    In the event the disabled employee or his or her personal
15representative has not instituted an action against a third
16party at a time when only 3 months remain before such action
17would thereafter be barred by law, the Fund may, in its own
18name or in the name of the personal representative, commence a
19proceeding against such third party seeking the recovery of all
20damages on account of injuries caused to the employee. From any
21amount so recovered, the Fund shall pay to the personal
22representative of such disabled employee all sums collected
23from such third party by judgment or otherwise in excess of the
24amount of disability or death benefits paid or to be paid under
25this Article to the disabled employee or his or her personal
26representative, and such costs, attorney's fees, and

 

 

09900SB2437ham003- 32 -LRB099 17093 RPS 51550 a

1reasonable expenses as may be incurred by the Fund in making
2the collection or in enforcing such liability. The Fund's
3recovery shall be satisfied only from that portion of a
4recovery that has been, or can be, allocated or attributed to
5past and future lost salary, which recovery is by judgment or
6settlement. The Fund's recovery shall not be satisfied from
7that portion of the recovery that has been or can be allocated
8or attributed to medical care and treatment, pain and
9suffering, loss of consortium, and attorney's fees and costs.
10    Additionally, with respect to any right of subrogation
11asserted by the Fund under this Section, the Fund, in the
12exercise of discretion, may determine what amount from past or
13future salary shall be appropriate under the circumstances to
14collect from the recovery obtained on behalf of the disabled
15employee.
16    This Section applies only to persons who first become
17members or participants under this Article on or after the
18effective date of this amendatory Act of 99th General Assembly.
 
19    (40 ILCS 5/8-243.2)  (from Ch. 108 1/2, par. 8-243.2)
20    Sec. 8-243.2. Alternative annuity for city officers.
21    (a) For the purposes of this Section and Sections 8-243.1
22and 8-243.3, "city officer" means the city clerk, the city
23treasurer, or an alderman of the city elected by vote of the
24people, while serving in that capacity or as provided in
25subsection (f), who has elected to participate in the Fund.

 

 

09900SB2437ham003- 33 -LRB099 17093 RPS 51550 a

1    (b) Any elected city officer, while serving in that
2capacity or as provided in subsection (f), may elect to
3establish alternative credits for an alternative annuity by
4electing in writing to make additional optional contributions
5in accordance with this Section and the procedures established
6by the board. Such elected city officer may discontinue making
7the additional optional contributions by notifying the Fund in
8writing in accordance with this Section and procedures
9established by the board.
10    Additional optional contributions for the alternative
11annuity shall be as follows:
12        (1) For service after the option is elected, an
13    additional contribution of 3% of salary shall be
14    contributed to the Fund on the same basis and under the
15    same conditions as contributions required under Sections
16    8-174 and 8-182.
17        (2) For service before the option is elected, an
18    additional contribution of 3% of the salary for the
19    applicable period of service, plus interest at the
20    effective rate from the date of service to the date of
21    payment. All payments for past service must be paid in full
22    before credit is given. No additional optional
23    contributions may be made for any period of service for
24    which credit has been previously forfeited by acceptance of
25    a refund, unless the refund is repaid in full with interest
26    at the effective rate from the date of refund to the date

 

 

09900SB2437ham003- 34 -LRB099 17093 RPS 51550 a

1    of repayment.
2    (c) In lieu of the retirement annuity otherwise payable
3under this Article, any city officer elected by vote of the
4people who (1) has elected to participate in the Fund and make
5additional optional contributions in accordance with this
6Section, and (2) has attained age 55 with at least 10 years of
7service credit, or has attained age 60 with at least 8 years of
8service credit, may elect to have his retirement annuity
9computed as follows: 3% of the participant's salary at the time
10of termination of service for each of the first 8 years of
11service credit, plus 4% of such salary for each of the next 4
12years of service credit, plus 5% of such salary for each year
13of service credit in excess of 12 years, subject to a maximum
14of 80% of such salary. To the extent such elected city officer
15has made additional optional contributions with respect to only
16a portion of his years of service credit, his retirement
17annuity will first be determined in accordance with this
18Section to the extent such additional optional contributions
19were made, and then in accordance with the remaining Sections
20of this Article to the extent of years of service credit with
21respect to which additional optional contributions were not
22made.
23    (d) In lieu of the disability benefits otherwise payable
24under this Article, any city officer elected by vote of the
25people who (1) has elected to participate in the Fund, and (2)
26has become permanently disabled and as a consequence is unable

 

 

09900SB2437ham003- 35 -LRB099 17093 RPS 51550 a

1to perform the duties of his office, and (3) was making
2optional contributions in accordance with this Section at the
3time the disability was incurred, may elect to receive a
4disability annuity calculated in accordance with the formula in
5subsection (c). For the purposes of this subsection, such
6elected city officer shall be considered permanently disabled
7only if: (i) disability occurs while in service as an elected
8city officer and is of such a nature as to prevent him from
9reasonably performing the duties of his office at the time; and
10(ii) the board has received a written certification by at least
112 licensed physicians appointed by it stating that such officer
12is disabled and that the disability is likely to be permanent.
13    (e) Refunds of additional optional contributions shall be
14made on the same basis and under the same conditions as
15provided under Sections 8-168, 8-170 and 8-171. Interest shall
16be credited at the effective rate on the same basis and under
17the same conditions as for other contributions. Optional
18contributions shall be accounted for in a separate Elected City
19Officer Optional Contribution Reserve. Optional contributions
20under this Section shall be included in the amount of employee
21contributions used to compute the tax levy under Section 8-173.
22    (f) The effective date of this plan of optional alternative
23benefits and contributions shall be July 1, 1990, or the date
24upon which approval is received from the U.S. Internal Revenue
25Service, whichever is later.
26    The plan of optional alternative benefits and

