Bill Text: IL SB0014 | 2017-2018 | 100th General Assembly | Engrossed


Bill Title: Amends the Chicago Municipal and Chicago Laborers Articles of the Illinois Pension Code. Makes changes to the retirement age for persons who first become participants on or after the effective date of the amendatory Act. Increases employee contribution for persons who first become participants on or after the effective date of the amendatory Act and makes other changes to the employee contribution rate. Provides that a person who first became a participant on or after January 1, 2011 and before the effective date may elect to be eligible for a reduced retirement age in exchange for an increase in employee contributions. Makes changes to the city's required contribution to each fund beginning in payment year 2018 and makes changes to provisions concerning employer contributions. Authorizes withholding from State grants in the case of nonpayment of the city's required contributions. Makes changes to provisions concerning felony forfeiture. Provides that if there is an injury or death for which death or disability benefits are payable, the fund may subrogate a claim made by that employee against a third party. In the Chicago Municipal Article, makes changes to the definition of "employee" and provides that a person who first becomes a city officer on or after the effective date of the amendatory Act shall not be eligible for the alternative annuity or alternative disability benefits. Makes other changes. Contains inseverability and severability provisions. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Engrossed) 2017-04-25 - State Mandates Fiscal Note Filed [SB0014 Detail]

Download: Illinois-2017-SB0014-Engrossed.html



SB0014 EngrossedLRB100 06410 RPS 16449 b
1 AN ACT concerning public employee benefits.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The Illinois Pension Code is amended by changing
5Sections 1-160, 8-113, 8-173, 8-174, 8-243.2, 8-244, 8-244.1,
68-251, 11-169, 11-170, 11-223.1, and 11-230 and by adding
7Sections 8-228.5, 11-125.9, and 11-197.7 as follows:
8 (40 ILCS 5/1-160)
9 (Text of Section WITHOUT the changes made by P.A. 98-641,
10which has been held unconstitutional)
11 Sec. 1-160. Provisions applicable to new hires.
12 (a) The provisions of this Section apply to a person who,
13on or after January 1, 2011, first becomes a member or a
14participant under any reciprocal retirement system or pension
15fund established under this Code, other than a retirement
16system or pension fund established under Article 2, 3, 4, 5, 6,
1715 or 18 of this Code, notwithstanding any other provision of
18this Code to the contrary, but do not apply to any self-managed
19plan established under this Code, to any person with respect to
20service as a sheriff's law enforcement employee under Article
217, or to any participant of the retirement plan established
22under Section 22-101. Notwithstanding anything to the contrary
23in this Section, for purposes of this Section, a person who

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1participated in a retirement system under Article 15 prior to
2January 1, 2011 shall be deemed a person who first became a
3member or participant prior to January 1, 2011 under any
4retirement system or pension fund subject to this Section. The
5changes made to this Section by Public Act 98-596 this
6amendatory Act of the 98th General Assembly are a clarification
7of existing law and are intended to be retroactive to January
81, 2011 (the effective date of Public Act 96-889),
9notwithstanding the provisions of Section 1-103.1 of this Code.
10 (b) "Final average salary" means the average monthly (or
11annual) salary obtained by dividing the total salary or
12earnings calculated under the Article applicable to the member
13or participant during the 96 consecutive months (or 8
14consecutive years) of service within the last 120 months (or 10
15years) of service in which the total salary or earnings
16calculated under the applicable Article was the highest by the
17number of months (or years) of service in that period. For the
18purposes of a person who first becomes a member or participant
19of any retirement system or pension fund to which this Section
20applies on or after January 1, 2011, in this Code, "final
21average 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
8this Code (including without limitation the calculation of
9benefits and employee contributions), the annual earnings,
10salary, or wages (based on the plan year) of a member or
11participant to whom this Section applies shall not exceed
12$106,800; however, that amount shall annually thereafter be
13increased by the lesser of (i) 3% of that amount, including all
14previous adjustments, or (ii) one-half the annual unadjusted
15percentage increase (but not less than zero) in the consumer
16price index-u for the 12 months ending with the September
17preceding each November 1, including all previous adjustments.
18 For the purposes of this Section, "consumer price index-u"
19means the index published by the Bureau of Labor Statistics of
20the United States Department of Labor that measures the average
21change in prices of goods and services purchased by all urban
22consumers, United States city average, all items, 1982-84 =
23100. The new amount resulting from each annual adjustment shall
24be determined by the Public Pension Division of the Department
25of Insurance and made available to the boards of the retirement
26systems and pension funds by November 1 of each year.

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1 (c) A member or participant is entitled to a retirement
2annuity upon written application if he or she has attained age
367 (beginning January 1, 2015, age 65 with respect to service
4under Article 12 of this Code that is subject to this Section)
5and has at least 10 years of service credit and is otherwise
6eligible under the requirements of the applicable Article.
7 A member or participant who has attained age 62 (beginning
8January 1, 2015, age 60 with respect to service under Article
912 of this Code that is subject to this Section) and has at
10least 10 years of service credit and is otherwise eligible
11under the requirements of the applicable Article may elect to
12receive the lower retirement annuity provided in subsection (d)
13of this Section.
14 (c-5) A person who first becomes a member or a participant
15under Article 8 or Article 11 of this Code on or after the
16effective date of this amendatory Act of the 100th General
17Assembly, notwithstanding any other provision of this Code to
18the contrary, is entitled to a retirement annuity upon written
19application if he or she has attained age 65 and has at least
2010 years of service credit under Article 8 or Article 11 of
21this Code and is otherwise eligible under the requirements of
22Article 8 or Article 11 of this Code, whichever is applicable.
23 (d) The retirement annuity of a member or participant who
24is retiring after attaining age 62 (beginning January 1, 2015,
25age 60 with respect to service under Article 12 of this Code
26that is subject to this Section) with at least 10 years of

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1service credit shall be reduced by one-half of 1% for each full
2month that the member's age is under age 67 (beginning January
31, 2015, age 65 with respect to service under Article 12 of
4this Code that is subject to this Section).
5 (d-5) The retirement annuity of a person who first becomes
6a member or a participant under Article 8 or Article 11 of this
7Code on or after the effective date of this amendatory Act of
8the 100th General Assembly who is retiring at age 60 with at
9least 10 years of service credit under Article 8 or Article 11
10shall be reduced by one-half of 1% for each full month that the
11member's age is under age 65.
12 (d-10) Each person who first became a member or participant
13under Article 8 or Article 11 of this Code on or after January
141, 2011 and prior to the effective date of this amendatory Act
15of the 100th General Assembly shall make an irrevocable
16election either:
17 (i) to be eligible for the reduced retirement age
18 provided in subsections (c-5) and (d-5) of this Section,
19 the eligibility for which is conditioned upon the member or
20 participant agreeing to the increases in employee
21 contributions for age and service annuities provided in
22 subsection (a-5) of Section 8-174 of this Code (for service
23 under Article 8) or subsection (a-5) of Section 11-170 of
24 this Code (for service under Article 11); or
25 (ii) to not agree to item (i) of this subsection
26 (d-10), in which case the member or participant shall

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1 continue to be subject to the retirement age provisions in
2 subsections (c) and (d) of this Section and the employee
3 contributions for age and service annuity as provided in
4 subsection (a) of Section 8-174 of this Code (for service
5 under Article 8) or subsection (a) of Section 11-170 of
6 this Code (for service under Article 11).
7 The election provided for in this subsection shall be made
8between June 1, 2017 and July 15, 2017. A person subject to
9this subsection who makes the required election shall remain
10bound by that election. A person subject to this subsection who
11fails for any reason to make the required election within the
12time specified in this subsection shall be deemed to have made
13the election under item (ii).
14 (e) Any retirement annuity or supplemental annuity shall be
15subject to annual increases on the January 1 occurring either
16on or after the attainment of age 67 (beginning January 1,
172015, age 65 with respect to service under Article 12 of this
18Code that is subject to this Section and beginning on the
19effective date of this amendatory Act of the 100th General
20Assembly, age 65 with respect to persons who: (i) first became
21members or participants under Article 8 or Article 11 of this
22Code on or after the effective date of this amendatory Act of
23the 100th General Assembly; or (ii) first became members or
24participants under Article 8 or Article 11 of this Code on or
25after January 1, 2011 and before the effective date of this
26amendatory Act of the 100th General Assembly and made the

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1election under item (i) of subsection (d-10) of this Section)
2or the first anniversary of the annuity start date, whichever
3is later. Each annual increase shall be calculated at 3% or
4one-half the annual unadjusted percentage increase (but not
5less than zero) in the consumer price index-u for the 12 months
6ending with the September preceding each November 1, whichever
7is less, of the originally granted retirement annuity. If the
8annual unadjusted percentage change in the consumer price
9index-u for the 12 months ending with the September preceding
10each November 1 is zero or there is a decrease, then the
11annuity shall not be increased.
12 Notwithstanding Section 1-103.1 of this Code, the changes
13made to this Section by this amendatory Act of the 100th
14General Assembly are applicable without regard to whether the
15employee was in active service on or after the effective date
16of this amendatory Act of the 100th General Assembly.
17 (f) The initial survivor's or widow's annuity of an
18otherwise eligible survivor or widow of a retired member or
19participant who first became a member or participant on or
20after January 1, 2011 shall be in the amount of 66 2/3% of the
21retired member's or participant's retirement annuity at the
22date of death. In the case of the death of a member or
23participant who has not retired and who first became a member
24or participant on or after January 1, 2011, eligibility for a
25survivor's or widow's annuity shall be determined by the
26applicable Article of this Code. The initial benefit shall be

