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| Public Act 098-0218
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| HB1444 Enrolled | LRB098 03983 JDS 34003 b |
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AN ACT concerning public employee benefits.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Illinois Pension Code is amended by changing |
Sections 7-135, 7-146, 7-172, 7-173, and 7-177 as follows:
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(40 ILCS 5/7-135) (from Ch. 108 1/2, par. 7-135)
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Sec. 7-135. Authorized agents.
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(a) Each participating municipality and participating
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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.
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(b) The authorized agent shall have the following powers |
and duties:
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1. To certify to the fund whether or not a given person |
is
authorized to participate in the fund;
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2. To certify to the fund when a participating employee |
is on a
leave of absence authorized by the municipality;
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3. To request the proper officer to cause employee |
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contributions to
be withheld from earnings and transmitted |
to the fund;
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4. To request the proper officer to cause municipality |
contributions
to be forwarded to the fund promptly;
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5. To forward promptly to all participating employees |
any
communications from the fund for such employees;
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6. To forward promptly to the fund all applications, |
claims, reports
and other communications delivered to him |
by participating employees;
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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.
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(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:
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1. To file a petition for nomination of an executive |
trustee of the
fund.
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2. To cast the ballot for election of an executive |
trustee of the
fund.
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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.
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(d) The delivery of any communication or document by an |
employee or
a participating municipality or participating |
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instrumentality to its
authorized agent shall not constitute |
delivery to the fund.
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(Source: P.A. 97-328, eff. 8-12-11; 97-609, eff. 1-1-12.)
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(40 ILCS 5/7-146) (from Ch. 108 1/2, par. 7-146)
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Sec. 7-146. Temporary disability benefits - Eligibility. |
Temporary
disability benefits shall be payable to |
participating employees as
hereinafter provided.
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(a) The participating employee shall be considered |
temporarily
disabled if:
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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;
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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).
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(b) A temporary disability benefit shall be payable to a |
temporarily
disabled employee provided:
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1. He:
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(i) has at least one year of service immediately |
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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
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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
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(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
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the temporary disability was incurred and was not paid |
a separation benefit; or
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(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.
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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
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incurred until the effective date of this amendatory Act of |
1987.
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Periods of qualified leave granted in compliance with |
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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.
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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.
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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.
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4. He has not refused to submit to a reasonable |
physical examination
by a physician appointed by the Board.
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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.
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6. He is not separated from the service of the |
participating
municipality or instrumentality thereof or |
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participating instrumentality
which employed him on the |
date his temporary disability was incurred;
for the |
purposes of payment of temporary disability benefits, a
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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.
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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.)
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(40 ILCS 5/7-172) (from Ch. 108 1/2, par. 7-172)
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Sec. 7-172. Contributions by participating municipalities |
and
participating instrumentalities.
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(a) Each participating municipality and each participating
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instrumentality shall make payment to the fund as follows:
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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;
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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;
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3. all accounts receivable, together with interest |
charged thereon,
as provided in Section 7-209;
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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).
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(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 |
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the sum of the following percentages:
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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
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payable under Sections 7-158 and 7-164, such percentage to |
be known as the
normal cost rate.
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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,
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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.
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3. The percentage of earnings of the participating |
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employees of all
municipalities and participating |
instrumentalities necessary to provide
the present value |
of all temporary and total and permanent disability
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benefits granted during the most recent year for which |
information is
available.
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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
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Section 7-206 during the year for which this rate is fixed.
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5. The percentage of earnings necessary to meet any |
deficiency
arising in the Terminated Municipality Reserve.
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(c) A separate municipality contribution rate shall be |
computed for
each participating municipality or participating |
instrumentality
for its sheriff's law enforcement employees.
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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%.
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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 |
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municipality's contribution rate so as to make up
that |
deficiency over such reasonable period of time as the Board may |
determine.
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(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
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provide that, in lieu of a separate municipality rate for these
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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
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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
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rate for program participants or the refund of a portion of the
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municipality contributions, as the case may be, may be |
considered.
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(e) Computations of municipality contribution rates for |
the
following calendar year shall be made prior to the |
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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.
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(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
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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.
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(g) Municipality contributions for the several purposes |
specified
shall, for township treasurers and employees in the |
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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
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school funds handled by the treasurer.
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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.
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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
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available, a separate rate shall be established as provided in |
subparagraph
(i) of this Section.
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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
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subparagraph (i) of this Section.
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(h) Each participating municipality and participating
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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
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reserve for the municipality or participating instrumentality.
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(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.
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(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 |
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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.
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(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 |
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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 |
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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.)
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(40 ILCS 5/7-173) (from Ch. 108 1/2, par. 7-173)
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Sec. 7-173. Contributions by employees.
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(a) Each participating employee shall make contributions |
to the fund as
follows:
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1. For retirement annuity purposes, normal |
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contributions of 3 3/4%
of earnings.
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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.
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3. Survivor contributions, by each participating |
employee, of 3/4%
of each payment of earnings.
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(b) (Blank).
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(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
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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
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provided in the School Code and remitted to the board.
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(d) An employee who has made additional contributions under
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paragraph (a)2 of this Section may upon retirement or at any |
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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.
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(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
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participation.
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(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
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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.
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(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.)
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(40 ILCS 5/7-177) (from Ch. 108 1/2, par. 7-177)
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Sec. 7-177. Board meetings.
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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
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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.
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(Source: Laws 1963, p. 161.)
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Section 90. The State Mandates Act is amended by adding |
Section 8.37 as follows:
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(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.
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Section 99. Effective date. This Act takes effect upon |
becoming law.
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