| Old | New | Differences | |
|---|---|---|---|
| 1 | - | Public Act 103-0464 | |
| 2 | 1 | SB1824 EnrolledLRB103 24922 RPS 51256 b SB1824 Enrolled LRB103 24922 RPS 51256 b | |
| 3 | 2 | SB1824 Enrolled LRB103 24922 RPS 51256 b | |
| 4 | - | AN ACT concerning public employee benefits. | |
| 5 | - | Be it enacted by the People of the State of Illinois, | |
| 6 | - | represented in the General Assembly: | |
| 7 | - | Section 5. The Illinois Pension Code is amended by | |
| 8 | - | changing Sections 1-109, 7-105, 7-135, 7-172, and 7-174 as | |
| 9 | - | follows: | |
| 10 | - | (40 ILCS 5/1-109) (from Ch. 108 1/2, par. 1-109) | |
| 11 | - | Sec. 1-109. Duties of fiduciaries. A fiduciary with | |
| 12 | - | respect to a retirement system or pension fund established | |
| 13 | - | under this Code shall discharge his or her duties with respect | |
| 14 | - | to the retirement system or pension fund solely in the | |
| 15 | - | interest of the participants and beneficiaries and: | |
| 16 | - | (a) for the exclusive purpose of: | |
| 17 | - | (1) providing benefits to participants and their | |
| 18 | - | beneficiaries; and | |
| 19 | - | (2) defraying reasonable expenses of administering | |
| 20 | - | the retirement system or pension fund; | |
| 21 | - | (b) with the care, skill, prudence and diligence under | |
| 22 | - | the circumstances then prevailing that a prudent person | |
| 23 | - | man acting in a like capacity and familiar with such | |
| 24 | - | matters would use in the conduct of an enterprise of a like | |
| 25 | - | character with like aims; | |
| 26 | - | (c) by diversifying the investments of the retirement | |
| 3 | + | 1 AN ACT concerning public employee benefits. | |
| 4 | + | 2 Be it enacted by the People of the State of Illinois, | |
| 5 | + | 3 represented in the General Assembly: | |
| 6 | + | 4 Section 5. The Illinois Pension Code is amended by | |
| 7 | + | 5 changing Sections 1-109, 7-105, 7-135, 7-172, and 7-174 as | |
| 8 | + | 6 follows: | |
| 9 | + | 7 (40 ILCS 5/1-109) (from Ch. 108 1/2, par. 1-109) | |
| 10 | + | 8 Sec. 1-109. Duties of fiduciaries. A fiduciary with | |
| 11 | + | 9 respect to a retirement system or pension fund established | |
| 12 | + | 10 under this Code shall discharge his or her duties with respect | |
| 13 | + | 11 to the retirement system or pension fund solely in the | |
| 14 | + | 12 interest of the participants and beneficiaries and: | |
| 15 | + | 13 (a) for the exclusive purpose of: | |
| 16 | + | 14 (1) providing benefits to participants and their | |
| 17 | + | 15 beneficiaries; and | |
| 18 | + | 16 (2) defraying reasonable expenses of administering | |
| 19 | + | 17 the retirement system or pension fund; | |
| 20 | + | 18 (b) with the care, skill, prudence and diligence under | |
| 21 | + | 19 the circumstances then prevailing that a prudent person | |
| 22 | + | 20 man acting in a like capacity and familiar with such | |
| 23 | + | 21 matters would use in the conduct of an enterprise of a like | |
| 24 | + | 22 character with like aims; | |
| 25 | + | 23 (c) by diversifying the investments of the retirement | |
| 27 | 26 | ||
| 28 | 27 | ||
| 29 | 28 | ||
| 30 | 29 | SB1824 Enrolled LRB103 24922 RPS 51256 b | |
| 31 | 30 | ||
| 32 | 31 | ||
| 33 | - | system or pension fund so as to minimize the risk of large | |
| 34 | - | losses, unless under the circumstances it is clearly | |
| 35 | - | prudent not to do so; and | |
| 36 | - | (d) in accordance with the provisions of the Article | |
| 37 | - | of this Code governing the retirement system or pension | |
| 38 | - | fund. | |
| 39 | - | (Source: P.A. 102-558, eff. 8-20-21.) | |
| 40 | - | (40 ILCS 5/7-105) (from Ch. 108 1/2, par. 7-105) | |
| 41 | - | Sec. 7-105. "Municipality": A city, village, incorporated | |
| 42 | - | town, county, township; a Financial Oversight Panel | |
| 43 | - | established pursuant to Article 1H of the School Code; and any | |
| 44 | - | school, park, sanitary, road, forest preserve, water, fire | |
| 45 | - | protection, public health, river conservancy, mosquito | |
| 46 | - | abatement, tuberculosis sanitarium, public community college | |
| 47 | - | district, or other local district with general continuous | |
| 48 | - | power to levy taxes on the property within such district; now | |
| 49 | - | existing or hereafter created within the State; and, for the | |
| 50 | - | purposes of providing annuities and benefits to its employees, | |
| 51 | - | the fund itself. | |
| 52 | - | (Source: P.A. 97-429, eff. 8-16-11.) | |
| 53 | - | (40 ILCS 5/7-135) (from Ch. 108 1/2, par. 7-135) | |
| 54 | - | Sec. 7-135. Authorized agents. | |
| 55 | - | (a) Each participating municipality and participating | |
| 56 | - | instrumentality shall appoint an authorized agent who shall | |
| 32 | + | SB1824 Enrolled- 2 -LRB103 24922 RPS 51256 b SB1824 Enrolled - 2 - LRB103 24922 RPS 51256 b | |
| 33 | + | SB1824 Enrolled - 2 - LRB103 24922 RPS 51256 b | |
| 34 | + | 1 system or pension fund so as to minimize the risk of large | |
| 35 | + | 2 losses, unless under the circumstances it is clearly | |
| 36 | + | 3 prudent not to do so; and | |
| 37 | + | 4 (d) in accordance with the provisions of the Article | |
| 38 | + | 5 of this Code governing the retirement system or pension | |
| 39 | + | 6 fund. | |
| 40 | + | 7 (Source: P.A. 102-558, eff. 8-20-21.) | |
| 41 | + | 8 (40 ILCS 5/7-105) (from Ch. 108 1/2, par. 7-105) | |
| 42 | + | 9 Sec. 7-105. "Municipality": A city, village, incorporated | |
| 43 | + | 10 town, county, township; a Financial Oversight Panel | |
| 44 | + | 11 established pursuant to Article 1H of the School Code; and any | |
| 45 | + | 12 school, park, sanitary, road, forest preserve, water, fire | |
| 46 | + | 13 protection, public health, river conservancy, mosquito | |
| 47 | + | 14 abatement, tuberculosis sanitarium, public community college | |
| 48 | + | 15 district, or other local district with general continuous | |
| 49 | + | 16 power to levy taxes on the property within such district; now | |
| 50 | + | 17 existing or hereafter created within the State; and, for the | |
| 51 | + | 18 purposes of providing annuities and benefits to its employees, | |
| 52 | + | 19 the fund itself. | |
| 53 | + | 20 (Source: P.A. 97-429, eff. 8-16-11.) | |
| 54 | + | 21 (40 ILCS 5/7-135) (from Ch. 108 1/2, par. 7-135) | |
| 55 | + | 22 Sec. 7-135. Authorized agents. | |
| 56 | + | 23 (a) Each participating municipality and participating | |
| 57 | + | 24 instrumentality shall appoint an authorized agent who shall | |
| 57 | 58 | ||
| 58 | 59 | ||
| 59 | - | have the powers and duties set forth in this section. In | |
| 60 | - | absence of such appointment, the duties of the authorized | |
| 61 | - | agent shall devolve upon the clerk or secretary of the | |
| 62 | - | municipality or instrumentality, the township supervisor in | |
| 63 | - | the case of a township, and in the case of township school | |
| 64 | - | trustees upon the township school treasurer. | |
| 65 | - | (b) The authorized agent shall have the following powers | |
| 66 | - | and duties: | |
| 67 | - | 1. To certify to the fund whether or not a given person | |
| 68 | - | is authorized to participate in the fund; | |
| 69 | - | 2. To certify to the fund when a participating | |
| 70 | - | employee is on a leave of absence authorized by the | |
| 71 | - | municipality; | |
| 72 | - | 3. To request the proper officer to cause employee | |
| 73 | - | contributions to be withheld from earnings and transmitted | |
| 74 | - | to the fund; | |
| 75 | - | 4. To request the proper officer to cause municipality | |
| 76 | - | contributions to be forwarded to the fund promptly; | |
| 77 | - | 5. To forward promptly to all participating employees | |
| 78 | - | any communications from the fund for such employees; | |
| 79 | - | 6. To forward promptly to the fund all applications, | |
| 80 | - | claims, reports and other communications delivered to him | |
| 81 | - | by participating employees; | |
| 82 | - | 7. To perform all duties related to the administration | |
| 83 | - | of this retirement system as requested by the fund and the | |
| 84 | - | governing body of his municipality. | |
| 85 | 60 | ||
| 86 | 61 | ||