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166 2/3% of the earned annuity without a reduction due to age. A
2child's annuity of an otherwise eligible child shall be in the
3amount prescribed under each Article if applicable. Any
4survivor's or widow's annuity shall be increased (1) on each
5January 1 occurring on or after the commencement of the annuity
6if the deceased member died while receiving a retirement
7annuity or (2) in other cases, on each January 1 occurring
8after the first anniversary of the commencement of the annuity.
9Each annual increase shall be calculated at 3% or one-half the
10annual unadjusted percentage increase (but not less than zero)
11in the consumer price index-u for the 12 months ending with the
12September preceding each November 1, whichever is less, of the
13originally granted survivor's annuity. If the annual
14unadjusted percentage change in the consumer price index-u for
15the 12 months ending with the September preceding each November
161 is zero or there is a decrease, then the annuity shall not be
17increased.
18 (g) The benefits in Section 14-110 apply only if the person
19is a State policeman, a fire fighter in the fire protection
20service of a department, or a security employee of the
21Department of Corrections or the Department of Juvenile
22Justice, as those terms are defined in subsection (b) of
23Section 14-110. A person who meets the requirements of this
24Section is entitled to an annuity calculated under the
25provisions of Section 14-110, in lieu of the regular or minimum
26retirement annuity, only if the person has withdrawn from

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1service with not less than 20 years of eligible creditable
2service and has attained age 60, regardless of whether the
3attainment of age 60 occurs while the person is still in
4service.
5 (h) If a person who first becomes a member or a participant
6of a retirement system or pension fund subject to this Section
7on or after January 1, 2011 is receiving a retirement annuity
8or retirement pension under that system or fund and becomes a
9member or participant under any other system or fund created by
10this Code and is employed on a full-time basis, except for
11those members or participants exempted from the provisions of
12this Section under subsection (a) of this Section, then the
13person's retirement annuity or retirement pension under that
14system or fund shall be suspended during that employment. Upon
15termination of that employment, the person's retirement
16annuity or retirement pension payments shall resume and be
17recalculated if recalculation is provided for under the
18applicable Article of this Code.
19 If a person who first becomes a member of a retirement
20system or pension fund subject to this Section on or after
21January 1, 2012 and is receiving a retirement annuity or
22retirement pension under that system or fund and accepts on a
23contractual basis a position to provide services to a
24governmental entity from which he or she has retired, then that
25person's annuity or retirement pension earned as an active
26employee of the employer shall be suspended during that

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1contractual service. A person receiving an annuity or
2retirement pension under this Code shall notify the pension
3fund or retirement system from which he or she is receiving an
4annuity or retirement pension, as well as his or her
5contractual employer, of his or her retirement status before
6accepting contractual employment. A person who fails to submit
7such notification shall be guilty of a Class A misdemeanor and
8required to pay a fine of $1,000. Upon termination of that
9contractual employment, the person's retirement annuity or
10retirement pension payments shall resume and, if appropriate,
11be recalculated under the applicable provisions of this Code.
12 (i) (Blank).
13 (j) In the case of a conflict between the provisions of
14this Section and any other provision of this Code, the
15provisions of this Section shall control.
16(Source: P.A. 97-609, eff. 1-1-12; 98-92, eff. 7-16-13; 98-596,
17eff. 11-19-13; 98-622, eff. 6-1-14; revised 3-24-16.)
18 (40 ILCS 5/8-113) (from Ch. 108 1/2, par. 8-113)
19 Sec. 8-113. Municipal employee, employee, contributor, or
20participant. "Municipal employee", "employee", "contributor",
21or "participant":
22 (a) Any employee of an employer employed in the classified
23civil service thereof other than by temporary appointment or in
24a position excluded or exempt from the classified service by
25the Civil Service Act, or in the case of a city operating under

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1a personnel ordinance, any employee of an employer employed in
2the classified or career service under the provisions of a
3personnel ordinance, other than in a provisional or exempt
4position as specified in such ordinance or in rules and
5regulations formulated thereunder.
6 (b) Any employee in the service of an employer before the
7Civil Service Act came in effect for the employer.
8 (c) Any person employed by the board.
9 (d) Any person employed after December 31, 1949, but prior
10to January 1, 1984, in the service of the employer by temporary
11appointment or in a position exempt from the classified service
12as set forth in the Civil Service Act, or in a provisional or
13exempt position as specified in the personnel ordinance, who
14meets the following qualifications:
15 (1) has rendered service during not less than 12
16 calendar months to an employer as an employee, officer, or
17 official, 4 months of which must have been consecutive full
18 normal working months of service rendered immediately
19 prior to filing application to be included; and
20 (2) files written application with the board, while in
21 the service, to be included hereunder.
22 (e) After December 31, 1949, any alderman or other officer
23or official of the employer, who files, while in office,
24written application with the board to be included hereunder.
25 (f) Beginning January 1, 1984, any person employed by an
26employer other than the Chicago Housing Authority or the Public

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1Building Commission of the city, whether or not such person is
2serving by temporary appointment or in a position exempt from
3the classified service as set forth in the Civil Service Act,
4or in a provisional or exempt position as specified in the
5personnel ordinance, provided that such person is neither (1)
6an alderman or other officer or official of the employer, nor
7(2) participating, on the basis of such employment, in any
8other pension fund or retirement system established under this
9Act.
10 (g) After December 31, 1959, any person employed in the law
11department of the city, or municipal court or Board of Election
12Commissioners of the city, who was a contributor and
13participant, on December 31, 1959, in the annuity and benefit
14fund in operation in the city on said date, by virtue of the
15Court and Law Department Employees' Annuity Act or the Board of
16Election Commissioners Employees' Annuity Act.
17 After December 31, 1959, the foregoing definition includes
18any other person employed or to be employed in the law
19department, or municipal court (other than as a judge), or
20Board of Election Commissioners (if his salary is provided by
21appropriation of the city council of the city and his salary
22paid by the city) -- subject, however, in the case of such
23persons not participants on December 31, 1959, to compliance
24with the same qualifications and restrictions otherwise set
25forth in this Section and made generally applicable to
26employees or officers of the city concerning eligibility for

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1participation or membership.
2 Notwithstanding any other provision in this Section, any
3person who first becomes employed in the law department of the
4city on or after the effective date of this amendatory Act of
5the 100th General Assembly shall be included within the
6foregoing definition, effective upon the date the person first
7becomes so employed, regardless of the nature of the
8appointment the person holds under the provisions of a
9personnel ordinance.
10 (h) After December 31, 1965, any person employed in the
11public library of the city -- and any other person -- who was a
12contributor and participant, on December 31, 1965, in the
13pension fund in operation in the city on said date, by virtue
14of the Public Library Employees' Pension Act.
15 (i) After December 31, 1968, any person employed in the
16house of correction of the city, who was a contributor and
17participant, on December 31, 1968, in the pension fund in
18operation in the city on said date, by virtue of the House of
19Correction Employees' Pension Act.
20 (j) Any person employed full-time on or after the effective
21date of this amendatory Act of the 92nd General Assembly by the
22Chicago Housing Authority who has elected to participate in
23this Fund as provided in subsection (a) of Section 8-230.9.
24 (k) Any person employed full-time by the Public Building
25Commission of the city who has elected to participate in this
26Fund as provided in subsection (d) of Section 8-230.7.

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1(Source: P.A. 92-599, eff. 6-28-02.)
2 (40 ILCS 5/8-173) (from Ch. 108 1/2, par. 8-173)
3 (Text of Section WITHOUT the changes made by P.A. 98-641,
4which has been held unconstitutional)
5 Sec. 8-173. Financing; tax levy.
6 (a) Except as provided in subsection (f) of this Section,
7the city council of the city shall levy a tax annually upon all
8taxable property in the city at a rate that will produce a sum
9which, when added to the amounts deducted from the salaries of
10the employees or otherwise contributed by them and the amounts
11deposited under subsection (f), will be sufficient for the
12requirements of this Article, but which when extended will
13produce an amount not to exceed the greater of the following:
14(a) the sum obtained by the levy of a tax of .1093% of the
15value, as equalized or assessed by the Department of Revenue,
16of all taxable property within such city, or (b) the sum of
17$12,000,000. However any city in which a Fund has been
18established and in operation under this Article for more than 3
19years prior to 1970 shall levy for the year 1970 a tax at a rate
20on the dollar of assessed valuation of all taxable property
21that will produce, when extended, an amount not to exceed 1.2
22times the total amount of contributions made by employees to
23the Fund for annuity purposes in the calendar year 1968, and,
24for the year 1971 and 1972 such levy that will produce, when
25extended, an amount not to exceed 1.3 times the total amount of

SB0014 Engrossed- 15 -LRB100 06410 RPS 16449 b
1contributions made by employees to the Fund for annuity
2purposes in the calendar years 1969 and 1970, respectively; and
3for the year 1973 an amount not to exceed 1.365 times such
4total amount of contributions made by employees for annuity
5purposes in the calendar year 1971; and for the year 1974 an
6amount not to exceed 1.430 times such total amount of
7contributions made by employees for annuity purposes in the
8calendar year 1972; and for the year 1975 an amount not to
9exceed 1.495 times such total amount of contributions made by
10employees for annuity purposes in the calendar year 1973; and
11for the year 1976 an amount not to exceed 1.560 times such
12total amount of contributions made by employees for annuity
13purposes in the calendar year 1974; and for the year 1977 an
14amount not to exceed 1.625 times such total amount of
15contributions made by employees for annuity purposes in the
16calendar year 1975; and for the year 1978 and each year
17thereafter through levy year 2016, such levy as will produce,
18when extended, an amount not to exceed the total amount of
19contributions made by or on behalf of employees to the Fund for
20annuity purposes in the calendar year 2 years prior to the year
21for which the annual applicable tax is levied, multiplied by
221.690 for the years 1978 through 1998 and by 1.250 for the year
231999 and for each year thereafter through levy year 2016.
24Beginning in levy year 2017, and in each year thereafter, the
25levy shall not exceed the amount of the city's total required
26contribution to the Fund for the next payment year, as

