Bill Text: IL SB1824 | 2023-2024 | 103rd General Assembly | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Amends the General Provisions and Illinois Municipal Retirement Fund (IMRF) Articles of the Illinois Pension Code. Provides that an authorized agent appointed after the effective date of the amendatory Act must complete a course of training regarding the duties and responsibilities of being an authorized agent no less than 3 months after his or her initial appointment. Provides that the training must be provided by the Fund and made available to all authorized agents online no less than quarterly at no cost to the authorized agent or his or her employer. In a provision that requires a participating municipality or participating instrumentality to make an additional contribution for earning increases greater than 6% or 1.5 times the increase in the consumer price index-u, provides that the Fund shall exclude earning increases due to amounts paid as required by federal or State law or court mandate or earnings increases due to the participating employee returning to the regular number of hours worked after having a temporary reduction in the number of hours worked. Provides that an elected trustee shall not be considered disqualified due to termination of participation if he or she thereafter begins participation with a different participating employer, there is no gap in service credit under the Article, and the trustee continues to meet all eligibility requirements for the same type of trustee position. Makes other changes. Effective immediately, except that certain provisions are effective January 1, 2024.
Spectrum: Partisan Bill (Democrat 4-0)
Status: (Passed) 2023-08-04 - Public Act . . . . . . . . . 103-0464 [SB1824 Detail]
Download: Illinois-2023-SB1824-Introduced.html
Bill Title: Amends the General Provisions and Illinois Municipal Retirement Fund (IMRF) Articles of the Illinois Pension Code. Provides that an authorized agent appointed after the effective date of the amendatory Act must complete a course of training regarding the duties and responsibilities of being an authorized agent no less than 3 months after his or her initial appointment. Provides that the training must be provided by the Fund and made available to all authorized agents online no less than quarterly at no cost to the authorized agent or his or her employer. In a provision that requires a participating municipality or participating instrumentality to make an additional contribution for earning increases greater than 6% or 1.5 times the increase in the consumer price index-u, provides that the Fund shall exclude earning increases due to amounts paid as required by federal or State law or court mandate or earnings increases due to the participating employee returning to the regular number of hours worked after having a temporary reduction in the number of hours worked. Provides that an elected trustee shall not be considered disqualified due to termination of participation if he or she thereafter begins participation with a different participating employer, there is no gap in service credit under the Article, and the trustee continues to meet all eligibility requirements for the same type of trustee position. Makes other changes. Effective immediately, except that certain provisions are effective January 1, 2024.
Spectrum: Partisan Bill (Democrat 4-0)
Status: (Passed) 2023-08-04 - Public Act . . . . . . . . . 103-0464 [SB1824 Detail]
Download: Illinois-2023-SB1824-Introduced.html
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1 | AN ACT concerning public employee benefits.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Pension Code is amended by | |||||||||||||||||||||||||||
5 | changing Sections 1-109, 7-105, 7-135, 7-172, and 7-174 as | |||||||||||||||||||||||||||
6 | follows:
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7 | (40 ILCS 5/1-109) (from Ch. 108 1/2, par. 1-109)
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8 | Sec. 1-109. Duties of fiduciaries. A fiduciary with
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9 | respect to a retirement system or pension fund established
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10 | under this Code shall discharge his or her duties with respect | |||||||||||||||||||||||||||
11 | to the
retirement system or pension fund solely in the | |||||||||||||||||||||||||||
12 | interest of the participants
and beneficiaries and:
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13 | (a) for the exclusive purpose of:
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14 | (1) providing benefits to participants and their | |||||||||||||||||||||||||||
15 | beneficiaries; and
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16 | (2) defraying reasonable expenses of administering | |||||||||||||||||||||||||||
17 | the retirement system
or pension fund;
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18 | (b) with the care, skill, prudence and diligence under | |||||||||||||||||||||||||||
19 | the circumstances
then prevailing that a prudent person | |||||||||||||||||||||||||||
20 | man acting in a like capacity and familiar
with such | |||||||||||||||||||||||||||
21 | matters would use in the conduct of an enterprise of a like | |||||||||||||||||||||||||||
22 | character
with like aims;
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23 | (c) by diversifying the investments of the retirement |
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1 | system
or pension fund so as to minimize the risk of large | ||||||
2 | losses, unless under
the circumstances
it is clearly | ||||||
3 | prudent not to do so; and
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4 | (d) in accordance with the provisions of the Article | ||||||
5 | of this Code
governing the retirement system or pension | ||||||
6 | fund.
