Illinois General Assembly - Full Text of HB3474
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Full Text of HB3474  97th General Assembly

HB3474eng 97TH GENERAL ASSEMBLY



 


 
HB3474 EngrossedLRB097 10961 JDS 51576 b

1    AN ACT concerning public employee benefits.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Open Meetings Act is amended by adding
5Section 7.3 as follows:
 
6    (5 ILCS 120/7.3 new)
7    Sec. 7.3. Duty to post information pertaining to benefits
8offered through the Illinois Municipal Retirement Fund.
9    (a) Within 6 business days after an employer participating
10in the Illinois Municipal Retirement Fund approves a budget,
11that employer must post on its website the total compensation
12package for each employee having a total compensation package
13that exceeds $75,000 per year. If the employer does not
14maintain a website, the employer must post a physical copy of
15this information at the principal office of the employer. If an
16employer maintains a website, it may choose to post a physical
17copy of this information at the principal office of the
18employer in lieu of posting the information directly on the
19website; however, the employer must post directions on the
20website on how to access that information.
21    (b) At least 6 days before an employer participating in the
22Illinois Municipal Retirement Fund approves an employee's
23total compensation package that is equal to or in excess of

 

 

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1$150,000 per year, the employer must post on its website the
2total compensation package for that employee. If the employer
3does not maintain a website, the employer shall post a physical
4copy of this information at the principal office of the
5employer. If an employer maintains a website, it may choose to
6post a physical copy of this information at the principal
7office of the employer in lieu of posting the information
8directly on the website; however, the employer must post
9directions on the website on how to access that information.
10    (c) For the purposes of this Section, "total compensation
11package" means payment by the employer to the employee for
12salary, health insurance, a housing allowance, a vehicle
13allowance, a clothing allowance, bonuses, loans, vacation days
14granted, and sick days granted.
 
15    Section 10. The Illinois Pension Code is amended by
16changing Sections 1-160, 7-116, 7-172, 7-205, 14-103.05,
1722-101, and 22-103 and by adding Section 7-225 as follows:
 
18    (40 ILCS 5/1-160)
19    Sec. 1-160. Provisions applicable to new hires.
20    (a) The provisions of this Section apply to a person who,
21on or after January 1, 2011, first becomes a member or a
22participant under any reciprocal retirement system or pension
23fund established under this Code, other than a retirement
24system or pension fund established under Article 2, 3, 4, 5, 6,

 

 

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1or 18 of this Code, notwithstanding any other provision of this
2Code to the contrary, but do not apply to any self-managed plan
3established under this Code, to any person with respect to
4service as a sheriff's law enforcement employee under Article
57, or to any participant of the retirement plan established
6under Section 22-101.
7    (b) "Final average salary" means the average monthly (or
8annual) salary obtained by dividing the total salary or
9earnings calculated under the Article applicable to the member
10or participant during the 96 consecutive months (or 8
11consecutive years) of service within the last 120 months (or 10
12years) of service in which the total salary or earnings
13calculated under the applicable Article was the highest by the
14number of months (or years) of service in that period. For the
15purposes of a person who first becomes a member or participant
16of any retirement system or pension fund to which this Section
17applies on or after January 1, 2011, in this Code, "final
18average salary" shall be substituted for the following:
19        (1) In Articles 7 (except for service as sheriff's law
20    enforcement employees) and 15, "final rate of earnings".
21        (2) In Articles 8, 9, 10, 11, and 12, "highest average
22    annual salary for any 4 consecutive years within the last
23    10 years of service immediately preceding the date of
24    withdrawal".
25        (3) In Article 13, "average final salary".
26        (4) In Article 14, "final average compensation".

 

 

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1        (5) In Article 17, "average salary".
2        (6) In Section 22-207, "wages or salary received by him
3    at the date of retirement or discharge".
4    (b-5) Beginning on January 1, 2011, for all purposes under
5this Code (including without limitation the calculation of
6benefits and employee contributions), the annual earnings,
7salary, or wages (based on the plan year) of a member or
8participant to whom this Section applies shall not exceed
9$106,800; however, that amount shall annually thereafter be
10increased by the lesser of (i) 3% of that amount, including all
11previous adjustments, or (ii) one-half the annual unadjusted
12percentage increase (but not less than zero) in the consumer
13price index-u for the 12 months ending with the September
14preceding each November 1, including all previous adjustments.
15    For the purposes of this Section, "consumer price index-u"
16means the index published by the Bureau of Labor Statistics of
17the United States Department of Labor that measures the average
18change in prices of goods and services purchased by all urban
19consumers, United States city average, all items, 1982-84 =
20100. The new amount resulting from each annual adjustment shall
21be determined by the Public Pension Division of the Department
22of Insurance and made available to the boards of the retirement
23systems and pension funds by November 1 of each year.
24    (c) A member or participant is entitled to a retirement
25annuity upon written application if he or she has attained age
2667 and has at least 10 years of service credit and is otherwise

 

 

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1eligible under the requirements of the applicable Article.
2    A member or participant who has attained age 62 and has at
3least 10 years of service credit and is otherwise eligible
4under the requirements of the applicable Article may elect to
5receive the lower retirement annuity provided in subsection (d)
6of this Section.
7    (d) The retirement annuity of a member or participant who
8is retiring after attaining age 62 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.
11    (e) Any retirement annuity or supplemental annuity shall be
12subject to annual increases on the January 1 occurring either
13on or after the attainment of age 67 or the first anniversary
14of the annuity start date, whichever is later. Each annual
15increase shall be calculated at 3% or one-half the annual
16unadjusted percentage increase (but not less than zero) in the
17consumer price index-u for the 12 months ending with the
18September preceding each November 1, whichever is less, of the
19originally granted retirement annuity. If the annual
20unadjusted percentage change in the consumer price index-u for
21the 12 months ending with the September preceding each November
221 is zero or there is a decrease, then the annuity shall not be
23increased.
24    (f) The initial survivor's or widow's annuity of an
25otherwise eligible survivor or widow of a retired member or
26participant who first became a member or participant on or

 

 

