Illinois 2023-2024 Regular Session

Illinois Senate Bill SB2915 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2915 Introduced 1/26/2024, by Sen. Karina Villa SYNOPSIS AS INTRODUCED: 40 ILCS 5/7-158 from Ch. 108 1/2, par. 7-15840 ILCS 5/7-164 from Ch. 108 1/2, par. 7-16440 ILCS 5/7-172 from Ch. 108 1/2, par. 7-17240 ILCS 5/7-205 from Ch. 108 1/2, par. 7-20540 ILCS 5/7-206 from Ch. 108 1/2, par. 7-206 Amends the Illinois Municipal Retirement Fund (IMRF) Article of the Illinois Pension Code. Increases, except for persons who first retired prior to the effective date of the amendatory Act, the amount of the death benefit from $3,000 to $8,000. Makes conforming changes. Amends the State Mandates Act to require implementation without reimbursement. Effective January 1, 2025. LRB103 36207 RPS 66300 b STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2915 Introduced 1/26/2024, by Sen. Karina Villa SYNOPSIS AS INTRODUCED: 40 ILCS 5/7-158 from Ch. 108 1/2, par. 7-15840 ILCS 5/7-164 from Ch. 108 1/2, par. 7-16440 ILCS 5/7-172 from Ch. 108 1/2, par. 7-17240 ILCS 5/7-205 from Ch. 108 1/2, par. 7-20540 ILCS 5/7-206 from Ch. 108 1/2, par. 7-206 40 ILCS 5/7-158 from Ch. 108 1/2, par. 7-158 40 ILCS 5/7-164 from Ch. 108 1/2, par. 7-164 40 ILCS 5/7-172 from Ch. 108 1/2, par. 7-172 40 ILCS 5/7-205 from Ch. 108 1/2, par. 7-205 40 ILCS 5/7-206 from Ch. 108 1/2, par. 7-206 Amends the Illinois Municipal Retirement Fund (IMRF) Article of the Illinois Pension Code. Increases, except for persons who first retired prior to the effective date of the amendatory Act, the amount of the death benefit from $3,000 to $8,000. Makes conforming changes. Amends the State Mandates Act to require implementation without reimbursement. Effective January 1, 2025. LRB103 36207 RPS 66300 b LRB103 36207 RPS 66300 b STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY A BILL FOR
2	2	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2915 Introduced 1/26/2024, by Sen. Karina Villa SYNOPSIS AS INTRODUCED:
3	3	40 ILCS 5/7-158 from Ch. 108 1/2, par. 7-15840 ILCS 5/7-164 from Ch. 108 1/2, par. 7-16440 ILCS 5/7-172 from Ch. 108 1/2, par. 7-17240 ILCS 5/7-205 from Ch. 108 1/2, par. 7-20540 ILCS 5/7-206 from Ch. 108 1/2, par. 7-206 40 ILCS 5/7-158 from Ch. 108 1/2, par. 7-158 40 ILCS 5/7-164 from Ch. 108 1/2, par. 7-164 40 ILCS 5/7-172 from Ch. 108 1/2, par. 7-172 40 ILCS 5/7-205 from Ch. 108 1/2, par. 7-205 40 ILCS 5/7-206 from Ch. 108 1/2, par. 7-206
4	4	40 ILCS 5/7-158 from Ch. 108 1/2, par. 7-158
5	5	40 ILCS 5/7-164 from Ch. 108 1/2, par. 7-164
6	6	40 ILCS 5/7-172 from Ch. 108 1/2, par. 7-172
7	7	40 ILCS 5/7-205 from Ch. 108 1/2, par. 7-205
8	8	40 ILCS 5/7-206 from Ch. 108 1/2, par. 7-206
9	9	Amends the Illinois Municipal Retirement Fund (IMRF) Article of the Illinois Pension Code. Increases, except for persons who first retired prior to the effective date of the amendatory Act, the amount of the death benefit from $3,000 to $8,000. Makes conforming changes. Amends the State Mandates Act to require implementation without reimbursement. Effective January 1, 2025.
10	10	LRB103 36207 RPS 66300 b LRB103 36207 RPS 66300 b
11	11	LRB103 36207 RPS 66300 b
12	12	STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY
13	13	STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY
14	14	A BILL FOR
15	15	SB2915LRB103 36207 RPS 66300 b SB2915 LRB103 36207 RPS 66300 b
16	16	SB2915 LRB103 36207 RPS 66300 b
17	17	1 AN ACT concerning public employee benefits.
18	18	2 Be it enacted by the People of the State of Illinois,
19	19	3 represented in the General Assembly:
20	20	4 Section 5. The Illinois Pension Code is amended by
21	21	5 changing Sections 7-158, 7-164, 7-172, 7-205, and 7-206 as
22	22	6 follows:
23	23	7 (40 ILCS 5/7-158) (from Ch. 108 1/2, par. 7-158)
24	24	8 Sec. 7-158. Surviving spouse annuities - Options. In lieu
25	25	9 of the surviving spouse annuity an eligible surviving spouse
26	26	10 shall have the option of receiving other benefits as follows:
27	27	11 1. The surviving spouse of a participating employee may
28	28	12 elect to receive either a single sum death benefit or a
29	29	13 surviving spouse annuity and the $8,000 ($3,000 for those who
30	30	14 first retired prior to the effective date of this amendatory
31	31	15 Act of the 103rd General Assembly) $3,000 death benefit
32	32	16 provided in Sections 7-163 and 7-164.