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7 | (Source: P.A. 102-558, eff. 8-20-21.)
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8 | (40 ILCS 5/7-105) (from Ch. 108 1/2, par. 7-105)
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9 | Sec. 7-105. "Municipality": A city, village, incorporated | ||||||
10 | town, county,
township; a Financial Oversight Panel | ||||||
11 | established pursuant to Article 1H of the School Code; and any | ||||||
12 | school, park, sanitary, road , forest preserve, water, fire
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13 | protection, public health, river conservancy, mosquito | ||||||
14 | abatement,
tuberculosis sanitarium, public community college | ||||||
15 | district, or other local
district with general continuous | ||||||
16 | power to levy taxes on the property within
such district; now | ||||||
17 | existing or hereafter created within the State; and, for
the | ||||||
18 | purposes of providing annuities and benefits to its employees, | ||||||
19 | the fund
itself.
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20 | (Source: P.A. 97-429, eff. 8-16-11.)
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21 | (40 ILCS 5/7-135) (from Ch. 108 1/2, par. 7-135)
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22 | Sec. 7-135. Authorized agents.
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23 | (a) Each participating municipality and participating
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24 | instrumentality shall appoint an authorized agent who shall |
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1 | have the
powers and duties set forth in this section. In | ||||||
2 | absence of such
appointment, the duties of the authorized | ||||||
3 | agent shall devolve upon the
clerk or secretary of the | ||||||
4 | municipality or instrumentality, the township supervisor in | ||||||
5 | the case of a township, and in the
case of township school | ||||||
6 | trustees upon the township school treasurer.
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7 | (b) The authorized agent shall have the following powers | ||||||
8 | and duties:
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9 | 1. To certify to the fund whether or not a given person | ||||||
10 | is
authorized to participate in the fund;
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11 | 2. To certify to the fund when a participating | ||||||
12 | employee is on a
leave of absence authorized by the | ||||||
13 | municipality;
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14 | 3. To request the proper officer to cause employee | ||||||
15 | contributions to
be withheld from earnings and transmitted | ||||||
16 | to the fund;
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17 | 4. To request the proper officer to cause municipality | ||||||
18 | contributions
to be forwarded to the fund promptly;
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19 | 5. To forward promptly to all participating employees | ||||||
20 | any
communications from the fund for such employees;
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21 | 6. To forward promptly to the fund all applications, | ||||||
22 | claims, reports
and other communications delivered to him | ||||||
23 | by participating employees;
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24 | 7. To perform all duties related to the administration | ||||||
25 | of this
retirement system as requested by the fund and the | ||||||
26 | governing body of his
municipality.
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1 | (c) The governing body of each participating municipality | ||||||
2 | and
participating instrumentality may delegate any or all of | ||||||
3 | the following
powers and duties to its authorized agent:
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4 | 1. To file a petition for nomination of an executive | ||||||
5 | trustee of the
fund.
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6 | 2. To cast the ballot for election of an executive | ||||||
7 | trustee of the
fund.
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8 | If a governing body does not authorize its agent to | ||||||
9 | perform the
powers and duties set forth in this paragraph (c), | ||||||
10 | they shall be
performed by the governing body itself, unless | ||||||
11 | the governing body by
resolution duly certified to the fund | ||||||
12 | delegates them to some other
officer or employee.
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13 | (d) The delivery of any communication or document by an | ||||||
14 | employee or
a participating municipality or participating | ||||||
15 | instrumentality to its
authorized agent shall not constitute | ||||||
16 | delivery to the fund.
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17 | (e) All authorized agents appointed on or after the | ||||||
18 | effective date of this amendatory Act of the 103rd General | ||||||
19 | Assembly must complete a course of training regarding the | ||||||
20 | duties and responsibilities of being an authorized agent no | ||||||
21 | less than 3 months after his or her initial appointment. Such | ||||||
22 | training must be provided by the Fund and made available | ||||||
23 | online to all authorized agents no less than quarterly at no | ||||||
24 | cost to the authorized agent or his or her employer. | ||||||
25 | (Source: P.A. 97-328, eff. 8-12-11; 97-609, eff. 1-1-12; | ||||||
26 | 98-218, eff. 8-9-13.)