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1after January 1, 2011 shall be in the amount of 66 2/3% of the
2retired member's or participant's retirement annuity at the
3date of death. In the case of the death of a member or
4participant who has not retired and who first became a member
5or participant on or after January 1, 2011, eligibility for a
6survivor's or widow's annuity shall be determined by the
7applicable Article of this Code. The initial benefit shall be
866 2/3% of the earned annuity without a reduction due to age. A
9child's annuity of an otherwise eligible child shall be in the
10amount prescribed under each Article if applicable. Any
11survivor's or widow's annuity shall be increased (1) on each
12January 1 occurring on or after the commencement of the annuity
13if the deceased member died while receiving a retirement
14annuity or (2) in other cases, on each January 1 occurring
15after the first anniversary of the commencement of the annuity.
16Each annual increase shall be calculated at 3% or one-half the
17annual unadjusted percentage increase (but not less than zero)
18in the consumer price index-u for the 12 months ending with the
19September preceding each November 1, whichever is less, of the
20originally granted survivor's annuity. If the annual
21unadjusted percentage change in the consumer price index-u for
22the 12 months ending with the September preceding each November
231 is zero or there is a decrease, then the annuity shall not be
24increased.
25    (g) The benefits in Section 14-110 apply only if the person
26is a State policeman, a fire fighter in the fire protection

 

 

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

 

 

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1system or pension fund subject to this Section on or after the
2effective date of this amendatory Act of the 97th General
3Assembly is receiving a retirement annuity or retirement
4pension under that system or fund and accepts on a contractual
5basis a position to provide services to a governmental entity
6from which he or she has retired, then that person's annuity or
7retirement pension earned as an active employee of the employer
8shall be suspended during that contractual service. A person
9receiving an annuity or retirement pension under this Code
10shall notify the pension fund or retirement system from which
11he or she is receiving an annuity or retirement pension, as
12well as his or her contractual employer, of his or her
13retirement status before accepting contractual employment. A
14person who fails to submit such notification shall be guilty of
15a Class A misdemeanor and required to pay a fine of $1,000.
16Upon termination of that contractual employment, the person's
17retirement annuity or retirement pension payments shall resume
18and, if appropriate, be recalculated under the applicable
19provisions of this Code.
20    (i) Notwithstanding any other provision of this Section, a
21person who first becomes a participant of the retirement system
22established under Article 15 on or after January 1, 2011 shall
23have the option to enroll in the self-managed plan created
24under Section 15-158.2 of this Code.
25    (j) In the case of a conflict between the provisions of
26this Section and any other provision of this Code, the

 

 

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1provisions of this Section shall control.
2(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
 
3    (40 ILCS 5/7-116)  (from Ch. 108 1/2, par. 7-116)
4    Sec. 7-116. "Final rate of earnings":
5    (a) For retirement and survivor annuities, the monthly
6earnings obtained by dividing the total earnings received by
7the employee during the period of either (1) the 48 consecutive
8months of service within the last 120 months of service in
9which his total earnings were the highest or (2) the employee's
10total period of service, by the number of months of service in
11such period.
12    (b) For death benefits, the higher of the rate determined
13under paragraph (a) of this Section or total earnings received
14in the last 12 months of service divided by twelve. If the
15deceased employee has less than 12 months of service, the
16monthly final rate shall be the monthly rate of pay the
17employee was receiving when he began service.
18    (c) For disability benefits, the total earnings of a
19participating employee in the last 12 calendar months of
20service prior to the date he becomes disabled divided by 12.
21    (d) In computing the final rate of earnings: (1) the
22earnings rate for all periods of prior service shall be
23considered equal to the average earnings rate for the last 3
24calendar years of prior service for which creditable service is
25received under Section 7-139 or, if there is less than 3 years

 

 

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

 

 

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

 

 

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1determined for each calendar year for all participating
2municipalities together with all instrumentalities thereof.
3The municipality contribution rate shall be determined for
4participating instrumentalities as if they were participating
5municipalities. The municipality contribution rate shall be
6the sum of the following percentages:
7        1. The percentage of earnings of all the participating
8    employees of all participating municipalities and
9    participating instrumentalities which, if paid over the
10    entire period of their service, will be sufficient when
11    combined with all employee contributions available for the
12    payment of benefits, to provide all annuities for
13    participating employees, and the $3,000 death benefit
14    payable under Sections 7-158 and 7-164, such percentage to
15    be known as the normal cost rate.
16        2. The percentage of earnings of the participating
17    employees of each participating municipality and
18    participating instrumentalities necessary to adjust for
19    the difference between the present value of all benefits,
20    excluding temporary and total and permanent disability and
21    death benefits, to be provided for its participating
22    employees and the sum of its accumulated municipality
23    contributions and the accumulated employee contributions
24    and the present value of expected future employee and
25    municipality contributions pursuant to subparagraph 1 of
26    this paragraph (b). This adjustment shall be spread over

 

 

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1    the remainder of the period that is allowable under
2    generally accepted accounting principles.
3        3. The percentage of earnings of the participating
4    employees of all municipalities and participating
5    instrumentalities necessary to provide the present value
6    of all temporary and total and permanent disability
7    benefits granted during the most recent year for which
8    information is available.
9        4. The percentage of earnings of the participating
10    employees of all participating municipalities and
11    participating instrumentalities necessary to provide the
12    present value of the net single sum death benefits expected
13    to become payable from the reserve established under
14    Section 7-206 during the year for which this rate is fixed.
15        5. The percentage of earnings necessary to meet any
16    deficiency arising in the Terminated Municipality Reserve.
17    (c) A separate municipality contribution rate shall be
18computed for each participating municipality or participating
19instrumentality for its sheriff's law enforcement employees.
20    A separate municipality contribution rate shall be
21computed for the sheriff's law enforcement employees of each
22forest preserve district that elects to have such employees.
23For the period from January 1, 1986 to December 31, 1986, such
24rate shall be the forest preserve district's regular rate plus
252%.
26    In the event that the Board determines that there is an

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1years.
2    (j) Notwithstanding the other provisions of this Section,
3the additional unfunded liability accruing as a result of this
4amendatory Act of the 94th General Assembly shall be amortized
5over a period of 30 years beginning on January 1 of the second
6calendar year following the calendar year in which this
7amendatory Act takes effect, except that the employer may
8provide for a longer amortization period by adopting a
9resolution or ordinance specifying a 35-year or 40-year period
10and submitting a certified copy of the ordinance or resolution
11to the fund no later than June 1 of the calendar year following
12the calendar year in which this amendatory Act takes effect.
13    (k) If the amount of a participating employee's reported
14earnings for any of the 12-month periods used to determine the
15final rate of earnings exceeds the employee's 12 month reported
16earnings with the same employer for the previous year by the
17greater of 6% or 1.5 times the annual increase in the Consumer
18Price Index-U, as established by the United States Department
19of Labor for the preceding September, the participating
20municipality or participating instrumentality that paid those
21earnings shall pay to the Fund, in addition to any other
22contributions required under this Article, the present value of
23the increase in the pension resulting from the portion of the
24increase in salary that is in excess of the greater of 6% or
251.5 times the annual increase in the Consumer Price Index-U, as
26determined by the Fund. This present value shall be computed on

 

 