 

 

09900SB2437ham003- 36 -LRB099 17093 RPS 51550 a

1contributions shall not be available to any former city officer
2or employee receiving an annuity from the Fund on the effective
3date of the plan, unless he re-enters service as an elected
4city officer and renders at least 3 years of additional service
5after the date of re-entry. However, a person who holds office
6as a city officer on June 1, 1995 may elect to participate in
7the plan, to transfer credits into the Fund from other Articles
8of this Code, and to make the contributions required for prior
9service, until 30 days after the effective date of this
10amendatory Act of the 92nd General Assembly, notwithstanding
11the ending of his term of office prior to that effective date;
12in the event that the person is already receiving an annuity
13from this Fund or any other Article of this Code at the time of
14making this election, the annuity shall be recalculated to
15include any increase resulting from participation in the plan,
16with such increase taking effect on the effective date of the
17election.
18    (g) Notwithstanding any other provision in this Section or
19in this Code to the contrary, any person who first becomes a
20city officer, as defined in this Section, on or after the
21effective date of this amendatory Act of the 99th General
22Assembly, shall not be eligible for the alternative annuity or
23alternative disability benefits as provided in subsections
24(a), (b), (c), and (d) of this Section or for the alternative
25survivor's benefits as provided in Section 8-243.3. Such person
26shall not be eligible, or be required, to make any additional

 

 

09900SB2437ham003- 37 -LRB099 17093 RPS 51550 a

1contributions beyond those required of other participants
2under Sections 8-137, 8-174, and 8-182. The retirement annuity,
3disability benefits, and survivor's benefits for a person who
4first becomes a city officer on or after the effective date of
5this amendatory Act of the 99th General Assembly shall be
6determined pursuant to the provisions otherwise provided in
7this Article.
8(Source: P.A. 92-599, eff. 6-28-02.)
 
9    (40 ILCS 5/8-244)  (from Ch. 108 1/2, par. 8-244)
10    Sec. 8-244. Annuities, etc., exempt.
11    (a) All annuities, refunds, pensions, and disability
12benefits granted under this Article, shall be exempt from
13attachment or garnishment process and shall not be seized,
14taken, subjected to, detained, or levied upon by virtue of any
15judgment, or any process or proceeding whatsoever issued out of
16or by any court in this State, for the payment and satisfaction
17in whole or in part of any debt, damage, claim, demand, or
18judgment against any annuitant, pensioner, participant, refund
19applicant, or other beneficiary hereunder.
20    (b) No annuitant, pensioner, refund applicant, or other
21beneficiary shall have any right to transfer or assign his
22annuity, refund, or disability benefit or any part thereof by
23way of mortgage or otherwise, except that:
24        (1) an annuitant or pensioner who elects or has elected
25    to participate in a non-profit group hospital care plan or

 

 

09900SB2437ham003- 38 -LRB099 17093 RPS 51550 a

1    group medical surgical plan may with the approval of the
2    board and in conformity with its regulations authorize the
3    board to withhold from the pension or annuity the current
4    premium for such coverage and pay such premium to the
5    organization underwriting such plan;
6        (2) in the case of refunds, a participant may pledge by
7    assignment, power of attorney, or otherwise, as security
8    for a loan from a legally operating credit union making
9    loans only to participants in certain public employee
10    pension funds described in the Illinois Pension Code, all
11    or part of any refund which may become payable to him in
12    the event of his separation from service; and
13        (3) the board, in its discretion, may pay to the wife
14    of any annuitant, pensioner, refund applicant, or
15    disability beneficiary, such an amount out of her husband's
16    annuity pension, refund, or disability benefit as any court
17    of competent jurisdiction may order, or such an amount as
18    the board may consider necessary for the support of his
19    wife or children, or both in the event of his disappearance
20    or unexplained absence or of his failure to support such
21    wife or children.
22    (c) The board may retain out of any future annuity,
23pension, refund or disability benefit payments, such amount, or
24amounts, as it may require for the repayment of any moneys paid
25to any annuitant, pensioner, refund applicant, or disability
26beneficiary through misrepresentation, fraud or error. Any

 

 

