Bill Text: IL HB1471 | 2011-2012 | 97th General Assembly | Engrossed

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Bill Title: Amends the IMRF Article of the Illinois Pension Code. Makes changes in the way the annuity reserve is calculated if a retiring employee has accumulated service in more than one participating municipality or participating instrumentality. Amends the State Mandates Act to require implementation without reimbursement. Effective January 1, 2012.

Spectrum: Slight Partisan Bill (Democrat 6-2)

Status: (Passed) 2011-08-12 - Public Act . . . . . . . . . 97-0319 [HB1471 Detail]

Download: Illinois-2011-HB1471-Engrossed.html

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HB1471 Engrossed LRB097 05390 JDS 45447 b
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
Section 7-205 as follows:
(40 ILCS 5/7-205) (from Ch. 108 1/2, par. 7-205)
Sec. 7-205. Reserves for annuities. Appropriate reserves
shall be created for payment of all annuities granted under
this Article at the time such annuities are granted and in
amounts determined to be necessary under actuarial tables
adopted by the Board upon recommendation of the actuary of the
fund. All annuities payable shall be charged to the annuity
reserve.
1. Amounts credited to annuity reserves shall be derived by
transfer of all the employee credits from the appropriate
employee reserves and by charges to the municipality reserve of
those municipalities in which the retiring employee has
accumulated service. If a retiring employee has accumulated
service in more than one participating municipality or
participating instrumentality, the aggregate municipality
charges for non-concurrent service shall be calculated as
follows:
(A) for purposes of calculating the annuity reserve, an

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annuity will be calculated based on service and adjusted
earnings with each employer (without regard to the vesting
requirement contained in subsection (a) of Section 7-142);
and
(B) the difference between the municipality charges
for the actual annuity granted and the aggregation of the
municipality charges based upon the ratio of each from
those calculations to the aggregated total from paragraph
(A) of this item 1.
Aggregate municipality charges for concurrent service
shall be prorated based on the employee's earnings. The
municipality charges for retirement annuities calculated under
subparagraph a. of subparagraph 1. of subsection (a) of Section
7-142 shall be prorated based on actual contributions prorated
on a basis of the employee's earnings in case of concurrent
service and creditable service in other cases.
2. Supplemental annuities shall be handled as a separate
annuity and amounts to be credited to the annuity reserve
therefor shall be derived in the same manner as a regular
annuity.
3. When a retirement annuity is granted to an employee with
a spouse eligible for a surviving spouse annuity, there shall
be credited to the annuity reserve an amount to fund the cost
of both the retirement and surviving spouse annuity as a joint
and survivors annuity.
4. Beginning January 1, 1989, when a retirement annuity is

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awarded, an amount equal to the present value of the $3,000
death benefit payable upon the death of the annuitant shall be
transferred to the annuity reserve from the appropriate
municipality reserves in the same manner as the transfer for
annuities.
5. All annuity reserves shall be revalued annually as of
December 31. Beginning as of December 31, 1973, adjustment
required therein by such revaluation shall be charged or
credited to the earnings and experience variation reserve.
6. There shall be credited to the annuity reserve all of
the payments made by annuitants under Section 7-144.2, plus an
additional amount from the earnings and experience variation
reserve to fund the cost of the incremental annuities granted
to annuitants making these payments.
7. As of December 31, 1972, the excess in the annuity
reserve shall be transferred to the municipality reserves. An
amount equal to the deficiency in the reserve of participating
municipalities and participating instrumentalities which have
no participating employees shall be allocated to their
reserves. The remainder shall be allocated in amounts
proportionate to the present value, as of January 1, 1972, of
annuities of annuitants of the remaining participating
municipalities and participating instrumentalities.
(Source: P.A. 89-136, eff. 7-14-95.)
Section 90. The State Mandates Act is amended by adding

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Section 8.35 as follows:
(30 ILCS 805/8.35 new)
Sec. 8.35. 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 97th General Assembly.
Section 99. Effective date. This Act takes effect January
1, 2012.