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1 | (40 ILCS 5/7-172) (from Ch. 108 1/2, par. 7-172)
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2 | Sec. 7-172. Contributions by participating municipalities | ||||||
3 | and
participating instrumentalities.
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4 | (a) Each participating municipality and each participating
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5 | instrumentality shall make payment to the fund as follows:
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6 | 1. municipality contributions in an amount determined | ||||||
7 | by applying
the municipality contribution rate to each | ||||||
8 | payment of earnings paid to
each of its participating | ||||||
9 | employees;
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10 | 2. an amount equal to the employee contributions | ||||||
11 | provided by paragraph
(a) of Section 7-173, whether or not | ||||||
12 | the employee contributions are
withheld as permitted by | ||||||
13 | that Section;
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14 | 3. all accounts receivable, together with interest | ||||||
15 | charged thereon,
as provided in Section 7-209, and any | ||||||
16 | amounts due under subsection (a-5) of Section 7-144;
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17 | 4. if it has no participating employees with current | ||||||
18 | earnings, an
amount payable which, over a closed period of | ||||||
19 | 20 years for participating municipalities and 10 years for | ||||||
20 | participating instrumentalities, will amortize, at the | ||||||
21 | effective rate for
that year, any unfunded obligation. The | ||||||
22 | unfunded obligation shall be computed as provided in | ||||||
23 | paragraph 2 of subsection (b); | ||||||
24 | 5. if it has fewer than 7 participating employees or a | ||||||
25 | negative balance in its municipality reserve, the greater |
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1 | of (A) an amount payable that, over a period of 20 years, | ||||||
2 | will amortize at the effective rate for that year any | ||||||
3 | unfunded obligation, computed as provided in paragraph 2 | ||||||
4 | of subsection (b) or (B) the amount required by paragraph | ||||||
5 | 1 of this subsection (a).
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6 | (b) A separate municipality contribution rate shall be | ||||||
7 | determined
for each calendar year for all participating | ||||||
8 | municipalities together
with all instrumentalities thereof. | ||||||
9 | The municipality contribution rate
shall be determined for | ||||||
10 | participating instrumentalities as if they were
participating | ||||||
11 | municipalities. The municipality contribution rate shall
be | ||||||
12 | the sum of the following percentages:
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13 | 1. The percentage of earnings of all the participating | ||||||
14 | employees of all
participating municipalities and | ||||||
15 | participating instrumentalities which, if paid
over the | ||||||
16 | entire period of their service, will be sufficient when | ||||||
17 | combined with
all employee contributions available for the | ||||||
18 | payment of benefits, to provide
all annuities for | ||||||
19 | participating employees, and the $3,000 death benefit
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20 | payable under Sections 7-158 and 7-164, such percentage to | ||||||
21 | be known as the
normal cost rate.
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22 | 2. The percentage of earnings of the participating | ||||||
23 | employees of each
participating municipality and | ||||||
24 | participating instrumentalities necessary
to adjust for | ||||||
25 | the difference between the present value of all benefits,
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26 | excluding temporary and total and permanent disability and |
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1 | death benefits, to
be provided for its participating | ||||||
2 | employees and the sum of its accumulated
municipality | ||||||
3 | contributions and the accumulated employee contributions | ||||||
4 | and the
present value of expected future employee and | ||||||
5 | municipality contributions
pursuant to subparagraph 1 of | ||||||
6 | this paragraph (b). This adjustment shall be
spread over a | ||||||
7 | period determined by the Board, not to exceed 30 years for | ||||||
8 | participating municipalities or 10 years for participating | ||||||
9 | instrumentalities.
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10 | 3. The percentage of earnings of the participating | ||||||
11 | employees of all
municipalities and participating | ||||||
12 | instrumentalities necessary to provide
the present value | ||||||
13 | of all temporary and total and permanent disability
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14 | benefits granted during the most recent year for which | ||||||
15 | information is
available.
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16 | 4. The percentage of earnings of the participating | ||||||
17 | employees of all
participating municipalities and | ||||||
18 | participating instrumentalities
necessary to provide the | ||||||
19 | present value of the net single sum death
benefits | ||||||
20 | expected to become payable from the reserve established | ||||||
21 | under
Section 7-206 during the year for which this rate is | ||||||
22 | fixed.