09900SB2437ham003- 39 -LRB099 17093 RPS 51550 a

1such action of the board shall relieve and release the board
2and the fund from any liability for any moneys so withheld.
3    (d) Whenever an annuity or disability benefit is payable to
4a minor or to a person certified by a medical doctor to be
5under legal disability, the board, in its discretion and when
6it is in the best interest of the person concerned, may waive
7guardianship proceedings and pay the annuity or benefit to the
8person providing or caring for the minor or person under legal
9disability.
10    In the event that a person certified by a medical doctor to
11be under legal disability (i) has no spouse, blood relative, or
12other person providing or caring for him or her, (ii) has no
13guardian of his or her estate, and (iii) is confined to a
14Medicare approved, State certified nursing home or to a
15publicly owned and operated nursing home, hospital, or mental
16institution, the Board may pay any benefit due that person to
17the nursing home, hospital, or mental institution, to be used
18for the sole benefit of the person under legal disability.
19    Payment in accordance with this subsection to a person,
20nursing home, hospital, or mental institution for the benefit
21of a minor or person under legal disability shall be an
22absolute discharge of the Fund's liability with respect to the
23amount so paid. Any person, nursing home, hospital, or mental
24institution accepting payment under this subsection shall
25notify the Fund of the death or any other relevant change in
26the status of the minor or person under legal disability.

 

 

09900SB2437ham003- 40 -LRB099 17093 RPS 51550 a

1(Source: P.A. 91-887, eff. 7-6-00.)
 
2    (40 ILCS 5/8-244.1)  (from Ch. 108 1/2, par. 8-244.1)
3    Sec. 8-244.1. Payment of annuity other than direct.
4    (a) The board, at the written direction and request of any
5annuitant, may, solely as an accommodation to such annuitant,
6pay the annuity due him to a bank, savings and loan association
7or any other financial institution insured by an agency of the
8federal government, for deposit to his account, or to a bank or
9trust company for deposit in a trust established by him for his
10benefit with such bank, savings and loan association or trust
11company, and such annuitant may withdraw such direction at any
12time. The board may also, in the case of any disability
13beneficiary or annuitant for whom no estate guardian has been
14appointed and who is confined in a publicly owned and operated
15mental institution, pay such disability benefit or annuity due
16such person to the superintendent or other head of such
17institution or hospital for deposit to such person's trust fund
18account maintained for him by such institution or hospital, if
19by law such trust fund accounts are authorized or recognized.
20    (b) An annuitant formerly employed by the City of Chicago
21may authorize the withholding of a portion of his or her
22annuity for payment of dues to the labor organization which
23formerly represented the annuitant when the annuitant was an
24active employee; however, no withholding shall be required
25under this subsection for payment to one labor organization

 

 

09900SB2437ham003- 41 -LRB099 17093 RPS 51550 a

1unless a minimum of 25 annuitants authorize such withholding.
2The Board shall prescribe a form for the authorization of
3withholding of dues, release of name, social security number
4and address and shall provide such forms to employees,
5annuitants and labor organizations upon request. Amounts
6withheld by the Board under this subsection shall be promptly
7paid over to the designated organizations, indicating the
8names, social security numbers and addresses of annuitants on
9whose behalf dues were withheld.
10    At the request and at the expense of the labor organization
11that formerly represented the annuitant, the City of Chicago
12shall coordinate mailings no more than twice in any
13twelve-month period to such annuitants and the Board shall
14supply current annuitant addresses to the City of Chicago upon
15request. These mailings shall be limited to informing the
16annuitants of their rights under this subsection (b), the form
17authorizing the withholding of dues from their annuity and
18information supplied by the labor organization pertinent to the
19decision of whether to exercise the rights of this subsection.
20To meet this obligation, the City of Chicago shall, upon
21request, create and update records of all retirees for each
22labor organization as far back in time as records permit,
23including their names, addresses, phone numbers and social
24security numbers.
25(Source: P.A. 90-766, eff. 8-14-98.)
 

 

 

09900SB2437ham003- 42 -LRB099 17093 RPS 51550 a

1    (40 ILCS 5/8-251)  (from Ch. 108 1/2, par. 8-251)
2    Sec. 8-251. Felony conviction.
3    None of the benefits provided for in this Article shall be
4paid to any person who is convicted of any felony relating to
5or arising out of or in connection with his service as a
6municipal employee.
7    This section shall not operate to impair any contract or
8vested right heretofore acquired under any law or laws
9continued in this Article, nor to preclude the right to a
10refund.
11    Any refund required under this Article shall be calculated
12based on that person's contributions to the Fund, less the
13amount of any annuity benefit previously received by the person
14or his or her beneficiaries. The changes made to this Section
15by this amendatory Act of the 99th General Assembly apply only
16to persons who first become participants under this Article on
17or after the effective date of this amendatory Act of the 99th
18General Assembly.
19    All future entrants entering service subsequent to July 11,
201955 shall be deemed to have consented to the provisions of
21this section as a condition of coverage.
22(Source: Laws 1963, p. 161.)
 
23    (40 ILCS 5/11-110)  (from Ch. 108 1/2, par. 11-110)
24    Sec. 11-110. Employee, contributory, contributor or
25participant.

