99th general assembly state of illinois 2015 and...
TRANSCRIPT
99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
INTRODUCED ________________, BY
SYNOPSIS AS INTRODUCED:
See Index
Creates the Local Government Bankruptcy Neutral Evaluation Act.Authorizes a neutral evaluation process if a local public entity is unableto meet its financial obligations. Provides for the selection of anevaluator, the evaluation process, and declaration of a fiscal emergency.Amends the Illinois Public Labor Relations Act and the Illinois EducationalLabor Relations Act. Prohibits collective bargaining and negotiation overcertain matters. Amends various Acts concerning State employees to createnew standards for overtime, vacation, and sick days. Creates an EmployeeConsideration Pension Transition Program that provides 3 compensationprograms for Tier 1 members of the State Employees' Retirement System whoelect to become Tier 2 members. Amends the Illinois Pension Code. In theState Employee Article, requires every Tier 1 member to elect whether toremain in Tier 1 or change to Tier 2 with respect to future service. In theGeneral Assembly, Downstate Police, Downstate Firefighter, StateUniversities, Downstate Teachers, and Chicago Teachers Articles, requiresTier 1 employees to make an irrevocable election to either agree or not toagree to have the amount of the automatic annual increases in theirannuities calculated under Tier 2. Establishes a new defined benefit anddefined contribution plan for downstate and Chicago police and firefightersnew hires. Requires that downstate police and downstate firefighter fundstransfer all investment assets to IMRF. Creates the Cook County PensionReform Act. Allows the County Board of Cook County, by resolution, toselect between 2 options relating to changes in employee benefits. Amendsthe Public Safety Employee Benefits Act. Adds a definition of "catastrophicinjury". Makes other changes. Effective immediately.
LRB099 13050 RPS 36929 b
FISCAL NOTE ACTMAY APPLY
PENSION IMPACTNOTE ACT MAY
APPLY
STATE MANDATESACT MAY REQUIREREIMBURSEMENT
A BILL FOR
*LRB09913050RPS36929b*
AN ACT concerning government.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
ARTICLE 1.
LOCAL GOVERNMENT BANKRUPTCY NEUTRAL EVALUATION ACT
Section 1-1. Short title. This Act may be cited as the
Local Government Bankruptcy Neutral Evaluation Act. References
in this Article to "this Act" mean this Article.
Section 1-3. Findings. Filing for Chapter 9 can reduce
service levels to the taxpayers and residents of a local public
entity. In some circumstances, it can have major short-and
long-term fiscal consequences for the entity, the surrounding
entities, and the State. Filing for bankruptcy protection under
Chapter 9 should be considered a last resort, to be instituted
only after other reasonable efforts have been made to avoid a
bankruptcy filing or otherwise appropriately plan for it. It is
in the interest of the State, units of local government, and
the public that local governmental entities have sufficiently
sound financial capacity to provide required services to the
public during any restructuring or financial reorganization
process. Furthermore, it is in the best interest of the public,
the State, and local governmental entities that employees,
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trade creditors, bondholders, and other interest-holders be
included in an appropriate restructuring process and have an
adequate understanding of the financial capacity of local
governmental entities and their obligations, as a clear
understanding of both is necessary for any restructuring or
reorganization process.
To the extent financial relief granted through Chapter 9
can affect debt service payments, the bondholders have a direct
interest in the Chapter 9 process, particularly prior to
filing. Therefore, it is important for those parties to be able
to participate in a prefiling confidential neutral evaluation
process that could assist parties in reaching a settlement and
avoiding a bankruptcy filing or otherwise lead to a
pre-negotiated consensual plan of readjustment as clearly
contemplated by subsection (c) of Section 109 of Title 11 of
the United States Code.
To the extent financial relief granted through Chapter 9
could affect public employee compensation, employees have a
direct interest in the Chapter 9 process, particularly prior to
filing. Therefore, it is important for those parties to be able
to participate in a prefiling confidential neutral evaluation
process that could assist parties in reaching a settlement or
otherwise lead to a pre-negotiated, consensual plan of
adjustment and avoid a Chapter 9 filing.
Given the connection between State allocations and local
budgets, the State has a role in assisting local public
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entities to address potential insolvency with the goal of
averting bankruptcy filings where possible and providing a
process designed to make the debt restructuring process in or
outside of a Chapter 9 bankruptcy as cost effective and
efficient as possible for all participants.
Illinois taxpayers who rely on public safety, senior,
recreational, health, library, and other public services, as
well as those who own and operate businesses in our
communities, deserve every reasonable and appropriate effort
that State and local government can make to avoid adverse
consequences of Chapter 9 bankruptcy filings, particularly
where a neutral evaluation may lead to the avoidance of Chapter
9 filing by an out-of-court resolution of outstanding
obligations and disputes.
Resolving local and State business and financial issues in
a timely, fair, and cost-effective manner is an integral part
of a successful government and is in the public interest. It
has long been recognized that alternative dispute resolution
proceedings, like a neutral evaluation, offer an economical,
discreet, and expeditious way to resolve potentially
devastating situations.
Through the neutral evaluation process, the neutral
evaluator, a specially trained, neutral third party, can assist
the local public entity and its creditors and stakeholders to
fully explore alternatives, while allowing the interested
parties to exchange information in a confidential environment
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with the assistance and supervision of a neutral evaluator to
determine whether the entity's contractual and financial
obligations can be renegotiated on a consensual basis.
Section 1-5. Eligibility. A local public entity in this
State may file a petition and exercise powers pursuant to
applicable federal bankruptcy law if either of the following
apply: (i) pursuant to Section 1-15 of this Act, a neutral
evaluation process has been initiated by the local public
entity and has ended, or (ii) the local public entity declares
a fiscal emergency and adopts a resolution by a majority vote
of the governing board pursuant to Section 1-20 of this Act.
Section 1-10. Definitions. As used in this Act:
"Chapter 9" means Chapter 9 of Title 11 of the United
States Code.
"Creditor" means either of the following:
(1) A person or entity that has a noncontingent claim
against a local public entity that arose at the time of or
before the commencement of the neutral evaluation process
and whose claim represents at least $5,000,000 or comprises
more than 5% of the local public entity's debt or
obligations, whichever is less.
(2) A person or entity that would have a noncontingent
claim against the local public entity upon the rejection of
an executory contract or unexpired lease in a Chapter 9
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case and whose claim would represent at least $5,000,000 or
comprises more than 5% of the local public entity's debt or
obligations, whichever is less.
"Debtor" means a local public entity that may file for
bankruptcy under Chapter 9.
"Good faith" means participation by a party in the neutral
evaluation process with the intent to negotiate toward a
resolution of the issues that are the subject of the neutral
evaluation process, including the timely provision of complete
and accurate information to provide the relevant parties
through the neutral evaluation process with sufficient
information, in a confidential manner, to negotiate the
readjustment of the local public entity's debt.
"Interested party" means a trustee, a committee of
creditors, an affected creditor, an indenture trustee, a
pension fund, a bondholder, a union that, under its collective
bargaining agreements, has standing to initiate contract or
debt restructuring negotiations with the local public entity,
or a representative selected by an association of retired
employees of the public entity who receive income from the
public entity convening the neutral evaluation. A local public
entity may invite holders of contingent claims to participate
as interested parties in the neutral evaluation if the local
public entity determines that the contingency is likely to
occur and the claim may represent $5,000,000 or comprise more
than 5% of the local public entity's debt or obligations,
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whichever is less.
"Local public entity" means any county, municipality,
township, special district, public authority, public agency,
unit of local government, school district, or any other entity
that is a political subdivision or public agency or
instrumentality of the State, or that qualifies as a debtor
under any other federal bankruptcy law applicable to local
public entities.
"Local public entity representative" means the person or
persons designated by the local public entity with authority to
make recommendations and to attend the neutral evaluation on
behalf of the governing body of the local public entity.
"Neutral evaluation" is a form of non-binding alternative
dispute resolution.
Section 1-15. Neutral evaluation process.
(a) A local public entity may initiate the neutral
evaluation process if the local public entity is or likely will
become unable to meet its financial obligations as and when
those obligations are due or become due and owing. The local
public entity shall initiate the neutral evaluation by
providing notice by certified mail of a request for neutral
evaluation to interested parties, as defined in Section 1-10 of
this Act.
(b) Interested parties shall respond within 10 business
days after receipt of notice of the local public entity's
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request for neutral evaluation.
(c) The local public entity and the interested parties
agreeing to participate in the neutral evaluation shall,
through a mutually agreed upon process, select the neutral
evaluator to oversee the neutral evaluation process and
facilitate all discussions in an effort to resolve their
disputes.
If the local public entity and interested parties fail to
agree on a neutral evaluator within 7 days after the interested
parties have responded to the notification sent by the public
entity, the public entity shall select 5 qualified neutral
evaluators and provide their names, references, and
backgrounds to the participating interested parties. Within 3
business days, a majority of participating interested parties
may strike up to 4 names from the list. If a majority of
participating interested parties strikes 4 names, the
remaining candidate shall be the neutral evaluator. If the
majority of participating parties strikes fewer than 4 names,
the local public entity may choose which of the remaining
candidates shall be the neutral evaluator.
(d) A neutral evaluator shall have experience and training
in conflict resolution and alternative dispute resolution and
shall meet at least one of the following qualifications:
(1) at least 10 years of high-level business or legal
practice involving bankruptcy or service as a United States
Bankruptcy Judge; or
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(2) professional experience or training in local
government finance and one or more of the following areas:
local government organization, local government debt
restructuring, local government finances dispute
resolution, Chapter 9 bankruptcy, public finance,
taxation, Illinois Constitutional law, Illinois labor law,
or federal labor law.
(e) The neutral evaluator shall be impartial, objective,
independent, and free from prejudice. The neutral evaluator
shall not act with partiality or prejudice based on any
participant's personal characteristics, background, values or
beliefs, or performance during the neutral evaluation process.
(f) The neutral evaluator shall avoid a conflict of
interest or the appearance of a conflict of interest during the
neutral evaluation process. The neutral evaluator shall make a
reasonable inquiry to determine whether there are any facts
that a reasonable individual would consider likely to create a
potential or actual conflict of interest. Notwithstanding
subsection (n) of this Section, if the neutral evaluator is
informed of the existence of any facts that a reasonable
individual would consider likely to create a potential or
actual conflict of interest, the neutral evaluator shall
disclose these facts in writing to the local public entity and
all interested parties involved in the neutral evaluation. If
any party to the neutral evaluation objects to the neutral
evaluator, that party shall notify all other parties to the
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neutral evaluation, including the neutral evaluator, within 15
days after receipt of the notice from the neutral evaluator,
and the neutral evaluator shall withdraw and a new neutral
evaluator shall be selected pursuant to subsections (c) and (d)
of this Section.
(g) Prior to the neutral evaluation process, the neutral
evaluator shall not establish another relationship with any of
the parties in a manner that would raise questions about the
integrity of the neutral evaluation, except that the neutral
evaluator may conduct further neutral evaluations regarding
other potential local public entities that may involve some of
the same or similar constituents to a prior mediation.
(h) The neutral evaluator shall conduct the neutral
evaluation process in a manner that promotes voluntary,
uncoerced decision-making in which each party makes free and
informed choices regarding the process and outcome.
(i) The neutral evaluator shall not impose a settlement on
the parties. The neutral evaluator shall use his or her best
efforts to assist the parties to reach a satisfactory
resolution of their disputes. Subject to the discretion of the
neutral evaluator, the neutral evaluator may make oral or
written recommendations for settlement or plan of readjustment
to a party privately or to all parties jointly.
(j) The neutral evaluator shall inform the local public
entity and all parties of the provisions of Chapter 9 relative
to other chapters of the Bankruptcy Code. This instruction
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shall highlight the limited authority of United States
bankruptcy judges in Chapter 9.
(k) The neutral evaluator may request from the parties
documentation and other information that the neutral evaluator
believes may be helpful in assisting the parties to address the
obligations between them. This documentation may include the
status of funds of the local public entity that clearly
distinguishes between general funds and special funds, and the
proposed plan of readjustment prepared by the local public
entity.
(l) The neutral evaluator shall provide counsel and
guidance to all parties, shall not be a legal representative of
any party, and shall not have a fiduciary duty to any party.
(m) In the event of a settlement with all interested
parties, the neutral evaluator may assist the parties in
negotiating a pre-petitioned, pre-agreed plan of readjustment
in connection with a potential Chapter 9 filing.
(n) If at any time during the neutral evaluation process
the local public entity and a majority of the representatives
of the interested parties participating in the neutral
evaluation wish to remove the neutral evaluator, the local
public entity or any interested party may make a request to the
other interested parties to remove the neutral evaluator. If
the local public entity and the majority of the interested
parties agree that the neutral evaluator should be removed, the
parties shall select a new neutral evaluator.
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(o) The local public entity and all interested parties
participating in the neutral evaluation process shall
negotiate in good faith. Failure to do so is grounds for ending
the neutral evaluation process and satisfying the eligibility
requirements of item (i) of Section 1-5 of this Act.
(p) The local public entity and interested parties shall
provide a representative of each party to attend all neutral
evaluation sessions. Each representative shall have the
authority to settle and resolve disputes or shall be in a
position to present any proposed settlement or plan of
readjustment to the parties participating in the neutral
evaluation.
(q) The parties shall maintain the confidentiality of the
neutral evaluation process and shall not disclose statements
made, information disclosed, or documents prepared or
produced, during the neutral evaluation process, at the
conclusion of the neutral evaluation process or during any
bankruptcy proceeding unless either of the following occur:
(i) all persons that conduct or otherwise participate
in the neutral evaluation expressly agree in writing to
disclosure of the communication, document, or writing; or
(ii) the information is deemed necessary by a judge
presiding over a bankruptcy proceeding pursuant to Chapter
9 of Title 11 of the United States Code to determine
eligibility of a local public entity to proceed with a
bankruptcy proceeding pursuant to subsection (c) of
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Section 109 of Title 11 of the United States Code.
(r) The neutral evaluation established by this process
shall not last for more than 60 days after the date the
evaluator is selected, unless the local public entity or a
majority of participating interested parties elect to extend
the process for up to 30 additional days. The neutral
evaluation process shall not last for more than 90 days after
the date the evaluator is selected unless the local public
entity and a majority of the interested parties agree to an
extension.
