State of Illinois
92nd General Assembly
Legislation

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92_SB0779

 
                                              LRB9204328EGfgA

 1        AN ACT in relation to public employee benefits.

 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:

 4        Section  5.   The  Illinois  Pension  Code  is amended by
 5    changing Sections 7-141, 7-142, 7-168, and 7-174 as follows:

 6        (40 ILCS 5/7-141) (from Ch. 108 1/2, par. 7-141)
 7        Sec.   7-141.    Retirement   annuities   -   Conditions.
 8    Retirement annuities shall  be  payable  as  hereinafter  set
 9    forth:
10        (a)  A  participating  employee who, regardless of cause,
11    is  separated  from  the   service   of   all   participating
12    municipalities     and    instrumentalities    thereof    and
13    participating  instrumentalities  shall  be  entitled  to   a
14    retirement annuity provided:
15             1.  He  is  at  least  age  55,  or in the case of a
16        person who is eligible to  have  his  annuity  calculated
17        under Section 7-142.1, he is at least age 50;
18             2.  He  is  (i)  an employee who was employed by any
19        participating     municipality      or      participating
20        instrumentality  which had not elected to exclude persons
21        employed in positions normally requiring  performance  of
22        duty for less than 1000 hours per year or was employed in
23        a position normally requiring performance of duty for 600
24        hours  or  more  per  year  prior to such election by any
25        participating      municipality     or      participating
26        instrumentality  included  in and subject to this Article
27        on or before the effective date of this amendatory Act of
28        1981 which made such election  and  is  not  entitled  to
29        receive  earnings  for  employment in a position normally
30        requiring performance of duty for 600 hours or  more  per
31        year    for    any    participating    municipality   and
 
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 1        instrumentalities     thereof      and      participating
 2        instrumentality;  or  (ii)  an  employee who was employed
 3        only by a  participating  municipality  or  participating
 4        instrumentality,   or   participating  municipalities  or
 5        participating instrumentalities, which  have  elected  to
 6        exclude   persons   in   positions   normally   requiring
 7        performance  of  duty  for  less than 1000 hours per year
 8        after the effective date of such exclusion or  which  are
 9        included  under  and  subject  to  the  Article after the
10        effective date of this amendatory Act of 1981 and  elects
11        to exclude persons in such positions, and is not entitled
12        to receive earnings for employment in a position normally
13        requiring  performance of duty for 1000 hours or more per
14        year   by   such   a   participating   municipality    or
15        participating instrumentality;
16             3.  The   amount   of   his   annuity,   before  the
17        application of paragraph (b) of Section 7-142 is at least
18        $10 per month;
19             4.  If he  first  became  a  participating  employee
20        after  December 31, 1961, he has at least 5 years 8 years
21        of service.  This service requirement shall not apply  to
22        any  participating  employee, regardless of participation
23        date, if the General Assembly terminates the Fund.
24        (b)  Retirement annuities shall be payable:
25             1.  As provided in Section 7-119;
26             2.  Except as provided in item 3,  upon  receipt  by
27        the  fund  of  a written application.  The effective date
28        may be not more than one year prior to the  date  of  the
29        receipt by the fund of the application;
30             3.  Upon  attainment of age 70 1/2 if the member (i)
31        is no longer in service, and (ii) is  otherwise  entitled
32        to an annuity under this Article;
33             4.  To the beneficiary of the deceased annuitant for
34        the unpaid amount accrued to date of death, if any.
 
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 1    (Source: P.A. 91-887, eff. 7-6-00.)

