SB1523ham003 98TH GENERAL ASSEMBLY

Rep. Michael J. Madigan

Filed: 11/5/2013

 

 


 

 


 
09800SB1523ham003LRB098 07986 AMC 49653 a

1
AMENDMENT TO SENATE BILL 1523

2    AMENDMENT NO. ______. Amend Senate Bill 1523, AS AMENDED,
3by replacing everything after the enacting clause with the
4following:
 
5    "Section 5. The Illinois Pension Code is amended by
6changing Sections 1-160, 12-130, 12-133.1, 12-133.2, 12-140,
712-149, and 12-150 and adding Sections 12-150.5, 12-155.5, and
812-195 as follows:
 
9    (40 ILCS 5/1-160)
10    Sec. 1-160. Provisions applicable to new hires.
11    (a) The provisions of this Section apply to a person who,
12on or after January 1, 2011, first becomes a member or a
13participant under any reciprocal retirement system or pension
14fund established under this Code, other than a retirement
15system or pension fund established under Article 2, 3, 4, 5, 6,
1615 or 18 of this Code, notwithstanding any other provision of

 

 

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1this Code to the contrary, but do not apply to any self-managed
2plan established under this Code, to any person with respect to
3service as a sheriff's law enforcement employee under Article
47, or to any participant of the retirement plan established
5under Section 22-101.
6    (b) "Final average salary" means the average monthly (or
7annual) salary obtained by dividing the total salary or
8earnings calculated under the Article applicable to the member
9or participant during the 96 consecutive months (or 8
10consecutive years) of service within the last 120 months (or 10
11years) of service in which the total salary or earnings
12calculated under the applicable Article was the highest by the
13number of months (or years) of service in that period. For the
14purposes of a person who first becomes a member or participant
15of any retirement system or pension fund to which this Section
16applies on or after January 1, 2011, in this Code, "final
17average salary" shall be substituted for the following:
18        (1) In Article 7 (except for service as sheriff's law
19    enforcement employees), "final rate of earnings".
20        (2) In Articles 8, 9, 10, 11, and 12, "highest average
21    annual salary for any 4 consecutive years within the last
22    10 years of service immediately preceding the date of
23    withdrawal".
24        (3) In Article 13, "average final salary".
25        (4) In Article 14, "final average compensation".
26        (5) In Article 17, "average salary".

 

 

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1        (6) In Section 22-207, "wages or salary received by him
2    at the date of retirement or discharge".
3    (b-5) Beginning on January 1, 2011, for all purposes under
4this Code (including without limitation the calculation of
5benefits and employee contributions), the annual earnings,
6salary, or wages (based on the plan year) of a member or
7participant to whom this Section applies shall not exceed
8$106,800; however, that amount shall annually thereafter be
9increased by the lesser of (i) 3% of that amount, including all
10previous adjustments, or (ii) one-half the annual unadjusted
11percentage increase (but not less than zero) in the consumer
12price index-u for the 12 months ending with the September
13preceding each November 1, including all previous adjustments.
14    For the purposes of this Section, "consumer price index-u"
15means the index published by the Bureau of Labor Statistics of
16the United States Department of Labor that measures the average
17change in prices of goods and services purchased by all urban
18consumers, United States city average, all items, 1982-84 =
19100. The new amount resulting from each annual adjustment shall
20be determined by the Public Pension Division of the Department
21of Insurance and made available to the boards of the retirement
22systems and pension funds by November 1 of each year.
23    (c) A member or participant is entitled to a retirement
24annuity upon written application if he or she has attained age
2567 (beginning January 1, 2015, age 65 with respect to service
26under Article 12 of this Code that is subject to this Section)

 

 

