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Full Text of SB2437  99th General Assembly

SB2437ham004 99TH GENERAL ASSEMBLY

Rep. Barbara Flynn Currie

Filed: 11/28/2016

 

 


 

 


 
09900SB2437ham004LRB099 17093 RPS 51789 a

1
AMENDMENT TO SENATE BILL 2437

2    AMENDMENT NO. ______. Amend Senate Bill 2437, 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, 8-113, 8-173, 8-174, 8-243.2, 8-244,
78-244.1, 8-251, 11-169, 11-170, 11-223.1, and 11-230 and by
8adding Sections 8-228.5, 11-125.9, and 11-197.7 as follows:
 
9    (40 ILCS 5/1-160)
10    (Text of Section WITHOUT the changes made by P.A. 98-641,
11which has been held unconstitutional)
12    Sec. 1-160. Provisions applicable to new hires.
13    (a) The provisions of this Section apply to a person who,
14on or after January 1, 2011, first becomes a member or a
15participant under any reciprocal retirement system or pension
16fund established under this Code, other than a retirement

 

 

09900SB2437ham004- 2 -LRB099 17093 RPS 51789 a

1system or pension fund established under Article 2, 3, 4, 5, 6,
215 or 18 of this Code, notwithstanding any other provision of
3this Code to the contrary, but do not apply to any self-managed
4plan established under this Code, to any person with respect to
5service as a sheriff's law enforcement employee under Article
67, or to any participant of the retirement plan established
7under Section 22-101. Notwithstanding anything to the contrary
8in this Section, for purposes of this Section, a person who
9participated in a retirement system under Article 15 prior to
10January 1, 2011 shall be deemed a person who first became a
11member or participant prior to January 1, 2011 under any
12retirement system or pension fund subject to this Section. The
13changes made to this Section by Public Act 98-596 this
14amendatory Act of the 98th General Assembly are a clarification
15of existing law and are intended to be retroactive to January
161, 2011 (the effective date of Public Act 96-889),
17notwithstanding the provisions of Section 1-103.1 of this Code.
18    (b) "Final average salary" means the average monthly (or
19annual) salary obtained by dividing the total salary or
20earnings calculated under the Article applicable to the member
21or participant during the 96 consecutive months (or 8
22consecutive years) of service within the last 120 months (or 10
23years) of service in which the total salary or earnings
24calculated under the applicable Article was the highest by the
25number of months (or years) of service in that period. For the
26purposes of a person who first becomes a member or participant

 

 

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1of any retirement system or pension fund to which this Section
2applies on or after January 1, 2011, in this Code, "final
3average salary" shall be substituted for the following:
4        (1) In Article 7 (except for service as sheriff's law
5    enforcement employees), "final rate of earnings".
6        (2) In Articles 8, 9, 10, 11, and 12, "highest average
7    annual salary for any 4 consecutive years within the last
8    10 years of service immediately preceding the date of
9    withdrawal".
10        (3) In Article 13, "average final salary".
11        (4) In Article 14, "final average compensation".
12        (5) In Article 17, "average salary".
13        (6) In Section 22-207, "wages or salary received by him
14    at the date of retirement or discharge".
15    (b-5) Beginning on January 1, 2011, for all purposes under
16this Code (including without limitation the calculation of
17benefits and employee contributions), the annual earnings,
18salary, or wages (based on the plan year) of a member or
19participant to whom this Section applies shall not exceed
20$106,800; however, that amount shall annually thereafter be
21increased by the lesser of (i) 3% of that amount, including all
22previous adjustments, or (ii) one-half the annual unadjusted
23percentage increase (but not less than zero) in the consumer
24price index-u for the 12 months ending with the September
25preceding each November 1, including all previous adjustments.
26    For the purposes of this Section, "consumer price index-u"

 

 

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1means the index published by the Bureau of Labor Statistics of
2the United States Department of Labor that measures the average
3change in prices of goods and services purchased by all urban
4consumers, United States city average, all items, 1982-84 =
5100. The new amount resulting from each annual adjustment shall
6be determined by the Public Pension Division of the Department
7of Insurance and made available to the boards of the retirement
8systems and pension funds by November 1 of each year.
9    (c) A member or participant is entitled to a retirement
10annuity upon written application if he or she has attained age
1167 (beginning January 1, 2015, age 65 with respect to service
12under Article 12 of this Code that is subject to this Section)
13and has at least 10 years of service credit and is otherwise
14eligible under the requirements of the applicable Article.
15    A member or participant who has attained age 62 (beginning
16January 1, 2015, age 60 with respect to service under Article
1712 of this Code that is subject to this Section) and has at
18least 10 years of service credit and is otherwise eligible
19under the requirements of the applicable Article may elect to
20receive the lower retirement annuity provided in subsection (d)
21of this Section.
22    (c-5) A person who first becomes a member or a participant
23under Article 8 or Article 11 of this Code on or after the
24effective date of this amendatory Act of the 99th General
25Assembly, notwithstanding any other provision of this Code to
26the contrary, is entitled to a retirement annuity upon written

 

 

09900SB2437ham004- 5 -LRB099 17093 RPS 51789 a

1application if he or she has attained age 65 and has at least
210 years of service credit under Article 8 or Article 11 of
3this Code and is otherwise eligible under the requirements of
4Article 8 or Article 11 of this Code, whichever is applicable.
5    (d) The retirement annuity of a member or participant who
6is retiring after attaining age 62 (beginning January 1, 2015,
7age 60 with respect to service under Article 12 of this Code
8that is subject to this Section) with at least 10 years of
9service credit shall be reduced by one-half of 1% for each full
10month that the member's age is under age 67 (beginning January
111, 2015, age 65 with respect to service under Article 12 of
12this Code that is subject to this Section).
13    (d-5) The retirement annuity of a person who first becomes
14a member or a participant under Article 8 or Article 11 of this
15Code on or after the effective date of this amendatory Act of
16the 99th General Assembly who is retiring at age 60 with at
17least 10 years of service credit under Article 8 or Article 11
18shall be reduced by one-half of 1% for each full month that the
19member's age is under age 65.
20    (d-10) Each person who first became a member or participant
21under Article 8 or Article 11 of this Code on or after January
221, 2011 and prior to the effective date of this amendatory Act
23of the 99th General Assembly shall make an irrevocable election
24either:
25        (i) to be eligible for the reduced retirement age
26    provided in subsections (c-5) and (d-5) of this Section,

 

 

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1    the eligibility for which is conditioned upon the member or
2    participant agreeing to the increases in employee
3    contributions for age and service annuities provided in
4    subsection (a-5) of Section 8-174 of this Code (for service
5    under Article 8) or subsection (a-5) of Section 11-170 of
6    this Code (for service under Article 11); or
7        (ii) to not agree to item (i) of this subsection
8    (d-10), in which case the member or participant shall
9    continue to be subject to the retirement age provisions in
10    subsections (c) and (d) of this Section and the employee
11    contributions for age and service annuity as provided in
12    subsection (a) of Section 8-174 of this Code (for service
13    under Article 8) or subsection (a) of Section 11-170 of
14    this Code (for service under Article 11).
15    The election provided for in this subsection shall be made
16between June 1, 2017 and July 15, 2017. A person subject to
17this subsection who makes the required election shall remain
18bound by that election. A person subject to this subsection who
19fails for any reason to make the required election within the
20time specified in this subsection shall be deemed to have made
21the election under item (ii).
22    (e) Any retirement annuity or supplemental annuity shall be
23subject to annual increases on the January 1 occurring either
24on or after the attainment of age 67 (beginning January 1,
252015, age 65 with respect to service under Article 12 of this
26Code that is subject to this Section and beginning on the

 

 

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1effective date of this amendatory Act of the 99th General
2Assembly, age 65 with respect to persons who: (i) first became
3members or participants under Article 8 or Article 11 of this
4Code on or after the effective date of this amendatory Act of
5the 99th General Assembly; or (ii) first became members or
6participants under Article 8 or Article 11 of this Code on or
7after January 1, 2011 and before the effective date of this
8amendatory Act of the 99th General Assembly and made the
9election under item (i) of subsection (d-10) of this Section)
10or the first anniversary of the annuity start date, whichever
11is later. Each annual increase shall be calculated at 3% or
12one-half the annual unadjusted percentage increase (but not
13less than zero) in the consumer price index-u for the 12 months
14ending with the September preceding each November 1, whichever
15is less, of the originally granted retirement annuity. If the
16annual unadjusted percentage change in the consumer price
17index-u for the 12 months ending with the September preceding
18each November 1 is zero or there is a decrease, then the
19annuity shall not be increased.
20    Notwithstanding Section 1-103.1 of this Code, the changes
21made to this Section by this amendatory Act of the 99th General
22Assembly are applicable without regard to whether the employee
23was in active service on or after the effective date of this
24amendatory Act of the 99th General Assembly.
25    (f) The initial survivor's or widow's annuity of an
26otherwise eligible survivor or widow of a retired member or