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1the basis of the actuarial assumptions and tables used in the
2most recent actuarial valuation of the Fund that is available
3at the time of the computation.
4    Whenever it determines that a payment is or may be required
5under this subsection (k), the fund shall calculate the amount
6of the payment and bill the participating municipality or
7participating instrumentality for that amount. The bill shall
8specify the calculations used to determine the amount due. If
9the participating municipality or participating
10instrumentality disputes the amount of the bill, it may, within
1130 days after receipt of the bill, apply to the fund in writing
12for a recalculation. The application must specify in detail the
13grounds of the dispute. Upon receiving a timely application for
14recalculation, the fund shall review the application and, if
15appropriate, recalculate the amount due. The participating
16municipality and participating instrumentality contributions
17required under this subsection (k) may be paid in the form of a
18lump sum within 90 days after receipt of the bill. If the
19participating municipality and participating instrumentality
20contributions are not paid within 90 days after receipt of the
21bill, then interest will be charged at a rate equal to the
22fund's annual actuarially assumed rate of return on investment
23compounded annually from the 91st day after receipt of the
24bill. Payments must be concluded within 3 years after receipt
25of the bill by the participating municipality or participating
26instrumentality.

 

 

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1    When assessing payment for any amount due under this
2subsection (k), the fund shall exclude earnings increases
3resulting from overload or overtime earnings.
4    When assessing payment for any amount due under this
5subsection (k), the fund shall also exclude earnings increases
6attributable to standard employment promotions resulting in
7increased responsibility and workload.
8    This subsection (k) does not apply to earnings increases
9paid to individuals under contracts or collective bargaining
10agreements entered into, amended, or renewed before the
11effective date of this amendatory Act of the 97th General
12Assembly, earnings increases paid to members who are 10 years
13or more from retirement eligibility, or earnings increases
14resulting from an increase in the number of hours required to
15be worked.
16(Source: P.A. 96-1084, eff. 7-16-10; 96-1140, eff. 7-21-10;
17revised 9-16-10.)
 
18    (40 ILCS 5/7-205)  (from Ch. 108 1/2, par. 7-205)
19    Sec. 7-205. Reserves for annuities. Appropriate reserves
20shall be created for payment of all annuities granted under
21this Article at the time such annuities are granted and in
22amounts determined to be necessary under actuarial tables
23adopted by the Board upon recommendation of the actuary of the
24fund. All annuities payable shall be charged to the annuity
25reserve.

 

 

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1    1. Amounts credited to annuity reserves shall be derived by
2transfer of all the employee credits from the appropriate
3employee reserves and by charges to the municipality reserve of
4those municipalities in which the retiring employee has
5accumulated service. If a retiring employee has accumulated
6service in more than one participating municipality or
7participating instrumentality, the aggregate municipality
8charges for non-concurrent service shall be calculated as
9follows:
10        (A) for purposes of calculating the annuity reserve, an
11    annuity will be calculated based on service and adjusted
12    earnings with each employer (without regard to the vesting
13    requirement contained in subsection (a) of Section 7-142);
14    and
15        (B) the difference between the municipality charges
16    for the actual annuity granted and the aggregation of the
17    municipality charges based upon the ratio of each from
18    those calculations to the aggregated total from paragraph
19    (A) of this item 1.
20    Aggregate municipality charges for concurrent service
21shall be prorated based on the employee's earnings. The
22municipality charges for retirement annuities calculated under
23subparagraph a. of paragraph 1. of subsection (a) of Section
247-142 shall be prorated based on actual contributions prorated
25on a basis of the employee's earnings in case of concurrent
26service and creditable service in other cases.

 

 

HB3474 Engrossed- 22 -LRB097 10961 JDS 51576 b

1    2. Supplemental annuities shall be handled as a separate
2annuity and amounts to be credited to the annuity reserve
3therefor shall be derived in the same manner as a regular
4annuity.
5    3. When a retirement annuity is granted to an employee with
6a spouse eligible for a surviving spouse annuity, there shall
7be credited to the annuity reserve an amount to fund the cost
8of both the retirement and surviving spouse annuity as a joint
9and survivors annuity.
10    4. Beginning January 1, 1989, when a retirement annuity is
11awarded, an amount equal to the present value of the $3,000
12death benefit payable upon the death of the annuitant shall be
13transferred to the annuity reserve from the appropriate
14municipality reserves in the same manner as the transfer for
15annuities.
16    5. All annuity reserves shall be revalued annually as of
17December 31. Beginning as of December 31, 1973, adjustment
18required therein by such revaluation shall be charged or
19credited to the earnings and experience variation reserve.
20    6. There shall be credited to the annuity reserve all of
21the payments made by annuitants under Section 7-144.2, plus an
22additional amount from the earnings and experience variation
23reserve to fund the cost of the incremental annuities granted
24to annuitants making these payments.
25    7. As of December 31, 1972, the excess in the annuity
26reserve shall be transferred to the municipality reserves. An

 

 

HB3474 Engrossed- 23 -LRB097 10961 JDS 51576 b

1amount equal to the deficiency in the reserve of participating
2municipalities and participating instrumentalities which have
3no participating employees shall be allocated to their
4reserves. The remainder shall be allocated in amounts
5proportionate to the present value, as of January 1, 1972, of
6annuities of annuitants of the remaining participating
7municipalities and participating instrumentalities.
8(Source: P.A. 89-136, eff. 7-14-95.)
 
9    (40 ILCS 5/7-225 new)
10    Sec. 7-225. Increases in earnings; pension impact
11statement. Before increasing the earnings of an officer,
12executive, or manager by 12% or more:
13        (1) the authorities of the respective employer who are
14    authorizing the increase must contact the Illinois
15    Municipal Retirement Fund as to the effect of that increase
16    in salary on the pension benefits of that participant;
17        (2) the Illinois Municipal Retirement Fund must
18    respond with a written "Pension Impact Statement" stating
19    the effect of that increase in salary on the pension
20    benefits of that participant, and any other relevant effect
21    of the increase, including payment of the present value of
22    the increase in benefits resulting from the portion of any
23    increase in salary that is in excess of 6% as provided
24    under subsection (k) of Section 7-172, if applicable;
25        (3) the authorities authorizing this increase must

 

 

HB3474 Engrossed- 24 -LRB097 10961 JDS 51576 b

1    sign the pension impact statement, acknowledging receipt
2    and understanding of the effects of the increase; and
3        (4) the employer must pay the costs associated with the
4    pension impact statement.
5    The provisions of this Section do not apply to any of the
6following: increases attributable to standard employment
7promotions resulting in increased responsibility and
8workloads; earnings increases paid to individuals under
9contracts or collective bargaining agreements entered into,
10amended, or renewed before the effective date of this
11Amendatory Act; earnings increases paid to members who are 10
12years or more from retirement eligibility; or earnings
13increases resulting from an increase in the number of hours
14required to be worked.
 