SB0014 Engrossed- 16 -LRB100 06410 RPS 16449 b
1determined under subsection (a-5). For the purposes of this
2Section, the payment year is the year immediately following the
3levy year.
4 The tax shall be levied and collected in like manner with
5the general taxes of the city, and shall be exclusive of and in
6addition to the amount of tax the city is now or may hereafter
7be authorized to levy for general purposes under any laws which
8may limit the amount of tax which the city may levy for general
9purposes. The county clerk of the county in which the city is
10located, in reducing tax levies under the provisions of any Act
11concerning the levy and extension of taxes, shall not consider
12the tax herein provided for as a part of the general tax levy
13for city purposes, and shall not include the same within any
14limitation of the percent of the assessed valuation upon which
15taxes are required to be extended for such city.
16 Revenues derived from such tax shall be paid to the city
17treasurer of the city as collected and held by the city
18treasurer him for the benefit of the fund.
19 If the payments on account of taxes are insufficient during
20any year to meet the requirements of this Article, the city may
21issue tax anticipation warrants against the current tax levy.
22 The city may continue to use other lawfully available funds
23in lieu of all or part of the levy, as provided under
24subsection (f) of this Section.
25 (a-5) (1) Beginning in payment year 2018, the city's
26required annual contribution to the Fund for payment years 2018

SB0014 Engrossed- 17 -LRB100 06410 RPS 16449 b
1through 2022 shall be: for 2018, $266,000,000; for 2019,
2$344,000,000; for 2020, $421,000,000; for 2021, $499,000,000;
3and for 2022, $576,000,000.
4 (2) For payment years 2023 through 2058, the city's
5required annual contribution to the Fund shall be the amount
6determined by the Fund to be equal to the sum of (i) the city's
7portion of the projected normal cost for that fiscal year, plus
8(ii) an amount determined on a level percentage of applicable
9employee payroll basis (reflecting any limits on individual
10participants' pay that apply for benefit and contribution
11purposes under this plan) that is sufficient to bring the total
12actuarial assets of the Fund up to 90% of the total actuarial
13liabilities of the Fund by the end of 2058.
14 (3) For payment years after 2058, the city's required
15annual contribution to the Fund shall be equal to the amount,
16if any, needed to bring the total actuarial assets of the Fund
17up to 90% of the total actuarial liabilities of the Fund as of
18the end of the year. In making the determinations under
19paragraphs (2) and (3) of this subsection, the actuarial
20calculations shall be determined under the entry age normal
21actuarial cost method, and any actuarial gains or losses from
22investment return incurred in a fiscal year shall be recognized
23in equal annual amounts over the 5-year period following the
24fiscal year.
25 To the extent that the city's contribution for any of the
26payment years referenced in this subsection is made with

SB0014 Engrossed- 18 -LRB100 06410 RPS 16449 b
1property taxes, those property taxes shall be levied,
2collected, and paid to the Fund in a like manner with the
3general taxes of the city.
4 (a-10) If the city fails to transmit to the Fund
5contributions required of it under this Article by December 31
6of the year in which such contributions are due, the Fund may,
7after giving notice to the city, certify to the State
8Comptroller the amounts of the delinquent payments, and the
9Comptroller must, beginning in payment year 2018, deduct and
10deposit into the Fund the certified amounts or a portion of
11those amounts from the following proportions of grants of State
12funds to the city:
13 (1) in payment year 2018, one-third of the total amount
14 of any grants of State funds to the city;
15 (2) in payment year 2019, two-thirds of the total
16 amount of any grants of State funds to the city; and
17 (3) in payment year 2020 and each payment year
18 thereafter, the total amount of any grants of State funds
19 to the city.
20 The State Comptroller may not deduct from any grants of
21State funds to the city more than the amount of delinquent
22payments certified to the State Comptroller by the Fund.
23 (b) On or before July 1, 2017, and each July 1 thereafter
24January 10, annually, the board shall certify to notify the
25city council the annual amounts required under of the
26requirements of this Article, for which that the tax herein

SB0014 Engrossed- 19 -LRB100 06410 RPS 16449 b
1provided shall be levied for the following that current year.
2The board shall compute the amounts necessary to be credited to
3the reserves established and maintained as herein provided, and
4shall make an annual determination of the amount of the
5required city contributions, and certify the results thereof to
6the city council.
7 (c) In respect to employees of the city who are transferred
8to the employment of a park district by virtue of the "Exchange
9of Functions Act of 1957", the corporate authorities of the
10park district shall annually levy a tax upon all the taxable
11property in the park district at such rate per cent of the
12value of such property, as equalized or assessed by the
13Department of Revenue, as shall be sufficient, when added to
14the amounts deducted from their salaries and otherwise
15contributed by them to provide the benefits to which they and
16their dependents and beneficiaries are entitled under this
17Article. The city shall not levy a tax hereunder in respect to
18such employees.
19 The tax so levied by the park district shall be in addition
20to and exclusive of all other taxes authorized to be levied by
21the park district for corporate, annuity fund, or other
22purposes. The county clerk of the county in which the park
23district is located, in reducing any tax levied under the
24provisions of any act concerning the levy and extension of
25taxes shall not consider such tax as part of the general tax
26levy for park purposes, and shall not include the same in any

SB0014 Engrossed- 20 -LRB100 06410 RPS 16449 b
1limitation of the per cent of the assessed valuation upon which
2taxes are required to be extended for the park district. The
3proceeds of the tax levied by the park district, upon receipt
4by the district, shall be immediately paid over to the city
5treasurer of the city for the uses and purposes of the fund.
6 The various sums to be contributed by the city and park
7district and allocated for the purposes of this Article, and
8any interest to be contributed by the city, shall be derived
9from the revenue from the taxes authorized in this Section or
10otherwise as expressly provided in this Section.
11 If it is not possible or practicable for the city to make
12contributions for age and service annuity and widow's annuity
13at the same time that employee contributions are made for such
14purposes, such city contributions shall be construed to be due
15and payable as of the end of the fiscal year for which the tax
16is levied and shall accrue thereafter with interest at the
17effective rate until paid.
18 (d) With respect to employees whose wages are funded as
19participants under the Comprehensive Employment and Training
20Act of 1973, as amended (P.L. 93-203, 87 Stat. 839, P.L.
2193-567, 88 Stat. 1845), hereinafter referred to as CETA,
22subsequent to October 1, 1978, and in instances where the board
23has elected to establish a manpower program reserve, the board
24shall compute the amounts necessary to be credited to the
25manpower program reserves established and maintained as herein
26provided, and shall make a periodic determination of the amount

SB0014 Engrossed- 21 -LRB100 06410 RPS 16449 b
1of required contributions from the City to the reserve to be
2reimbursed by the federal government in accordance with rules
3and regulations established by the Secretary of the United
4States Department of Labor or his designee, and certify the
5results thereof to the City Council. Any such amounts shall
6become a credit to the City and will be used to reduce the
7amount which the City would otherwise contribute during
8succeeding years for all employees.
9 (e) In lieu of establishing a manpower program reserve with
10respect to employees whose wages are funded as participants
11under the Comprehensive Employment and Training Act of 1973, as
12authorized by subsection (d), the board may elect to establish
13a special municipality contribution rate for all such
14employees. If this option is elected, the City shall contribute
15to the Fund from federal funds provided under the Comprehensive
16Employment and Training Act program at the special rate so
17established and such contributions shall become a credit to the
18City and be used to reduce the amount which the City would
19otherwise contribute during succeeding years for all
20employees.
21 (f) In lieu of levying all or a portion of the tax required
22under this Section in any year, the city may deposit with the
23city treasurer no later than March 1 of that year for the
24benefit of the fund, to be held in accordance with this
25Article, an amount that, together with the taxes levied under
26this Section for that year, is not less than the amount of the

SB0014 Engrossed- 22 -LRB100 06410 RPS 16449 b
1city contributions for that year as certified by the board to
2the city council. The deposit may be derived from any source
3legally available for that purpose, including, but not limited
4to, the proceeds of city borrowings. The making of a deposit
5shall satisfy fully the requirements of this Section for that
6year to the extent of the amounts so deposited. Amounts
7deposited under this subsection may be used by the fund for any
8of the purposes for which the proceeds of the tax levied by the
9city under this Section may be used, including the payment of
10any amount that is otherwise required by this Article to be
11paid from the proceeds of that tax.
12(Source: P.A. 90-31, eff. 6-27-97; 90-655, eff. 7-30-98;
1390-766, eff. 8-14-98.)
14 (40 ILCS 5/8-174) (from Ch. 108 1/2, par. 8-174)
15 (Text of Section WITHOUT the changes made by P.A. 98-641,
16which has been held unconstitutional)
17 Sec. 8-174. Contributions for age and service annuities for
18present employees and future entrants. (a) Beginning on the
19effective date and prior to July 1, 1947, 3 1/4%; and beginning
20on July 1, 1947 and prior to July 1, 1953, 5%; and beginning
21July 1, 1953, and prior to January 1, 1972, 6%; and beginning
22January 1, 1972, 6-1/2% of each payment of the salary of each
23present employee and future entrant, except as provided in
24subsection (a-5) and (a-10), shall be contributed to the fund
25as a deduction from salary for age and service annuity.

SB0014 Engrossed- 23 -LRB100 06410 RPS 16449 b
1 (a-5) Except as provided in subsection (a-10), for an
2employee who on or after January 1, 2011 and prior to the
3effective date of this amendatory Act of the 100th General
4Assembly first became a member or participant under this
5Article and made the election under item (i) of subsection
6(d-10) of Section 1-160: prior to the effective date of this
7amendatory Act of the 100th General Assembly, 6.5%; and
8beginning on the effective date of this amendatory Act of the
9100th General Assembly and prior to January 1, 2018, 7.5%; and
10beginning January 1, 2018 and prior to January 1, 2019, 8.5%;
11and beginning January 1, 2019 and thereafter, employee
12contributions for those employees who made the election under
13item (i) of subsection (d-10) of Section 1-160 shall be the
14lesser of: (i) the total normal cost, calculated using the
15entry age normal actuarial method, projected for that fiscal
16year for the benefits and expenses of the plan of benefits
17applicable to those members and participants who first became
18members or participants on or after the effective date of this
19amendatory Act of the 100th General Assembly and to those
20employees who made the election under item (i) of subsection
21(d-10) of Section 1-160, but not less than 6.5% of each payment
22of salary combined with the employee contributions provided for
23in subsection (b) of Section 8-137 and Section 8-182 of this
24Article; or (ii) the aggregate employee contribution
25consisting of 9.5% of each payment of salary combined with the
26employee contributions provided for in subsection (b) of

