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

HB3474ham004 97TH GENERAL ASSEMBLY

Rep. Karen May

Filed: 4/11/2011

 

 


 

 


 
09700HB3474ham004LRB097 10961 JDS 54300 a

1
AMENDMENT TO HOUSE BILL 3474

2    AMENDMENT NO. ______. Amend House Bill 3474 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Open Meetings Act is amended by adding
5Section 7.3 as follows:
 
6    (5 ILCS 120/7.3 new)
7    Sec. 7.3. Duty to post information pertaining to benefits
8offered through the Illinois Municipal Retirement Fund.
9    (a) Within 6 business days after an employer participating
10in the Illinois Municipal Retirement Fund approves a budget,
11that employer must post on its website the total compensation
12package for each employee having a total compensation package
13that exceeds $75,000 per year. If the employer does not
14maintain a website, the employer must post a physical copy of
15this information at the principal office of the employer. If an
16employer maintains a website, it may choose to post a physical

 

 

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1copy of this information at the principal office of the
2employer in lieu of posting the information directly on the
3website; however, the employer must post directions on the
4website on how to access that information.
5    (b) At least 6 days before an employer participating in the
6Illinois Municipal Retirement Fund approves an employee's
7total compensation package that is equal to or in excess of
8$150,000 per year, the employer must post on its website the
9total compensation package for that employee. If the employer
10does not maintain a website, the employer shall post a physical
11copy of this information at the principal office of the
12employer. If an employer maintains a website, it may choose to
13post a physical copy of this information at the principal
14office of the employer in lieu of posting the information
15directly on the website; however, the employer must post
16directions on the website on how to access that information.
17    (c) For the purposes of this Section, "total compensation
18package" means payment by the employer to the employee for
19salary, health insurance, a housing allowance, a vehicle
20allowance, a clothing allowance, bonuses, loans, vacation days
21granted, and sick days granted.
 
22    Section 10. The Illinois Pension Code is amended by
23changing Sections 1-160, 7-116, 7-172, 7-205, 14-103.05,
2422-101, and 22-103 and by adding Sections 7-225 as follows:
 

 

 

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1    (40 ILCS 5/1-160)
2    Sec. 1-160. Provisions applicable to new hires.
3    (a) The provisions of this Section apply to a person who,
4on or after January 1, 2011, first becomes a member or a
5participant under any reciprocal retirement system or pension
6fund established under this Code, other than a retirement
7system or pension fund established under Article 2, 3, 4, 5, 6,
8or 18 of this Code, notwithstanding any other provision of this
9Code to the contrary, but do not apply to any self-managed plan
10established under this Code, to any person with respect to
11service as a sheriff's law enforcement employee under Article
127, or to any participant of the retirement plan established
13under Section 22-101.
14    (b) "Final average salary" means the average monthly (or
15annual) salary obtained by dividing the total salary or
16earnings calculated under the Article applicable to the member
17or participant during the 96 consecutive months (or 8
18consecutive years) of service within the last 120 months (or 10
19years) of service in which the total salary or earnings
20calculated under the applicable Article was the highest by the
21number of months (or years) of service in that period. For the
22purposes of a person who first becomes a member or participant
23of any retirement system or pension fund to which this Section
24applies on or after January 1, 2011, in this Code, "final
25average salary" shall be substituted for the following:
26        (1) In Articles 7 (except for service as sheriff's law

 

 

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1    enforcement employees) and 15, "final rate of earnings".
2        (2) In Articles 8, 9, 10, 11, and 12, "highest average
3    annual salary for any 4 consecutive years within the last
4    10 years of service immediately preceding the date of
5    withdrawal".
6        (3) In Article 13, "average final salary".
7        (4) In Article 14, "final average compensation".
8        (5) In Article 17, "average salary".
9        (6) In Section 22-207, "wages or salary received by him
10    at the date of retirement or discharge".
11    (b-5) Beginning on January 1, 2011, for all purposes under
12this Code (including without limitation the calculation of
13benefits and employee contributions), the annual earnings,
14salary, or wages (based on the plan year) of a member or
15participant to whom this Section applies shall not exceed
16$106,800; however, that amount shall annually thereafter be
17increased by the lesser of (i) 3% of that amount, including all
18previous adjustments, or (ii) one-half the annual unadjusted
19percentage increase (but not less than zero) in the consumer
20price index-u for the 12 months ending with the September
21preceding each November 1, including all previous adjustments.
22    For the purposes of this Section, "consumer price index-u"
23means the index published by the Bureau of Labor Statistics of
24the United States Department of Labor that measures the average
25change in prices of goods and services purchased by all urban
26consumers, United States city average, all items, 1982-84 =

 

 

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1100. The new amount resulting from each annual adjustment shall
2be determined by the Public Pension Division of the Department
3of Insurance and made available to the boards of the retirement
4systems and pension funds by November 1 of each year.
5    (c) A member or participant is entitled to a retirement
6annuity upon written application if he or she has attained age
767 and has at least 10 years of service credit and is otherwise
8eligible under the requirements of the applicable Article.
9    A member or participant who has attained age 62 and has at
10least 10 years of service credit and is otherwise eligible
11under the requirements of the applicable Article may elect to
12receive the lower retirement annuity provided in subsection (d)
13of this Section.
14    (d) The retirement annuity of a member or participant who
15is retiring after attaining age 62 with at least 10 years of
16service credit shall be reduced by one-half of 1% for each full
17month that the member's age is under age 67.
18    (e) Any retirement annuity or supplemental annuity shall be
19subject to annual increases on the January 1 occurring either
20on or after the attainment of age 67 or the first anniversary
21of the annuity start date, whichever is later. Each annual
22increase shall be calculated at 3% or one-half the annual
23unadjusted percentage increase (but not less than zero) in the
24consumer price index-u for the 12 months ending with the
25September preceding each November 1, whichever is less, of the
26originally granted retirement annuity. If the annual

 

 

