Full Text of HB1956 97th General Assembly
HB1956eng 97TH GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning public employee benefits.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Pension Code is amended by changing | 5 | | Sections 7-135, 7-137, 7-141, and 7-144 as follows:
| 6 | | (40 ILCS 5/7-135) (from Ch. 108 1/2, par. 7-135)
| 7 | | Sec. 7-135. Authorized agents.
| 8 | | (a) Each participating municipality and participating
| 9 | | instrumentality shall appoint an authorized agent who shall | 10 | | have the
powers and duties set forth in this section. In | 11 | | absence of such
appointment, the duties of the authorized agent | 12 | | shall devolve upon the
clerk or secretary of the municipality | 13 | | or instrumentality and in the
case of township school trustees | 14 | | upon the township school treasurer. In
townships the Authorized | 15 | | Agent shall be the township supervisor.
| 16 | | (b) The authorized agent shall have the following powers | 17 | | and duties:
| 18 | | 1. To certify to the fund whether or not a given person | 19 | | is
authorized to participate in the fund;
| 20 | | 2. To certify to the fund when a participating employee | 21 | | is on a
leave of absence authorized by the municipality;
| 22 | | 3. To request the proper officer to cause employee | 23 | | contributions to
be withheld from earnings and transmitted |
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| 1 | | to the fund;
| 2 | | 4. To request the proper officer to cause municipality | 3 | | contributions
to be forwarded to the fund promptly;
| 4 | | 5. To forward promptly to all participating employees | 5 | | any
communications from the fund for such employees;
| 6 | | 6. To forward promptly to the fund all applications, | 7 | | claims, reports
and other communications delivered to him | 8 | | by participating employees;
| 9 | | 7. To perform all duties related to the administration | 10 | | of this
retirement system as requested by the fund and the | 11 | | governing body of his
municipality.
| 12 | | (c) The governing body of each participating municipality | 13 | | and
participating instrumentality may delegate any or all of | 14 | | the following
powers and duties to its authorized agent , but | 15 | | only if the agent is a
member of the fund :
| 16 | | 1. To file a petition for nomination of an executive | 17 | | trustee of the
fund.
| 18 | | 2. To cast the ballot for election of an executive | 19 | | trustee of the
fund.
| 20 | | If a governing body does not authorize its agent to perform | 21 | | the
powers and duties set forth in this paragraph (c), they | 22 | | shall be
performed by the governing body itself, unless the | 23 | | governing body by
resolution duly certified to the fund | 24 | | delegates them to some other
officer or employee.
| 25 | | (d) The delivery of any communication or document by an | 26 | | employee or
a participating municipality or participating |
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| 1 | | instrumentality to its
authorized agent shall not constitute | 2 | | delivery to the fund.
| 3 | | (Source: P.A. 87-740.)
| 4 | | (40 ILCS 5/7-137) (from Ch. 108 1/2, par. 7-137)
| 5 | | Sec. 7-137. Participating and covered employees.
| 6 | | (a) The persons described in this paragraph (a) shall be | 7 | | included within
and be subject to this Article and eligible to | 8 | | benefits from this fund,
beginning upon the dates hereinafter | 9 | | specified:
| 10 | | 1. Except as to the employees specifically excluded | 11 | | under the
provisions of this Article, all persons who are | 12 | | employees of any
municipality (or instrumentality thereof) | 13 | | or participating
instrumentality on the effective date of | 14 | | participation of the
municipality or participating | 15 | | instrumentality beginning upon such
effective date.
| 16 | | 2. Except as to the employees specifically excluded | 17 | | under the
provisions of this Article, all persons, who | 18 | | became employees of any
participating municipality (or | 19 | | instrumentality thereof) or participating
instrumentality | 20 | | after the effective date of participation of such
| 21 | | municipality or participating instrumentality, beginning | 22 | | upon the date
such person becomes an employee.
| 23 | | 3. All persons who file notice with the board as | 24 | | provided in
paragraph (b) 2 and 3 of this Section, | 25 | | beginning upon the date of filing
such notice.