15    (40 ILCS 5/14-103.05)  (from Ch. 108 1/2, par. 14-103.05)
16    Sec. 14-103.05. Employee.
17    (a) Any person employed by a Department who receives salary
18for personal services rendered to the Department on a warrant
19issued pursuant to a payroll voucher certified by a Department
20and drawn by the State Comptroller upon the State Treasurer,
21including an elected official described in subparagraph (d) of
22Section 14-104, shall become an employee for purpose of
23membership in the Retirement System on the first day of such
24employment.
25    A person entering service on or after January 1, 1972 and

 

 

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1prior to January 1, 1984 shall become a member as a condition
2of employment and shall begin making contributions as of the
3first day of employment.
4    A person entering service on or after January 1, 1984
5shall, upon completion of 6 months of continuous service which
6is not interrupted by a break of more than 2 months, become a
7member as a condition of employment. Contributions shall begin
8the first of the month after completion of the qualifying
9period.
10    A person employed by the Chicago Metropolitan Agency for
11Planning on the effective date of this amendatory Act of the
1295th General Assembly who was a member of this System as an
13employee of the Chicago Area Transportation Study and makes an
14election under Section 14-104.13 to participate in this System
15for his or her employment with the Chicago Metropolitan Agency
16for Planning.
17    The qualifying period of 6 months of service is not
18applicable to: (1) a person who has been granted credit for
19service in a position covered by the State Universities
20Retirement System, the Teachers' Retirement System of the State
21of Illinois, the General Assembly Retirement System, or the
22Judges Retirement System of Illinois unless that service has
23been forfeited under the laws of those systems; (2) a person
24entering service on or after July 1, 1991 in a noncovered
25position; (3) a person to whom Section 14-108.2a or 14-108.2b
26applies; or (4) a person to whom subsection (a-5) of this

 

 

HB3474 Engrossed- 26 -LRB097 10961 JDS 51576 b

1Section applies.
2    (a-5) A person entering service on or after December 1,
32010 shall become a member as a condition of employment and
4shall begin making contributions as of the first day of
5employment. A person serving in the qualifying period on
6December 1, 2010 will become a member on December 1, 2010 and
7shall begin making contributions as of December 1, 2010.
8    (b) The term "employee" does not include the following:
9        (1) members of the State Legislature, and persons
10    electing to become members of the General Assembly
11    Retirement System pursuant to Section 2-105;
12        (2) incumbents of offices normally filled by vote of
13    the people;
14        (3) except as otherwise provided in this Section, any
15    person appointed by the Governor with the advice and
16    consent of the Senate unless that person elects to
17    participate in this system;
18        (3.1) any person serving as a commissioner of an ethics
19    commission created under the State Officials and Employees
20    Ethics Act unless that person elects to participate in this
21    system with respect to that service as a commissioner;
22        (3.2) any person serving as a part-time employee in any
23    of the following positions: Legislative Inspector General,
24    Special Legislative Inspector General, employee of the
25    Office of the Legislative Inspector General, Executive
26    Director of the Legislative Ethics Commission, or staff of

 

 

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1    the Legislative Ethics Commission, regardless of whether
2    he or she is in active service on or after July 8, 2004
3    (the effective date of Public Act 93-685), unless that
4    person elects to participate in this System with respect to
5    that service; in this item (3.2), a "part-time employee" is
6    a person who is not required to work at least 35 hours per
7    week;
8        (3.3) any person who has made an election under Section
9    1-123 and who is serving either as legal counsel in the
10    Office of the Governor or as Chief Deputy Attorney General;
11        (4) except as provided in Section 14-108.2 or
12    14-108.2c, any person who is covered or eligible to be
13    covered by the Teachers' Retirement System of the State of
14    Illinois, the State Universities Retirement System, or the
15    Judges Retirement System of Illinois;
16        (5) an employee of a municipality or any other
17    political subdivision of the State;
18        (6) any person who becomes an employee after June 30,
19    1979 as a public service employment program participant
20    under the Federal Comprehensive Employment and Training
21    Act and whose wages or fringe benefits are paid in whole or
22    in part by funds provided under such Act;
23        (7) enrollees of the Illinois Young Adult Conservation
24    Corps program, administered by the Department of Natural
25    Resources, authorized grantee pursuant to Title VIII of the
26    "Comprehensive Employment and Training Act of 1973", 29 USC

 

 

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1    993, as now or hereafter amended;
2        (8) enrollees and temporary staff of programs
3    administered by the Department of Natural Resources under
4    the Youth Conservation Corps Act of 1970;
5        (9) any person who is a member of any professional
6    licensing or disciplinary board created under an Act
7    administered by the Department of Professional Regulation
8    or a successor agency or created or re-created after the
9    effective date of this amendatory Act of 1997, and who
10    receives per diem compensation rather than a salary,
11    notwithstanding that such per diem compensation is paid by
12    warrant issued pursuant to a payroll voucher; such persons
13    have never been included in the membership of this System,
14    and this amendatory Act of 1987 (P.A. 84-1472) is not
15    intended to effect any change in the status of such
16    persons;
17        (10) any person who is a member of the Illinois Health
18    Care Cost Containment Council, and receives per diem
19    compensation rather than a salary, notwithstanding that
20    such per diem compensation is paid by warrant issued
21    pursuant to a payroll voucher; such persons have never been
22    included in the membership of this System, and this
23    amendatory Act of 1987 is not intended to effect any change
24    in the status of such persons;
25        (11) any person who is a member of the Oil and Gas
26    Board created by Section 1.2 of the Illinois Oil and Gas

 

 

HB3474 Engrossed- 29 -LRB097 10961 JDS 51576 b

1    Act, and receives per diem compensation rather than a
2    salary, notwithstanding that such per diem compensation is
3    paid by warrant issued pursuant to a payroll voucher; or
4        (12) a person employed by the State Board of Higher
5    Education in a position with the Illinois Century Network
6    as of June 30, 2004, who remains continuously employed
7    after that date by the Department of Central Management
8    Services in a position with the Illinois Century Network
9    and participates in the Article 15 system with respect to
10    that employment; .
11        (13) any person who first becomes a member of the Civil
12    Service Commission on or after the effective date of this
13    amendatory Act of the 97th General Assembly;
14        (14) any person, other than the Director of Employment
15    Security, who first becomes a member of the Board of Review
16    of the Department of Employment Security on or after the
17    effective date of this amendatory Act of the 97th General
18    Assembly;
19        (15) any person who first becomes a member of the Civil
20    Service Commission on or after the effective date of this
21    amendatory Act of the 97th General Assembly;
22        (16) any person who first becomes a member of the
23    Illinois Liquor Control Commission on or after the
24    effective date of this amendatory Act of the 97th General
25    Assembly;
26        (17) any person who first becomes a member of the