| 87 | - | (c) The governing body of each participating municipality | |
| 88 | - | and participating instrumentality may delegate any or all of | |
| 89 | - | the following powers and duties to its authorized agent: | |
| 90 | - | 1. To file a petition for nomination of an executive | |
| 91 | - | trustee of the fund. | |
| 92 | - | 2. To cast the ballot for election of an executive | |
| 93 | - | trustee of the fund. | |
| 94 | - | If a governing body does not authorize its agent to | |
| 95 | - | perform the powers and duties set forth in this paragraph (c), | |
| 96 | - | they shall be performed by the governing body itself, unless | |
| 97 | - | the governing body by resolution duly certified to the fund | |
| 98 | - | delegates them to some other officer or employee. | |
| 99 | - | (d) The delivery of any communication or document by an | |
| 100 | - | employee or a participating municipality or participating | |
| 101 | - | instrumentality to its authorized agent shall not constitute | |
| 102 | - | delivery to the fund. | |
| 103 | - | (e) All authorized agents appointed on or after the | |
| 104 | - | effective date of this amendatory Act of the 103rd General | |
| 105 | - | Assembly must complete a course of training regarding the | |
| 106 | - | duties and responsibilities of being an authorized agent no | |
| 107 | - | less than 3 months after his or her initial appointment. Such | |
| 108 | - | training must be provided by the Fund and made available | |
| 109 | - | online to all authorized agents no less than quarterly at no | |
| 110 | - | cost to the authorized agent or his or her employer. | |
| 111 | - | (Source: P.A. 97-328, eff. 8-12-11; 97-609, eff. 1-1-12; | |
| 112 | - | 98-218, eff. 8-9-13.) | |
| 62 | + | ||
| 63 | + | SB1824 Enrolled - 2 - LRB103 24922 RPS 51256 b | |
| 113 | 64 | ||
| 114 | 65 | ||
| 115 | - | (40 ILCS 5/7-172) (from Ch. 108 1/2, par. 7-172) | |
| 116 | - | Sec. 7-172. Contributions by participating municipalities | |
| 117 | - | and participating instrumentalities. | |
| 118 | - | (a) Each participating municipality and each participating | |
| 119 | - | instrumentality shall make payment to the fund as follows: | |
| 120 | - | 1. municipality contributions in an amount determined | |
| 121 | - | by applying the municipality contribution rate to each | |
| 122 | - | payment of earnings paid to each of its participating | |
| 123 | - | employees; | |
| 124 | - | 2. an amount equal to the employee contributions | |
| 125 | - | provided by paragraph (a) of Section 7-173, whether or not | |
| 126 | - | the employee contributions are withheld as permitted by | |
| 127 | - | that Section; | |
| 128 | - | 3. all accounts receivable, together with interest | |
| 129 | - | charged thereon, as provided in Section 7-209, and any | |
| 130 | - | amounts due under subsection (a-5) of Section 7-144; | |
| 131 | - | 4. if it has no participating employees with current | |
| 132 | - | earnings, an amount payable which, over a closed period of | |
| 133 | - | 20 years for participating municipalities and 10 years for | |
| 134 | - | participating instrumentalities, will amortize, at the | |
| 135 | - | effective rate for that year, any unfunded obligation. The | |
| 136 | - | unfunded obligation shall be computed as provided in | |
| 137 | - | paragraph 2 of subsection (b); | |
| 138 | - | 5. if it has fewer than 7 participating employees or a | |
| 139 | - | negative balance in its municipality reserve, the greater | |
| 66 | + | SB1824 Enrolled- 3 -LRB103 24922 RPS 51256 b SB1824 Enrolled - 3 - LRB103 24922 RPS 51256 b | |
| 67 | + | SB1824 Enrolled - 3 - LRB103 24922 RPS 51256 b | |
| 68 | + | 1 have the powers and duties set forth in this section. In | |
| 69 | + | 2 absence of such appointment, the duties of the authorized | |
| 70 | + | 3 agent shall devolve upon the clerk or secretary of the | |
| 71 | + | 4 municipality or instrumentality, the township supervisor in | |
| 72 | + | 5 the case of a township, and in the case of township school | |
| 73 | + | 6 trustees upon the township school treasurer. | |
| 74 | + | 7 (b) The authorized agent shall have the following powers | |
| 75 | + | 8 and duties: | |
| 76 | + | 9 1. To certify to the fund whether or not a given person | |
| 77 | + | 10 is authorized to participate in the fund; | |
| 78 | + | 11 2. To certify to the fund when a participating | |
| 79 | + | 12 employee is on a leave of absence authorized by the | |
| 80 | + | 13 municipality; | |
| 81 | + | 14 3. To request the proper officer to cause employee | |
| 82 | + | 15 contributions to be withheld from earnings and transmitted | |
| 83 | + | 16 to the fund; | |
| 84 | + | 17 4. To request the proper officer to cause municipality | |
| 85 | + | 18 contributions to be forwarded to the fund promptly; | |
| 86 | + | 19 5. To forward promptly to all participating employees | |
| 87 | + | 20 any communications from the fund for such employees; | |
| 88 | + | 21 6. To forward promptly to the fund all applications, | |
| 89 | + | 22 claims, reports and other communications delivered to him | |
| 90 | + | 23 by participating employees; | |
| 91 | + | 24 7. To perform all duties related to the administration | |
| 92 | + | 25 of this retirement system as requested by the fund and the | |
| 93 | + | 26 governing body of his municipality. | |
| 140 | 94 | ||
| 141 | 95 | ||
| 142 | - | of (A) an amount payable that, over a period of 20 years, | |
| 143 | - | will amortize at the effective rate for that year any | |
| 144 | - | unfunded obligation, computed as provided in paragraph 2 | |
| 145 | - | of subsection (b) or (B) the amount required by paragraph | |
| 146 | - | 1 of this subsection (a). | |
| 147 | - | (b) A separate municipality contribution rate shall be | |
| 148 | - | determined for each calendar year for all participating | |
| 149 | - | municipalities together with all instrumentalities thereof. | |
| 150 | - | The municipality contribution rate shall be determined for | |
| 151 | - | participating instrumentalities as if they were participating | |
| 152 | - | municipalities. The municipality contribution rate shall be | |
| 153 | - | the sum of the following percentages: | |
| 154 | - | 1. The percentage of earnings of all the participating | |
| 155 | - | employees of all participating municipalities and | |
| 156 | - | participating instrumentalities which, if paid over the | |
| 157 | - | entire period of their service, will be sufficient when | |
| 158 | - | combined with all employee contributions available for the | |
| 159 | - | payment of benefits, to provide all annuities for | |
| 160 | - | participating employees, and the $3,000 death benefit | |
| 161 | - | payable under Sections 7-158 and 7-164, such percentage to | |
| 162 | - | be known as the normal cost rate. | |
| 163 | - | 2. The percentage of earnings of the participating | |
| 164 | - | employees of each participating municipality and | |
| 165 | - | participating instrumentalities necessary to adjust for | |
| 166 | - | the difference between the present value of all benefits, | |
| 167 | - | excluding temporary and total and permanent disability and | |
| 168 | 96 | ||
| 169 | 97 | ||
| 170 | - | death benefits, to be provided for its participating | |
| 171 | - | employees and the sum of its accumulated municipality | |
| 172 | - | contributions and the accumulated employee contributions | |
| 173 | - | and the present value of expected future employee and | |
| 174 | - | municipality contributions pursuant to subparagraph 1 of | |
| 175 | - | this paragraph (b). This adjustment shall be spread over a | |
| 176 | - | period determined by the Board, not to exceed 30 years for | |
| 177 | - | participating municipalities or 10 years for participating | |
| 178 | - | instrumentalities. | |
| 179 | - | 3. The percentage of earnings of the participating | |
| 180 | - | employees of all municipalities and participating | |
| 181 | - | instrumentalities necessary to provide the present value | |
| 182 | - | of all temporary and total and permanent disability | |
| 183 | - | benefits granted during the most recent year for which | |
| 184 | - | information is available. | |