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| 1 | | (b) The following described persons shall not be considered
| 2 | | participating employees eligible for benefits from this fund, | 3 | | but shall
be included within and be subject to this Article | 4 | | (each of the
descriptions is not exclusive but is cumulative):
| 5 | | 1. Any person who occupies an office or is employed in | 6 | | a position
normally requiring performance of duty during | 7 | | less than 600 hours a year
for a municipality (including | 8 | | all instrumentalities thereof) or a
participating | 9 | | instrumentality. If a school treasurer performs services
| 10 | | for more than one school district, the total number of | 11 | | hours of service
normally required for the several school | 12 | | districts shall be considered
to determine whether he | 13 | | qualifies under this paragraph;
| 14 | | 2. Any person who holds elective office unless he has | 15 | | elected while
in that office in a written notice on file | 16 | | with the board to become a
participating employee;
| 17 | | 3. Any person working for a city hospital unless any | 18 | | such person,
while in active employment, has elected in a | 19 | | written notice on file with
the board to become a | 20 | | participating employee and notification thereof is
| 21 | | received by the board;
| 22 | | 4. Any person who becomes an employee after June 30, | 23 | | 1979 as a public
service employment program participant | 24 | | under the federal Comprehensive
Employment and Training | 25 | | Act and whose wages or fringe benefits are paid in
whole or | 26 | | in part by funds provided under such Act;
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| 1 | | 5. Any person who is actively employed by a | 2 | | municipality on its effective date of participation in the | 3 | | Fund if that municipality (i) has at least 35 employees on | 4 | | its effective date of participation; (ii) is located in a | 5 | | county with at least 2,000,000 inhabitants; and (iii) | 6 | | maintains an independent defined benefit pension plan for | 7 | | the benefit of its eligible employees, unless the person | 8 | | files with the board within 90 days after the | 9 | | municipality's effective date of participation an | 10 | | irrevocable election to participate.
| 11 | | (c) Any person electing to be a participating employee, | 12 | | pursuant to
paragraph (b) of this Section may not change such | 13 | | election,
except as provided in Section 7-137.1.
| 14 | | (d) Any employee who occupied the position of school nurse | 15 | | in any
participating municipality on August 8, 1961 and | 16 | | continuously thereafter
until the effective date of the | 17 | | exercise of the option authorized by
this subparagraph, who on | 18 | | August 7, 1961 was a member of the Teachers'
Retirement System | 19 | | of Illinois, by virtue of certification by the
Department of | 20 | | Registration and Education as a public health nurse, may
elect | 21 | | to terminate participation in this Fund in order to | 22 | | re-establish
membership in such System. The election may be | 23 | | exercised by filing
written notice thereof with the Board or | 24 | | with the Board of Trustees of
said Teachers' Retirement System, | 25 | | not later than September 30, 1963, and
shall be effective on | 26 | | the first day of the calendar month next following
the month in |
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| 1 | | which the notice was filed. If the written notice is filed
with | 2 | | such Teachers' Retirement System, that System shall | 3 | | immediately
notify this Fund, but neither failure nor delay in | 4 | | notification shall
affect the validity of the employee's | 5 | | election. If the option is
exercised, the Fund shall notify | 6 | | such Teachers' Retirement System of
such fact and transfer to | 7 | | that system the amounts contributed by the
employee to this | 8 | | Fund, including interest at 3% per annum, but excluding
| 9 | | contributions applicable to social security coverage during | 10 | | the period
beginning August 8, 1961 to the effective date of | 11 | | the employee's
election. Participation in this Fund as to any | 12 | | credits on or after
August 8, 1961 and up to the effective date | 13 | | of the employee's election
shall terminate on such effective | 14 | | date.