33	33	17 2. The surviving spouse of an employee, who has separated
34	34	18 from service and would have been entitled to a retirement
35	35	19 annuity on date of death, may elect to receive either a single
36	36	20 sum death benefit or a surviving spouse annuity and the $8,000
37	37	21 ($3,000 for those who first retired prior to the effective
38	38	22 date of this amendatory Act of the 103rd General Assembly)
39	39	23 $3,000 death benefit provided in Sections 7-163 and 7-164.
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43	43	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2915 Introduced 1/26/2024, by Sen. Karina Villa SYNOPSIS AS INTRODUCED:
44	44	40 ILCS 5/7-158 from Ch. 108 1/2, par. 7-15840 ILCS 5/7-164 from Ch. 108 1/2, par. 7-16440 ILCS 5/7-172 from Ch. 108 1/2, par. 7-17240 ILCS 5/7-205 from Ch. 108 1/2, par. 7-20540 ILCS 5/7-206 from Ch. 108 1/2, par. 7-206 40 ILCS 5/7-158 from Ch. 108 1/2, par. 7-158 40 ILCS 5/7-164 from Ch. 108 1/2, par. 7-164 40 ILCS 5/7-172 from Ch. 108 1/2, par. 7-172 40 ILCS 5/7-205 from Ch. 108 1/2, par. 7-205 40 ILCS 5/7-206 from Ch. 108 1/2, par. 7-206
45	45	40 ILCS 5/7-158 from Ch. 108 1/2, par. 7-158
46	46	40 ILCS 5/7-164 from Ch. 108 1/2, par. 7-164
47	47	40 ILCS 5/7-172 from Ch. 108 1/2, par. 7-172
48	48	40 ILCS 5/7-205 from Ch. 108 1/2, par. 7-205
49	49	40 ILCS 5/7-206 from Ch. 108 1/2, par. 7-206
50	50	Amends the Illinois Municipal Retirement Fund (IMRF) Article of the Illinois Pension Code. Increases, except for persons who first retired prior to the effective date of the amendatory Act, the amount of the death benefit from $3,000 to $8,000. Makes conforming changes. Amends the State Mandates Act to require implementation without reimbursement. Effective January 1, 2025.
51	51	LRB103 36207 RPS 66300 b LRB103 36207 RPS 66300 b
52	52	LRB103 36207 RPS 66300 b
53	53	STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY
54	54	STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY
55	55	A BILL FOR
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61	61	40 ILCS 5/7-158 from Ch. 108 1/2, par. 7-158
62	62	40 ILCS 5/7-164 from Ch. 108 1/2, par. 7-164
63	63	40 ILCS 5/7-172 from Ch. 108 1/2, par. 7-172
64	64	40 ILCS 5/7-205 from Ch. 108 1/2, par. 7-205
65	65	40 ILCS 5/7-206 from Ch. 108 1/2, par. 7-206
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69	69	LRB103 36207 RPS 66300 b
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71	71	STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY
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88	88	1 3. If any surviving spouse annuity is payable prior to the
89	89	2 earliest age at which the recipient will become eligible for a
90	90	3 widows' or widowers' insurance benefit under the Federal
91	91	4 Social Security Act, the recipient may elect that the annuity
92	92	5 payments from this fund shall exceed those payable after
93	93	6 attaining such age by an amount not in excess of the estimated
94	94	7 Social Security Benefit, determined as of the effective date
95	95	8 of the surviving spouse annuity, provided that in no case
96	96	9 shall the total annuity payments made by this fund exceed in
97	97	10 actuarial value the annuity which would have been paid had no
98	98	11 such election been made.
99	99	12 4. The surviving spouse of a participating employee, whose
100	100	13 annuity was suspended upon return to employment and who had
101	101	14 one year or more of service after his return, may apply the
102	102	15 additional service credits to a supplemental surviving spouse
103	103	16 annuity and receive the $8,000 ($3,000 for those who first
104	104	17 retired prior to the effective date of this amendatory Act of
105	105	18 the 103rd General Assembly) $3,000 death benefit or apply the
106	106	19 additional service credits to a single sum death benefit and
107	107	20 forego the $8,000 ($3,000 for those who first retired prior to
108	108	21 the effective date of this amendatory Act of the 103rd General
109	109	22 Assembly) $3,000 death benefit payable upon the death of an
110	110	23 annuitant.
111	111	24 5. The surviving spouse of a participating employee, whose
112	112	25 annuity was suspended upon return to employment and who had
113	113	26 less than one year of service after his return, shall have the
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124	124	1 additional service credits applied towards a supplemental
125	125	2 surviving spouse annuity and shall receive the $8,000 ($3,000
126	126	3 for those who first retired prior to the effective date of this
127	127	4 amendatory Act of the 103rd General Assembly) $3,000 death
128	128	5 benefit.
129	129	6 (Source: P.A. 85-941.)
130	130	7 (40 ILCS 5/7-164) (from Ch. 108 1/2, par. 7-164)
131	131	8 Sec. 7-164. Death benefits - Amount. The amount of the
132	132	9 death benefit shall be:
133	133	10 1. Upon the death of an employee with at least one year of
134	134	11 service occurring while in an employment relationship
135	135	12 (including employees drawing disability benefits) with a
136	136	13 participating municipality or participating instrumentality,
137	137	14 an amount equal to the sum of:
138	138	15 (a) The employee's normal, additional and survivor
139	139	16 credits, including interest credited thereto through the
140	140	17 end of the preceding calendar year, but excluding credits
141	141	18 and interest thereon allowed for periods of disability.
142	142	19 (b) An amount equal to the employee's annual final
143	143	20 rate of earnings. An employee who dies as a result of
144	144	21 injuries connected with his duties shall be considered to
145	145	22 have a year of service for purposes of this benefit.