 

 

HB3474 Engrossed- 30 -LRB097 10961 JDS 51576 b

1    Secretary of State Merit Commission on or after the
2    effective date of this amendatory Act of the 97th General
3    Assembly;
4        (18) any person who first becomes a member of the Human
5    Rights Commission on or after the effective date of this
6    amendatory Act of the 97th General Assembly;
7        (19) any person who first becomes a member of the State
8    Mining Board on or after the effective date of this
9    amendatory Act of the 97th General Assembly;
10        (20) any person who first becomes a member of the
11    Property Tax Appeal Board on or after the effective date of
12    this amendatory Act of the 97th General Assembly;
13        (21) any person who first becomes a member of the
14    Illinois Racing Board on or after the effective date of
15    this amendatory Act of the 97th General Assembly;
16        (22) any person who first becomes a member of the
17    Department of State Police Merit Board on or after the
18    effective date of this amendatory Act of the 97th General
19    Assembly;
20        (23) any person who first becomes a member of the
21    Illinois State Toll Highway Authority on or after the
22    effective date of this amendatory Act of the 97th General
23    Assembly; or
24        (24) any person who first becomes a member of the
25    Illinois State Board of Elections on or after the effective
26    date of this amendatory Act of the 97th General Assembly.

 

 

HB3474 Engrossed- 31 -LRB097 10961 JDS 51576 b

1    (c) An individual who represents or is employed as an
2officer or employee of a statewide labor organization that
3represents members of this System may participate in the System
4and shall be deemed an employee, provided that (1) the
5individual has previously earned creditable service under this
6Article, (2) the individual files with the System an
7irrevocable election to become a participant within 6 months
8after the effective date of this amendatory Act of the 94th
9General Assembly, and (3) the individual does not receive
10credit for that employment under any other provisions of this
11Code. An employee under this subsection (c) is responsible for
12paying to the System both (i) employee contributions based on
13the actual compensation received for service with the labor
14organization and (ii) employer contributions based on the
15percentage of payroll certified by the board; all or any part
16of these contributions may be paid on the employee's behalf or
17picked up for tax purposes (if authorized under federal law) by
18the labor organization.
19    A person who is an employee as defined in this subsection
20(c) may establish service credit for similar employment prior
21to becoming an employee under this subsection by paying to the
22System for that employment the contributions specified in this
23subsection, plus interest at the effective rate from the date
24of service to the date of payment. However, credit shall not be
25granted under this subsection (c) for any such prior employment
26for which the applicant received credit under any other

 

 

HB3474 Engrossed- 32 -LRB097 10961 JDS 51576 b

1provision of this Code or during which the applicant was on a
2leave of absence.
3(Source: P.A. 95-677, eff. 10-11-07; 96-1490, eff. 1-1-11.)
 
4    (40 ILCS 5/22-101)  (from Ch. 108 1/2, par. 22-101)
5    Sec. 22-101. Retirement Plan for Chicago Transit Authority
6Employees.
7    (a) There shall be established and maintained by the
8Authority created by the "Metropolitan Transit Authority Act",
9approved April 12, 1945, as amended, (referred to in this
10Section as the "Authority") a financially sound pension and
11retirement system adequate to provide for all payments when due
12under such established system or as modified from time to time
13by ordinance of the Chicago Transit Board or collective
14bargaining agreement. For this purpose, the Board must make
15contributions to the established system as required under this
16Section and may make any additional contributions provided for
17by Board ordinance or collective bargaining agreement. The
18participating employees shall make such periodic payments to
19the established system as required under this Section and may
20make any additional contributions provided for by Board
21ordinance or collective bargaining agreement.
22    Provisions shall be made by the Board for all officers,
23except those who first become members on after the effective
24date of this amendatory Act of the 97th General Assembly, and
25employees of the Authority appointed pursuant to the

 

 

HB3474 Engrossed- 33 -LRB097 10961 JDS 51576 b

1"Metropolitan Transit Authority Act" to become, subject to
2reasonable rules and regulations, participants of the pension
3or retirement system with uniform rights, privileges,
4obligations and status as to the class in which such officers
5and employees belong. The terms, conditions and provisions of
6any pension or retirement system or of any amendment or
7modification thereof affecting employees who are members of any
8labor organization may be established, amended or modified by
9agreement with such labor organization, provided the terms,
10conditions and provisions must be consistent with this Act, the
11annual funding levels for the retirement system established by
12law must be met and the benefits paid to future participants in
13the system may not exceed the benefit ceilings set for future
14participants under this Act and the contribution levels
15required by the Authority and its employees may not be less
16than the contribution levels established under this Act.
17    (b) The Board of Trustees shall consist of 11 members
18appointed as follows: (i) 5 trustees shall be appointed by the
19Chicago Transit Board; (ii) 3 trustees shall be appointed by an
20organization representing the highest number of Chicago
21Transit Authority participants; (iii) one trustee shall be
22appointed by an organization representing the second-highest
23number of Chicago Transit Authority participants; (iv) one
24trustee shall be appointed by the recognized coalition
25representatives of participants who are not represented by an
26organization with the highest or second-highest number of

 

 

HB3474 Engrossed- 34 -LRB097 10961 JDS 51576 b

1Chicago Transit Authority participants; and (v) one trustee
2shall be selected by the Regional Transportation Authority
3Board of Directors, and the trustee shall be a professional
4fiduciary who has experience in the area of collectively
5bargained pension plans. Trustees shall serve until a successor
6has been appointed and qualified, or until resignation, death,
7incapacity, or disqualification.
8    Any person appointed as a trustee of the board shall
9qualify by taking an oath of office that he or she will
10diligently and honestly administer the affairs of the system
11and will not knowingly violate or willfully permit the
12violation of any of the provisions of law applicable to the
13Plan, including Sections 1-109, 1-109.1, 1-109.2, 1-110,
141-111, 1-114, and 1-115 of the Illinois Pension Code.
15    Each trustee shall cast individual votes, and a majority
16vote shall be final and binding upon all interested parties,
17provided that the Board of Trustees may require a supermajority
18vote with respect to the investment of the assets of the
19Retirement Plan, and may set forth that requirement in the
20Retirement Plan documents, by-laws, or rules of the Board of
21Trustees. Each trustee shall have the rights, privileges,
22authority, and obligations as are usual and customary for such
23fiduciaries.
24    The Board of Trustees may cause amounts on deposit in the
25Retirement Plan to be invested in those investments that are
26permitted investments for the investment of moneys held under

