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Public Act 098-0218 Public Act 0218 98TH GENERAL ASSEMBLY |
Public Act 098-0218 | HB1444 Enrolled | LRB098 03983 JDS 34003 b |
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| AN ACT concerning public employee benefits.
| Be it enacted by the People of the State of Illinois,
| represented in the General Assembly:
| Section 5. The Illinois Pension Code is amended by changing | Sections 7-135, 7-146, 7-172, 7-173, and 7-177 as follows:
| (40 ILCS 5/7-135) (from Ch. 108 1/2, par. 7-135)
| Sec. 7-135. Authorized agents.
| (a) Each participating municipality and participating
| instrumentality shall appoint an authorized agent who shall | have the
powers and duties set forth in this section. In | absence of such
appointment, the duties of the authorized agent | shall devolve upon the
clerk or secretary of the municipality | or instrumentality , the township supervisor in the case of a | township, and in the
case of township school trustees upon the | township school treasurer. In
townships the Authorized Agent | shall be the township supervisor.
| (b) The authorized agent shall have the following powers | and duties:
| 1. To certify to the fund whether or not a given person | is
authorized to participate in the fund;
| 2. To certify to the fund when a participating employee | is on a
leave of absence authorized by the municipality;
| 3. To request the proper officer to cause employee |
| contributions to
be withheld from earnings and transmitted | to the fund;
| 4. To request the proper officer to cause municipality | contributions
to be forwarded to the fund promptly;
| 5. To forward promptly to all participating employees | any
communications from the fund for such employees;
| 6. To forward promptly to the fund all applications, | claims, reports
and other communications delivered to him | by participating employees;
| 7. To perform all duties related to the administration | of this
retirement system as requested by the fund and the | governing body of his
municipality.
| (c) The governing body of each participating municipality | and
participating instrumentality may delegate any or all of | the following
powers and duties to its authorized agent:
| 1. To file a petition for nomination of an executive | trustee of the
fund.
| 2. To cast the ballot for election of an executive | trustee of the
fund.
| If a governing body does not authorize its agent to perform | the
powers and duties set forth in this paragraph (c), they | shall be
performed by the governing body itself, unless the | governing body by
resolution duly certified to the fund | delegates them to some other
officer or employee.
| (d) The delivery of any communication or document by an | employee or
a participating municipality or participating |
| instrumentality to its
authorized agent shall not constitute | delivery to the fund.
| (Source: P.A. 97-328, eff. 8-12-11; 97-609, eff. 1-1-12.)
| (40 ILCS 5/7-146) (from Ch. 108 1/2, par. 7-146)
| Sec. 7-146. Temporary disability benefits - Eligibility. | Temporary
disability benefits shall be payable to | participating employees as
hereinafter provided.
| (a) The participating employee shall be considered | temporarily
disabled if:
| 1. He is unable to perform the duties of any position | which might
reasonably be assigned to him by his employing | municipality or
instrumentality thereof or participating | instrumentality due to mental
or physical disability | caused by bodily injury or disease, other than as
a result | of self-inflicted injury or addiction to narcotic drugs;
| 2. The Board has received written certifications from | at least one licensed and practicing physician and the | governing body of the
employing municipality or | instrumentality thereof or participating
instrumentality | stating that the employee meets the conditions set forth
in | subparagraph 1 of this paragraph (a).
| (b) A temporary disability benefit shall be payable to a | temporarily
disabled employee provided:
| 1. He:
| (i) has at least one year of service immediately |
| preceding at the
date the temporary disability was | incurred and has made contributions to
the fund for at | least the number of months of service normally required
| in his position during a 12-month period, or has at | least 5 years of
service credit, the last year of which | immediately precedes such date; or
| (ii) had qualified under clause (i) above, but had | an interruption in
service with the same participating | municipality or participating
instrumentality of not | more than 3 months in the 12 months preceding the date
| the temporary disability was incurred and was not paid | a separation benefit; or
| (iii) had qualified under clause (i) above, but had | an interruption
after 20 or more years of creditable | service, was not paid a separation
benefit, and | returned to service prior to the date the disability | was incurred.