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1and has at least 10 years of service credit and is otherwise
2eligible under the requirements of the applicable Article.
3    A member or participant who has attained age 62 (beginning
4January 1, 2015, age 60 with respect to service under Article
512 of this Code that is subject to this Section) and has at
6least 10 years of service credit and is otherwise eligible
7under the requirements of the applicable Article may elect to
8receive the lower retirement annuity provided in subsection (d)
9of this Section.
10    (d) The retirement annuity of a member or participant who
11is retiring after attaining age 62 (beginning January 1, 2015,
12age 60 with respect to service under Article 12 of this Code
13that is subject to this Section) with at least 10 years of
14service credit shall be reduced by one-half of 1% for each full
15month that the member's age is under age 67 (beginning January
161, 2015, age 65 with respect to service under Article 12 of
17this Code that is subject to this Section).
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 (beginning January 1,
212015, age 65 with respect to service under Article 12 of this
22Code that is subject to this Section) or the first anniversary
23of the annuity start date, whichever is later. Each annual
24increase shall be calculated at 3% or one-half the annual
25unadjusted percentage increase (but not less than zero) in the
26consumer price index-u for the 12 months ending with the

 

 

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1September preceding each November 1, whichever is less, of the
2originally granted retirement annuity. If the annual
3unadjusted percentage change in the consumer price index-u for
4the 12 months ending with the September preceding each November
51 is zero or there is a decrease, then the annuity shall not be
6increased.
7    (f) The initial survivor's or widow's annuity of an
8otherwise eligible survivor or widow of a retired member or
9participant who first became a member or participant on or
10after January 1, 2011 shall be in the amount of 66 2/3% of the
11retired member's or participant's retirement annuity at the
12date of death. In the case of the death of a member or
13participant who has not retired and who first became a member
14or participant on or after January 1, 2011, eligibility for a
15survivor's or widow's annuity shall be determined by the
16applicable Article of this Code. The initial benefit shall be
1766 2/3% of the earned annuity without a reduction due to age. A
18child's annuity of an otherwise eligible child shall be in the
19amount prescribed under each Article if applicable. Any
20survivor's or widow's annuity shall be increased (1) on each
21January 1 occurring on or after the commencement of the annuity
22if the deceased member died while receiving a retirement
23annuity or (2) in other cases, on each January 1 occurring
24after the first anniversary of the commencement of the annuity.
25Each annual increase shall be calculated at 3% or one-half the
26annual unadjusted percentage increase (but not less than zero)

 

 

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1in the consumer price index-u for the 12 months ending with the
2September preceding each November 1, whichever is less, of the
3originally granted survivor's annuity. If the annual
4unadjusted percentage change in the consumer price index-u for
5the 12 months ending with the September preceding each November
61 is zero or there is a decrease, then the annuity shall not be
7increased.
8    (g) The benefits in Section 14-110 apply only if the person
9is a State policeman, a fire fighter in the fire protection
10service of a department, or a security employee of the
11Department of Corrections or the Department of Juvenile
12Justice, as those terms are defined in subsection (b) of
13Section 14-110. A person who meets the requirements of this
14Section is entitled to an annuity calculated under the
15provisions of Section 14-110, in lieu of the regular or minimum
16retirement annuity, only if the person has withdrawn from
17service with not less than 20 years of eligible creditable
18service and has attained age 60, regardless of whether the
19attainment of age 60 occurs while the person is still in
20service.
21    (h) If a person who first becomes a member or a participant
22of a retirement system or pension fund subject to this Section
23on or after January 1, 2011 is receiving a retirement annuity
24or retirement pension under that system or fund and becomes a
25member or participant under any other system or fund created by
26this Code and is employed on a full-time basis, except for

 

 

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1those members or participants exempted from the provisions of
2this Section under subsection (a) of this Section, then the
3person's retirement annuity or retirement pension under that
4system or fund shall be suspended during that employment. Upon
5termination of that employment, the person's retirement
6annuity or retirement pension payments shall resume and be
7recalculated if recalculation is provided for under the
8applicable Article of this Code.
9    If a person who first becomes a member of a retirement
10system or pension fund subject to this Section on or after
11January 1, 2012 and is receiving a retirement annuity or
12retirement pension under that system or fund and accepts on a
13contractual basis a position to provide services to a
14governmental entity from which he or she has retired, then that
15person's annuity or retirement pension earned as an active
16employee of the employer shall be suspended during that
17contractual service. A person receiving an annuity or
18retirement pension under this Code shall notify the pension
19fund or retirement system from which he or she is receiving an
20annuity or retirement pension, as well as his or her
21contractual employer, of his or her retirement status before
22accepting contractual employment. A person who fails to submit
23such notification shall be guilty of a Class A misdemeanor and
24required to pay a fine of $1,000. Upon termination of that
25contractual employment, the person's retirement annuity or
26retirement pension payments shall resume and, if appropriate,

 

 

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1be recalculated under the applicable provisions of this Code.
2    (i) (Blank).
3    (j) In the case of a conflict between the provisions of
4this Section and any other provision of this Code, the
5provisions of this Section shall control.
6(Source: P.A. 97-609, eff. 1-1-12; 98-92, eff. 7-16-13.)
 