 

 

HB3474 Engrossed- 35 -LRB097 10961 JDS 51576 b

1any one or more of the pension or retirement systems of the
2State, any unit of local government or school district, or any
3agency or instrumentality thereof. The Board, by a vote of at
4least two-thirds of the trustees, may transfer investment
5management to the Illinois State Board of Investment, which is
6hereby authorized to manage these investments when so requested
7by the Board of Trustees.
8    Notwithstanding any other provision of this Article or any
9law to the contrary, any person who first becomes a member of
10the Chicago Transit Board on or after the effective date of
11this Act shall not be eligible to participate in this
12Retirement Plan.
13    (c) All individuals who were previously participants in the
14Retirement Plan for Chicago Transit Authority Employees shall
15remain participants, and shall receive the same benefits
16established by the Retirement Plan for Chicago Transit
17Authority Employees, except as provided in this amendatory Act
18or by subsequent legislative enactment or amendment to the
19Retirement Plan. For Authority employees hired on or after the
20effective date of this amendatory Act of the 95th General
21Assembly, the Retirement Plan for Chicago Transit Authority
22Employees shall be the exclusive retirement plan and such
23employees shall not be eligible for any supplemental plan,
24except for a deferred compensation plan funded only by employee
25contributions.
26    For all Authority employees who are first hired on or after

 

 

HB3474 Engrossed- 36 -LRB097 10961 JDS 51576 b

1the effective date of this amendatory Act of the 95th General
2Assembly and are participants in the Retirement Plan for
3Chicago Transit Authority Employees, the following terms,
4conditions and provisions with respect to retirement shall be
5applicable:
6        (1) Such participant shall be eligible for an unreduced
7    retirement allowance for life upon the attainment of age 64
8    with 25 years of continuous service.
9        (2) Such participant shall be eligible for a reduced
10    retirement allowance for life upon the attainment of age 55
11    with 10 years of continuous service.
12        (3) For the purpose of determining the retirement
13    allowance to be paid to a retiring employee, the term
14    "Continuous Service" as used in the Retirement Plan for
15    Chicago Transit Authority Employees shall also be deemed to
16    include all pension credit for service with any retirement
17    system established under Article 8 or Article 11 of this
18    Code, provided that the employee forfeits and relinquishes
19    all pension credit under Article 8 or Article 11 of this
20    Code, and the contribution required under this subsection
21    is made by the employee. The Retirement Plan's actuary
22    shall determine the contribution paid by the employee as an
23    amount equal to the normal cost of the benefit accrued, had
24    the service been rendered as an employee, plus interest per
25    annum from the time such service was rendered until the
26    date the payment is made.

 

 

HB3474 Engrossed- 37 -LRB097 10961 JDS 51576 b

1    (d) From the effective date of this amendatory Act through
2December 31, 2008, all participating employees shall
3contribute to the Retirement Plan in an amount not less than 6%
4of compensation, and the Authority shall contribute to the
5Retirement Plan in an amount not less than 12% of compensation.
6    (e)(1) Beginning January 1, 2009 the Authority shall make
7contributions to the Retirement Plan in an amount equal to
8twelve percent (12%) of compensation and participating
9employees shall make contributions to the Retirement Plan in an
10amount equal to six percent (6%) of compensation. These
11contributions may be paid by the Authority and participating
12employees on a payroll or other periodic basis, but shall in
13any case be paid to the Retirement Plan at least monthly.
14    (2) For the period ending December 31, 2040, the amount
15paid by the Authority in any year with respect to debt service
16on bonds issued for the purposes of funding a contribution to
17the Retirement Plan under Section 12c of the Metropolitan
18Transit Authority Act, other than debt service paid with the
19proceeds of bonds or notes issued by the Authority for any year
20after calendar year 2008, shall be treated as a credit against
21the amount of required contribution to the Retirement Plan by
22the Authority under subsection (e)(1) for the following year up
23to an amount not to exceed 6% of compensation paid by the
24Authority in that following year.
25    (3) By September 15 of each year beginning in 2009 and
26ending on December 31, 2039, on the basis of a report prepared

 

 

HB3474 Engrossed- 38 -LRB097 10961 JDS 51576 b

1by an enrolled actuary retained by the Plan, the Board of
2Trustees of the Retirement Plan shall determine the estimated
3funded ratio of the total assets of the Retirement Plan to its
4total actuarially determined liabilities. A report containing
5that determination and the actuarial assumptions on which it is
6based shall be filed with the Authority, the representatives of
7its participating employees, the Auditor General of the State
8of Illinois, and the Regional Transportation Authority. If the
9funded ratio is projected to decline below 60% in any year
10before 2040, the Board of Trustees shall also determine the
11increased contribution required each year as a level percentage
12of payroll over the years remaining until 2040 using the
13projected unit credit actuarial cost method so the funded ratio
14does not decline below 60% and include that determination in
15its report. If the actual funded ratio declines below 60% in
16any year prior to 2040, the Board of Trustees shall also
17determine the increased contribution required each year as a
18level percentage of payroll during the years after the then
19current year using the projected unit credit actuarial cost
20method so the funded ratio is projected to reach at least 60%
21no later than 10 years after the then current year and include
22that determination in its report. Within 60 days after
23receiving the report, the Auditor General shall review the
24determination and the assumptions on which it is based, and if
25he finds that the determination and the assumptions on which it
26is based are unreasonable in the aggregate, he shall issue a

 

 

HB3474 Engrossed- 39 -LRB097 10961 JDS 51576 b

1new determination of the funded ratio, the assumptions on which
2it is based and the increased contribution required each year
3as a level percentage of payroll over the years remaining until
42040 using the projected unit credit actuarial cost method so
5the funded ratio does not decline below 60%, or, in the event
6of an actual decline below 60%, so the funded ratio is
7projected to reach 60% by no later than 10 years after the then
8current year. If the Board of Trustees or the Auditor General
9determine that an increased contribution is required to meet
10the funded ratio required by the subsection, effective January
111 following the determination or 30 days after such
12determination, whichever is later, one-third of the increased
13contribution shall be paid by participating employees and
14two-thirds by the Authority, in addition to the contributions
15required by this subsection (1).
16    (4) For the period beginning 2040, the minimum contribution
17to the Retirement Plan for each fiscal year shall be an amount
18determined by the Board of Trustees of the Retirement Plan to
19be sufficient to bring the total assets of the Retirement Plan
20up to 90% of its total actuarial liabilities by the end of
212059. Participating employees shall be responsible for
22one-third of the required contribution and the Authority shall
23be responsible for two-thirds of the required contribution. In
24making these determinations, the Board of Trustees shall
25calculate the required contribution each year as a level
26percentage of payroll over the years remaining to and including