| Item (iii) of this subdivision shall apply to all | employees
whose disabilities were incurred on or after July | 1, 1985, and any such
employee who becomes eligible for a | disability benefit under item
(iii) shall be entitled to | receive a lump sum payment of any accumulated
disability | benefits which may accrue from the date the disability was
| incurred until the effective date of this amendatory Act of | 1987.
| Periods of qualified leave granted in compliance with |
| the federal Family
and Medical Leave Act shall be ignored | for purposes of determining the number
of consecutive | months of employment under this subdivision (b)1.
| 2. He has been temporarily disabled for at least 30 | days, except
where a former temporary or permanent and | total disability has
reoccurred within 6 months after the | employee has returned
to service.
| 3. He is receiving no earnings from a participating | municipality or
instrumentality thereof or participating | instrumentality, except as
allowed under subsection (f) of | Section 7-152.
| 4. He has not refused to submit to a reasonable | physical examination
by a physician appointed by the Board.
| 5. His disability is not the result of a mental or | physical
condition which existed on the earliest date of | service from which he
has uninterrupted service, including | prior service, at the date of his
disability, provided that | this limitation is not applicable if the date of
disability | is after December 31, 2001, nor is it applicable
to a | participating employee who: (i) on the date of disability | has 5 years
of creditable service, exclusive of creditable | service for periods of
disability; or (ii) received no | medical treatment for the condition for the 3
years | immediately prior to such earliest date of service.
| 6. He is not separated from the service of the | participating
municipality or instrumentality thereof or |
| participating instrumentality
which employed him on the | date his temporary disability was incurred;
for the | purposes of payment of temporary disability benefits, a
| participating employee, whose employment relationship is | terminated by
his employing municipality, shall be deemed | not to be separated from the
service of his employing | municipality or participating instrumentality
if he | continues disabled by the same condition and so long as he | is
otherwise entitled to such disability benefit.
| 7. He has not failed or refused to consent to and sign | an authorization allowing the Board to receive copies of or | to examine his medical and hospital records. | 8. He has not failed or refused to provide complete | information regarding any other employment for | compensation he has received since becoming disabled. | (Source: P.A. 97-415, eff. 8-16-11.)
| (40 ILCS 5/7-172) (from Ch. 108 1/2, par. 7-172)
| Sec. 7-172. Contributions by participating municipalities | and
participating instrumentalities.
| (a) Each participating municipality and each participating
| instrumentality shall make payment to the fund as follows:
| 1. municipality contributions in an amount determined | by applying
the municipality contribution rate to each | payment of earnings paid to
each of its participating | employees;
|
| 2. an amount equal to the employee contributions | provided by paragraph
(a) of Section 7-173, whether or not | the employee contributions are
withheld as permitted by | that Section;
| 3. all accounts receivable, together with interest | charged thereon,
as provided in Section 7-209;
| 4. if it has no participating employees with current | earnings, an
amount payable which, over a closed period of | 20 years for participating municipalities and 10 years for | participating instrumentalities, will amortize, at the | effective rate for
that year, any unfunded obligation. The | unfunded obligation shall be computed as provided in | paragraph 2 of subsection (b); | 5. if it has fewer than 7 participating employees or a | negative balance in its municipality reserve, the greater | of (A) an amount payable that, over a period of 20 years, | will amortize at the effective rate for that year any | unfunded obligation, computed as provided in paragraph 2 of | subsection (b) or (B) the amount required by paragraph 1 of | this subsection (a).
| (b) A separate municipality contribution rate shall be | determined
for each calendar year for all participating | municipalities together
with all instrumentalities thereof. | The municipality contribution rate
shall be determined for | participating instrumentalities as if they were
participating | municipalities. The municipality contribution rate shall
be |
| the sum of the following percentages:
| 1. The percentage of earnings of all the participating | employees of all
participating municipalities and | participating instrumentalities which, if paid
over the | entire period of their service, will be sufficient when | combined with
all employee contributions available for the | payment of benefits, to provide
all annuities for | participating employees, and the $3,000 death benefit
| payable under Sections 7-158 and 7-164, such percentage to | be known as the
normal cost rate.