7    (40 ILCS 5/12-130)  (from Ch. 108 1/2, par. 12-130)
8    Sec. 12-130. Retirement prior to age 60. An employee
9withdrawing prior to January 1, 1990 with at least 10 years of
10service and before attainment of age 55 shall be entitled at
11his option to a retirement annuity beginning at age 55.
12    An employee withdrawing prior to January 1, 1990 with at
13least 10 years of service upon or after attainment of age 55,
14and before age 60, shall be entitled to a retirement annuity
15beginning at any time thereafter.
16    An employee who withdraws on or after January 1, 1990 and
17has attained age 45 before January 1, 2015 with at least 10
18years of service and prior to age 60 shall be entitled, at his
19option, to a retirement annuity beginning at any time after
20withdrawal or attainment of age 50, whichever occurs later. An
21employee who has not attained age 45 before January 1, 2015 and
22withdraws on or after that date with at least 10 years of
23service and prior to age 60 shall be entitled, at his option,
24to a retirement annuity beginning at any time after withdrawal
25or attainment of age 58, whichever occurs later.

 

 

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1    Notwithstanding Section 1-103.1, the changes to this
2Section made by this amendatory Act of the 98th General
3Assembly apply regardless of whether the employee was in active
4service on or after the effective date of this amendatory Act,
5but do not apply to a person whose service under this Article
6is subject to Section 1-160.
7    Any employee upon withdrawal after at least 15 years of
8service, upon or after attainment of age 50, and before
9attainment of age 55, who received ordinary disability benefit
10for the maximum period of time provided herein, and who
11continues to be disabled, shall be entitled to a retirement
12annuity.
13    The amount of retirement annuity for any employee who
14entered service prior to July 1, 1971 shall be provided from
15the total of the accumulations as stated in this Section, at
16the employee's attained age on the date of retirement:
17        (a) the accumulation from employee contributions for
18    service annuity on the date of withdrawal, improved by
19    regular interest from the date the employee withdraws to
20    the date he enters upon annuity;
21        (b) 1/10 of the accumulation, on the date of
22    withdrawal, from employer contributions for service
23    annuity, for each complete year of service above 10 years
24    up to 100% of such accumulation, improved by regular
25    interest from the date the employee withdraws to the date
26    he enters upon annuity.

 

 

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1(Source: P.A. 86-272; 86-1028.)
 
2    (40 ILCS 5/12-133.1)  (from Ch. 108 1/2, par. 12-133.1)
3    Sec. 12-133.1. Annual increase in basic retirement
4annuity.
5    (a) Any employee upon withdrawal from service on or after
6July 1, 1965, and retiring on a retirement annuity, shall be
7entitled to an annual increase in his basic retirement annuity
8as defined herein while he is in receipt of such annuity.
9    The term "basic retirement annuity" shall mean the
10retirement annuity of the amount fixed and payable at date of
11retirement of the employee.
12    (b) The annual increase in annuity shall be 1 1/2% of the
13basic retirement annuity. The increase shall first occur in the
14month of January or the month of July, whichever first occurs
15next following or coincidental with the first anniversary of
16retirement. Effective January 1, 1972, the annual rate of
17increase in annuity thereafter shall be 2% of the basic
18retirement annuity, provided that beginning as of January 1,
191976, the annual rate of increase shall be 3% of the basic
20retirement annuity.
21    (b-1) Notwithstanding subsection (b), all automatic annual
22increases payable under this Section on or after January 1,
232015 shall be calculated at 3% or one-half the annual
24unadjusted percentage increase (but not less than 0) in the
25Consumer Price Index-U for the 12 months ending with the

 

 

