State of Illinois
92nd General Assembly
Legislation

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92_SB1845

 
                                              LRB9214138EGfgA

 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  13-304,  13-502,  and  13-503  and  adding
 6    Section 13-304.1 as follows:

 7        (40 ILCS 5/13-304) (from Ch. 108 1/2, par. 13-304)
 8        Sec.  13-304.  Optional  plan  of additional benefits and
 9    contributions made through December 31, 2002.
10        (a)  While this plan is in effect, an  eligible  employee
11    may  establish  additional  optional  credit  for  additional
12    benefits   by  electing  in  writing  at  any  time  to  make
13    additional  optional   contributions.    The   employee   may
14    discontinue  making  the additional optional contributions at
15    any time by notifying the Fund in writing.
16        Employees first entering service after June 30, 1997  are
17    not  eligible  to  participate  in the plan established under
18    this Section.
19        (b)  Additional optional contributions for the additional
20    optional benefits shall be as follows:
21             (1)  For service after the  option  is  elected,  an
22        additional   contribution   of  3%  of  salary  shall  be
23        contributed to the Fund on the same basis and  under  the
24        same  conditions  as contributions required under Section
25        13-502.
26             (2)  For service before the option  is  elected,  an
27        additional  contribution  of  3%  of  the  salary for the
28        applicable period of service, plus interest at the annual
29        rate as shall from time to  time  be  determined  by  the
30        Board,  compounded  annually  from the date of service to
31        the date of payment.  All payments for past service  must
 
                            -2-               LRB9214138EGfgA
 1        be paid in full before credit is given.  A person who has
 2        withdrawn   from   service   may   pay   the   additional
 3        contribution  for past service at any time within 30 days
 4        after withdrawal from service, so long as payment is made
 5        in full before  the  retirement  annuity  commences.   No
 6        additional  optional  contributions  may  be made for any
 7        period of service for which credit  has  been  previously
 8        forfeited by acceptance of a refund, unless the refund is
 9        repaid  in  full  with  interest at the rate specified in
10        Section 13-603, from the date of refund to  the  date  of
11        repayment.   Nothing  herein may be construed to allow an
12        additional  optional  contribution  to  be  made  on  the
13        account of a deceased employee.
14        (c)  Additional optional benefit  shall  accrue  for  all
15    periods    of   eligible   service   for   which   additional
16    contributions are paid in full.  The additional benefit shall
17    consist of an additional 1% of average final salary for  each
18    year  of  service  for which optional contributions have been
19    paid, to be added to the  employee's  retirement  annuity  as
20    otherwise  computed  under  this Article.  The calculation of
21    these additional benefits shall be subject to the same  terms
22    and  conditions  as  are  used  in  the  calculation  of  the
23    retirement   annuity  under  this  Article.   The  additional
24    benefit shall be included in the calculation of the automatic
25    annual increase in annuity under Section  13-302(d),  and  in
26    the   calculation   of   surviving   spouse's  annuity  where
27    applicable.  However, no additional benefits will be  granted
28    which  produce  a  total  annuity greater than the applicable
29    maximum established for that type of annuity in this Article.
30    The total additional optional benefit that  may  be  received
31    under this Section is 15% of average final salary.
32        (d)  Refunds  of  additional optional contributions shall
33    be made on the same basis and under the  same  conditions  as
34    provided under Section 13-601.
 
                            -3-               LRB9214138EGfgA
 1        (e)  Optional  contributions  shall be accounted for in a
 2    separate Optional Contribution Reserve.
 3        (f)  The tax levy computed under Section 13-503 shall  be
 4    based  on  employee  contributions  including  the  amount of
 5    optional additional employee contributions.
 6        (g)  Service eligible under this Section may include only
 7    service as an employee as  defined  in  Section  13-204,  and
 8    subject  to  Section  13-401  and 13-402.  No service granted
 9    under Section 13-801 or 13-802 shall be eligible for optional
10    service  credit.   No  optional   service   credit   may   be
11    established  for  any  military  service,  or for any service
12    under any other  Article  of  this  Code.   Optional  service
13    credit  may  be established for any period of disability paid
14    from this Fund, if the  employee  makes  additional  optional
15    contributions for such period of disability.
16        (h)  This  plan  of  optional  benefits and contributions
17    shall not apply to service prior to  withdrawal  rendered  by
18    any   former  employee  who  re-enters  service  unless  such
19    employee renders not  less  than  36  consecutive  months  of
20    additional service after the date of re-entry.
21        (i)  The   effective   date  of  this  optional  plan  of
22    additional benefits and contributions shall be the date  upon
23    which   approval  was  received  from  the  Internal  Revenue
24    Service, July 31, 1987.
25        (j)  This plan of additional benefits  and  contributions
26    shall  expire December 31, 2002.  No additional contributions
27    may be made after that date, and no additional benefits  will
28    accrue after that date.
29        (k)  The  maximum optional benefits for current and prior
30    service for which an employee can  make  contributions  in  a
31    single  year  shall be limited to 15 years of service in 1997
32    and before; 9 years of service in 1998; 6 years of service in
33    1999; and 3 years of service in 2000,  2001,  and  2002.   No
34    person  may establish additional optional benefits under this
 