 

 

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1participant who first became a member or participant on or
2after January 1, 2011 shall be in the amount of 66 2/3% of the
3retired member's or participant's retirement annuity at the
4date of death. In the case of the death of a member or
5participant who has not retired and who first became a member
6or participant on or after January 1, 2011, eligibility for a
7survivor's or widow's annuity shall be determined by the
8applicable Article of this Code. The initial benefit shall be
966 2/3% of the earned annuity without a reduction due to age. A
10child's annuity of an otherwise eligible child shall be in the
11amount prescribed under each Article if applicable. Any
12survivor's or widow's annuity shall be increased (1) on each
13January 1 occurring on or after the commencement of the annuity
14if the deceased member died while receiving a retirement
15annuity or (2) in other cases, on each January 1 occurring
16after the first anniversary of the commencement of the annuity.
17Each annual increase shall be calculated at 3% or one-half the
18annual unadjusted percentage increase (but not less than zero)
19in the consumer price index-u for the 12 months ending with the
20September preceding each November 1, whichever is less, of the
21originally granted survivor's annuity. If the annual
22unadjusted percentage change in the consumer price index-u for
23the 12 months ending with the September preceding each November
241 is zero or there is a decrease, then the annuity shall not be
25increased.
26    (g) The benefits in Section 14-110 apply only if the person

 

 

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

 

 

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1    If a person who first becomes a member of a retirement
2system or pension fund subject to this Section on or after
3January 1, 2012 and is receiving a retirement annuity or
4retirement pension under that system or fund and accepts on a
5contractual basis a position to provide services to a
6governmental entity from which he or she has retired, then that
7person's annuity or retirement pension earned as an active
8employee of the employer shall be suspended during that
9contractual service. A person receiving an annuity or
10retirement pension under this Code shall notify the pension
11fund or retirement system from which he or she is receiving an
12annuity or retirement pension, as well as his or her
13contractual employer, of his or her retirement status before
14accepting contractual employment. A person who fails to submit
15such notification shall be guilty of a Class A misdemeanor and
16required to pay a fine of $1,000. Upon termination of that
17contractual employment, the person's retirement annuity or
18retirement pension payments shall resume and, if appropriate,
19be recalculated under the applicable provisions of this Code.
20    (i) (Blank).
21    (j) In the case of a conflict between the provisions of
22this Section and any other provision of this Code, the
23provisions of this Section shall control.
24(Source: P.A. 97-609, eff. 1-1-12; 98-92, eff. 7-16-13; 98-596,
25eff. 11-19-13; 98-622, eff. 6-1-14; revised 3-24-16.)
 

 

 

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1    (40 ILCS 5/8-113)  (from Ch. 108 1/2, par. 8-113)
2    Sec. 8-113. Municipal employee, employee, contributor, or
3participant. "Municipal employee", "employee", "contributor",
4or "participant":
5    (a) Any employee of an employer employed in the classified
6civil service thereof other than by temporary appointment or in
7a position excluded or exempt from the classified service by
8the Civil Service Act, or in the case of a city operating under
9a personnel ordinance, any employee of an employer employed in
10the classified or career service under the provisions of a
11personnel ordinance, other than in a provisional or exempt
12position as specified in such ordinance or in rules and
13regulations formulated thereunder.
14    (b) Any employee in the service of an employer before the
15Civil Service Act came in effect for the employer.
16    (c) Any person employed by the board.
17    (d) Any person employed after December 31, 1949, but prior
18to January 1, 1984, in the service of the employer by temporary
19appointment or in a position exempt from the classified service
20as set forth in the Civil Service Act, or in a provisional or
21exempt position as specified in the personnel ordinance, who
22meets the following qualifications:
23        (1) has rendered service during not less than 12
24    calendar months to an employer as an employee, officer, or
25    official, 4 months of which must have been consecutive full
26    normal working months of service rendered immediately

 

 

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1    prior to filing application to be included; and
2        (2) files written application with the board, while in
3    the service, to be included hereunder.
4    (e) After December 31, 1949, any alderman or other officer
5or official of the employer, who files, while in office,
6written application with the board to be included hereunder.
7    (f) Beginning January 1, 1984, any person employed by an
8employer other than the Chicago Housing Authority or the Public
9Building Commission of the city, whether or not such person is
10serving by temporary appointment or in a position exempt from
11the classified service as set forth in the Civil Service Act,
12or in a provisional or exempt position as specified in the
13personnel ordinance, provided that such person is neither (1)
14an alderman or other officer or official of the employer, nor
15(2) participating, on the basis of such employment, in any
16other pension fund or retirement system established under this
17Act.
18    (g) After December 31, 1959, any person employed in the law
19department of the city, or municipal court or Board of Election
20Commissioners of the city, who was a contributor and
21participant, on December 31, 1959, in the annuity and benefit
22fund in operation in the city on said date, by virtue of the
23Court and Law Department Employees' Annuity Act or the Board of
24Election Commissioners Employees' Annuity Act.
25    After December 31, 1959, the foregoing definition includes
26any other person employed or to be employed in the law

 

 

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1department, or municipal court (other than as a judge), or
2Board of Election Commissioners (if his salary is provided by
3appropriation of the city council of the city and his salary
4paid by the city) -- subject, however, in the case of such
5persons not participants on December 31, 1959, to compliance
6with the same qualifications and restrictions otherwise set
7forth in this Section and made generally applicable to
8employees or officers of the city concerning eligibility for
9participation or membership.
10    Notwithstanding any other provision in this Section, any
11person who first becomes employed in the law department of the
12city on or after the effective date of this amendatory Act of
13the 99th General Assembly shall be included within the
14foregoing definition, effective upon the date the person first
15becomes so employed, regardless of the nature of the
16appointment the person holds under the provisions of a
17personnel ordinance.
18    (h) After December 31, 1965, any person employed in the
19public library of the city -- and any other person -- who was a
20contributor and participant, on December 31, 1965, in the
21pension fund in operation in the city on said date, by virtue
22of the Public Library Employees' Pension Act.
23    (i) After December 31, 1968, any person employed in the
24house of correction of the city, who was a contributor and
25participant, on December 31, 1968, in the pension fund in
26operation in the city on said date, by virtue of the House of

 

 

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1Correction Employees' Pension Act.
2    (j) Any person employed full-time on or after the effective
3date of this amendatory Act of the 92nd General Assembly by the
4Chicago Housing Authority who has elected to participate in
5this Fund as provided in subsection (a) of Section 8-230.9.
6    (k) Any person employed full-time by the Public Building
7Commission of the city who has elected to participate in this
8Fund as provided in subsection (d) of Section 8-230.7.
9(Source: P.A. 92-599, eff. 6-28-02.)
 
10    (40 ILCS 5/8-173)  (from Ch. 108 1/2, par. 8-173)
11    (Text of Section WITHOUT the changes made by P.A. 98-641,
12which has been held unconstitutional)
13    Sec. 8-173. Financing; tax levy.
14    (a) Except as provided in subsection (f) of this Section,
15the city council of the city shall levy a tax annually upon all
16taxable property in the city at a rate that will produce a sum
17which, when added to the amounts deducted from the salaries of
18the employees or otherwise contributed by them and the amounts
19deposited under subsection (f), will be sufficient for the
20requirements of this Article, but which when extended will
21produce an amount not to exceed the greater of the following:
22(a) the sum obtained by the levy of a tax of .1093% of the
23value, as equalized or assessed by the Department of Revenue,
24of all taxable property within such city, or (b) the sum of
25$12,000,000. However any city in which a Fund has been

 

 

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1established and in operation under this Article for more than 3
2years prior to 1970 shall levy for the year 1970 a tax at a rate
3on the dollar of assessed valuation of all taxable property
4that will produce, when extended, an amount not to exceed 1.2
5times the total amount of contributions made by employees to
6the Fund for annuity purposes in the calendar year 1968, and,
7for the year 1971 and 1972 such levy that will produce, when
8extended, an amount not to exceed 1.3 times the total amount of
9contributions made by employees to the Fund for annuity
10purposes in the calendar years 1969 and 1970, respectively; and
11for the year 1973 an amount not to exceed 1.365 times such
12total amount of contributions made by employees for annuity
13purposes in the calendar year 1971; and for the year 1974 an
14amount not to exceed 1.430 times such total amount of
15contributions made by employees for annuity purposes in the
16calendar year 1972; and for the year 1975 an amount not to
17exceed 1.495 times such total amount of contributions made by
18employees for annuity purposes in the calendar year 1973; and
19for the year 1976 an amount not to exceed 1.560 times such
20total amount of contributions made by employees for annuity
21purposes in the calendar year 1974; and for the year 1977 an
22amount not to exceed 1.625 times such total amount of
23contributions made by employees for annuity purposes in the
24calendar year 1975; and for the year 1978 and each year
25thereafter through levy year 2016, such levy as will produce,
26when extended, an amount not to exceed the total amount of

 

 

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1contributions made by or on behalf of employees to the Fund for
2annuity purposes in the calendar year 2 years prior to the year
3for which the annual applicable tax is levied, multiplied by
41.690 for the years 1978 through 1998 and by 1.250 for the year
51999 and for each year thereafter through levy year 2016.
6Beginning in levy year 2017, and in each year thereafter, the
7levy shall not exceed the amount of the city's total required
8contribution to the Fund for the next payment year, as
9determined under subsection (a-5). For the purposes of this
10Section, the payment year is the year immediately following the
11levy year.
12    The tax shall be levied and collected in like manner with
13the general taxes of the city, and shall be exclusive of and in
14addition to the amount of tax the city is now or may hereafter
15be authorized to levy for general purposes under any laws which
16may limit the amount of tax which the city may levy for general
17purposes. The county clerk of the county in which the city is
18located, in reducing tax levies under the provisions of any Act
19concerning the levy and extension of taxes, shall not consider
20the tax herein provided for as a part of the general tax levy
21for city purposes, and shall not include the same within any
22limitation of the percent of the assessed valuation upon which
23taxes are required to be extended for such city.
24    Revenues derived from such tax shall be paid to the city
25treasurer of the city as collected and held by the city
26treasurer him for the benefit of the fund.