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1unadjusted percentage change in the consumer price index-u for
2the 12 months ending with the September preceding each November
31 is zero or there is a decrease, then the annuity shall not be
4increased.
5    (f) The initial survivor's or widow's annuity of an
6otherwise eligible survivor or widow of a retired member or
7participant who first became a member or participant on or
8after January 1, 2011 shall be in the amount of 66 2/3% of the
9retired member's or participant's retirement annuity at the
10date of death. In the case of the death of a member or
11participant who has not retired and who first became a member
12or participant on or after January 1, 2011, eligibility for a
13survivor's or widow's annuity shall be determined by the
14applicable Article of this Code. The initial benefit shall be
1566 2/3% of the earned annuity without a reduction due to age. A
16child's annuity of an otherwise eligible child shall be in the
17amount prescribed under each Article if applicable. Any
18survivor's or widow's annuity shall be increased (1) on each
19January 1 occurring on or after the commencement of the annuity
20if the deceased member died while receiving a retirement
21annuity or (2) in other cases, on each January 1 occurring
22after the first anniversary of the commencement of the annuity.
23Each annual increase shall be calculated at 3% or one-half the
24annual unadjusted percentage increase (but not less than zero)
25in the consumer price index-u for the 12 months ending with the
26September preceding each November 1, whichever is less, of the

 

 

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

 

 

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1person's retirement annuity or retirement pension under that
2system or fund shall be suspended during that employment. Upon
3termination of that employment, the person's retirement
4annuity or retirement pension payments shall resume and be
5recalculated if recalculation is provided for under the
6applicable Article of this Code.
7    If a person who first becomes a member of a retirement
8system or pension fund subject to this Section on or after the
9effective date of this amendatory Act of the 97th General
10Assembly is receiving a retirement annuity or retirement
11pension under that system or fund and accepts on a contractual
12basis a position to provide services to a governmental entity
13from which he or she has retired, then that person's annuity or
14retirement pension earned as an active employee of the employer
15shall be suspended during that contractual service. A person
16receiving an annuity or retirement pension under this Code
17shall notify the pension fund or retirement system from which
18he or she is receiving an annuity or retirement pension, as
19well as his or her contractual employer, of his or her
20retirement status before accepting contractual employment. A
21person who fails to submit such notification shall be a guilty
22of a Class A misdemeanor and required to pay a fine of $1,000.
23Upon termination of that contractual employment, the person's
24retirement annuity or retirement pension payments shall resume
25and, if appropriate, be recalculated under the applicable
26provisions of this Code.

 

 

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1    (i) Notwithstanding any other provision of this Section, a
2person who first becomes a participant of the retirement system
3established under Article 15 on or after January 1, 2011 shall
4have the option to enroll in the self-managed plan created
5under Section 15-158.2 of this Code.
6    (j) In the case of a conflict between the provisions of
7this Section and any other provision of this Code, the
8provisions of this Section shall control.
9(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
 
10    (40 ILCS 5/7-116)  (from Ch. 108 1/2, par. 7-116)
11    Sec. 7-116. "Final rate of earnings":
12    (a) For retirement and survivor annuities, the monthly
13earnings obtained by dividing the total earnings received by
14the employee during the period of either (1) the 48 consecutive
15months of service within the last 120 months of service in
16which his total earnings were the highest or (2) the employee's
17total period of service, by the number of months of service in
18such period.
19    (b) For death benefits, the higher of the rate determined
20under paragraph (a) of this Section or total earnings received
21in the last 12 months of service divided by twelve. If the
22deceased employee has less than 12 months of service, the
23monthly final rate shall be the monthly rate of pay the
24employee was receiving when he began service.
25    (c) For disability benefits, the total earnings of a

 

 

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1participating employee in the last 12 calendar months of
2service prior to the date he becomes disabled divided by 12.
3    (d) In computing the final rate of earnings: (1) the
4earnings rate for all periods of prior service shall be
5considered equal to the average earnings rate for the last 3
6calendar years of prior service for which creditable service is
7received under Section 7-139 or, if there is less than 3 years
8of creditable prior service, the average for the total prior
9service period for which creditable service is received under
10Section 7-139; (2) for out of state service and authorized
11leave, the earnings rate shall be the rate upon which service
12credits are granted; (3) periods of military leave shall not be
13considered; (4) the earnings rate for all periods of disability
14shall be considered equal to the rate of earnings upon which
15the employee's disability benefits are computed for such
16periods; (5) the earnings to be considered for each of the
17final three months of the final earnings period for persons who
18first became participants before the effective date of this
19amendatory Act of the 97th General Assembly and the earnings to
20be considered for each of the final 24 months for participants
21who first become participants on or after the effective date of
22the this amendatory Act of the 97th General Assembly shall not
23exceed 125% of the highest earnings of any other month in the
24final earnings period; and (6) the annual amount of final rate
25of earnings shall be the monthly amount multiplied by the
26number of months of service normally required by the position

 

 

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1in a year.
2(Source: P.A. 90-448, eff. 8-16-97.)
 
3    (40 ILCS 5/7-172)  (from Ch. 108 1/2, par. 7-172)
4    Sec. 7-172. Contributions by participating municipalities
5and participating instrumentalities.
6    (a) Each participating municipality and each participating
7instrumentality shall make payment to the fund as follows:
8        1. municipality contributions in an amount determined
9    by applying the municipality contribution rate to each
10    payment of earnings paid to each of its participating
11    employees;
12        2. an amount equal to the employee contributions
13    provided by paragraphs (a) and (b) of Section 7-173,
14    whether or not the employee contributions are withheld as
15    permitted by that Section;
16        3. all accounts receivable, together with interest
17    charged thereon, as provided in Section 7-209;
18        4. if it has no participating employees with current
19    earnings, an amount payable which, over a closed period of
20    20 years for participating municipalities and 10 years for
21    participating instrumentalities, will amortize, at the
22    effective rate for that year, any unfunded obligation. The
23    unfunded obligation shall be computed as provided in
24    paragraph 2 of subsection (b);
25        5. if it has fewer than 7 participating employees or a

 

 

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

 

 

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

 

 