146	146	23 2. Upon the death of an employee with less than 1 year of
147	147	24 service occurring while in the service of any participating
148	148	25 municipality or instrumentality, an amount equal to the sum of
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159	159	1 his accumulated normal, additional and survivor credits on the
160	160	2 date of death, excluding those credits and interest thereon
161	161	3 allowed during periods of disability.
162	162	4 3. Upon the death of an employee who has separated from
163	163	5 service and was not entitled to a retirement annuity on the
164	164	6 date of death, an amount equal to the sum of his accumulated
165	165	7 normal, survivor and additional credits on the date of death
166	166	8 excluding those credits and interest thereon allowed during
167	167	9 periods of disability.
168	168	10 4. Upon the death of an employee in an employment
169	169	11 relationship, or an employee who has service and was entitled
170	170	12 to a retirement annuity on the date of death, when a surviving
171	171	13 spouse or child annuity is awarded, $8,000 ($3,000 for those
172	172	14 who first retired prior to the effective date of this
173	173	15 amendatory Act of the 103rd General Assembly) $3,000.
174	174	16 5. Upon the death of an employee, who has separated from
175	175	17 service and was entitled to a retirement annuity on the date of
176	176	18 death, and no surviving spouse or child annuity is awarded,
177	177	19 $8,000 ($3,000 for those who first retired prior to the
178	178	20 effective date of this amendatory Act of the 103rd General
179	179	21 Assembly) $3,000 plus an amount equal to his accumulated
180	180	22 normal, survivor and additional credits on the date of death,
181	181	23 excluding those credits and interest earned thereon allowed
182	182	24 during periods of disability.
183	183	25 6. Upon the death of an employee annuitant, $8,000 ($3,000
184	184	26 for those who first retired prior to the effective date of this
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195	195	1 amendatory Act of the 103rd General Assembly) $3,000 and,
196	196	2 unless a surviving spouse, child or reversionary annuity is
197	197	3 payable, the sum of (i) the excess of the normal and survivor
198	198	4 credits, excluding those allowed during periods of disability,
199	199	5 which the annuitant had as of the effective date of his annuity
200	200	6 over the total annuities paid pursuant to paragraph (a) 1 of
201	201	7 Section 7-142 to the date of death, plus (ii) the excess of the
202	202	8 additional credits, excluding any such credits used to create
203	203	9 a reversionary annuity, used to provide the annuity granted
204	204	10 pursuant to paragraph (a) 2 of Section 7-142 over the total
205	205	11 annuity payments made pursuant thereto to the time of death.
206	206	12 7. Upon the death of an annuitant receiving a reversionary
207	207	13 annuity or of a person designated to receive a reversionary
208	208	14 annuity prior to the receipt of such annuity the sum of the
209	209	15 additional credits of the person creating the reversionary
210	210	16 annuity as of the effective date of his own retirement annuity
211	211	17 over the reversionary annuity payments, if any, made prior to
212	212	18 the date of death of such annuitant or person designated to
213	213	19 receive the reversionary annuity.
214	214	20 8. Upon the death of an annuitant receiving a beneficiary
215	215	21 annuity which was effective before January 1, 1986, the excess
216	216	22 of the death benefit which was used to provide the annuity,
217	217	23 over the sum of all annuity payments made to the beneficiary.
218	218	24 Upon the death of an annuitant receiving a beneficiary annuity
219	219	25 effective January 1, 1986 or thereafter, the sum of (i) the
220	220	26 excess of the normal and survivor credits, excluding those
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231	231	1 allowed during periods of disability, which the annuitant had
232	232	2 as of the effective date of his annuity over the total
233	233	3 annuities paid pursuant to paragraph (c) of Section 7-165, to
234	234	4 date of death, plus (ii) the excess of the additional credits,
235	235	5 excluding any such credits used to create a reversionary
236	236	6 annuity, used to provide the annuity granted pursuant to
237	237	7 paragraph (d) of Section 7-165 over the total annuity payments
238	238	8 made pursuant thereto to the time of death.
239	239	9 9. Upon the marriage prior to reaching age 55 (except for a
240	240	10 surviving spouse who remarries after December 31, 2000) or
241	241	11 death of a person receiving a surviving spouse annuity, unless
242	242	12 a child annuity is payable, the sum of (i) the excess of the
243	243	13 normal and survivor credits, excluding those credits and
244	244	14 interest thereon allowed during periods of disability,
245	245	15 attributable to the employee at the effective date of the
246	246	16 annuity or date of death, whichever first occurred, over the
247	247	17 total of all annuity payments attributable to paragraph (a) 1
248	248	18 of Section 7-142 made to the employee or surviving spouse plus
249	249	19 (ii) the excess of the additional credits, excluding any such
250	250	20 credits used to create a reversionary annuity or used to
251	251	21 provide the annuity attributable to paragraph (a) 2 of Section
252	252	22 7-142 over the total of such payments.
253	253	23 10. Upon the marriage, death or attainment of age 18 of a
254	254	24 child receiving a child annuity, if no other child annuities
255	255	25 are payable, the sum of (i) the excess of the normal and
256	256	26 survivor credits excluding those credits and interest thereon
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267	267	1 allowed during periods of disability, of the employee at the
268	268	2 effective date of the annuity or date of death, whichever
269	269	3 first occurred, over the total annuity payments attributable
270	270	4 to paragraph (a) 1 of Section 7-142 made to the employee,
271	271	5 surviving spouse and children plus (ii) the excess of the
272	272	6 additional credits, excluding any such credits used to create
273	273	7 a reversionary annuity, used to provide the annuity
274	274	8 attributable to paragraph (a) 2 of Section 7-142 over the
275	275	9 total annuity payments made to the employee, surviving spouse
276	276	10 and children, pursuant thereto.