 

 

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1    If the payments on account of taxes are insufficient during
2any year to meet the requirements of this Article, the city may
3issue tax anticipation warrants against the current tax levy.
4    The city may continue to use other lawfully available funds
5in lieu of all or part of the levy, as provided under
6subsection (f) of this Section.
7    (a-5) (1) Beginning in payment year 2018, the city's
8required annual contribution to the Fund for payment years 2018
9through 2022 shall be: for 2018, $266,000,000; for 2019,
10$344,000,000; for 2020, $421,000,000; for 2021, $499,000,000;
11and for 2022, $576,000,000.
12    (2) For payment years 2023 through 2058, the city's
13required annual contribution to the Fund shall be the amount
14determined by the Fund to be equal to the sum of (i) the city's
15portion of the projected normal cost for that fiscal year, plus
16(ii) an amount determined on a level percentage of applicable
17employee payroll basis (reflecting any limits on individual
18participants' pay that apply for benefit and contribution
19purposes under this plan) that is sufficient to bring the total
20actuarial assets of the Fund up to 90% of the total actuarial
21liabilities of the Fund by the end of 2058.
22    (3) For payment years after 2058, the city's required
23annual contribution to the Fund shall be equal to the amount,
24if any, needed to bring the total actuarial assets of the Fund
25up to 90% of the total actuarial liabilities of the Fund as of
26the end of the year. In making the determinations under

 

 

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1paragraphs (2) and (3) of this subsection, the actuarial
2calculations shall be determined under the entry age normal
3actuarial cost method, and any actuarial gains or losses from
4investment return incurred in a fiscal year shall be recognized
5in equal annual amounts over the 5-year period following the
6fiscal year.
7    To the extent that the city's contribution for any of the
8payment years referenced in this subsection is made with
9property taxes, those property taxes shall be levied,
10collected, and paid to the Fund in a like manner with the
11general taxes of the city.
12    (a-10) If the city fails to transmit to the Fund
13contributions required of it under this Article by December 31
14of the year in which such contributions are due, the Fund may,
15after giving notice to the city, certify to the State
16Comptroller the amounts of the delinquent payments, and the
17Comptroller must, beginning in payment year 2018, deduct and
18deposit into the Fund the certified amounts or a portion of
19those amounts from the following proportions of grants of State
20funds to the city:
21        (1) in payment year 2018, one-third of the total amount
22    of any grants of State funds to the city;
23        (2) in payment year 2019, two-thirds of the total
24    amount of any grants of State funds to the city; and
25        (3) in payment year 2020 and each payment year
26    thereafter, the total amount of any grants of State funds

 

 

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1    to the city.
2    The State Comptroller may not deduct from any grants of
3State funds to the city more than the amount of delinquent
4payments certified to the State Comptroller by the Fund.
5    (b) On or before July 1, 2017, and each July 1 thereafter
6January 10, annually, the board shall certify to notify the
7city council the annual amounts required under of the
8requirements of this Article, for which that the tax herein
9provided shall be levied for the following that current year.
10The board shall compute the amounts necessary to be credited to
11the reserves established and maintained as herein provided, and
12shall make an annual determination of the amount of the
13required city contributions, and certify the results thereof to
14the city council.
15    (c) In respect to employees of the city who are transferred
16to the employment of a park district by virtue of the "Exchange
17of Functions Act of 1957", the corporate authorities of the
18park district shall annually levy a tax upon all the taxable
19property in the park district at such rate per cent of the
20value of such property, as equalized or assessed by the
21Department of Revenue, as shall be sufficient, when added to
22the amounts deducted from their salaries and otherwise
23contributed by them to provide the benefits to which they and
24their dependents and beneficiaries are entitled under this
25Article. The city shall not levy a tax hereunder in respect to
26such employees.

 

 

09900SB2437ham004- 20 -LRB099 17093 RPS 51789 a

1    The tax so levied by the park district shall be in addition
2to and exclusive of all other taxes authorized to be levied by
3the park district for corporate, annuity fund, or other
4purposes. The county clerk of the county in which the park
5district is located, in reducing any tax levied under the
6provisions of any act concerning the levy and extension of
7taxes shall not consider such tax as part of the general tax
8levy for park purposes, and shall not include the same in any
9limitation of the per cent of the assessed valuation upon which
10taxes are required to be extended for the park district. The
11proceeds of the tax levied by the park district, upon receipt
12by the district, shall be immediately paid over to the city
13treasurer of the city for the uses and purposes of the fund.
14    The various sums to be contributed by the city and park
15district and allocated for the purposes of this Article, and
16any interest to be contributed by the city, shall be derived
17from the revenue from the taxes authorized in this Section or
18otherwise as expressly provided in this Section.
19    If it is not possible or practicable for the city to make
20contributions for age and service annuity and widow's annuity
21at the same time that employee contributions are made for such
22purposes, such city contributions shall be construed to be due
23and payable as of the end of the fiscal year for which the tax
24is levied and shall accrue thereafter with interest at the
25effective rate until paid.
26    (d) With respect to employees whose wages are funded as

 

 

09900SB2437ham004- 21 -LRB099 17093 RPS 51789 a

1participants under the Comprehensive Employment and Training
2Act of 1973, as amended (P.L. 93-203, 87 Stat. 839, P.L.
393-567, 88 Stat. 1845), hereinafter referred to as CETA,
4subsequent to October 1, 1978, and in instances where the board
5has elected to establish a manpower program reserve, the board
6shall compute the amounts necessary to be credited to the
7manpower program reserves established and maintained as herein
8provided, and shall make a periodic determination of the amount
9of required contributions from the City to the reserve to be
10reimbursed by the federal government in accordance with rules
11and regulations established by the Secretary of the United
12States Department of Labor or his designee, and certify the
13results thereof to the City Council. Any such amounts shall
14become a credit to the City and will be used to reduce the
15amount which the City would otherwise contribute during
16succeeding years for all employees.
17    (e) In lieu of establishing a manpower program reserve with
18respect to employees whose wages are funded as participants
19under the Comprehensive Employment and Training Act of 1973, as
20authorized by subsection (d), the board may elect to establish
21a special municipality contribution rate for all such
22employees. If this option is elected, the City shall contribute
23to the Fund from federal funds provided under the Comprehensive
24Employment and Training Act program at the special rate so
25established and such contributions shall become a credit to the
26City and be used to reduce the amount which the City would

 

 

09900SB2437ham004- 22 -LRB099 17093 RPS 51789 a

1otherwise contribute during succeeding years for all
2employees.
3    (f) In lieu of levying all or a portion of the tax required
4under this Section in any year, the city may deposit with the
5city treasurer no later than March 1 of that year for the
6benefit of the fund, to be held in accordance with this
7Article, an amount that, together with the taxes levied under
8this Section for that year, is not less than the amount of the
9city contributions for that year as certified by the board to
10the city council. The deposit may be derived from any source
11legally available for that purpose, including, but not limited
12to, the proceeds of city borrowings. The making of a deposit
13shall satisfy fully the requirements of this Section for that
14year to the extent of the amounts so deposited. Amounts
15deposited under this subsection may be used by the fund for any
16of the purposes for which the proceeds of the tax levied by the
17city under this Section may be used, including the payment of
18any amount that is otherwise required by this Article to be
19paid from the proceeds of that tax.
20(Source: P.A. 90-31, eff. 6-27-97; 90-655, eff. 7-30-98;
2190-766, eff. 8-14-98.)
 