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1September preceding each November 1, whichever is less, of the
2originally granted retirement annuity.
3    For the purposes of this Article, "Consumer Price Index-U"
4means the index published by the Bureau of Labor Statistics of
5the United States Department of Labor that measures the average
6change in prices of goods and services purchased by all urban
7consumers, United States city average, all items, 1982-84 =
8100. The new amount resulting from each annual adjustment shall
9be determined by the Public Pension Division of the Department
10of Insurance.
11    Notwithstanding Section 1-103.1, this subsection (b-1) is
12applicable without regard to whether the employee was in active
13service on or after the effective date of this amendatory Act
14of the 98th General Assembly. This subsection (b-1) is also
15applicable to any former employee who on or after the effective
16date of this amendatory Act of the 98th General Assembly is
17receiving a retirement annuity pursuant to the provisions of
18this Section.
19    (b-2) Notwithstanding any other provision of this Article,
20no automatic annual increase in retirement annuity payable
21under this Section shall be granted to any person by the Fund
22in 2015, 2017, and 2019 under this Article or under Section
231-160 of this Code as it applies to this Article. In the years
242016, 2018, 2020, and thereafter, the Fund shall continue to
25pay amounts accruing from automatic annual increases in the
26manner provided by this Code.

 

 

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1    Notwithstanding Section 1-103.1, this subsection (b-2) is
2applicable without regard to whether the employee was in active
3service on or after the effective date of this amendatory Act
4of the 98th General Assembly. This subsection (b-2) is also
5applicable to any former employee who on or after the effective
6date of this amendatory Act of the 98th General Assembly is
7receiving a retirement annuity pursuant to the provisions of
8this Article.
9    (c) For an employee who retires with less than 30 years of
10service, the increase in the basic retirement annuity shall
11begin not earlier than in the month of January or the month of
12July, whichever occurs first, following or coincidental with
13the employee's attainment of age 60.
14    Subject to the provisions of subsection (b-2), for For an
15employee who retires with at least 30 years of service, the
16annual increase under this Section shall begin in the month of
17January or the month of July, whichever first occurs next
18following or coincidental with the later of (1) the first
19anniversary of retirement or (2) July 1, 1998, without regard
20to the attainment of age 60 and without regard to whether or
21not the employee was in service on or after the effective date
22of this amendatory Act of 1998.
23    (d) The increase in the basic retirement annuity shall not
24be applicable unless the employee otherwise qualified has made
25contributions to the fund as provided herein for an equivalent
26period of one full year. If such contributions were not made,

 

 

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1the employee may make the required payment to the fund at the
2time of retirement, in a single sum, without interest.
3    (e) The additional contributions by an employee towards the
4annual increase in basic retirement annuity shall not be
5refundable, except to an employee who withdraws and applies for
6a refund under this Article, or dies while in service, and also
7in cases where a temporary annuity becomes payable. In such
8cases his contributions shall be refunded without interest.
9(Source: P.A. 90-766, eff. 8-14-98.)
 
10    (40 ILCS 5/12-133.2)  (from Ch. 108 1/2, par. 12-133.2)
11    Sec. 12-133.2. Increases to employee annuitants. The
12provisions of subsections (b-1) and (b-2) of Section 12-133.1
13also apply to the benefits provided under this Section.
14    Employees who retired on service retirement annuity prior
15to July 1, 1965 who were at least 55 years of age at date of
16retirement and had at least 20 years of credited service, who
17shall have attained age 65, and any employee retired on or
18after such date who meets such qualifying conditions and who is
19not eligible for an annual increase in basic retirement annuity
20otherwise provided in this Article, shall be entitled to
21receive benefits under this Section.
22    These benefits shall be in an amount equal to 1 1/2% of the
23service retirement annuity multiplied by the number of full
24years that the annuitant was in receipt of such annuity. This
25payment shall begin in January of 1970, and an additional 1

 

 

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11/2% based upon the original grant of annuity shall be added in
2January of each year thereafter. Beginning January 1, 1972, the
3annual rate of increase in annuity shall be 2% of the original
4grant of annuity and shall also apply thereafter to any person
5who shall have had at least 15 years of credited service and
6less than 20 years on the same basis as was applicable to
7persons retired with 20 or more years of service; provided that
8beginning January 1, 1976, the annual rate of increase in
9retirement annuity shall be 3% of the basic retirement annuity.
10    An employee annuitant who otherwise qualifies for the
11aforesaid benefit shall make a one-time contribution of 1% of
12the final monthly average salary multiplied by the number of
13completed years of service forming the basis of his service
14retirement annuity, provided that if the annuity was computed
15on any other basis, the contribution shall be 1% of the rate of
16monthly salary in effect on the date of retirement multiplied
17by the number of completed years of service forming the basis
18of his service retirement annuity.
19(Source: P.A. 87-1265.)
 