277	277	11 11. Upon the death of the participating employee whose
278	278	12 annuity was suspended upon his return to employment:
279	279	13 a. If a surviving spouse or child annuity is awarded,
280	280	14 $8,000 ($3,000 for those who first retired prior to the
281	281	15 effective date of this amendatory Act of the 103rd General
282	282	16 Assembly) $3,000;
283	283	17 b. If no surviving spouse or child annuity is awarded
284	284	18 and he had less than one year's service upon return,
285	285	19 $8,000 ($3,000 for those who first retired prior to the
286	286	20 effective date of this amendatory Act of the 103rd General
287	287	21 Assembly) $3,000 plus the excess of the normal, survivor
288	288	22 and additional credits, including interest thereon, but
289	289	23 excluding those allowed during a period of disability, at
290	290	24 the effective date of the suspended annuity, plus those
291	291	25 allowed after his return, over all annuity payments made
292	292	26 to the employee;
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303	303	1 c. If no surviving spouse or child annuity is awarded
304	304	2 and he has one year or more of service upon return, the
305	305	3 higher of (a) the payment under subparagraph b of this
306	306	4 paragraph or (b) the payment under paragraph 1 of this
307	307	5 Section, taking into consideration only the service and
308	308	6 credits allowed after his return, plus the excess of the
309	309	7 normal, survivor and additional credits, including
310	310	8 interest thereon, excluding those allowed during periods
311	311	9 of disability, at the effective date of his suspended
312	312	10 annuity over all annuity payments made to the employee.
313	313	11 12. The $8,000 ($3,000 for those who first retired prior
314	314	12 to the effective date of this amendatory Act of the 103rd
315	315	13 General Assembly) $3,000 death benefit provided in paragraphs
316	316	14 4 and 6 shall not be payable to beneficiaries of persons who
317	317	15 terminated service prior to September 8, 1971, unless the
318	318	16 payment or agreement for payment provided by Section 7-144.2
319	319	17 of this Article is made prior to the date of death.
320	320	18 13. The increase in certain death benefits from $1,000 to
321	321	19 $3,000 provided by this amendatory Act of 1987 shall apply
322	322	20 only to deaths occurring on or after January 1, 1988.
323	323	21 14. The increase in certain death benefits from $3,000 to
324	324	22 $8,000 provided by this amendatory Act of the 103rd General
325	325	23 Assembly shall apply only to deaths occurring on or after
326	326	24 January 1, 2025.
327	327	25 (Source: P.A. 91-887, eff. 7-6-00.)
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338	338	1 (40 ILCS 5/7-172) (from Ch. 108 1/2, par. 7-172)
339	339	2 Sec. 7-172. Contributions by participating municipalities
340	340	3 and participating instrumentalities.
341	341	4 (a) Each participating municipality and each participating
342	342	5 instrumentality shall make payment to the fund as follows:
343	343	6 1. municipality contributions in an amount determined
344	344	7 by applying the municipality contribution rate to each
345	345	8 payment of earnings paid to each of its participating
346	346	9 employees;
347	347	10 2. an amount equal to the employee contributions
348	348	11 provided by paragraph (a) of Section 7-173, whether or not
349	349	12 the employee contributions are withheld as permitted by
350	350	13 that Section;
351	351	14 3. all accounts receivable, together with interest
352	352	15 charged thereon, as provided in Section 7-209, and any
353	353	16 amounts due under subsection (a-5) of Section 7-144;
354	354	17 4. if it has no participating employees with current
355	355	18 earnings, an amount payable which, over a closed period of
356	356	19 20 years for participating municipalities and 10 years for
357	357	20 participating instrumentalities, will amortize, at the
358	358	21 effective rate for that year, any unfunded obligation. The
359	359	22 unfunded obligation shall be computed as provided in
360	360	23 paragraph 2 of subsection (b);
361	361	24 5. if it has fewer than 7 participating employees or a
362	362	25 negative balance in its municipality reserve, the greater
363	363	26 of (A) an amount payable that, over a period of 20 years,
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374	374	1 will amortize at the effective rate for that year any
375	375	2 unfunded obligation, computed as provided in paragraph 2
376	376	3 of subsection (b) or (B) the amount required by paragraph
377	377	4 1 of this subsection (a).
378	378	5 (b) A separate municipality contribution rate shall be
379	379	6 determined for each calendar year for all participating
380	380	7 municipalities together with all instrumentalities thereof.
381	381	8 The municipality contribution rate shall be determined for
382	382	9 participating instrumentalities as if they were participating
383	383	10 municipalities. The municipality contribution rate shall be
384	384	11 the sum of the following percentages:
385	385	12 1. The percentage of earnings of all the participating
386	386	13 employees of all participating municipalities and
387	387	14 participating instrumentalities which, if paid over the
388	388	15 entire period of their service, will be sufficient when
389	389	16 combined with all employee contributions available for the
390	390	17 payment of benefits, to provide all annuities for
391	391	18 participating employees, and the $8,000 ($3,000 for those
392	392	19 who first retired prior to the effective date of this
393	393	20 amendatory Act of the 103rd General Assembly) $3,000 death
394	394	21 benefit payable under Sections 7-158 and 7-164, such
395	395	22 percentage to be known as the normal cost rate.