22    (40 ILCS 5/8-174)   (from Ch. 108 1/2, par. 8-174)
23    (Text of Section WITHOUT the changes made by P.A. 98-641,
24which has been held unconstitutional)
25    Sec. 8-174. Contributions for age and service annuities for

 

 

09900SB2437ham004- 23 -LRB099 17093 RPS 51789 a

1present employees and future entrants. (a) Beginning on the
2effective date and prior to July 1, 1947, 3 1/4%; and beginning
3on July 1, 1947 and prior to July 1, 1953, 5%; and beginning
4July 1, 1953, and prior to January 1, 1972, 6%; and beginning
5January 1, 1972, 6-1/2% of each payment of the salary of each
6present employee and future entrant, except as provided in
7subsection (a-5) and (a-10), shall be contributed to the fund
8as a deduction from salary for age and service annuity.
9    (a-5) Except as provided in subsection (a-10), for an
10employee who, on or after January 1, 2011 and prior to the
11effective date of this amendatory Act of the 99th General
12Assembly, first became a member or participant under this
13Article and made the election under item (i) of subsection
14(d-10) of Section 1-160: prior to the effective date of this
15amendatory Act of the 99th General Assembly, 6.5%; and
16beginning on the effective date of this amendatory Act of the
1799th General Assembly and prior to January 1, 2018, 7.5%; and
18beginning January 1, 2018 and prior to January 1, 2019, 8.5%;
19and beginning January 1, 2019 and thereafter, 9.5% of each
20payment of salary shall be contributed to the fund as a
21deduction from salary for age and service annuity. Beginning
22with the first pay period on or after the date when the funded
23ratio of the fund is first determined to have reached the 90%
24funding goal, and each pay period thereafter for as long as the
25fund maintains a funding ratio of 75% or more, employee
26contributions for age and service annuity for those employees

 

 

09900SB2437ham004- 24 -LRB099 17093 RPS 51789 a

1who made the election under item (i) of subsection (d-10) of
2Section 1-160 shall be 5.5% of each payment of salary. If the
3funding ratio falls below 75%, then employee contributions for
4age and service annuity for those employees who made the
5election under item (i) of subsection (d-10) shall revert to
69.5% until such time as the fund once again is determined to
7have reached a funding ratio of 75%, at which time the 5.5% of
8salary contribution for age and service annuity shall resume.
9An employee who made the election under item (ii) of subsection
10(d-10) of Section 1-160 shall continue to have the
11contributions for age and service annuity determined under
12subsection (a) of this Section.
13    (a-10) For each employee who, on or after the effective
14date of this amendatory Act of the 99th General Assembly
15becomes a member or participant under this Article, 9.5% of
16each payment of salary shall be contributed to the fund as a
17deduction from salary for age and service annuity. Beginning
18with the first pay period on or after the date when the funded
19ratio of the fund is first determined to have reached the 90%
20funding goal, and each pay period thereafter as long as the
21Fund maintains a funding ratio of 75% or more, employee
22contributions for age and service annuity for each employee
23subject to this subsection (a-10) shall be 5.5% of each payment
24of salary. If the funding ratio falls below 75%, then employee
25contributions for each employee subject to this subsection
26(a-10) shall revert to 9.5% until such time as the fund once

 

 

09900SB2437ham004- 25 -LRB099 17093 RPS 51789 a

1again is determined to have reached a funding ratio of 75%, at
2which time the 5.5% of salary contribution for age and service
3annuity shall resume.
4    Such deductions beginning on the effective date and prior
5to July 1, 1947 shall be made for a future entrant while he is
6in the service until he attains age 65 and for a present
7employee while he is in the service until the amount so
8deducted from his salary with the amount deducted from his
9salary or paid by him according to law to any municipal pension
10fund in force on the effective date with interest on both such
11amounts at 4% per annum equals the sum that would have been to
12his credit from sums deducted from his salary if deductions at
13the rate herein stated had been made during his entire service
14until he attained age 65 with interest at 4% per annum for the
15period subsequent to his attainment of age 65. Such deductions
16beginning July 1, 1947 shall be made and continued for
17employees while in the service.
18    (b) (Blank). Concurrently with each employee contribution
19beginning on the effective date and prior to July 1, 1947 the
20city shall contribute 5 3/4%; and beginning on July 1, 1947 and
21prior to July 1, 1953, 7%; and beginning July 1, 1953, 6% of
22each payment of such salary until the employee attains age 65.
23    (c) Each employee contribution made prior to the date the
24age and service annuity for an employee is fixed and each
25corresponding city contribution shall be credited to the
26employee and allocated to the account of the employee for whose

 

 

09900SB2437ham004- 26 -LRB099 17093 RPS 51789 a

1benefit it is made.
2    (d) Notwithstanding Section 1-103.1, the changes to this
3Section made by this amendatory Act of the 99th General
4Assembly apply regardless of whether the employee was in active
5service on or after the effective date of this amendatory Act
6of the 99th General Assembly.
7(Source: P.A. 93-654, eff. 1-16-04.)
 
8    (40 ILCS 5/8-228.5 new)
9    Sec. 8-228.5. Action by Fund against third party;
10subrogation. In those cases where the injury or death for which
11a disability or death benefit is payable under this Article was
12caused under circumstances creating a legal liability on the
13part of some person or entity (hereinafter "third party") to
14pay damages to the employee, legal proceedings may be taken
15against such third party to recover damages notwithstanding the
16Fund's payment of or liability to pay disability or death
17benefits under this Article. In such case, however, if the
18action against such third party is brought by the injured
19employee or his or her personal representative and judgment is
20obtained and paid, or settlement is made with such third party,
21either with or without suit, from the amount received by such
22employee or personal representative, then there shall be paid
23to the Fund the amount of money representing the death or
24disability benefits paid or to be paid to the disabled employee
25pursuant to the provisions of this Article. In all

 

 

09900SB2437ham004- 27 -LRB099 17093 RPS 51789 a

1circumstances where the action against a third party is brought
2by the disabled employee or his or her personal representative,
3the Fund shall have a claim or lien upon any recovery, by
4judgment or settlement, out of which the disabled employee or
5his or her personal representative might be compensated from
6such third party. The Fund may satisfy or enforce any such
7claim or lien only from that portion of a recovery that has
8been, or can be, allocated or attributed to past and future
9lost salary, which recovery is by judgment or settlement. The
10Fund's claim or lien shall not be satisfied or enforced from
11that portion of a recovery that has been, or can be, allocated
12or attributed to medical care and treatment, pain and
13suffering, loss of consortium, and attorney's fees and costs.
14    Where action is brought by the disabled employee or his or
15her personal representative he or she shall forthwith notify
16the Fund, by personal service or registered mail, of such fact
17and of the name of the court where such suit is brought, filing
18proof of such notice in such action. The Fund may, at any time
19thereafter, intervene in such action upon its own motion.
20Therefore, no release or settlement of claim for damages by
21reason of injury to the disabled employee, and no satisfaction
22of judgment in such proceedings, shall be valid without the
23written consent of the Board of Trustees authorized by this
24Code to administer the Fund created under this Article, except
25that such consent shall be provided expeditiously following a
26settlement or judgment.

 

 

09900SB2437ham004- 28 -LRB099 17093 RPS 51789 a

1    In the event the disabled employee or his or her personal
2representative has not instituted an action against a third
3party at a time when only 3 months remain before such action
4would thereafter be barred by law, the Fund may, in its own
5name or in the name of the personal representative, commence a
6proceeding against such third party seeking the recovery of all
7damages on account of injuries caused to the employee. From any
8amount so recovered, the Fund shall pay to the personal
9representative of such disabled employee all sums collected
10from such third party by judgment or otherwise in excess of the
11amount of disability or death benefits paid or to be paid under
12this Article to the disabled employee or his or her personal
13representative, and such costs, attorney's fees, and
14reasonable expenses as may be incurred by the Fund in making
15the collection or in enforcing such liability. The Fund's
16recovery shall be satisfied only from that portion of a
17recovery that has been, or can be, allocated or attributed to
18past and future lost salary, which recovery is by judgment or
19settlement. The Fund's recovery shall not be satisfied from
20that portion of the recovery that has been or can be allocated
21or attributed to medical care and treatment, pain and
22suffering, loss of consortium, and attorney's fees and costs.
23    Additionally, with respect to any right of subrogation
24asserted by the Fund under this Section, the Fund, in the
25exercise of discretion, may determine what amount from past or
26future salary shall be appropriate under the circumstances to

 

 

09900SB2437ham004- 29 -LRB099 17093 RPS 51789 a

1collect from the recovery obtained on behalf of the disabled
2employee.
3    This Section applies only to persons who first become
4members or participants under this Article on or after the
5effective date of this amendatory Act of 99th General Assembly.
 