| 185 | - | 4. The percentage of earnings of the participating | |
| 186 | - | employees of all participating municipalities and | |
| 187 | - | participating instrumentalities necessary to provide the | |
| 188 | - | present value of the net single sum death benefits | |
| 189 | - | expected to become payable from the reserve established | |
| 190 | - | under Section 7-206 during the year for which this rate is | |
| 191 | - | fixed. | |
| 192 | - | 5. The percentage of earnings necessary to meet any | |
| 193 | - | deficiency arising in the Terminated Municipality Reserve. | |
| 194 | - | (c) A separate municipality contribution rate shall be | |
| 195 | - | computed for each participating municipality or participating | |
| 98 | + | ||
| 99 | + | SB1824 Enrolled - 3 - LRB103 24922 RPS 51256 b | |
| 196 | 100 | ||
| 197 | 101 | ||
| 198 | - | instrumentality for its sheriff's law enforcement employees. | |
| 199 | - | A separate municipality contribution rate shall be | |
| 200 | - | computed for the sheriff's law enforcement employees of each | |
| 201 | - | forest preserve district that elects to have such employees. | |
| 202 | - | For the period from January 1, 1986 to December 31, 1986, such | |
| 203 | - | rate shall be the forest preserve district's regular rate plus | |
| 204 | - | 2%. | |
| 205 | - | In the event that the Board determines that there is an | |
| 206 | - | actuarial deficiency in the account of any municipality with | |
| 207 | - | respect to a person who has elected to participate in the Fund | |
| 208 | - | under Section 3-109.1 of this Code, the Board may adjust the | |
| 209 | - | municipality's contribution rate so as to make up that | |
| 210 | - | deficiency over such reasonable period of time as the Board | |
| 211 | - | may determine. | |
| 212 | - | (d) The Board may establish a separate municipality | |
| 213 | - | contribution rate for all employees who are program | |
| 214 | - | participants employed under the federal Comprehensive | |
| 215 | - | Employment Training Act by all of the participating | |
| 216 | - | municipalities and instrumentalities. The Board may also | |
| 217 | - | provide that, in lieu of a separate municipality rate for | |
| 218 | - | these employees, a portion of the municipality contributions | |
| 219 | - | for such program participants shall be refunded or an extra | |
| 220 | - | charge assessed so that the amount of municipality | |
| 221 | - | contributions retained or received by the fund for all CETA | |
| 222 | - | program participants shall be an amount equal to that which | |
| 223 | - | would be provided by the separate municipality contribution | |
| 102 | + | SB1824 Enrolled- 4 -LRB103 24922 RPS 51256 b SB1824 Enrolled - 4 - LRB103 24922 RPS 51256 b | |
| 103 | + | SB1824 Enrolled - 4 - LRB103 24922 RPS 51256 b | |
| 104 | + | 1 (c) The governing body of each participating municipality | |
| 105 | + | 2 and participating instrumentality may delegate any or all of | |
| 106 | + | 3 the following powers and duties to its authorized agent: | |
| 107 | + | 4 1. To file a petition for nomination of an executive | |
| 108 | + | 5 trustee of the fund. | |
| 109 | + | 6 2. To cast the ballot for election of an executive | |
| 110 | + | 7 trustee of the fund. | |
| 111 | + | 8 If a governing body does not authorize its agent to | |
| 112 | + | 9 perform the powers and duties set forth in this paragraph (c), | |
| 113 | + | 10 they shall be performed by the governing body itself, unless | |
| 114 | + | 11 the governing body by resolution duly certified to the fund | |
| 115 | + | 12 delegates them to some other officer or employee. | |
| 116 | + | 13 (d) The delivery of any communication or document by an | |
| 117 | + | 14 employee or a participating municipality or participating | |
| 118 | + | 15 instrumentality to its authorized agent shall not constitute | |
| 119 | + | 16 delivery to the fund. | |
| 120 | + | 17 (e) All authorized agents appointed on or after the | |
| 121 | + | 18 effective date of this amendatory Act of the 103rd General | |
| 122 | + | 19 Assembly must complete a course of training regarding the | |
| 123 | + | 20 duties and responsibilities of being an authorized agent no | |
| 124 | + | 21 less than 3 months after his or her initial appointment. Such | |
| 125 | + | 22 training must be provided by the Fund and made available | |
| 126 | + | 23 online to all authorized agents no less than quarterly at no | |
| 127 | + | 24 cost to the authorized agent or his or her employer. | |
| 128 | + | 25 (Source: P.A. 97-328, eff. 8-12-11; 97-609, eff. 1-1-12; | |
| 129 | + | 26 98-218, eff. 8-9-13.) | |
| 224 | 130 | ||
| 225 | 131 | ||
| 226 | - | rate for all such program participants. Refunds shall be made | |
| 227 | - | to prime sponsors of programs upon submission of a claim | |
| 228 | - | therefor and extra charges shall be assessed to participating | |
| 229 | - | municipalities and instrumentalities. In establishing the | |
| 230 | - | municipality contribution rate as provided in paragraph (b) of | |
| 231 | - | this Section, the use of a separate municipality contribution | |
| 232 | - | rate for program participants or the refund of a portion of the | |
| 233 | - | municipality contributions, as the case may be, may be | |
| 234 | - | considered. | |
| 235 | - | (e) Computations of municipality contribution rates for | |
| 236 | - | the following calendar year shall be made prior to the | |
| 237 | - | beginning of each year, from the information available at the | |
| 238 | - | time the computations are made, and on the assumption that the | |
| 239 | - | employees in each participating municipality or participating | |
| 240 | - | instrumentality at such time will continue in service until | |
| 241 | - | the end of such calendar year at their respective rates of | |
| 242 | - | earnings at such time. | |
| 243 | - | (f) Any municipality which is the recipient of State | |
| 244 | - | allocations representing that municipality's contributions for | |
| 245 | - | retirement annuity purposes on behalf of its employees as | |
| 246 | - | provided in Section 12-21.16 of the Illinois Public Aid Code | |
| 247 | - | shall pay the allocations so received to the Board for such | |
| 248 | - | purpose. Estimates of State allocations to be received during | |
| 249 | - | any taxable year shall be considered in the determination of | |
| 250 | - | the municipality's tax rate for that year under Section 7-171. | |
| 251 | - | If a special tax is levied under Section 7-171, none of the | |
| 252 | 132 | ||
| 253 | 133 | ||
| 254 | - | proceeds may be used to reimburse the municipality for the | |
| 255 | - | amount of State allocations received and paid to the Board. | |
| 256 | - | Any multiple-county or consolidated health department which | |
| 257 | - | receives contributions from a county under Section 11.2 of "An | |
| 258 | - | Act in relation to establishment and maintenance of county and | |
| 259 | - | multiple-county health departments", approved July 9, 1943, as | |
| 260 | - | amended, or distributions under Section 3 of the Department of | |
| 261 | - | Public Health Act, shall use these only for municipality | |
| 262 | - | contributions by the health department. | |
| 263 | - | (g) Municipality contributions for the several purposes | |
| 264 | - | specified shall, for township treasurers and employees in the | |
| 265 | - | offices of the township treasurers who meet the qualifying | |
| 266 | - | conditions for coverage hereunder, be allocated among the | |
| 267 | - | several school districts and parts of school districts | |
| 268 | - | serviced by such treasurers and employees in the proportion | |
| 269 | - | which the amount of school funds of each district or part of a | |
| 270 | - | district handled by the treasurer bears to the total amount of | |
| 271 | - | all school funds handled by the treasurer. | |
| 272 | - | From the funds subject to allocation among districts and | |
| 273 | - | parts of districts pursuant to the School Code, the trustees | |
| 274 | - | shall withhold the proportionate share of the liability for | |
| 275 | - | municipality contributions imposed upon such districts by this | |