SB0014 Engrossed- 24 -LRB100 06410 RPS 16449 b
1Section 8-137 and 8-182 of this Article.
2 Beginning with the first pay period on or after the date
3when the funded ratio of the fund is first determined to have
4reached the 90% funding goal, and each pay period thereafter
5for as long as the fund maintains a funding ratio of 75% or
6more, employee contributions for age and service annuity for
7those employees who made the election under item (i) of
8subsection (d-10) of Section 1-160 shall be 5.5% of each
9payment of salary. If the funding ratio falls below 75%, then
10employee contributions for age and service annuity for those
11employees who made the election under item (i) of subsection
12(d-10) shall revert to the lesser of: (A) the total normal
13cost, calculated using the entry age normal actuarial method,
14projected for that fiscal year for the benefits and expenses of
15the plan of benefits applicable to those members and
16participants who first became members or participants on or
17after the effective date of this amendatory Act of the 100th
18General Assembly and to those employees who made the election
19under item (i) of subsection (d-10) of Section 1-160, but not
20less than 6.5% of each payment of salary combined with the
21employee contributions provided for in subsection (b) of
22Section 8-137 and Section 8-182 of this Article; or (B) the
23aggregate employee contribution consisting of 9.5% of each
24payment of salary combined with the employee contributions
25provided for in subsection (b) of Section 8-137 and 8-182 of
26this Article. If the fund once again is determined to have

SB0014 Engrossed- 25 -LRB100 06410 RPS 16449 b
1reached a funding ratio of 75%, the 5.5% of salary contribution
2for age and service annuity shall resume. An employee who made
3the election under item (ii) of subsection (d-10) of Section
41-160 shall continue to have the contributions for age and
5service annuity determined under subsection (a) of this
6Section.
7 If contributions are reduced to less than the aggregate
8employee contribution described in item (ii) or item (B) of
9this subsection due to application of the normal cost
10criterion, the employee contribution amount shall be
11consistent from July 1 of the fiscal year through June 30 of
12that fiscal year.
13 The normal cost, for the purposes of this subsection (a-5)
14and subsection (a-10), shall be calculated by an independent
15enrolled actuary mutually agreed upon by the fund and the City.
16The fees and expenses of the independent actuary shall be the
17responsibility of the City. For purposes of this subsection
18(a-5), the fund and the City shall both be considered to be the
19clients of the actuary, and the actuary shall utilize
20participant data and actuarial standards to calculate the
21normal cost. The fund shall provide information that the
22actuary requests in order to calculate the applicable normal
23cost.
24 (a-10) For each employee who on or after the effective date
25of this amendatory Act of the 100th General Assembly first
26becomes a member or participant under this Article, 9.5% of

SB0014 Engrossed- 26 -LRB100 06410 RPS 16449 b
1each payment of salary shall be contributed to the fund as a
2deduction from salary for age and service annuity. Beginning
3January 1, 2018 and each year thereafter, employee
4contributions for each employee subject to this subsection
5(a-10) shall be the lesser of: (i) the total normal cost,
6calculated using the entry age normal actuarial method,
7projected for that fiscal year for the benefits and expenses of
8the plan of benefits applicable to those members and
9participants who first become members or participants on or
10after the effective date of this amendatory Act of the 100th
11General Assembly and to those employees who made the election
12under item (i) of subsection (d-10) of Section 1-160, but not
13less than 6.5% of each payment of salary combined with the
14employee contributions provided for in subsection (b) of
15Section 8-137 and Section 8-182 of this Article; or (ii) the
16aggregate employee contribution consisting of 9.5% of each
17payment of salary combined with the employee contributions
18provided for in subsection (b) of Section 8-137 and Section
198-182 of this Article.
20 Beginning with the first pay period on or after the date
21when the funded ratio of the fund is first determined to have
22reached the 90% funding goal, and each pay period thereafter
23for as long as the fund maintains a funding ratio of 75% or
24more, employee contributions for age and service annuity for
25each employee subject to this subsection (a-10) shall be 5.5%
26of each payment of salary. If the funding ratio falls below

SB0014 Engrossed- 27 -LRB100 06410 RPS 16449 b
175%, then employee contributions for age and service annuity
2for each employee subject to this subsection (a-10) shall
3revert to the lesser of: (A) the total normal cost, calculated
4using the entry age normal actuarial method, projected for that
5fiscal year for the benefits and expenses of the plan of
6benefits applicable to those members and participants who first
7become members or participants on or after the effective date
8of this amendatory Act of the 100th General Assembly and to
9those employees who made the election under item (i) of
10subsection (d-10) of Section 1-160, but not less than 6.5% of
11each payment of salary combined with the employee contributions
12provided for in subsection (b) of Section 8-137 and Section
138-182 of this Article; or (B) the aggregate employee
14contribution consisting of 9.5% of each payment of salary
15combined with the employee contributions provided for in
16subsection (b) of Section 8-137 and Section 8-182 of this
17Article. If the fund once again is determined to have reached a
18funding ratio of 75%, the 5.5% of salary contribution for age
19and service annuity shall resume.
20 If contributions are reduced to less than the aggregate
21employee contribution described in item (ii) or item (B) of
22this subsection (a-10) due to application of the normal cost
23criterion, the employee contribution amount shall be
24consistent from July 1 of the fiscal year through June 30 of
25that fiscal year.
26 Such deductions beginning on the effective date and prior

SB0014 Engrossed- 28 -LRB100 06410 RPS 16449 b
1to July 1, 1947 shall be made for a future entrant while he is
2in the service until he attains age 65 and for a present
3employee while he is in the service until the amount so
4deducted from his salary with the amount deducted from his
5salary or paid by him according to law to any municipal pension
6fund in force on the effective date with interest on both such
7amounts at 4% per annum equals the sum that would have been to
8his credit from sums deducted from his salary if deductions at
9the rate herein stated had been made during his entire service
10until he attained age 65 with interest at 4% per annum for the
11period subsequent to his attainment of age 65. Such deductions
12beginning July 1, 1947 shall be made and continued for
13employees while in the service.
14 (b) (Blank). Concurrently with each employee contribution
15beginning on the effective date and prior to July 1, 1947 the
16city shall contribute 5 3/4%; and beginning on July 1, 1947 and
17prior to July 1, 1953, 7%; and beginning July 1, 1953, 6% of
18each payment of such salary until the employee attains age 65.
19 (c) Each employee contribution made prior to the date the
20age and service annuity for an employee is fixed and each
21corresponding city contribution shall be credited to the
22employee and allocated to the account of the employee for whose
23benefit it is made.
24 (d) Notwithstanding Section 1-103.1, the changes to this
25Section made by this amendatory Act of the 100th General
26Assembly apply regardless of whether the employee was in active

SB0014 Engrossed- 29 -LRB100 06410 RPS 16449 b
1service on or after the effective date of this amendatory Act
2of the 100th General Assembly.
3(Source: P.A. 93-654, eff. 1-16-04.)
4 (40 ILCS 5/8-228.5 new)
5 Sec. 8-228.5. Action by Fund against third party;
6subrogation. In those cases where the injury or death for which
7a disability or death benefit is payable under this Article was
8caused under circumstances creating a legal liability on the
9part of some person or entity (hereinafter "third party") to
10pay damages to the employee, legal proceedings may be taken
11against such third party to recover damages notwithstanding the
12Fund's payment of or liability to pay disability or death
13benefits under this Article. In such case, however, if the
14action against such third party is brought by the injured
15employee or his or her personal representative and judgment is
16obtained and paid, or settlement is made with such third party,
17either with or without suit, from the amount received by such
18employee or personal representative, then there shall be paid
19to the Fund the amount of money representing the death or
20disability benefits paid or to be paid to the disabled employee
21pursuant to the provisions of this Article. In all
22circumstances where the action against a third party is brought
23by the disabled employee or his or her personal representative,
24the Fund shall have a claim or lien upon any recovery, by
25judgment or settlement, out of which the disabled employee or

SB0014 Engrossed- 30 -LRB100 06410 RPS 16449 b
1his or her personal representative might be compensated from
2such third party. The Fund may satisfy or enforce any such
3claim or lien only from that portion of a recovery that has
4been, or can be, allocated or attributed to past and future
5lost salary, which recovery is by judgment or settlement. The
6Fund's claim or lien shall not be satisfied or enforced from
7that portion of a recovery that has been, or can be, allocated
8or attributed to medical care and treatment, pain and
9suffering, loss of consortium, and attorney's fees and costs.
10 Where action is brought by the disabled employee or his or
11her personal representative, he or she shall forthwith notify
12the Fund, by personal service or registered mail, of such fact
13and of the name of the court where such suit is brought, filing
14proof of such notice in such action. The Fund may, at any time
15thereafter, intervene in such action upon its own motion.
16Therefore, no release or settlement of claim for damages by
17reason of injury to the disabled employee, and no satisfaction
18of judgment in such proceedings, shall be valid without the
19written consent of the Board of Trustees authorized by this
20Code to administer the Fund created under this Article, except
21that such consent shall be provided expeditiously following a
22settlement or judgment.
23 In the event the disabled employee or his or her personal
24representative has not instituted an action against a third
25party at a time when only 3 months remain before such action
26would thereafter be barred by law, the Fund may, in its own

SB0014 Engrossed- 31 -LRB100 06410 RPS 16449 b
1name or in the name of the personal representative, commence a
2proceeding against such third party seeking the recovery of all
3damages on account of injuries caused to the employee. From any
4amount so recovered, the Fund shall pay to the personal
5representative of such disabled employee all sums collected
6from such third party by judgment or otherwise in excess of the
7amount of disability or death benefits paid or to be paid under
8this Article to the disabled employee or his or her personal
9representative, and such costs, attorney's fees, and
10reasonable expenses as may be incurred by the Fund in making
11the collection or in enforcing such liability. The Fund's
12recovery shall be satisfied only from that portion of a
13recovery that has been, or can be, allocated or attributed to
14past and future lost salary, which recovery is by judgment or
15settlement. The Fund's recovery shall not be satisfied from
16that portion of the recovery that has been, or can be,
17allocated or attributed to medical care and treatment, pain and
18suffering, loss of consortium, and attorney's fees and costs.
19 Additionally, with respect to any right of subrogation
20asserted by the Fund under this Section, the Fund, in the
21exercise of discretion, may determine what amount from past or
22future salary shall be appropriate under the circumstances to
23collect from the recovery obtained on behalf of the disabled
24employee.
25 This Section applies only to persons who first become
26members or participants under this Article on or after the

SB0014 Engrossed- 32 -LRB100 06410 RPS 16449 b
1effective date of this amendatory Act of the 100th General
2Assembly.
3 (40 ILCS 5/8-243.2) (from Ch. 108 1/2, par. 8-243.2)
4 Sec. 8-243.2. Alternative annuity for city officers.
5 (a) For the purposes of this Section and Sections 8-243.1
6and 8-243.3, "city officer" means the city clerk, the city
7treasurer, or an alderman of the city elected by vote of the
8people, while serving in that capacity or as provided in
9subsection (f), who has elected to participate in the Fund.
10 (b) Any elected city officer, while serving in that
11capacity or as provided in subsection (f), may elect to
12establish alternative credits for an alternative annuity by
13electing in writing to make additional optional contributions
14in accordance with this Section and the procedures established
15by the board. Such elected city officer may discontinue making
16the additional optional contributions by notifying the Fund in
17writing in accordance with this Section and procedures
18established by the board.
19 Additional optional contributions for the alternative
20annuity shall be as follows:
21 (1) For service after the option is elected, an
22 additional contribution of 3% of salary shall be
23 contributed to the Fund on the same basis and under the
24 same conditions as contributions required under Sections
25 8-174 and 8-182.