6    (40 ILCS 5/8-243.2)  (from Ch. 108 1/2, par. 8-243.2)
7    Sec. 8-243.2. Alternative annuity for city officers.
8    (a) For the purposes of this Section and Sections 8-243.1
9and 8-243.3, "city officer" means the city clerk, the city
10treasurer, or an alderman of the city elected by vote of the
11people, while serving in that capacity or as provided in
12subsection (f), who has elected to participate in the Fund.
13    (b) Any elected city officer, while serving in that
14capacity or as provided in subsection (f), may elect to
15establish alternative credits for an alternative annuity by
16electing in writing to make additional optional contributions
17in accordance with this Section and the procedures established
18by the board. Such elected city officer may discontinue making
19the additional optional contributions by notifying the Fund in
20writing in accordance with this Section and procedures
21established by the board.
22    Additional optional contributions for the alternative
23annuity shall be as follows:
24        (1) For service after the option is elected, an
25    additional contribution of 3% of salary shall be

 

 

09900SB2437ham004- 30 -LRB099 17093 RPS 51789 a

1    contributed to the Fund on the same basis and under the
2    same conditions as contributions required under Sections
3    8-174 and 8-182.
4        (2) For service before the option is elected, an
5    additional contribution of 3% of the salary for the
6    applicable period of service, plus interest at the
7    effective rate from the date of service to the date of
8    payment. All payments for past service must be paid in full
9    before credit is given. No additional optional
10    contributions may be made for any period of service for
11    which credit has been previously forfeited by acceptance of
12    a refund, unless the refund is repaid in full with interest
13    at the effective rate from the date of refund to the date
14    of repayment.
15    (c) In lieu of the retirement annuity otherwise payable
16under this Article, any city officer elected by vote of the
17people who (1) has elected to participate in the Fund and make
18additional optional contributions in accordance with this
19Section, and (2) has attained age 55 with at least 10 years of
20service credit, or has attained age 60 with at least 8 years of
21service credit, may elect to have his retirement annuity
22computed as follows: 3% of the participant's salary at the time
23of termination of service for each of the first 8 years of
24service credit, plus 4% of such salary for each of the next 4
25years of service credit, plus 5% of such salary for each year
26of service credit in excess of 12 years, subject to a maximum

 

 

09900SB2437ham004- 31 -LRB099 17093 RPS 51789 a

1of 80% of such salary. To the extent such elected city officer
2has made additional optional contributions with respect to only
3a portion of his years of service credit, his retirement
4annuity will first be determined in accordance with this
5Section to the extent such additional optional contributions
6were made, and then in accordance with the remaining Sections
7of this Article to the extent of years of service credit with
8respect to which additional optional contributions were not
9made.
10    (d) In lieu of the disability benefits otherwise payable
11under this Article, any city officer elected by vote of the
12people who (1) has elected to participate in the Fund, and (2)
13has become permanently disabled and as a consequence is unable
14to perform the duties of his office, and (3) was making
15optional contributions in accordance with this Section at the
16time the disability was incurred, may elect to receive a
17disability annuity calculated in accordance with the formula in
18subsection (c). For the purposes of this subsection, such
19elected city officer shall be considered permanently disabled
20only if: (i) disability occurs while in service as an elected
21city officer and is of such a nature as to prevent him from
22reasonably performing the duties of his office at the time; and
23(ii) the board has received a written certification by at least
242 licensed physicians appointed by it stating that such officer
25is disabled and that the disability is likely to be permanent.
26    (e) Refunds of additional optional contributions shall be

 

 

09900SB2437ham004- 32 -LRB099 17093 RPS 51789 a

1made on the same basis and under the same conditions as
2provided under Sections 8-168, 8-170 and 8-171. Interest shall
3be credited at the effective rate on the same basis and under
4the same conditions as for other contributions. Optional
5contributions shall be accounted for in a separate Elected City
6Officer Optional Contribution Reserve. Optional contributions
7under this Section shall be included in the amount of employee
8contributions used to compute the tax levy under Section 8-173.
9    (f) The effective date of this plan of optional alternative
10benefits and contributions shall be July 1, 1990, or the date
11upon which approval is received from the U.S. Internal Revenue
12Service, whichever is later.
13    The plan of optional alternative benefits and
14contributions shall not be available to any former city officer
15or employee receiving an annuity from the Fund on the effective
16date of the plan, unless he re-enters service as an elected
17city officer and renders at least 3 years of additional service
18after the date of re-entry. However, a person who holds office
19as a city officer on June 1, 1995 may elect to participate in
20the plan, to transfer credits into the Fund from other Articles
21of this Code, and to make the contributions required for prior
22service, until 30 days after the effective date of this
23amendatory Act of the 92nd General Assembly, notwithstanding
24the ending of his term of office prior to that effective date;
25in the event that the person is already receiving an annuity
26from this Fund or any other Article of this Code at the time of

 

 

09900SB2437ham004- 33 -LRB099 17093 RPS 51789 a

1making this election, the annuity shall be recalculated to
2include any increase resulting from participation in the plan,
3with such increase taking effect on the effective date of the
4election.
5    (g) Notwithstanding any other provision in this Section or
6in this Code to the contrary, any person who first becomes a
7city officer, as defined in this Section, on or after the
8effective date of this amendatory Act of the 99th General
9Assembly, shall not be eligible for the alternative annuity or
10alternative disability benefits as provided in subsections
11(a), (b), (c), and (d) of this Section or for the alternative
12survivor's benefits as provided in Section 8-243.3. Such person
13shall not be eligible, or be required, to make any additional
14contributions beyond those required of other participants
15under Sections 8-137, 8-174, and 8-182. The retirement annuity,
16disability benefits, and survivor's benefits for a person who
17first becomes a city officer on or after the effective date of
18this amendatory Act of the 99th General Assembly shall be
19determined pursuant to the provisions otherwise provided in
20this Article.
21(Source: P.A. 92-599, eff. 6-28-02.)
 
22    (40 ILCS 5/8-244)  (from Ch. 108 1/2, par. 8-244)
23    Sec. 8-244. Annuities, etc., exempt.
24    (a) All annuities, refunds, pensions, and disability
25benefits granted under this Article, shall be exempt from

 

 

09900SB2437ham004- 34 -LRB099 17093 RPS 51789 a

1attachment or garnishment process and shall not be seized,
2taken, subjected to, detained, or levied upon by virtue of any
3judgment, or any process or proceeding whatsoever issued out of
4or by any court in this State, for the payment and satisfaction
5in whole or in part of any debt, damage, claim, demand, or
6judgment against any annuitant, pensioner, participant, refund
7applicant, or other beneficiary hereunder.
8    (b) No annuitant, pensioner, refund applicant, or other
9beneficiary shall have any right to transfer or assign his
10annuity, refund, or disability benefit or any part thereof by
11way of mortgage or otherwise, except that:
12        (1) an annuitant or pensioner who elects or has elected
13    to participate in a non-profit group hospital care plan or
14    group medical surgical plan may with the approval of the
15    board and in conformity with its regulations authorize the
16    board to withhold from the pension or annuity the current
17    premium for such coverage and pay such premium to the
18    organization underwriting such plan;
19        (2) in the case of refunds, a participant may pledge by
20    assignment, power of attorney, or otherwise, as security
21    for a loan from a legally operating credit union making
22    loans only to participants in certain public employee
23    pension funds described in the Illinois Pension Code, all
24    or part of any refund which may become payable to him in
25    the event of his separation from service; and
26        (3) the board, in its discretion, may pay to the wife

 

 

09900SB2437ham004- 35 -LRB099 17093 RPS 51789 a

1    of any annuitant, pensioner, refund applicant, or
2    disability beneficiary, such an amount out of her husband's
3    annuity pension, refund, or disability benefit as any court
4    of competent jurisdiction may order, or such an amount as
5    the board may consider necessary for the support of his
6    wife or children, or both in the event of his disappearance
7    or unexplained absence or of his failure to support such
8    wife or children.
9    (c) The board may retain out of any future annuity,
10pension, refund or disability benefit payments, such amount, or
11amounts, as it may require for the repayment of any moneys paid
12to any annuitant, pensioner, refund applicant, or disability
13beneficiary through misrepresentation, fraud or error. Any
14such action of the board shall relieve and release the board
15and the fund from any liability for any moneys so withheld.
16    (d) Whenever an annuity or disability benefit is payable to
17a minor or to a person certified by a medical doctor to be
18under legal disability, the board, in its discretion and when
19it is in the best interest of the person concerned, may waive
20guardianship proceedings and pay the annuity or benefit to the
21person providing or caring for the minor or person under legal
22disability.
23    In the event that a person certified by a medical doctor to
24be under legal disability (i) has no spouse, blood relative, or
25other person providing or caring for him or her, (ii) has no
26guardian of his or her estate, and (iii) is confined to a

 

 

09900SB2437ham004- 36 -LRB099 17093 RPS 51789 a

1Medicare approved, State certified nursing home or to a
2publicly owned and operated nursing home, hospital, or mental
3institution, the Board may pay any benefit due that person to
4the nursing home, hospital, or mental institution, to be used
5for the sole benefit of the person under legal disability.
6    Payment in accordance with this subsection to a person,
7nursing home, hospital, or mental institution for the benefit
8of a minor or person under legal disability shall be an
9absolute discharge of the Fund's liability with respect to the
10amount so paid. Any person, nursing home, hospital, or mental
11institution accepting payment under this subsection shall
12notify the Fund of the death or any other relevant change in
13the status of the minor or person under legal disability.
14(Source: P.A. 91-887, eff. 7-6-00.)
 