396	396	23 2. The percentage of earnings of the participating
397	397	24 employees of each participating municipality and
398	398	25 participating instrumentalities necessary to adjust for
399	399	26 the difference between the present value of all benefits,
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407	407
408	408	SB2915- 11 -LRB103 36207 RPS 66300 b SB2915 - 11 - LRB103 36207 RPS 66300 b
409	409	SB2915 - 11 - LRB103 36207 RPS 66300 b
410	410	1 excluding temporary and total and permanent disability and
411	411	2 death benefits, to be provided for its participating
412	412	3 employees and the sum of its accumulated municipality
413	413	4 contributions and the accumulated employee contributions
414	414	5 and the present value of expected future employee and
415	415	6 municipality contributions pursuant to subparagraph 1 of
416	416	7 this paragraph (b). This adjustment shall be spread over a
417	417	8 period determined by the Board, not to exceed 30 years for
418	418	9 participating municipalities or 10 years for participating
419	419	10 instrumentalities.
420	420	11 3. The percentage of earnings of the participating
421	421	12 employees of all municipalities and participating
422	422	13 instrumentalities necessary to provide the present value
423	423	14 of all temporary and total and permanent disability
424	424	15 benefits granted during the most recent year for which
425	425	16 information is available.
426	426	17 4. The percentage of earnings of the participating
427	427	18 employees of all participating municipalities and
428	428	19 participating instrumentalities necessary to provide the
429	429	20 present value of the net single sum death benefits
430	430	21 expected to become payable from the reserve established
431	431	22 under Section 7-206 during the year for which this rate is
432	432	23 fixed.
433	433	24 5. The percentage of earnings necessary to meet any
434	434	25 deficiency arising in the Terminated Municipality Reserve.
435	435	26 (c) A separate municipality contribution rate shall be
436	436
437	437
438	438
439	439
440	440
441	441	SB2915 - 11 - LRB103 36207 RPS 66300 b
442	442
443	443
444	444	SB2915- 12 -LRB103 36207 RPS 66300 b SB2915 - 12 - LRB103 36207 RPS 66300 b
445	445	SB2915 - 12 - LRB103 36207 RPS 66300 b
446	446	1 computed for each participating municipality or participating
447	447	2 instrumentality for its sheriff's law enforcement employees.
448	448	3 A separate municipality contribution rate shall be
449	449	4 computed for the sheriff's law enforcement employees of each
450	450	5 forest preserve district that elects to have such employees.
451	451	6 For the period from January 1, 1986 to December 31, 1986, such
452	452	7 rate shall be the forest preserve district's regular rate plus
453	453	8 2%.
454	454	9 In the event that the Board determines that there is an
455	455	10 actuarial deficiency in the account of any municipality with
456	456	11 respect to a person who has elected to participate in the Fund
457	457	12 under Section 3-109.1 of this Code, the Board may adjust the
458	458	13 municipality's contribution rate so as to make up that
459	459	14 deficiency over such reasonable period of time as the Board
460	460	15 may determine.
461	461	16 (d) The Board may establish a separate municipality
462	462	17 contribution rate for all employees who are program
463	463	18 participants employed under the federal Comprehensive
464	464	19 Employment Training Act by all of the participating
465	465	20 municipalities and instrumentalities. The Board may also
466	466	21 provide that, in lieu of a separate municipality rate for
467	467	22 these employees, a portion of the municipality contributions
468	468	23 for such program participants shall be refunded or an extra
469	469	24 charge assessed so that the amount of municipality
470	470	25 contributions retained or received by the fund for all CETA
471	471	26 program participants shall be an amount equal to that which
472	472
473	473
474	474
475	475
476	476
477	477	SB2915 - 12 - LRB103 36207 RPS 66300 b
478	478
479	479
480	480	SB2915- 13 -LRB103 36207 RPS 66300 b SB2915 - 13 - LRB103 36207 RPS 66300 b
481	481	SB2915 - 13 - LRB103 36207 RPS 66300 b
482	482	1 would be provided by the separate municipality contribution
483	483	2 rate for all such program participants. Refunds shall be made
484	484	3 to prime sponsors of programs upon submission of a claim
485	485	4 therefor and extra charges shall be assessed to participating
486	486	5 municipalities and instrumentalities. In establishing the
487	487	6 municipality contribution rate as provided in paragraph (b) of
488	488	7 this Section, the use of a separate municipality contribution
489	489	8 rate for program participants or the refund of a portion of the
490	490	9 municipality contributions, as the case may be, may be
491	491	10 considered.
492	492	11 (e) Computations of municipality contribution rates for
493	493	12 the following calendar year shall be made prior to the
494	494	13 beginning of each year, from the information available at the
495	495	14 time the computations are made, and on the assumption that the
496	496	15 employees in each participating municipality or participating
497	497	16 instrumentality at such time will continue in service until
498	498	17 the end of such calendar year at their respective rates of
499	499	18 earnings at such time.
500	500	19 (f) Any municipality which is the recipient of State
501	501	20 allocations representing that municipality's contributions for
502	502	21 retirement annuity purposes on behalf of its employees as
503	503	22 provided in Section 12-21.16 of the Illinois Public Aid Code
504	504	23 shall pay the allocations so received to the Board for such
505	505	24 purpose. Estimates of State allocations to be received during
506	506	25 any taxable year shall be considered in the determination of
507	507	26 the municipality's tax rate for that year under Section 7-171.
508	508
509	509
510	510
511	511
512	512
513	513	SB2915 - 13 - LRB103 36207 RPS 66300 b
514	514
515	515
516	516	SB2915- 14 -LRB103 36207 RPS 66300 b SB2915 - 14 - LRB103 36207 RPS 66300 b
517	517	SB2915 - 14 - LRB103 36207 RPS 66300 b
518	518	1 If a special tax is levied under Section 7-171, none of the
519	519	2 proceeds may be used to reimburse the municipality for the
520	520	3 amount of State allocations received and paid to the Board.
521	521	4 Any multiple-county or consolidated health department which
522	522	5 receives contributions from a county under Section 11.2 of "An
523	523	6 Act in relation to establishment and maintenance of county and
524	524	7 multiple-county health departments", approved July 9, 1943, as
525	525	8 amended, or distributions under Section 3 of the Department of
526	526	9 Public Health Act, shall use these only for municipality
527	527	10 contributions by the health department.