| 276 | - | Section, in respect to such township treasurers and employees | |
| 277 | - | and remit the same to the Board. | |
| 278 | - | The municipality contribution rate for an educational | |
| 279 | - | service center shall initially be the same rate for each year | |
| 134 | + | ||
| 135 | + | SB1824 Enrolled - 4 - LRB103 24922 RPS 51256 b | |
| 280 | 136 | ||
| 281 | 137 | ||
| 282 | - | as the regional office of education or school district which | |
| 283 | - | serves as its administrative agent. When actuarial data become | |
| 284 | - | available, a separate rate shall be established as provided in | |
| 285 | - | subparagraph (i) of this Section. | |
| 286 | - | The municipality contribution rate for a public agency, | |
| 287 | - | other than a vocational education cooperative, formed under | |
| 288 | - | the Intergovernmental Cooperation Act shall initially be the | |
| 289 | - | average rate for the municipalities which are parties to the | |
| 290 | - | intergovernmental agreement. When actuarial data become | |
| 291 | - | available, a separate rate shall be established as provided in | |
| 292 | - | subparagraph (i) of this Section. | |
| 293 | - | (h) Each participating municipality and participating | |
| 294 | - | instrumentality shall make the contributions in the amounts | |
| 295 | - | provided in this Section in the manner prescribed from time to | |
| 296 | - | time by the Board and all such contributions shall be | |
| 297 | - | obligations of the respective participating municipalities and | |
| 298 | - | participating instrumentalities to this fund. The failure to | |
| 299 | - | deduct any employee contributions shall not relieve the | |
| 300 | - | participating municipality or participating instrumentality of | |
| 301 | - | its obligation to this fund. Delinquent payments of | |
| 302 | - | contributions due under this Section may, with interest, be | |
| 303 | - | recovered by civil action against the participating | |
| 304 | - | municipalities or participating instrumentalities. | |
| 305 | - | Municipality contributions, other than the amount necessary | |
| 306 | - | for employee contributions, for periods of service by | |
| 307 | - | employees from whose earnings no deductions were made for | |
| 138 | + | SB1824 Enrolled- 5 -LRB103 24922 RPS 51256 b SB1824 Enrolled - 5 - LRB103 24922 RPS 51256 b | |
| 139 | + | SB1824 Enrolled - 5 - LRB103 24922 RPS 51256 b | |
| 140 | + | 1 (40 ILCS 5/7-172) (from Ch. 108 1/2, par. 7-172) | |
| 141 | + | 2 Sec. 7-172. Contributions by participating municipalities | |
| 142 | + | 3 and participating instrumentalities. | |
| 143 | + | 4 (a) Each participating municipality and each participating | |
| 144 | + | 5 instrumentality shall make payment to the fund as follows: | |
| 145 | + | 6 1. municipality contributions in an amount determined | |
| 146 | + | 7 by applying the municipality contribution rate to each | |
| 147 | + | 8 payment of earnings paid to each of its participating | |
| 148 | + | 9 employees; | |
| 149 | + | 10 2. an amount equal to the employee contributions | |
| 150 | + | 11 provided by paragraph (a) of Section 7-173, whether or not | |
| 151 | + | 12 the employee contributions are withheld as permitted by | |
| 152 | + | 13 that Section; | |
| 153 | + | 14 3. all accounts receivable, together with interest | |
| 154 | + | 15 charged thereon, as provided in Section 7-209, and any | |
| 155 | + | 16 amounts due under subsection (a-5) of Section 7-144; | |
| 156 | + | 17 4. if it has no participating employees with current | |
| 157 | + | 18 earnings, an amount payable which, over a closed period of | |
| 158 | + | 19 20 years for participating municipalities and 10 years for | |
| 159 | + | 20 participating instrumentalities, will amortize, at the | |
| 160 | + | 21 effective rate for that year, any unfunded obligation. The | |
| 161 | + | 22 unfunded obligation shall be computed as provided in | |
| 162 | + | 23 paragraph 2 of subsection (b); | |
| 163 | + | 24 5. if it has fewer than 7 participating employees or a | |
| 164 | + | 25 negative balance in its municipality reserve, the greater | |
| 308 | 165 | ||
| 309 | 166 | ||
| 310 | - | employee contributions to the fund, may be charged to the | |
| 311 | - | municipality reserve for the municipality or participating | |
| 312 | - | instrumentality. | |
| 313 | - | (i) Contributions by participating instrumentalities shall | |
| 314 | - | be determined as provided herein except that the percentage | |
| 315 | - | derived under subparagraph 2 of paragraph (b) of this Section, | |
| 316 | - | and the amount payable under subparagraph 4 of paragraph (a) | |
| 317 | - | of this Section, shall be based on an amortization period of 10 | |
| 318 | - | years. | |
| 319 | - | (j) Notwithstanding the other provisions of this Section, | |
| 320 | - | the additional unfunded liability accruing as a result of | |
| 321 | - | Public Act 94-712 shall be amortized over a period of 30 years | |
| 322 | - | beginning on January 1 of the second calendar year following | |
| 323 | - | the calendar year in which Public Act 94-712 takes effect, | |
| 324 | - | except that the employer may provide for a longer amortization | |
| 325 | - | period by adopting a resolution or ordinance specifying a | |
| 326 | - | 35-year or 40-year period and submitting a certified copy of | |
| 327 | - | the ordinance or resolution to the fund no later than June 1 of | |
| 328 | - | the calendar year following the calendar year in which Public | |
| 329 | - | Act 94-712 takes effect. | |
| 330 | - | (k) If the amount of a participating employee's reported | |
| 331 | - | earnings for any of the 12-month periods used to determine the | |
| 332 | - | final rate of earnings exceeds the employee's 12-month | |
| 333 | - | reported earnings with the same employer for the previous year | |
| 334 | - | by the greater of 6% or 1.5 times the annual increase in the | |
| 335 | - | Consumer Price Index-U, as established by the United States | |
| 336 | 167 | ||
| 337 | 168 | ||
| 338 | - | Department of Labor for the preceding September, the | |
| 339 | - | participating municipality or participating instrumentality | |
| 340 | - | that paid those earnings shall pay to the Fund, in addition to | |
| 341 | - | any other contributions required under this Article, the | |
| 342 | - | present value of the increase in the pension resulting from | |
| 343 | - | the portion of the increase in reported earnings that is in | |
| 344 | - | excess of the greater of 6% or 1.5 times the annual increase in | |
| 345 | - | the Consumer Price Index-U, as determined by the Fund. This | |
| 346 | - | present value shall be computed on the basis of the actuarial | |
| 347 | - | assumptions and tables used in the most recent actuarial | |
| 348 | - | valuation of the Fund that is available at the time of the | |
| 349 | - | computation. | |
| 350 | - | Whenever it determines that a payment is or may be | |
| 351 | - | required under this subsection (k), the fund shall calculate | |
| 352 | - | the amount of the payment and bill the participating | |
| 353 | - | municipality or participating instrumentality for that amount. | |
| 354 | - | The bill shall specify the calculations used to determine the | |
| 355 | - | amount due. If the participating municipality or participating | |
| 356 | - | instrumentality disputes the amount of the bill, it may, | |
| 357 | - | within 30 days after receipt of the bill, apply to the fund in | |
| 358 | - | writing for a recalculation. The application must specify in | |
| 359 | - | detail the grounds of the dispute. Upon receiving a timely | |
| 360 | - | application for recalculation, the fund shall review the | |
| 361 | - | application and, if appropriate, recalculate the amount due. | |
| 362 | - | The participating municipality and participating | |
| 363 | - | instrumentality contributions required under this subsection | |
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| 365 | 172 | ||
| 366 | - | (k) may be paid in the form of a lump sum within 90 days after | |
| 367 | - | receipt of the bill. If the participating municipality and | |
| 368 | - | participating instrumentality contributions are not paid | |