(s) The local public entity shall pay 50% of the costs of
neutral evaluation, including but not limited to the fees of
the evaluator, and the creditors shall pay the balance, unless
otherwise agreed to by the parties.
(t) The neutral evaluation process shall end if any of the
following occur:
(i) the parties execute a settlement agreement;
(ii) the parties reach an agreement or proposed plan of
readjustment that requires the approval of a bankruptcy
judge;
(iii) the neutral evaluation process has exceeded the
later of (i) 60 days after the date the neutral evaluator
was selected, or (ii) 90 days after the initiation of the
neutral evaluation process by the local public entity
pursuant to subsection (a) of Section 1-15 of this Act, the
parties have not reached an agreement, and the local public
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entity and a majority of the interested parties do not
agree to extend the neutral evaluation process;
(iv) the local public entity initiated the neutral
evaluation process pursuant to subsection (a) of this
Section and received no responses from interested parties
within the time specified in subsection (b) of this
Section; or
(v) the fiscal condition of the local public entity
deteriorates to the point that a fiscal emergency is
declared pursuant to Section 1-20 of this Act and
necessitates the need to file a petition and exercise
powers pursuant to applicable federal bankruptcy law.
Section 1-20. Declaration of fiscal emergency.
Notwithstanding any other Section of this Act, a local public
entity may file a petition and exercise powers pursuant to
applicable federal bankruptcy law, if the local public entity
declares a fiscal emergency and adopts a resolution by a
majority vote of the governing board at a noticed public
hearing that includes findings that the financial state of the
local public entity jeopardizes the health, safety, or
well-being of the residents of the local public entity's
jurisdiction or service area absent the protections of Chapter
9. The resolution shall make findings that the public entity is
or will be unable to pay its obligations within the next 60
days. Prior to a declaration of fiscal emergency and adoption
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of a resolution, the local public entity shall place an item on
the agenda of a noticed public hearing on the fiscal condition
of the entity to take public comment. The board of supervisors
of a county that intends to take action pursuant to this
Section and places a notice on an agenda regarding a proposed
resolution to declare a fiscal emergency may require local
agencies with funds invested in the county treasury to provide
a 5-day notice of withdrawal before the county is required to
comply with a request for withdrawal of funds by that local
agency.
Section 1-25. Liabilities. This Act shall not impose any
liability or responsibility, in law or equity, upon the State,
any department, agency, or other entity of the State, or any
officer or employee of the State, for any action taken by any
local public entity pursuant to this Act, for any violation of
the provisions of this Act by any local public entity, or for
any failure to comply with the provisions of this Act by any
local public entity. No cause of action against the State, or
any department, agency, entity of the State, or any officer or
employee of the State acting in their official capacity may be
maintained for any activity authorized by this Act, or for the
act of a local public entity filing under Chapter 9 of Title 11
of the United States Code, including any proceeding following a
local public entity's filing.
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Section 1-30. Confidential information. All records,
including without limitation all reports, writings, letters,
memoranda, and other documentary materials, that are prepared
for or used in connection with the neutral evaluation process,
the filing of a federal bankruptcy petition, or other actions
taken by a local public entity or a neutral evaluator under
this Act are exempt from disclosure, inspection, and copying
under the Freedom of Information Act.
Section 1-35. Statutory lien for bonds.
(a) As used in this Section:
"Bond" or "bonds" has the same meaning given to that term
under Section 3 of the Local Government Debt Reform Act.
"Statutory lien" has the meaning given to that term under
11 U.S.C. 101(53) of the Federal Bankruptcy Code.
(b) All bonds, including general obligation bonds and
revenue bonds issued and sold under the Local Government Debt
Reform Act or related laws, including bonds issued under home
rule powers, issued by a local public entity shall be secured
by a statutory lien on all revenues received pursuant to the
levy and collection of tax or the collection or deposit of
money, funds, or revenues so pledged to the payment of the
bonds. The statutory lien shall automatically attach from the
time such pledge is made without further action or
authorization by the governing authority of the local public
entity. The statutory lien shall be valid and binding from the
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time the bonds are executed and delivered without any physical
delivery thereof or further act required, and shall be a first
priority lien, unless the bonds so otherwise provide.
The revenues received pursuant to the levy and collection
of the taxes or the collection or deposit of revenues, money,
or funds so pledged shall be immediately subject to the
statutory lien, and the statutory lien shall automatically
attach to the revenues and be effective, binding, and
enforceable against the local public entity or its successors,
transferees, and creditors, and all others asserting rights
therein or having claims of any kind in tort, contract, or
otherwise against the local public entity, irrespective of
whether those parties have notice of the lien and without the
need for any physical delivery, recordation, filing, or further
act. In addition, revenue bonds issued by a local public entity
under the Local Government Debt Reform Act or related laws,
including bonds issued by a local public entity with home rule
authority, shall have all of the protection afforded to special
revenue under 11 U.S.C. 901 et seq. of the federal Bankruptcy
Code, to the extent applicable.
Section 1-90. The Open Meetings Act is amended by changing
Section 2 as follows:
(5 ILCS 120/2) (from Ch. 102, par. 42)
Sec. 2. Open meetings.
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(a) Openness required. All meetings of public bodies shall
be open to the public unless excepted in subsection (c) and
closed in accordance with Section 2a.
(b) Construction of exceptions. The exceptions contained
in subsection (c) are in derogation of the requirement that
public bodies meet in the open, and therefore, the exceptions
are to be strictly construed, extending only to subjects
clearly within their scope. The exceptions authorize but do not
require the holding of a closed meeting to discuss a subject
included within an enumerated exception.
(c) Exceptions. A public body may hold closed meetings to
consider the following subjects:
(1) The appointment, employment, compensation,
discipline, performance, or dismissal of specific
employees of the public body or legal counsel for the
public body, including hearing testimony on a complaint
lodged against an employee of the public body or against
legal counsel for the public body to determine its
validity.
(2) Collective negotiating matters between the public
body and its employees or their representatives, or
deliberations concerning salary schedules for one or more
classes of employees.
(3) The selection of a person to fill a public office,
as defined in this Act, including a vacancy in a public
office, when the public body is given power to appoint
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under law or ordinance, or the discipline, performance or
removal of the occupant of a public office, when the public
body is given power to remove the occupant under law or
ordinance.
(4) Evidence or testimony presented in open hearing, or
in closed hearing where specifically authorized by law, to
a quasi-adjudicative body, as defined in this Act, provided
that the body prepares and makes available for public
inspection a written decision setting forth its
determinative reasoning.
(5) The purchase or lease of real property for the use
of the public body, including meetings held for the purpose
of discussing whether a particular parcel should be
acquired.
(6) The setting of a price for sale or lease of
property owned by the public body.
(7) The sale or purchase of securities, investments, or
investment contracts. This exception shall not apply to the
investment of assets or income of funds deposited into the
Illinois Prepaid Tuition Trust Fund.
(8) Security procedures and the use of personnel and
equipment to respond to an actual, a threatened, or a
reasonably potential danger to the safety of employees,
students, staff, the public, or public property.
(9) Student disciplinary cases.
(10) The placement of individual students in special
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education programs and other matters relating to
individual students.
(11) Litigation, when an action against, affecting or
on behalf of the particular public body has been filed and
is pending before a court or administrative tribunal, or
when the public body finds that an action is probable or
imminent, in which case the basis for the finding shall be
recorded and entered into the minutes of the closed
meeting.
(12) The establishment of reserves or settlement of
claims as provided in the Local Governmental and
Governmental Employees Tort Immunity Act, if otherwise the
disposition of a claim or potential claim might be
prejudiced, or the review or discussion of claims, loss or
risk management information, records, data, advice or
communications from or with respect to any insurer of the
public body or any intergovernmental risk management
association or self insurance pool of which the public body
is a member.
(13) Conciliation of complaints of discrimination in
the sale or rental of housing, when closed meetings are
authorized by the law or ordinance prescribing fair housing
practices and creating a commission or administrative
agency for their enforcement.
(14) Informant sources, the hiring or assignment of
undercover personnel or equipment, or ongoing, prior or
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future criminal investigations, when discussed by a public
body with criminal investigatory responsibilities.
(15) Professional ethics or performance when
considered by an advisory body appointed to advise a
licensing or regulatory agency on matters germane to the
advisory body's field of competence.
(16) Self evaluation, practices and procedures or
professional ethics, when meeting with a representative of
a statewide association of which the public body is a
member.
(17) The recruitment, credentialing, discipline or
formal peer review of physicians or other health care
professionals for a hospital, or other institution
providing medical care, that is operated by the public
body.
(18) Deliberations for decisions of the Prisoner
Review Board.
(19) Review or discussion of applications received
under the Experimental Organ Transplantation Procedures
Act.
(20) The classification and discussion of matters
classified as confidential or continued confidential by
the State Government Suggestion Award Board.
(21) Discussion of minutes of meetings lawfully closed
under this Act, whether for purposes of approval by the
body of the minutes or semi-annual review of the minutes as
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mandated by Section 2.06.
(22) Deliberations for decisions of the State
Emergency Medical Services Disciplinary Review Board.
(23) The operation by a municipality of a municipal
utility or the operation of a municipal power agency or
municipal natural gas agency when the discussion involves
(i) contracts relating to the purchase, sale, or delivery
of electricity or natural gas or (ii) the results or
conclusions of load forecast studies.
(24) Meetings of a residential health care facility
resident sexual assault and death review team or the
Executive Council under the Abuse Prevention Review Team
Act.
(25) Meetings of an independent team of experts under
Brian's Law.
(26) Meetings of a mortality review team appointed
under the Department of Juvenile Justice Mortality Review
Team Act.
(27) (Blank).
(28) Correspondence and records (i) that may not be
disclosed under Section 11-9 of the Public Aid Code or (ii)
that pertain to appeals under Section 11-8 of the Public
Aid Code.
(29) Meetings between internal or external auditors
and governmental audit committees, finance committees, and
their equivalents, when the discussion involves internal
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control weaknesses, identification of potential fraud risk
areas, known or suspected frauds, and fraud interviews
conducted in accordance with generally accepted auditing
standards of the United States of America.
(30) Those meetings or portions of meetings of a
fatality review team or the Illinois Fatality Review Team
Advisory Council during which a review of the death of an
eligible adult in which abuse or neglect is suspected,
alleged, or substantiated is conducted pursuant to Section
15 of the Adult Protective Services Act.
(31) Meetings and deliberations for decisions of the
Concealed Carry Licensing Review Board under the Firearm
Concealed Carry Act.
(32) Meetings between the Regional Transportation
Authority Board and its Service Boards when the discussion
involves review by the Regional Transportation Authority
Board of employment contracts under Section 28d of the
Metropolitan Transit Authority Act and Sections 3A.18 and
3B.26 of the Regional Transportation Authority Act.
(33) Deliberations about action taken, or which could
be taken, pursuant to the Local Government Bankruptcy
Neutral Evaluation Act.
(d) Definitions. For purposes of this Section:
"Employee" means a person employed by a public body whose
relationship with the public body constitutes an
employer-employee relationship under the usual common law
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rules, and who is not an independent contractor.
"Public office" means a position created by or under the
Constitution or laws of this State, the occupant of which is
charged with the exercise of some portion of the sovereign
power of this State. The term "public office" shall include
members of the public body, but it shall not include
organizational positions filled by members thereof, whether
established by law or by a public body itself, that exist to
assist the body in the conduct of its business.
"Quasi-adjudicative body" means an administrative body
charged by law or ordinance with the responsibility to conduct
hearings, receive evidence or testimony and make
determinations based thereon, but does not include local
electoral boards when such bodies are considering petition
challenges.
(e) Final action. No final action may be taken at a closed
meeting. Final action shall be preceded by a public recital of
the nature of the matter being considered and other information
that will inform the public of the business being conducted.
(Source: P.A. 97-318, eff. 1-1-12; 97-333, eff. 8-12-11;
97-452, eff. 8-19-11; 97-813, eff. 7-13-12; 97-876, eff.
8-1-12; 98-49, eff. 7-1-13; 98-63, eff. 7-9-13; 98-756, eff.
7-16-14; 98-1027, eff. 1-1-15; 98-1039, eff. 8-25-14; revised
10-1-14.)
Section 1-95. The Freedom of Information Act is amended by
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changing Section 7.5 as follows:
(5 ILCS 140/7.5)
Sec. 7.5. Statutory exemptions Exemptions. To the extent
provided for by the statutes referenced below, the following
shall be exempt from inspection and copying:
(a) All information determined to be confidential
under Section 4002 of the Technology Advancement and
Development Act.
(b) Library circulation and order records identifying
library users with specific materials under the Library
Records Confidentiality Act.
(c) Applications, related documents, and medical
records received by the Experimental Organ Transplantation
Procedures Board and any and all documents or other records
prepared by the Experimental Organ Transplantation
Procedures Board or its staff relating to applications it
has received.
(d) Information and records held by the Department of
Public Health and its authorized representatives relating
to known or suspected cases of sexually transmissible
disease or any information the disclosure of which is
restricted under the Illinois Sexually Transmissible
Disease Control Act.
(e) Information the disclosure of which is exempted
under Section 30 of the Radon Industry Licensing Act.
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(f) Firm performance evaluations under Section 55 of
the Architectural, Engineering, and Land Surveying
Qualifications Based Selection Act.
(g) Information the disclosure of which is restricted
and exempted under Section 50 of the Illinois Prepaid
Tuition Act.
(h) Information the disclosure of which is exempted
under the State Officials and Employees Ethics Act, and
records of any lawfully created State or local inspector
general's office that would be exempt if created or
obtained by an Executive Inspector General's office under
that Act.
(i) Information contained in a local emergency energy
plan submitted to a municipality in accordance with a local
emergency energy plan ordinance that is adopted under
Section 11-21.5-5 of the Illinois Municipal Code.
(j) Information and data concerning the distribution
of surcharge moneys collected and remitted by wireless
carriers under the Wireless Emergency Telephone Safety
Act.
(k) Law enforcement officer identification information
or driver identification information compiled by a law
enforcement agency or the Department of Transportation
under Section 11-212 of the Illinois Vehicle Code.
(l) Records and information provided to a residential
health care facility resident sexual assault and death
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review team or the Executive Council under the Abuse
Prevention Review Team Act.
(m) Information provided to the predatory lending
database created pursuant to Article 3 of the Residential
Real Property Disclosure Act, except to the extent
authorized under that Article.