20    (40 ILCS 5/12-140)  (from Ch. 108 1/2, par. 12-140)
21    Sec. 12-140. Duty disability benefit. An employee who
22becomes disabled as the direct result of injury incurred in the
23performance of an act of duty and cannot perform the duties of
24the regularly assigned position, is entitled to receive, while
25so disabled, a benefit of 75% of the salary at the date when

 

 

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1such duty disability benefits commence, subject to the
2conditions hereinafter stated, except that beginning January
31, 2015, such duty disability benefits shall be reduced to 74%
4of that salary; beginning January 1, 2017, such duty disability
5benefits shall be reduced to 73% of that salary; and beginning
6January 1, 2019, such duty disability benefits shall be reduced
7to 72% of that salary.
8    In the event an employee returns to service from any duty
9disability and renders actual employment in pay status
10performing the duties of the regularly assigned position for at
11least 60 days, and again becomes disabled, whether due to the
12previous disability or a new disability, the salary to be used
13in the computation of the benefit shall be the salary in effect
14at the date of the last day of service prior to the latest
15disability.
16    The employee shall also receive a further benefit of $20
17per month on account of each eligible minor child as prescribed
18in Section 12-137, but the combined benefit to employee and
19children shall not exceed the annual salary at the date of such
20disability less the sums that would be deducted from his salary
21for service annuity and spouse's service annuity.
22    The benefit prescribed herein shall be payable during
23disability until the employee attains age 65, if disability is
24incurred before age 60, or for a period of 5 years if
25disability is incurred at age 60 or older. If the disability is
26incurred after age 65, this 5 year period may be reduced if

 

 

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1such reduction can be justified on the basis of actuarial cost
2data approved by the board upon the recommendation of the
3actuary. At such time if the employee remains disabled the
4employee may retire on a retirement annuity.
5    If an employee dies as the direct result of injury incurred
6in the performance of an act of duty, or if death results from
7any cause which is compensable under the Workers' Occupational
8Diseases Act, a surviving spouse shall be entitled to a benefit
9(subject to the modifications stated in Section 12-141) of 50%
10of the employee's salary as it was at the date of injury
11resulting in death, until the date when the employee would have
12attained age 65, if injury was incurred under age 60, or for a
13period of 5 years if disability is incurred at age 60 or older.
14After such date, the spouse shall be entitled to receive the
15reversionary annuity that would have been fixed had the
16employee continued in service at the rate of salary received at
17the date of his injury resulting in death, until the employee
18attained age 65 or as stated herein and had then retired.
19    If a spouse remarries while under age 55 while in receipt
20of a benefit under this section, the benefit shall terminate.
21Such termination shall be final and shall not be affected by
22any change thereafter in his or her marital status.
23    Notwithstanding Section 1-103.1, the changes to this
24Section made by this amendatory Act of the 98th General
25Assembly apply to duty disability benefits payable on or after
26January 1, 2015, regardless of whether the recipient is deemed

 

 

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1to be in service on or after the effective date of this
2amendatory Act.
3(Source: P.A. 86-272.)
 
4    (40 ILCS 5/12-149)   (from Ch. 108 1/2, par. 12-149)
5    Sec. 12-149. Financing.
6    (a) The board of park commissioners of any such park
7district shall annually levy a tax (in addition to the taxes
8now authorized by law) upon all taxable property embraced in
9the district, at the rate which, when added to the employee
10contributions under this Article and applied to the fund
11created hereunder, shall be sufficient to provide for the
12purposes of this Article in accordance with the provisions
13thereof. Such tax shall be levied and collected with and in
14like manner as the general taxes of such district, and shall
15not in any event be included within any limitations of rate for
16general park purposes as now or hereafter provided by law, but
17shall be excluded therefrom and be in addition thereto.
18    The amount of such annual tax to and including the year
191977 shall not exceed .0275% of the value, as equalized or
20assessed by the Department of Revenue, of all taxable property
21embraced within the park district, provided that for the year
221978, and for each year thereafter, the amount of such annual
23tax shall be at a rate on the dollar of assessed valuation of
24all taxable property that will produce, when extended, for the
25year 1978 the following sum: 0.825 times the amount of employee