528	528	11 (g) Municipality contributions for the several purposes
529	529	12 specified shall, for township treasurers and employees in the
530	530	13 offices of the township treasurers who meet the qualifying
531	531	14 conditions for coverage hereunder, be allocated among the
532	532	15 several school districts and parts of school districts
533	533	16 serviced by such treasurers and employees in the proportion
534	534	17 which the amount of school funds of each district or part of a
535	535	18 district handled by the treasurer bears to the total amount of
536	536	19 all school funds handled by the treasurer.
537	537	20 From the funds subject to allocation among districts and
538	538	21 parts of districts pursuant to the School Code, the trustees
539	539	22 shall withhold the proportionate share of the liability for
540	540	23 municipality contributions imposed upon such districts by this
541	541	24 Section, in respect to such township treasurers and employees
542	542	25 and remit the same to the Board.
543	543	26 The municipality contribution rate for an educational
544	544
545	545
546	546
547	547
548	548
549	549	SB2915 - 14 - LRB103 36207 RPS 66300 b
550	550
551	551
552	552	SB2915- 15 -LRB103 36207 RPS 66300 b SB2915 - 15 - LRB103 36207 RPS 66300 b
553	553	SB2915 - 15 - LRB103 36207 RPS 66300 b
554	554	1 service center shall initially be the same rate for each year
555	555	2 as the regional office of education or school district which
556	556	3 serves as its administrative agent. When actuarial data become
557	557	4 available, a separate rate shall be established as provided in
558	558	5 subparagraph (i) of this Section.
559	559	6 The municipality contribution rate for a public agency,
560	560	7 other than a vocational education cooperative, formed under
561	561	8 the Intergovernmental Cooperation Act shall initially be the
562	562	9 average rate for the municipalities which are parties to the
563	563	10 intergovernmental agreement. When actuarial data become
564	564	11 available, a separate rate shall be established as provided in
565	565	12 subparagraph (i) of this Section.
566	566	13 (h) Each participating municipality and participating
567	567	14 instrumentality shall make the contributions in the amounts
568	568	15 provided in this Section in the manner prescribed from time to
569	569	16 time by the Board and all such contributions shall be
570	570	17 obligations of the respective participating municipalities and
571	571	18 participating instrumentalities to this fund. The failure to
572	572	19 deduct any employee contributions shall not relieve the
573	573	20 participating municipality or participating instrumentality of
574	574	21 its obligation to this fund. Delinquent payments of
575	575	22 contributions due under this Section may, with interest, be
576	576	23 recovered by civil action against the participating
577	577	24 municipalities or participating instrumentalities.
578	578	25 Municipality contributions, other than the amount necessary
579	579	26 for employee contributions, for periods of service by
580	580
581	581
582	582
583	583
584	584
585	585	SB2915 - 15 - LRB103 36207 RPS 66300 b
586	586
587	587
588	588	SB2915- 16 -LRB103 36207 RPS 66300 b SB2915 - 16 - LRB103 36207 RPS 66300 b
589	589	SB2915 - 16 - LRB103 36207 RPS 66300 b
590	590	1 employees from whose earnings no deductions were made for
591	591	2 employee contributions to the fund, may be charged to the
592	592	3 municipality reserve for the municipality or participating
593	593	4 instrumentality.
594	594	5 (i) Contributions by participating instrumentalities shall
595	595	6 be determined as provided herein except that the percentage
596	596	7 derived under subparagraph 2 of paragraph (b) of this Section,
597	597	8 and the amount payable under subparagraph 4 of paragraph (a)
598	598	9 of this Section, shall be based on an amortization period of 10
599	599	10 years.
600	600	11 (j) Notwithstanding the other provisions of this Section,
601	601	12 the additional unfunded liability accruing as a result of
602	602	13 Public Act 94-712 shall be amortized over a period of 30 years
603	603	14 beginning on January 1 of the second calendar year following
604	604	15 the calendar year in which Public Act 94-712 takes effect,
605	605	16 except that the employer may provide for a longer amortization
606	606	17 period by adopting a resolution or ordinance specifying a
607	607	18 35-year or 40-year period and submitting a certified copy of
608	608	19 the ordinance or resolution to the fund no later than June 1 of
609	609	20 the calendar year following the calendar year in which Public
610	610	21 Act 94-712 takes effect.
611	611	22 (k) If the amount of a participating employee's reported
612	612	23 earnings for any of the 12-month periods used to determine the
613	613	24 final rate of earnings exceeds the employee's 12-month
614	614	25 reported earnings with the same employer for the previous year
615	615	26 by the greater of 6% or 1.5 times the annual increase in the
616	616
617	617
618	618
619	619
620	620
621	621	SB2915 - 16 - LRB103 36207 RPS 66300 b
622	622
623	623
624	624	SB2915- 17 -LRB103 36207 RPS 66300 b SB2915 - 17 - LRB103 36207 RPS 66300 b
625	625	SB2915 - 17 - LRB103 36207 RPS 66300 b
626	626	1 Consumer Price Index-U, as established by the United States
627	627	2 Department of Labor for the preceding September, the
628	628	3 participating municipality or participating instrumentality
629	629	4 that paid those earnings shall pay to the Fund, in addition to
630	630	5 any other contributions required under this Article, the
631	631	6 present value of the increase in the pension resulting from
632	632	7 the portion of the increase in reported earnings that is in
633	633	8 excess of the greater of 6% or 1.5 times the annual increase in
634	634	9 the Consumer Price Index-U, as determined by the Fund. This
635	635	10 present value shall be computed on the basis of the actuarial
636	636	11 assumptions and tables used in the most recent actuarial
637	637	12 valuation of the Fund that is available at the time of the
638	638	13 computation.