| 369 | - | within 90 days after receipt of the bill, then interest will be | |
| 370 | - | charged at a rate equal to the fund's annual actuarially | |
| 371 | - | assumed rate of return on investment compounded annually from | |
| 372 | - | the 91st day after receipt of the bill. Payments must be | |
| 373 | - | concluded within 3 years after receipt of the bill by the | |
| 374 | - | participating municipality or participating instrumentality. | |
| 375 | - | When assessing payment for any amount due under this | |
| 376 | - | subsection (k), the fund shall exclude earnings increases | |
| 377 | - | resulting from overload or overtime earnings. | |
| 378 | - | When assessing payment for any amount due under this | |
| 379 | - | subsection (k), the fund shall exclude earnings increases | |
| 380 | - | resulting from payments for unused vacation time, but only for | |
| 381 | - | payments for unused vacation time made in the final 3 months of | |
| 382 | - | the final rate of earnings period. | |
| 383 | - | When assessing payment for any amount due under this | |
| 384 | - | subsection (k), the fund shall also exclude earnings increases | |
| 385 | - | attributable to standard employment promotions resulting in | |
| 386 | - | increased responsibility and workload. | |
| 387 | - | When assessing payment for any amount due under this | |
| 388 | - | subsection (k), the fund shall exclude reportable earnings | |
| 389 | - | increases resulting from periods where the member was paid | |
| 390 | - | through workers' compensation. | |
| 391 | - | This subsection (k) does not apply to earnings increases | |
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| 175 | + | 1 of (A) an amount payable that, over a period of 20 years, | |
| 176 | + | 2 will amortize at the effective rate for that year any | |
| 177 | + | 3 unfunded obligation, computed as provided in paragraph 2 | |
| 178 | + | 4 of subsection (b) or (B) the amount required by paragraph | |
| 179 | + | 5 1 of this subsection (a). | |
| 180 | + | 6 (b) A separate municipality contribution rate shall be | |
| 181 | + | 7 determined for each calendar year for all participating | |
| 182 | + | 8 municipalities together with all instrumentalities thereof. | |
| 183 | + | 9 The municipality contribution rate shall be determined for | |
| 184 | + | 10 participating instrumentalities as if they were participating | |
| 185 | + | 11 municipalities. The municipality contribution rate shall be | |
| 186 | + | 12 the sum of the following percentages: | |
| 187 | + | 13 1. The percentage of earnings of all the participating | |
| 188 | + | 14 employees of all participating municipalities and | |
| 189 | + | 15 participating instrumentalities which, if paid over the | |
| 190 | + | 16 entire period of their service, will be sufficient when | |
| 191 | + | 17 combined with all employee contributions available for the | |
| 192 | + | 18 payment of benefits, to provide all annuities for | |
| 193 | + | 19 participating employees, and the $3,000 death benefit | |
| 194 | + | 20 payable under Sections 7-158 and 7-164, such percentage to | |
| 195 | + | 21 be known as the normal cost rate. | |
| 196 | + | 22 2. The percentage of earnings of the participating | |
| 197 | + | 23 employees of each participating municipality and | |
| 198 | + | 24 participating instrumentalities necessary to adjust for | |
| 199 | + | 25 the difference between the present value of all benefits, | |
| 200 | + | 26 excluding temporary and total and permanent disability and | |
| 392 | 201 | ||
| 393 | 202 | ||
| 394 | - | due to amounts paid as required by federal or State law or | |
| 395 | - | court mandate or to earnings increases due to the | |
| 396 | - | participating employee returning to the regular number of | |
| 397 | - | hours worked after having a temporary reduction in the number | |
| 398 | - | of hours worked. | |
| 399 | - | This subsection (k) does not apply to earnings increases | |
| 400 | - | paid to individuals under contracts or collective bargaining | |
| 401 | - | agreements entered into, amended, or renewed before January 1, | |
| 402 | - | 2012 (the effective date of Public Act 97-609), earnings | |
| 403 | - | increases paid to members who are 10 years or more from | |
| 404 | - | retirement eligibility, or earnings increases resulting from | |
| 405 | - | an increase in the number of hours required to be worked. | |
| 406 | - | When assessing payment for any amount due under this | |
| 407 | - | subsection (k), the fund shall also exclude earnings | |
| 408 | - | attributable to personnel policies adopted before January 1, | |
| 409 | - | 2012 (the effective date of Public Act 97-609) as long as those | |
| 410 | - | policies are not applicable to employees who begin service on | |
| 411 | - | or after January 1, 2012 (the effective date of Public Act | |
| 412 | - | 97-609). | |
| 413 | - | The change made to this Section by Public Act 100-139 is a | |
| 414 | - | clarification of existing law and is intended to be | |
| 415 | - | retroactive to January 1, 2012 (the effective date of Public | |
| 416 | - | Act 97-609). | |
| 417 | - | (Source: P.A. 102-849, eff. 5-13-22.) | |
| 418 | - | (40 ILCS 5/7-174) (from Ch. 108 1/2, par. 7-174) | |
| 419 | 203 | ||
| 420 | 204 | ||
| 421 | - | Sec. 7-174. Board created. | |
| 422 | - | (a) A board of 8 members shall constitute a board of | |
| 423 | - | trustees authorized to carry out the provisions of this | |
| 424 | - | Article. Each trustee shall be a participating employee of a | |
| 425 | - | participating municipality or participating instrumentality or | |
| 426 | - | an annuitant of the Fund and no person shall be eligible to | |
| 427 | - | become a trustee after January 1, 1979 who does not have the | |
| 428 | - | minimum service credit in this Fund to qualify for a pension. | |
| 429 | - | (b) The board shall consist of representatives of various | |
| 430 | - | groups as follows: | |
| 431 | - | 1. 4 trustees shall be a chief executive officer, | |
| 432 | - | chief finance officer, or other officer, executive or | |
| 433 | - | department head of a participating municipality or | |
| 434 | - | participating instrumentality, and each such trustee shall | |
| 435 | - | be designated as an executive trustee. | |
| 436 | - | 2. 3 trustees shall be employees of a participating | |
| 437 | - | municipality or participating instrumentality and each | |
| 438 | - | such trustee shall be designated as an employee trustee. A | |
| 439 | - | person who meets the criteria to be an executive trustee | |
| 440 | - | may not serve as an employee trustee. | |
| 441 | - | 3. One trustee shall be an annuitant of the Fund, who | |
| 442 | - | shall be designated the annuitant trustee. | |
| 443 | - | (c) A person elected as a trustee shall qualify as a | |
| 444 | - | trustee, after declaration by the board that he has been duly | |
| 445 | - | elected, upon taking and subscribing to the constitutional | |
| 446 | - | oath of office and filing same in the office of the Fund. | |
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| 447 | 207 | ||
| 448 | 208 | ||
| 449 | - | (d) The term of office of each trustee shall begin upon | |
| 450 | - | January 1 of the year following the year in which he is elected | |
| 451 | - | and shall continue for a period of 5 years and until a | |
| 452 | - | successor has been elected and qualified, or until prior | |
| 453 | - | resignation, death, incapacity or disqualification. | |
| 454 | - | (e) Any elected trustee (other than the annuitant trustee) | |
| 455 | - | shall be disqualified immediately upon termination of | |
| 456 | - | employment with all participating municipalities and | |
| 457 | - | instrumentalities thereof or upon any change in status which | |
| 458 | - | removes any such trustee from all employments within the group | |
| 459 | - | he represents. The annuitant trustee shall be disqualified | |
| 460 | - | upon termination of his or her annuity. | |
| 461 | - | (e-5) Notwithstanding any other provision, an elected | |
| 462 | - | trustee shall not be considered disqualified due to | |
| 463 | - | termination of participation under subsection (e) if: | |