                            -4-               LRB9214138EGfgA
 1    Section for more than 15 years of service.
 2    (Source: P.A. 90-12, eff. 6-13-97.)

 3        (40 ILCS 5/13-304.1 new)
 4        Sec. 13-304.1.  Optional plan of additional benefits  and
 5    contributions made January 1, 2003 through December 31, 2007.
 6        (a)  While  this  plan  is  in  effect,  an  employee may
 7    establish  optional  additional  credit   toward   additional
 8    benefits  for  eligible  service  by  making  an  irrevocable
 9    written   election   to   make  additional  contributions  as
10    authorized in this Section.  An employee may  begin  to  make
11    additional  contributions  under  this  Section,  via payroll
12    deduction, no earlier  than  the  first  pay  period  of  the
13    calendar  year  in  which  the  employee fulfills the 10-year
14    service  requirement  described  in  subsection   (g).    The
15    additional contributions of 4% of salary shall be paid to the
16    Fund  on  the  same  basis  and  under the same conditions as
17    contributions required under Section 13-502.
18        (b)  For service before an irrevocable option is elected,
19    but within the same calendar year, an additional contribution
20    may be made of 4% of the salary for the applicable period  of
21    service,  plus  interest from the date of service to the date
22    of contribution at a rate equal to the higher of 8% per annum
23    or the actuarial investment return  assumption  used  in  the
24    Fund's  most recent annual actuarial statement.  All payments
25    for past service must be paid within  the  calendar  year  in
26    which  the  service  was earned; except that a person who has
27    withdrawn from service  and  is  eligible  for  a  retirement
28    annuity   under   Section   13-301  may  pay  the  additional
29    contribution for past service within  the  calendar  year  of
30    withdrawal  within the 30 days after withdrawal from service,
31    as long as payment is made  in  full  before  the  retirement
32    annuity  commences  and before December 31, 2007.  Nothing in
33    this Section may be construed to allow an additional optional
 
                            -5-               LRB9214138EGfgA
 1    contribution  to  be  made  on  the  account  of  a  deceased
 2    employee.
 3        (c)  The maximum additional benefit for  current  service
 4    for  which  an  employee  may  make  contributions under this
 5    Section in a single year is limited to one year of service in
 6    each of  2003,  2004,  2005,  2006,  and  2007.    The  total
 7    additional   benefit  that  may  be  accumulated  under  this
 8    Section, including any additional benefit accumulated under a
 9    prior optional benefit plan, is 12% of average  final  salary
10    at retirement.
11        The  additional  benefit  shall accrue for all periods of
12    eligible service for which additional contributions have been
13    paid in full in accordance with this Section, subject to  the
14    applicable limitations on maximum annuity.
15        The  additional benefit shall consist of an additional 1%
16    of average final salary for each year of  service  for  which
17    optional  contributions  have  been  paid, to be added to the
18    employee's retirement annuity  as  otherwise  computed  under
19    this  Article.   The calculation of these additional benefits
20    shall be subject to the same terms and conditions as are used
21    in the calculation  of  the  retirement  annuity  under  this
22    Article.   The  additional  benefit  shall be included in the
23    calculation of the automatic annual increase in annuity under
24    Section  13-302(d)  and  in  the  calculation  of   surviving
25    spouse's  annuity,  where applicable.  However, no additional
26    benefit may be granted which produces a total annuity greater
27    than the applicable maximum  established  for  that  type  of
28    annuity in this Article.
29        (d)  Refunds of additional optional contributions made in
30    accordance  with  the  provisions  and  limitations  of  this
31    Section  shall  be  made on the same basis and under the same
32    conditions as are provided under Section 13-601.  Any  refund
33    of  contributions  that  exceed  the limits specified in this
34    Section shall be made in  accordance  with  established  Fund
 