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1    A separate municipality contribution rate shall be
2computed for the sheriff's law enforcement employees of each
3forest preserve district that elects to have such employees.
4For the period from January 1, 1986 to December 31, 1986, such
5rate shall be the forest preserve district's regular rate plus
62%.
7    In the event that the Board determines that there is an
8actuarial deficiency in the account of any municipality with
9respect to a person who has elected to participate in the Fund
10under Section 3-109.1 of this Code, the Board may adjust the
11municipality's contribution rate so as to make up that
12deficiency over such reasonable period of time as the Board may
13determine.
14    (d) The Board may establish a separate municipality
15contribution rate for all employees who are program
16participants employed under the federal Comprehensive
17Employment Training Act by all of the participating
18municipalities and instrumentalities. The Board may also
19provide that, in lieu of a separate municipality rate for these
20employees, a portion of the municipality contributions for such
21program participants shall be refunded or an extra charge
22assessed so that the amount of municipality contributions
23retained or received by the fund for all CETA program
24participants shall be an amount equal to that which would be
25provided by the separate municipality contribution rate for all
26such program participants. Refunds shall be made to prime

 

 

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1sponsors of programs upon submission of a claim therefor and
2extra charges shall be assessed to participating
3municipalities and instrumentalities. In establishing the
4municipality contribution rate as provided in paragraph (b) of
5this Section, the use of a separate municipality contribution
6rate for program participants or the refund of a portion of the
7municipality contributions, as the case may be, may be
8considered.
9    (e) Computations of municipality contribution rates for
10the following calendar year shall be made prior to the
11beginning of each year, from the information available at the
12time the computations are made, and on the assumption that the
13employees in each participating municipality or participating
14instrumentality at such time will continue in service until the
15end of such calendar year at their respective rates of earnings
16at such time.
17    (f) Any municipality which is the recipient of State
18allocations representing that municipality's contributions for
19retirement annuity purposes on behalf of its employees as
20provided in Section 12-21.16 of the Illinois Public Aid Code
21shall pay the allocations so received to the Board for such
22purpose. Estimates of State allocations to be received during
23any taxable year shall be considered in the determination of
24the municipality's tax rate for that year under Section 7-171.
25If a special tax is levied under Section 7-171, none of the
26proceeds may be used to reimburse the municipality for the

 

 

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1amount of State allocations received and paid to the Board. Any
2multiple-county or consolidated health department which
3receives contributions from a county under Section 11.2 of "An
4Act in relation to establishment and maintenance of county and
5multiple-county health departments", approved July 9, 1943, as
6amended, or distributions under Section 3 of the Department of
7Public Health Act, shall use these only for municipality
8contributions by the health department.
9    (g) Municipality contributions for the several purposes
10specified shall, for township treasurers and employees in the
11offices of the township treasurers who meet the qualifying
12conditions for coverage hereunder, be allocated among the
13several school districts and parts of school districts serviced
14by such treasurers and employees in the proportion which the
15amount of school funds of each district or part of a district
16handled by the treasurer bears to the total amount of all
17school funds handled by the treasurer.
18    From the funds subject to allocation among districts and
19parts of districts pursuant to the School Code, the trustees
20shall withhold the proportionate share of the liability for
21municipality contributions imposed upon such districts by this
22Section, in respect to such township treasurers and employees
23and remit the same to the Board.
24    The municipality contribution rate for an educational
25service center shall initially be the same rate for each year
26as the regional office of education or school district which

 

 

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1serves as its administrative agent. When actuarial data become
2available, a separate rate shall be established as provided in
3subparagraph (i) of this Section.
4    The municipality contribution rate for a public agency,
5other than a vocational education cooperative, formed under the
6Intergovernmental Cooperation Act shall initially be the
7average rate for the municipalities which are parties to the
8intergovernmental agreement. When actuarial data become
9available, a separate rate shall be established as provided in
10subparagraph (i) of this Section.
11    (h) Each participating municipality and participating
12instrumentality shall make the contributions in the amounts
13provided in this Section in the manner prescribed from time to
14time by the Board and all such contributions shall be
15obligations of the respective participating municipalities and
16participating instrumentalities to this fund. The failure to
17deduct any employee contributions shall not relieve the
18participating municipality or participating instrumentality of
19its obligation to this fund. Delinquent payments of
20contributions due under this Section may, with interest, be
21recovered by civil action against the participating
22municipalities or participating instrumentalities.
23Municipality contributions, other than the amount necessary
24for employee contributions and Social Security contributions,
25for periods of service by employees from whose earnings no
26deductions were made for employee contributions to the fund,

 

 

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

 

 

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1municipality or participating instrumentality that paid those
2earnings shall pay to the Fund, in addition to any other
3contributions required under this Article, the present value of
4the increase in the pension resulting from the portion of the
5increase in salary that is in excess of the greater of 6% or
61.5 times the annual increase in the Consumer Price Index-U, as
7determined by the Fund. This present value shall be computed on
8the basis of the actuarial assumptions and tables used in the
9most recent actuarial valuation of the Fund that is available
10at the time of the computation.
11    Whenever it determines that a payment is or may be required
12under this subsection (k), the fund shall calculate the amount
13of the payment and bill the participating municipality or
14participating instrumentality for that amount. The bill shall
15specify the calculations used to determine the amount due. If
16the participating municipality or participating
17instrumentality disputes the amount of the bill, it may, within
1830 days after receipt of the bill, apply to the fund in writing
19for a recalculation. The application must specify in detail the
20grounds of the dispute. Upon receiving a timely application for
21recalculation, the fund shall review the application and, if
22appropriate, recalculate the amount due. The participating
23municipality and participating instrumentality contributions
24required under this subsection (k) may be paid in the form of a
25lump sum within 90 days after receipt of the bill. If the
26participating municipality and participating instrumentality

 

 

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1contributions are not paid within 90 days after receipt of the
2bill, then interest will be charged at a rate equal to the
3fund's annual actuarially assumed rate of return on investment
4compounded annually from the 91st day after receipt of the
5bill. Payments must be concluded within 3 years after receipt
6of the bill by the participating municipality or participating
7instrumentality.
8    When assessing payment for any amount due under this
9subsection (k), the fund shall exclude earnings increases
10resulting from overload or overtime earnings.
11    When assessing payment for any amount due under this
12subsection (k), the fund shall also exclude earnings increases
13attributable to standard employment promotions resulting in
14increased responsibility and workload.
15    This subsection (k) does not apply to earnings increases
16paid to individuals under contracts or collective bargaining
17agreements entered into, amended, or renewed before the
18effective date of this amendatory Act of the 97th General
19Assembly, earnings increases paid to members who are 10 years
20or more from retirement eligibility, or earnings increases
21resulting from a promotion from a part-time to a full-time
22position.
23(Source: P.A. 96-1084, eff. 7-16-10; 96-1140, eff. 7-21-10;
24revised 9-16-10.)
 