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23 | 5. The percentage of earnings necessary to meet any | ||||||
24 | deficiency
arising in the Terminated Municipality Reserve.
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25 | (c) A separate municipality contribution rate shall be | ||||||
26 | computed for
each participating municipality or participating |
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1 | instrumentality
for its sheriff's law enforcement employees.
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2 | A separate municipality contribution rate shall be | ||||||
3 | computed for the
sheriff's law enforcement employees of each | ||||||
4 | forest preserve district that
elects to have such employees. | ||||||
5 | For the period from January 1, 1986 to
December 31, 1986, such | ||||||
6 | rate shall be the forest preserve district's regular
rate plus | ||||||
7 | 2%.
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8 | In the event that the Board determines that there is an | ||||||
9 | actuarial
deficiency in the account of any municipality with | ||||||
10 | respect to a person who
has elected to participate in the Fund | ||||||
11 | under Section 3-109.1 of this Code,
the Board may adjust the | ||||||
12 | municipality's contribution rate so as to make up
that | ||||||
13 | deficiency over such reasonable period of time as the Board | ||||||
14 | may determine.
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15 | (d) The Board may establish a separate municipality | ||||||
16 | contribution
rate for all employees who are program | ||||||
17 | participants employed under the
federal Comprehensive | ||||||
18 | Employment Training Act by all of the
participating | ||||||
19 | municipalities and instrumentalities. The Board may also
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20 | provide that, in lieu of a separate municipality rate for | ||||||
21 | these
employees, a portion of the municipality contributions | ||||||
22 | for such program
participants shall be refunded or an extra | ||||||
23 | charge assessed so that the
amount of municipality | ||||||
24 | contributions retained or received by the fund
for all CETA | ||||||
25 | program participants shall be an amount equal to that which
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26 | would be provided by the separate municipality contribution |
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1 | rate for all
such program participants. Refunds shall be made | ||||||
2 | to prime sponsors of
programs upon submission of a claim | ||||||
3 | therefor and extra charges shall be
assessed to participating | ||||||
4 | municipalities and instrumentalities. In
establishing the | ||||||
5 | municipality contribution rate as provided in paragraph
(b) of | ||||||
6 | this Section, the use of a separate municipality contribution
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7 | rate for program participants or the refund of a portion of the
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8 | municipality contributions, as the case may be, may be | ||||||
9 | considered.
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10 | (e) Computations of municipality contribution rates for | ||||||
11 | the
following calendar year shall be made prior to the | ||||||
12 | beginning of each
year, from the information available at the | ||||||
13 | time the computations are
made, and on the assumption that the | ||||||
14 | employees in each participating
municipality or participating | ||||||
15 | instrumentality at such time will continue
in service until | ||||||
16 | the end of such calendar year at their respective rates
of | ||||||
17 | earnings at such time.
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18 | (f) Any municipality which is the recipient of State | ||||||
19 | allocations
representing that municipality's contributions for | ||||||
20 | retirement annuity
purposes on behalf of its employees as | ||||||
21 | provided in Section 12-21.16 of
the Illinois Public Aid Code | ||||||
22 | shall pay the allocations so
received to the Board for such | ||||||
23 | purpose. Estimates of State allocations to
be received during | ||||||
24 | any taxable year shall be considered in the
determination of | ||||||
25 | the municipality's tax rate for that year under Section
7-171. | ||||||
26 | If a special tax is levied under Section 7-171, none of the
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1 | proceeds may be used to reimburse the municipality for the | ||||||
2 | amount of State
allocations received and paid to the Board. | ||||||
3 | Any multiple-county or
consolidated health department which | ||||||
4 | receives contributions from a county
under Section 11.2 of "An | ||||||
5 | Act in relation to establishment and maintenance
of county and | ||||||
6 | multiple-county health departments", approved July 9, 1943,
as | ||||||
7 | amended, or distributions under Section 3 of the Department of | ||||||
8 | Public
Health Act, shall use these only for municipality | ||||||
9 | contributions by the
health department.
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10 | (g) Municipality contributions for the several purposes | ||||||
11 | specified
shall, for township treasurers and employees in the | ||||||
12 | offices of the
township treasurers who meet the qualifying | ||||||
13 | conditions for coverage
hereunder, be allocated among the | ||||||
14 | several school districts and parts of
school districts | ||||||
15 | serviced by such treasurers and employees in the
proportion | ||||||
16 | which the amount of school funds of each district or part of
a | ||||||
17 | district handled by the treasurer bears to the total amount of | ||||||
18 | all
school funds handled by the treasurer.