 

 

09900SB2437ham003- 43 -LRB099 17093 RPS 51550 a

1    "Employee", "contributory", "contributor" or
2"participant":
3    (a) Any employee of an employer in a position classified by
4the civil service commission thereof as labor service and who
5was appointed to such position under the Civil Service Act,
6other than by temporary appointment as defined in said Act.
7    (b) Any employee in the service of an employer before the
8Civil Service Act came into effect for the employer.
9    (c) Any person employed by the board; however, with respect
10to any person who first becomes employed by the board on or
11after the effective date of this amendatory Act of the 99th
12General Assembly, such person must be an actual resident of the
13City of Chicago for the duration of his or her employment with
14the board.
15    (d) Any person employed by a retirement board of any other
16annuity and benefit fund in such city which is on a reserve
17basis on the effective date or thereafter in operation for the
18employer, other than the fund created by this Article.
19    (e) Any person employed after July 31, 1951, by temporary
20appointment as defined in Section 10 of the Civil Service Act,
21in a position classified by the Civil Service Commission of the
22employer as labor service of the employer; or in the case of a
23city operating under a municipal personnel ordinance, any
24employee of an employer employed under the provisions of such
25municipal personnel ordinance as labor service of the employer.
26(Source: P.A. 90-31, eff. 6-27-97.)
 

 

 

09900SB2437ham003- 44 -LRB099 17093 RPS 51550 a

1    (40 ILCS 5/11-125.9 new)
2    Sec. 11-125.9 Action by Fund against third party;
3subrogation. In those cases where the injury or death for which
4a disability or death benefit is payable under this Article was
5caused under circumstances creating a legal liability on the
6part of some person or entity (hereinafter "third party") to
7pay damages to the employee, legal proceedings may be taken
8against such third party to recover damages notwithstanding the
9Fund's payment of or liability to pay disability or death
10benefits under this Article. In such case, however, if the
11action against such third party is brought by the injured
12employee or his or her personal representative and judgment is
13obtained and paid, or settlement is made with such third party,
14either with or without suit, from the amount received by such
15employee or personal representative, then there shall be paid
16to the Fund the amount of money representing the death or
17disability benefits paid or to be paid to the disabled employee
18pursuant to the provisions of this Article. In all
19circumstances where the action against a third party is brought
20by the disabled employee or his or her personal representative,
21the Fund shall have a claim or lien upon any recovery, by
22judgment or settlement, out of which the disabled employee or
23his or her personal representative might be compensated from
24such third party. The Fund may satisfy or enforce any such
25claim or lien only from that portion of a recovery that has

 

 

09900SB2437ham003- 45 -LRB099 17093 RPS 51550 a

1been, or can be, allocated or attributed to past and future
2lost salary, which recovery is by judgment or settlement. The
3Fund's claim or lien shall not be satisfied or enforced from
4that portion of a recovery that has been, or can be, allocated
5or attributed to medical care and treatment, pain and
6suffering, loss of consortium, and attorney's fees and costs.
7Where action is brought by the disabled employee or his or her
8personal representative he or she shall forthwith notify the
9Fund, by personal service or registered mail, of such fact and
10of the name of the court where such suit is brought, filing
11proof of such notice in such action. The Fund may, at any time
12thereafter, intervene in such action upon its own motion.
13Therefore, no release or settlement of claim for damages by
14reason of injury to the disabled employee, and no satisfaction
15of judgment in such proceedings, shall be valid without the
16written consent of the Board of Trustees authorized by this
17Code to administer the Fund created under this Article, except
18that such consent shall be provided expeditiously following a
19settlement or judgment.
20    In the event the disabled employee or his or her personal
21representative has not instituted an action against a third
22party at a time when only 3 months remain before such action
23would thereafter be barred by law, the Fund may, in its own
24name or in the name of the personal representative, commence a
25proceeding against such third party seeking the recovery of all
26damages on account of injuries caused to the employee. From any

 

 

09900SB2437ham003- 46 -LRB099 17093 RPS 51550 a

1amount so recovered, the Fund shall pay to the personal
2representative of such disabled employee all sums collected
3from such third party by judgment or otherwise in excess of the
4amount of disability or death benefits paid or to be paid under
5this Article to the disabled employee or his or her personal
6representative, and such costs, attorney's fees, and
7reasonable expenses as may be incurred by the Fund in making
8the collection or in enforcing such liability. The Fund's
9recovery shall be satisfied only from that portion of a
10recovery that has been, or can be, allocated or attributed to
11past and future lost salary, which recovery is by judgment or
12settlement. The Fund's recovery shall not be satisfied from
13that portion of the recovery that has been or can be allocated
14or attributed to medical care and treatment, pain and
15suffering, loss of consortium, and attorney's fees and costs.
16Additionally, with respect to any right of subrogation asserted
17by the Fund under this Section, the Fund, in the exercise of
18discretion, may determine what amount from past or future
19salary shall be appropriate under the circumstances to collect
20from the recovery obtained on behalf of the disabled employee.
21    This Section applies only to persons who first become
22members or participants under this Article on or after the
23effective date of this amendatory Act of 99th General Assembly.
 
