Bill Amendment: IL HB0166 | 2017-2018 | 100th General Assembly
NOTE: For additional amemendments please see the Bill Drafting List
Bill Title: PUBLIC EMPLOYEE BENEFITS-TECH
Status: 2019-01-04 - Public Act . . . . . . . . . 100-1166 [HB0166 Detail]
Download: Illinois-2017-HB0166-House_Amendment_001.html
Bill Title: PUBLIC EMPLOYEE BENEFITS-TECH
Status: 2019-01-04 - Public Act . . . . . . . . . 100-1166 [HB0166 Detail]
Download: Illinois-2017-HB0166-House_Amendment_001.html
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1 | AMENDMENT TO HOUSE BILL 166
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2 | AMENDMENT NO. ______. Amend House Bill 166 by replacing | ||||||
3 | everything after the enacting clause with the following:
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4 | "Section 5. The Illinois Pension Code is amended by | ||||||
5 | changing Sections 1-160, 8-174, 11-170, and 11-197.7 as | ||||||
6 | follows:
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7 | (40 ILCS 5/1-160)
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8 | Sec. 1-160. Provisions applicable to new hires. | ||||||
9 | (a) The provisions of this Section apply to a person who, | ||||||
10 | on or after January 1, 2011, first becomes a member or a | ||||||
11 | participant under any reciprocal retirement system or pension | ||||||
12 | fund established under this Code, other than a retirement | ||||||
13 | system or pension fund established under Article 2, 3, 4, 5, 6, | ||||||
14 | 15 or 18 of this Code, notwithstanding any other provision of | ||||||
15 | this Code to the contrary, but do not apply to any self-managed | ||||||
16 | plan established under this Code, to any person with respect to |
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1 | service as a sheriff's law enforcement employee under Article | ||||||
2 | 7, or to any participant of the retirement plan established | ||||||
3 | under Section 22-101. Notwithstanding anything to the contrary | ||||||
4 | in this Section, for purposes of this Section, a person who | ||||||
5 | participated in a retirement system under Article 15 prior to | ||||||
6 | January 1, 2011 shall be deemed a person who first became a | ||||||
7 | member or participant prior to January 1, 2011 under any | ||||||
8 | retirement system or pension fund subject to this Section. The | ||||||
9 | changes made to this Section by Public Act 98-596 are a | ||||||
10 | clarification of existing law and are intended to be | ||||||
11 | retroactive to January 1, 2011 (the effective date of Public | ||||||
12 | Act 96-889), notwithstanding the provisions of Section 1-103.1 | ||||||
13 | of this Code. | ||||||
14 | This Section does not apply to a person who first becomes a | ||||||
15 | noncovered employee under Article 14 on or after the | ||||||
16 | implementation date of the plan created under Section 1-161 for | ||||||
17 | that Article, unless that person elects under subsection (b) of | ||||||
18 | Section 1-161 to instead receive the benefits provided under | ||||||
19 | this Section and the applicable provisions of that Article. | ||||||
20 | This Section does not apply to a person who first becomes a | ||||||
21 | member or participant under Article 16 on or after the | ||||||
22 | implementation date of the plan created under Section 1-161 for | ||||||
23 | that Article, unless that person elects under subsection (b) of | ||||||
24 | Section 1-161 to instead receive the benefits provided under | ||||||
25 | this Section and the applicable provisions of that Article. | ||||||
26 | This Section does not apply to a person who elects under |
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1 | subsection (c-5) of Section 1-161 to receive the benefits under | ||||||
2 | Section 1-161. | ||||||
3 | This Section does not apply to a person who first becomes a | ||||||
4 | member or participant of an affected pension fund on or after 6 | ||||||
5 | months after the resolution or ordinance date, as defined in | ||||||
6 | Section 1-162, unless that person elects under subsection (c) | ||||||
7 | of Section 1-162 to receive the benefits provided under this | ||||||
8 | Section and the applicable provisions of the Article under | ||||||
9 | which he or she is a member or participant. | ||||||
10 | (b) "Final average salary" means the average monthly (or | ||||||
11 | annual) salary obtained by dividing the total salary or | ||||||
12 | earnings calculated under the Article applicable to the member | ||||||
13 | or participant during the 96 consecutive months (or 8 | ||||||
14 | consecutive years) of service within the last 120 months (or 10 | ||||||
15 | years) of service in which the total salary or earnings | ||||||
16 | calculated under the applicable Article was the highest by the | ||||||
17 | number of months (or years) of service in that period. For the | ||||||
18 | purposes of a person who first becomes a member or participant | ||||||
19 | of any retirement system or pension fund to which this Section | ||||||
20 | applies on or after January 1, 2011, in this Code, "final | ||||||
21 | average salary" shall be substituted for the following: | ||||||
22 | (1) In Article 7 (except for service as sheriff's law | ||||||
23 | enforcement employees), "final rate of earnings". | ||||||
24 | (2) In Articles 8, 9, 10, 11, and 12, "highest average | ||||||
25 | annual salary for any 4 consecutive years within the last | ||||||
26 | 10 years of service immediately preceding the date of |
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1 | withdrawal". | ||||||
2 | (3) In Article 13, "average final salary". | ||||||
3 | (4) In Article 14, "final average compensation". | ||||||
4 | (5) In Article 17, "average salary". | ||||||
5 | (6) In Section 22-207, "wages or salary received by him | ||||||
6 | at the date of retirement or discharge". | ||||||
7 | (b-5) Beginning on January 1, 2011, for all purposes under | ||||||
8 | this Code (including without limitation the calculation of | ||||||
9 | benefits and employee contributions), the annual earnings, | ||||||
10 | salary, or wages (based on the plan year) of a member or | ||||||
11 | participant to whom this Section applies shall not exceed | ||||||
12 | $106,800; however, that amount shall annually thereafter be | ||||||
13 | increased by the lesser of (i) 3% of that amount, including all | ||||||
14 | previous adjustments, or (ii) one-half the annual unadjusted | ||||||
15 | percentage increase (but not less than zero) in the consumer | ||||||
16 | price index-u
for the 12 months ending with the September | ||||||
17 | preceding each November 1, including all previous adjustments. | ||||||
18 | For the purposes of this Section, "consumer price index-u" | ||||||
19 | means