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19 | From the funds subject to allocation among districts and | ||||||
20 | parts of
districts pursuant to the School Code, the trustees | ||||||
21 | shall withhold the
proportionate share of the liability for | ||||||
22 | municipality contributions imposed
upon such districts by this | ||||||
23 | Section, in respect to such township treasurers
and employees | ||||||
24 | and remit the same to the Board.
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25 | The municipality contribution rate for an educational | ||||||
26 | service center shall
initially be the same rate for each year |
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1 | as the regional office of
education or school district
which | ||||||
2 | serves as its administrative agent. When actuarial data become
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3 | available, a separate rate shall be established as provided in | ||||||
4 | subparagraph
(i) of this Section.
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5 | The municipality contribution rate for a public agency, | ||||||
6 | other than a
vocational education cooperative, formed under | ||||||
7 | the Intergovernmental
Cooperation Act shall initially be the | ||||||
8 | average rate for the municipalities
which are parties to the | ||||||
9 | intergovernmental agreement. When actuarial data
become | ||||||
10 | available, a separate rate shall be established as provided in
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11 | subparagraph (i) of this Section.
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12 | (h) Each participating municipality and participating
| ||||||
13 | instrumentality shall make the contributions in the amounts | ||||||
14 | provided in
this Section in the manner prescribed from time to | ||||||
15 | time by the Board and
all such contributions shall be | ||||||
16 | obligations of the respective
participating municipalities and | ||||||
17 | participating instrumentalities to this
fund. The failure to | ||||||
18 | deduct any employee contributions shall not
relieve the | ||||||
19 | participating municipality or participating instrumentality
of | ||||||
20 | its obligation to this fund. Delinquent payments of | ||||||
21 | contributions
due under this Section may, with interest, be | ||||||
22 | recovered by civil action
against the participating | ||||||
23 | municipalities or participating
instrumentalities. | ||||||
24 | Municipality contributions, other than the amount
necessary | ||||||
25 | for employee contributions, for
periods of service by | ||||||
26 | employees from whose earnings no deductions were made
for |
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1 | employee contributions to the fund, may be charged to the | ||||||
2 | municipality
reserve for the municipality or participating | ||||||
3 | instrumentality.
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4 | (i) Contributions by participating instrumentalities shall | ||||||
5 | be
determined as provided herein except that the percentage | ||||||
6 | derived under
subparagraph 2 of paragraph (b) of this Section, | ||||||
7 | and the amount payable
under subparagraph 4 of paragraph (a) | ||||||
8 | of this Section, shall be based on
an amortization period of 10 | ||||||
9 | years.
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10 | (j) Notwithstanding the other provisions of this Section, | ||||||
11 | the additional unfunded liability accruing as a result of | ||||||
12 | Public Act 94-712
shall be amortized over a period of 30 years | ||||||
13 | beginning on January 1 of the
second calendar year following | ||||||
14 | the calendar year in which Public Act 94-712 takes effect, | ||||||
15 | except that the employer may provide for a longer amortization | ||||||
16 | period by adopting a resolution or ordinance specifying a | ||||||
17 | 35-year or 40-year period and submitting a certified copy of | ||||||
18 | the ordinance or resolution to the fund no later than June 1 of | ||||||
19 | the calendar year following the calendar year in which Public | ||||||
20 | Act 94-712 takes effect.