 

 

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1contributions during the fiscal year 1976; for the year 1979,
20.85 times the amount of employee contributions during the
3fiscal year 1977; for the year 1980, 0.90 times the amount of
4employee contributions during the fiscal year 1978; for the
5year 1981, 0.95 times the amount of employee contributions
6during the fiscal year 1979; for the year 1982, 1.00 times the
7amount of employee contributions during the fiscal year 1980;
8for the year 1983, 1.05 times the amount of contributions made
9on behalf of employees during the fiscal year 1981; and for the
10year 1984 and each year thereafter through the year 2013, an
11amount equal to 1.10 times the employee contributions during
12the fiscal year 2-years prior to the year for which the
13applicable tax is levied. For the year 2014, this calculation
14shall be 1.10 times the amount of employee contributions during
15the 12-month fiscal year ending June 30, 2012; and for the year
162015, this calculation shall be 1.70 1.10 times the amount of
17employee contributions during the 12-month fiscal year ending
18December 31, 2013. For the year 2016, this calculation shall be
19an amount equal to 1.70 times; for the years 2017 and 2018,
20this calculation shall be an amount equal to 2.30 times; and
21for the year 2019 and each year thereafter, until the Fund
22attains a funded ratio of at least 90% with the funded ratio
23being the ratio of the actuarial value of assets to the total
24actuarial liability, this calculation shall be an amount equal
25to 2.90 times the employee contributions during the fiscal year
262 years prior to the year for which the applicable tax is

 

 

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1levied. Beginning in the fiscal year in which the Fund attains
2a funding ratio of at least 90%, the contribution shall be the
3lesser of (1) 2.90 times the employee contributions during the
4fiscal year 2 years prior to the year for which the applicable
5tax is levied, or (2) the amount needed to maintain a funded
6ratio of 90%.
7    In addition to the contributions required under the other
8provisions of this Article, by November 1 of the following
9specified years, the employer shall contribute to the Fund the
10following specified amounts: $12,500,000 in 2015; $12,500,000
11in 2016; and $50,000,000 in 2019. The additional employer
12contributions required under this subsection (a) are intended
13to decrease the unfunded liability of the Fund and shall not
14decrease the amount of the employer contributions required
15under the other provisions of this Article. The additional
16employer contributions made under this subsection (a) may be
17used by the Fund for any of its lawful purposes.
18    (b) As used in this Section, the term "employee
19contributions" means contributions by employees for retirement
20annuity, spouse's annuity, automatic increase in retirement
21annuity, and death benefit.
22    In making required contributions under this Section, the
23employer may, in lieu of levying all or a portion of the tax
24required under this Section, deposit an amount not less than
25the required amount of employer contributions derived from any
26source legally available for that purpose.

 

 

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1    (c) In respect to park district employees, other than
2policemen, who are transferred to the employment of a city by
3virtue of the "Exchange of Functions Act of 1957", the
4corporate authorities of the city shall annually levy a tax
5upon all taxable property embraced in the city, as equalized or
6assessed by the Department of Revenue, at such rate per cent of
7the value of such property as shall be sufficient, when added
8to the amounts deducted from the salary or wages of such
9employees, to provide the benefits to which such employees,
10their dependents and beneficiaries are entitled under the
11provisions of this Article. The park district shall not levy a
12tax hereunder in respect to such employees. The tax levied by
13the city under authority of this Article shall be in addition
14to and exclusive of all other taxes authorized by law to be
15levied by the city for corporate, annuity fund or other
16purposes.
17    (d) All moneys accruing from the levy and collection of
18taxes, pursuant to this section, shall be remitted to the board
19by the employers as soon as they are received. Where a city has
20levied a tax pursuant to this Section in respect to park
21district employees transferred to the employment of a city, the
22treasurer of such city or other authorized officer shall remit
23the moneys accruing from the levy and collection of such tax as
24soon as they are received. Such remittances shall be made upon
25a pro rata share basis, whereby each employer shall pay to the
26board such employer's proportionate percentage of each payment