 

 

HB3474 Engrossed- 40 -LRB097 10961 JDS 51576 b

1fiscal year 2059 using the projected unit credit actuarial cost
2method. A report containing that determination and the
3actuarial assumptions on which it is based shall be filed by
4September 15 of each year with the Authority, the
5representatives of its participating employees, the Auditor
6General of the State of Illinois and the Regional
7Transportation Authority. If the funded ratio is projected to
8fail to reach 90% by December 31, 2059, the Board of Trustees
9shall also determine the increased contribution required each
10year as a level percentage of payroll over the years remaining
11until December 31, 2059 using the projected unit credit
12actuarial cost method so the funded ratio will meet 90% by
13December 31, 2059 and include that determination in its report.
14Within 60 days after receiving the report, the Auditor General
15shall review the determination and the assumptions on which it
16is based and if he finds that the determination and the
17assumptions on which it is based are unreasonable in the
18aggregate, he shall issue a new determination of the funded
19ratio, the assumptions on which it is based and the increased
20contribution required each year as a level percentage of
21payroll over the years remaining until December 31, 2059 using
22the projected unit credit actuarial cost method so the funded
23ratio reaches no less than 90% by December 31, 2059. If the
24Board of Trustees or the Auditor General determine that an
25increased contribution is required to meet the funded ratio
26required by this subsection, effective January 1 following the

 

 

HB3474 Engrossed- 41 -LRB097 10961 JDS 51576 b

1determination or 30 days after such determination, whichever is
2later, one-third of the increased contribution shall be paid by
3participating employees and two-thirds by the Authority, in
4addition to the contributions required by subsection (e)(1).
5    (5) Beginning in 2060, the minimum contribution for each
6year shall be the amount needed to maintain the total assets of
7the Retirement Plan at 90% of the total actuarial liabilities
8of the Plan, and the contribution shall be funded two-thirds by
9the Authority and one-third by the participating employees in
10accordance with this subsection.
11    (f) The Authority shall take the steps necessary to comply
12with Section 414(h)(2) of the Internal Revenue Code of 1986, as
13amended, to permit the pick-up of employee contributions under
14subsections (d) and (e) on a tax-deferred basis.
15    (g) The Board of Trustees shall certify to the Governor,
16the General Assembly, the Auditor General, the Board of the
17Regional Transportation Authority, and the Authority at least
1890 days prior to the end of each fiscal year the amount of the
19required contributions to the retirement system for the next
20retirement system fiscal year under this Section. The
21certification shall include a copy of the actuarial
22recommendations upon which it is based. In addition, copies of
23the certification shall be sent to the Commission on Government
24Forecasting and Accountability and the Mayor of Chicago.
25    (h)(1) As to an employee who first becomes entitled to a
26retirement allowance commencing on or after November 30, 1989,

 

 

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1the retirement allowance shall be the amount determined in
2accordance with the following formula:
3        (A) One percent (1%) of his "Average Annual
4    Compensation in the highest four (4) completed Plan Years"
5    for each full year of continuous service from the date of
6    original employment to the effective date of the Plan; plus
7        (B) One and seventy-five hundredths percent (1.75%) of
8    his "Average Annual Compensation in the highest four (4)
9    completed Plan Years" for each year (including fractions
10    thereof to completed calendar months) of continuous
11    service as provided for in the Retirement Plan for Chicago
12    Transit Authority Employees.
13Provided, however that:
14    (2) As to an employee who first becomes entitled to a
15retirement allowance commencing on or after January 1, 1993,
16the retirement allowance shall be the amount determined in
17accordance with the following formula:
18        (A) One percent (1%) of his "Average Annual
19    Compensation in the highest four (4) completed Plan Years"
20    for each full year of continuous service from the date of
21    original employment to the effective date of the Plan; plus
22        (B) One and eighty hundredths percent (1.80%) of his
23    "Average Annual Compensation in the highest four (4)
24    completed Plan Years" for each year (including fractions
25    thereof to completed calendar months) of continuous
26    service as provided for in the Retirement Plan for Chicago

 

 

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1    Transit Authority Employees.
2Provided, however that:
3    (3) As to an employee who first becomes entitled to a
4retirement allowance commencing on or after January 1, 1994,
5the retirement allowance shall be the amount determined in
6accordance with the following formula:
7        (A) One percent (1%) of his "Average Annual
8    Compensation in the highest four (4) completed Plan Years"
9    for each full year of continuous service from the date of
10    original employment to the effective date of the Plan; plus
11        (B) One and eighty-five hundredths percent (1.85%) of
12    his "Average Annual Compensation in the highest four (4)
13    completed Plan Years" for each year (including fractions
14    thereof to completed calendar months) of continuous
15    service as provided for in the Retirement Plan for Chicago
16    Transit Authority Employees.
17Provided, however that:
18    (4) As to an employee who first becomes entitled to a
19retirement allowance commencing on or after January 1, 2000,
20the retirement allowance shall be the amount determined in
21accordance with the following formula:
22        (A) One percent (1%) of his "Average Annual
23    Compensation in the highest four (4) completed Plan Years"
24    for each full year of continuous service from the date of
25    original employment to the effective date of the Plan; plus
26        (B) Two percent (2%) of his "Average Annual

 

 

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1    Compensation in the highest four (4) completed Plan Years"
2    for each year (including fractions thereof to completed
3    calendar months) of continuous service as provided for in
4    the Retirement Plan for Chicago Transit Authority
5    Employees.
6Provided, however that:
7    (5) As to an employee who first becomes entitled to a
8retirement allowance commencing on or after January 1, 2001,
9the retirement allowance shall be the amount determined in
10accordance with the following formula:
11        (A) One percent (1%) of his "Average Annual
12    Compensation in the highest four (4) completed Plan Years"
13    for each full year of continuous service from the date of
14    original employment to the effective date of the Plan; plus
15        (B) Two and fifteen hundredths percent (2.15%) of his
16    "Average Annual Compensation in the highest four (4)
17    completed Plan Years" for each year (including fractions
18    thereof to completed calendar months) of continuous
19    service as provided for in the Retirement Plan for Chicago
20    Transit Authority Employees.
21    The changes made by this amendatory Act of the 95th General
22Assembly, to the extent that they affect the rights or
23privileges of Authority employees that are currently the
24subject of collective bargaining, have been agreed to between
25the authorized representatives of these employees and of the
26Authority prior to enactment of this amendatory Act, as

 

 