 2        (40 ILCS 5/7-142) (from Ch. 108 1/2, par. 7-142)
 3        Sec. 7-142.  Retirement annuities - Amount.
 4        (a)  The  amount of a retirement annuity shall be the sum
 5    of the following, determined in accordance with the actuarial
 6    tables in effect at the time of the grant of the annuity:
 7             1.  For employees with 5  or  8  or  more  years  of
 8        service,  an annuity computed pursuant to subparagraphs a
 9        or b of this subparagraph 1, whichever is the higher, and
10        for employees with less than 5 years 8 years of  service,
11        the annuity computed pursuant to subparagraph a:
12                  a.  The  monthly  annuity which can be provided
13             from the total accumulated normal, municipality  and
14             prior service credits, as of the attained age of the
15             employee  on  the  date  the annuity begins provided
16             that such annuity shall not exceed 75% of the  final
17             rate of earnings of the employee.
18                  b.  (i)  The  monthly annuity amount determined
19             as follows by multiplying (a) 1 2/3% for  annuitants
20             with  not  more  than 15 years or (b) 1 2/3% for the
21             first 15 years and 2% for each year in excess of  15
22             years  for annuitants with more than 15 years by the
23             number of years plus fractional years, prorated on a
24             basis of months, of creditable service and  multiply
25             the  product thereof by the employee's final rate of
26             earnings.
27                  (ii)  For the sole  purpose  of  computing  the
28             formula (and not for the purposes of the limitations
29             hereinafter  stated)  $125  shall  be considered the
30             final rate of earnings in all cases where the  final
31             rate of earnings is less than such amount.
32                  (iii)  The    monthly   annuity   computed   in
33             accordance  with  this  subparagraph  b,  shall  not
 
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 1             exceed an amount equal to 75% of the final  rate  of
 2             earnings.
 3                  (iv)  For employees who have less than 35 years
 4             of  service, the annuity computed in accordance with
 5             this subparagraph b (as reduced  by  application  of
 6             subparagraph  (iii) above) shall be reduced by 0.25%
 7             thereof  (0.5%  if  service  was  terminated  before
 8             January 1, 1988) for each month or fraction  thereof
 9             (1)  that  the employee's age is less than 60 years,
10             or (2) if the employee has  at  least  30  years  of
11             service  credit,  that the employee's service credit
12             is less than 35 years, whichever  is  less,  on  the
13             date the annuity begins.
14             2.  The annuity which can be provided from the total
15        accumulated  additional credits as of the attained age of
16        the employee on the date the annuity begins.
17        (b)  If  payment  of  an  annuity  begins  prior  to  the
18    earliest age at which the employee will become  eligible  for
19    an  old  age  insurance  benefit  under  the  Federal  Social
20    Security  Act,  he  may  elect that the annuity payments from
21    this fund shall exceed those payable after his attaining such
22    age by an amount, computed as  determined  by  rules  of  the
23    Board,  but  not  in  excess of his estimated Social Security
24    Benefit, determined as of the effective date of the  annuity,
25    provided  that  in  no  case shall the total annuity payments
26    made by this fund exceed in actuarial value the annuity which
27    would have been payable had no such election been made.
28        (c)  The retirement annuity shall be increased each  year
29    by  2%,  not  compounded,  of  the monthly amount of annuity,
30    taking into consideration any adjustment under paragraph  (b)
31    of  this  Section.  This  increase  shall  be  effective each
32    January 1  and  computed  from  the  effective  date  of  the
33    retirement  annuity,  the  first  increase being .167% of the
34    monthly amount times the number of months from the  effective
 
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 1    date  to January 1. Beginning January 1, 1984 and thereafter,
 2    the retirement annuity shall be increased by  3%  each  year,
 3    not  compounded.  This  increase  shall  not be applicable to
 4    annuitants who are not in service on or  after  September  8,
 5    1971.
 6    (Source: P.A. 91-357, eff. 7-29-99.)

 7        (40 ILCS 5/7-168) (from Ch. 108 1/2, par. 7-168)
 8        Sec.  7-168. Separation benefits - Amount.  The amount of
 9    the separation benefit benefits  shall  be  the  sum  of  the
10    employee's   accumulated  normal,  survivor,  and  additional
11    contributions.  Separation benefits  paid  on  or  after  the
12    effective  date  of  this  amendatory Act of the 92nd General
13    Assembly  may  also  include   interest   on   the   refunded
14    contributions,   calculated   at  a  rate  and  in  a  manner
15    determined by the Board.
16    (Source: P.A. 87-740.)