the index published by the Bureau of Labor Statistics of | ||||||
20 | the United States
Department of Labor that measures the average | ||||||
21 | change in prices of goods and
services purchased by all urban | ||||||
22 | consumers, United States city average, all
items, 1982-84 = | ||||||
23 | 100. The new amount resulting from each annual adjustment
shall | ||||||
24 | be determined by the Public Pension Division of the Department | ||||||
25 | of Insurance and made available to the boards of the retirement | ||||||
26 | systems and pension funds by November 1 of each year. |
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1 | (c) A member or participant is entitled to a retirement
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2 | annuity upon written application if he or she has attained age | ||||||
3 | 67 (beginning January 1, 2015, age 65 with respect to service | ||||||
4 | under Article 12 of this Code that is subject to this Section) | ||||||
5 | and has at least 10 years of service credit and is otherwise | ||||||
6 | eligible under the requirements of the applicable Article. | ||||||
7 | A member or participant who has attained age 62 (beginning | ||||||
8 | January 1, 2015, age 60 with respect to service under Article | ||||||
9 | 12 of this Code that is subject to this Section) and has at | ||||||
10 | least 10 years of service credit and is otherwise eligible | ||||||
11 | under the requirements of the applicable Article may elect to | ||||||
12 | receive the lower retirement annuity provided
in subsection (d) | ||||||
13 | of this Section. | ||||||
14 | (c-5) A person who first becomes a member or a participant | ||||||
15 | subject to this Section under Article 8 or Article 11 of this | ||||||
16 | Code on or after July 6, 2017 ( the effective date of Public Act | ||||||
17 | 100-23) this amendatory Act of the 100th General Assembly , | ||||||
18 | notwithstanding any other provision of this Code to the | ||||||
19 | contrary, is entitled to a retirement annuity under Article 8 | ||||||
20 | or Article 11 upon written application if he or she has | ||||||
21 | attained age 65 and has at least 10 years of service credit | ||||||
22 | under Article 8 or Article 11 of this Code and is otherwise | ||||||
23 | eligible under the requirements of Article 8 or Article 11 of | ||||||
24 | this Code, whichever is applicable. | ||||||
25 | (d) The retirement annuity of a member or participant who | ||||||
26 | is retiring after attaining age 62 (beginning January 1, 2015, |
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1 | age 60 with respect to service under Article 12 of this Code | ||||||
2 | that is subject to this Section) with at least 10 years of | ||||||
3 | service credit shall be reduced by one-half
of 1% for each full | ||||||
4 | month that the member's age is under age 67 (beginning January | ||||||
5 | 1, 2015, age 65 with respect to service under Article 12 of | ||||||
6 | this Code that is subject to this Section). | ||||||
7 | (d-5) The retirement annuity payable under Article 8 or | ||||||
8 | Article 11 to an eligible of a person subject to subsection | ||||||
9 | (c-5) of this Section who first becomes a member or a | ||||||
10 | participant under Article 8 or Article 11 of this Code on or | ||||||
11 | after the effective date of this amendatory Act of the 100th | ||||||
12 | General Assembly who is retiring at age 60 with at least 10 | ||||||
13 | years of service credit under Article 8 or Article 11 shall be | ||||||
14 | reduced by one-half of 1% for each full month that the member's | ||||||
15 | age is under age 65. | ||||||
16 | (d-10) Each person who first became a member or participant | ||||||
17 | under Article 8 or Article 11 of this Code on or after January | ||||||
18 | 1, 2011 and prior to the effective date of this amendatory Act | ||||||
19 | of the 100th General Assembly shall make an irrevocable | ||||||
20 | election either: | ||||||
21 | (i) to be eligible for the reduced retirement age | ||||||
22 | provided in subsections (c-5)
and (d-5) of this Section, | ||||||
23 | the eligibility for which is conditioned upon the member or | ||||||
24 | participant agreeing to the increases in employee | ||||||
25 | contributions for age and service annuities provided in | ||||||
26 | subsection (a-5) of Section 8-174 of this Code (for service |
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1 | under Article 8) or subsection (a-5) of Section 11-170 of | ||||||
2 | this Code (for service under Article 11); or | ||||||
3 | (ii) to not agree to item (i) of this subsection | ||||||
4 | (d-10), in which case the member or participant shall | ||||||
5 | continue to be subject to the retirement age provisions in | ||||||
6 | subsections (c) and (d) of this Section and the employee | ||||||
7 | contributions for age and service annuity as provided in | ||||||
8 | subsection (a) of Section 8-174 of this Code (for service | ||||||
9 | under Article 8) or subsection (a) of Section 11-170 of | ||||||
10 | this Code (for service under Article 11). | ||||||
11 | The election provided for in this subsection shall be made | ||||||
12 | between October 1, 2017 and November 15, 2017. A person subject | ||||||
13 | to this subsection who makes the required election shall remain | ||||||
14 | bound by that election. A person subject to this subsection who | ||||||
15 | fails for any reason to make the required election within the | ||||||
16 | time specified in this subsection shall be deemed to have made | ||||||
17 | the election under item (ii). | ||||||
18 | (e) Any retirement annuity or supplemental annuity shall be | ||||||
19 | subject to annual increases on the January 1 occurring either | ||||||
20 | on or after the attainment of age 67 (beginning January 1, | ||||||
21 | 2015, age 65 with respect to service under Article 12 of this | ||||||
22 | Code that is subject to this Section and beginning on the | ||||||
23 | effective date of this amendatory Act of the 100th General | ||||||
24 | Assembly, age 65 with respect to service under Article 8 or | ||||||
25 | Article 11 for eligible persons who: (i) are subject to | ||||||
26 | subsection (c-5) of this Section first became members or |
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1 | participants under Article 8 or Article 11 of this Code on or | ||||||
2 | after the effective date of this amendatory Act of the 100th | ||||||
3 | General Assembly ; or (ii) first became members or participants | ||||||
4 | under Article 8 or Article 11 of this Code on or after January | ||||||
5 | 1, 2011 and before the effective date of this amendatory Act of | ||||||
6 | the 100th General Assembly and made the election under item (i) | ||||||
7 | of subsection (d-10) of this Section) or the first anniversary | ||||||