SB0014 Engrossed- 33 -LRB100 06410 RPS 16449 b
1 (2) For service before the option is elected, an
2 additional contribution of 3% of the salary for the
3 applicable period of service, plus interest at the
4 effective rate from the date of service to the date of
5 payment. All payments for past service must be paid in full
6 before credit is given. No additional optional
7 contributions may be made for any period of service for
8 which credit has been previously forfeited by acceptance of
9 a refund, unless the refund is repaid in full with interest
10 at the effective rate from the date of refund to the date
11 of repayment.
12 (c) In lieu of the retirement annuity otherwise payable
13under this Article, any city officer elected by vote of the
14people who (1) has elected to participate in the Fund and make
15additional optional contributions in accordance with this
16Section, and (2) has attained age 55 with at least 10 years of
17service credit, or has attained age 60 with at least 8 years of
18service credit, may elect to have his retirement annuity
19computed as follows: 3% of the participant's salary at the time
20of termination of service for each of the first 8 years of
21service credit, plus 4% of such salary for each of the next 4
22years of service credit, plus 5% of such salary for each year
23of service credit in excess of 12 years, subject to a maximum
24of 80% of such salary. To the extent such elected city officer
25has made additional optional contributions with respect to only
26a portion of his years of service credit, his retirement

SB0014 Engrossed- 34 -LRB100 06410 RPS 16449 b
1annuity will first be determined in accordance with this
2Section to the extent such additional optional contributions
3were made, and then in accordance with the remaining Sections
4of this Article to the extent of years of service credit with
5respect to which additional optional contributions were not
6made.
7 (d) In lieu of the disability benefits otherwise payable
8under this Article, any city officer elected by vote of the
9people who (1) has elected to participate in the Fund, and (2)
10has become permanently disabled and as a consequence is unable
11to perform the duties of his office, and (3) was making
12optional contributions in accordance with this Section at the
13time the disability was incurred, may elect to receive a
14disability annuity calculated in accordance with the formula in
15subsection (c). For the purposes of this subsection, such
16elected city officer shall be considered permanently disabled
17only if: (i) disability occurs while in service as an elected
18city officer and is of such a nature as to prevent him from
19reasonably performing the duties of his office at the time; and
20(ii) the board has received a written certification by at least
212 licensed physicians appointed by it stating that such officer
22is disabled and that the disability is likely to be permanent.
23 (e) Refunds of additional optional contributions shall be
24made on the same basis and under the same conditions as
25provided under Sections 8-168, 8-170 and 8-171. Interest shall
26be credited at the effective rate on the same basis and under

SB0014 Engrossed- 35 -LRB100 06410 RPS 16449 b
1the same conditions as for other contributions. Optional
2contributions shall be accounted for in a separate Elected City
3Officer Optional Contribution Reserve. Optional contributions
4under this Section shall be included in the amount of employee
5contributions used to compute the tax levy under Section 8-173.
6 (f) The effective date of this plan of optional alternative
7benefits and contributions shall be July 1, 1990, or the date
8upon which approval is received from the U.S. Internal Revenue
9Service, whichever is later.
10 The plan of optional alternative benefits and
11contributions shall not be available to any former city officer
12or employee receiving an annuity from the Fund on the effective
13date of the plan, unless he re-enters service as an elected
14city officer and renders at least 3 years of additional service
15after the date of re-entry. However, a person who holds office
16as a city officer on June 1, 1995 may elect to participate in
17the plan, to transfer credits into the Fund from other Articles
18of this Code, and to make the contributions required for prior
19service, until 30 days after the effective date of this
20amendatory Act of the 92nd General Assembly, notwithstanding
21the ending of his term of office prior to that effective date;
22in the event that the person is already receiving an annuity
23from this Fund or any other Article of this Code at the time of
24making this election, the annuity shall be recalculated to
25include any increase resulting from participation in the plan,
26with such increase taking effect on the effective date of the

SB0014 Engrossed- 36 -LRB100 06410 RPS 16449 b
1election.
2 (g) Notwithstanding any other provision in this Section or
3in this Code to the contrary, any person who first becomes a
4city officer, as defined in this Section, on or after the
5effective date of this amendatory Act of the 100th General
6Assembly, shall not be eligible for the alternative annuity or
7alternative disability benefits as provided in subsections
8(a), (b), (c), and (d) of this Section or for the alternative
9survivor's benefits as provided in Section 8-243.3. Such person
10shall not be eligible, or be required, to make any additional
11contributions beyond those required of other participants
12under Sections 8-137, 8-174, and 8-182. The retirement annuity,
13disability benefits, and survivor's benefits for a person who
14first becomes a city officer on or after the effective date of
15this amendatory Act of the 100th General Assembly shall be
16determined pursuant to the provisions otherwise provided in
17this Article.
18(Source: P.A. 92-599, eff. 6-28-02.)
19 (40 ILCS 5/8-244) (from Ch. 108 1/2, par. 8-244)
20 Sec. 8-244. Annuities, etc., exempt.
21 (a) All annuities, refunds, pensions, and disability
22benefits granted under this Article, shall be exempt from
23attachment or garnishment process and shall not be seized,
24taken, subjected to, detained, or levied upon by virtue of any
25judgment, or any process or proceeding whatsoever issued out of

SB0014 Engrossed- 37 -LRB100 06410 RPS 16449 b
1or by any court in this State, for the payment and satisfaction
2in whole or in part of any debt, damage, claim, demand, or
3judgment against any annuitant, pensioner, participant, refund
4applicant, or other beneficiary hereunder.
5 (b) No annuitant, pensioner, refund applicant, or other
6beneficiary shall have any right to transfer or assign his
7annuity, refund, or disability benefit or any part thereof by
8way of mortgage or otherwise, except that:
9 (1) an annuitant or pensioner who elects or has elected
10 to participate in a non-profit group hospital care plan or
11 group medical surgical plan may with the approval of the
12 board and in conformity with its regulations authorize the
13 board to withhold from the pension or annuity the current
14 premium for such coverage and pay such premium to the
15 organization underwriting such plan;
16 (2) in the case of refunds, a participant may pledge by
17 assignment, power of attorney, or otherwise, as security
18 for a loan from a legally operating credit union making
19 loans only to participants in certain public employee
20 pension funds described in the Illinois Pension Code, all
21 or part of any refund which may become payable to him in
22 the event of his separation from service; and
23 (3) the board, in its discretion, may pay to the wife
24 of any annuitant, pensioner, refund applicant, or
25 disability beneficiary, such an amount out of her husband's
26 annuity pension, refund, or disability benefit as any court

SB0014 Engrossed- 38 -LRB100 06410 RPS 16449 b
1 of competent jurisdiction may order, or such an amount as
2 the board may consider necessary for the support of his
3 wife or children, or both in the event of his disappearance
4 or unexplained absence or of his failure to support such
5 wife or children.
6 (c) The board may retain out of any future annuity,
7pension, refund or disability benefit payments, such amount, or
8amounts, as it may require for the repayment of any moneys paid
9to any annuitant, pensioner, refund applicant, or disability
10beneficiary through misrepresentation, fraud or error. Any
11such action of the board shall relieve and release the board
12and the fund from any liability for any moneys so withheld.
13 (d) Whenever an annuity or disability benefit is payable to
14a minor or to a person certified by a medical doctor to be
15under legal disability, the board, in its discretion and when
16it is in the best interest of the person concerned, may waive
17guardianship proceedings and pay the annuity or benefit to the
18person providing or caring for the minor or person under legal
19disability.
20 In the event that a person certified by a medical doctor to
21be under legal disability (i) has no spouse, blood relative, or
22other person providing or caring for him or her, (ii) has no
23guardian of his or her estate, and (iii) is confined to a
24Medicare approved, State certified nursing home or to a
25publicly owned and operated nursing home, hospital, or mental
26institution, the Board may pay any benefit due that person to

SB0014 Engrossed- 39 -LRB100 06410 RPS 16449 b
1the nursing home, hospital, or mental institution, to be used
2for the sole benefit of the person under legal disability.
3 Payment in accordance with this subsection to a person,
4nursing home, hospital, or mental institution for the benefit
5of a minor or person under legal disability shall be an
6absolute discharge of the Fund's liability with respect to the
7amount so paid. Any person, nursing home, hospital, or mental
8institution accepting payment under this subsection shall
9notify the Fund of the death or any other relevant change in
10the status of the minor or person under legal disability.
11(Source: P.A. 91-887, eff. 7-6-00.)
12 (40 ILCS 5/8-244.1) (from Ch. 108 1/2, par. 8-244.1)
13 Sec. 8-244.1. Payment of annuity other than direct.
14 (a) The board, at the written direction and request of any
15annuitant, may, solely as an accommodation to such annuitant,
16pay the annuity due him to a bank, savings and loan association
17or any other financial institution insured by an agency of the
18federal government, for deposit to his account, or to a bank or
19trust company for deposit in a trust established by him for his
20benefit with such bank, savings and loan association or trust
21company, and such annuitant may withdraw such direction at any
22time. The board may also, in the case of any disability
23beneficiary or annuitant for whom no estate guardian has been
24appointed and who is confined in a publicly owned and operated
25mental institution, pay such disability benefit or annuity due