25    (40 ILCS 5/7-205)  (from Ch. 108 1/2, par. 7-205)

 

 

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1    Sec. 7-205. Reserves for annuities. Appropriate reserves
2shall be created for payment of all annuities granted under
3this Article at the time such annuities are granted and in
4amounts determined to be necessary under actuarial tables
5adopted by the Board upon recommendation of the actuary of the
6fund. All annuities payable shall be charged to the annuity
7reserve.
8    1. Amounts credited to annuity reserves shall be derived by
9transfer of all the employee credits from the appropriate
10employee reserves and by charges to the municipality reserve of
11those municipalities in which the retiring employee has
12accumulated service. If a retiring employee has accumulated
13service in more than one participating municipality or
14participating instrumentality, the aggregate municipality
15charges for non-concurrent service shall be calculated as
16follows:
17        (A) for purposes of calculating the annuity reserve, an
18    annuity will be calculated based on service and adjusted
19    earnings with each employer (without regard to the vesting
20    requirement contained in subsection (a) of Section 7-142);
21    and
22        (B) the difference between the municipality charges
23    for the actual annuity granted and the aggregation of the
24    municipality charges based upon the ratio of each from
25    those calculations to the aggregated total from paragraph
26    (A) of this item 1.

 

 

09700HB3474ham004- 22 -LRB097 10961 JDS 54300 a

1    Aggregate municipality charges for concurrent service
2shall be prorated based on the employee's earnings. The
3municipality charges for retirement annuities calculated under
4subparagraph a of paragraph 1 of subsection (a) of Section
57-142 shall be prorated based on actual contributions prorated
6on a basis of the employee's earnings in case of concurrent
7service and creditable service in other cases.
8    2. Supplemental annuities shall be handled as a separate
9annuity and amounts to be credited to the annuity reserve
10therefor shall be derived in the same manner as a regular
11annuity.
12    3. When a retirement annuity is granted to an employee with
13a spouse eligible for a surviving spouse annuity, there shall
14be credited to the annuity reserve an amount to fund the cost
15of both the retirement and surviving spouse annuity as a joint
16and survivors annuity.
17    4. Beginning January 1, 1989, when a retirement annuity is
18awarded, an amount equal to the present value of the $3,000
19death benefit payable upon the death of the annuitant shall be
20transferred to the annuity reserve from the appropriate
21municipality reserves in the same manner as the transfer for
22annuities.
23    5. All annuity reserves shall be revalued annually as of
24December 31. Beginning as of December 31, 1973, adjustment
25required therein by such revaluation shall be charged or
26credited to the earnings and experience variation reserve.

 

 

09700HB3474ham004- 23 -LRB097 10961 JDS 54300 a

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

 

 

09700HB3474ham004- 24 -LRB097 10961 JDS 54300 a

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

 

 

09700HB3474ham004- 25 -LRB097 10961 JDS 54300 a

1issued pursuant to a payroll voucher certified by a Department
2and drawn by the State Comptroller upon the State Treasurer,
3including an elected official described in subparagraph (d) of
4Section 14-104, shall become an employee for purpose of
5membership in the Retirement System on the first day of such
6employment.
7    A person entering service on or after January 1, 1972 and
8prior to January 1, 1984 shall become a member as a condition
9of employment and shall begin making contributions as of the
10first day of employment.
11    A person entering service on or after January 1, 1984
12shall, upon completion of 6 months of continuous service which
13is not interrupted by a break of more than 2 months, become a
14member as a condition of employment. Contributions shall begin
15the first of the month after completion of the qualifying
16period.
17    A person employed by the Chicago Metropolitan Agency for
18Planning on the effective date of this amendatory Act of the
1995th General Assembly who was a member of this System as an
20employee of the Chicago Area Transportation Study and makes an
21election under Section 14-104.13 to participate in this System
22for his or her employment with the Chicago Metropolitan Agency
23for Planning.
24    The qualifying period of 6 months of service is not
25applicable to: (1) a person who has been granted credit for
26service in a position covered by the State Universities

 

 

09700HB3474ham004- 26 -LRB097 10961 JDS 54300 a

1Retirement System, the Teachers' Retirement System of the State
2of Illinois, the General Assembly Retirement System, or the
3Judges Retirement System of Illinois unless that service has
4been forfeited under the laws of those systems; (2) a person
5entering service on or after July 1, 1991 in a noncovered
6position; (3) a person to whom Section 14-108.2a or 14-108.2b
7applies; or (4) a person to whom subsection (a-5) of this
8Section applies.
9    (a-5) A person entering service on or after December 1,
102010 shall become a member as a condition of employment and
11shall begin making contributions as of the first day of
12employment. A person serving in the qualifying period on
13December 1, 2010 will become a member on December 1, 2010 and
14shall begin making contributions as of December 1, 2010.
15    (b) The term "employee" does not include the following:
16        (1) members of the State Legislature, and persons
17    electing to become members of the General Assembly
18    Retirement System pursuant to Section 2-105;
19        (2) incumbents of offices normally filled by vote of
20    the people;
21        (3) except as otherwise provided in this Section, any
22    person appointed by the Governor with the advice and
23    consent of the Senate unless that person elects to
24    participate in this system;
25        (3.1) any person serving as a commissioner of an ethics
26    commission created under the State Officials and Employees

 

 

09700HB3474ham004- 27 -LRB097 10961 JDS 54300 a

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

 

 

09700HB3474ham004- 28 -LRB097 10961 JDS 54300 a

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

 

 