8 | of the annuity start date, whichever is later. Each annual | ||||||
9 | increase shall be calculated at 3% or one-half the annual | ||||||
10 | unadjusted percentage increase (but not less than zero) in the | ||||||
11 | consumer price index-u for the 12 months ending with the | ||||||
12 | September preceding each November 1, whichever is less, of the | ||||||
13 | originally granted retirement annuity. If the annual | ||||||
14 | unadjusted percentage change in the consumer price index-u for | ||||||
15 | the 12 months ending with the September preceding each November | ||||||
16 | 1 is zero or there is a decrease, then the annuity shall not be | ||||||
17 | increased. | ||||||
18 | For the purposes of Section 1-103.1 of this Code, the | ||||||
19 | changes made to this Section by this amendatory Act of the | ||||||
20 | 100th General Assembly are applicable without regard to whether | ||||||
21 | the employee was in active service on or after the effective | ||||||
22 | date of this amendatory Act of the 100th General Assembly. | ||||||
23 | (f) The initial survivor's or widow's annuity of an | ||||||
24 | otherwise eligible survivor or widow of a retired member or | ||||||
25 | participant who first became a member or participant on or | ||||||
26 | after January 1, 2011 shall be in the amount of 66 2/3% of the |
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1 | retired member's or participant's retirement annuity at the | ||||||
2 | date of death. In the case of the death of a member or | ||||||
3 | participant who has not retired and who first became a member | ||||||
4 | or participant on or after January 1, 2011, eligibility for a | ||||||
5 | survivor's or widow's annuity shall be determined by the | ||||||
6 | applicable Article of this Code. The initial benefit shall be | ||||||
7 | 66 2/3% of the earned annuity without a reduction due to age. A | ||||||
8 | child's annuity of an otherwise eligible child shall be in the | ||||||
9 | amount prescribed under each Article if applicable. Any | ||||||
10 | survivor's or widow's annuity shall be increased (1) on each | ||||||
11 | January 1 occurring on or after the commencement of the annuity | ||||||
12 | if
the deceased member died while receiving a retirement | ||||||
13 | annuity or (2) in
other cases, on each January 1 occurring | ||||||
14 | after the first anniversary
of the commencement of the annuity. | ||||||
15 | Each annual increase shall be calculated at 3% or one-half the | ||||||
16 | annual unadjusted percentage increase (but not less than zero) | ||||||
17 | in the consumer price index-u for the 12 months ending with the | ||||||
18 | September preceding each November 1, whichever is less, of the | ||||||
19 | originally granted survivor's annuity. If the annual | ||||||
20 | unadjusted percentage change in the consumer price index-u for | ||||||
21 | the 12 months ending with the September preceding each November | ||||||
22 | 1 is zero or there is a decrease, then the annuity shall not be | ||||||
23 | increased. | ||||||
24 | (g) The benefits in Section 14-110 apply only if the person | ||||||
25 | is a State policeman, a fire fighter in the fire protection | ||||||
26 | service of a department, a security employee of the Department |
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1 | of Corrections or the Department of Juvenile Justice, or a | ||||||
2 | security employee of the Department of Innovation and | ||||||
3 | Technology, as those terms are defined in subsection (b) and | ||||||
4 | subsection (c) of Section 14-110. A person who meets the | ||||||
5 | requirements of this Section is entitled to an annuity | ||||||
6 | calculated under the provisions of Section 14-110, in lieu of | ||||||
7 | the regular or minimum retirement annuity, only if the person | ||||||
8 | has withdrawn from service with not less than 20
years of | ||||||
9 | eligible creditable service and has attained age 60, regardless | ||||||
10 | of whether
the attainment of age 60 occurs while the person is
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11 | still in service. | ||||||
12 | (h) If a person who first becomes a member or a participant | ||||||
13 | of a retirement system or pension fund subject to this Section | ||||||
14 | on or after January 1, 2011 is receiving a retirement annuity | ||||||
15 | or retirement pension under that system or fund and becomes a | ||||||
16 | member or participant under any other system or fund created by | ||||||
17 | this Code and is employed on a full-time basis, except for | ||||||
18 | those members or participants exempted from the provisions of | ||||||
19 | this Section under subsection (a) of this Section, then the | ||||||
20 | person's retirement annuity or retirement pension under that | ||||||
21 | system or fund shall be suspended during that employment. Upon | ||||||
22 | termination of that employment, the person's retirement | ||||||
23 | annuity or retirement pension payments shall resume and be | ||||||
24 | recalculated if recalculation is provided for under the | ||||||
25 | applicable Article of this Code. | ||||||
26 | If a person who first becomes a member of a retirement |
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1 | system or pension fund subject to this Section on or after | ||||||
2 | January 1, 2012 and is receiving a retirement annuity or | ||||||
3 | retirement pension under that system or fund and accepts on a | ||||||
4 | contractual basis a position to provide services to a | ||||||
5 | governmental entity from which he or she has retired, then that | ||||||
6 | person's annuity or retirement pension earned as an active | ||||||
7 | employee of the employer shall be suspended during that | ||||||
8 | contractual service. A person receiving an annuity or | ||||||
9 | retirement pension under this Code shall notify the pension | ||||||
10 | fund or retirement system from which he or she is receiving an | ||||||
11 | annuity or retirement pension, as well as his or her | ||||||
12 | contractual employer, of his or her retirement status before | ||||||
13 | accepting contractual employment. A person who fails to submit | ||||||
14 | such notification shall be guilty of a Class A misdemeanor and | ||||||
15 | required to pay a fine of $1,000. Upon termination of that | ||||||
16 | contractual employment, the person's retirement annuity or | ||||||
17 | retirement pension payments shall resume and, if appropriate, | ||||||
18 | be recalculated under the applicable provisions of this Code. | ||||||
19 | (i) (Blank). | ||||||
20 | (j) In the case of a conflict between the provisions of | ||||||
21 | this Section and any other provision of this Code, the | ||||||
22 | provisions of this Section shall control.