(n) Defense budgets and petitions for certification of
compensation and expenses for court appointed trial
counsel as provided under Sections 10 and 15 of the Capital
Crimes Litigation Act. This subsection (n) shall apply
until the conclusion of the trial of the case, even if the
prosecution chooses not to pursue the death penalty prior
to trial or sentencing.
(o) Information that is prohibited from being
disclosed under Section 4 of the Illinois Health and
Hazardous Substances Registry Act.
(p) Security portions of system safety program plans,
investigation reports, surveys, schedules, lists, data, or
information compiled, collected, or prepared by or for the
Regional Transportation Authority under Section 2.11 of
the Regional Transportation Authority Act or the St. Clair
County Transit District under the Bi-State Transit Safety
Act.
(q) Information prohibited from being disclosed by the
Personnel Records Review Act.
(r) Information prohibited from being disclosed by the
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Illinois School Student Records Act.
(s) Information the disclosure of which is restricted
under Section 5-108 of the Public Utilities Act.
(t) All identified or deidentified health information
in the form of health data or medical records contained in,
stored in, submitted to, transferred by, or released from
the Illinois Health Information Exchange, and identified
or deidentified health information in the form of health
data and medical records of the Illinois Health Information
Exchange in the possession of the Illinois Health
Information Exchange Authority due to its administration
of the Illinois Health Information Exchange. The terms
"identified" and "deidentified" shall be given the same
meaning as in the Health Insurance Accountability and
Portability Act of 1996, Public Law 104-191, or any
subsequent amendments thereto, and any regulations
promulgated thereunder.
(u) Records and information provided to an independent
team of experts under Brian's Law.
(v) Names and information of people who have applied
for or received Firearm Owner's Identification Cards under
the Firearm Owners Identification Card Act or applied for
or received a concealed carry license under the Firearm
Concealed Carry Act, unless otherwise authorized by the
Firearm Concealed Carry Act; and databases under the
Firearm Concealed Carry Act, records of the Concealed Carry
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Licensing Review Board under the Firearm Concealed Carry
Act, and law enforcement agency objections under the
Firearm Concealed Carry Act.
(w) Personally identifiable information which is
exempted from disclosure under subsection (g) of Section
19.1 of the Toll Highway Act.
(x) Information which is exempted from disclosure
under Section 5-1014.3 of the Counties Code or Section
8-11-21 of the Illinois Municipal Code.
(y) Confidential information under the Adult
Protective Services Act and its predecessor enabling
statute, the Elder Abuse and Neglect Act, including
information about the identity and administrative finding
against any caregiver of a verified and substantiated
decision of abuse, neglect, or financial exploitation of an
eligible adult maintained in the Registry established
under Section 7.5 of the Adult Protective Services Act.
(z) Records and information provided to a fatality
review team or the Illinois Fatality Review Team Advisory
Council under Section 15 of the Adult Protective Services
Act.
(aa) Information which is exempted from disclosure
under Section 2.37 of the Wildlife Code.
(bb) All records and information prohibited from being
disclosed, inspected, or copied by the Local Government
Bankruptcy Neutral Evaluation Act.
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(Source: P.A. 97-80, eff. 7-5-11; 97-333, eff. 8-12-11; 97-342,
eff. 8-12-11; 97-813, eff. 7-13-12; 97-976, eff. 1-1-13; 98-49,
eff. 7-1-13; 98-63, eff. 7-9-13; 98-756, eff. 7-16-14; 98-1039,
eff. 8-25-14; 98-1045, eff. 8-25-14; revised 10-1-14.)
ARTICLE 3.
THE COOK COUNTY PENSION REFORM ACT
PART 1.
Section 3-101. Short title. This Article may be cited as
the Cook County Pension Reform Act. References in this Article
to "this Act" mean this Article.
Section 3-102. Cook County option. On or before 60 days
after the effective date of this Act, the County Board of Cook
County may by resolution select either: (1) the Cook County
Annuitant Healthcare Trust Law, the changes to Articles 9 and
10 of the Illinois Pension Code, the changes to Article 1 of
the Illinois Pension Code (as they relate to the changes to
Article 9 of the Illinois Pension Code), and the Counties Code
described in Part 2 of this Act; or (2) the changes to Article
9 of the Illinois Pension Code described in Part 3 of this Act.
Upon adoption of the resolution, the changes described in
whichever Part of this Act that is selected shall become
operative as provided in that Part.
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Section 3-103. Notice of adoption of the resolution. Upon
adoption of the resolution pursuant to Section 3-102 of this
Act, the Clerk of Cook County shall file with the Index
Department of the Office of the Secretary of State a certified
copy of the resolution.
Section 3-104. Revision of statutes upon adoption of the
resolution. As soon as practical after filing of the notice
required under Section 3-103 and notwithstanding and provision
of law to the contrary, the Legislative Reference Bureau shall
prepare text of the relevant statutes conforming to the
selection made by the Cook County Board under Section 3-102 and
shall file that text as provided under Section 5.04 of the
Legislative Reference Bureau Act.
PART 2.
Section 3-201. Short title. This Part may be cited as the
Cook County Annuitant Healthcare Trust Law. References in this
Part to "this Law" mean this Part. References in this Part to
"this Act" mean Part 1 of this Act or this Part.
Section 3-202. Cook County Pension Reform Option A. If and
only if the County Board of Cook County by resolution adopted
under Section 3-102 of this Act selects this Part and the
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changes made to Articles 9 and 10 of the Illinois Pension Code,
Article 1 of the Illinois Pension Code (as those changes relate
to the changes to Articles 9 and 10 of the Illinois Pension
Code), and the Counties Code described in this Part and files
the notice required in Section 3-103 of this Act, then the
changes described in this Part shall become operative as
provided in Section 3-208 of this Act.
Section 3-203. Cook County Annuitant Healthcare Trust.
(a) On the effective date of this Part, there is
established an annuitant healthcare trust, and within the
trust, a budget stabilization fund, both for the strict and
sole purpose of financing and providing healthcare benefits to
eligible annuitants of the annuity and benefit funds created
under Articles 9 (Cook County) and 10 (Cook County Forest
Preserve District) of the Illinois Pension Code, in accordance
with the terms and conditions set forth in this Section and the
policies and procedures established by the board of trustees of
the annuitant healthcare trust. The annuitant healthcare trust
shall be solely responsible for providing healthcare benefits
to eligible annuitants as soon as possible, but no later than
January 1, 2016.
The budget stabilization fund of the annuitant healthcare
trust shall be maintained to ensure the ability of the
annuitant healthcare trust to absorb annual variances from
budgeted expenditures. The corpus of this fund shall be funded
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with a deposit of $40,000,000 from Cook County and $10,000,000
from the Cook County Forest Preserve District as soon as
possible, but no later than January 1, 2016. The corpus of the
fund shall not be incorporated nor utilized in the adoption of
an annual budget, and only interest earnings of the budget
stabilization fund shall be authorized to be included in an
annual budget of the annuitant healthcare trust fund.
(b) A board of 6 members shall constitute the board of
trustees authorized to carry out the provisions of this
Section. The board of trustees shall be known as the "Board of
Trustees of the Annuitant Healthcare Trust". All of the members
shall be appointed as follows:
(1) Two members shall be the persons appointed to the
Retirement Board of the County Employees' and Officers'
Annuity and Benefit Fund of Cook County by the President of
the Cook County Board of Commissioners pursuant to Section
9-185 of the Illinois Pension Code.
(2) One member shall be the chief financial officer of
the Cook County Forest Preserve District.
(3) Three members shall be appointed by the Retirement
Board of the County Employees' and Officers' Annuity and
Benefit Fund of Cook County from among its members holding
elected positions, at least one of whom shall be an
annuitant member and at least one of whom shall be an
employee member.
The term of a trustee appointed under paragraph (1) or (3)
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shall terminate upon the expiration or termination of the
trustee's term on the Retirement Board. Trustees shall serve
until a successor has been appointed and qualified, or until
resignation, death, incapacity, or disqualification.
Any person designated or selected as a trustee of the
annuitant healthcare trust shall qualify by taking an oath of
office that he or she will diligently and honestly administer
the affairs of the healthcare trust, will fulfill his or her
duties and obligations as a fiduciary for the healthcare trust
and its beneficiaries, and will not knowingly violate or
willfully permit the violation of any of the provisions of law.
(c) Each trustee shall cast an individual vote. For the
year 2016 and every year thereafter, the trustees shall
develop, adopt, authorize, and implement a balanced annual
healthcare budget and program through which the trust shall,
through the means and to the degree established by the
trustees, offer and deliver healthcare benefits to annuitants
through any legally available means, provided that: (i) the
adoption of the trust's healthcare budget and program shall not
take place except through a majority vote of the trustees; and
(ii) said annual budgets are balanced and limit annual trust
expenditures to $50,000,000, adjusted annually as provided in
subsection (h-5), plus interest earnings derived from the
budget stabilization fund, donations, and grants.
(d) Each trustee shall have the rights, privileges,
authority and obligations that are usual and customary for such
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fiduciaries.
(e) No later than January 1, 2016, the County shall
contribute $40,000,000 and the District shall contribute
$10,000,000 to the budget stabilization fund within the
annuitant healthcare trust.
(f) In fiscal year 2016 and in every year thereafter, the
County shall contribute to the annuitant healthcare trust
$50,000,000, adjusted annually as provided in subsection (g).
The County must make payments toward this annual contribution
on at least a quarterly basis; no less than one-half of the
annual contribution must be paid by May 30, and the remaining
amount must be fully paid by the end of the County's fiscal
year; except that if the County and the Healthcare Trust Fund
so agree in writing, the County may, through issuance of bonds
or other debt instruments, make advance payment of the annual
contribution required by this subsection, under such terms and
conditions as are agreed to by the parties, provided that the
cost to the County for incurring and servicing that debt does
not exceed, in each year, the exact contribution amount
required in this subsection for that year.
The County may request, and upon a request of the County,
the District shall, in that same year, reimburse the County for
the proportion of the contribution made by the County that
corresponds to the pro-rata share of the trust's prior-year
expenditures that are associated with former District
employees, as confirmed by the annuitant healthcare trust. The
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annual amount so contributed by the County under this
subsection shall be used by the trust strictly and solely to
finance and fund the annuitant healthcare budget for healthcare
benefits and programs for the year in which it is contributed.
(g) The $50,000,000 referred to in subsections (c) and (f)
of this Section shall, on January 1, 2017 and annually
thereafter, be increased by the annual unadjusted percentage
increase (but not less than zero) in the consumer price index-u
for the 12 months ending with the September preceding that
January 1, including all previous adjustments.
For the purposes of this Section, "consumer price index-u"
means the index published by the Bureau of Labor Statistics of
the United States Department of Labor that measures the average
change in prices of goods and services purchased by all urban
consumers, United States city average, all items, 1982-84 =
100.
The new amount resulting from each annual adjustment shall
be determined by the Public Pension Division of the Department
of Insurance and made available to the board of trustees of the
annuitant healthcare trust, the Cook County Board, and the
board of trustees of the Cook County Forest Preserve District
by November 1 of each year.
(h) The funding requirements established in subsections
(e) and (f) shall be enforceable by the board of trustees of
the healthcare trust in the same manner as is provided for the
enforcement of County pension contributions by the retirement
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board under Section 9-169.1 of the Illinois Pension Code.
(i) The board of trustees of the healthcare trust may cause
amounts on deposit in the trust to be invested in such
investments as are permitted investments for the investment of
moneys held under any one or more of the pension or retirement
systems of the State, any unit of local government or school
district, or any agency or instrumentality thereof and may,
through a unanimous vote, transfer the management of
investments to the Illinois State Board of Investment, which is
hereby authorized to manage such investments when so requested
by the board of trustees.
(j) In the administration of the trust, the board of
trustees shall establish and maintain an appropriate funding
reserve level, which may be maintained with the budget
stabilization fund, and which shall not be less than the amount
of incurred and unreported claims plus 6 months' of expected
claims and administrative expenses.
(k) The board of trustees shall make an annual assessment
of the funding levels of the annuitant healthcare trust and
shall submit an estimated balanced budget for the trust's
ensuing fiscal year at least 90 days prior to the end of the
trust's fiscal year and a report to the County Board at least
45 days prior to the end of the trust's fiscal year, which
shall include an adopted balanced budget for the ensuing year.
Section 3-204. Findings. After reviewing the condition of
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the Cook County Employees' Annuity and Benefit Fund (the
"County Fund") for employees and officers of Cook County (the
"County") under Article 9 of the Illinois Pension Code and the
Forest Preserve District Employees' Annuity and Benefit Fund
("District Fund") under Article 10 of the Illinois Pension Code
for employees and officers of the Cook County Forest Preserve
District (the "District") as well as assessing the need for
reform thereof, the General Assembly finds and declares that:
(1) Current actuarial projections, based on the County
Fund's December 31, 2013 Actuarial Valuation Report and the
current finance-and-benefit regime established by the Illinois
Pension Code project that: (a) the County Fund's total assets
in fiscal year 2013 amount to approximately 56.6% of its total
accrued liabilities, yielding an estimated current unfunded
accrued liability of approximately $6,400,000,000; and (b) the
funding ratio for the County Fund will drop from 56.6% in
fiscal year 2013 to approximately 0% by 2038.
(2) Current actuarial projections, based on the District
Fund's December 31, 2013 Actuarial Valuation Report, project
that (a) the District Fund's total assets in fiscal year 2014
amount to approximately 59.5% of its total accrued liabilities,
yielding an estimated current unfunded accrued liability of
approximately $124,300,000; and (b) the funding ratio for the
District Fund will drop from 59.5% in fiscal year 2014 to
approximately 0% by 2038.
(3) When the accrued assets of the County Fund and the
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District Fund (collectively, the "Funds") are completely
spent, the Fund trustees will, in approximately 2038, be
dependent solely on annual contributions received from the
employers and their active employees in making pension payments
to annuitants, resulting in a projected annual funding deficit
in the County Fund of approximately $1,490,000,000 in 2038 and
a projected annual funding deficit in the District Fund of
approximately $25,900,000 in 2038.
(4) Under the current finance-and-benefit regime
established by the Illinois Pension Code, annuitants of the
County Fund and the District Fund are projected to receive, in
2038, only a small fraction of their customary pensions,
projected at approximately 29 cents for every dollar
theretofore received from the County Fund, and 35 cents for
every dollar theretofore received from the District Fund.