17        (40 ILCS 5/7-174) (from Ch. 108 1/2, par. 7-174)
18        Sec. 7-174.  Board created.
19        (a)  A board of 8 members shall  constitute  a  board  of
20    trustees  authorized  to  carry  out  the  provisions of this
21    Article.  Each trustee shall be a participating employee of a
22    participating municipality or  participating  instrumentality
23    or  an  annuitant of the Fund and no person shall be eligible
24    to become a trustee after January 1, 1979 who does  not  have
25    at least 5 years 8 years of creditable service.
26        (b)  The   board  shall  consist  of  representatives  of
27    various groups as follows:
28             1.  4 trustees shall be a chief  executive  officer,
29        chief  finance  officer,  or  other officer, executive or
30        department  head  of  a  participating  municipality   or
31        participating  instrumentality,  and  each  such  trustee
32        shall be designated as an executive trustee.
 
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 1             2.  3 trustees shall be employees of a participating
 2        municipality  or  participating  instrumentality and each
 3        such trustee shall be designated as an employee trustee.
 4             3.  One trustee shall be an annuitant of  the  Fund,
 5        who shall be  designated the annuitant trustee.
 6        (c)  A  person  elected  as  a trustee shall qualify as a
 7    trustee, after declaration by the board that he has been duly
 8    elected, upon taking and subscribing  to  the  constitutional
 9    oath of office and filing same in the office of the Fund.
10        (d)  The  term of office of each trustee shall begin upon
11    January 1 of the year following  the  year  in  which  he  is
12    elected  and shall continue for a period of 5 years and until
13    a successor has been elected and qualified,  or  until  prior
14    resignation, death, incapacity or disqualification.
15        (e)  Any   elected  trustee  (other  than  the  annuitant
16    trustee) shall be disqualified immediately  upon  termination
17    of  employment  with  all  participating  municipalities  and
18    instrumentalities  thereof or upon any change in status which
19    removes any such trustee  from  all  employments  within  the
20    group   he  represents.    The  annuitant  trustee  shall  be
21    disqualified upon termination of his or her annuity.
22        (f)  The trustees shall fill any vacancy in the board  by
23    appointment,  for  the  period  until  the  next  election of
24    trustees, or, if the remaining term is less than 2 years, for
25    the remainder of the term, and until his successor  has  been
26    elected and qualified.
27        (g)  Trustees shall serve without compensation, but shall
28    be   reimbursed  for  any  reasonable  expenses  incurred  in
29    attending meetings of the board and in performing  duties  on
30    behalf  of  the  Fund  and  for  the  amount  of any earnings
31    withheld  by  any  employing  municipality  or  participating
32    instrumentality because of attendance at any board meeting.
33        (h)  Each trustee other than the annuitant trustee  shall
34    be  entitled  to  one  vote on any and all actions before the
 
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 1    board;  the annuitant trustee is not entitled to vote on  any
 2    matter.   At  least 4 concurring votes shall be necessary for
 3    every decision or action by the board at any of its meetings.
 4    No decision or action shall become effective unless presented
 5    and so approved at a regular or duly called  special  meeting
 6    of the board.
 7    (Source: P.A. 89-136, eff. 7-14-95.)

 8        Section  90.  The State Mandates Act is amended by adding
 9    Section 8.25 as follows:

10        (30 ILCS 805/8.25 new)
11        Sec. 8.25. Exempt mandate.   Notwithstanding  Sections  6
12    and  8 of this Act, no reimbursement by the State is required
13    for  the  implementation  of  any  mandate  created  by  this
14    amendatory Act of the 92nd General Assembly.

15        Section 99. Effective date.  This Act takes  effect  upon
16    becoming law.

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