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23 | (Source: P.A. 100-23, eff. 7-6-17; 100-201, eff. 8-18-17; | ||||||
24 | 100-563, eff. 12-8-17; 100-611, eff. 7-20-18.)
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25 | (40 ILCS 5/8-174)
(from Ch. 108 1/2, par. 8-174)
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1 | Sec. 8-174. Contributions for age and service annuities for | ||||||
2 | present
employees and future entrants.
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3 | (a) Beginning on the effective date and prior to July 1, | ||||||
4 | 1947, 3
1/4%; and beginning on July 1, 1947 and prior to July | ||||||
5 | 1, 1953, 5%; and
beginning July 1, 1953, and prior to January | ||||||
6 | 1, 1972, 6%; and beginning
January 1, 1972, 6-1/2% of each | ||||||
7 | payment of the salary of each present
employee and future | ||||||
8 | entrant, except as provided in subsection (a-5) and (a-10), | ||||||
9 | shall be contributed to the fund as a
deduction from salary for | ||||||
10 | age and service annuity.
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11 | (a-5) Except as provided in subsection (a-10), for an | ||||||
12 | employee who on or after January 1, 2011 and prior to the | ||||||
13 | effective date of this amendatory Act of the 100th General | ||||||
14 | Assembly first became a member or participant under this | ||||||
15 | Article and made the election under item (i) of subsection | ||||||
16 | (d-10) of Section 1-160: prior to the effective date of this | ||||||
17 | amendatory Act of the 100th General Assembly, 6.5%; and | ||||||
18 | beginning on the effective date of this amendatory Act of the | ||||||
19 | 100th General Assembly and prior to January 1, 2018, 7.5%; and | ||||||
20 | beginning January 1, 2018 and prior to January 1, 2019, 8.5%; | ||||||
21 | and beginning January 1, 2019 and thereafter, employee | ||||||
22 | contributions for those employees who made the election under | ||||||
23 | item (i) of subsection (d-10) of Section 1-160 shall be the | ||||||
24 | lesser of: (i) the total normal cost, calculated using the | ||||||
25 | entry age normal actuarial method, projected for the prior that | ||||||
26 | fiscal year for the benefits and expenses of the plan of |
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1 | benefits applicable to those members and participants who first | ||||||
2 | became members or participants on or after the effective date | ||||||
3 | of this amendatory Act of the 100th General Assembly and to | ||||||
4 | those employees who made the election under item (i) of | ||||||
5 | subsection (d-10) of Section 1-160, but not less than 6.5% of | ||||||
6 | each payment of salary combined with the employee contributions | ||||||
7 | provided for in subsection (b) of Section 8-137 and Section | ||||||
8 | 8-182 of this Article; or (ii) the aggregate employee | ||||||
9 | contribution consisting of 9.5% of each payment of salary | ||||||
10 | combined with the employee contributions provided for in | ||||||
11 | subsection (b) of Section 8-137 and 8-182 of this Article. | ||||||
12 | For the one-year period beginning Beginning with the first | ||||||
13 | pay period in January of each year on or after the date when | ||||||
14 | the funded ratio of the fund as determined in the annual | ||||||
15 | actuarial valuation is first determined to have reached the 90% | ||||||
16 | funding goal, and each subsequent one-year pay period | ||||||
17 | thereafter for as long as the fund maintains a funding ratio of | ||||||
18 | 75% or more, employee contributions for age and service annuity | ||||||
19 | for those employees who made the election under item (i) of | ||||||
20 | subsection (d-10) of Section 1-160 shall be 5.5% of each | ||||||
21 | payment of salary. If the funding ratio falls below 75%, then | ||||||
22 | employee contributions for age and service annuity for those | ||||||
23 | employees who made the election under item (i) of subsection | ||||||
24 | (d-10) shall revert to the lesser of: (A) the total normal | ||||||
25 | cost, calculated using the entry age normal actuarial method, | ||||||
26 | projected for the prior that fiscal year for the benefits and |
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1 | expenses of the plan of benefits applicable to those members | ||||||
2 | and participants who first became members or participants on or | ||||||
3 | after the effective date of this amendatory Act of the 100th | ||||||
4 | General Assembly and to those employees who made the election | ||||||
5 | under item (i) of subsection (d-10) of Section 1-160, but not | ||||||
6 | less than 6.5% of each payment of salary combined with the | ||||||
7 | employee contributions provided for in subsection (b) of | ||||||
8 | Section 8-137 and Section 8-182 of this Article; or (B) the | ||||||
9 | aggregate employee contribution consisting of 9.5% of each | ||||||
10 | payment of salary combined with the employee contributions | ||||||
11 | provided for in subsection (b) of Section 8-137 and 8-182 of | ||||||
12 | this Article. If the fund once again is determined to have | ||||||
13 | reached a funding ratio of 75%, the 5.5% of salary contribution | ||||||
14 | for age and service annuity shall resume. An employee who made | ||||||
15 | the election under item (ii) of subsection (d-10) of Section | ||||||
16 | 1-160 shall continue to have the contributions for age and | ||||||
17 | service annuity determined under subsection (a) of this | ||||||
18 | Section. | ||||||
19 | If contributions are reduced to less than the aggregate | ||||||
20 | employee contribution described in item (ii) or item (B) of | ||||||
21 | this subsection due to application of the normal cost | ||||||
22 | criterion, the employee contribution amount shall be | ||||||
23 | consistent for from July 1 of the fiscal year through June 30 | ||||||
24 | of that fiscal year. | ||||||