SB0014 Engrossed- 40 -LRB100 06410 RPS 16449 b
1such person to the superintendent or other head of such
2institution or hospital for deposit to such person's trust fund
3account maintained for him by such institution or hospital, if
4by law such trust fund accounts are authorized or recognized.
5 (b) An annuitant formerly employed by the City of Chicago
6may authorize the withholding of a portion of his or her
7annuity for payment of dues to the labor organization which
8formerly represented the annuitant when the annuitant was an
9active employee; however, no withholding shall be required
10under this subsection for payment to one labor organization
11unless a minimum of 25 annuitants authorize such withholding.
12The Board shall prescribe a form for the authorization of
13withholding of dues, release of name, social security number
14and address and shall provide such forms to employees,
15annuitants and labor organizations upon request. Amounts
16withheld by the Board under this subsection shall be promptly
17paid over to the designated organizations, indicating the
18names, social security numbers and addresses of annuitants on
19whose behalf dues were withheld.
20 At the request and at the expense of the labor organization
21that formerly represented the annuitant, the City of Chicago
22shall coordinate mailings no more than twice in any
23twelve-month period to such annuitants and the Board shall
24supply current annuitant addresses to the City of Chicago upon
25request. These mailings shall be limited to informing the
26annuitants of their rights under this subsection (b), the form

SB0014 Engrossed- 41 -LRB100 06410 RPS 16449 b
1authorizing the withholding of dues from their annuity and
2information supplied by the labor organization pertinent to the
3decision of whether to exercise the rights of this subsection.
4To meet this obligation, the City of Chicago shall, upon
5request, create and update records of all retirees for each
6labor organization as far back in time as records permit,
7including their names, addresses, phone numbers and social
8security numbers.
9(Source: P.A. 90-766, eff. 8-14-98.)
10 (40 ILCS 5/8-251) (from Ch. 108 1/2, par. 8-251)
11 Sec. 8-251. Felony conviction.
12 None of the benefits provided for in this Article shall be
13paid to any person who is convicted of any felony relating to
14or arising out of or in connection with his service as a
15municipal employee.
16 This section shall not operate to impair any contract or
17vested right heretofore acquired under any law or laws
18continued in this Article, nor to preclude the right to a
19refund.
20 Any refund required under this Article shall be calculated
21based on that person's contributions to the Fund, less the
22amount of any annuity benefit previously received by the person
23or his or her beneficiaries. The changes made to this Section
24by this amendatory Act of the 100th General Assembly apply only
25to persons who first become participants under this Article on

SB0014 Engrossed- 42 -LRB100 06410 RPS 16449 b
1or after the effective date of this amendatory Act of the 100th
2General Assembly.
3 All future entrants entering service subsequent to July 11,
41955 shall be deemed to have consented to the provisions of
5this section as a condition of coverage.
6(Source: Laws 1963, p. 161.)
7 (40 ILCS 5/11-125.9 new)
8 Sec. 11-125.9 Action by Fund against third party;
9subrogation. In those cases where the injury or death for which
10a disability or death benefit is payable under this Article was
11caused under circumstances creating a legal liability on the
12part of some person or entity (hereinafter "third party") to
13pay damages to the employee, legal proceedings may be taken
14against such third party to recover damages notwithstanding the
15Fund's payment of or liability to pay disability or death
16benefits under this Article. In such case, however, if the
17action against such third party is brought by the injured
18employee or his or her personal representative and judgment is
19obtained and paid, or settlement is made with such third party,
20either with or without suit, from the amount received by such
21employee or personal representative, then there shall be paid
22to the Fund the amount of money representing the death or
23disability benefits paid or to be paid to the disabled employee
24pursuant to the provisions of this Article. In all
25circumstances where the action against a third party is brought

SB0014 Engrossed- 43 -LRB100 06410 RPS 16449 b
1by the disabled employee or his or her personal representative,
2the Fund shall have a claim or lien upon any recovery, by
3judgment or settlement, out of which the disabled employee or
4his or her personal representative might be compensated from
5such third party. The Fund may satisfy or enforce any such
6claim or lien only from that portion of a recovery that has
7been, or can be, allocated or attributed to past and future
8lost salary, which recovery is by judgment or settlement. The
9Fund's claim or lien shall not be satisfied or enforced from
10that portion of a recovery that has been, or can be, allocated
11or attributed to medical care and treatment, pain and
12suffering, loss of consortium, and attorney's fees and costs.
13Where action is brought by the disabled employee or his or her
14personal representative, he or she shall forthwith notify the
15Fund, by personal service or registered mail, of such fact and
16of the name of the court where such suit is brought, filing
17proof of such notice in such action. The Fund may, at any time
18thereafter, intervene in such action upon its own motion.
19Therefore, no release or settlement of claim for damages by
20reason of injury to the disabled employee, and no satisfaction
21of judgment in such proceedings, shall be valid without the
22written consent of the Board of Trustees authorized by this
23Code to administer the Fund created under this Article, except
24that such consent shall be provided expeditiously following a
25settlement or judgment.
26 In the event the disabled employee or his or her personal

SB0014 Engrossed- 44 -LRB100 06410 RPS 16449 b
1representative has not instituted an action against a third
2party at a time when only 3 months remain before such action
3would thereafter be barred by law, the Fund may, in its own
4name or in the name of the personal representative, commence a
5proceeding against such third party seeking the recovery of all
6damages on account of injuries caused to the employee. From any
7amount so recovered, the Fund shall pay to the personal
8representative of such disabled employee all sums collected
9from such third party by judgment or otherwise in excess of the
10amount of disability or death benefits paid or to be paid under
11this Article to the disabled employee or his or her personal
12representative, and such costs, attorney's fees, and
13reasonable expenses as may be incurred by the Fund in making
14the collection or in enforcing such liability. The Fund's
15recovery shall be satisfied only from that portion of a
16recovery that has been, or can be, allocated or attributed to
17past and future lost salary, which recovery is by judgment or
18settlement. The Fund's recovery shall not be satisfied from
19that portion of the recovery that has been, or can be,
20allocated or attributed to medical care and treatment, pain and
21suffering, loss of consortium, and attorney's fees and costs.
22Additionally, with respect to any right of subrogation asserted
23by the Fund under this Section, the Fund, in the exercise of
24discretion, may determine what amount from past or future
25salary shall be appropriate under the circumstances to collect
26from the recovery obtained on behalf of the disabled employee.

SB0014 Engrossed- 45 -LRB100 06410 RPS 16449 b
1 This Section applies only to persons who first become
2members or participants under this Article on or after the
3effective date of this amendatory Act of the 100th General
4Assembly.
5 (40 ILCS 5/11-169) (from Ch. 108 1/2, par. 11-169)
6 (Text of Section WITHOUT the changes made by P.A. 98-641,
7which has been held unconstitutional)
8 Sec. 11-169. Financing; tax levy.
9 (a) Except as provided in subsection (f) of this Section,
10the city council of the city shall levy a tax annually upon all
11taxable property in the city at the rate that will produce a
12sum which, when added to the amounts deducted from the salaries
13of the employees or otherwise contributed by them and the
14amounts deposited under subsection (f), will be sufficient for
15the requirements of this Article. For the years prior to the
16year 1950 the tax rate shall be as provided for under "The 1935
17Act". Beginning with the year 1950 to and including the year
181969 such tax shall be not more than .036% annually of the
19value, as equalized or assessed by the Department of Revenue,
20of all taxable property within such city. Beginning with the
21year 1970 and each year thereafter through levy year 2016, the
22city shall levy a tax annually at a rate on the dollar of the
23value, as equalized or assessed by the Department of Revenue of
24all taxable property within such city that will produce, when
25extended, not to exceed an amount equal to the total amount of

SB0014 Engrossed- 46 -LRB100 06410 RPS 16449 b
1contributions by the employees to the fund made in the calendar
2year 2 years prior to the year for which the annual applicable
3tax is levied, multiplied by 1.1 for the years 1970, 1971 and
41972; 1.145 for the year 1973; 1.19 for the year 1974; 1.235
5for the year 1975; 1.280 for the year 1976; 1.325 for the year
61977; 1.370 for the years 1978 through 1998; and 1.000 for the
7year 1999 and for each year thereafter through levy year 2016.
8Beginning in levy year 2017, and in each year thereafter, the
9levy shall not exceed the amount of the city's total required
10contribution to the Fund for the next payment year, as
11determined under subsection (a-5). For the purposes of this
12Section, the payment year is the year immediately following the
13levy year.
14 The tax shall be levied and collected in like manner with
15the general taxes of the city, and shall be exclusive of and in
16addition to the amount of tax the city is now or may hereafter
17be authorized to levy for general purposes under any laws which
18may limit the amount of tax which the city may levy for general
19purposes. The county clerk of the county in which the city is
20located, in reducing tax levies under the provisions of any Act
21concerning the levy and extension of taxes, shall not consider
22the tax herein provided for as a part of the general tax levy
23for city purposes, and shall not include the same within any
24limitation of the per cent of the assessed valuation upon which
25taxes are required to be extended for such city.
26 Revenues derived from such tax shall be paid to the city