09700HB3474ham004- 29 -LRB097 10961 JDS 54300 a

1    such per diem compensation is paid by warrant issued
2    pursuant to a payroll voucher; such persons have never been
3    included in the membership of this System, and this
4    amendatory Act of 1987 is not intended to effect any change
5    in the status of such persons;
6        (11) any person who is a member of the Oil and Gas
7    Board created by Section 1.2 of the Illinois Oil and Gas
8    Act, and receives per diem compensation rather than a
9    salary, notwithstanding that such per diem compensation is
10    paid by warrant issued pursuant to a payroll voucher; or
11        (12) a person employed by the State Board of Higher
12    Education in a position with the Illinois Century Network
13    as of June 30, 2004, who remains continuously employed
14    after that date by the Department of Central Management
15    Services in a position with the Illinois Century Network
16    and participates in the Article 15 system with respect to
17    that employment; .
18        (13) any person who first becomes a member of the Civil
19    Service Commission on or after the effective date of this
20    amendatory Act of the 97th General Assembly;
21        (14) any person, other than the Director of Employment
22    Security, who first becomes a member of the Board of Review
23    of the Department of Employment Security on or after the
24    effective date of this amendatory Act of the 97th General
25    Assembly;
26        (15) any person who first becomes a member of the Civil

 

 

09700HB3474ham004- 30 -LRB097 10961 JDS 54300 a

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

 

 

09700HB3474ham004- 31 -LRB097 10961 JDS 54300 a

1        (23) any person who first becomes a member of the
2    Illinois State Toll Highway Authority on or after the
3    effective date of this amendatory Act of the 97th General
4    Assembly; or
5        (24) any person who first becomes a member of the
6    Illinois State Board of Elections on or after the effective
7    date of this amendatory Act of the 97th General Assembly.
8    (c) An individual who represents or is employed as an
9officer or employee of a statewide labor organization that
10represents members of this System may participate in the System
11and shall be deemed an employee, provided that (1) the
12individual has previously earned creditable service under this
13Article, (2) the individual files with the System an
14irrevocable election to become a participant within 6 months
15after the effective date of this amendatory Act of the 94th
16General Assembly, and (3) the individual does not receive
17credit for that employment under any other provisions of this
18Code. An employee under this subsection (c) is responsible for
19paying to the System both (i) employee contributions based on
20the actual compensation received for service with the labor
21organization and (ii) employer contributions based on the
22percentage of payroll certified by the board; all or any part
23of these contributions may be paid on the employee's behalf or
24picked up for tax purposes (if authorized under federal law) by
25the labor organization.
26    A person who is an employee as defined in this subsection

 

 

09700HB3474ham004- 32 -LRB097 10961 JDS 54300 a

1(c) may establish service credit for similar employment prior
2to becoming an employee under this subsection by paying to the
3System for that employment the contributions specified in this
4subsection, plus interest at the effective rate from the date
5of service to the date of payment. However, credit shall not be
6granted under this subsection (c) for any such prior employment
7for which the applicant received credit under any other
8provision of this Code or during which the applicant was on a
9leave of absence.
10(Source: P.A. 95-677, eff. 10-11-07; 96-1490, eff. 1-1-11.)
 
11    (40 ILCS 5/22-101)  (from Ch. 108 1/2, par. 22-101)
12    Sec. 22-101. Retirement Plan for Chicago Transit Authority
13Employees.
14    (a) There shall be established and maintained by the
15Authority created by the "Metropolitan Transit Authority Act",
16approved April 12, 1945, as amended, (referred to in this
17Section as the "Authority") a financially sound pension and
18retirement system adequate to provide for all payments when due
19under such established system or as modified from time to time
20by ordinance of the Chicago Transit Board or collective
21bargaining agreement. For this purpose, the Board must make
22contributions to the established system as required under this
23Section and may make any additional contributions provided for
24by Board ordinance or collective bargaining agreement. The
25participating employees shall make such periodic payments to

 

 

09700HB3474ham004- 33 -LRB097 10961 JDS 54300 a

1the established system as required under this Section and may
2make any additional contributions provided for by Board
3ordinance or collective bargaining agreement.
4    Provisions shall be made by the Board for all officers,
5except those who first become members on after the effective
6date of this amendatory Act of the 97th General Assembly, and
7employees of the Authority appointed pursuant to the
8"Metropolitan Transit Authority Act" to become, subject to
9reasonable rules and regulations, participants of the pension
10or retirement system with uniform rights, privileges,
11obligations and status as to the class in which such officers
12and employees belong. The terms, conditions and provisions of
13any pension or retirement system or of any amendment or
14modification thereof affecting employees who are members of any
15labor organization may be established, amended or modified by
16agreement with such labor organization, provided the terms,
17conditions and provisions must be consistent with this Act, the
18annual funding levels for the retirement system established by
19law must be met and the benefits paid to future participants in
20the system may not exceed the benefit ceilings set for future
21participants under this Act and the contribution levels
22required by the Authority and its employees may not be less
23than the contribution levels established under this Act.
24    (b) The Board of Trustees shall consist of 11 members
25appointed as follows: (i) 5 trustees shall be appointed by the
26Chicago Transit Board; (ii) 3 trustees shall be appointed by an

 

 

09700HB3474ham004- 34 -LRB097 10961 JDS 54300 a

1organization representing the highest number of Chicago
2Transit Authority participants; (iii) one trustee shall be
3appointed by an organization representing the second-highest
4number of Chicago Transit Authority participants; (iv) one
5trustee shall be appointed by the recognized coalition
6representatives of participants who are not represented by an
7organization with the highest or second-highest number of
8Chicago Transit Authority participants; and (v) one trustee
9shall be selected by the Regional Transportation Authority
10Board of Directors, and the trustee shall be a professional
11fiduciary who has experience in the area of collectively
12bargained pension plans. Trustees shall serve until a successor
13has been appointed and qualified, or until resignation, death,
14incapacity, or disqualification.
15    Any person appointed as a trustee of the board shall
16qualify by taking an oath of office that he or she will
17diligently and honestly administer the affairs of the system
18and will not knowingly violate or willfully permit the
19violation of any of the provisions of law applicable to the
20Plan, including Sections 1-109, 1-109.1, 1-109.2, 1-110,
211-111, 1-114, and 1-115 of the Illinois Pension Code.
22    Each trustee shall cast individual votes, and a majority
23vote shall be final and binding upon all interested parties,
24provided that the Board of Trustees may require a supermajority
25vote with respect to the investment of the assets of the
26Retirement Plan, and may set forth that requirement in the