25 | The normal cost, for the purposes of this subsection (a-5) | ||||||
26 | and subsection (a-10), shall be calculated by an independent |
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1 | enrolled actuary mutually agreed upon by the fund and the City. | ||||||
2 | The fees and expenses of the independent actuary shall be the | ||||||
3 | responsibility of the City. For purposes of this subsection | ||||||
4 | (a-5), the fund and the City shall both be considered to be the | ||||||
5 | clients of the actuary, and the actuary shall utilize | ||||||
6 | participant data and actuarial standards to calculate the | ||||||
7 | normal cost. The fund shall provide information that the | ||||||
8 | actuary requests in order to calculate the applicable normal | ||||||
9 | cost. | ||||||
10 | (a-10) For each employee subject to subsection (c-5) of | ||||||
11 | Section 1-160 who on or after the effective date of this | ||||||
12 | amendatory Act of the 100th General Assembly first becomes a | ||||||
13 | member or participant under this Article , 9.5% of each payment | ||||||
14 | of salary shall be contributed to the fund as a deduction from | ||||||
15 | salary for age and service annuity. Beginning January 1, 2018 | ||||||
16 | and each year thereafter, employee contributions for each | ||||||
17 | employee subject to this subsection (a-10) shall be the lesser | ||||||
18 | of: (i) the total normal cost, calculated using the entry age | ||||||
19 | normal actuarial method, projected for the prior that fiscal | ||||||
20 | year for the benefits and expenses of the plan of benefits | ||||||
21 | applicable to those members and participants who first become | ||||||
22 | members or participants on or after the effective date of this | ||||||
23 | amendatory Act of the 100th General Assembly and to those | ||||||
24 | employees who made the election under item (i) of subsection | ||||||
25 | (d-10) of Section 1-160, but not less than 6.5% of each payment | ||||||
26 | of salary combined with the employee contributions provided for |
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1 | in subsection (b) of Section 8-137 and Section 8-182 of this | ||||||
2 | Article; or (ii) the aggregate employee contribution | ||||||
3 | consisting of 9.5% of each payment of salary combined with the | ||||||
4 | employee contributions provided for in subsection (b) of | ||||||
5 | Section 8-137 and Section 8-182 of this Article. | ||||||
6 | For the one-year period beginning Beginning with the first | ||||||
7 | pay period in January of each year on or after the date when | ||||||
8 | the funded ratio of the fund as determined in the annual | ||||||
9 | actuarial valuation is first determined to have reached the 90% | ||||||
10 | funding goal, and each subsequent one-year pay period | ||||||
11 | thereafter for as long as the fund maintains a funding ratio of | ||||||
12 | 75% or more, employee contributions for age and service annuity | ||||||
13 | for each employee subject to this subsection (a-10) shall be | ||||||
14 | 5.5% of each payment of salary. If the funding ratio falls | ||||||
15 | below 75%, then employee contributions for age and service | ||||||
16 | annuity for each employee subject to this subsection (a-10) | ||||||
17 | shall revert to the lesser of: (A) the total normal cost, | ||||||
18 | calculated using the entry age normal actuarial method, | ||||||
19 | projected for the prior that fiscal year for the benefits and | ||||||
20 | expenses of the plan of benefits applicable to those members | ||||||
21 | and participants who first become members or participants on or | ||||||
22 | after the effective date of this amendatory Act of the 100th | ||||||
23 | General Assembly and to those employees who made the election | ||||||
24 | under item (i) of subsection (d-10) of Section 1-160, but not | ||||||
25 | less than 6.5% of each payment of salary combined with the | ||||||
26 | employee contributions provided for in subsection (b) of |
| |||||||
| |||||||
1 | Section 8-137 and Section 8-182 of this Article; or (B) the | ||||||
2 | aggregate employee contribution consisting of 9.5% of each | ||||||
3 | payment of salary combined with the employee contributions | ||||||
4 | provided for in subsection (b) of Section 8-137 and Section | ||||||
5 | 8-182 of this Article. If the fund once again is determined to | ||||||
6 | have reached a funding ratio of 75%, the 5.5% of salary | ||||||
7 | contribution for age and service annuity shall resume. | ||||||
8 | If contributions are reduced to less than the aggregate | ||||||
9 | employee contribution described in item (ii) or item (B) of | ||||||
10 | this subsection (a-10) due to application of the normal cost | ||||||
11 | criterion, the employee contribution amount shall be | ||||||
12 | consistent for from July 1 of the fiscal year through June 30 | ||||||
13 | of that fiscal year. | ||||||
14 | Such deductions beginning on the effective date and prior | ||||||
15 | to July 1,
1947 shall be made for a future entrant while he is | ||||||
16 | in the service until
he attains age 65 and for a present | ||||||
17 | employee while he is in the service
until the amount so | ||||||
18 | deducted from his salary with the amount deducted
from his | ||||||
19 | salary or paid by him according to law to any municipal pension
| ||||||
20 | fund in force on the effective date with interest on both such | ||||||
21 | amounts
at 4% per annum equals the sum that would have been to | ||||||
22 | his credit from
sums deducted from his salary if deductions at | ||||||
23 | the rate herein stated
had been made during his entire service | ||||||
24 | until he attained age 65 with
interest at 4% per annum for the | ||||||
25 | period subsequent to his attainment of
age 65. Such deductions | ||||||
26 | beginning July 1, 1947 shall be made and
continued for |
| |||||||
| |||||||
1 | employees while in the service.
