Full Text of HB4513 97th General Assembly
HB4513eng 97TH GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning public employee benefits.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Pension Code is amended by changing | 5 | | Sections 13-502 and 13-503 as follows: | 6 | | (40 ILCS 5/13-502) (from Ch. 108 1/2, par. 13-502)
| 7 | | Sec. 13-502. Employee contributions; deductions from | 8 | | salary.
| 9 | | (a) Retirement annuity and child's annuity. Except as | 10 | | otherwise provided in this Section, there There shall be | 11 | | deducted
from each payment of salary an amount equal to 7% of | 12 | | salary as the
employee's contribution for the retirement | 13 | | annuity, including
child's annuity, and 0.5% of salary as the | 14 | | employee's contribution for annual increases to the retirement | 15 | | annuity.
| 16 | | (a-1) For employees who first became a member or | 17 | | participant before January 1, 2011 under any reciprocal | 18 | | retirement system or pension fund established under this Code | 19 | | other than a retirement system or pension fund established | 20 | | under Article 2, 3, 4, 5, 6, or 18 of this Code: | 21 | | (1) beginning with the first pay period paid on or | 22 | | after January 1, 2013 and ending with the last pay period | 23 | | paid on or before December 31, 2013, employee contributions |
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| 1 | | shall be 7.5% for the retirement annuity and 1.0% for | 2 | | annual increases for a total of 8.5%; | 3 | | (2) beginning with the first pay period paid on or | 4 | | after January 1, 2014 and ending with the last pay period | 5 | | paid on or before December 31, 2014, employee contributions | 6 | | shall be 8.0% for the retirement annuity and 1.5% for | 7 | | annual increases for a total of 9.5%; | 8 | | (3) beginning with the first pay period paid on or | 9 | | after January 1, 2015 and ending with the last pay period | 10 | | paid on or before the date when the funded ratio of the | 11 | | Fund is first determined to have reached the 90% funding | 12 | | goal, employee contributions shall be 8.5% for the | 13 | | retirement annuity and 1.5% for annual increases for a | 14 | | total of 10.0%; and | 15 | | (4) beginning with the first pay period paid on or | 16 | | after the date when the funded ratio of the Fund is first | 17 | | determined to have reached the 90% funding goal, and each | 18 | | pay period paid thereafter, employee contributions shall | 19 | | be 7.0% for the retirement annuity and 0.5% for annual | 20 | | increases for a total of 7.5%. | 21 | | (b) Surviving spouse's annuity. There shall be deducted | 22 | | from each
payment of salary an amount equal to 1 1/2% of salary | 23 | | as the employee's
contribution for the surviving spouse's | 24 | | annuity and annual increases therefor. For employees that first | 25 | | became a member or a participant before January 1, 2011 under | 26 | | any reciprocal retirement system or pension fund established |
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| 1 | | under this Code other than a retirement system or pension fund | 2 | | established under Article 2, 3, 4, 5, 6, or 18 of this Code, | 3 | | beginning with the first pay period paid on or after January 1, | 4 | | 2015 and ending with the last pay period paid on or before the | 5 | | date when the funded ratio of the Fund is first determined to | 6 | | have reached the 90% funding goal, there shall be deducted an | 7 | | additional 0.5% of salary for a total of 2.0% for the surviving | 8 | | spouse's annuity and annual increases.
| 9 | | (c) Pickup of employee contributions. The Employer may pick | 10 | | up employee
contributions required under subsections (a) and | 11 | | (b) of this Section. If
contributions are picked up they shall | 12 | | be treated as Employer contributions
in determining tax | 13 | | treatment under the United States Internal Revenue Code,
and | 14 | | shall not be included as gross income of the employee until | 15 | | such time
as they are distributed. The Employer shall pay these | 16 | | employee
contributions from the same source of funds used in | 17 | | paying salary to the
employee. The Employer may pick up these | 18 | | contributions by a reduction in
the cash salary of the employee | 19 | | or by an offset against a future salary
increase or by a | 20 | | combination of a reduction in salary and offset against a
| 21 | | future salary increase. If employee contributions are picked up | 22 | | they shall be
treated for all purposes of this Article 13, | 23 | | including Sections 13-503 and
13-601, in the same manner and to | 24 | | the same extent as employee contributions
made prior to the | 25 | | date picked up.
| 26 | | (d) Subject to the requirements of federal law, the |
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| 1 | | Employer shall
pick up optional contributions that the employee | 2 | | has elected to pay to the
Fund under Section 13-304.1, and the | 3 | | contributions so picked up
shall be treated as employer | 4 | | contributions for the purposes of determining
federal tax | 5 | | treatment. The Employer shall pick up the contributions by a
| 6 | | reduction in the cash salary of the employee and shall pay the | 7 | | contributions
from the same fund that is used to pay earnings | 8 | | to the employee. The Employer
shall, however, continue to | 9 | | withhold federal and State income taxes based upon
| 10 | | contributions made under Section 13-304.1 until the Internal | 11 | | Revenue Service or
the federal courts rule that pursuant to | 12 | | Section 414(h) of the U.S. Internal
Revenue Code of 1986, as | 13 | | amended, these contributions shall not be included as
gross | 14 | | income of the employee until such time as they are distributed | 15 | | or made
available.