| 2. The percentage of earnings of the participating | employees of each
participating municipality and | participating instrumentalities necessary
to adjust for | the difference between the present value of all benefits,
| excluding temporary and total and permanent disability and | death benefits, to
be provided for its participating | employees and the sum of its accumulated
municipality | contributions and the accumulated employee contributions | and the
present value of expected future employee and | municipality contributions
pursuant to subparagraph 1 of | this paragraph (b). This adjustment shall be
spread over a | period determined by the Board, not to exceed 30 years for | participating municipalities or 10 years for participating | instrumentalities the remainder of the period that is | allowable under generally
accepted accounting principles .
| 3. The percentage of earnings of the participating |
| employees of all
municipalities and participating | instrumentalities necessary to provide
the present value | of all temporary and total and permanent disability
| benefits granted during the most recent year for which | information is
available.
| 4. The percentage of earnings of the participating | employees of all
participating municipalities and | participating instrumentalities
necessary to provide the | present value of the net single sum death
benefits expected | to become payable from the reserve established under
| Section 7-206 during the year for which this rate is fixed.
| 5. The percentage of earnings necessary to meet any | deficiency
arising in the Terminated Municipality Reserve.
| (c) A separate municipality contribution rate shall be | computed for
each participating municipality or participating | instrumentality
for its sheriff's law enforcement employees.
| A separate municipality contribution rate shall be | computed for the
sheriff's law enforcement employees of each | forest preserve district that
elects to have such employees. | For the period from January 1, 1986 to
December 31, 1986, such | rate shall be the forest preserve district's regular
rate plus | 2%.
| In the event that the Board determines that there is an | actuarial
deficiency in the account of any municipality with | respect to a person who
has elected to participate in the Fund | under Section 3-109.1 of this Code,
the Board may adjust the |
| municipality's contribution rate so as to make up
that | deficiency over such reasonable period of time as the Board may | determine.
| (d) The Board may establish a separate municipality | contribution
rate for all employees who are program | participants employed under the
federal Comprehensive | Employment Training Act by all of the
participating | municipalities and instrumentalities. The Board may also
| provide that, in lieu of a separate municipality rate for these
| employees, a portion of the municipality contributions for such | program
participants shall be refunded or an extra charge | assessed so that the
amount of municipality contributions | retained or received by the fund
for all CETA program | participants shall be an amount equal to that which
would be | provided by the separate municipality contribution rate for all
| such program participants. Refunds shall be made to prime | sponsors of
programs upon submission of a claim therefor and | extra charges shall be
assessed to participating | municipalities and instrumentalities. In
establishing the | municipality contribution rate as provided in paragraph
(b) of | this Section, the use of a separate municipality contribution
| rate for program participants or the refund of a portion of the
| municipality contributions, as the case may be, may be | considered.
| (e) Computations of municipality contribution rates for | the
following calendar year shall be made prior to the |
| beginning of each
year, from the information available at the | time the computations are
made, and on the assumption that the | employees in each participating
municipality or participating | instrumentality at such time will continue
in service until the | end of such calendar year at their respective rates
of earnings | at such time.
| (f) Any municipality which is the recipient of State | allocations
representing that municipality's contributions for | retirement annuity
purposes on behalf of its employees as | provided in Section 12-21.16 of
the Illinois Public Aid Code | shall pay the allocations so
received to the Board for such | purpose. Estimates of State allocations to
be received during | any taxable year shall be considered in the
determination of | the municipality's tax rate for that year under Section
7-171. | If a special tax is levied under Section 7-171, none of the
| proceeds may be used to reimburse the municipality for the | amount of State
allocations received and paid to the Board. Any | multiple-county or
consolidated health department which | receives contributions from a county
under Section 11.2 of "An | Act in relation to establishment and maintenance
of county and | multiple-county health departments", approved July 9, 1943,
as | amended, or distributions under Section 3 of the Department of | Public
Health Act, shall use these only for municipality | contributions by the
health department.
| (g) Municipality contributions for the several purposes | specified
shall, for township treasurers and employees in the |
| offices of the
township treasurers who meet the qualifying | conditions for coverage
hereunder, be allocated among the | several school districts and parts of
school districts serviced | by such treasurers and employees in the
proportion which the | amount of school funds of each district or part of
a district | handled by the treasurer bears to the total amount of all
| school funds handled by the treasurer.
| From the funds subject to allocation among districts and | parts of
districts pursuant to the School Code, the trustees | shall withhold the
proportionate share of the liability for | municipality contributions imposed
upon such districts by this | Section, in respect to such township treasurers
and employees | and remit the same to the Board.