 

 

09700HB3474ham004- 35 -LRB097 10961 JDS 54300 a

1Retirement Plan documents, by-laws, or rules of the Board of
2Trustees. Each trustee shall have the rights, privileges,
3authority, and obligations as are usual and customary for such
4fiduciaries.
5    The Board of Trustees may cause amounts on deposit in the
6Retirement Plan to be invested in those investments that are
7permitted investments for the investment of moneys held under
8any one or more of the pension or retirement systems of the
9State, any unit of local government or school district, or any
10agency or instrumentality thereof. The Board, by a vote of at
11least two-thirds of the trustees, may transfer investment
12management to the Illinois State Board of Investment, which is
13hereby authorized to manage these investments when so requested
14by the Board of Trustees.
15    Notwithstanding any other provision of this Article or any
16law to the contrary, any person who first becomes a member of
17the Chicago Transit Board on or after the effective date of
18this Act shall not be eligible to participate in this
19Retirement Plan.
20    (c) All individuals who were previously participants in the
21Retirement Plan for Chicago Transit Authority Employees shall
22remain participants, and shall receive the same benefits
23established by the Retirement Plan for Chicago Transit
24Authority Employees, except as provided in this amendatory Act
25or by subsequent legislative enactment or amendment to the
26Retirement Plan. For Authority employees hired on or after the

 

 

09700HB3474ham004- 36 -LRB097 10961 JDS 54300 a

1effective date of this amendatory Act of the 95th General
2Assembly, the Retirement Plan for Chicago Transit Authority
3Employees shall be the exclusive retirement plan and such
4employees shall not be eligible for any supplemental plan,
5except for a deferred compensation plan funded only by employee
6contributions.
7    For all Authority employees who are first hired on or after
8the effective date of this amendatory Act of the 95th General
9Assembly and are participants in the Retirement Plan for
10Chicago Transit Authority Employees, the following terms,
11conditions and provisions with respect to retirement shall be
12applicable:
13        (1) Such participant shall be eligible for an unreduced
14    retirement allowance for life upon the attainment of age 64
15    with 25 years of continuous service.
16        (2) Such participant shall be eligible for a reduced
17    retirement allowance for life upon the attainment of age 55
18    with 10 years of continuous service.
19        (3) For the purpose of determining the retirement
20    allowance to be paid to a retiring employee, the term
21    "Continuous Service" as used in the Retirement Plan for
22    Chicago Transit Authority Employees shall also be deemed to
23    include all pension credit for service with any retirement
24    system established under Article 8 or Article 11 of this
25    Code, provided that the employee forfeits and relinquishes
26    all pension credit under Article 8 or Article 11 of this

 

 

09700HB3474ham004- 37 -LRB097 10961 JDS 54300 a

1    Code, and the contribution required under this subsection
2    is made by the employee. The Retirement Plan's actuary
3    shall determine the contribution paid by the employee as an
4    amount equal to the normal cost of the benefit accrued, had
5    the service been rendered as an employee, plus interest per
6    annum from the time such service was rendered until the
7    date the payment is made.
8    (d) From the effective date of this amendatory Act through
9December 31, 2008, all participating employees shall
10contribute to the Retirement Plan in an amount not less than 6%
11of compensation, and the Authority shall contribute to the
12Retirement Plan in an amount not less than 12% of compensation.
13    (e)(1) Beginning January 1, 2009 the Authority shall make
14contributions to the Retirement Plan in an amount equal to
15twelve percent (12%) of compensation and participating
16employees shall make contributions to the Retirement Plan in an
17amount equal to six percent (6%) of compensation. These
18contributions may be paid by the Authority and participating
19employees on a payroll or other periodic basis, but shall in
20any case be paid to the Retirement Plan at least monthly.
21    (2) For the period ending December 31, 2040, the amount
22paid by the Authority in any year with respect to debt service
23on bonds issued for the purposes of funding a contribution to
24the Retirement Plan under Section 12c of the Metropolitan
25Transit Authority Act, other than debt service paid with the
26proceeds of bonds or notes issued by the Authority for any year

 

 

09700HB3474ham004- 38 -LRB097 10961 JDS 54300 a

1after calendar year 2008, shall be treated as a credit against
2the amount of required contribution to the Retirement Plan by
3the Authority under subsection (e)(1) for the following year up
4to an amount not to exceed 6% of compensation paid by the
5Authority in that following year.
6    (3) By September 15 of each year beginning in 2009 and
7ending on December 31, 2039, on the basis of a report prepared
8by an enrolled actuary retained by the Plan, the Board of
9Trustees of the Retirement Plan shall determine the estimated
10funded ratio of the total assets of the Retirement Plan to its
11total actuarially determined liabilities. A report containing
12that determination and the actuarial assumptions on which it is
13based shall be filed with the Authority, the representatives of
14its participating employees, the Auditor General of the State
15of Illinois, and the Regional Transportation Authority. If the
16funded ratio is projected to decline below 60% in any year
17before 2040, the Board of Trustees shall also determine the
18increased contribution required each year as a level percentage
19of payroll over the years remaining until 2040 using the
20projected unit credit actuarial cost method so the funded ratio
21does not decline below 60% and include that determination in
22its report. If the actual funded ratio declines below 60% in
23any year prior to 2040, the Board of Trustees shall also
24determine the increased contribution required each year as a
25level percentage of payroll during the years after the then
26current year using the projected unit credit actuarial cost

 

 