15    (40 ILCS 5/8-244.1)  (from Ch. 108 1/2, par. 8-244.1)
16    Sec. 8-244.1. Payment of annuity other than direct.
17    (a) The board, at the written direction and request of any
18annuitant, may, solely as an accommodation to such annuitant,
19pay the annuity due him to a bank, savings and loan association
20or any other financial institution insured by an agency of the
21federal government, for deposit to his account, or to a bank or
22trust company for deposit in a trust established by him for his
23benefit with such bank, savings and loan association or trust
24company, and such annuitant may withdraw such direction at any
25time. The board may also, in the case of any disability

 

 

09900SB2437ham004- 37 -LRB099 17093 RPS 51789 a

1beneficiary or annuitant for whom no estate guardian has been
2appointed and who is confined in a publicly owned and operated
3mental institution, pay such disability benefit or annuity due
4such person to the superintendent or other head of such
5institution or hospital for deposit to such person's trust fund
6account maintained for him by such institution or hospital, if
7by law such trust fund accounts are authorized or recognized.
8    (b) An annuitant formerly employed by the City of Chicago
9may authorize the withholding of a portion of his or her
10annuity for payment of dues to the labor organization which
11formerly represented the annuitant when the annuitant was an
12active employee; however, no withholding shall be required
13under this subsection for payment to one labor organization
14unless a minimum of 25 annuitants authorize such withholding.
15The Board shall prescribe a form for the authorization of
16withholding of dues, release of name, social security number
17and address and shall provide such forms to employees,
18annuitants and labor organizations upon request. Amounts
19withheld by the Board under this subsection shall be promptly
20paid over to the designated organizations, indicating the
21names, social security numbers and addresses of annuitants on
22whose behalf dues were withheld.
23    At the request and at the expense of the labor organization
24that formerly represented the annuitant, the City of Chicago
25shall coordinate mailings no more than twice in any
26twelve-month period to such annuitants and the Board shall

 

 

09900SB2437ham004- 38 -LRB099 17093 RPS 51789 a

1supply current annuitant addresses to the City of Chicago upon
2request. These mailings shall be limited to informing the
3annuitants of their rights under this subsection (b), the form
4authorizing the withholding of dues from their annuity and
5information supplied by the labor organization pertinent to the
6decision of whether to exercise the rights of this subsection.
7To meet this obligation, the City of Chicago shall, upon
8request, create and update records of all retirees for each
9labor organization as far back in time as records permit,
10including their names, addresses, phone numbers and social
11security numbers.
12(Source: P.A. 90-766, eff. 8-14-98.)
 
13    (40 ILCS 5/8-251)  (from Ch. 108 1/2, par. 8-251)
14    Sec. 8-251. Felony conviction.
15    None of the benefits provided for in this Article shall be
16paid to any person who is convicted of any felony relating to
17or arising out of or in connection with his service as a
18municipal employee.
19    This section shall not operate to impair any contract or
20vested right heretofore acquired under any law or laws
21continued in this Article, nor to preclude the right to a
22refund.
23    Any refund required under this Article shall be calculated
24based on that person's contributions to the Fund, less the
25amount of any annuity benefit previously received by the person

 

 

09900SB2437ham004- 39 -LRB099 17093 RPS 51789 a

1or his or her beneficiaries. The changes made to this Section
2by this amendatory Act of the 99th General Assembly apply only
3to persons who first become participants under this Article on
4or after the effective date of this amendatory Act of the 99th
5General Assembly.
6    All future entrants entering service subsequent to July 11,
71955 shall be deemed to have consented to the provisions of
8this section as a condition of coverage.
9(Source: Laws 1963, p. 161.)
 
10    (40 ILCS 5/11-125.9 new)
11    Sec. 11-125.9 Action by Fund against third party;
12subrogation. In those cases where the injury or death for which
13a disability or death benefit is payable under this Article was
14caused under circumstances creating a legal liability on the
15part of some person or entity (hereinafter "third party") to
16pay damages to the employee, legal proceedings may be taken
17against such third party to recover damages notwithstanding the
18Fund's payment of or liability to pay disability or death
19benefits under this Article. In such case, however, if the
20action against such third party is brought by the injured
21employee or his or her personal representative and judgment is
22obtained and paid, or settlement is made with such third party,
23either with or without suit, from the amount received by such
24employee or personal representative, then there shall be paid
25to the Fund the amount of money representing the death or

 

 

09900SB2437ham004- 40 -LRB099 17093 RPS 51789 a

1disability benefits paid or to be paid to the disabled employee
2pursuant to the provisions of this Article. In all
3circumstances where the action against a third party is brought
4by the disabled employee or his or her personal representative,
5the Fund shall have a claim or lien upon any recovery, by
6judgment or settlement, out of which the disabled employee or
7his or her personal representative might be compensated from
8such third party. The Fund may satisfy or enforce any such
9claim or lien only from that portion of a recovery that has
10been, or can be, allocated or attributed to past and future
11lost salary, which recovery is by judgment or settlement. The
12Fund's claim or lien shall not be satisfied or enforced from
13that portion of a recovery that has been, or can be, allocated
14or attributed to medical care and treatment, pain and
15suffering, loss of consortium, and attorney's fees and costs.
16Where action is brought by the disabled employee or his or her
17personal representative he or she shall forthwith notify the
18Fund, by personal service or registered mail, of such fact and
19of the name of the court where such suit is brought, filing
20proof of such notice in such action. The Fund may, at any time
21thereafter, intervene in such action upon its own motion.
22Therefore, no release or settlement of claim for damages by
23reason of injury to the disabled employee, and no satisfaction
24of judgment in such proceedings, shall be valid without the
25written consent of the Board of Trustees authorized by this
26Code to administer the Fund created under this Article, except

 

 

09900SB2437ham004- 41 -LRB099 17093 RPS 51789 a

1that such consent shall be provided expeditiously following a
2settlement or judgment.
3    In the event the disabled employee or his or her personal
4representative has not instituted an action against a third
5party at a time when only 3 months remain before such action
6would thereafter be barred by law, the Fund may, in its own
7name or in the name of the personal representative, commence a
8proceeding against such third party seeking the recovery of all
9damages on account of injuries caused to the employee. From any
10amount so recovered, the Fund shall pay to the personal
11representative of such disabled employee all sums collected
12from such third party by judgment or otherwise in excess of the
13amount of disability or death benefits paid or to be paid under
14this Article to the disabled employee or his or her personal
15representative, and such costs, attorney's fees, and
16reasonable expenses as may be incurred by the Fund in making
17the collection or in enforcing such liability. The Fund's
18recovery shall be satisfied only from that portion of a
19recovery that has been, or can be, allocated or attributed to
20past and future lost salary, which recovery is by judgment or
21settlement. The Fund's recovery shall not be satisfied from
22that portion of the recovery that has been or can be allocated
23or attributed to medical care and treatment, pain and
24suffering, loss of consortium, and attorney's fees and costs.
25Additionally, with respect to any right of subrogation asserted
26by the Fund under this Section, the Fund, in the exercise of

 

 

09900SB2437ham004- 42 -LRB099 17093 RPS 51789 a

1discretion, may determine what amount from past or future
2salary shall be appropriate under the circumstances to collect
3from the recovery obtained on behalf of the disabled employee.
4    This Section applies only to persons who first become
5members or participants under this Article on or after the
6effective date of this amendatory Act of 99th General Assembly.
 