(5) The current actuarial projections show that the
cumulative effect of the current statutory finance-and-benefit
regime will cause the unfunded accrued liability of the County
Fund to rise from its current level of approximately
$6,400,000,000 to approximately $31,700,000,000 by 2038 and
$90,000,000,000 by 2053, while the unfunded accrued liability
of the District Fund is projected to rise from its current
level of approximately $124,300,000 to approximately
$614,900,000 by 2038.
(6) As recently as 2001, the County Fund was approximately
90% funded, while the District Fund was 98% funded. However,
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the downward stock market fluctuations in 2001 and 2002, and
the recession that began in 2008, took a significant toll on
the Funds' assets. In addition, recent recessionary periods
have led to employment reductions at the County, further
reducing employee and employer contributions to the County
Fund.
(7) Despite these factors, the County and its employees,
and the District and its employees, have annually performed all
of their statutory funding obligations.
(8) Some of the fundamental causes of the Funds' current
and projected future imbalance include the fact that (a) the
Illinois Pension Code has from time to time been amended to
increase the value of benefits, without a corresponding
revision in mechanisms to finance those benefits; (b) under the
regime, contributions are not based on actuarial assumptions;
(c) the contribution structure does not take into account
underfunding or downward fluctuations in investment
performance; and (d) there is a complete lack of correlation
between the finance and benefit aspects of the regime itself.
(9) Because of the flaws in the current finance-and-benefit
regime, it is mathematically impossible that the Funds will,
under this regime, be in a position to disburse to all eligible
annuitants by a date certain the benefits provided for in that
same regime.
(10) The foregoing financial projections are based on
actuarial assumptions related to mortality, consistent
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increases in payroll, and consistent 7.5% annual rates of
investment return. If such assumptions are subject to
historical negative variances, such variances would hasten the
eventual insolvency of the Funds.
(11) The County's bond ratings have experienced a downgrade
from Moody's Investors Service, and have further been placed on
negative outlook by Moody's and Fitch Ratings, predominately
due to the declining solvency of the County Fund. In addition,
the District's bond ratings have experienced a downgrade from
Moody's Investors Service. As a result, the Funds'
ever-worsening funding problems are making it more expensive
for the County and the District to obtain financing.
(12) Absent legislative action, the Funds will have to
impose substantial reductions in the pension benefits for
85-90% of the County's and the District's current employees and
10-15% of the Funds' current annuitants, based on their current
ages and life expectancies.
(13) Action by the State is the sole means of remedying
these problems facing the Funds, their annuitants and
beneficiaries, the County, and the District.
(14) To correct the flaws associated with the current
finance-and-benefit regime, the provisions of this Article
would: (a) require a County contribution that is the greater of
190% of the contributions made by its active employees, or,
starting with contributions for the year 2020, such amount as
corresponds to an actuarially projected trajectory of 90%
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solvency for the County Fund, in a layered closed-loop
calculation; and (b) require a District contribution that is
the greater of 175% of the contribution made by its active
employees, or, starting with contributions for the year 2020,
such amount as corresponds to an actuarially projected
trajectory of 90% solvency for the District Fund, in a layered
closed-loop calculation.
(15) The provisions of this Article are necessary to serve
the vital public interest of ensuring that the Funds do not
become insolvent and can continue making full pension payments
well into the future.
(16) Through a shared sacrifice approach that entails a mix
of increased employer and employee contributions, revisions to
cost of living adjustments ("COLAs"), revisions to retirement
ages, and the like, those employees and annuitants associated
with the Fund will be the demonstrable recipients of markedly
increased value, in contrast to the illusory value now
available under the current finance-and-benefit regime.
(17) The modifications of this Article are reasonable
alterations of the pension rights of annuitants and
beneficiaries because, among other things: (a) such
modifications will enable annuitants to continue to receive
benefits into the future, which is essential to the theory of a
pension system and its successful operation; and (b) insofar as
any changes to the Funds as a result of this Article result in
disadvantages to annuitants, they are accompanied by new
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advantages, which in addition to financial solvency include
higher cost-of-living adjustments in times of high inflation,
the creation of a separate and distinct health care trust to
provide health care benefits to annuitants funded at a rate of
$50,000,000 annually, adjusted annually for inflation, and,
perhaps most important, the County's and District's assumption
of actuarial responsibility for the funding of the Funds, which
will have a right to enforce the funding obligations.
Furthermore, participants in the Funds will be provided with
upside potential and increases in annual cost of living
adjustments, as well as decreased contributions in the event
that the Funds return to a 100% funded ratio of actuarial
assets to liabilities in the future.
(18) This Article distributes the burden of costs to return
the Funds to solvency commensurate with the current funding
burden between the County and the District on one hand and
their employees on the other, equal to approximately 60% for
the employers and 40% for the employees. As a result, financial
stability for the Funds is preserved without requiring the
County or District employees to shoulder a greater share of the
financial burden for doing so than they are currently
responsible for.
(19) Under this Article, the County Fund is projected to
attain a 100% funding status in 2043, based on independent
actuarial projections, and the District Fund is projected to
attain a 100% funding status in 2042. Absent reforms to
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Articles 9 and 10 of the Illinois Pension Code, current
projections show that the County Fund funding status would be
at -33% in 2043 and the District Fund funding status would be
at -21% in 2042.
(20) Furthermore, this Article creates a secure,
self-adjusting pension system with automatic adjustments from
the County and the District, and their employees, and a
guarantee of minimum actuarially-based funding from the County
and the District.
Section 3-205. The Illinois Pension Code is amended by
changing Sections 1-160, 9-112, 9-119.1, 9-121.6, 9-128.1,
9-133, 9-133.1, 9-134, 9-146.2, 9-169, 9-170, 9-179.2,
9-179.3, 9-184, 9-185, 9-189, 9-195, 9-199, 9-220, 9-239,
10-103, and 10-107 and by adding Sections 9-108.3, 9-110.1,
9-110.2, 9-112.1, 9-117.1, 9-117.2, 9-117.3, 9-118.5, 9-124.1,
9-132.1, 9-133.2, 9-169.1, 9-201.1, and 9-245 as follows:
(40 ILCS 5/1-160)
Sec. 1-160. Provisions applicable to new hires.
(a) The provisions of this Section apply to a person who,
on or after January 1, 2011, first becomes a member or a
participant under any reciprocal retirement system or pension
fund established under this Code, other than a retirement
system or pension fund established under Article 2, 3, 4, 5, 6,
15 or 18 of this Code, notwithstanding any other provision of
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this Code to the contrary, but do not apply to any self-managed
plan established under this Code, to any person with respect to
service as a sheriff's law enforcement employee under Article
7, or to any participant of the retirement plan established
under Section 22-101. Notwithstanding anything to the contrary
in this Section, for purposes of this Section, a person who
participated in a retirement system under Article 15 prior to
January 1, 2011 shall be deemed a person who first became a
member or participant prior to January 1, 2011 under any
retirement system or pension fund subject to this Section. The
changes made to this Section by Public Act 98-596 are a
clarification of existing law and are intended to be
retroactive to the effective date of Public Act 96-889,
notwithstanding the provisions of Section 1-103.1 of this Code.
(a-5) Beginning on the effective date of this amendatory
Act of the 99th General Assembly the provisions of this Section
also apply to former Tier 1 members of the retirement system
established under Article 14 of this Code, who have elected to
become Tier 2 members in accordance with subdivision (a)(2) of
Section 14-160 of this Code, but only with respect to service
performed or established under that system on or after the
effective date of that election as set forth in subdivision
(a-10) of Section 14-160 of this Code and to the benefits or
portions of benefits arising from that service, as specified
for multitier participants under Article 14. For such persons,
references in this Section to a person to whom this Section
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applies, or to a person who first becomes a member or
participant of any retirement system or pension fund to which
this Section applies on or after January 1, 2011, shall be
deemed to refer only to service on or after the effective date
of that election as set forth in subdivision (a-10) of Section
14-160 of this Code.
(b) "Final average salary" means the average monthly (or
annual) salary obtained by dividing the total salary or
earnings calculated under the Article applicable to the member
or participant during the 96 consecutive months (or 8
consecutive years) of service within the last 120 months (or 10
years) of service in which the total salary or earnings
calculated under the applicable Article was the highest by the
number of months (or years) of service in that period. For the
purposes of a person who first becomes a member or participant
of any retirement system or pension fund to which this Section
applies on or after January 1, 2011, in this Code, "final
average salary" shall be substituted for the following:
(1) In Article 7 (except for service as sheriff's law
enforcement employees), "final rate of earnings".
(2) In Articles 8, 9, 10, 11, and 12, "highest average
annual salary for any 4 consecutive years within the last
10 years of service immediately preceding the date of
withdrawal".
(3) In Article 13, "average final salary".
(4) In Article 14, "final average compensation".
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(5) In Article 17, "average salary".
(6) In Section 22-207, "wages or salary received by him
at the date of retirement or discharge".
Beginning January 1, 2016, for Tier 2 employees in service
under Article 9 or 10 of this Code, "final average salary" as
defined in this subsection (b) shall be determined on an annual
basis using the applicable salary cap provided in Section
9-112.
(b-5) Beginning on January 1, 2011, for all purposes under
this Code (including without limitation the calculation of
benefits and employee contributions), the annual earnings,
salary, or wages (based on the plan year) of a member or
participant to whom this Section applies shall not exceed
$106,800; however, that amount shall annually thereafter be
increased by the lesser of (i) 3% of that amount, including all
previous adjustments, or (ii) one-half the annual unadjusted
percentage increase (but not less than zero) in the consumer
price index-u for the 12 months ending with the September
preceding each November 1, including all previous adjustments.
For the purposes of this Section, "consumer price index-u"
means the index published by the Bureau of Labor Statistics of
the United States Department of Labor that measures the average
change in prices of goods and services purchased by all urban
consumers, United States city average, all items, 1982-84 =
100. The new amount resulting from each annual adjustment shall
be determined by the Public Pension Division of the Department
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of Insurance and made available to the boards of the retirement
systems and pension funds by November 1 of each year.
However, the provisions of this subsection (b-5) are
subject to the contrary provisions of subsection (a-5) of
Section 9-112 with respect to service as a Tier 2 employee
under Article 9 or 10 of this Code.
(c) A member or participant is entitled to a retirement
annuity upon written application if he or she has attained age
67 (beginning January 1, 2015, age 65 with respect to service
under Article 8, 11, or 12 of this Code that is subject to this
Section) and has at least 10 years of service credit and is
otherwise eligible under the requirements of the applicable
Article.
A member or participant who has attained age 62 (beginning
January 1, 2015, age 60 with respect to service under Article
8, 11, or 12 of this Code that is subject to this Section) and
has at least 10 years of service credit and is otherwise
eligible under the requirements of the applicable Article may
elect to receive the lower retirement annuity provided in
subsection (d) of this Section.
(d) The retirement annuity of a member or participant who
is retiring after attaining age 62 (beginning January 1, 2015,
age 60 with respect to service under Article 8, 11, or 12 of
this Code that is subject to this Section) with at least 10
years of service credit shall be reduced by one-half of 1% for
each full month that the member's age is under age 67
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(beginning January 1, 2015, age 65 with respect to service
under Article 8, 11, or 12 of this Code that is subject to this
Section).
(d-5) The provisions of subsections (c) and (d) are subject
to the contrary provisions of subsection (e) of Section 9-124.1
and Section 9-133.2 with respect to Tier 2 employees and Tier 2
annuitants with service under Article 9 or 10 of this Code.
(e) Any retirement annuity or supplemental annuity shall be
subject to annual increases on the January 1 occurring either
on or after the attainment of age 67 (beginning January 1,
2015, age 65 with respect to service under Article 8, 11, or 12
of this Code that is subject to this Section) or the first
anniversary (the second anniversary with respect to service
under Article 8 or 11) of the annuity start date, whichever is
later. Each annual increase shall be calculated at 3% or
one-half the annual unadjusted percentage increase (but not
less than zero) in the consumer price index-u for the 12 months
ending with the September preceding each November 1, whichever
is less, of the originally granted retirement annuity. If the
annual unadjusted percentage change in the consumer price
index-u for the 12 months ending with the September preceding
each November 1 is zero or there is a decrease, then the
annuity shall not be increased.
Notwithstanding any provision of this Section to the
contrary, with respect to service under Article 8 or 11 of this
Code that is subject to this Section, no annual increase under
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this subsection shall be paid or accrue to any person in year
2025. In all other years, the Fund shall continue to pay annual
increases as provided in this Section.
However, the provisions of this subsection (e) are subject
to the contrary provisions of Section 9-132.1 with respect to
Tier 2 annuitants receiving an annuity under Article 9 or 10 of
this Code.
Notwithstanding Section 1-103.1 of this Code, the changes
in this amendatory Act of the 98th General Assembly are
applicable without regard to whether the employee was in active
service on or after the effective date of this amendatory Act
of the 98th General Assembly.
(f) The initial survivor's or widow's annuity of an
otherwise eligible survivor or widow of a retired member or
participant who first became a member or participant on or
after January 1, 2011 shall be in the amount of 66 2/3% of the
retired member's or participant's retirement annuity at the
date of death. In the case of the death of a member or
participant who has not retired and who first became a member
or participant on or after January 1, 2011, eligibility for a
survivor's or widow's annuity shall be determined by the
applicable Article of this Code. The initial benefit shall be
66 2/3% of the earned annuity without a reduction due to age. A
child's annuity of an otherwise eligible child shall be in the
amount prescribed under each Article if applicable. Any
survivor's or widow's annuity shall be increased (1) on each
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January 1 occurring on or after the commencement of the annuity
if the deceased member died while receiving a retirement
annuity or (2) in other cases, on each January 1 occurring
after the first anniversary of the commencement of the annuity.
Each annual increase shall be calculated at 3% or one-half the
annual unadjusted percentage increase (but not less than zero)
in the consumer price index-u for the 12 months ending with the
September preceding each November 1, whichever is less, of the
originally granted survivor's annuity. If the annual
unadjusted percentage change in the consumer price index-u for
the 12 months ending with the September preceding each November
1 is zero or there is a decrease, then the annuity shall not be
increased.
However, the provisions of this subsection (f) are subject
to the contrary provisions of Section 9-132.1 with respect to
Tier 2 annuitants receiving an annuity under Article 9 or 10 of
this Code.