SB0014 Engrossed- 47 -LRB100 06410 RPS 16449 b
1treasurer of the city as collected and held by the city
2treasurer him for the benefit of the fund.
3 If the payments on account of taxes are insufficient during
4any year to meet the requirements of this Article, the city may
5issue tax anticipation warrants against the current tax levy.
6 The city may continue to use other lawfully available funds
7in lieu of all or part of the levy, as provided under
8subsection (f) of this Section.
9 (a-5) (1) Beginning in payment year 2018, the city's
10required annual contribution to the Fund for payment years 2018
11through 2022 shall be: for 2018, $36,000,000; for 2019,
12$48,000,000; for 2020, $60,000,000; for 2021, $72,000,000; and
13for 2022, $84,000,000.
14 (2) For payment years 2023 through 2058, the city's
15required annual contribution to the Fund shall be the amount
16determined by the Fund to be equal to the sum of (i) the city's
17portion of projected normal cost for that fiscal year, plus
18(ii) an amount determined on a level percentage of applicable
19employee payroll basis that is sufficient to bring the total
20actuarial assets of the Fund up to 90% of the total actuarial
21liabilities of the Fund by the end of 2058.
22 (3) For payment years after 2058, the city's required
23annual contribution to the Fund shall be equal to the amount,
24if any, needed to bring the total actuarial assets of the Fund
25up to 90% of the total actuarial liabilities of the Fund as of
26the end of the year. In making the determinations under

SB0014 Engrossed- 48 -LRB100 06410 RPS 16449 b
1paragraphs (2) and (3) of this subsection, the actuarial
2calculations shall be determined under the entry age normal
3actuarial cost method, and any actuarial gains or losses from
4investment return incurred in a fiscal year shall be recognized
5in equal annual amounts over the 5-year period following the
6fiscal year.
7 To the extent that the city's contribution for any of the
8payment years referenced in this subsection is made with
9property taxes, those property taxes shall be levied,
10collected, and paid to the Fund in a like manner with the
11general taxes of the city.
12 (a-10) If the city fails to transmit to the Fund
13contributions required of it under this Article by December 31
14of the year in which such contributions are due, the Fund may,
15after giving notice to the city, certify to the State
16Comptroller the amounts of the delinquent payments, and the
17Comptroller must, beginning in payment year 2018, deduct and
18deposit into the Fund the certified amounts or a portion of
19those amounts from the following proportions of grants of State
20funds to the city:
21 (1) in payment year 2018, one-third of the total amount
22 of any grants of State funds to the city;
23 (2) in payment year 2019, two-thirds of the total
24 amount of any grants of State funds to the city; and
25 (3) in payment year 2020 and each payment year
26 thereafter, the total amount of any grants of State funds

SB0014 Engrossed- 49 -LRB100 06410 RPS 16449 b
1 to the city.
2 The State Comptroller may not deduct from any grants of
3State funds to the city more than the amount of delinquent
4payments certified to the State Comptroller by the Fund.
5 (b) On or before July 1, 2017, and each July 1 thereafter
6January 10, annually, the board shall certify to notify the
7city council the annual amounts required under of the
8requirement of this Article, for which that the tax herein
9provided shall be levied for the following that current year.
10The board shall compute the amounts necessary for the purposes
11of this fund to be credited to the reserves established and
12maintained as herein provided, and shall make an annual
13determination of the amount of the required city contributions;
14and certify the results thereof to the city council.
15 (c) In respect to employees of the city who are transferred
16to the employment of a park district by virtue of "Exchange of
17Functions Act of 1957" the corporate authorities of the park
18district shall annually levy a tax upon all the taxable
19property in the park district at such rate per cent of the
20value of such property, as equalized or assessed by the
21Department of Revenue, as shall be sufficient, when added to
22the amounts deducted from their salaries and otherwise
23contributed by them, to provide the benefits to which they and
24their dependents and beneficiaries are entitled under this
25Article. The city shall not levy a tax hereunder in respect to
26such employees.

SB0014 Engrossed- 50 -LRB100 06410 RPS 16449 b
1 The tax so levied by the park district shall be in addition
2to and exclusive of all other taxes authorized to be levied by
3the park district for corporate, annuity fund, or other
4purposes. The county clerk of the county in which the park
5district is located, in reducing any tax levied under the
6provisions of any Act concerning the levy and extension of
7taxes shall not consider such tax as part of the general tax
8levy for park purposes, and shall not include the same in any
9limitation of the per cent of the assessed valuation upon which
10taxes are required to be extended for the park district. The
11proceeds of the tax levied by the park district, upon receipt
12by the district, shall be immediately paid over to the city
13treasurer of the city for the uses and purposes of the fund.
14 The various sums to be contributed by the city and
15allocated for the purposes of this Article, and any interest to
16be contributed by the city, shall be taken from the revenue
17derived from the taxes authorized in this Section, and no money
18of such city derived from any source other than the levy and
19collection of those taxes or the sale of tax anticipation
20warrants in accordance with the provisions of this Article
21shall be used to provide revenue for this Article, except as
22expressly provided in this Section.
23 If it is not possible for the city to make contributions
24for age and service annuity and widow's annuity concurrently
25with the employee's contributions made for such purposes, such
26city shall make such contributions as soon as possible and

SB0014 Engrossed- 51 -LRB100 06410 RPS 16449 b
1practicable thereafter with interest thereon at the effective
2rate to the time they shall be made.
3 (d) With respect to employees whose wages are funded as
4participants under the Comprehensive Employment and Training
5Act of 1973, as amended (P.L. 93-203, 87 Stat. 839, P.L.
693-567, 88 Stat. 1845), hereinafter referred to as CETA,
7subsequent to October 1, 1978, and in instances where the board
8has elected to establish a manpower program reserve, the board
9shall compute the amounts necessary to be credited to the
10manpower program reserves established and maintained as herein
11provided, and shall make a periodic determination of the amount
12of required contributions from the City to the reserve to be
13reimbursed by the federal government in accordance with rules
14and regulations established by the Secretary of the United
15States Department of Labor or his designee, and certify the
16results thereof to the City Council. Any such amounts shall
17become a credit to the City and will be used to reduce the
18amount which the City would otherwise contribute during
19succeeding years for all employees.
20 (e) In lieu of establishing a manpower program reserve with
21respect to employees whose wages are funded as participants
22under the Comprehensive Employment and Training Act of 1973, as
23authorized by subsection (d), the board may elect to establish
24a special municipality contribution rate for all such
25employees. If this option is elected, the City shall contribute
26to the Fund from federal funds provided under the Comprehensive

SB0014 Engrossed- 52 -LRB100 06410 RPS 16449 b
1Employment and Training Act program at the special rate so
2established and such contributions shall become a credit to the
3City and be used to reduce the amount which the City would
4otherwise contribute during succeeding years for all
5employees.
6 (f) In lieu of levying all or a portion of the tax required
7under this Section in any year, the city may deposit with the
8city treasurer no later than March 1 of that year for the
9benefit of the fund, to be held in accordance with this
10Article, an amount that, together with the taxes levied under
11this Section for that year, is not less than the amount of the
12city contributions for that year as certified by the board to
13the city council. The deposit may be derived from any source
14legally available for that purpose, including, but not limited
15to, the proceeds of city borrowings. The making of a deposit
16shall satisfy fully the requirements of this Section for that
17year to the extent of the amounts so deposited. Amounts
18deposited under this subsection may be used by the fund for any
19of the purposes for which the proceeds of the tax levied by the
20city under this Section may be used, including the payment of
21any amount that is otherwise required by this Article to be
22paid from the proceeds of that tax.
23(Source: P.A. 90-31, eff. 6-27-97; 90-766, eff. 8-14-98.)
24 (40 ILCS 5/11-170) (from Ch. 108 1/2, par. 11-170)
25 (Text of Section WITHOUT the changes made by P.A. 98-641,

SB0014 Engrossed- 53 -LRB100 06410 RPS 16449 b
1which has been held unconstitutional)
2 Sec. 11-170. Contributions for age and service annuities
3for present employees, future entrants and re-entrants.
4 (a) Beginning on the effective date and prior to July 1,
51947, 3 1/4%; and beginning on July 1, 1947 and prior to July
61, 1953, 5%; and beginning July 1, 1953 and prior to January 1,
71972, 6%; and beginning January 1, 1972, 6 1/2% of each payment
8of the salary of each present employee, future entrant and
9re-entrant, except as provided in subsection (a-5) and (a-10),
10shall be contributed to the fund as a deduction from salary for
11age and service annuity.
12 (a-5) Except as provided in subsection (a-10), for an
13employee who on or after January 1, 2011 and prior to the
14effective date of this amendatory Act of the 100th General
15Assembly first became a member or participant under this
16Article and made the election under item (i) of subsection
17(d-10) of Section 1-160: prior to the effective date of this
18amendatory Act of the 100th General Assembly, 6.5%; and
19beginning on the effective date of this amendatory Act of the
20100th General Assembly and prior to January 1, 2018, 7.5%; and
21beginning January 1, 2018 and prior to January 1, 2019, 8.5%;
22and beginning January 1, 2019 and thereafter, employee
23contributions for those employees who made the election under
24item (i) of subsection (d-10) of Section 1-160 shall be the
25lesser of: (i) the total normal cost, calculated using the
26entry age normal actuarial method, projected for that fiscal

SB0014 Engrossed- 54 -LRB100 06410 RPS 16449 b
1year for the benefits and expenses of the plan of benefits
2applicable to those members and participants who first became
3members or participants on or after the effective date of this
4amendatory Act of the 100th General Assembly and to those
5employees who made the election under item (i) of subsection
6(d-10) of Section 1-160, but not less than 6.5% of each payment
7of salary combined with the employee contributions provided for
8in subsection (b) of Section 11-134.1 and Section 11-174 of
9this Article; or (ii) the aggregate employee contribution
10consisting of 9.5% of each payment of salary combined with the
11employee contributions provided for in subsection (b) of
12Section 11-134.1 and 11-174 of this Article.
13 Beginning with the first pay period on or after the date
14when the funded ratio of the fund is first determined to have
15reached the 90% funding goal, and each pay period thereafter
16for as long as the fund maintains a funding ratio of 75% or
17more, employee contributions for age and service annuity for
18those employees who made the election under item (i) of
19subsection (d-10) of Section 1-160 shall be 5.5% of each
20payment of salary. If the funding ratio falls below 75%, then
21employee contributions for age and service annuity for those
22employees who made the election under item (i) of subsection
23(d-10) shall revert to the lesser of: (A) the total normal
24cost, calculated using the entry age normal actuarial method,
25projected for that fiscal year for the benefits and expenses of
26the plan of benefits applicable to those members and

SB0014 Engrossed- 55 -LRB100 06410 RPS 16449 b
1participants who first became members or participants on or
2after the effective date of this amendatory Act of the 100th
3General Assembly and to those employees who made the election
4under item (i) of subsection (d-10) of Section 1-160, but not
5less than 6.5% of each payment of salary combined with the
6employee contributions provided for in subsection (b) of
7Section 11-134.1 and Section 11-174 of this Article; or (B) the
8aggregate employee contribution consisting of 9.5% of each
9payment of salary combined with the employee contributions
10provided for in subsection (b) of Section 11-134.1 and 11-174
11of this Article. If the fund once again is determined to have
12reached a funding ratio of 75%, the 5.5% of salary contribution
13for age and service annuity shall resume. An employee who made
14the election under item (ii) of subsection (d-10) of Section
151-160 shall continue to have the contributions for age and
16service annuity determined under subsection (a) of this
17Section.
18 If contributions are reduced to less than the aggregate
19employee contribution described in item (ii) or item (B) of
20this subsection due to application of the normal cost
21criterion, the employee contribution amount shall be
22consistent from July 1 of the fiscal year through June 30 of
23that fiscal year.
24 The normal cost, for the purposes of this subsection (a-5)
25and subsection (a-10), shall be calculated by an independent
26enrolled actuary mutually agreed upon by the fund and the City.