7    (40 ILCS 5/11-169)  (from Ch. 108 1/2, par. 11-169)
8    (Text of Section WITHOUT the changes made by P.A. 98-641,
9which has been held unconstitutional)
10    Sec. 11-169. Financing; tax levy.
11    (a) Except as provided in subsection (f) of this Section,
12the city council of the city shall levy a tax annually upon all
13taxable property in the city at the rate that will produce a
14sum which, when added to the amounts deducted from the salaries
15of the employees or otherwise contributed by them and the
16amounts deposited under subsection (f), will be sufficient for
17the requirements of this Article. For the years prior to the
18year 1950 the tax rate shall be as provided for under "The 1935
19Act". Beginning with the year 1950 to and including the year
201969 such tax shall be not more than .036% annually of the
21value, as equalized or assessed by the Department of Revenue,
22of all taxable property within such city. Beginning with the
23year 1970 and each year thereafter through levy year 2016, the
24city shall levy a tax annually at a rate on the dollar of the
25value, as equalized or assessed by the Department of Revenue of

 

 

09900SB2437ham004- 43 -LRB099 17093 RPS 51789 a

1all taxable property within such city that will produce, when
2extended, not to exceed an amount equal to the total amount of
3contributions by the employees to the fund made in the calendar
4year 2 years prior to the year for which the annual applicable
5tax is levied, multiplied by 1.1 for the years 1970, 1971 and
61972; 1.145 for the year 1973; 1.19 for the year 1974; 1.235
7for the year 1975; 1.280 for the year 1976; 1.325 for the year
81977; 1.370 for the years 1978 through 1998; and 1.000 for the
9year 1999 and for each year thereafter through levy year 2016.
10Beginning in levy year 2017, and in each year thereafter, the
11levy shall not exceed the amount of the city's total required
12contribution to the Fund for the next payment year, as
13determined under subsection (a-5). For the purposes of this
14Section, the payment year is the year immediately following the
15levy year.
16    The tax shall be levied and collected in like manner with
17the general taxes of the city, and shall be exclusive of and in
18addition to the amount of tax the city is now or may hereafter
19be authorized to levy for general purposes under any laws which
20may limit the amount of tax which the city may levy for general
21purposes. The county clerk of the county in which the city is
22located, in reducing tax levies under the provisions of any Act
23concerning the levy and extension of taxes, shall not consider
24the tax herein provided for as a part of the general tax levy
25for city purposes, and shall not include the same within any
26limitation of the per cent of the assessed valuation upon which

 

 

09900SB2437ham004- 44 -LRB099 17093 RPS 51789 a

1taxes are required to be extended for such city.
2    Revenues derived from such tax shall be paid to the city
3treasurer of the city as collected and held by the city
4treasurer him for the benefit of the fund.
5    If the payments on account of taxes are insufficient during
6any year to meet the requirements of this Article, the city may
7issue tax anticipation warrants against the current tax levy.
8    The city may continue to use other lawfully available funds
9in lieu of all or part of the levy, as provided under
10subsection (f) of this Section.
11    (a-5) (1) Beginning in payment year 2018, the city's
12required annual contribution to the Fund for payment years 2018
13through 2022 shall be: for 2018, $36,000,000; for 2019,
14$48,000,000; for 2020, $60,000,000; for 2021, $72,000,000; and
15for 2022, $84,000,000.
16    (2) For payment years 2023 through 2058, the city's
17required annual contribution to the Fund shall be the amount
18determined by the Fund to be equal to the sum of (i) the city's
19portion of projected normal cost for that fiscal year, plus
20(ii) an amount determined on a level percentage of applicable
21employee payroll basis that is sufficient to bring the total
22actuarial assets of the Fund up to 90% of the total actuarial
23liabilities of the Fund by the end of 2058.
24    (3) For payment years after 2058, the city's required
25annual contribution to the Fund shall be equal to the amount,
26if any, needed to bring the total actuarial assets of the Fund

 

 

09900SB2437ham004- 45 -LRB099 17093 RPS 51789 a

1up to 90% of the total actuarial liabilities of the Fund as of
2the end of the year. In making the determinations under
3paragraphs (2) and (3) of this subsection, the actuarial
4calculations shall be determined under the entry age normal
5actuarial cost method, and any actuarial gains or losses from
6investment return incurred in a fiscal year shall be recognized
7in equal annual amounts over the 5-year period following the
8fiscal year.
9    To the extent that the city's contribution for any of the
10payment years referenced in this subsection is made with
11property taxes, those property taxes shall be levied,
12collected, and paid to the Fund in a like manner with the
13general taxes of the city.
14    (a-10) If the city fails to transmit to the Fund
15contributions required of it under this Article by December 31
16of the year in which such contributions are due, the Fund may,
17after giving notice to the city, certify to the State
18Comptroller the amounts of the delinquent payments, and the
19Comptroller must, beginning in payment year 2018, deduct and
20deposit into the Fund the certified amounts or a portion of
21those amounts from the following proportions of grants of State
22funds to the city:
23        (1) in payment year 2018, one-third of the total amount
24    of any grants of State funds to the city;
25        (2) in payment year 2019, two-thirds of the total
26    amount of any grants of State funds to the city; and

 

 

09900SB2437ham004- 46 -LRB099 17093 RPS 51789 a

1        (3) in payment year 2020 and each payment year
2    thereafter, the total amount of any grants of State funds
3    to the city.
4    The State Comptroller may not deduct from any grants of
5State funds to the city more than the amount of delinquent
6payments certified to the State Comptroller by the Fund.
7    (b) On or before July 1, 2017, and each July 1 thereafter
8January 10, annually, the board shall certify to notify the
9city council the annual amounts required under of the
10requirement of this Article, for which that the tax herein
11provided shall be levied for the following that current year.
12The board shall compute the amounts necessary for the purposes
13of this fund to be credited to the reserves established and
14maintained as herein provided, and shall make an annual
15determination of the amount of the required city contributions;
16and certify the results thereof to the city council.
17    (c) In respect to employees of the city who are transferred
18to the employment of a park district by virtue of "Exchange of
19Functions Act of 1957" the corporate authorities of the park
20district shall annually levy a tax upon all the taxable
21property in the park district at such rate per cent of the
22value of such property, as equalized or assessed by the
23Department of Revenue, as shall be sufficient, when added to
24the amounts deducted from their salaries and otherwise
25contributed by them, to provide the benefits to which they and
26their dependents and beneficiaries are entitled under this

 

 

09900SB2437ham004- 47 -LRB099 17093 RPS 51789 a

1Article. The city shall not levy a tax hereunder in respect to
2such employees.
3    The tax so levied by the park district shall be in addition
4to and exclusive of all other taxes authorized to be levied by
5the park district for corporate, annuity fund, or other
6purposes. The county clerk of the county in which the park
7district is located, in reducing any tax levied under the
8provisions of any Act concerning the levy and extension of
9taxes shall not consider such tax as part of the general tax
10levy for park purposes, and shall not include the same in any
11limitation of the per cent of the assessed valuation upon which
12taxes are required to be extended for the park district. The
13proceeds of the tax levied by the park district, upon receipt
14by the district, shall be immediately paid over to the city
15treasurer of the city for the uses and purposes of the fund.
16    The various sums to be contributed by the city and
17allocated for the purposes of this Article, and any interest to
18be contributed by the city, shall be taken from the revenue
19derived from the taxes authorized in this Section, and no money
20of such city derived from any source other than the levy and
21collection of those taxes or the sale of tax anticipation
22warrants in accordance with the provisions of this Article
23shall be used to provide revenue for this Article, except as
24expressly provided in this Section.
25    If it is not possible for the city to make contributions
26for age and service annuity and widow's annuity concurrently

 

 

09900SB2437ham004- 48 -LRB099 17093 RPS 51789 a

1with the employee's contributions made for such purposes, such
2city shall make such contributions as soon as possible and
3practicable thereafter with interest thereon at the effective
4rate to the time they shall be made.
5    (d) With respect to employees whose wages are funded as
6participants under the Comprehensive Employment and Training
7Act of 1973, as amended (P.L. 93-203, 87 Stat. 839, P.L.
893-567, 88 Stat. 1845), hereinafter referred to as CETA,
9subsequent to October 1, 1978, and in instances where the board
10has elected to establish a manpower program reserve, the board
11shall compute the amounts necessary to be credited to the
12manpower program reserves established and maintained as herein
13provided, and shall make a periodic determination of the amount
14of required contributions from the City to the reserve to be
15reimbursed by the federal government in accordance with rules
16and regulations established by the Secretary of the United
17States Department of Labor or his designee, and certify the
18results thereof to the City Council. Any such amounts shall
19become a credit to the City and will be used to reduce the
20amount which the City would otherwise contribute during
21succeeding years for all employees.
22    (e) In lieu of establishing a manpower program reserve with
23respect to employees whose wages are funded as participants
24under the Comprehensive Employment and Training Act of 1973, as
25authorized by subsection (d), the board may elect to establish
26a special municipality contribution rate for all such

 

 

09900SB2437ham004- 49 -LRB099 17093 RPS 51789 a

1employees. If this option is elected, the City shall contribute
2to the Fund from federal funds provided under the Comprehensive
3Employment and Training Act program at the special rate so
4established and such contributions shall become a credit to the
5City and be used to reduce the amount which the City would
6otherwise contribute during succeeding years for all
7employees.
8    (f) In lieu of levying all or a portion of the tax required
9under this Section in any year, the city may deposit with the
10city treasurer no later than March 1 of that year for the
11benefit of the fund, to be held in accordance with this
12Article, an amount that, together with the taxes levied under
13this Section for that year, is not less than the amount of the
14city contributions for that year as certified by the board to
15the city council. The deposit may be derived from any source
16legally available for that purpose, including, but not limited
17to, the proceeds of city borrowings. The making of a deposit
18shall satisfy fully the requirements of this Section for that
19year to the extent of the amounts so deposited. Amounts
20deposited under this subsection may be used by the fund for any
21of the purposes for which the proceeds of the tax levied by the
22city under this Section may be used, including the payment of
23any amount that is otherwise required by this Article to be
24paid from the proceeds of that tax.
25(Source: P.A. 90-31, eff. 6-27-97; 90-766, eff. 8-14-98.)
 