(g) The benefits in Section 14-110 apply only if the person
is a State policeman, a fire fighter in the fire protection
service of a department, or a security employee of the
Department of Corrections or the Department of Juvenile
Justice, as those terms are defined in subsection (b) of
Section 14-110. A person who meets the requirements of this
Section is entitled to an annuity calculated under the
provisions of Section 14-110, in lieu of the regular or minimum
retirement annuity, only if the person has withdrawn from
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service with not less than 20 years of eligible creditable
service and has attained age 60, regardless of whether the
attainment of age 60 occurs while the person is still in
service.
(h) If a person who first becomes a member or a participant
of a retirement system or pension fund subject to this Section
on or after January 1, 2011 is receiving a retirement annuity
or retirement pension under that system or fund and becomes a
member or participant under any other system or fund created by
this Code and is employed on a full-time basis, except for
those members or participants exempted from the provisions of
this Section under subsection (a) of this Section, then the
person's retirement annuity or retirement pension under that
system or fund (or the Tier 2 portion of that annuity in the
case of a person subject to subsection (a-5) of this Section)
shall be suspended during that employment. Upon termination of
that employment, the person's retirement annuity or retirement
pension payments shall resume and be recalculated if
recalculation is provided for under the applicable Article of
this Code.
If a person who first becomes a member of a retirement
system or pension fund subject to this Section on or after
January 1, 2012 and is receiving a retirement annuity or
retirement pension under that system or fund and accepts on a
contractual basis a position to provide services to a
governmental entity from which he or she has retired, then that
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person's annuity or retirement pension earned as an active
employee of the employer (or the Tier 2 portion of that annuity
in the case of a person subject to subsection (a-5) of this
Section) shall be suspended during that contractual service. A
person receiving an annuity or retirement pension under this
Code shall notify the pension fund or retirement system from
which he or she is receiving an annuity or retirement pension,
as well as his or her contractual employer, of his or her
retirement status before accepting contractual employment. A
person who fails to submit such notification shall be guilty of
a Class A misdemeanor and required to pay a fine of $1,000.
Upon termination of that contractual employment, the person's
retirement annuity or retirement pension payments shall resume
and, if appropriate, be recalculated under the applicable
provisions of this Code.
(i) (Blank).
(j) In the case of a conflict between the provisions of
this Section and any other provision of this Code (other than
provisions relating to multitier participants and their
benefits), the provisions of this Section shall control, except
as otherwise explicitly provided in this Section.
(Source: P.A. 97-609, eff. 1-1-12; 98-92, eff. 7-16-13; 98-596,
eff. 11-19-13; 98-622, eff. 6-1-14; 98-641, eff. 6-9-14.)
(40 ILCS 5/9-108.3 new)
Sec. 9-108.3. Security officer.
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(a) "Security officer": An employee who, as identified by
the employer for the relevant time period:
(1) has been deputized by the county sheriff, or has
been certified as a law enforcement officer by a training
academy accredited by the Illinois Law Enforcement
Training Standards Board, or a similar entity; has
satisfactorily completed at least 400 hours of law
enforcement training by such a training academy; and serves
in a capacity that utilizes such training;
(2) provides safety and security services associated
with correctional or court facilities and has been
certified by a training academy accredited by the Illinois
Law Enforcement Training Standards Board, or a similar
entity, as having satisfactorily completed at least 400
hours of training regarding law enforcement or jail or
court safety and security; or
(3) provides security and safety services at a juvenile
temporary detention facility operated by the County and who
has received no less than 6 weeks of training, under
standards promulgated by the National Juvenile Detention
Association or a similar entity, regarding juvenile
justice or youth detention safety and security.
(b) Except as provided in subsection (d), an employee
determined by the employer to have been a security officer as
defined in subsection (a) of this Section prior to the
effective date of this Section shall be deemed a security
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officer dating from the employee's first day of such employment
with the employer.
(c) An employee who, on or after January 1, 2016, begins
employment as a deputy sheriff as defined in subsection (f) of
Section 9-128.1 shall be deemed a security officer for the
purposes of this Article, provided the employee meets the
requirements of subsection (a) of this Section.
(d) An employee who is determined by the employer to have
been a deputy sheriff as defined in subsection (f) or (j) of
Section 9-128.1 prior to the effective date of this Section,
may elect to become a security officer for the purposes of this
Article, dating from the employee's first day of such
employment with the employer, and thereby relinquish any right
to receive an annuity computed under Section 9-128.1. An
employee so electing shall thereafter contribute to the Fund at
the rate provided for security officers and shall not be
eligible to receive an annuity computed under Section 9-128.1.
(e) Notwithstanding any other provision of this Section, an
employee who, on or before June 30, 2015, began employment as a
deputy sheriff as defined in subsection (f) or (j) of Section
9-128.1 and who does not make an election to become a security
officer under subsection (d) of this Section shall not be
deemed to be a security officer for the purposes of this
Article with respect to any service rendered as a deputy
sheriff as defined in subsection (f) or (j) of Section 9-128.1.
Such an employee shall continue to contribute to the Fund at
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the rate prescribed for such deputy sheriffs for as long as he
or she is so employed, and may elect to receive an annuity
computed as provided in Section 9-128.1 upon meeting the
eligibility requirements under that Section.
(40 ILCS 5/9-110.1 new)
Sec. 9-110.1. Tier 1 employee; Tier 1 annuitant.
"Tier 1 employee": An employee, contributor, or
participant under this Article who first became a participant
or member before January 1, 2011 under any reciprocal
retirement system or pension fund established under this Code,
other than one established under Article 2, 3, 4, 5, 6, or 18
of this Code.
"Tier 1 annuitant": An annuitant who is a former Tier 1
employee under this Article or whose annuity derives from the
service of a former Tier 1 employee under this Article.
(40 ILCS 5/9-110.2 new)
Sec. 9-110.2. Tier 2 employee; Tier 2 annuitant.
"Tier 2 employee": An employee, contributor, or
participant under this Article who is not a Tier 1 employee.
"Tier 2 annuitant": An annuitant who is a former Tier 2
employee under this Article or whose annuity derives from the
service of a former Tier 2 employee under this Article.
(40 ILCS 5/9-112) (from Ch. 108 1/2, par. 9-112)
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Sec. 9-112. Salary. "Salary": Annual salary of an employee
under this Article as follows:
(a) Beginning on the effective date and prior to July 1,
1947 $3000 shall be the maximum amount of annual salary of any
employee to be considered for the purposes of this Article; and
beginning on July 1, 1947 and prior to July 1, 1953, said
maximum amount shall be $4800; and beginning on July 1, 1953
and prior to July 1, 1957 said maximum amount shall be $6,000;
and from beginning on July 1, 1957 through June 30, 2015,
salary shall be based upon the actual sum paid and reported to
the Fund, exclusive of overtime and extra service.
(a-5) Beginning January 1, 2016, the maximum amount of
annual salary of any employee of the County to be considered
for the purposes of this Article shall be the greater of:
(1) for Tier 1 and Tier 2 employees, the annual
contribution and benefit base established for the
applicable year by the Commissioner of Social Security
under the United States Social Security Act; or
(2) for Tier 1 employees only, the participant's annual
salary or annualized wage calculated under this Article as
of December 31, 2015, based upon the rate reported to the
Fund and adjusted to reflect the actual hours paid during
the year ending on that date; provided, however, that such
amount shall annually thereafter be increased as provided
in subsection (a-10).
However, in no event shall the annual salary for the
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purposes of this Article exceed any limitation imposed on
earnings under Section 1-117 of this Code.
Under no circumstances shall the maximum amount of annual
salary be greater than the amount set forth in this subsection
as a result of reciprocal service or any provision regarding
reciprocal service, nor shall the Fund be required to pay any
refund as a result of the application of this maximum annual
salary cap.
(a-10) Subject to the other restrictions of subsection
(a-5), the amount of maximum salary specified in item (2) of
subsection (a-5) shall be increased on January 1, 2016 and
annually thereafter by the lesser of (i) 3% of that amount,
including all previous adjustments, or (ii) one-half the annual
unadjusted percentage increase (but not less than zero) in the
consumer price index-u for the 12 months ending with the
September preceding that January 1, including all previous
adjustments.
For the purposes of this Section, "consumer price index-u"
means the index published by the Bureau of Labor Statistics of
the United States Department of Labor that measures the average
change in prices of goods and services purchased by all urban
consumers, United States city average, all items, 1982-84 =
100.
The percentage increase resulting from each annual
adjustment shall be determined by the Public Pension Division
of the Department of Insurance and made available to the
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retirement board of this Fund and the Article 10 Fund by
November 1 of each year.
(b) (Blank).
(c) Where the county provides lodging, board and laundry
service for an employee without charge and so reports to the
Fund while the employee is receiving such lodging, board and
laundry service, his salary shall be considered to be $480 a
year more for the period from the effective date to August 1,
1959 and thereafter $960 more than the amount payable as salary
for the year, and the salary of an employee for whom one or
more daily meals are provided by the county without charge
therefor and are reported by the county to the Fund while the
employee is receiving such meals shall be considered to be $120
a year more for each such daily meal for the period from the
effective date to August 1, 1959 and thereafter $240 more for
each such daily meal than the amount payable as his salary for
the year.
(d) For the purposes of ordinary disability, salary shall
be based upon the rate reported to the Fund at the date of
disability and adjusted to reflect the actual hours paid during
the prior year.
(Source: P.A. 98-551, eff. 8-27-13.)
(40 ILCS 5/9-112.1 new)
Sec. 9-112.1. Average annual salary.
(a) For Tier 1 employees who withdraw from employment by
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the County before January 1, 2016, "average annual salary"
means the total salary, as calculated in accordance with this
Article, for the 48 consecutive months out of the last 120
months of service for which that total is highest, divided by
48 and then multiplied by 12.
(b) For Tier 1 employees who withdraw from employment by
the County in the year 2016 or thereafter, "average annual
salary" means the total salary, as calculated in accordance
with this Article, for the x consecutive months out of the last
120 months of service for which that total is highest, divided
by x and then multiplied by 12. For purposes of this
calculation, "x" is a number determined by the month of
withdrawal from employment by the County, equal to 48 for
withdrawal before January 2016, equal to 49 for withdrawal in
January 2016, increasing by one for each month thereafter
through December 2019, and equal to 96 for withdrawal in
December 2019 or any month thereafter.
(c) For Tier 2 employees who withdraw from employment by
the County in the year 2015 or in any year thereafter, "average
annual salary" shall mean "final average salary" as defined in
subsection (b) of Section 1-160, determined on an annual basis,
but under the applicable salary cap provided in Section 9-112.
(40 ILCS 5/9-117.1 new)
Sec. 9-117.1. Funded ratio. "Funded ratio": The ratio of
the actuarial value of the Fund's assets to the actuarial value
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of the Fund's liabilities, based on a formula that utilizes the
technique of asset smoothing to amortize any gains or losses of
investment returns relative to actuarially assumed rates of
return over a multi-year period of 5 years, and a discount rate
for liabilities that reflects the actuarial assumption for
return on assets.
(40 ILCS 5/9-117.2 new)
Sec. 9-117.2. Annual Actuarial Report. "Annual Actuarial
Report": An annual actuarial report of the Fund, produced by an
actuary who is a member in good standing of the American
Academy of Actuaries and is retained and approved by the
retirement board. The Annual Actuarial Report shall include,
but not be limited to: (1) a statement of the actuarial value
of the Fund's assets as projected over 30 years' time and the
actuarial value of the Fund's liabilities as projected over the
same period of time; and (2) the Minimum Required Employer
Contribution for the second year immediately following the year
ending on the valuation date upon which the Annual Actuarial
Report is based.
The Annual Actuarial Report may be prepared as part of the
annual audit required under Section 9-195. The Annual Actuarial
Report shall be reviewed and formally adopted by the retirement
board and shall be included in the annual report that is
required to be submitted to the County in July of each year
under Section 9-199.
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(40 ILCS 5/9-117.3 new)
Sec. 9-117.3. Minimum Required Employer Contribution.
"Minimum Required Employer Contribution" for a specified year
means the amount, as set forth in an Annual Actuarial Report,
that shall be determined based on a formula that is the sum of
(i) the total normal cost for the valuation year, and (ii) a
"90% Amortization Payment" as described in the following
paragraph, less (iii) the projected member contributions for
the second year immediately following the year ending on the
valuation date upon which the Annual Actuarial Report is based.
Items (i) and (ii) of this paragraph shall be computed as of
the actuarial valuation date of said annual actuarial report.
The initial 90% Amortization Payment for the year 2020 will
make use of a 30-year amortization schedule in a calculation as
contained in the annual actuarial report as of December 31,
2018; the 90% Amortization Payment will be based on a 30-year
level percent of pay amortization of the difference between (i)
90% of the actuarial accrued liability and (ii) the actuarial
value of assets, both computed as of the actuarial valuation
date. The above referenced difference between 90% of the
actuarial accrued liability and the actuarial value of assets
shall be referred to as the initial 90% Amortization Amount. An
amortization schedule of this initial 90% Amortization Amount
shall be established and maintained by the Fund as developed by
an independent actuary. With each subsequent valuation, the
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actuary will establish a new 90% amortization amount for the
second year immediately following the year ending on the
valuation date upon which the Annual Actuarial Report is based,
which shall be based on a 30-year level percent of pay
amortization of (i) the difference between 90% of the actuarial
accrued liability as of the valuation date and the actuarial
value of assets as of the valuation date; (ii) the outstanding
balance of the amortization schedule developed in the previous
annual actuarial report updated as of the new valuation date.
The 90% Amortization Payment as of the valuation date will be
the sum of all amortization payments contained in a 30-year
layered amortization schedule as of said valuation date.
For purposes of determining the Minimum Required Employer
Contribution, the calculation will make use of (i) a discount
rate for liabilities that reflects the actuarial assumption for
return on assets; (ii) an actuarial smoothing methodology to
amortize any investment gains or losses relative to actuarial
assumed rates of return over a period of 5 years; and (iii) an
entry age normal calculation method for employee benefits. The
aforementioned assumptions and methods may be amended as
recommended by an independent actuary engaged by the Fund, and
in compliance with actuarial standards of practice and as
adopted by no less than 8 votes in the affirmative by the
trustees of the Fund.
(40 ILCS 5/9-118.5 new)
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Sec. 9-118.5. Annuitant. "Annuitant": A person receiving
an age and service annuity, a prior service annuity, a widow's
annuity, a widow's prior service annuity, a minimum annuity, or
a child's annuity under this Article.