| 15 | | (e) Any participating municipality or participating | 16 | | instrumentality,
other than a school district or special | 17 | | education joint agreement created
under Section 10-22.31 of the | 18 | | School Code, may, by a resolution or
ordinance duly adopted by | 19 | | its governing body, elect to exclude from
participation and | 20 | | eligibility for benefits all persons who are employed
after the | 21 | | effective date of such resolution or ordinance and who occupy | 22 | | an
office or are employed in a position normally requiring | 23 | | performance of duty
for less than 1000 hours per year for the | 24 | | participating municipality
(including all instrumentalities | 25 | | thereof) or participating instrumentality
except for persons | 26 | | employed in a position normally requiring performance of
duty |
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| 1 | | for 600 hours or more per year (i) by such participating | 2 | | municipality
or participating instrumentality prior to the | 3 | | effective date of the
resolution or ordinance and (ii) by a
| 4 | | participating municipality or participating instrumentality, | 5 | | which had not
adopted such a resolution when the person was | 6 | | employed, and the function
served by the employee's position is | 7 | | assumed by another participating
municipality or participating | 8 | | instrumentality. A participating municipality or
participating | 9 | | instrumentality included in and subject to this Article after
| 10 | | January 1, 1982 may adopt such resolution or ordinance only | 11 | | prior to the
date it becomes included in and subject to this | 12 | | Article. Notwithstanding
the foregoing, a participating | 13 | | municipality or participating
instrumentality which is formed | 14 | | solely to succeed to the functions of a
participating | 15 | | municipality or participating instrumentality shall be
| 16 | | considered to have adopted any such resolution or ordinance | 17 | | which may have
been applicable to the employees performing such | 18 | | functions. The election
made by the resolution or ordinance | 19 | | shall take effect at the time specified
in the resolution or | 20 | | ordinance, and once effective shall be irrevocable.
| 21 | | (Source: P.A. 96-1140, eff. 7-21-10.)
| 22 | | (40 ILCS 5/7-141) (from Ch. 108 1/2, par. 7-141)
| 23 | | Sec. 7-141. Retirement annuities - Conditions. Retirement | 24 | | annuities shall be payable as hereinafter set forth:
| 25 | | (a) A participating employee who, regardless of cause, is |
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| 1 | | separated
from the service of all participating municipalities | 2 | | and
instrumentalities thereof and participating | 3 | | instrumentalities shall be
entitled to a retirement annuity | 4 | | provided:
| 5 | | 1. He is at least age 55, or in the case of a person who | 6 | | is eligible
to have his annuity calculated under Section | 7 | | 7-142.1, he is at least age 50;
| 8 | | 2. He is (i) an employee who was employed by any | 9 | | participating
municipality
or participating | 10 | | instrumentality which had not elected to exclude persons
| 11 | | employed in positions normally requiring performance of | 12 | | duty for less than 1000
hours per year or was employed in a | 13 | | position normally requiring performance of
duty for 600 | 14 | | hours or more per year prior to such election by any
| 15 | | participating municipality or participating | 16 | | instrumentality included in
and subject to this Article on | 17 | | or before the effective date of this
amendatory Act of 1981 | 18 | | which made such election and is not entitled to
receive | 19 | | earnings for employment in a position normally requiring
| 20 | | performance of duty for 600 hours or more per year for any | 21 | | participating
municipality and instrumentalities thereof | 22 | | and participating instrumentality;
or (ii) an employee who | 23 | | was employed only by a participating municipality
or | 24 | | participating instrumentality, or participating | 25 | | municipalities or
participating instrumentalities, which | 26 | | have elected to exclude persons in
positions normally |
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| 1 | | requiring performance of duty for less than 1000 hours
per | 2 | | year after the effective date of such exclusion or which | 3 | | are included
under and subject to the Article after the | 4 | | effective date of this
amendatory Act of 1981 and elects to | 5 | | exclude persons in such positions, and
is not entitled to | 6 | | receive earnings for employment in a position requiring | 7 | | him, or entitling him to elect, to be a participating | 8 | | employee normally
requiring performance of duty for 1000 | 9 | | hours or more per year by such a
participating municipality | 10 | | or participating instrumentality ;
| 11 | | 3. The amount of his annuity, before the application of | 12 | | paragraph (b) of
Section 7-142 is at least $10 per month;
| 13 | | 4. If he first became a participating employee after | 14 | | December 31,
1961, he has at least 8 years of service. This | 15 | | service requirement shall not
apply to any participating | 16 | | employee, regardless of participation date, if the
General | 17 | | Assembly terminates the Fund.
| 18 | | (b) Retirement annuities shall be payable:
| 19 | | 1. As provided in Section 7-119;
| 20 | | 2. Except as provided in item 3, upon receipt by the | 21 | | fund of a written
application. The effective date may be | 22 | | not more than one
year prior to the date of the receipt by | 23 | | the fund of the application;
| 24 | | 3. Upon attainment of age 70 1/2 if the member (i) is | 25 | | no longer in
service,
and (ii) is otherwise entitled to an | 26 | | annuity under this Article;
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| 1 | | 4. To the beneficiary of the deceased annuitant for the | 2 | | unpaid amount
accrued to date of death, if any.