| 16 | | (e) Each employee is deemed to consent and agree to the | 17 | | deductions from
compensation provided for in this Article.
| 18 | | (f) Subject to the requirements of federal law, the | 19 | | Employer shall pick up
contributions that a commissioner has | 20 | | elected to pay to the Fund under Section
13-314, and the | 21 | | contributions so picked up shall be treated as Employer
| 22 | | contributions for the purposes of determining federal tax | 23 | | treatment. The
Employer shall pick up the contributions by a | 24 | | reduction in the cash salary of
the commissioner and shall pay | 25 | | the contributions from the same fund as is
used to pay earnings | 26 | | to the commissioner. The Employer shall, however,
continue to |
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| 1 | | withhold federal and State income taxes based upon | 2 | | contributions
made under Section 13-314 until the U.S. Internal | 3 | | Revenue Service or the
federal courts rule that pursuant to | 4 | | Section 414(h) of the Internal Revenue
Code of 1986, as | 5 | | amended, these contributions shall not be included as gross
| 6 | | income of the employee until such time as they are distributed | 7 | | or made
available.
| 8 | | (Source: P.A. 94-621, eff. 8-18-05; 95-586, eff. 8-31-07.)
| 9 | | (40 ILCS 5/13-503) (from Ch. 108 1/2, par. 13-503)
| 10 | | Sec. 13-503. Tax levy. Until fiscal year 2013, the The | 11 | | Water Reclamation District shall annually
levy a tax upon all | 12 | | the taxable real property within the District at a rate
which, | 13 | | when extended, will produce a sum that (i) when added to the | 14 | | amounts
deducted from the salaries of employees, interest | 15 | | income on investments, and
other income, will be sufficient to | 16 | | meet the requirements of the Fund on an
actuarially funded | 17 | | basis, but (ii) shall not exceed an amount equal to the
total | 18 | | amount of contributions by the employees to the Fund made in | 19 | | the
calendar year 2 years prior to the year for which the tax | 20 | | is levied,
multiplied by 2.19, except that the amount of | 21 | | employee contributions made on
or after January 1, 2003 towards | 22 | | the purchase of additional optional benefits
under Section | 23 | | 13-304.1 shall only be multiplied by 1.00. | 24 | | Beginning in fiscal year 2013, the District shall annually
| 25 | | levy a tax upon all the taxable real property within the |
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| 1 | | District at a rate
which, when extended, will produce a sum | 2 | | that (i) will be sufficient to meet the Fund's actuarially | 3 | | determined contribution requirement, but (ii) shall not exceed | 4 | | an amount equal to the total employee contributions 2 years | 5 | | prior multiplied by 4.19. The actuarially determined | 6 | | contribution requirement is equal to the employer's normal cost | 7 | | plus the annual amount needed to amortize the unfunded | 8 | | liability by the year 2050 as a level percent of payroll. The | 9 | | funding goal is to attain a funded ratio of at least 90% by the | 10 | | year 2050, with the funded ratio being the ratio of the | 11 | | actuarial value of assets to the total actuarial liability. | 12 | | The tax shall be
levied and collected in the same manner as | 13 | | the general taxes of the District.
| 14 | | The tax shall be exclusive of and in addition to the amount | 15 | | of tax the
District is now or may hereafter be authorized to | 16 | | levy for general purposes
under the Metropolitan Water | 17 | | Reclamation District Act or under any other
laws which may | 18 | | limit the amount of tax for general purposes. The county
clerk | 19 | | of any county, in reducing tax levies as may be authorized by | 20 | | law,
shall not consider any such tax as a part of the general | 21 | | tax levy for
District purposes, and shall not include the same | 22 | | in any limitation of the
percent of the assessed valuation upon | 23 | | which taxes are required to be extended.
| 24 | | Revenues derived from the tax shall be paid to the Fund for | 25 | | the benefit
of the Fund.
| 26 | | If the funds available for the purposes of this Article are |
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| 1 | | insufficient
during any year to meet the requirements of this | 2 | | Article, the District may
issue tax anticipation warrants or | 3 | | notes, as provided by law, against the
current tax levy.
| 4 | | The Board shall submit annually to the Board of | 5 | | Commissioners of the
District an estimate of the amount | 6 | | required to be raised by taxation for
the purposes of the Fund. | 7 | | The Board of Commissioners shall review the
estimate and | 8 | | determine the tax to be levied for such purposes.
| 9 | | (Source: P.A. 92-599, eff. 6-28-02.)
| 10 | | Section 90. The State Mandates Act is amended by adding | 11 | | Section 8.36 as follows: | 12 | | (30 ILCS 805/8.36 new) | 13 | | Sec. 8.36. Exempt mandate. Notwithstanding Sections 6 and 8 | 14 | | of this Act, no reimbursement by the State is required for the | 15 | | implementation of any mandate created by this amendatory Act of | 16 | | the 97th General Assembly.
| 17 | | Section 99. Effective date. This Act takes effect upon | 18 | | becoming law.
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