(40 ILCS 5/9-119.1)
Sec. 9-119.1. Earned annuity. "Earned annuity": (1) The
annuity a participant has accrued as provided in Section
9-133.2 or 9-134, disregarding minimum age and service
eligibility requirements and without any reduction due to age,
or (2) the age and service annuity as provided in Sections
9-125 through 9-128, inclusive.
(Source: P.A. 98-551, eff. 8-27-13.)
(40 ILCS 5/9-121.6) (from Ch. 108 1/2, par. 9-121.6)
Sec. 9-121.6. Alternative annuity for county officers.
(a) Prior to January 1, 2016, any Any county officer
elected by vote of the people may elect to establish
alternative credits for an alternative annuity by electing in
writing to make additional optional contributions in
accordance with this Section and procedures established by the
board. Such elected county officer may discontinue making the
additional optional contributions by notifying the Fund in
writing in accordance with this Section and procedures
established by the board.
Additional optional contributions for the alternative
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annuity shall be as follows:
(1) For service after the option is elected, an
additional contribution of 3% of salary shall be
contributed to the Fund on the same basis and under the
same conditions as contributions required under Sections
9-170 and 9-176.
(2) For service before the option is elected, an
additional contribution of 3% of the salary for the
applicable period of service, plus interest at the
effective rate from the date of service to the date of
payment. All payments for past service must be paid in full
before credit is given. No additional optional
contributions may be made for any period of service for
which credit has been previously forfeited by acceptance of
a refund, unless the refund is repaid in full with interest
at the effective rate from the date of refund to the date
of repayment.
(b) In lieu of the retirement annuity otherwise payable
under this Article, any county officer elected by vote of the
people who (1) has elected to participate in the Fund and has,
prior to January 1, 2016, made make additional optional
contributions in accordance with this Section, and (2) has
attained the minimum age specified below age 60 with at least
10 years of service credit as an elected county officer, or has
attained age 65 with at least 8 years of service credit as an
elected county officer, may elect to have his retirement
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annuity computed as follows:
For service as an elected official prior to January 1,
2016, 3% of the participant's average annual salary at the time
of termination of service for each of the first 8 years of
service credit, plus 4% of such average annual salary for each
of the next 4 years of service credit, plus 5% of such average
annual salary for each year of service credit in excess of 12
years, subject to a maximum of 80% of such average annual
salary.
For service as an elected county officer on or after
January 1, 2016, 2.9% of the participant's average annual
salary at the time of termination of service for each of the
first 8 years of service credit, plus 3.9% of such average
annual salary for each of the next 4 years of service credit,
plus 4.9% of such average annual salary for each year of
service credit in excess of 12 years, subject to a maximum of
80% of such average annual salary; except that beginning with
service in 2020, in the second year immediately following any
year for which the Annual Actuarial Report of the Fund
determines that the Fund's actuarial assets are less than 59%
of the Fund's actuarial liabilities, the percentage of average
annual salary to be used for service credit from that second
immediately following year shall be reduced by 0.10% of average
annual salary from the percentage otherwise specified in this
Section.
Beginning January 1, 2016, an elected county officer with
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- 65 - LRB099 13050 RPS 36929 b
at least 10 years of service credit as an elected county
officer is not eligible to begin receiving an annuity under
this subsection (b) until he or she has attained the following
specified minimum age: age 60 if the annuity begins in 2015;
age 61 if the annuity begins in 2016 or 2017; age 62 if the
annuity begins in 2018 or 2019; age 63 if the annuity begins in
2020 or 2021; age 64 if the annuity begins in 2022 or 2023; or
age 65 if the annuity begins in 2024 or thereafter.
An elected county officer who does not elect to receive an
annuity under this Section may elect to receive a refund of the
difference between the contributions made under this Section
and the contributions that would have been made for such
service if it were not as an elected county officer, including
interest at the rate established in Section 9-151.
To the extent an such elected county officer has made
additional optional contributions with respect to only a
portion of his years of service credit, his retirement annuity
will first be determined in accordance with this Section to the
extent such additional optional contributions were made, and
then in accordance with the remaining Sections of this Article
to the extent of years of service credit with respect to which
additional optional contributions were not made.
(c) In lieu of the disability benefits otherwise payable
under this Article, any county officer elected by vote of the
people who (1) has elected to participate in the Fund, and (2)
has become permanently disabled and as a consequence is unable
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- 66 - LRB099 13050 RPS 36929 b
to perform the duties of his office, and (3) was making
optional contributions in accordance with this Section at the
time the disability was incurred, may elect to receive a
disability annuity calculated in accordance with the formula in
subsection (b). For the purposes of this subsection, such
elected county officer shall be considered permanently
disabled only if: (i) disability occurs while in service as an
elected county officer and is of such a nature as to prevent
him from reasonably performing the duties of his office at the
time; and (ii) the board has received a written certification
by at least 2 licensed physicians appointed by it stating that
such officer is disabled and that the disability is likely to
be permanent.
(d) Refunds of additional optional contributions shall be
made on the same basis and under the same conditions as
provided under Section 9-164, 9-166 and 9-167. Interest shall
be credited at the effective rate on the same basis and under
the same conditions as for other contributions. Optional
contributions under this Section shall be included in the
amount of employee contributions used to compute the tax levy
under Section 9-169.
(e) The effective date of this plan of optional alternative
benefits and contributions shall be January 1, 1988, or the
date upon which approval is received from the U.S. Internal
Revenue Service, whichever is later. The plan of optional
alternative benefits and contributions shall not be available
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- 67 - LRB099 13050 RPS 36929 b
to any former county officer or employee receiving an annuity
from the Fund on the effective date of the plan, unless he
re-enters service as an elected county officer and renders at
least 3 years of additional service after the date of re-entry.
(f) Any elected county officer who was entitled to receive
a stipend from the State on or after July 1, 2009 and on or
before June 30, 2010 may establish earnings credit for the
amount of stipend not received, if the elected county official
applies in writing to the fund within 6 months after the
effective date of this amendatory Act of the 96th General
Assembly and pays to the fund an amount equal to (i) employee
contributions on the amount of stipend not received, (ii)
employer contributions determined by the Board equal to the
employer's normal cost of the benefit on the amount of stipend
not received, plus (iii) interest on items (i) and (ii) at the
actuarially assumed rate.
(g) The plan of optional alternative benefits and
contributions authorized under this Section applies only to
county officers elected by vote of the people on or before
January 1, 2008 (the effective date of Public Act 95-654).
(h) For the purposes of Section 1-103.1, the changes made
to this Section by this amendatory Act of the 99th General
Assembly are not limited to persons in service on or after the
effective date of this amendatory Act.
(Source: P.A. 95-369, eff. 8-23-07; 95-654, eff. 1-1-08;
95-876, eff. 8-21-08; 96-961, eff. 7-2-10.)
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(40 ILCS 5/9-124.1 new)
Sec. 9-124.1. Minimum age requirements for certain
annuities granted on or after January 1, 2016.
(a) Beginning January 1, 2016, eligibility to begin
receiving an age and service annuity calculated under Section
9-125, 9-126, 9-127, or 9-128 of this Article and the method of
calculating that annuity shall be subject to the requirements
of this Section.
(b) Beginning January 1, 2016, a Tier 1 employee who has
less than 30 years of service shall not be entitled to begin
receiving an age and service annuity under Section 9-125,
9-126, 9-127, or 9-128 unless he or she has attained the
following specified minimum age: age 60 if the annuity begins
in 2015; age 61 if the annuity begins in 2016 or 2017; age 62 if
the annuity begins in 2018 or 2019; age 63 if the annuity
begins in 2020 or 2021; age 64 if the annuity begins in 2022 or
2023; or age 65 if the annuity begins in 2024 or thereafter.
This minimum age requirement is in addition to any age
requirement provided under the specified Sections of this
Article.
(c) Beginning January 1, 2016, a Tier 1 employee who has at
least 30 years of service shall not be entitled to begin
receiving an age and service annuity under Section 9-125,
9-126, 9-127, or 9-128 unless he or she has attained the
following specified minimum age: age 50 if the annuity begins
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in 2015; age 51 if the annuity begins in 2016 or 2017; age 52 if
the annuity begins in 2018 or 2019; age 53 if the annuity
begins in 2020 or 2021; age 54 if the annuity begins in 2022 or
2023; or age 55 if the annuity begins in 2024 or thereafter.
This minimum age requirement is in addition to any age
requirement provided under the specified Sections of this
Article.
(d) Beginning July 1, 2015, a Tier 1 employee who has at
least 30 years of service, with at least the final 10 years of
service as a county security officer, shall not be entitled to
begin receiving an age and service annuity under Section 9-125,
9-126, 9-127, or 9-128 unless he or she has attained age 50.
This minimum age requirement is in addition to any age
requirement provided under the specified Sections of this
Article.
(e) Beginning July 1, 2015, a Tier 1 or Tier 2 county
security officer who has at least 10 years of service as a
county security officer but does not qualify under subsection
(d) shall not be entitled to begin receiving an age and service
annuity under Section 9-125, 9-126, 9-127, or 9-128 unless he
or she has attained the following specified minimum age: age 60
if the annuity begins in 2015; age 61 if the annuity begins in
2016 or 2017; or age 62 if the annuity begins in 2018 or
thereafter. This minimum age requirement is in addition to any
age requirement provided under the specified Sections of this
Article.
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(f) For the purposes of Section 1-103.1, the application of
this Section is not limited to persons in service on or after
the effective date of this amendatory Act of the 99th General
Assembly.
(40 ILCS 5/9-128.1) (from Ch. 108 1/2, par. 9-128.1)
Sec. 9-128.1. Annuities for members of the County Police
Department.
(a) In lieu of the regular or minimum annuity or annuities,
for any deputy sheriff who is a member of a County Police
Department and was recognized as such a member as of December
31, 2015, and who has been paying into the Fund at the rate
prescribed for members of the County Police Department, he may,
upon withdrawal from service after not less than 20 years of
service in the position of deputy sheriff as defined below,
upon or after attainment of age 55, receive a total annuity
equal to 2% for each year of service based upon his highest
average annual salary for any 4 consecutive years within the
last 10 years of service immediately preceding the date of
withdrawal from service, subject to a maximum annuity equal to
75% of such average annual salary.
(b) Any deputy sheriff who withdraws from the service after
July 1, 1979 and was recognized as a deputy sheriff as of
December 31, 2015, and who has been paying into the Fund at the
rate prescribed for members of the County Police Department,
after having attained age 53 in the service with 23 or more
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years of service credit in the position of deputy sheriff as
determined by the County, shall be entitled to an annuity
computed as follows if such annuity is greater than that
provided in the foregoing paragraphs of this Section 9-128.1:
An annuity equal to 50% of his the average annual salary for
the 4 highest consecutive years of the last 10 years of service
plus additional annuity equal to 2% of such average annual
salary for each completed year of service or fraction thereof
rendered after his attainment of age 53 and the completion of
23 years of service, plus an additional annuity equal to 1% of
such average annual salary for each completed year of service
or fraction thereof in excess of 23 years up to age 53.
(c) Any deputy sheriff who withdraws from the service after
December 31, 1987 and was recognized as a deputy sheriff as of
December 31, 2015, and who has been paying into the Fund at the
rate prescribed for members of the County Police Department,
with 20 or more years of service credit as determined by the
County, shall be entitled, upon attainment of age 50, to an
annuity computed as follows if such annuity is greater than
that provided in the foregoing paragraphs of this Section
9-128.1: An annuity equal to 50% of his the average annual
salary for the 4 highest consecutive years of the last 10 years
of service, plus additional annuity equal to 2% of such average
salary for each completed year of service or fraction thereof
in excess of 20 years computed at the following rates:.
(i) for years of service beginning before January 1,
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2016, 2.0% of average annual salary;
(ii) for years of service beginning on or after January
1, 2016, 1.8% of average annual salary unless item (iii)
applies;
(iii) for years of service to which this item (iii)
applies, 1.7% of average annual salary. This item (iii)
applies only to years of service in 2020 or thereafter, and
only if the Annual Actuarial Report of the Fund for the
second immediately preceding year determined that the
Fund's actuarial assets were less than 59% of the Fund's
actuarial liabilities.
(d) (Blank). A deputy sheriff who reaches compulsory
retirement age and who has less than 23 years of service shall
be entitled to a minimum annuity equal to an amount determined
by the product of (1) his years of service and (2) 2% of his
average salary for the 4 consecutive highest years of salary
within the last 10 years of service immediately prior to his
reaching compulsory retirement age.
(e) Any deputy sheriff who retires after January 1, 1984
and elects to receive an annuity under this Section, and who
has credits under this Article for service not as a deputy
sheriff, shall be entitled to receive, in addition to the
amount of annuity otherwise provided under this Section, an
additional amount of annuity provided from the totals
accumulated to his credit for prior service and age and service
annuities for such service not as a deputy sheriff.
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(f) The term "deputy sheriff" means an employee charged
with the duty of law enforcement as a deputy sheriff as
specified in Section 1 of "An Act in relation to County Police
Departments in certain Counties, creating a County Police
Department Merit Board and defining its powers and duties",
approved August 5, 1963, who rendered service in such position
before and after such date.
The terms "deputy sheriff" and "member of a County Police
Department" shall also include an elected sheriff of the county
who has elected to become a contributor and who has submitted
to the board his written election to be included within the
provisions of this Section. With respect to any such sheriff,
service as the elected sheriff of the county shall be deemed to
be service in the position of deputy sheriff for the purposes
of this Section provided that the employee contributions
therefor are made at the rate prescribed for members of the
County Police Department. A sheriff electing to be included
under this Section may also elect to have his service as
sheriff of the county before the date of such election included
as service as a deputy sheriff for the purposes of this
Section, by making an additional contribution for each year of
such service, equal to the difference between the amount he
would have contributed to the Fund during such year had he been
contributing at the rate then in effect for members of the
County Police Department and the amount actually contributed,
plus interest thereon at the rate of 6% per annum from the end
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of such year to the date of payment.
(g) In no case shall an annual annuity provided in this
Section 9-128.1 exceed 80% of the average annual salary for any
4 consecutive years within the last 10 years of service
immediately preceding the date of withdrawal from service.
A deputy sheriff may in addition, be entitled to the
benefits provided by Section 9-133 or 9-133.1 if he so
qualifies under such Sections.