639	639	14 Whenever it determines that a payment is or may be
640	640	15 required under this subsection (k), the fund shall calculate
641	641	16 the amount of the payment and bill the participating
642	642	17 municipality or participating instrumentality for that amount.
643	643	18 The bill shall specify the calculations used to determine the
644	644	19 amount due. If the participating municipality or participating
645	645	20 instrumentality disputes the amount of the bill, it may,
646	646	21 within 30 days after receipt of the bill, apply to the fund in
647	647	22 writing for a recalculation. The application must specify in
648	648	23 detail the grounds of the dispute. Upon receiving a timely
649	649	24 application for recalculation, the fund shall review the
650	650	25 application and, if appropriate, recalculate the amount due.
651	651	26 The participating municipality and participating
652	652
653	653
654	654
655	655
656	656
657	657	SB2915 - 17 - LRB103 36207 RPS 66300 b
658	658
659	659
660	660	SB2915- 18 -LRB103 36207 RPS 66300 b SB2915 - 18 - LRB103 36207 RPS 66300 b
661	661	SB2915 - 18 - LRB103 36207 RPS 66300 b
662	662	1 instrumentality contributions required under this subsection
663	663	2 (k) may be paid in the form of a lump sum within 90 days after
664	664	3 receipt of the bill. If the participating municipality and
665	665	4 participating instrumentality contributions are not paid
666	666	5 within 90 days after receipt of the bill, then interest will be
667	667	6 charged at a rate equal to the fund's annual actuarially
668	668	7 assumed rate of return on investment compounded annually from
669	669	8 the 91st day after receipt of the bill. Payments must be
670	670	9 concluded within 3 years after receipt of the bill by the
671	671	10 participating municipality or participating instrumentality.
672	672	11 When assessing payment for any amount due under this
673	673	12 subsection (k), the fund shall exclude earnings increases
674	674	13 resulting from overload or overtime earnings.
675	675	14 When assessing payment for any amount due under this
676	676	15 subsection (k), the fund shall exclude earnings increases
677	677	16 resulting from payments for unused vacation time, but only for
678	678	17 payments for unused vacation time made in the final 3 months of
679	679	18 the final rate of earnings period.
680	680	19 When assessing payment for any amount due under this
681	681	20 subsection (k), the fund shall also exclude earnings increases
682	682	21 attributable to standard employment promotions resulting in
683	683	22 increased responsibility and workload.
684	684	23 When assessing payment for any amount due under this
685	685	24 subsection (k), the fund shall exclude reportable earnings
686	686	25 increases resulting from periods where the member was paid
687	687	26 through workers' compensation.
688	688
689	689
690	690
691	691
692	692
693	693	SB2915 - 18 - LRB103 36207 RPS 66300 b
694	694
695	695
696	696	SB2915- 19 -LRB103 36207 RPS 66300 b SB2915 - 19 - LRB103 36207 RPS 66300 b
697	697	SB2915 - 19 - LRB103 36207 RPS 66300 b
698	698	1 This subsection (k) does not apply to earnings increases
699	699	2 due to amounts paid as required by federal or State law or
700	700	3 court mandate or to earnings increases due to the
701	701	4 participating employee returning to the regular number of
702	702	5 hours worked after having a temporary reduction in the number
703	703	6 of hours worked.
704	704	7 This subsection (k) does not apply to earnings increases
705	705	8 paid to individuals under contracts or collective bargaining
706	706	9 agreements entered into, amended, or renewed before January 1,
707	707	10 2012 (the effective date of Public Act 97-609), earnings
708	708	11 increases paid to members who are 10 years or more from
709	709	12 retirement eligibility, or earnings increases resulting from
710	710	13 an increase in the number of hours required to be worked.
711	711	14 When assessing payment for any amount due under this
712	712	15 subsection (k), the fund shall also exclude earnings
713	713	16 attributable to personnel policies adopted before January 1,
714	714	17 2012 (the effective date of Public Act 97-609) as long as those
715	715	18 policies are not applicable to employees who begin service on
716	716	19 or after January 1, 2012 (the effective date of Public Act
717	717	20 97-609).
718	718	21 The change made to this Section by Public Act 100-139 is a
719	719	22 clarification of existing law and is intended to be
720	720	23 retroactive to January 1, 2012 (the effective date of Public
721	721	24 Act 97-609).
722	722	25 (Source: P.A. 102-849, eff. 5-13-22; 103-464, eff. 8-4-23.)
723	723
724	724
725	725
726	726
727	727
728	728	SB2915 - 19 - LRB103 36207 RPS 66300 b
729	729
730	730
731	731	SB2915- 20 -LRB103 36207 RPS 66300 b SB2915 - 20 - LRB103 36207 RPS 66300 b
732	732	SB2915 - 20 - LRB103 36207 RPS 66300 b
733	733	1 (40 ILCS 5/7-205) (from Ch. 108 1/2, par. 7-205)
734	734	2 Sec. 7-205. Reserves for annuities. Appropriate reserves
735	735	3 shall be created for payment of all annuities granted under
736	736	4 this Article at the time such annuities are granted and in
737	737	5 amounts determined to be necessary under actuarial tables
738	738	6 adopted by the Board upon recommendation of the actuary of the
739	739	7 fund. All annuities payable shall be charged to the annuity
740	740	8 reserve.