24    (40 ILCS 5/11-169)  (from Ch. 108 1/2, par. 11-169)
25    (Text of Section WITHOUT the changes made by P.A. 98-641,

 

 

09900SB2437ham003- 47 -LRB099 17093 RPS 51550 a

1which has been held unconstitutional)
2    Sec. 11-169. Financing; tax levy.
3    (a) Except as provided in subsection (f) of this Section,
4the city council of the city shall levy a tax annually upon all
5taxable property in the city at the rate that will produce a
6sum which, when added to the amounts deducted from the salaries
7of the employees or otherwise contributed by them and the
8amounts deposited under subsection (f), will be sufficient for
9the requirements of this Article. For the years prior to the
10year 1950 the tax rate shall be as provided for under "The 1935
11Act". Beginning with the year 1950 to and including the year
121969 such tax shall be not more than .036% annually of the
13value, as equalized or assessed by the Department of Revenue,
14of all taxable property within such city. Beginning with the
15year 1970 and each year thereafter through levy year 2016, the
16city shall levy a tax annually at a rate on the dollar of the
17value, as equalized or assessed by the Department of Revenue of
18all taxable property within such city that will produce, when
19extended, not to exceed an amount equal to the total amount of
20contributions by the employees to the fund made in the calendar
21year 2 years prior to the year for which the annual applicable
22tax is levied, multiplied by 1.1 for the years 1970, 1971 and
231972; 1.145 for the year 1973; 1.19 for the year 1974; 1.235
24for the year 1975; 1.280 for the year 1976; 1.325 for the year
251977; 1.370 for the years 1978 through 1998; and 1.000 for the
26year 1999 and for each year thereafter through levy year 2016.

 

 

09900SB2437ham003- 48 -LRB099 17093 RPS 51550 a

1Beginning in levy year 2017, and in each year thereafter, the
2levy shall not exceed the amount of the city's total required
3contribution to the Fund for the next payment year, as
4determined under subsection (a-5). For the purposes of this
5Section, the payment year is the year immediately following the
6levy year.
7    The tax shall be levied and collected in like manner with
8the general taxes of the city, and shall be exclusive of and in
9addition to the amount of tax the city is now or may hereafter
10be authorized to levy for general purposes under any laws which
11may limit the amount of tax which the city may levy for general
12purposes. The county clerk of the county in which the city is
13located, in reducing tax levies under the provisions of any Act
14concerning the levy and extension of taxes, shall not consider
15the tax herein provided for as a part of the general tax levy
16for city purposes, and shall not include the same within any
17limitation of the per cent of the assessed valuation upon which
18taxes are required to be extended for such city.
19    Revenues derived from such tax shall be paid to the city
20treasurer of the city as collected and held by the city
21treasurer him for the benefit of the fund.
22    If the payments on account of taxes are insufficient during
23any year to meet the requirements of this Article, the city may
24issue tax anticipation warrants against the current tax levy.
25    The city may continue to use other lawfully available funds
26in lieu of all or part of the levy, as provided under

 

 

09900SB2437ham003- 49 -LRB099 17093 RPS 51550 a

1subsection (f) of this Section.
2    (a-5) (1) Beginning in payment year 2018, the city's
3required annual contribution to the Fund for payment years 2018
4through 2022 shall be: for 2018, $36,000,000; for 2019,
5$48,000,000; for 2020, $60,000,000; for 2021, $72,000,000; and
6for 2022, $84,000,000.
7    (2) For payment years 2023 through 2058, the city's
8required annual contribution to the Fund shall be the amount
9determined by the Fund to be equal to the sum of (i) the city's
10portion of projected normal cost for that fiscal year, plus
11(ii) an amount determined on a level percentage of applicable
12employee payroll basis that is sufficient to bring the total
13actuarial assets of the Fund up to 90% of the total actuarial
14liabilities of the Fund by the end of 2058.
15    (3) For payment years after 2058, the city's required
16annual contribution to the Fund shall be equal to the amount,
17if any, needed to bring the total actuarial assets of the Fund
18up to 90% of the total actuarial liabilities of the Fund as of
19the end of the year. In making the determinations under
20paragraphs (2) and (3) of this subsection, the actuarial
21calculations shall be determined under the entry age normal
22actuarial cost method, and any actuarial gains or losses from
23investment return incurred in a fiscal year shall be recognized
24in equal annual amounts over the 5-year period following the
25fiscal year.
26    To the extent that the city's contribution for any of the

 

 

09900SB2437ham003- 50 -LRB099 17093 RPS 51550 a

1payment years referenced in this subsection is made with
2property taxes, those property taxes shall be levied,
3collected, and paid to the Fund in a like manner with the
4general taxes of the city.
5    (a-10) If the city fails to transmit to the Fund
6contributions required of it under this Article by December 31
7of the year in which such contributions are due, the Fund may,
8after giving notice to the city, certify to the State
9Comptroller the amounts of the delinquent payments, and the
10Comptroller must, beginning in payment year 2018, deduct and
11deposit into the Fund the certified amounts or a portion of
12those amounts from the following proportions of grants of State
13funds to the city:
14        (1) in payment year 2018, one-third of the total amount
15    of any grants of State funds to the city;
16        (2) in payment year 2019, two-thirds of the total
17    amount of any grants of State funds to the city; and
18        (3) in payment year 2020 and each payment year
19    thereafter, the total amount of any grants of State funds
20    to the city.
21    The State Comptroller may not deduct from any grants of
22State funds to the city more than the amount of delinquent
23payments certified to the State Comptroller by the Fund.
24    (b) On or before July 1, 2017, and each July 1 thereafter
25January 10, annually, the board shall certify to notify the
26city council the annual amounts required under of the