09700HB3474ham004- 39 -LRB097 10961 JDS 54300 a

1method so the funded ratio is projected to reach at least 60%
2no later than 10 years after the then current year and include
3that determination in its report. Within 60 days after
4receiving the report, the Auditor General shall review the
5determination and the assumptions on which it is based, and if
6he finds that the determination and the assumptions on which it
7is based are unreasonable in the aggregate, he shall issue a
8new determination of the funded ratio, the assumptions on which
9it is based and the increased contribution required each year
10as a level percentage of payroll over the years remaining until
112040 using the projected unit credit actuarial cost method so
12the funded ratio does not decline below 60%, or, in the event
13of an actual decline below 60%, so the funded ratio is
14projected to reach 60% by no later than 10 years after the then
15current year. If the Board of Trustees or the Auditor General
16determine that an increased contribution is required to meet
17the funded ratio required by the subsection, effective January
181 following the determination or 30 days after such
19determination, whichever is later, one-third of the increased
20contribution shall be paid by participating employees and
21two-thirds by the Authority, in addition to the contributions
22required by this subsection (1).
23    (4) For the period beginning 2040, the minimum contribution
24to the Retirement Plan for each fiscal year shall be an amount
25determined by the Board of Trustees of the Retirement Plan to
26be sufficient to bring the total assets of the Retirement Plan

 

 

09700HB3474ham004- 40 -LRB097 10961 JDS 54300 a

1up to 90% of its total actuarial liabilities by the end of
22059. Participating employees shall be responsible for
3one-third of the required contribution and the Authority shall
4be responsible for two-thirds of the required contribution. In
5making these determinations, the Board of Trustees shall
6calculate the required contribution each year as a level
7percentage of payroll over the years remaining to and including
8fiscal year 2059 using the projected unit credit actuarial cost
9method. A report containing that determination and the
10actuarial assumptions on which it is based shall be filed by
11September 15 of each year with the Authority, the
12representatives of its participating employees, the Auditor
13General of the State of Illinois and the Regional
14Transportation Authority. If the funded ratio is projected to
15fail to reach 90% by December 31, 2059, the Board of Trustees
16shall also determine the increased contribution required each
17year as a level percentage of payroll over the years remaining
18until December 31, 2059 using the projected unit credit
19actuarial cost method so the funded ratio will meet 90% by
20December 31, 2059 and include that determination in its report.
21Within 60 days after receiving the report, the Auditor General
22shall review the determination and the assumptions on which it
23is based and if he finds that the determination and the
24assumptions on which it is based are unreasonable in the
25aggregate, he shall issue a new determination of the funded
26ratio, the assumptions on which it is based and the increased

 

 

09700HB3474ham004- 41 -LRB097 10961 JDS 54300 a

1contribution required each year as a level percentage of
2payroll over the years remaining until December 31, 2059 using
3the projected unit credit actuarial cost method so the funded
4ratio reaches no less than 90% by December 31, 2059. If the
5Board of Trustees or the Auditor General determine that an
6increased contribution is required to meet the funded ratio
7required by this subsection, effective January 1 following the
8determination or 30 days after such determination, whichever is
9later, one-third of the increased contribution shall be paid by
10participating employees and two-thirds by the Authority, in
11addition to the contributions required by subsection (e)(1).
12    (5) Beginning in 2060, the minimum contribution for each
13year shall be the amount needed to maintain the total assets of
14the Retirement Plan at 90% of the total actuarial liabilities
15of the Plan, and the contribution shall be funded two-thirds by
16the Authority and one-third by the participating employees in
17accordance with this subsection.
18    (f) The Authority shall take the steps necessary to comply
19with Section 414(h)(2) of the Internal Revenue Code of 1986, as
20amended, to permit the pick-up of employee contributions under
21subsections (d) and (e) on a tax-deferred basis.
22    (g) The Board of Trustees shall certify to the Governor,
23the General Assembly, the Auditor General, the Board of the
24Regional Transportation Authority, and the Authority at least
2590 days prior to the end of each fiscal year the amount of the
26required contributions to the retirement system for the next

 

 

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1retirement system fiscal year under this Section. The
2certification shall include a copy of the actuarial
3recommendations upon which it is based. In addition, copies of
4the certification shall be sent to the Commission on Government
5Forecasting and Accountability and the Mayor of Chicago.
6    (h)(1) As to an employee who first becomes entitled to a
7retirement allowance commencing on or after November 30, 1989,
8the retirement allowance shall be the amount determined in
9accordance with the following formula:
10        (A) One percent (1%) of his "Average Annual
11    Compensation in the highest four (4) completed Plan Years"
12    for each full year of continuous service from the date of
13    original employment to the effective date of the Plan; plus
14        (B) One and seventy-five hundredths percent (1.75%) of
15    his "Average Annual Compensation in the highest four (4)
16    completed Plan Years" for each year (including fractions
17    thereof to completed calendar months) of continuous
18    service as provided for in the Retirement Plan for Chicago
19    Transit Authority Employees.
20Provided, however that:
21    (2) As to an employee who first becomes entitled to a
22retirement allowance commencing on or after January 1, 1993,
23the retirement allowance shall be the amount determined in
24accordance with the following formula:
25        (A) One percent (1%) of his "Average Annual
26    Compensation in the highest four (4) completed Plan Years"

 

 

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1    for each full year of continuous service from the date of
2    original employment to the effective date of the Plan; plus
3        (B) One and eighty hundredths percent (1.80%) of his
4    "Average Annual Compensation in the highest four (4)
5    completed Plan Years" for each year (including fractions
6    thereof to completed calendar months) of continuous
7    service as provided for in the Retirement Plan for Chicago
8    Transit Authority Employees.
9Provided, however that:
10    (3) As to an employee who first becomes entitled to a
11retirement allowance commencing on or after January 1, 1994,
12the retirement allowance shall be the amount determined in
13accordance with the following formula:
14        (A) One percent (1%) of his "Average Annual
15    Compensation in the highest four (4) completed Plan Years"
16    for each full year of continuous service from the date of
17    original employment to the effective date of the Plan; plus
18        (B) One and eighty-five hundredths percent (1.85%) of
19    his "Average Annual Compensation in the highest four (4)
20    completed Plan Years" for each year (including fractions
21    thereof to completed calendar months) of continuous
22    service as provided for in the Retirement Plan for Chicago
23    Transit Authority Employees.
24Provided, however that:
25    (4) As to an employee who first becomes entitled to a
26retirement allowance commencing on or after January 1, 2000,

 

 