 

 

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1of taxes received by it, according to the ratio which its tax
2levy for this fund bears to the total tax levy of such
3employer.
4    (e) Should any board of park commissioners included under
5the provisions of this Article be without authority to levy the
6tax provided in this Section the corporation authorities
7(meaning the supervisor, clerk and assessor) of the town or
8towns for which such board shall be the board of park
9commissioners shall levy such tax.
10    (f) Employer contributions to the Fund may be reduced by
11$5,000,000 for calendar years 2004 and 2005.
12(Source: P.A. 97-973, eff. 8-16-12.)
 
13    (40 ILCS 5/12-150)  (from Ch. 108 1/2, par. 12-150)
14    Sec. 12-150. Contributions by employees for service
15annuity.
16    (a) From each payment of salary to a present employee
17beginning August 4, 1961, and prior to September 1, 1971, there
18shall be deducted as contributions for service annuity 6% of
19such payment. Beginning September 1, 1971, the deduction shall
20be 6 1/2% of salary. Beginning January 1, 2015, the deduction
21shall be 8% of salary. Beginning January 1, 2017, the deduction
22shall be 9% of salary. Beginning January 1, 2019, the deduction
23shall be 10% of salary. These contributions shall continue
24until the amounts thus deducted will provide an accumulation,
25at regular interest, at least equal to the amount that would be

 

 

09800SB1523ham003- 22 -LRB098 07986 AMC 49653 a

1provided on such date from employee contributions, assuming
2regular interest to such date, if such employee had been
3contributing in accordance with the provisions of "The 1919
4Act" and this Article from the beginning of his service and the
5salary of the employee during his prior service was the same as
6it was on July 1, 1919, or on July 1, 1937 in the case of an
7employee of the board.
8    (b) From each payment of salary to a future entrant
9beginning August 4, 1961, and prior to September 1, 1971, there
10shall be deducted as contributions for service annuity 6% of
11such payment. Beginning September 1, 1971, the deduction shall
12be 6 1/2% of salary. Beginning January 1, 1990, the deduction
13shall be 7% of salary. Beginning January 1, 2015, the deduction
14shall be 8% of salary. Beginning January 1, 2017, the deduction
15shall be 9% of salary. Beginning January 1, 2019, the deduction
16shall be 10% of salary. Beginning with the first pay period on
17or after the date when the funded ratio of the Fund is first
18determined to have reached the 90% funding goal, and each pay
19period thereafter for as long as the Fund maintains a funding
20ratio of 90% or more, employee contributions shall be 8.5% of
21salary for the service annuity. If the funding ratio falls
22below 90%, then employee contributions for the service annuity
23shall revert to 10% of salary until such time as the Fund once
24again is determined to have reached the 90% funding goal, at
25which time the 8.5% of salary employee contribution for the
26service annuity shall resume.

 

 

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1    (c) For service rendered prior to August 4, 1961, the rates
2of contribution by employees for service annuity shall be as
3follows: July 1, 1919 to July 20, 1947, inclusive, 4% of
4salary; July 21, 1947 to August 3, 1961, inclusive, 5% of
5salary.
6    For the period from July 1, 1919, to August 4, 1961 such
7deductions for a present employee shall continue until such
8date as the amounts deducted will provide an accumulation at
9least equal to that which would be provided on such date,
10assuming regular interest to such date, from deductions from
11salary of such employee if such employee had been under the
12provisions of "The 1919 Act" and this Article from the
13beginning of his service and the salary of such employee during
14his period of prior service was the same as it was on July 1,
151919 or on July 1, 1937 in the case of an employee of the board.
16    (d) Any employee shall have the option to contribute for
17service annuity an amount, together with regular interest,
18equal to the difference between the amount he had accumulated
19in the fund on June 30, 1947, from contributions at the rate of
204% of salary, together with regular interest, and the amount he
21would have accumulated, together with regular interest, if he
22had made contributions at the rate of 5% of salary. All such
23contributions shall be subject to salary limitations and other
24conditions in effect prior to July 1, 1947. Upon making such
25contribution the employer of such employee shall contribute in
26the ratio of 2 to 1 with such employee.