 

 

09900SB2437ham003- 51 -LRB099 17093 RPS 51550 a

1requirement of this Article, for which that the tax herein
2provided shall be levied for the following that current year.
3The board shall compute the amounts necessary for the purposes
4of this fund to be credited to the reserves established and
5maintained as herein provided, and shall make an annual
6determination of the amount of the required city contributions;
7and certify the results thereof to the city council.
8    (c) In respect to employees of the city who are transferred
9to the employment of a park district by virtue of "Exchange of
10Functions Act of 1957" the corporate authorities of the park
11district shall annually levy a tax upon all the taxable
12property in the park district at such rate per cent of the
13value of such property, as equalized or assessed by the
14Department of Revenue, as shall be sufficient, when added to
15the amounts deducted from their salaries and otherwise
16contributed by them, to provide the benefits to which they and
17their dependents and beneficiaries are entitled under this
18Article. The city shall not levy a tax hereunder in respect to
19such employees.
20    The tax so levied by the park district shall be in addition
21to and exclusive of all other taxes authorized to be levied by
22the park district for corporate, annuity fund, or other
23purposes. The county clerk of the county in which the park
24district is located, in reducing any tax levied under the
25provisions of any Act concerning the levy and extension of
26taxes shall not consider such tax as part of the general tax

 

 

09900SB2437ham003- 52 -LRB099 17093 RPS 51550 a

1levy for park purposes, and shall not include the same in any
2limitation of the per cent of the assessed valuation upon which
3taxes are required to be extended for the park district. The
4proceeds of the tax levied by the park district, upon receipt
5by the district, shall be immediately paid over to the city
6treasurer of the city for the uses and purposes of the fund.
7    The various sums to be contributed by the city and
8allocated for the purposes of this Article, and any interest to
9be contributed by the city, shall be taken from the revenue
10derived from the taxes authorized in this Section, and no money
11of such city derived from any source other than the levy and
12collection of those taxes or the sale of tax anticipation
13warrants in accordance with the provisions of this Article
14shall be used to provide revenue for this Article, except as
15expressly provided in this Section.
16    If it is not possible for the city to make contributions
17for age and service annuity and widow's annuity concurrently
18with the employee's contributions made for such purposes, such
19city shall make such contributions as soon as possible and
20practicable thereafter with interest thereon at the effective
21rate to the time they shall be made.
22    (d) With respect to employees whose wages are funded as
23participants under the Comprehensive Employment and Training
24Act of 1973, as amended (P.L. 93-203, 87 Stat. 839, P.L.
2593-567, 88 Stat. 1845), hereinafter referred to as CETA,
26subsequent to October 1, 1978, and in instances where the board

 

 

09900SB2437ham003- 53 -LRB099 17093 RPS 51550 a

1has elected to establish a manpower program reserve, the board
2shall compute the amounts necessary to be credited to the
3manpower program reserves established and maintained as herein
4provided, and shall make a periodic determination of the amount
5of required contributions from the City to the reserve to be
6reimbursed by the federal government in accordance with rules
7and regulations established by the Secretary of the United
8States Department of Labor or his designee, and certify the
9results thereof to the City Council. Any such amounts shall
10become a credit to the City and will be used to reduce the
11amount which the City would otherwise contribute during
12succeeding years for all employees.
13    (e) In lieu of establishing a manpower program reserve with
14respect to employees whose wages are funded as participants
15under the Comprehensive Employment and Training Act of 1973, as
16authorized by subsection (d), the board may elect to establish
17a special municipality contribution rate for all such
18employees. If this option is elected, the City shall contribute
19to the Fund from federal funds provided under the Comprehensive
20Employment and Training Act program at the special rate so
21established and such contributions shall become a credit to the
22City and be used to reduce the amount which the City would
23otherwise contribute during succeeding years for all
24employees.
25    (f) In lieu of levying all or a portion of the tax required
26under this Section in any year, the city may deposit with the

 

 

09900SB2437ham003- 54 -LRB099 17093 RPS 51550 a

1city treasurer no later than March 1 of that year for the
2benefit of the fund, to be held in accordance with this
3Article, an amount that, together with the taxes levied under
4this Section for that year, is not less than the amount of the
5city contributions for that year as certified by the board to
6the city council. The deposit may be derived from any source
7legally available for that purpose, including, but not limited
8to, the proceeds of city borrowings. The making of a deposit
9shall satisfy fully the requirements of this Section for that
10year to the extent of the amounts so deposited. Amounts
11deposited under this subsection may be used by the fund for any
12of the purposes for which the proceeds of the tax levied by the
13city under this Section may be used, including the payment of
14any amount that is otherwise required by this Article to be
15paid from the proceeds of that tax.
16(Source: P.A. 90-31, eff. 6-27-97; 90-766, eff. 8-14-98.)
 