                            -6-               LRB9214138EGfgA
 1    policy.
 2        (e)  The  additional contributions shall be accounted for
 3    in a separate Optional Contribution Reserve.
 4        (f)  The tax levy computed under Section 13-503 shall  be
 5    based  on  employee  contributions and the amount of optional
 6    additional  employee  contributions,  as  provided  in   that
 7    Section.
 8        (g)  The   service   eligible   for  optional  additional
 9    contributions under this Section is limited to service as  an
10    employee  as  defined  in  Section  13-204,  and  subject  to
11    Sections  13-401  and  13-402, but excluding service credited
12    under subsections 13-401(a)4 and 13-401(d).  Service  granted
13    under  Section  13-801 or 13-802 is not eligible for optional
14    additional  contributions.    Eligible  service  is   further
15    limited to service rendered during or after the calendar year
16    in  which the employee reaches 10 years of service as defined
17    under Section 13-402, exclusive of any credit  under  Article
18    20.
19        Service  eligible  for  optional additional contributions
20    under this Section includes any  period  of  disability  paid
21    from  this  Fund that would have been eligible service if the
22    employee were in active service rather than  disabled.    The
23    additional  contributions for a period of disability shall be
24    calculated as 4% of the salary that the employee  would  have
25    received  if  he or she had been in active service during the
26    applicable period of disability,  plus  interest  at  a  rate
27    equal  to  the  higher  of  8%  per  annum  or  the actuarial
28    investment return assumption used in the Fund's  most  recent
29    annual  actuarial  statement,  compounded  annually, from the
30    date of the service to the date of payment.  The contribution
31    must be paid to the Fund no later than  3  months  after  the
32    employee returns to service from disability, and in any event
33    prior to December 31, 2007.
34        (h)  The minimum period for which an employee may make an
 
                            -7-               LRB9214138EGfgA
 1    irrevocable  election  to make additional contributions shall
 2    be 26 consecutive pay  periods,  unless  the  employee  first
 3    accumulates  the  maximum  optional  credit  as  described in
 4    subsection (c) of this Section.  The maximum period for which
 5    an employee may make  irrevocable  elections  for  additional
 6    contributions  shall be from the date of election through the
 7    last  pay  period  eligible  for  contributions  under   this
 8    Section.
 9        (i)  This  plan  of additional benefits and contributions
10    expires on December 31, 2007.   No  additional  contributions
11    may  be made after that date, and no additional benefits will
12    accrue after that date.

13        (40 ILCS 5/13-502) (from Ch. 108 1/2, par. 13-502)
14        Sec. 13-502.   Employee  contributions;  deductions  from
15    salary.
16        (a)  Retirement annuity and child's annuity.  There shall
17    be  deducted  from  each payment of salary an amount equal to
18    7 1/2% of salary  as  the  employee's  contribution  for  the
19    retirement  annuity, including annual increases therefore and
20    child's annuity.
21        (b)  Surviving spouse's annuity.  There shall be deducted
22    from each payment of salary an  amount  equal  to  1 1/2%  of
23    salary  as  the  employee's  contribution  for  the surviving
24    spouse's annuity and annual increases therefor.
25        (c)  Pickup of employee contributions.  The Employer  may
26    pick up employee contributions required under subsections (a)
27    and (b) of this Section.  If contributions are picked up they
28    shall be treated as Employer contributions in determining tax
29    treatment  under the United States Internal Revenue Code, and
30    shall not be included as gross income of the  employee  until
31    such  time  as  they are distributed.  The Employer shall pay
32    these employee contributions from the same  source  of  funds
33    used in paying salary to the employee.  The Employer may pick
 