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21 | (k) If the amount of a participating employee's reported | ||||||
22 | earnings for any of the 12-month periods used to determine the | ||||||
23 | final rate of earnings exceeds the employee's 12-month | ||||||
24 | reported earnings with the same employer for the previous year | ||||||
25 | by the greater of 6% or 1.5 times the annual increase in the | ||||||
26 | Consumer Price Index-U, as established by the United States |
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1 | Department of Labor for the preceding September, the | ||||||
2 | participating municipality or participating instrumentality | ||||||
3 | that paid those earnings shall pay to the Fund, in addition to | ||||||
4 | any other contributions required under this Article, the | ||||||
5 | present value of the increase in the pension resulting from | ||||||
6 | the portion of the increase in reported earnings that is in | ||||||
7 | excess of the greater of 6% or 1.5 times the annual increase in | ||||||
8 | the Consumer Price Index-U, as determined by the Fund. This | ||||||
9 | present value shall be computed on the basis of the actuarial | ||||||
10 | assumptions and tables used in the most recent actuarial | ||||||
11 | valuation of the Fund that is available at the time of the | ||||||
12 | computation. | ||||||
13 | Whenever it determines that a payment is or may be | ||||||
14 | required under this subsection (k), the fund shall calculate | ||||||
15 | the amount of the payment and bill the participating | ||||||
16 | municipality or participating instrumentality for that amount. | ||||||
17 | The bill shall specify the calculations used to determine the | ||||||
18 | amount due. If the participating municipality or participating | ||||||
19 | instrumentality disputes the amount of the bill, it may, | ||||||
20 | within 30 days after receipt of the bill, apply to the fund in | ||||||
21 | writing for a recalculation. The application must specify in | ||||||
22 | detail the grounds of the dispute. Upon receiving a timely | ||||||
23 | application for recalculation, the fund shall review the | ||||||
24 | application and, if appropriate, recalculate the amount due.
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25 | The participating municipality and participating | ||||||
26 | instrumentality contributions required under this subsection |
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1 | (k) may be paid in the form of a lump sum within 90 days after | ||||||
2 | receipt of the bill. If the participating municipality and | ||||||
3 | participating instrumentality contributions are not paid | ||||||
4 | within 90 days after receipt of the bill, then interest will be | ||||||
5 | charged at a rate equal to the fund's annual actuarially | ||||||
6 | assumed rate of return on investment compounded annually from | ||||||
7 | the 91st day after receipt of the bill. Payments must be | ||||||
8 | concluded within 3 years after receipt of the bill by the | ||||||
9 | participating municipality or participating instrumentality. | ||||||
10 | When assessing payment for any amount due under this | ||||||
11 | subsection (k), the fund shall exclude earnings increases | ||||||
12 | resulting from overload or overtime earnings. | ||||||
13 | When assessing payment for any amount due under this | ||||||
14 | subsection (k), the fund shall exclude earnings increases | ||||||
15 | resulting from payments for unused vacation time, but only for | ||||||
16 | payments for unused vacation time made in the final 3 months of | ||||||
17 | the final rate of earnings period. | ||||||
18 | When assessing payment for any amount due under this | ||||||
19 | subsection (k), the fund shall also exclude earnings increases | ||||||
20 | attributable to standard employment promotions resulting in | ||||||
21 | increased responsibility and workload. | ||||||
22 | When assessing payment for any amount due under this | ||||||
23 | subsection (k), the fund shall exclude reportable earnings | ||||||
24 | increases resulting from periods where the member was paid | ||||||
25 | through workers' compensation. | ||||||
26 | This subsection (k) does not apply to earnings increases |
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1 | due to amounts paid as required by federal or State law or | ||||||
2 | court mandate or to earnings increases due to the | ||||||
3 | participating employee returning to the regular number of | ||||||
4 | hours worked after having a temporary reduction in the number | ||||||
5 | of hours worked. | ||||||
6 | This subsection (k) does not apply to earnings increases | ||||||
7 | paid to individuals under contracts or collective bargaining | ||||||
8 | agreements entered into, amended, or renewed before January 1, | ||||||
9 | 2012 (the effective date of Public Act 97-609), earnings | ||||||
10 | increases paid to members who are 10 years or more from | ||||||
11 | retirement eligibility, or earnings increases resulting from | ||||||
12 | an increase in the number of hours required to be worked. | ||||||
13 | When assessing payment for any amount due under this | ||||||
14 | subsection (k), the fund shall also exclude earnings | ||||||
15 | attributable to personnel policies adopted before January 1, | ||||||
16 | 2012 (the effective date of Public Act 97-609) as long as those | ||||||
17 | policies are not applicable to employees who begin service on | ||||||
18 | or after January 1, 2012 (the effective date of Public Act | ||||||
19 | 97-609). | ||||||
20 | The change made to this Section by Public Act 100-139 is a | ||||||
21 | clarification of existing law and is intended to be | ||||||
22 | retroactive to January 1, 2012 (the effective date of Public | ||||||
23 | Act 97-609). | ||||||
24 | (Source: P.A. 102-849, eff. 5-13-22.)