| The municipality contribution rate for an educational | service center shall
initially be the same rate for each year | as the regional office of
education or school district
which | serves as its administrative agent. When actuarial data become
| available, a separate rate shall be established as provided in | subparagraph
(i) of this Section.
| The municipality contribution rate for a public agency, | other than a
vocational education cooperative, formed under the | Intergovernmental
Cooperation Act shall initially be the | average rate for the municipalities
which are parties to the | intergovernmental agreement. When actuarial data
become | available, a separate rate shall be established as provided in
| subparagraph (i) of this Section.
|
| (h) Each participating municipality and participating
| instrumentality shall make the contributions in the amounts | provided in
this Section in the manner prescribed from time to | time by the Board and
all such contributions shall be | obligations of the respective
participating municipalities and | participating instrumentalities to this
fund. The failure to | deduct any employee contributions shall not
relieve the | participating municipality or participating instrumentality
of | its obligation to this fund. Delinquent payments of | contributions
due under this Section may, with interest, be | recovered by civil action
against the participating | municipalities or participating
instrumentalities. | Municipality contributions, other than the amount
necessary | for employee contributions, for
periods of service by employees | from whose earnings no deductions were made
for employee | contributions to the fund, may be charged to the municipality
| reserve for the municipality or participating instrumentality.
| (i) Contributions by participating instrumentalities shall | be
determined as provided herein except that the percentage | derived under
subparagraph 2 of paragraph (b) of this Section, | and the amount payable
under subparagraph 4 of paragraph (a) of | this Section, shall be based on
an amortization period of 10 | years.
| (j) Notwithstanding the other provisions of this Section, | the additional unfunded liability accruing as a result of this | amendatory Act of the 94th General Assembly
shall be amortized |
| over a period of 30 years beginning on January 1 of the
second | calendar year following the calendar year in which this | amendatory Act takes effect, except that the employer may | provide for a longer amortization period by adopting a | resolution or ordinance specifying a 35-year or 40-year period | and submitting a certified copy of the ordinance or resolution | to the fund no later than June 1 of the calendar year following | the calendar year in which this amendatory Act takes effect.
| (k) If the amount of a participating employee's reported | earnings for any of the 12-month periods used to determine the | final rate of earnings exceeds the employee's 12 month reported | earnings with the same employer for the previous year by the | greater of 6% or 1.5 times the annual increase in the Consumer | Price Index-U, as established by the United States Department | of Labor for the preceding September, the participating | municipality or participating instrumentality that paid those | earnings shall pay to the Fund, in addition to any other | contributions required under this Article, the present value of | the increase in the pension resulting from the portion of the | increase in salary that is in excess of the greater of 6% or | 1.5 times the annual increase in the Consumer Price Index-U, as | determined by the Fund. This present value shall be computed on | the basis of the actuarial assumptions and tables used in the | most recent actuarial valuation of the Fund that is available | at the time of the computation. | Whenever it determines that a payment is or may be required |
| under this subsection (k), the fund shall calculate the amount | of the payment and bill the participating municipality or | participating instrumentality for that amount. The bill shall | specify the calculations used to determine the amount due. If | the participating municipality or participating | instrumentality disputes the amount of the bill, it may, within | 30 days after receipt of the bill, apply to the fund in writing | for a recalculation. The application must specify in detail the | grounds of the dispute. Upon receiving a timely application for | recalculation, the fund shall review the application and, if | appropriate, recalculate the amount due.