| 464 | - | (1) he or she thereafter begins participation with a | |
| 465 | - | different participating employer; | |
| 466 | - | (2) there is no gap in service credit established | |
| 467 | - | under this Article; and | |
| 468 | - | (3) the trustee continues to meet all eligibility | |
| 469 | - | requirements under subsection (b) for the same type of | |
| 470 | - | trustee position. | |
| 471 | - | (f) The trustees shall fill any vacancy in the board by | |
| 472 | - | appointment, for the period until the next election of | |
| 473 | - | trustees, or, if the remaining term is less than 2 years, for | |
| 474 | - | the remainder of the term, and until his successor has been | |
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| 211 | + | 1 death benefits, to be provided for its participating | |
| 212 | + | 2 employees and the sum of its accumulated municipality | |
| 213 | + | 3 contributions and the accumulated employee contributions | |
| 214 | + | 4 and the present value of expected future employee and | |
| 215 | + | 5 municipality contributions pursuant to subparagraph 1 of | |
| 216 | + | 6 this paragraph (b). This adjustment shall be spread over a | |
| 217 | + | 7 period determined by the Board, not to exceed 30 years for | |
| 218 | + | 8 participating municipalities or 10 years for participating | |
| 219 | + | 9 instrumentalities. | |
| 220 | + | 10 3. The percentage of earnings of the participating | |
| 221 | + | 11 employees of all municipalities and participating | |
| 222 | + | 12 instrumentalities necessary to provide the present value | |
| 223 | + | 13 of all temporary and total and permanent disability | |
| 224 | + | 14 benefits granted during the most recent year for which | |
| 225 | + | 15 information is available. | |
| 226 | + | 16 4. The percentage of earnings of the participating | |
| 227 | + | 17 employees of all participating municipalities and | |
| 228 | + | 18 participating instrumentalities necessary to provide the | |
| 229 | + | 19 present value of the net single sum death benefits | |
| 230 | + | 20 expected to become payable from the reserve established | |
| 231 | + | 21 under Section 7-206 during the year for which this rate is | |
| 232 | + | 22 fixed. | |
| 233 | + | 23 5. The percentage of earnings necessary to meet any | |
| 234 | + | 24 deficiency arising in the Terminated Municipality Reserve. | |
| 235 | + | 25 (c) A separate municipality contribution rate shall be | |
| 236 | + | 26 computed for each participating municipality or participating | |
| 475 | 237 | ||
| 476 | 238 | ||
| 477 | - | elected and qualified. | |
| 478 | - | (g) Trustees shall serve without compensation, but shall | |
| 479 | - | be reimbursed for any reasonable expenses incurred in | |
| 480 | - | attending meetings of the board and in performing duties on | |
| 481 | - | behalf of the Fund and for the amount of any earnings withheld | |
| 482 | - | by any employing municipality or participating instrumentality | |
| 483 | - | because of attendance at any board meeting. | |
| 484 | - | (h) Each trustee shall be entitled to one vote on any and | |
| 485 | - | all actions before the board. At least 5 concurring votes | |
| 486 | - | shall be necessary for every decision or action by the board at | |
| 487 | - | any of its meetings. No decision or action shall become | |
| 488 | - | effective unless presented and so approved at a regular or | |
| 489 | - | duly called special meeting of the board. | |
| 490 | - | (Source: P.A. 102-479, eff. 8-20-21.) | |
| 491 | - | Section 99. Effective date. This Act takes effect upon | |
| 492 | - | becoming law, except that the changes to Section 7-135 of the | |
| 493 | - | Illinois Pension Code take effect January 1, 2024. | |
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| 247 | + | 1 instrumentality for its sheriff's law enforcement employees. | |
| 248 | + | 2 A separate municipality contribution rate shall be | |
| 249 | + | 3 computed for the sheriff's law enforcement employees of each | |
| 250 | + | 4 forest preserve district that elects to have such employees. | |
| 251 | + | 5 For the period from January 1, 1986 to December 31, 1986, such | |
| 252 | + | 6 rate shall be the forest preserve district's regular rate plus | |
| 253 | + | 7 2%. | |
| 254 | + | 8 In the event that the Board determines that there is an | |
| 255 | + | 9 actuarial deficiency in the account of any municipality with | |
| 256 | + | 10 respect to a person who has elected to participate in the Fund | |
| 257 | + | 11 under Section 3-109.1 of this Code, the Board may adjust the | |
| 258 | + | 12 municipality's contribution rate so as to make up that | |
| 259 | + | 13 deficiency over such reasonable period of time as the Board | |
| 260 | + | 14 may determine. | |
| 261 | + | 15 (d) The Board may establish a separate municipality | |
| 262 | + | 16 contribution rate for all employees who are program | |
| 263 | + | 17 participants employed under the federal Comprehensive | |
| 264 | + | 18 Employment Training Act by all of the participating | |
| 265 | + | 19 municipalities and instrumentalities. The Board may also | |
| 266 | + | 20 provide that, in lieu of a separate municipality rate for | |
| 267 | + | 21 these employees, a portion of the municipality contributions | |
| 268 | + | 22 for such program participants shall be refunded or an extra | |
| 269 | + | 23 charge assessed so that the amount of municipality | |
| 270 | + | 24 contributions retained or received by the fund for all CETA | |
| 271 | + | 25 program participants shall be an amount equal to that which | |
| 272 | + | 26 would be provided by the separate municipality contribution | |
| 273 | + | ||
| 274 | + | ||
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| 283 | + | 1 rate for all such program participants. Refunds shall be made | |
| 284 | + | 2 to prime sponsors of programs upon submission of a claim | |
| 285 | + | 3 therefor and extra charges shall be assessed to participating | |
| 286 | + | 4 municipalities and instrumentalities. In establishing the | |
| 287 | + | 5 municipality contribution rate as provided in paragraph (b) of | |
| 288 | + | 6 this Section, the use of a separate municipality contribution | |
| 289 | + | 7 rate for program participants or the refund of a portion of the | |
| 290 | + | 8 municipality contributions, as the case may be, may be | |
| 291 | + | 9 considered. | |
| 292 | + | 10 (e) Computations of municipality contribution rates for | |
| 293 | + | 11 the following calendar year shall be made prior to the | |
| 294 | + | 12 beginning of each year, from the information available at the | |
| 295 | + | 13 time the computations are made, and on the assumption that the | |
| 296 | + | 14 employees in each participating municipality or participating | |
| 297 | + | 15 instrumentality at such time will continue in service until | |
| 298 | + | 16 the end of such calendar year at their respective rates of | |
| 299 | + | 17 earnings at such time. | |
| 300 | + | 18 (f) Any municipality which is the recipient of State | |
| 301 | + | 19 allocations representing that municipality's contributions for | |
| 302 | + | 20 retirement annuity purposes on behalf of its employees as | |
| 303 | + | 21 provided in Section 12-21.16 of the Illinois Public Aid Code | |
| 304 | + | 22 shall pay the allocations so received to the Board for such | |
| 305 | + | 23 purpose. Estimates of State allocations to be received during | |
| 306 | + | 24 any taxable year shall be considered in the determination of | |
| 307 | + | 25 the municipality's tax rate for that year under Section 7-171. | |
| 308 | + | 26 If a special tax is levied under Section 7-171, none of the | |
| 309 | + | ||
| 310 | + | ||
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| 319 | + | 1 proceeds may be used to reimburse the municipality for the | |
| 320 | + | 2 amount of State allocations received and paid to the Board. | |
| 321 | + | 3 Any multiple-county or consolidated health department which | |
| 322 | + | 4 receives contributions from a county under Section 11.2 of "An | |
| 323 | + | 5 Act in relation to establishment and maintenance of county and | |
| 324 | + | 6 multiple-county health departments", approved July 9, 1943, as | |