SB0014 Engrossed- 56 -LRB100 06410 RPS 16449 b
1The fees and expenses of the independent actuary shall be the
2responsibility of the City. For purposes of this subsection
3(a-5), the fund and the City shall both be considered to be the
4clients of the actuary, and the actuary shall utilize
5participant data and actuarial standards to calculate the
6normal cost. The fund shall provide information that the
7actuary requests in order to calculate the applicable normal
8cost.
9 (a-10) For each employee who on or after the effective date
10of this amendatory Act of the 100th General Assembly first
11becomes a member or participant under this Article, 9.5% of
12each payment of salary shall be contributed to the fund as a
13deduction from salary for age and service annuity. Beginning
14January 1, 2018 and each year thereafter, employee
15contributions for each employee subject to this subsection
16(a-10) shall be the lesser of: (i) the total normal cost,
17calculated using the entry age normal actuarial method,
18projected for that fiscal year for the benefits and expenses of
19the plan of benefits applicable to those members and
20participants who first become members or participants on or
21after the effective date of this amendatory Act of the 100th
22General Assembly and to those employees who made the election
23under item (i) of subsection (d-10) of Section 1-160, but not
24less than 6.5% of each payment of salary combined with the
25employee contributions provided for in subsection (b) of
26Section 11-134.1 and Section 11-174 of this Article; or (ii)

SB0014 Engrossed- 57 -LRB100 06410 RPS 16449 b
1the aggregate employee contribution consisting of 9.5% of each
2payment of salary combined with the employee contributions
3provided for in subsection (b) of Section 11-134.1 and Section
411-174 of this Article.
5 Beginning with the first pay period on or after the date
6when the funded ratio of the fund is first determined to have
7reached the 90% funding goal, and each pay period thereafter
8for as long as the fund maintains a funding ratio of 75% or
9more, employee contributions for age and service annuity for
10each employee subject to this subsection (a-10) shall be 5.5%
11of each payment of salary. If the funding ratio falls below
1275%, then employee contributions for age and service annuity
13for each employee subject to this subsection (a-10) shall
14revert to the lesser of: (A) the total normal cost, calculated
15using the entry age normal actuarial method, projected for that
16fiscal year for the benefits and expenses of the plan of
17benefits applicable to those members and participants who first
18become members or participants on or after the effective date
19of this amendatory Act of the 100th General Assembly and to
20those employees who made the election under item (i) of
21subsection (d-10) of Section 1-160, but not less than 6.5% of
22each payment of salary combined with the employee contributions
23provided for in subsection (b) of Section 11-134.1 and Section
2411-174 of this Article; or (B) the aggregate employee
25contribution consisting of 9.5% of each payment of salary
26combined with the employee contributions provided for in

SB0014 Engrossed- 58 -LRB100 06410 RPS 16449 b
1subsection (b) of Section 11-134.1 and Section 11-174 of this
2Article. If the fund once again is determined to have reached a
3funding ratio of 75%, the 5.5% of salary contribution for age
4and service annuity shall resume.
5 If contributions are reduced to less than the aggregate
6employee contribution described in item (ii) or item (B) of
7this subsection (a-10) due to application of the normal cost
8criterion, the employee contribution amount shall be
9consistent from July 1 of the fiscal year through June 30 of
10that fiscal year.
11 Such deductions beginning on the effective date and prior
12to June 30, 1947, inclusive shall be made for a future entrant
13while he is in service until he attains age 65, and for a
14present employee while he is in service until the amount so
15deducted from his salary with interest at the rate of 4% per
16annum shall be equal to the sum which would have accumulated to
17his credit from sums deducted from his salary if deductions at
18the rate herein stated had been made during his entire service
19until he attained age 65 with interest at 4% per annum for the
20period subsequent to his attainment of age 65. Such deductions
21beginning July 1, 1947 shall be made and continued for
22employees while in the service.
23 (b) (Blank). Concurrently with each employee contribution,
24the city shall contribute beginning on the effective date and
25prior to July 1, 1947, 5 3/4%; and beginning July 1, 1947 and
26prior to July 1, 1953, 7%; and beginning July 1, 1953, 6% of

SB0014 Engrossed- 59 -LRB100 06410 RPS 16449 b
1each payment of such salary until the employee attains age 65.
2 (c) Each employee contribution made prior to the date age
3and service annuity for an employee is fixed and each
4corresponding city contribution shall be allocated to the
5account of and credited to the employee for whose benefit it is
6made.
7 (d) Notwithstanding Section 1-103.1, the changes to this
8Section made by this amendatory Act of the 100th General
9Assembly apply regardless of whether the employee was in active
10service on or after the effective date of this amendatory Act.
11(Source: P.A. 81-1536.)
12 (40 ILCS 5/11-197.7 new)
13 Sec. 11-197.7. Payment of annuity other than direct. The
14board, at the written direction and request of any annuitant,
15may, solely as an accommodation to such annuitant, pay the
16annuity due him or her to a bank, savings and loan association,
17or any other financial institution insured by an agency of the
18federal government, for deposit to his or her account, or to a
19bank or trust company for deposit in a trust established by him
20or her for his benefit with such bank, savings and loan
21association, or trust company, and such annuitant may withdraw
22such direction at any time. The board may also, in the case of
23any disability beneficiary or annuitant for whom no estate
24guardian has been appointed and who is confined in a publicly
25owned and operated mental institution, pay such disability

SB0014 Engrossed- 60 -LRB100 06410 RPS 16449 b
1benefit or annuity due such person to the superintendent or
2other head of such institution or hospital for deposit to such
3person's trust fund account maintained for him or her by such
4institution or hospital, if by law such trust fund accounts are
5authorized or recognized.
6 (40 ILCS 5/11-223.1) (from Ch. 108 1/2, par. 11-223.1)
7 Sec. 11-223.1. Assignment for health, hospital and medical
8insurance.
9 The board may provide, by regulation, that any annuitant or
10pensioner, may assign his annuity or disability benefit, or any
11part thereof, for the purpose of premium payment for a
12membership for the annuitant, and his or her spouse and
13children, in a non-profit group hospital care plan or group
14medical surgical plan, provided, however, that the board may,
15in its discretion, terminate the right of assignment. Any such
16hospital or medical insurance plan may include provision for
17the beneficiaries thereof who rely on treatment by spiritual
18means alone through prayer for healing in accordance with the
19tenets and practice of a well recognized religious
20denomination.
21 Upon the adoption of a regulation permitting such
22assignment, the board shall establish and administer a plan for
23the maintenance of the insurance plan membership by the
24annuitant or pensioner.
25(Source: Laws 1965, p. 2290.)

SB0014 Engrossed- 61 -LRB100 06410 RPS 16449 b
1 (40 ILCS 5/11-230) (from Ch. 108 1/2, par. 11-230)
2 Sec. 11-230. Felony conviction.
3 None of the benefits provided in this Article shall be paid
4to any person who is convicted of any felony relating to or
5arising out of or in connection with his service as employee.
6 This section shall not operate to impair any contract or
7vested right heretofore acquired under any law or laws
8continued in this Article, nor to preclude the right to a
9refund.
10 Any refund required under this Article shall be calculated
11based on that person's contributions to the Fund, less the
12amount of any annuity benefit previously received by the person
13or his or beneficiaries. The changes made to this Section by
14this amendatory Act of the 100th General Assembly apply only to
15persons who first become members or participants under this
16Article on or after the effective date of this amendatory Act
17of the 100th General Assembly.
18 All future entrants entering service after July 11, 1955,
19shall be deemed to have consented to the provisions of this
20section as a condition of coverage.
21(Source: Laws 1963, p. 161.)
22 (40 ILCS 5/8-173.1 rep.)
23 (40 ILCS 5/11-169.1 rep.)
24 Section 10. The Illinois Pension Code is amended by

SB0014 Engrossed- 62 -LRB100 06410 RPS 16449 b
1repealing Sections 8-173.1 and 11-169.1.
2 Section 90. The State Mandates Act is amended by adding
3Section 8.41 as follows:
4 (30 ILCS 805/8.41 new)
5 Sec. 8.41. Exempt mandate. Notwithstanding Sections 6 and 8
6of this Act, no reimbursement by the State is required for the
7implementation of any mandate created by this amendatory Act of
8the 100th General Assembly.
9 Section 97. Inseverability and severability. The changes
10made by this Act are inseverable, except that the changes made
11to Sections 8-228.5 and 11-125.9 of the Illinois Pension Code
12are severable under Section 1.31 of the Statute on Statutes.
13 Section 99. Effective date. This Act takes effect upon
14becoming law.

SB0014 Engrossed- 63 -LRB100 06410 RPS 16449 b
1 INDEX
2 Statutes amended in order of appearance