The participating | municipality and participating instrumentality contributions | required under this subsection (k) may be paid in the form of a | lump sum within 90 days after receipt of the bill. If the | participating municipality and participating instrumentality | contributions are not paid within 90 days after receipt of the | bill, then interest will be charged at a rate equal to the | fund's annual actuarially assumed rate of return on investment | compounded annually from the 91st day after receipt of the | bill. Payments must be concluded within 3 years after receipt | of the bill by the participating municipality or participating | instrumentality. | When assessing payment for any amount due under this | subsection (k), the fund shall exclude earnings increases | resulting from overload or overtime earnings. | When assessing payment for any amount due under this |
| subsection (k), the fund shall also exclude earnings increases | attributable to standard employment promotions resulting in | increased responsibility and workload. | This subsection (k) does not apply to earnings increases | paid to individuals under contracts or collective bargaining | agreements entered into, amended, or renewed before January 1, | 2012 (the effective date of Public Act 97-609), earnings | increases paid to members who are 10 years or more from | retirement eligibility, or earnings increases resulting from | an increase in the number of hours required to be worked. | When assessing payment for any amount due under this | subsection (k), the fund shall also exclude earnings | attributable to personnel policies adopted before January 1, | 2012 (the effective date of Public Act 97-609) as long as those | policies are not applicable to employees who begin service on | or after January 1, 2012 (the effective date of Public Act | 97-609). | (Source: P.A. 96-1084, eff. 7-16-10; 96-1140, eff. 7-21-10; | 97-333, eff. 8-12-11; 97-609, eff. 1-1-12; 97-933, eff. | 8-10-12.)
| (40 ILCS 5/7-173) (from Ch. 108 1/2, par. 7-173)
| Sec. 7-173. Contributions by employees.
| (a) Each participating employee shall make contributions | to the fund as
follows:
| 1. For retirement annuity purposes, normal |
| contributions of 3 3/4%
of earnings.
| 2. Additional contributions of such percentages of | each payment of
earnings, as shall be elected by the | employee for retirement annuity
purposes, but not in excess | of 10%. The selected rate shall be
applicable to all | earnings paid following receipt by the Board of written | notice of election to
make such contributions. Additional | contributions at the selected rate
shall be made | concurrently with normal contributions.
| 3. Survivor contributions, by each participating | employee, of 3/4%
of each payment of earnings.
| (b) (Blank).
| (c) Contributions shall be deducted from each | corresponding payment
of earnings paid to each employee and | shall be remitted to the board by
the participating | municipality or participating instrumentality making
such | payment. The remittance, together with a report of the earnings
| and contributions shall be made as directed by the board. For | township
treasurers and employees of township treasurers | qualifying as employees
hereunder, the contributions herein | required as deductions from salary
shall be withheld by the | school township trustees from funds available
for the payment | of the compensation of such treasurers and employees as
| provided in the School Code and remitted to the board.
| (d) An employee who has made additional contributions under
| paragraph (a)2 of this Section may upon retirement or at any |
| time prior
thereto, elect to withdraw the total of such | additional contributions
including interest credited thereon | to the end of the preceding calendar
year , to the extent | permitted by the federal Internal Revenue Code of 1986, as now | or hereafter amended .
| (e) Failure to make the deductions for employee | contributions
provided in paragraph (c) of this Section shall | not relieve the employee
from liability for such contributions. | The amount of such liability may
be deducted, with interest | charged under Section 7-209, from any
annuities or benefits | payable hereunder to the employee or any other
person receiving | an annuity or benefit by reason of such employee's
| participation.
| (f) A participating employee who has at least 40 years of | creditable
service in the Fund may elect to cease making the | contributions required
under this Section. The status of the | employee under this Article shall be
unaffected by this | election, except that the employee shall not receive any
| additional creditable service for the periods of employment | following the
election. An election under this subsection | relieves the employer from
making additional employer | contributions in relation to that employee.
| (Source: P.A. 96-1084, eff. 7-16-10; 96-1258, eff. 7-23-10; | 97-333, eff. 8-12-11; 97-933, eff. 8-10-12.)
| (40 ILCS 5/7-177) (from Ch. 108 1/2, par. 7-177)
|
| Sec. 7-177. Board meetings.
| The board shall hold regular monthly meetings at least 4 | times in each year and such special meetings
at such other | times as may be called by the executive director upon written
| notice of at least 3 trustees. At least 5 days' notice of each | meeting
shall be given to each trustee. All meetings of the | board shall be open to
the public and shall be held in the | offices of the board or in any other
place specifically | designated in the notice of any meeting.
| (Source: Laws 1963, p. 161.)
| Section 90. The State Mandates Act is amended by adding | Section 8.37 as follows: | (30 ILCS 805/8.37 new) | Sec. 8.37. Exempt mandate. Notwithstanding Sections 6 and 8 | of this Act, no reimbursement by the State is required for the | implementation of any mandate created by this amendatory Act of | the 98th General Assembly.
| Section 99. Effective date. This Act takes effect upon | becoming law.
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Effective Date: 8/9/2013
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