741	741	9 1. Amounts credited to annuity reserves shall be derived
742	742	10 by transfer of all the employee credits from the appropriate
743	743	11 employee reserves and by charges to the municipality reserve
744	744	12 of those municipalities in which the retiring employee has
745	745	13 accumulated service. If a retiring employee has accumulated
746	746	14 service in more than one participating municipality or
747	747	15 participating instrumentality, the municipality charges for
748	748	16 non-concurrent service shall be calculated as follows:
749	749	17 (A) for purposes of calculating the annuity reserve,
750	750	18 an annuity will be calculated based on service and
751	751	19 adjusted earnings with each employer (without regard to
752	752	20 the vesting requirement contained in subsection (a) of
753	753	21 Section 7-142); and
754	754	22 (B) the difference between the municipality charges
755	755	23 for the actual annuity granted and the aggregation of the
756	756	24 municipality charges based upon the ratio of each from
757	757	25 those calculations to the aggregated total from paragraph
758	758	26 (A) of this item 1.
759	759
760	760
761	761
762	762
763	763
764	764	SB2915 - 20 - LRB103 36207 RPS 66300 b
765	765
766	766
767	767	SB2915- 21 -LRB103 36207 RPS 66300 b SB2915 - 21 - LRB103 36207 RPS 66300 b
768	768	SB2915 - 21 - LRB103 36207 RPS 66300 b
769	769	1 Aggregate municipality charges for concurrent service
770	770	2 shall be prorated based on the employee's earnings. The
771	771	3 municipality charges for retirement annuities calculated under
772	772	4 subparagraph a. of paragraph 1. of subsection (a) of Section
773	773	5 7-142 shall be prorated based on actual contributions.
774	774	6 2. Supplemental annuities shall be handled as a separate
775	775	7 annuity and amounts to be credited to the annuity reserve
776	776	8 therefor shall be derived in the same manner as a regular
777	777	9 annuity.
778	778	10 3. When a retirement annuity is granted to an employee
779	779	11 with a spouse eligible for a surviving spouse annuity, there
780	780	12 shall be credited to the annuity reserve an amount to fund the
781	781	13 cost of both the retirement and surviving spouse annuity as a
782	782	14 joint and survivors annuity.
783	783	15 4. Beginning January 1, 1989, when a retirement annuity is
784	784	16 awarded, an amount equal to the present value of the $8,000
785	785	17 ($3,000 for those who first retired prior to the effective
786	786	18 date of this amendatory Act of the 103rd General Assembly)
787	787	19 $3,000 death benefit payable upon the death of the annuitant
788	788	20 shall be transferred to the annuity reserve from the
789	789	21 appropriate municipality reserves in the same manner as the
790	790	22 transfer for annuities.
791	791	23 5. All annuity reserves shall be revalued annually as of
792	792	24 December 31. Beginning as of December 31, 1973, adjustment
793	793	25 required therein by such revaluation shall be charged or
794	794	26 credited to the earnings and experience variation reserve.
795	795
796	796
797	797
798	798
799	799
800	800	SB2915 - 21 - LRB103 36207 RPS 66300 b
801	801
802	802
803	803	SB2915- 22 -LRB103 36207 RPS 66300 b SB2915 - 22 - LRB103 36207 RPS 66300 b
804	804	SB2915 - 22 - LRB103 36207 RPS 66300 b
805	805	1 6. There shall be credited to the annuity reserve all of
806	806	2 the payments made by annuitants under Section 7-144.2, plus an
807	807	3 additional amount from the earnings and experience variation
808	808	4 reserve to fund the cost of the incremental annuities granted
809	809	5 to annuitants making these payments.
810	810	6 7. As of December 31, 1972, the excess in the annuity
811	811	7 reserve shall be transferred to the municipality reserves. An
812	812	8 amount equal to the deficiency in the reserve of participating
813	813	9 municipalities and participating instrumentalities which have
814	814	10 no participating employees shall be allocated to their
815	815	11 reserves. The remainder shall be allocated in amounts
816	816	12 proportionate to the present value, as of January 1, 1972, of
817	817	13 annuities of annuitants of the remaining participating
818	818	14 municipalities and participating instrumentalities.
819	819	15 (Source: P.A. 97-319, eff. 1-1-12; 97-609, eff. 1-1-12;
820	820	16 97-813, eff. 7-13-12.)
821	821	17 (40 ILCS 5/7-206) (from Ch. 108 1/2, par. 7-206)
822	822	18 Sec. 7-206. Death Reserve. All death benefit payments
823	823	19 shall be charged to the Death Reserve, other than the $8,000
824	824	20 ($3,000 for those who first retired prior to the effective
825	825	21 date of this amendatory Act of the 103rd General Assembly)
826	826	22 $3,000 death benefits paid after December 31, 1988 upon the
827	827	23 death of an annuitant. All contributions for death purposes
828	828	24 under Section 7-172(b)4 shall be credited to the same reserve.
829	829	25 Whenever the balance in such reserve at the close of a year
830	830
831	831
832	832
833	833
834	834
835	835	SB2915 - 22 - LRB103 36207 RPS 66300 b
836	836
837	837
838	838	SB2915- 23 -LRB103 36207 RPS 66300 b SB2915 - 23 - LRB103 36207 RPS 66300 b
839	839	SB2915 - 23 - LRB103 36207 RPS 66300 b
840	840	1 exceeds 100% of the average annual charges to this account
841	841	2 during the 3 preceding calendar years, the basic actuarial
842	842	3 assumptions upon which municipality contribution rates for
843	843	4 these purposes are based, shall be reviewed and revised in
844	844	5 such manner as is deemed necessary to reduce such balance.
845	845	6 (Source: P.A. 89-136, eff. 7-14-95.)
846	846
847	847
848	848
849	849
850	850
851	851	SB2915 - 23 - LRB103 36207 RPS 66300 b