                            -8-               LRB9214138EGfgA
 1    up  these  contributions by a reduction in the cash salary of
 2    the employee or by an offset against a future salary increase
 3    or by a combination of  a  reduction  in  salary  and  offset
 4    against  a future salary increase.  If employee contributions
 5    are picked up they shall be treated for all purposes of  this
 6    Article 13, including Sections 13-503 and 13-601, in the same
 7    manner  and to the same extent as employee contributions made
 8    prior to the date picked up.
 9        (d)  Subject to the  requirements  of  federal  law,  the
10    Employer  shall  pick  up  optional  contributions  that  the
11    employee  has  elected  to  pay  to  the  Fund  under Section
12    13-304.1, and the contributions so picked up shall be treated
13    as employer contributions for  the  purposes  of  determining
14    federal  tax  treatment.   The  Employer  shall  pick  up the
15    contributions by a  reduction  in  the  cash  salary  of  the
16    employee  and  shall pay the contributions from the same fund
17    that is used to pay earnings to the employee.   The  Employer
18    shall, however, continue to withhold federal and State income
19    taxes  based  upon  contributions made under Section 13-304.1
20    until the Internal Revenue Service or the federal courts rule
21    that pursuant to Section 414(h) of the U.S. Internal  Revenue
22    Code  of  1986,  as amended, these contributions shall not be
23    included as gross income of the employee until such  time  as
24    they are distributed or made available.
25        (e)  Each  employee is deemed to consent and agree to the
26    deductions from compensation provided for in this Article.
27    (Source: P.A. 87-794.)

28        (40 ILCS 5/13-503) (from Ch. 108 1/2, par. 13-503)
29        Sec. 13-503.  Tax levy.  The Water  Reclamation  District
30    shall  annually levy a tax upon all the taxable real property
31    within the District at a  rate  which,  when  extended,  will
32    produce  a  sum  that  (i) when added to the amounts deducted
33    from  the  salaries  of   employees,   interest   income   on
 
                            -9-               LRB9214138EGfgA
 1    investments, and other income, will be sufficient to meet the
 2    requirements  of the Fund on an actuarially funded basis, but
 3    (ii) shall not exceed an amount equal to the total amount  of
 4    contributions  by  the  employees  to  the  Fund  made in the
 5    calendar year 2  years prior to the year for which the tax is
 6    levied,  multiplied  by  2.19,  except  that  the  amount  of
 7    employee contributions made  on  or  after  January  1,  2003
 8    towards  the  purchase  of additional optional benefits under
 9    Section 13-304.1 shall only be multiplied by 1.00.   The  tax
10    shall  be  levied  and  collected  in  the same manner as the
11    general taxes of the District.
12        The tax shall be exclusive of  and  in  addition  to  the
13    amount  of  tax  the  District  is  now  or  may hereafter be
14    authorized  to  levy   for   general   purposes   under   the
15    Metropolitan  Water  Reclamation  District  Act  or under any
16    other laws which may limit the  amount  of  tax  for  general
17    purposes.   The  county  clerk of any county, in reducing tax
18    levies as may be authorized by law, shall  not  consider  any
19    such  tax  as  a  part  of  the general tax levy for District
20    purposes, and shall not include the same in any limitation of
21    the percent of the assessed valuation upon  which  taxes  are
22    required to be extended.
23        Revenues  derived  from the tax shall be paid to the Fund
24    for the benefit of the Fund.
25        If the funds available for the purposes of  this  Article
26    are  insufficient during any year to meet the requirements of
27    this  Article,  the  District  may  issue  tax   anticipation
28    warrants  or  notes,  as provided by law, against the current
29    tax levy.
30        The  Board  shall  submit  annually  to  the   Board   of
31    Commissioners  of  the  District  an  estimate  of the amount
32    required to be raised by taxation for  the  purposes  of  the
33    Fund.   The  Board of Commissioners shall review the estimate
34    and determine the tax to be levied for such purposes.
 
                            -10-              LRB9214138EGfgA
 1    (Source: P.A. 87-794.)

 2        Section 90.  The State Mandates Act is amended by  adding
 3    Section 8.26 as follows:

 4        (30 ILCS 805/8.26 new)
 5        Sec.  8.26.  Exempt  mandate.  Notwithstanding Sections 6
 6    and 8 of this Act, no reimbursement by the State is  required
 7    for  the  implementation  of  any  mandate  created  by  this
 8    amendatory Act of the 92nd General Assembly.

 9        Section  99.  Effective date.  This Act takes effect upon
10    becoming law.

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