 

 

09900SB2437ham004- 50 -LRB099 17093 RPS 51789 a

1    (40 ILCS 5/11-170)  (from Ch. 108 1/2, par. 11-170)
2    (Text of Section WITHOUT the changes made by P.A. 98-641,
3which has been held unconstitutional)
4    Sec. 11-170. Contributions for age and service annuities
5for present employees, future entrants and re-entrants.
6    (a) Beginning on the effective date and prior to July 1,
71947, 3 1/4%; and beginning on July 1, 1947 and prior to July
81, 1953, 5%; and beginning July 1, 1953 and prior to January 1,
91972, 6%; and beginning January 1, 1972, 6 1/2% of each payment
10of the salary of each present employee, future entrant and
11re-entrant, except as provided in subsection (a-5) and (a-10),
12shall be contributed to the fund as a deduction from salary for
13age and service annuity.
14    (a-5) Except as provided in subsection (a-10), for an
15employee who on or after January 1, 2011 and prior to this
16amendatory Act of the 99th General Assembly first became a
17member or participant under this Article and made the election
18under item (i) of subsection (d-10) of Section 1-160: prior to
19this amendatory Act of the 99th General Assembly, 6.5%; and
20beginning on the effective date of this amendatory Act of the
2199th General Assembly and prior to January 1, 2018, 7.5%; and
22beginning January 1, 2018, and prior to January 1, 2019, 8.5%;
23and, beginning January 1, 2019 and thereafter, 9.5% of each
24payment of salary shall be contributed to the fund as a
25deduction from salary for age and service annuity. Beginning
26with the first pay period on or after the date when the funded

 

 

09900SB2437ham004- 51 -LRB099 17093 RPS 51789 a

1ratio of the Fund is first determined to have reached the 90%
2funding goal, and each pay period thereafter for as long as the
3Fund maintains a funding ratio of 75% or more, employee
4contributions for age and service annuity for those employees
5who made the election under item (i) of subsection (d-10) of
6Section 1-160 shall be 5.5% of each payment of salary. If the
7funding ratio falls below 75%, then employee contributions for
8age and service annuity for those employees who made the
9election under item (i) of subsection (d-10) shall revert to
109.5% until such time as the Fund once again is determined to
11have reached a funding ratio of 75%, at which time the 5.5% of
12salary employee contribution for age and service annuity shall
13resume. An employee who made the election under item (ii) of
14subsection (d-10) of Section 1-160 shall continue to have the
15contributions for age and service annuities determined under
16subsection (a) of this Section.
17    (a-10) For each employee who on or after the effective date
18of this amendatory Act of the 99th General Assembly first
19becomes a member or participant under this Article, 9.5% of
20each payment of his or her salary shall be contributed to the
21fund as a deduction from salary for age and service annuity.
22Beginning with the first pay period on or after the date when
23the funded ratio of the Fund is first determined to have
24reached the 90% funding goal, and each pay period thereafter
25for as long as the Fund maintains a funding ratio of 75% or
26more, employee contributions for age and service annuity for

 

 

09900SB2437ham004- 52 -LRB099 17093 RPS 51789 a

1each employee subject to this subsection (a-10) shall be 5.5%
2of each payment of salary. If the funding ratio falls below
375%, then employee contributions for age and service annuity
4for each employee subject to this subsection (a-10) shall
5revert to 9.5% until such time as the Fund once again is
6determined to have reached a funding ratio of 75%, at which
7time the 5.5% of salary contribution for age and service
8annuity shall resume.
9    Such deductions beginning on the effective date and prior
10to June 30, 1947, inclusive shall be made for a future entrant
11while he is in service until he attains age 65, and for a
12present employee while he is in service until the amount so
13deducted from his salary with interest at the rate of 4% per
14annum shall be equal to the sum which would have accumulated to
15his credit from sums deducted from his salary if deductions at
16the rate herein stated had been made during his entire service
17until he attained age 65 with interest at 4% per annum for the
18period subsequent to his attainment of age 65. Such deductions
19beginning July 1, 1947 shall be made and continued for
20employees while in the service.
21    (b) (Blank). Concurrently with each employee contribution,
22the city shall contribute beginning on the effective date and
23prior to July 1, 1947, 5 3/4%; and beginning July 1, 1947 and
24prior to July 1, 1953, 7%; and beginning July 1, 1953, 6% of
25each payment of such salary until the employee attains age 65.
26    (c) Each employee contribution made prior to the date age

 

 

09900SB2437ham004- 53 -LRB099 17093 RPS 51789 a

1and service annuity for an employee is fixed and each
2corresponding city contribution shall be allocated to the
3account of and credited to the employee for whose benefit it is
4made.
5    (d) Notwithstanding Section 1-103.1, the changes to this
6Section made by this amendatory Act of the 99th General
7Assembly apply regardless of whether the employee was in active
8service on or after the effective date of this amendatory Act.
9(Source: P.A. 81-1536.)
 
10    (40 ILCS 5/11-197.7 new)
11    Sec. 11-197.7. Payment of annuity other than direct. The
12board, at the written direction and request of any annuitant,
13may, solely as an accommodation to such annuitant, pay the
14annuity due him or her to a bank, savings and loan association,
15or any other financial institution insured by an agency of the
16federal government, for deposit to his or her account, or to a
17bank or trust company for deposit in a trust established by him
18or her for his benefit with such bank, savings and loan
19association, or trust company, and such annuitant may withdraw
20such direction at any time. The board may also, in the case of
21any disability beneficiary or annuitant for whom no estate
22guardian has been appointed and who is confined in a publicly
23owned and operated mental institution, pay such disability
24benefit or annuity due such person to the superintendent or
25other head of such institution or hospital for deposit to such

 

 

09900SB2437ham004- 54 -LRB099 17093 RPS 51789 a

1person's trust fund account maintained for him or her by such
2institution or hospital, if by law such trust fund accounts are
3authorized or recognized.
 
4    (40 ILCS 5/11-223.1)  (from Ch. 108 1/2, par. 11-223.1)
5    Sec. 11-223.1. Assignment for health, hospital and medical
6insurance.
7    The board may provide, by regulation, that any annuitant or
8pensioner, may assign his annuity or disability benefit, or any
9part thereof, for the purpose of premium payment for a
10membership for the annuitant, and his or her spouse and
11children, in a non-profit group hospital care plan or group
12medical surgical plan, provided, however, that the board may,
13in its discretion, terminate the right of assignment. Any such
14hospital or medical insurance plan may include provision for
15the beneficiaries thereof who rely on treatment by spiritual
16means alone through prayer for healing in accordance with the
17tenets and practice of a well recognized religious
18denomination.
19    Upon the adoption of a regulation permitting such
20assignment, the board shall establish and administer a plan for
21the maintenance of the insurance plan membership by the
22annuitant or pensioner.
23(Source: Laws 1965, p. 2290.)
 
24    (40 ILCS 5/11-230)  (from Ch. 108 1/2, par. 11-230)

 

 

09900SB2437ham004- 55 -LRB099 17093 RPS 51789 a

1    Sec. 11-230. Felony conviction.
2    None of the benefits provided in this Article shall be paid
3to any person who is convicted of any felony relating to or
4arising out of or in connection with his service as employee.
5    This section shall not operate to impair any contract or
6vested right heretofore acquired under any law or laws
7continued in this Article, nor to preclude the right to a
8refund.
9    Any refund required under this Article shall be calculated
10based on that person's contributions to the Fund, less the
11amount of any annuity benefit previously received by the person
12or his or beneficiaries. The changes made to this Section by
13this amendatory Act of the 99th General Assembly apply only to
14persons who first become members or participants under this
15Article on or after the effective date of this amendatory Act
16of the 99th General Assembly.
17    All future entrants entering service after July 11, 1955,
18shall be deemed to have consented to the provisions of this
19section as a condition of coverage.
20(Source: Laws 1963, p. 161.)
 
21    (40 ILCS 5/8-173.1 rep.)
22    (40 ILCS 5/11-169.1 rep.)
23    Section 10. The Illinois Pension Code is amended by
24repealing Sections 8-173.1 and 11-169.1.
 

 

 

09900SB2437ham004- 56 -LRB099 17093 RPS 51789 a

1    Section 90. The State Mandates Act is amended by adding
2Section 8.40 as follows:
 
3    (30 ILCS 805/8.40 new)
4    Sec. 8.40. 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 99th General Assembly.
 
8    Section 97. Inseverability and severability. The changes
9made by this Act are inseverable, except that the changes made
10to Sections 8-228.5 and 11-125.9 of the Illinois Pension Code
11are severable under Section 1.31 of the Statute on Statutes.
 
12    Section 99. Effective date. This Act takes effect upon
13becoming law.".