| ||||||
2 | (b) Concurrently with each employee contribution, the city | ||||||
3 | shall contribute beginning on the effective date and prior to | ||||||
4 | July 1, 1947, 5 3/4%; and beginning July 1, 1947 and prior to | ||||||
5 | July 1, 1953, 7%; and beginning July 1, 1953 and prior to July | ||||||
6 | 6, 2017, 6% of each payment of such salary until the employee | ||||||
7 | attains age 65. Beginning July 6, 2017, the Fund shall credit | ||||||
8 | sums equal to 6% of each payment of such salary for annuity | ||||||
9 | purposes. The amounts credited for annuity purposes shall not | ||||||
10 | be credited for refund purposes (Blank) .
| ||||||
11 | (c) Each employee contribution made prior to the date the | ||||||
12 | age and
service annuity for an employee is fixed and each | ||||||
13 | corresponding city
contribution shall be credited to the | ||||||
14 | employee and allocated to the
account of the employee for whose | ||||||
15 | benefit it is made.
| ||||||
16 | (d) Notwithstanding Section 1-103.1, the changes to this | ||||||
17 | Section made by this amendatory Act of the 100th General | ||||||
18 | Assembly apply regardless of whether the employee was in active | ||||||
19 | service on or after the effective date of this amendatory Act | ||||||
20 | of the 100th General Assembly. | ||||||
21 | (Source: P.A. 100-23, eff. 7-6-17.)
| ||||||
22 | (40 ILCS 5/11-170) (from Ch. 108 1/2, par. 11-170)
| ||||||
23 | Sec. 11-170. Contributions for age and service annuities | ||||||
24 | for present
employees, future entrants and re-entrants.
| ||||||
25 | (a) Beginning on the effective date and prior to July 1, |
| |||||||
| |||||||
1 | 1947, 3
1/4%; and beginning on July 1, 1947 and prior to July | ||||||
2 | 1, 1953, 5%; and
beginning July 1, 1953 and prior to January 1, | ||||||
3 | 1972, 6%; and beginning
January 1, 1972, 6 1/2% of each payment | ||||||
4 | of the salary of each present
employee, future entrant and | ||||||
5 | re-entrant, except as provided in subsection (a-5) and (a-10), | ||||||
6 | shall be contributed to the fund
as a deduction from salary for | ||||||
7 | age and service annuity. | ||||||
8 | (a-5) Except as provided in subsection (a-10), for an | ||||||
9 | employee who on or after January 1, 2011 and prior to the | ||||||
10 | effective date of this amendatory Act of the 100th General | ||||||
11 | Assembly first became a member or participant under this | ||||||
12 | Article and made the election under item (i) of subsection | ||||||
13 | (d-10) of Section 1-160: prior to the effective date of this | ||||||
14 | amendatory Act of the 100th General Assembly, 6.5%; and | ||||||
15 | beginning on the effective date of this amendatory Act of the | ||||||
16 | 100th General Assembly and prior to January 1, 2018, 7.5%; and | ||||||
17 | beginning January 1, 2018 and prior to January 1, 2019, 8.5%; | ||||||
18 | and beginning January 1, 2019 and thereafter, employee
| ||||||
19 | contributions for those employees who made the
election under | ||||||
20 | item (i) of subsection (d-10) of Section 1-160
shall be the | ||||||
21 | lesser of: (i) the total normal cost, calculated
using the | ||||||
22 | entry age normal actuarial method, projected for the prior that
| ||||||
23 | fiscal year for the benefits and expenses of the plan of
| ||||||
24 | benefits applicable to those members and participants who first | ||||||
25 | became members or participants on or after the effective date
| ||||||
26 | of this amendatory Act of the 100th General Assembly and to
|
| |||||||
| |||||||
1 | those employees who made the election under item (i) of
| ||||||
2 | subsection (d-10) of Section 1-160, but not less than 6.5% of
| ||||||
3 | each payment of salary combined with the employee contributions
| ||||||
4 | provided for in subsection (b) of Section 11-134.1 and Section
| ||||||
5 | 11-174 of this Article; or
(ii) the aggregate employee | ||||||
6 | contribution consisting of 9.5% of
each payment of salary | ||||||
7 | combined with the employee contributions
provided for in | ||||||
8 | subsection (b) of Section 11-134.1 and 11-174 of
this Article. | ||||||
9 | For the one-year period beginning Beginning with
the first | ||||||
10 | pay period in January of each year on or after the date when | ||||||
11 | the funded ratio
of the fund as determined in the annual | ||||||
12 | actuarial valuation is first determined to have reached the 90% | ||||||
13 | funding
goal, and each subsequent one-year pay period | ||||||
14 | thereafter for as long as the fund
maintains a funding ratio of | ||||||
15 | 75% or more, employee
contributions for age and service annuity | ||||||
16 | for those employees
who made the election under item (i) of | ||||||
17 | subsection (d-10) of
Section 1-160 shall be 5.5% of each | ||||||
18 | payment of salary. If the
funding ratio falls below 75%, then | ||||||
19 | employee contributions for age and service annuity for those | ||||||
20 | employees who made the
election under item (i) of subsection | ||||||
21 | (d-10) shall revert to the lesser of: (A) the total normal | ||||||
22 | cost, calculated
using the entry age normal actuarial method, | ||||||
23 | projected for the prior that
fiscal year for the benefits and | ||||||
24 | expenses of the plan of