| 325 | + | 7 amended, or distributions under Section 3 of the Department of | |
| 326 | + | 8 Public Health Act, shall use these only for municipality | |
| 327 | + | 9 contributions by the health department. | |
| 328 | + | 10 (g) Municipality contributions for the several purposes | |
| 329 | + | 11 specified shall, for township treasurers and employees in the | |
| 330 | + | 12 offices of the township treasurers who meet the qualifying | |
| 331 | + | 13 conditions for coverage hereunder, be allocated among the | |
| 332 | + | 14 several school districts and parts of school districts | |
| 333 | + | 15 serviced by such treasurers and employees in the proportion | |
| 334 | + | 16 which the amount of school funds of each district or part of a | |
| 335 | + | 17 district handled by the treasurer bears to the total amount of | |
| 336 | + | 18 all school funds handled by the treasurer. | |
| 337 | + | 19 From the funds subject to allocation among districts and | |
| 338 | + | 20 parts of districts pursuant to the School Code, the trustees | |
| 339 | + | 21 shall withhold the proportionate share of the liability for | |
| 340 | + | 22 municipality contributions imposed upon such districts by this | |
| 341 | + | 23 Section, in respect to such township treasurers and employees | |
| 342 | + | 24 and remit the same to the Board. | |
| 343 | + | 25 The municipality contribution rate for an educational | |
| 344 | + | 26 service center shall initially be the same rate for each year | |
| 345 | + | ||
| 346 | + | ||
| 347 | + | ||
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| 355 | + | 1 as the regional office of education or school district which | |
| 356 | + | 2 serves as its administrative agent. When actuarial data become | |
| 357 | + | 3 available, a separate rate shall be established as provided in | |
| 358 | + | 4 subparagraph (i) of this Section. | |
| 359 | + | 5 The municipality contribution rate for a public agency, | |
| 360 | + | 6 other than a vocational education cooperative, formed under | |
| 361 | + | 7 the Intergovernmental Cooperation Act shall initially be the | |
| 362 | + | 8 average rate for the municipalities which are parties to the | |
| 363 | + | 9 intergovernmental agreement. When actuarial data become | |
| 364 | + | 10 available, a separate rate shall be established as provided in | |
| 365 | + | 11 subparagraph (i) of this Section. | |
| 366 | + | 12 (h) Each participating municipality and participating | |
| 367 | + | 13 instrumentality shall make the contributions in the amounts | |
| 368 | + | 14 provided in this Section in the manner prescribed from time to | |
| 369 | + | 15 time by the Board and all such contributions shall be | |
| 370 | + | 16 obligations of the respective participating municipalities and | |
| 371 | + | 17 participating instrumentalities to this fund. The failure to | |
| 372 | + | 18 deduct any employee contributions shall not relieve the | |
| 373 | + | 19 participating municipality or participating instrumentality of | |
| 374 | + | 20 its obligation to this fund. Delinquent payments of | |
| 375 | + | 21 contributions due under this Section may, with interest, be | |
| 376 | + | 22 recovered by civil action against the participating | |
| 377 | + | 23 municipalities or participating instrumentalities. | |
| 378 | + | 24 Municipality contributions, other than the amount necessary | |
| 379 | + | 25 for employee contributions, for periods of service by | |
| 380 | + | 26 employees from whose earnings no deductions were made for | |
| 381 | + | ||
| 382 | + | ||
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| 391 | + | 1 employee contributions to the fund, may be charged to the | |
| 392 | + | 2 municipality reserve for the municipality or participating | |
| 393 | + | 3 instrumentality. | |
| 394 | + | 4 (i) Contributions by participating instrumentalities shall | |
| 395 | + | 5 be determined as provided herein except that the percentage | |
| 396 | + | 6 derived under subparagraph 2 of paragraph (b) of this Section, | |
| 397 | + | 7 and the amount payable under subparagraph 4 of paragraph (a) | |
| 398 | + | 8 of this Section, shall be based on an amortization period of 10 | |
| 399 | + | 9 years. | |
| 400 | + | 10 (j) Notwithstanding the other provisions of this Section, | |
| 401 | + | 11 the additional unfunded liability accruing as a result of | |
| 402 | + | 12 Public Act 94-712 shall be amortized over a period of 30 years | |
| 403 | + | 13 beginning on January 1 of the second calendar year following | |
| 404 | + | 14 the calendar year in which Public Act 94-712 takes effect, | |
| 405 | + | 15 except that the employer may provide for a longer amortization | |
| 406 | + | 16 period by adopting a resolution or ordinance specifying a | |
| 407 | + | 17 35-year or 40-year period and submitting a certified copy of | |
| 408 | + | 18 the ordinance or resolution to the fund no later than June 1 of | |
| 409 | + | 19 the calendar year following the calendar year in which Public | |
| 410 | + | 20 Act 94-712 takes effect. | |
| 411 | + | 21 (k) If the amount of a participating employee's reported | |
| 412 | + | 22 earnings for any of the 12-month periods used to determine the | |
| 413 | + | 23 final rate of earnings exceeds the employee's 12-month | |
| 414 | + | 24 reported earnings with the same employer for the previous year | |
| 415 | + | 25 by the greater of 6% or 1.5 times the annual increase in the | |
| 416 | + | 26 Consumer Price Index-U, as established by the United States | |
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| 427 | + | 1 Department of Labor for the preceding September, the | |
| 428 | + | 2 participating municipality or participating instrumentality | |
| 429 | + | 3 that paid those earnings shall pay to the Fund, in addition to | |
| 430 | + | 4 any other contributions required under this Article, the | |
| 431 | + | 5 present value of the increase in the pension resulting from | |
| 432 | + | 6 the portion of the increase in reported earnings that is in | |
| 433 | + | 7 excess of the greater of 6% or 1.5 times the annual increase in | |
| 434 | + | 8 the Consumer Price Index-U, as determined by the Fund. This | |
| 435 | + | 9 present value shall be computed on the basis of the actuarial | |
| 436 | + | 10 assumptions and tables used in the most recent actuarial | |
| 437 | + | 11 valuation of the Fund that is available at the time of the | |
| 438 | + | 12 computation. | |
| 439 | + | 13 Whenever it determines that a payment is or may be | |
| 440 | + | 14 required under this subsection (k), the fund shall calculate | |
| 441 | + | 15 the amount of the payment and bill the participating | |
| 442 | + | 16 municipality or participating instrumentality for that amount. | |
| 443 | + | 17 The bill shall specify the calculations used to determine the | |
| 444 | + | 18 amount due. If the participating municipality or participating | |
| 445 | + | 19 instrumentality disputes the amount of the bill, it may, | |
| 446 | + | 20 within 30 days after receipt of the bill, apply to the fund in | |
| 447 | + | 21 writing for a recalculation. The application must specify in | |
| 448 | + | 22 detail the grounds of the dispute. Upon receiving a timely | |
| 449 | + | 23 application for recalculation, the fund shall review the | |
| 450 | + | 24 application and, if appropriate, recalculate the amount due. | |
| 451 | + | 25 The participating municipality and participating | |
| 452 | + | 26 instrumentality contributions required under this subsection | |
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| 463 | + | 1 (k) may be paid in the form of a lump sum within 90 days after | |
| 464 | + | 2 receipt of the bill. If the participating municipality and | |
| 465 | + | 3 participating instrumentality contributions are not paid | |
| 466 | + | 4 within 90 days after receipt of the bill, then interest will be | |
| 467 | + | 5 charged at a rate equal to the fund's annual actuarially | |
| 468 | + | 6 assumed rate of return on investment compounded annually from | |
| 469 | + | 7 the 91st day after receipt of the bill. Payments must be | |
| 470 | + | 8 concluded within 3 years after receipt of the bill by the | |