17    (40 ILCS 5/11-169.2 new)
18    Sec. 11-169.2. Funding obligation.
19    (a) Beginning January 1, 2018, the city shall be obligated
20to contribute to the Fund in each fiscal year an amount not
21less than the amount determined annually under subsection (a-5)
22of Section 11-169 of this Code. Notwithstanding any other
23provision of law, if the city fails to pay the amount
24guaranteed under this Section on or before December 31 of the
25year in which such amount is due, the retirement board may

 

 

09900SB2437ham003- 55 -LRB099 17093 RPS 51550 a

1bring a mandamus action in the Circuit Court of Cook County to
2compel the city to make the required payment, irrespective of
3other remedies that may be available to the Fund. The
4obligations and causes of action created under this Section
5shall be in addition to any other right or remedy otherwise
6accorded by common law or State or federal law, and nothing in
7this Section shall be construed to deny, abrogate, impair, or
8waive any such common law or statutory right or remedy.
9    (b) In ordering the city to make the required payment, the
10court may order a reasonable payment schedule to enable the
11city to make the required payment without significantly
12imperiling the public health, safety, or welfare. Any payments
13required to be made by the city pursuant to this Section are
14expressly subordinated to the payment of the principal,
15interest, premium, if any, and other payments on or related to
16any bonded debt obligation of the city, either currently
17outstanding or to be issued, for which the source of repayment
18or security thereon is derived directly or indirectly from any
19funds collected or received by the city or collected or
20received on behalf of the city. Payments on such bonded
21obligations include any statutory fund transfers or other
22prefunding mechanisms or formulas set forth, now or hereafter,
23in State law, city ordinance, or bond indentures, into debt
24service funds or accounts of the city related to such bonded
25obligations, consistent with the payment schedules associated
26with such obligations.
 

 

 

09900SB2437ham003- 56 -LRB099 17093 RPS 51550 a

1    (40 ILCS 5/11-170)  (from Ch. 108 1/2, par. 11-170)
2    (Text of Section WITHOUT the changes made by P.A. 98-641,
3which has been held unconstitutional)
4    Sec. 11-170. Contributions for age and service annuities
5for present employees, future entrants and re-entrants.
6    (a) Beginning on the effective date and prior to July 1,
71947, 3 1/4%; and beginning on July 1, 1947 and prior to July
81, 1953, 5%; and beginning July 1, 1953 and prior to January 1,
91972, 6%; and beginning January 1, 1972, 6 1/2% of each payment
10of the salary of each present employee, future entrant and
11re-entrant, except as provided in subsection (a-5) and (a-10),
12shall be contributed to the fund as a deduction from salary for
13age and service annuity.
14    (a-5) Except as provided in subsection (a-10), for an
15employee who on or after January 1, 2011 and prior to this
16amendatory Act of the 99th General Assembly first became a
17member or participant under this Article and made the election
18under item (i) of subsection (d-10) of Section 1-160: prior to
19this amendatory Act of the 99th General Assembly, 6.5%; and
20beginning on the effective date of this amendatory Act of the
2199th General Assembly and prior to January 1, 2018, 7.5%; and
22beginning January 1, 2018, and prior to January 1, 2019, 8.5%;
23and, beginning January 1, 2019 and thereafter, 9.5% of each
24payment of salary shall be contributed to the fund as a
25deduction from salary for age and service annuity. Beginning

 

 

09900SB2437ham003- 57 -LRB099 17093 RPS 51550 a

1with the first pay period on or after the date when the funded
2ratio of the Fund is first determined to have reached the 90%
3funding goal, and each pay period thereafter for as long as the
4Fund maintains a funding ratio of 75% or more, employee
5contributions for age and service annuity for those employees
6who made the election under item (i) of subsection (d-10) of
7Section 1-160 shall be 5.5% of each payment of salary. If the
8funding ratio falls below 75%, then employee contributions for
9age and service annuity for those employees who made the
10election under item (i) of subsection (d-10) shall revert to
119.5% until such time as the Fund once again is determined to
12have reached a funding ratio of 75%, at which time the 5.5% of
13salary employee contribution for age and service annuity shall
14resume. An employee who made the election under item (ii) of
15subsection (d-10) of Section 1-160 shall continue to have the
16contributions for age and service annuities determined under
17subsection (a) of this Section.
18    (a-10) For each employee who on or after the effective date
19of this amendatory Act of the 99th General Assembly first
20becomes a member or participant under this Article, 9.5% of
21each payment of his or her salary shall be contributed to the
22fund as a deduction from salary for age and service annuity.
23Beginning with the first pay period on or after the date when
24the funded ratio of the Fund is first determined to have
25reached the 90% funding goal, and each pay period thereafter
26for as long as the Fund maintains a funding ratio of 75% or

 

 

09900SB2437ham003- 58 -LRB099 17093 RPS 51550 a

1more, employee contributions for age and service annuity for
2each employee subject to this subsection (a-10) shall be 5.5%
3of each payment of salary. If the funding ratio falls below
475%, then employee contributions for age and service annuity
5for each employee subject to this subsection (a-10) shall
6revert to 9.5% until such time as the Fund once again is
7determined to have reached a funding ratio of 75%, at which
8time the 5.5% of salary contribution for age and service
9annuity shall resume.
10    Such deductions beginning on the effective date and prior
11to June 30, 1947, inclusive shall be made for a future entrant
12while he is in service until he attains age 65, and for a
13present employee while he is in service until the amount so
14deducted from his salary with interest at the rate of 4% per
15annum shall be equal to the sum which would have accumulated to
16his credit from sums deducted from his salary if deductions at
17the rate herein stated had been made during his entire service
18until he attained age 65 with interest at 4% per annum for the
19period subsequent to his attainment of age 65. Such deductions
20beginning July 1, 1947 shall be made and continued for
21employees while in the service.
22    (b) (Blank). Concurrently with each employee contribution,
23the city shall contribute beginning on the effective date and
24prior to July 1, 1947, 5 3/4%; and beginning July 1, 1947 and
25prior to July 1, 1953, 7%; and beginning July 1, 1953, 6% of
26each payment of such salary until the employee attains age 65.