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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) Two percent (2%) of his "Average Annual
8    Compensation in the highest four (4) completed Plan Years"
9    for each year (including fractions thereof to completed
10    calendar months) of continuous service as provided for in
11    the Retirement Plan for Chicago Transit Authority
12    Employees.
13Provided, however that:
14    (5) As to an employee who first becomes entitled to a
15retirement allowance commencing on or after January 1, 2001,
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) Two and fifteen hundredths percent (2.15%) 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.
2    The changes made by this amendatory Act of the 95th General
3Assembly, to the extent that they affect the rights or
4privileges of Authority employees that are currently the
5subject of collective bargaining, have been agreed to between
6the authorized representatives of these employees and of the
7Authority prior to enactment of this amendatory Act, as
8evidenced by a Memorandum of Understanding between these
9representatives that will be filed with the Secretary of State
10Index Department and designated as "95-GA-C05". The General
11Assembly finds and declares that those changes are consistent
12with 49 U.S.C. 5333(b) (also known as Section 13(c) of the
13Federal Transit Act) because of this agreement between
14authorized representatives of these employees and of the
15Authority, and that any future amendments to the provisions of
16this amendatory Act of the 95th General Assembly, to the extent
17those amendments would affect the rights and privileges of
18Authority employees that are currently the subject of
19collective bargaining, would be consistent with 49 U.S.C.
205333(b) if and only if those amendments were agreed to between
21these authorized representatives prior to enactment.
22    (i) Early retirement incentive plan; funded ratio.
23        (1) Beginning on the effective date of this Section, no
24    early retirement incentive shall be offered to
25    participants of the Plan unless the Funded Ratio of the
26    Plan is at least 80% or more.

 

 

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1        (2) For the purposes of this Section, the Funded Ratio
2    shall be the Adjusted Assets divided by the Actuarial
3    Accrued Liability developed in accordance with Statement
4    #25 promulgated by the Government Accounting Standards
5    Board and the actuarial assumptions described in the Plan.
6    The Adjusted Assets shall be calculated based on the
7    methodology described in the Plan.
8    (j) Nothing in this amendatory Act of the 95th General
9Assembly shall impair the rights or privileges of Authority
10employees under any other law.
11(Source: P.A. 94-839, eff. 6-6-06; 95-708, eff. 1-18-08.)
 
12    (40 ILCS 5/22-103)
13    Sec. 22-103. Regional Transportation Authority and related
14pension plans.
15    (a) As used in this Section:
16    "Affected pension plan" means a defined-benefit pension
17plan supported in whole or in part by employer contributions
18and maintained by the Regional Transportation Authority, the
19Suburban Bus Division, or the Commuter Rail Division, or any
20combination thereof, under the general authority of the
21Regional Transportation Authority Act, including but not
22limited to any such plan that has been established under or is
23subject to a collective bargaining agreement or is limited to
24employees covered by a collective bargaining agreement.
25"Affected pension plan" does not include any pension fund or

 

 

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1retirement system subject to Section 22-101 of this Section.
2    "Authority" means the Regional Transportation Authority
3created under the Regional Transportation Authority Act.
4    "Contributing employer" means an employer that is required
5to make contributions to an affected pension plan under the
6terms of that plan.
7    "Funding ratio" means the ratio of an affected pension
8plan's assets to the present value of its actuarial
9liabilities, as determined at its latest actuarial valuation in
10accordance with applicable actuarial assumptions and
11recommendations.
12    "Under-funded pension plan" or "under-funded" means an
13affected pension plan that, at the time of its last actuarial
14valuation, has a funding ratio of less than 90%.
15    (b) The contributing employers of each affected pension
16plan have a general duty to make the required employer
17contributions to the affected pension plan in a timely manner
18in accordance with the terms of the plan. A contributing
19employer must make contributions to the affected pension plan
20as required under this subsection and, if applicable,
21subsection (c); a contributing employer may make any additional
22contributions provided for by the board of the employer or
23collective bargaining agreement.
24    (c) In the case of an affected pension plan that is
25under-funded on January 1, 2009 or becomes under-funded at any
26time after that date, the contributing employers shall

 

 

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

 

 

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1required under this subsection.
2    If an under-funded pension plan is determined to have
3achieved a funding ratio of at least 90% during the period when
4an amortization schedule is in force under this Section, the
5contributing employers and the trustee of the affected pension
6plan, acting jointly, may cancel the amortization schedule and
7the contributing employers may cease making additional
8contributions under this subsection for as long as the affected
9pension plan retains a funding ratio of at least 90%.
10    (d) Beginning January 1, 2009, if the Authority fails to
11pay to an affected pension fund within 30 days after it is due
12(i) any employer contribution that it is required to make as a
13contributing employer, (ii) any additional employer
14contribution that it is required to pay under subsection (c),
15or (iii) any payment that it is required to make under Section
164.02a or 4.02b of the Regional Transportation Authority Act,
17the trustee of the affected pension fund shall promptly so
18notify the Commission on Government Forecasting and
19Accountability, the Mayor of Chicago, the Governor, and the
20General Assembly.
21    (e) For purposes of determining employer contributions,
22assets, and actuarial liabilities under this subsection,
23contributions, assets, and liabilities relating to health care
24benefits shall not be included.
25    (f) This amendatory Act of the 94th General Assembly does
26not affect or impair the right of any contributing employer or

 

 

09700HB3474ham004- 50 -LRB097 10961 JDS 54300 a

1its employees to collectively bargain the amount or level of
2employee contributions to an affected pension plan, to the
3extent that the plan includes employees subject to collective
4bargaining.
5    (g) Notwithstanding any other provision of this Article or
6any law to the contrary, a person who, on or after the
7effective date of this amendatory Act of the 97th General
8Assembly, first becomes a director on the Suburban Bus Board,
9the Commuter Rail Board, or the Board of Directors of the
10Regional Transportation Authority shall not be eligible to
11participate in an affected pension plan.
12(Source: P.A. 94-839, eff. 6-6-06.)
 
13    Section 15. The State Mandates Act is amended by adding
14Section 8.35 as follows:
 
15    (30 ILCS 805/8.35 new)
16    Sec. 8.35. Exempt mandate. Notwithstanding Sections 6 and 8
17of this Act, no reimbursement by the State is required for the
18implementation of any mandate created by this amendatory Act of
19the 97th General Assembly.".