(h) A deputy sheriff may elect, between January 1 and
January 15, 1983, to transfer his creditable service as a
member of the State Employees' Retirement System of Illinois to
any Fund established under this Article of which he is a
member, and such transferred creditable service shall be
included as service for the purpose of calculating his benefits
under this Article to the extent that the payment specified in
Section 14-105.3 has been received by such Fund.
(i) An active deputy sheriff who has at least 15 years of
service credit in that capacity may elect to have any or all of
his credits under this Article for service not as a deputy
sheriff deemed to be credits for service as a deputy sheriff,
by filing a written election with the Board, accompanied by
payment of an amount to be determined by the Board, equal to
(1) the difference between the amount of employee contributions
actually contributed by the applicant for such service not as a
deputy sheriff, and the amounts that would have been
contributed had such contributions been made at the rates
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applicable to service as a deputy sheriff, plus (2) interest
thereon at the rate of 3% per annum, compounded annually, from
the date of service to the date of payment.
(j) Beginning on the effective date of this amendatory Act
of 1996, the terms "deputy sheriff" and "member of a County
Police Department" shall also include any chief of the County
Police Department or undersheriff of the County Sheriff's
Department who has submitted to the board his or her written
election to be included within the provisions of this Section.
With respect to any such police chief or undersheriff, service
as a chief of the County Police Department or an undersheriff
of the County Sheriff's Department shall be deemed to be
service in the position of deputy sheriff for the purposes of
this Section, provided that the employee contributions
therefor are made at the rate prescribed for members of the
County Police Department.
A chief of the County Police Department or undersheriff of
the County Sheriff's Department electing to be included under
this Section may also elect to have his or her service as chief
of the County Police Department or undersheriff of the County
Sheriff's Department before the date of the election included
as service as a deputy sheriff for the purposes of this
Section, by making an additional contribution for each year of
such service, equal to the difference between the amount that
he or she would have contributed to the Fund during that year
at the rate then in effect for members of the County Police
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Department and the amount actually contributed, plus interest
thereon at the rate of 6% per year, compounded annually, from
the end of that year to the date of payment.
A chief of the County Police Department or undersheriff of
the County Sheriff's Department who has elected to be included
within the provisions of this Section may transfer to this Fund
credits and creditable service accumulated under any pension
fund or retirement system established under Article 3, 7, 8,
14, or 15, upon payment to the Fund of (1) the amount by which
the employee contributions that would have been required if he
or she had participated in this Fund during the period for
which credit is being transferred, plus interest, plus an equal
amount for employer contributions, exceeds the amounts
actually transferred from that other fund or system to this
Fund, plus (2) interest thereon at 6% per year, compounded
annually, from the date of transfer to the date of payment.
A chief of the County Police Department or undersheriff of
the County Sheriff's Department may purchase credits and
creditable service for up to 2 years of public employment
rendered to an out-of-state public agency. Payment for that
service shall be at the applicable rates in effect for employee
and employer contributions during the period for which credit
is being purchased, plus interest at the rate of 6% per year,
compounded annually, from the date of service until the date of
payment.
(k) For the purposes of Section 1-103.1, the changes made
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to this Section by this amendatory Act of the 99th General
Assembly are not limited to persons in service on or after the
effective date of this amendatory Act.
(Source: P.A. 89-643, eff. 8-9-96.)
(40 ILCS 5/9-132.1 new)
Sec. 9-132.1. Hedge against inflation; adjusted annual
increase in annuity.
(a) In the event of a conflict, the provisions of this
Section are intended to control over any contrary provision of
this Article or of Section 1-160 of this Code; in addition,
subsection (f) of this Section is intended to control over
subsections (c), (d), and (e).
(b) As used in this Section:
"Consumer price index-u" means the index published by the
Bureau of Labor Statistics of the United States Department of
Labor that measures the average change in prices of goods and
services purchased by all urban consumers, United States city
average, all items, 1982-84 = 100. The new amount resulting
from each annual adjustment shall be determined by the Public
Pension Division of the Department of Insurance and made
available to the retirement board by November 1 of each year.
"Compound calculation" means that the increase is
calculated as a percentage of the annuity payable at the time
of the increase, including all previous increases in that
annuity.
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"Simple calculation" means that the increase is calculated
as a percentage of the amount of annuity originally granted,
excluding any previous increases in that annuity.
(c) For a Tier 1 annuitant who began receiving an annuity
under this Article on or before December 31, 2015 (or after
that date if the annuity derives from the death of a Tier 1
annuitant who began receiving an annuity on or before that
date), the rate of annual increase in that annuity shall remain
at 3% in a compound calculation, except as follows:
(1) In 2016, no such annuitant shall receive an annual
increase.
(2) Beginning with the annual increase in 2020, in the
second year immediately following any year for which the
Annual Actuarial Report of the Fund determines that the
Fund's actuarial assets are less than 59% of the Fund's
actuarial liabilities, the rate of annual increase in that
annuity shall be 0%.
(d) For a Tier 1 annuitant who first receives an annuity
after December 31, 2015 and is not subject to subsection (c),
the rate of annual increase in that annuity through the year
2019 shall be the greater of 2% or the rate of one-half the
annual unadjusted percentage increase in the consumer price
index-u for the 12 months ending with the September preceding
the date of the increase, but not to exceed 4%, in a compound
calculation. However, no such annuitant shall receive an annual
increase in annuity in 2016.
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Beginning with the annual increase in 2020, the rate of
annual increase in that annuity shall depend on the funded
ratio of the Fund as follows:
(1) In the second year immediately following any year
for which the Annual Actuarial Report of the Fund
determines that the Fund's actuarial assets are equal to or
greater than 59% but less than 100% of the Fund's actuarial
liabilities, the rate of annual increase in that annuity
shall be the greater of 2% or the rate of one-half the
annual unadjusted percentage increase in the consumer
price index-u for the 12 months ending with the September
preceding the date of the increase, but not to exceed 4%,
in a compound calculation.
(2) In the second year immediately following any year
for which the Annual Actuarial Report of the Fund
determines that the Fund's actuarial assets are equal to or
greater than 100% of the Fund's actuarial liabilities, the
rate of annual increase in that annuity shall be the
greater of 3% or the rate of one-half the annual unadjusted
percentage increase in the consumer price index-u for the
12 months ending with the September preceding the date of
the increase, but not to exceed 4%, in a compound
calculation.
(3) In the second year immediately following any year
for which the Annual Actuarial Report of the Fund
determines that the Fund's actuarial assets are less than
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59% of the Fund's actuarial liabilities, the rate of annual
increase in that annuity shall be 0%.
(e) For a Tier 2 annuitant, the rate of annual increase in
that annuity through the year 2019 shall be the lesser of 3% or
the rate of one-half the annual unadjusted percentage increase
in the consumer price index-u for the 12 months ending with the
September preceding the date of the increase (but not less than
zero), in a simple calculation. However, no such annuitant
shall receive an annual increase in annuity in 2016.
Beginning with the annual increase in 2020, the rate of
annual increase in that annuity shall depend on the funded
ratio of the Fund as follows:
(1) In the second year immediately following any year
for which the Annual Actuarial Report of the Fund
determines that the Fund's actuarial assets are equal to or
greater than 59% but less than 100% of the Fund's actuarial
liabilities, the rate of annual increase in that annuity
shall be the lesser of 3% or the rate of one-half the
annual unadjusted percentage increase in the consumer
price index-u for the 12 months ending with the September
preceding the date of the increase (but not less than
zero), in a simple calculation.
(2) In the second year immediately following any year
for which the Annual Actuarial Report of the Fund
determines that the Fund's actuarial assets are equal to or
greater than 100% of the Fund's actuarial liabilities, the
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rate of annual increase in that annuity shall be the
greater of 2% or the rate of one-half the annual unadjusted
percentage increase in the consumer price index-u for the
12 months ending with the September preceding the date of
the increase, but not to exceed 4%, in a simple
calculation.
(3) In the second year immediately following any year
for which the Annual Actuarial Report of the Fund
determines that the Fund's actuarial assets are less than
59% of the Fund's actuarial liabilities, the rate of annual
increase in that annuity shall be 0%.
(f) Notwithstanding the foregoing provisions of this
Section, the following provisions apply as specified to certain
initial annual increases in annuity granted after January 1,
2016:
(1) A Tier 1 employee who retires on annuity and first
receives an annual increase in that annuity after January
1, 2016 shall not receive the initial annual increase in
that annuity until the first day of January immediately
following the 24-month period that follows the employee's
receipt of the annuity.
(2) A Tier 1 employee who retires on annuity before age
60 with less than 30 years of creditable service, and who
first receives an annuity after January 1, 2016, shall not
receive the initial annual increase in that annuity until
the later of (i) January of the year immediately following
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the year in which he or she attains age 60 or (ii) the
first day of January immediately following the 24-month
period that follows the participant's receipt of the
annuity.
(3) A Tier 2 employee who retires on annuity and first
receives an annual increase in that annuity after January
1, 2016 shall receive the initial annual increase in that
annuity on the January 1 occurring either on or after the
attainment of age 65 or the age of general eligibility for
Medicare under the laws of the United States with respect
to a person of the relevant birth year, or the second
anniversary of the annuity start date, whichever is later.
(4) The initial annual increase in an annuity payable
to a Tier 1 or Tier 2 employee who first receives an annual
increase in annuity after January 1, 2016 shall be
discounted on a monthly pro rata basis according to the
month in which the employee first received the annuity,
based on 1/12th increments falling between 0/12ths for an
annuity beginning in January and 11/12ths for an annuity
beginning in December.
(g) For the purposes of Section 1-103.1, the application of
this Section is not limited to persons in service on or after
the effective date of this amendatory Act of the 99th General
Assembly.
(40 ILCS 5/9-133) (from Ch. 108 1/2, par. 9-133)
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Sec. 9-133. Automatic increase in annuity.
Beginning January 1, 2016, this Section is subject to
Section 9-132.1, and to the extent that there is a conflict,
Section 9-132.1 controls. For the purposes of Section 1-103.1,
the application of this provision is not limited to persons in
service on or after the effective date of this amendatory Act
of the 99th General Assembly.
(a) An employee who retired or retires from service after
December 31, 1959, having attained age 60 or more or, beginning
January 1, 1991, having attained 30 or more years of creditable
service, shall, in the month of January of the year following
the year in which the first anniversary of retirement occurs,
have his then fixed and payable monthly annuity increased by 1
1/2%, and such first fixed annuity as granted at retirement
increased by a further 1 1/2% in January of each year
thereafter. Beginning with January of the year 1972, such
increases shall be at the rate of 2% in lieu of the aforesaid
specified 1 1/2%. Beginning with January of the year 1982, such
increases shall be at the rate of 3% in lieu of the aforesaid
specified 2%. Beginning January 1, 1998, these increases shall
be at the rate of 3% of the current amount of the annuity,
including any previous increases received under this Article,
without regard to whether the annuitant is in service on or
after the effective date of this amendatory Act of 1997.
An employee who retires on annuity before age 60 and,
beginning January 1, 1991, with less than 30 years of
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creditable service shall receive such increases beginning with
January of the year immediately following the year in which he
attains the age of 60 years. An employee who retires on annuity
before age 60 and before January 1, 1991, with at least 30
years of creditable service, shall be entitled to receive the
first increase under this subsection no later than January 1,
1993.
For an employee who, in accordance with the provisions of
Section 9-108.1 of this Act, shall have become a member of the
State System established under Article 14 on February 1, 1974,
the first such automatic increase shall begin in January of
1975.
(b) Subsection (a) is not applicable to an employee
retiring and receiving a term annuity, as defined in this Act,
nor to any otherwise qualified employee who retires before he
makes employee contributions (at the 1/2 of 1% rate as provided
in this Section) for this additional annuity for not less than
the equivalent of one full year. Such employee, however, shall
make arrangement to pay to the fund a balance of such
contributions, based on his final salary, as will bring such
1/2 of 1% contributions, computed without interest, to the
equivalent of one year's contributions.
Beginning with the month of January, 1960, each employee
shall contribute by means of salary deductions 1/2 of 1% of
each salary payment, concurrently with and in addition to the
employee contributions otherwise provided for annuity
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purposes.
Each such additional contribution shall be used, together
with county contributions, to defray the cost of the specified
annuity increments.
Such additional employee contributions are not refundable,
except to an employee who withdraws and applies for refund
under this Article, or applies for annuity, and also in cases
where a term annuity becomes payable. In such cases his
contributions shall be refunded, without interest.
(Source: P.A. 95-369, eff. 8-23-07.)
(40 ILCS 5/9-133.1) (from Ch. 108 1/2, par. 9-133.1)
Sec. 9-133.1. Automatic increases in annuity for certain
heretofore retired participants.
Beginning January 1, 2016, this Section is subject to
Section 9-132.1, and to the extent that there is a conflict,
Section 9-132.1 controls. For the purposes of Section 1-103.1,
the application of this provision is not limited to persons in
service on or after the effective date of this amendatory Act
of the 99th General Assembly.
A retired employee retired at age 55 or over and who (a) is
receiving annuity based on a service credit of 20 or more
years, and (b) does not qualify for the automatic increases in
annuity provided for in Sec. 9-133 of this Article, and (c)
elects to make a contribution to the Fund at a time and manner
prescribed by the Retirement Board, of a sum equal to 1% of the
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final average monthly salary forming the basis of the
calculation of their annuity multiplied by years of credited
service, or 1% of their final monthly salary multiplied by
years of credited service in any case where the final average
salary is not used in the calculation, shall have his original
fixed and payable monthly amount of annuity increased in
January of the year following the year in which he attains the
age of 65 years, if such age of 65 years is attained in the year
1969 or later, by an amount equal to 1 1/2%, and by an equal
additional 1 1/2% in January of each year thereafter. Beginning
with January of the year 1972, such increases shall be at the
rate of 2% in lieu of the aforesaid specified 1 1/2%. Beginning
with January of the year 1982, such increases shall be at the
rate of 3% in lieu of the aforesaid specified 2%. Beginning
January 1, 1998, these increases shall be at the rate of 3% of
the current amount of the annuity, including any previous
increases received under this Article, without regard to
whether the annuitant is in service on or after the effective
date of this amendatory Act of 1997.