 

 

09900SB2437ham003- 59 -LRB099 17093 RPS 51550 a

1    (c) Each employee contribution made prior to the date age
2and service annuity for an employee is fixed and each
3corresponding city contribution shall be allocated to the
4account of and credited to the employee for whose benefit it is
5made.
6    (d) Notwithstanding Section 1-103.1, the changes to this
7Section made by this amendatory Act of the 99th General
8Assembly apply regardless of whether the employee was in active
9service on or after the effective date of this amendatory Act.
10(Source: P.A. 81-1536.)
 
11    (40 ILCS 5/11-197.7 new)
12    Sec. 11-197.7. Payment of annuity other than direct. The
13board, at the written direction and request of any annuitant,
14may, solely as an accommodation to such annuitant, pay the
15annuity due him or her to a bank, savings and loan association,
16or any other financial institution insured by an agency of the
17federal government, for deposit to his or her account, or to a
18bank or trust company for deposit in a trust established by him
19or her for his benefit with such bank, savings and loan
20association, or trust company, and such annuitant may withdraw
21such direction at any time. The board may also, in the case of
22any disability beneficiary or annuitant for whom no estate
23guardian has been appointed and who is confined in a publicly
24owned and operated mental institution, pay such disability
25benefit or annuity due such person to the superintendent or

 

 

09900SB2437ham003- 60 -LRB099 17093 RPS 51550 a

1other head of such institution or hospital for deposit to such
2person's trust fund account maintained for him or her by such
3institution or hospital, if by law such trust fund accounts are
4authorized or recognized.
 
5    (40 ILCS 5/11-223.1)  (from Ch. 108 1/2, par. 11-223.1)
6    Sec. 11-223.1. Assignment for health, hospital and medical
7insurance.
8    The board may provide, by regulation, that any annuitant or
9pensioner, may assign his annuity or disability benefit, or any
10part thereof, for the purpose of premium payment for a
11membership for the annuitant, and his or her spouse and
12children, in a non-profit group hospital care plan or group
13medical surgical plan, provided, however, that the board may,
14in its discretion, terminate the right of assignment. Any such
15hospital or medical insurance plan may include provision for
16the beneficiaries thereof who rely on treatment by spiritual
17means alone through prayer for healing in accordance with the
18tenets and practice of a well recognized religious
19denomination.
20    Upon the adoption of a regulation permitting such
21assignment, the board shall establish and administer a plan for
22the maintenance of the insurance plan membership by the
23annuitant or pensioner.
24(Source: Laws 1965, p. 2290.)
 

 

 

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1    (40 ILCS 5/11-230)  (from Ch. 108 1/2, par. 11-230)
2    Sec. 11-230. Felony conviction.
3    None of the benefits provided in this Article shall be paid
4to any person who is convicted of any felony relating to or
5arising out of or in connection with his service as employee.
6    This section shall not operate to impair any contract or
7vested right heretofore acquired under any law or laws
8continued in this Article, nor to preclude the right to a
9refund.
10    Any refund required under this Article shall be calculated
11based on that person's contributions to the Fund, less the
12amount of any annuity benefit previously received by the person
13or his or beneficiaries. The changes made to this Section by
14this amendatory Act of the 99th General Assembly apply only to
15persons who first become members or participants under this
16Article on or after the effective date of this amendatory Act
17of the 99th General Assembly.
18    All future entrants entering service after July 11, 1955,
19shall be deemed to have consented to the provisions of this
20section as a condition of coverage.
21(Source: Laws 1963, p. 161.)
 
22    (40 ILCS 5/8-173.1 rep.)
23    (40 ILCS 5/11-169.1 rep.)
24    Section 10. The Illinois Pension Code is amended by
25repealing Sections 8-173.1 and 11-169.1.
 

 

 

09900SB2437ham003- 62 -LRB099 17093 RPS 51550 a

1    Section 90. The State Mandates Act is amended by adding
2Section 8.40 as follows:
 
3    (30 ILCS 805/8.40 new)
4    Sec. 8.40. Exempt mandate. Notwithstanding Sections 6 and 8
5of this Act, no reimbursement by the State is required for the
6implementation of any mandate created by this amendatory Act of
7the 99th General Assembly.
 
8    Section 97. Inseverability and severability. The changes
9made by this Act are inseverable, except that the changes made
10to Sections 8-228.5 and 11-125.9 of the Illinois Pension Code
11are severable under Section 1.31 of the Statute on Statutes.
 
12    Section 99. Effective date. This Act takes effect upon
13becoming law.".