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1evidenced by a Memorandum of Understanding between these
2representatives that will be filed with the Secretary of State
3Index Department and designated as "95-GA-C05". The General
4Assembly finds and declares that those changes are consistent
5with 49 U.S.C. 5333(b) (also known as Section 13(c) of the
6Federal Transit Act) because of this agreement between
7authorized representatives of these employees and of the
8Authority, and that any future amendments to the provisions of
9this amendatory Act of the 95th General Assembly, to the extent
10those amendments would affect the rights and privileges of
11Authority employees that are currently the subject of
12collective bargaining, would be consistent with 49 U.S.C.
135333(b) if and only if those amendments were agreed to between
14these authorized representatives prior to enactment.
15    (i) Early retirement incentive plan; funded ratio.
16        (1) Beginning on the effective date of this Section, no
17    early retirement incentive shall be offered to
18    participants of the Plan unless the Funded Ratio of the
19    Plan is at least 80% or more.
20        (2) For the purposes of this Section, the Funded Ratio
21    shall be the Adjusted Assets divided by the Actuarial
22    Accrued Liability developed in accordance with Statement
23    #25 promulgated by the Government Accounting Standards
24    Board and the actuarial assumptions described in the Plan.
25    The Adjusted Assets shall be calculated based on the
26    methodology described in the Plan.

 

 

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1    (j) Nothing in this amendatory Act of the 95th General
2Assembly shall impair the rights or privileges of Authority
3employees under any other law.
4(Source: P.A. 94-839, eff. 6-6-06; 95-708, eff. 1-18-08.)
 
5    (40 ILCS 5/22-103)
6    Sec. 22-103. Regional Transportation Authority and related
7pension plans.
8    (a) As used in this Section:
9    "Affected pension plan" means a defined-benefit pension
10plan supported in whole or in part by employer contributions
11and maintained by the Regional Transportation Authority, the
12Suburban Bus Division, or the Commuter Rail Division, or any
13combination thereof, under the general authority of the
14Regional Transportation Authority Act, including but not
15limited to any such plan that has been established under or is
16subject to a collective bargaining agreement or is limited to
17employees covered by a collective bargaining agreement.
18"Affected pension plan" does not include any pension fund or
19retirement system subject to Section 22-101 of this Section.
20    "Authority" means the Regional Transportation Authority
21created under the Regional Transportation Authority Act.
22    "Contributing employer" means an employer that is required
23to make contributions to an affected pension plan under the
24terms of that plan.
25    "Funding ratio" means the ratio of an affected pension

 

 

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1plan's assets to the present value of its actuarial
2liabilities, as determined at its latest actuarial valuation in
3accordance with applicable actuarial assumptions and
4recommendations.
5    "Under-funded pension plan" or "under-funded" means an
6affected pension plan that, at the time of its last actuarial
7valuation, has a funding ratio of less than 90%.
8    (b) The contributing employers of each affected pension
9plan have a general duty to make the required employer
10contributions to the affected pension plan in a timely manner
11in accordance with the terms of the plan. A contributing
12employer must make contributions to the affected pension plan
13as required under this subsection and, if applicable,
14subsection (c); a contributing employer may make any additional
15contributions provided for by the board of the employer or
16collective bargaining agreement.
17    (c) In the case of an affected pension plan that is
18under-funded on January 1, 2009 or becomes under-funded at any
19time after that date, the contributing employers shall
20contribute to the affected pension plan, in addition to all
21amounts otherwise required, amounts sufficient to bring the
22funding ratio of the affected pension plan up to 90% in
23accordance with an amortization schedule adopted jointly by the
24contributing employers and the trustee of the affected pension
25plan. The amortization schedule may extend for any period up to
26a maximum of 50 years and shall provide for additional employer

 

 

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1contributions in substantially equal annual amounts over the
2selected period. If the contributing employers and the trustee
3of the affected pension plan do not agree on an appropriate
4period for the amortization schedule within 6 months of the
5date of determination that the plan is under-funded, then the
6amortization schedule shall be based on a period of 50 years.
7    In the case of an affected pension plan that has more than
8one contributing employer, each contributing employer's share
9of the total additional employer contributions required under
10this subsection shall be determined: (i) in proportion to the
11amounts, if any, by which the respective contributing employers
12have failed to meet their contribution obligations under the
13terms of the affected pension plan; or (ii) if all of the
14contributing employers have met their contribution obligations
15under the terms of the affected pension plan, then in the same
16proportion as they are required to contribute under the terms
17of that plan. In the case of an affected pension plan that has
18only one contributing employer, that contributing employer is
19responsible for all of the additional employer contributions
20required under this subsection.
21    If an under-funded pension plan is determined to have
22achieved a funding ratio of at least 90% during the period when
23an amortization schedule is in force under this Section, the
24contributing employers and the trustee of the affected pension
25plan, acting jointly, may cancel the amortization schedule and
26the contributing employers may cease making additional

 

 

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1contributions under this subsection for as long as the affected
2pension plan retains a funding ratio of at least 90%.
3    (d) Beginning January 1, 2009, if the Authority fails to
4pay to an affected pension fund within 30 days after it is due
5(i) any employer contribution that it is required to make as a
6contributing employer, (ii) any additional employer
7contribution that it is required to pay under subsection (c),
8or (iii) any payment that it is required to make under Section
94.02a or 4.02b of the Regional Transportation Authority Act,
10the trustee of the affected pension fund shall promptly so
11notify the Commission on Government Forecasting and
12Accountability, the Mayor of Chicago, the Governor, and the
13General Assembly.
14    (e) For purposes of determining employer contributions,
15assets, and actuarial liabilities under this subsection,
16contributions, assets, and liabilities relating to health care
17benefits shall not be included.
18    (f) This amendatory Act of the 94th General Assembly does
19not affect or impair the right of any contributing employer or
20its employees to collectively bargain the amount or level of
21employee contributions to an affected pension plan, to the
22extent that the plan includes employees subject to collective
23bargaining.
24    (g) Notwithstanding any other provision of this Article or
25any law to the contrary, a person who, on or after the
26effective date of this amendatory Act of the 97th General

 

 

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1Assembly, first becomes a director on the Suburban Bus Board,
2the Commuter Rail Board, or the Board of Directors of the
3Regional Transportation Authority shall not be eligible to
4participate in an affected pension plan.
5(Source: P.A. 94-839, eff. 6-6-06.)
 
6    Section 15. The State Mandates Act is amended by adding
7Section 8.35 as follows:
 
8    (30 ILCS 805/8.35 new)
9    Sec. 8.35. Exempt mandate. Notwithstanding Sections 6 and 8
10of this Act, no reimbursement by the State is required for the
11implementation of any mandate created by this amendatory Act of
12the 97th General Assembly.