benefits applicable to those members | ||||||
25 | and participants who first became members or participants on or | ||||||
26 | after the effective date
of this amendatory Act of the 100th |
| |||||||
| |||||||
1 | General Assembly and to
those employees who made the election | ||||||
2 | under item (i) of
subsection (d-10) of Section 1-160, but not | ||||||
3 | less than 6.5% of
each payment of salary combined with the | ||||||
4 | employee contributions
provided for in subsection (b) of | ||||||
5 | Section 11-134.1 and Section
11-174 of this Article; or
(B) the | ||||||
6 | aggregate employee contribution consisting of 9.5% of
each | ||||||
7 | payment of salary combined with the employee contributions
| ||||||
8 | provided for in subsection (b) of Section 11-134.1 and 11-174 | ||||||
9 | of
this Article. If the fund once again is determined to
have | ||||||
10 | reached a funding ratio of 75%, the 5.5% of
salary contribution | ||||||
11 | for age and service annuity shall resume.
An employee who made | ||||||
12 | the election under item (ii) of subsection
(d-10) of Section | ||||||
13 | 1-160 shall continue to have the
contributions for age and | ||||||
14 | service annuity determined under
subsection (a) of this | ||||||
15 | Section. | ||||||
16 | If contributions are reduced to less than the
aggregate | ||||||
17 | employee contribution described in item (ii) or item (B) of | ||||||
18 | this
subsection due to application of the normal cost | ||||||
19 | criterion,
the employee contribution amount shall be
| ||||||
20 | consistent for from July 1 of the fiscal year
through June 30 | ||||||
21 | of that fiscal year. | ||||||
22 | The normal cost, for the purposes of this subsection (a-5) | ||||||
23 | and subsection (a-10), shall be calculated by an independent | ||||||
24 | enrolled actuary mutually agreed upon by the fund and the City. | ||||||
25 | The fees and expenses of the independent actuary shall be the | ||||||
26 | responsibility of the City. For purposes of this subsection |
| |||||||
| |||||||
1 | (a-5), the fund and the City shall both be considered to be the | ||||||
2 | clients of the actuary, and the actuary shall utilize | ||||||
3 | participant data and actuarial standards to calculate the | ||||||
4 | normal cost. The fund shall provide information that the | ||||||
5 | actuary requests in order to calculate the applicable normal | ||||||
6 | cost. | ||||||
7 | (a-10) For each employee subject to subsection (c-5) of | ||||||
8 | Section 1-160 who on or after the effective date of this | ||||||
9 | amendatory Act of the 100th General Assembly first becomes a | ||||||
10 | member or participant under this Article , 9.5% of each payment | ||||||
11 | of salary shall be contributed to the fund as a deduction from | ||||||
12 | salary for age and service annuity. Beginning January 1, 2018
| ||||||
13 | and each year thereafter, employee contributions
for each | ||||||
14 | employee subject to this subsection (a-10) shall be
the lesser | ||||||
15 | of: (i) the total normal cost, calculated using the entry age | ||||||
16 | normal actuarial method, projected for the prior that
fiscal | ||||||
17 | year for the benefits and expenses of the plan of
benefits | ||||||
18 | applicable to those members and participants who first
become | ||||||
19 | members or participants on or after the effective date of this | ||||||
20 | amendatory Act of the 100th General Assembly and to
those | ||||||
21 | employees who made the election under item (i) of
subsection | ||||||
22 | (d-10) of Section 1-160, but not less than 6.5% of
each payment | ||||||
23 | of salary combined with the employee contributions
provided for | ||||||
24 | in subsection (b) of Section 11-134.1 and Section
11-174 of | ||||||
25 | this Article; or (ii) the aggregate
employee contribution | ||||||
26 | consisting of 9.5% of each payment of
salary combined with the |
| |||||||
| |||||||
1 | employee contributions provided for in
subsection (b) of | ||||||
2 | Section 11-134.1 and Section 11-174 of this
Article. | ||||||
3 | For the one-year period beginning Beginning with the first | ||||||
4 | pay period in January of each year on or after the date when | ||||||
5 | the funded ratio of the fund as determined in the annual | ||||||
6 | actuarial valuation is first determined to have reached the 90% | ||||||
7 | funding goal, and each subsequent one-year pay period | ||||||
8 | thereafter for as long as the fund maintains a funding ratio of | ||||||
9 | 75% or more, employee contributions for age and service annuity | ||||||
10 | for each employee subject to this subsection (a-10) shall be | ||||||
11 | 5.5% of each payment of salary. If the funding ratio falls | ||||||
12 | below 75%, then employee contributions for age and service | ||||||
13 | annuity for each employee subject to this subsection (a-10) | ||||||
14 | shall revert to the lesser of: (A) the total normal cost, | ||||||
15 | calculated using the entry age normal actuarial method, | ||||||
16 | projected for the prior that
fiscal year for the benefits and | ||||||
17 | expenses of the plan of
benefits applicable to those members | ||||||
18 | and participants who first
become members or participants on or | ||||||