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25 | (40 ILCS 5/7-174) (from Ch. 108 1/2, par. 7-174)
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1 | Sec. 7-174. Board created.
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2 | (a) A board of 8 members shall
constitute a board of | ||||||
3 | trustees authorized to carry out the provisions of
this | ||||||
4 | Article. Each trustee shall be a participating employee of a
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5 | participating municipality or participating instrumentality or | ||||||
6 | an annuitant
of the Fund and no person shall be eligible to | ||||||
7 | become a trustee after January
1, 1979 who does not have the | ||||||
8 | minimum service credit in this Fund to qualify for a pension.
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9 | (b) The board shall consist of representatives of various | ||||||
10 | groups as
follows:
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11 | 1. 4 trustees shall be a chief executive officer, | ||||||
12 | chief finance
officer, or other officer, executive or | ||||||
13 | department head of a
participating municipality or | ||||||
14 | participating instrumentality, and each
such trustee shall | ||||||
15 | be designated as an executive trustee.
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16 | 2. 3 trustees shall be employees of a participating | ||||||
17 | municipality or
participating instrumentality and each | ||||||
18 | such trustee shall be designated
as an employee trustee. A | ||||||
19 | person who meets the criteria to be an executive trustee | ||||||
20 | may not serve as an employee trustee.
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21 | 3. One trustee shall be an annuitant of the Fund, who | ||||||
22 | shall be
designated the annuitant trustee.
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23 | (c) A person elected as a trustee shall qualify as a | ||||||
24 | trustee, after
declaration by the board that he has been duly | ||||||
25 | elected, upon taking and
subscribing to the constitutional | ||||||
26 | oath of office and filing same in the
office of the Fund.
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1 | (d) The term of office of each trustee shall begin upon | ||||||
2 | January 1 of
the year following the year in which he is elected | ||||||
3 | and shall continue
for a period of 5 years and until a | ||||||
4 | successor has been elected and
qualified, or until prior | ||||||
5 | resignation, death, incapacity or
disqualification.
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6 | (e) Any elected trustee (other than the annuitant trustee) | ||||||
7 | shall be
disqualified immediately upon termination of | ||||||
8 | employment with all participating
municipalities and | ||||||
9 | instrumentalities thereof or upon any change in status which
| ||||||
10 | removes any such trustee from all employments within the group | ||||||
11 | he represents.
The annuitant trustee shall be disqualified | ||||||
12 | upon termination of his or her
annuity.
| ||||||
13 | (e-5) Notwithstanding any other provision, an elected | ||||||
14 | trustee shall not be considered disqualified due to | ||||||
15 | termination of participation under subsection (e) if: | ||||||
16 | (1) he or she thereafter begins participation with a | ||||||
17 | different participating employer; | ||||||
18 | (2) there is no gap in service credit established | ||||||
19 | under this Article; and | ||||||
20 | (3) the trustee continues to meet all eligibility | ||||||
21 | requirements under subsection (b) for the same type of | ||||||
22 | trustee position. | ||||||
23 | (f) The trustees shall fill any vacancy in the board by | ||||||
24 | appointment,
for the period until the next election of | ||||||
25 | trustees, or, if the remaining
term is less than 2 years, for | ||||||
26 | the remainder of the term, and until his
successor has been |
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1 | elected and qualified.
| ||||||
2 | (g) Trustees shall serve without compensation, but shall | ||||||
3 | be
reimbursed for any reasonable expenses incurred in | ||||||
4 | attending meetings of
the board and in performing duties on | ||||||
5 | behalf of the Fund and for the
amount of any earnings withheld | ||||||
6 | by any employing municipality or
participating instrumentality | ||||||
7 | because of attendance at any board
meeting.
| ||||||
8 | (h) Each trustee shall be entitled to
one vote on any and | ||||||
9 | all actions before the board. At least 5 concurring votes
| ||||||
10 | shall be necessary for every decision or action by the board at | ||||||
11 | any of its
meetings. No decision or action shall become | ||||||
12 | effective unless presented and so
approved at a regular or | ||||||
13 | duly called special meeting of the board.
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14 | (Source: P.A. 102-479, eff. 8-20-21.)
| ||||||
15 | Section 99. Effective date. This Act takes effect upon | ||||||
16 | becoming law, except that the changes to Section 7-135 of the | ||||||
17 | Illinois Pension Code take effect January 1, 2024.
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