| 3 | | (Source: P.A. 91-887, eff. 7-6-00.)
| 4 | | (40 ILCS 5/7-144) (from Ch. 108 1/2, par. 7-144)
| 5 | | Sec. 7-144. Retirement annuities-Suspended during | 6 | | employment.
| 7 | | (a) (1) If any person described in clause (i) of subsection | 8 | | (a)
2 of Section 7-141
receiving any annuity again becomes an | 9 | | employee
and receives earnings from employment in a position | 10 | | normally requiring
performance of duty during 600 hours or more | 11 | | per year for any
participating municipality and | 12 | | instrumentalities thereof or
participating instrumentality; or | 13 | | (2) if any person described in
clause (ii) of subsection (a) 2 | 14 | | of Section 7-141 receiving any annuity returns
to employment in | 15 | | a position requiring him, or entitling him to elect, to
become | 16 | | a participating employee , ; then the annuity payable to such | 17 | | employee
shall be suspended as of the 1st day of the month | 18 | | coincidental with or
next following the date upon which such | 19 | | person becomes such an employee.
Upon proper qualification of | 20 | | the participating employee payment of such
annuity may be | 21 | | resumed on the 1st day of the month following such
| 22 | | qualification and upon proper application therefor. The | 23 | | participating
employee in such case shall be entitled to a | 24 | | supplemental annuity
arising from service and credits earned | 25 | | subsequent to such re-entry as a
participating employee.
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| 1 | | (b) Supplemental annuities to persons who return to service | 2 | | for less
than 48 months shall be computed under the provisions | 3 | | of Sections 7-141,
7-142 and 7-143. In determining whether an | 4 | | employee is eligible for an
annuity which requires a minimum | 5 | | period of service, his entire period of
service shall be taken | 6 | | into consideration but the supplemental annuity
shall be based | 7 | | on earnings and service in the supplemental period only.
The | 8 | | effective date of the suspended and supplemental annuity for | 9 | | the
purpose of increases after retirement shall be considered | 10 | | to be the
effective date of the suspended annuity.
| 11 | | (c) Supplemental annuities to persons who return to service | 12 | | for 48
months or more shall be a monthly amount determined as | 13 | | follows:
| 14 | | (1) An amount shall be computed under subparagraph b of | 15 | | paragraph
(1) of subsection (a) of Section 7-142, | 16 | | considering all of the service
credits of the employee;
| 17 | | (2) The actuarial value in monthly payments for life of | 18 | | the annuity
payments made before suspension shall be | 19 | | determined and subtracted from
the amount determined in (1) | 20 | | above;
| 21 | | (3) The monthly amount of the suspended annuity, with | 22 | | any applicable
increases after retirement computed from | 23 | | the effective date to the date
of reinstatement, shall be | 24 | | subtracted from the amount determined in (2)
above and the | 25 | | remainder shall be the amount of the supplemental annuity
| 26 | | provided that this amount shall not be less than the amount |
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| 1 | | computed under
subsection (b) of this Section.
| 2 | | (4) The suspended annuity shall be reinstated at an | 3 | | amount including
any increases after retirement from the | 4 | | effective date to date of
reinstatement.
| 5 | | (5) The effective date of the combined suspended and | 6 | | supplemental
annuities for the purposes of increases after | 7 | | retirement shall be
considered to be the effective date of | 8 | | the supplemental annuity.
| 9 | | (Source: P.A. 82-459 .)
| 10 | | Section 90. The State Mandates Act is amended by adding | 11 | | Section 8.35 as follows: | 12 | | (30 ILCS 805/8.35 new) | 13 | | Sec. 8.35. Exempt mandate. Notwithstanding Sections 6 and 8 | 14 | | of this Act, no reimbursement by the State is required for the | 15 | | implementation of any mandate created by this amendatory Act of | 16 | | the 97th General Assembly.
| 17 | | Section 99. Effective date. This Act takes effect upon | 18 | | becoming law.
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