| 471 | + | 9 participating municipality or participating instrumentality. | |
| 472 | + | 10 When assessing payment for any amount due under this | |
| 473 | + | 11 subsection (k), the fund shall exclude earnings increases | |
| 474 | + | 12 resulting from overload or overtime earnings. | |
| 475 | + | 13 When assessing payment for any amount due under this | |
| 476 | + | 14 subsection (k), the fund shall exclude earnings increases | |
| 477 | + | 15 resulting from payments for unused vacation time, but only for | |
| 478 | + | 16 payments for unused vacation time made in the final 3 months of | |
| 479 | + | 17 the final rate of earnings period. | |
| 480 | + | 18 When assessing payment for any amount due under this | |
| 481 | + | 19 subsection (k), the fund shall also exclude earnings increases | |
| 482 | + | 20 attributable to standard employment promotions resulting in | |
| 483 | + | 21 increased responsibility and workload. | |
| 484 | + | 22 When assessing payment for any amount due under this | |
| 485 | + | 23 subsection (k), the fund shall exclude reportable earnings | |
| 486 | + | 24 increases resulting from periods where the member was paid | |
| 487 | + | 25 through workers' compensation. | |
| 488 | + | 26 This subsection (k) does not apply to earnings increases | |
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| 499 | + | 1 due to amounts paid as required by federal or State law or | |
| 500 | + | 2 court mandate or to earnings increases due to the | |
| 501 | + | 3 participating employee returning to the regular number of | |
| 502 | + | 4 hours worked after having a temporary reduction in the number | |
| 503 | + | 5 of hours worked. | |
| 504 | + | 6 This subsection (k) does not apply to earnings increases | |
| 505 | + | 7 paid to individuals under contracts or collective bargaining | |
| 506 | + | 8 agreements entered into, amended, or renewed before January 1, | |
| 507 | + | 9 2012 (the effective date of Public Act 97-609), earnings | |
| 508 | + | 10 increases paid to members who are 10 years or more from | |
| 509 | + | 11 retirement eligibility, or earnings increases resulting from | |
| 510 | + | 12 an increase in the number of hours required to be worked. | |
| 511 | + | 13 When assessing payment for any amount due under this | |
| 512 | + | 14 subsection (k), the fund shall also exclude earnings | |
| 513 | + | 15 attributable to personnel policies adopted before January 1, | |
| 514 | + | 16 2012 (the effective date of Public Act 97-609) as long as those | |
| 515 | + | 17 policies are not applicable to employees who begin service on | |
| 516 | + | 18 or after January 1, 2012 (the effective date of Public Act | |
| 517 | + | 19 97-609). | |
| 518 | + | 20 The change made to this Section by Public Act 100-139 is a | |
| 519 | + | 21 clarification of existing law and is intended to be | |
| 520 | + | 22 retroactive to January 1, 2012 (the effective date of Public | |
| 521 | + | 23 Act 97-609). | |
| 522 | + | 24 (Source: P.A. 102-849, eff. 5-13-22.) | |
| 523 | + | 25 (40 ILCS 5/7-174) (from Ch. 108 1/2, par. 7-174) | |
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| 534 | + | 1 Sec. 7-174. Board created. | |
| 535 | + | 2 (a) A board of 8 members shall constitute a board of | |
| 536 | + | 3 trustees authorized to carry out the provisions of this | |
| 537 | + | 4 Article. Each trustee shall be a participating employee of a | |
| 538 | + | 5 participating municipality or participating instrumentality or | |
| 539 | + | 6 an annuitant of the Fund and no person shall be eligible to | |
| 540 | + | 7 become a trustee after January 1, 1979 who does not have the | |
| 541 | + | 8 minimum service credit in this Fund to qualify for a pension. | |
| 542 | + | 9 (b) The board shall consist of representatives of various | |
| 543 | + | 10 groups as follows: | |
| 544 | + | 11 1. 4 trustees shall be a chief executive officer, | |
| 545 | + | 12 chief finance officer, or other officer, executive or | |
| 546 | + | 13 department head of a participating municipality or | |
| 547 | + | 14 participating instrumentality, and each such trustee shall | |
| 548 | + | 15 be designated as an executive trustee. | |
| 549 | + | 16 2. 3 trustees shall be employees of a participating | |
| 550 | + | 17 municipality or participating instrumentality and each | |
| 551 | + | 18 such trustee shall be designated as an employee trustee. A | |
| 552 | + | 19 person who meets the criteria to be an executive trustee | |
| 553 | + | 20 may not serve as an employee trustee. | |
| 554 | + | 21 3. One trustee shall be an annuitant of the Fund, who | |
| 555 | + | 22 shall be designated the annuitant trustee. | |
| 556 | + | 23 (c) A person elected as a trustee shall qualify as a | |
| 557 | + | 24 trustee, after declaration by the board that he has been duly | |
| 558 | + | 25 elected, upon taking and subscribing to the constitutional | |
| 559 | + | 26 oath of office and filing same in the office of the Fund. | |
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| 570 | + | 1 (d) The term of office of each trustee shall begin upon | |
| 571 | + | 2 January 1 of the year following the year in which he is elected | |
| 572 | + | 3 and shall continue for a period of 5 years and until a | |
| 573 | + | 4 successor has been elected and qualified, or until prior | |
| 574 | + | 5 resignation, death, incapacity or disqualification. | |
| 575 | + | 6 (e) Any elected trustee (other than the annuitant trustee) | |
| 576 | + | 7 shall be disqualified immediately upon termination of | |
| 577 | + | 8 employment with all participating municipalities and | |
| 578 | + | 9 instrumentalities thereof or upon any change in status which | |
| 579 | + | 10 removes any such trustee from all employments within the group | |
| 580 | + | 11 he represents. The annuitant trustee shall be disqualified | |
| 581 | + | 12 upon termination of his or her annuity. | |
| 582 | + | 13 (e-5) Notwithstanding any other provision, an elected | |
| 583 | + | 14 trustee shall not be considered disqualified due to | |
| 584 | + | 15 termination of participation under subsection (e) if: | |
| 585 | + | 16 (1) he or she thereafter begins participation with a | |
| 586 | + | 17 different participating employer; | |
| 587 | + | 18 (2) there is no gap in service credit established | |
| 588 | + | 19 under this Article; and | |
| 589 | + | 20 (3) the trustee continues to meet all eligibility | |
| 590 | + | 21 requirements under subsection (b) for the same type of | |
| 591 | + | 22 trustee position. | |
| 592 | + | 23 (f) The trustees shall fill any vacancy in the board by | |
| 593 | + | 24 appointment, for the period until the next election of | |
| 594 | + | 25 trustees, or, if the remaining term is less than 2 years, for | |
| 595 | + | 26 the remainder of the term, and until his successor has been | |
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| 606 | + | 1 elected and qualified. | |
| 607 | + | 2 (g) Trustees shall serve without compensation, but shall | |
| 608 | + | 3 be reimbursed for any reasonable expenses incurred in | |
| 609 | + | 4 attending meetings of the board and in performing duties on | |
| 610 | + | 5 behalf of the Fund and for the amount of any earnings withheld | |
| 611 | + | 6 by any employing municipality or participating instrumentality | |
| 612 | + | 7 because of attendance at any board meeting. | |
| 613 | + | 8 (h) Each trustee shall be entitled to one vote on any and | |
| 614 | + | 9 all actions before the board. At least 5 concurring votes | |
| 615 | + | 10 shall be necessary for every decision or action by the board at | |
| 616 | + | 11 any of its meetings. No decision or action shall become | |
| 617 | + | 12 effective unless presented and so approved at a regular or | |
| 618 | + | 13 duly called special meeting of the board. | |
| 619 | + | 14 (Source: P.A. 102-479, eff. 8-20-21.) | |
| 620 | + | 15 Section 99. Effective date. This Act takes effect upon | |
| 621 | + | 16 becoming law, except that the changes to Section 7-135 of the | |
| 622 | + | 17 Illinois Pension Code take effect January 1, 2024. | |
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