 

 

09800SB1523ham003- 24 -LRB098 07986 AMC 49653 a

1(Source: P.A. 86-272.)
 
2    (40 ILCS 5/12-150.5 new)
3    Sec. 12-150.5. Use of contributions for health care
4subsidies. The Fund shall not use any contribution received by
5the Fund under this Article to provide a subsidy for the cost
6of participation in a retiree health care program.
 
7    (40 ILCS 5/12-155.5 new)
8    Sec. 12-155.5. Funding obligation.
9    (a) Beginning January 1, 2015, the board of park
10commissioners shall be obligated to contribute to the Fund in
11each fiscal year an amount not less than the amount determined
12annually under subsection (a) of Section 12-149 of this Code.
13Notwithstanding any other provision of law, if the board of
14park commissioners fails to pay the amount guaranteed under
15this Section within 60 days after the date set forth by the
16retirement board, the retirement board may bring a mandamus
17action in the Illinois Supreme Court or the Circuit Court of
18Cook County to compel the board of park commissioners to make
19the required payment, irrespective of other remedies that may
20be available to the Fund. The obligations and causes of action
21created under this Section shall be in addition to any other
22right or remedy otherwise accorded by common law or State or
23federal law, and nothing in this Section shall be construed to
24deny, abrogate, impair, or waive any such common law or

 

 

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1statutory right or remedy.
2    (b) In ordering the board of park commissioners to make the
3required payment, the court may order a reasonable payment
4schedule to enable the board of park commissioners to make the
5required payment without significantly imperiling the public
6health, safety, or welfare. Any payments required to be made by
7the board of park commissioners pursuant to this Section are
8expressly subordinated to the payment of the principal,
9interest, and premium, if any, on any bonded debt obligation of
10the board of park commissioners, either currently outstanding
11or to be issued, for which the source of repayment or security
12thereon is derived directly or indirectly from tax revenues
13collected by the board of park commissioners. Payments on such
14bonded obligations include any statutory fund transfers or
15other prefunding mechanisms or formulas set forth, now or
16hereafter, in State law or bond indentures, into debt service
17funds or accounts of the board of park commissioners related to
18such bonded obligations, consistent with the payment schedules
19associated with such obligations.
 
20    (40 ILCS 5/12-195 new)
21    Sec. 12-195. Application and expiration of new benefit
22increases.
23    (a) As used in this Section, "new benefit increase" means
24an increase in the amount of any benefit provided under this
25Article, or an expansion of the conditions of eligibility for

 

 

09800SB1523ham003- 26 -LRB098 07986 AMC 49653 a

1any benefit under this Article, that results from an amendment
2to this Code that takes effect after the effective date of this
3amendatory Act of the 98th General Assembly.
4    (b) Notwithstanding any other provision of this Code or any
5subsequent amendment to this Code, every new benefit increase
6is subject to this Section and shall be deemed to be granted
7only in conformance with and contingent upon compliance with
8the provisions of this Section.
9    (c) The Public Act enacting a new benefit increase must
10identify and provide for payment to the Fund of additional
11funding at least sufficient to fund the resulting annual
12increase in cost to the Fund as it accrues.
13    Every new benefit increase is contingent upon the General
14Assembly providing the additional funding required under this
15subsection (c). The State Actuary shall analyze whether
16adequate additional funding has been provided for the new
17benefit increase. A new benefit increase created by a Public
18Act that does not include the additional funding required under
19this subsection (c) is null and void. If the State Actuary
20determines that the additional funding provided for a new
21benefit increase under this subsection (c) is or has become
22inadequate, it may so certify to the Governor and the State
23Comptroller and, in the absence of corrective action by the
24General Assembly, the new benefit increase shall expire at the
25end of the fiscal year in which the certification is made.
 

 

 

09800SB1523ham003- 27 -LRB098 07986 AMC 49653 a

1    Section 90. The State Mandates Act is amended by adding
2Section 8.37 as follows:
 
3    (30 ILCS 805/8.37 new)
4    Sec. 8.37. Exempt mandate. Notwithstanding Sections 6 and 8
5of this Act, no reimbursement by the State is required for the
6implementation of any mandate created by this amendatory Act of
7the 98th General Assembly.
 
8    Section 97. Inseverability. The changes made by this
9amendatory Act are inseverable.".