19 | after the effective date of this amendatory Act of the 100th | ||||||
20 | General Assembly and to
those employees who made the election | ||||||
21 | under item (i) of
subsection (d-10) of Section 1-160, but not | ||||||
22 | less than 6.5% of
each payment of salary combined with the | ||||||
23 | employee contributions
provided for in subsection (b) of | ||||||
24 | Section 11-134.1 and Section
11-174 of this Article; or (B) the | ||||||
25 | aggregate
employee contribution consisting of 9.5% of each | ||||||
26 | payment of
salary combined with the employee contributions |
| |||||||
| |||||||
1 | provided for in
subsection (b) of Section 11-134.1 and Section | ||||||
2 | 11-174 of this
Article. If the fund once again is determined to | ||||||
3 | have reached a funding ratio of 75%, the 5.5% of salary | ||||||
4 | contribution for age and service annuity shall resume. | ||||||
5 | If contributions are reduced to less than the
aggregate | ||||||
6 | employee contribution described in item (ii) or item (B) of | ||||||
7 | this
subsection (a-10) due to application of the normal cost
| ||||||
8 | criterion, the employee contribution amount shall be | ||||||
9 | consistent for from July 1 of the fiscal year through June 30
| ||||||
10 | of that fiscal year. | ||||||
11 | Such deductions
beginning on the effective date and prior | ||||||
12 | to June 30, 1947, inclusive
shall be made for a future entrant | ||||||
13 | while he is in service until he
attains age 65, and for a | ||||||
14 | present employee while he is in service until
the amount so | ||||||
15 | deducted from his salary with interest at the rate of 4%
per | ||||||
16 | annum shall be equal to the sum which would have accumulated to | ||||||
17 | his
credit from sums deducted from his salary if deductions at | ||||||
18 | the rate
herein stated had been made during his entire service | ||||||
19 | until he attained
age 65 with interest at 4% per annum for the | ||||||
20 | period subsequent to his
attainment of age 65. Such deductions | ||||||
21 | beginning July 1, 1947 shall be
made and continued for | ||||||
22 | employees while in the service.
| ||||||
23 | (b) Concurrently with each employee contribution, the city | ||||||
24 | shall contribute beginning on the effective date and prior to | ||||||
25 | July 1, 1947, 5 3/4%; and beginning July 1, 1947 and prior to | ||||||
26 | July 1, 1953, 7%; and beginning July 1, 1953 and prior to July |
| |||||||
| |||||||
1 | 6, 2017, 6% of each payment of such salary until the employee | ||||||
2 | attains age 65. Beginning July 6, 2017, the Fund shall credit | ||||||
3 | sums equal to 6% of each payment of such salary for annuity | ||||||
4 | purposes. The amounts credited for annuity purposes shall not | ||||||
5 | be credited for refund purposes (Blank) .
| ||||||
6 | (c) Each employee contribution made prior to the date age | ||||||
7 | and
service annuity for an employee is fixed and each | ||||||
8 | corresponding city
contribution shall be allocated to the | ||||||
9 | account of and credited to the
employee for whose benefit it is | ||||||
10 | made.
| ||||||
11 | (d) Notwithstanding Section 1-103.1, the changes to this | ||||||
12 | Section made by this amendatory Act of the 100th General | ||||||
13 | Assembly apply regardless of whether the employee was in active | ||||||
14 | service on or after the effective date of this amendatory Act. | ||||||
15 | (Source: P.A. 100-23, eff. 7-6-17.)
| ||||||
16 | (40 ILCS 5/11-197.7) | ||||||
17 | Sec. 11-197.7. Payment of annuity other than direct. The | ||||||
18 | board, at the written direction and request of any annuitant, | ||||||
19 | may, solely as an accommodation to such annuitant, pay the | ||||||
20 | annuity due him or her to a bank, savings and loan association, | ||||||
21 | or any other financial institution insured by an agency of the | ||||||
22 | federal government, for deposit to his or her account, or to a | ||||||
23 | bank or trust company for deposit in a trust established by him | ||||||
24 | or her for his benefit with such bank, savings and loan | ||||||
25 | association, or trust company, and such annuitant may withdraw |
| |||||||
| |||||||
1 | such direction at any time. An annuitant who directs the board | ||||||
2 | to pay the annuity due him or her to a financial institution | ||||||
3 | shall hold the board and the fund harmless from any claim or | ||||||
4 | loss related to any error as to whether the financial | ||||||
5 | institution is or continues to be federally insured. The board | ||||||
6 | may also, in the case of any disability beneficiary or | ||||||
7 | annuitant for whom no estate guardian has been appointed and | ||||||
8 | who is confined in a publicly owned and operated mental | ||||||
9 | institution, pay such disability benefit or annuity due such | ||||||
10 | person to the superintendent or other head of such institution | ||||||
11 | or hospital for deposit to such person's trust fund account | ||||||
12 | maintained for him or her by such institution or hospital, if | ||||||
13 | by law such trust fund accounts are authorized or recognized.
| ||||||
14 | (Source: P.A. 100-23, eff. 7-6-17.)
| ||||||
15 | Section 99. Effective date. This Act takes effect upon | ||||||
16 | becoming law.".
|