In those cases in which the retired employee receiving
annuity has attained the age of 66 or more years in the year
1969, he shall have such annuity increased in January of the
year 1970 by an amount equal to 1 1/2% multiplied by the number
equal to the number of months of January elapsing from and
including January of the year immediately following the year he
attained the age of 65 years if retired at or prior to age 65,
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or from and including January of the year immediately following
the year of retirement if retired at an age greater than 65
years, to and including January of the year 1970, and by an
equal additional 1 1/2% in January of each year thereafter.
Beginning with January of the year 1972, such increases shall
be at the rate of 2% in lieu of the aforesaid specified 1 1/2%.
Beginning with January of the year 1982, such increases shall
be at the rate of 3% in lieu of the aforesaid specified 2%.
Beginning January 1, 1998, these increases shall be at the rate
of 3% of the current amount of the annuity, including any
previous increases received under this Article, without regard
to whether the annuitant is in service on or after the
effective date of this amendatory Act of 1997.
To defray the annual cost of such increases, the annual
interest income of the Fund, accruing from investments held by
the Fund, exclusive of gains or losses on sales or exchanges of
assets during the year, over and above 4% a year, shall be used
to the extent necessary and available to finance the cost of
such increases for the following year.
(Source: P.A. 95-369, eff. 8-23-07.)
(40 ILCS 5/9-133.2 new)
Sec. 9-133.2. Minimum annuity - annuity beginning on or
after December 31, 2015.
(a) Notwithstanding any other provision of this Article,
beginning December 31, 2015, a Tier 1 employee with 10 or more
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years of service who meets the minimum age requirement of this
subsection may elect to receive, in lieu of any other
retirement annuity provided under this Article, an annuity
calculated under this subsection.
The annuity shall begin no earlier than upon attainment of
the following specified minimum age: age 50 if the annuity
begins in 2015; age 51 if the annuity begins in 2016 or 2017;
age 52 if the annuity begins in 2018 or 2019; age 53 if the
annuity begins in 2020 or 2021; age 54 if the annuity begins in
2022 or 2023; or age 55 if the annuity begins in 2024 or
thereafter.
The annuity shall be equal to 2.40% of the employee's
average annual salary for each year of service before January
1, 2016, and 2.30% of that average annual salary for each year
of service on or after January 1, 2016, except that: (i) these
percentages are subject to reduction under subsection (e) of
this Section; (ii) the annuity shall in no event exceed 80% of
final average salary; and (iii) if the employee has less than
30 years of service, the annuity shall be reduced by 0.5% for
each full month or remaining fraction thereof that the
employee's attained age when the annuity is to begin is less
than age 60 for an annuity beginning in 2015, less than age 61
for an annuity beginning in 2016 or 2017, less than age 62 for
an annuity beginning in 2018 or 2019, less than age 63 for an
annuity beginning in 2020 or 2021, less than age 64 for an
annuity beginning in 2022 or 2023, or less than age 65 for an
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annuity beginning in 2024 or thereafter.
(b) Notwithstanding any other provision of this Article or
Section 1-160, beginning January 1, 2016, a Tier 2 employee
with 10 or more years of service may elect to receive, in lieu
of any other retirement annuity provided under this Article, an
annuity calculated under this subsection, to begin no earlier
than upon attainment of age 62.
The annuity shall be equal to 2.40% of the employee's
average annual salary for each year of service before July 1,
2015, and 2.30% of that average annual salary for each year of
service on or after January 1, 2016, except that: (i) these
percentages are subject to reduction under subsection (e) of
this Section; (ii) the annuity shall in no event exceed 80% of
final average salary; and (iii) the annuity shall be reduced by
0.5% for each full month or remaining fraction thereof that the
employee's attained age when the annuity is to begin is less
than age 65 or the age of general eligibility for Medicare
under the laws of the United States with respect to a person of
the relevant birth year, whichever is greater.
(c) Notwithstanding any other provision of this Article,
beginning January 1, 2016, a Tier 1 employee who is a county
security officer with at least the final 10 years of service as
a county security officer may elect to receive, in lieu of any
other retirement annuity provided under this Article, an
annuity calculated under this subsection, to begin no earlier
than upon attainment of age 50.
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The annuity shall be equal to 2.40% of the employee's
average annual salary for each year of service before January
1, 2016, and 2.30% of that average annual salary for each year
of service on or after January 1, 2016, except that: (i) these
percentages are subject to reduction under subsection (e) of
this Section; (ii) the annuity shall in no event exceed 80% of
final average salary; and (iii) if the employee has less than
30 years of service, the annuity shall be reduced by 0.5% for
each full month or remaining fraction thereof that the
employee's attained age when the annuity is to begin is less
than age 60 for an annuity beginning in 2015, less than age 61
for an annuity beginning in 2016 or 2017, or less than age 62
for an annuity beginning in 2018 or thereafter.
(d) Notwithstanding any other provision of law, beginning
January 1, 2016, a Tier 2 employee who is a county security
officer with at least the final 10 years of service as a county
security officer may elect to receive, in lieu of any other
retirement annuity provided under this Article or Section
1-160, an annuity calculated under this subsection, to begin no
earlier than upon attainment of age 62.
The annuity shall be equal to 2.40% of the employee's
average annual salary for each year of service prior to January
1, 2016, and 2.30% of that average annual salary for each year
of service on or after January 1, 2016, except that: (i) these
percentages are subject to reduction under subsection (e) of
this Section; and (ii) the annuity shall in no event exceed 80%
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of final average salary.
(e) Beginning with service in 2020, in the second year
immediately following any year for which the Annual Actuarial
Report of the Fund determines that the Fund's actuarial assets
are less than 59% of the Fund's actuarial liabilities, the
percentage of average annual salary to be used for service
credit from that second immediately following year shall be
2.20% of average annual salary instead of the percentage
otherwise specified in this Section.
(f) For the purposes of Section 1-103.1, the application of
this Section is not limited to persons in service on or after
the effective date of this amendatory Act of the 99th General
Assembly.
(40 ILCS 5/9-134) (from Ch. 108 1/2, par. 9-134)
Sec. 9-134. Minimum annuity - Additional provisions -
Annuity beginning before January 1, 2016.
Notwithstanding any other provision of this Article, this
Section does not apply to an annuity that begins on or after
January 1, 2016. For the purposes of Section 1-103.1,
application of this provision is not limited to persons in
service on or after the effective date of this amendatory Act
of the 99th General Assembly.
(a) An employee who withdraws after July 1, 1957 at age 60
or more with 20 or more years of service, for whom the amount
of age and service and prior service annuity combined is less
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than the amount stated in this Section from the date of
withdrawal, instead of all annuities otherwise provided in this
Article, is entitled to receive an annuity for life of an
amount equal to 1 2/3% for each year of service, of his highest
average annual salary for any 5 consecutive years within the
last 10 years of service immediately preceding the date of
withdrawal; provided that in the case of any employee who
withdraws on or after July 1, 1971, such employee age 60 or
over with 20 or more years of service, or who withdraws on or
after January 1, 1982 and on or after attainment of age 65 with
10 or more years of service, shall instead receive an annuity
for life equal to 1.67% for each of the first 10 years of
service; 1.90% for each of the next 10 years of service; 2.10%
for each year of service in excess of 20 but not exceeding 30;
and 2.30% for each year of service in excess of 30, based on
the highest average annual salary for any 4 consecutive years
within the last 10 years of service immediately preceding the
date of withdrawal.
An employee who withdraws after July 1, 1957, but prior to
January 1, 1988, with 20 or more years of service, before age
60 is entitled to annuity, to begin not earlier than age 55, if
under such age at withdrawal, as computed in the last preceding
paragraph, reduced 1/2 of 1% for each full month or fractional
part thereof that his attained age when annuity is to begin is
less than 60 to the end that the total reduction at age 55
shall be 30%, except that an employee retiring at age 55 or
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over but less than age 60, having at least 35 years of service,
shall not be subject to the reduction in his retirement annuity
because of retirement below age 60.
An employee who withdraws on or after January 1, 1988, with
20 or more years of service and before age 60, is entitled to
annuity as computed above, to begin not earlier than age 50 if
under such age at withdrawal, reduced 1/2 of 1% for each full
month or fractional part thereof that his attained age when
annuity is to begin is less than 60, to the end that the total
reduction at age 50 shall be 60%, except that an employee
retiring at age 50 or over but less than age 60, having at
least 30 years of service, shall not be subject to the
reduction in retirement annuity because of retirement below age
60.
An employee who withdraws on or after January 1, 1992 but
before January 1, 1993, at age 60 or over with 5 or more years
of service, may elect, in lieu of any other employee annuity
provided in this Section, to receive an annuity for life equal
to 2.20% for each of the first 20 years of service, and 2.40%
for each year of service in excess of 20, based on the highest
average annual salary for any 4 consecutive years within the
last 10 years of service immediately preceding the date of
withdrawal. An employee who withdraws on or after January 1,
1992, but before January 1, 1993, on or after attainment of age
55 but before attainment of age 60 with 5 or more years of
service, is entitled to elect such annuity, but the annuity
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shall be reduced 0.25% for each full month or fractional part
thereof that his attained age when the annuity is to begin is
less than age 60, to the end that the total reduction at age 55
shall be 15%, except that an employee retiring at age 55 or
over but less than age 60, having at least 30 years of service,
shall not be subject to the reduction in retirement annuity
because of retirement below age 60. This annuity benefit
formula shall only apply to those employees who are age 55 or
over prior to January 1, 1993, and who elect to withdraw at age
55 or over on or after January 1, 1992 but before January 1,
1993.
An employee who withdraws on or after July 1, 1996 but
before August 1, 1996, at age 55 or over with 8 or more years of
service, may elect, in lieu of any other employee annuity
provided in this Section, to receive an annuity for life equal
to 2.20% for each of the first 20 years of service, and 2.40%
for each year of service in excess of 20, based on the highest
average annual salary for any 4 consecutive years within the
last 10 years of service immediately preceding the date of
withdrawal, but the annuity shall be reduced by 0.25% for each
full month or fractional part thereof that the annuitant's
attained age when the annuity is to begin is less than age 60,
unless the annuitant has at least 30 years of service.
The maximum annuity under this paragraph (a) shall not
exceed 70% of highest average annual salary for any 5
consecutive years within the last 10 years of service in the
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case of an employee who withdraws prior to July 1, 1971, and
75% of the highest average annual salary for any 4 consecutive
years within the last 10 years of service immediately preceding
the date of withdrawal if withdrawal takes place on or after
July 1, 1971 and prior to January 1, 1988, and 80% of the
highest average annual salary for any 4 consecutive years
within the last 10 years of service immediately preceding the
date of withdrawal if withdrawal takes place on or after
January 1, 1988. Fifteen hundred dollars shall be considered
the minimum amount of annual salary for any year, and the
maximum shall be his salary as defined in this Article, except
that for the years before 1957 and subsequent to 1952 the
maximum annual salary to be considered shall be $6,000, and for
any year before the year 1953, $4,800.
(b) Any employee who withdraws on or after July 1, 1985 but
prior to January 1, 1988, at age 60 or over with 10 or more
years of service, may elect in lieu of the benefit in paragraph
(a) to receive an annuity for life equal to 2.00% for each year
of service, based on the highest average annual salary for any
4 consecutive years within the last 10 years of service
immediately preceding the date of withdrawal. An employee who
withdraws on or after July 1, 1985, but prior to January 1,
1988, with 10 or more years of service, but before age 60, is
entitled to elect such annuity, to begin not earlier than age
55, but the annuity shall be reduced 0.5% for each full month
or fractional part thereof that his attained age when the
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annuity is to begin is less than 60, to the end that the total
reduction at age 55 shall be 30%; except that an employee
retiring at age 55 or over but less than age 60, having at
least 30 years of service, shall not be subject to the
reduction in retirement annuity because of retirement below age
60.
An employee who withdraws on or after January 1, 1988, at
age 60 or over with 10 or more years of service, may elect, in
lieu of the benefit in paragraph (a), to receive an annuity for
life equal to 2.20% for each of the first 20 years of service,
and 2.4% for each year of service in excess of 20, based on the
highest average annual salary for any 4 consecutive years
within the last 10 years of service immediately preceding the
date of withdrawal. An employee who withdraws on or after
January 1, 1988, with 10 or more years of service, but before
age 60, is entitled to elect such annuity, to begin not earlier
than age 50, but the annuity shall be reduced 0.5% for each
full month or fractional part thereof that his attained age
when the annuity is to begin is less than 60, to the end that
the total reduction at age 50 shall be 60%, except that an
employee retiring at age 50 or over but less than age 60,
having at least 30 years of service, shall not be subject to
the reduction in retirement annuity because of retirement below
age 60.
An employee who withdraws on or after June 30, 2002 with 10
or more years of service may elect, in lieu of any other
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retirement annuity provided under this Article, to receive an
annuity for life, beginning no earlier than upon attainment of
age 50, equal to 2.40% of his or her highest average annual
salary for any 4 consecutive years within the last 10 years of
service immediately preceding withdrawal, for each year of
service. If the employee has less than 30 years of service, the
annuity shall be reduced by 0.5% for each full month or
remaining fraction thereof that the employee's attained age
when the annuity is to begin is less than 60.
The maximum annuity under this paragraph (b) shall not
exceed 75% of the highest average annual salary for any 4
consecutive years within the last 10 years of service
immediately preceding the date of withdrawal if withdrawal
occurs prior to January 1, 1988, or 80% of the highest average
annual salary for any 4 consecutive years within the last 10
years of service immediately preceding the date of withdrawal
if withdrawal takes place on or after January 1, 1988.
The provisions of this paragraph (b) do not apply to any
former County employee receiving an annuity from the fund, who
re-enters service as a County employee, unless he renders at
least 3 years of additional service after the date of re-entry.
(c) For an employee receiving disability benefit, the
salary for annuity purposes under paragraph (a) or (b) of this
Section shall, for all periods of disability benefit subsequent
to the year 1956, be the amount on which his disability benefit
was based.
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(d) A county employee with 20 or more years of service,
whose entire disability benefit credit period expires before
attainment of age 50 (age 55 if expiration occurs before
January 1, 1988), while still disabled for service is entitled
upon withdrawal to the larger of:
(1) The minimum annuity provided above, assuming that
he is then age 50 (age 55 if expiration occurs before
January 1, 1988), and reducing such annuity to its
actuarial equivalent at his attained age on such date, or
(2) the annuity provided from his age and service and
prior service annuity credits.
(e) The minimum annuity provisions above do not apply to
any former county employee receiving an annuity from the fund,
who re-enters service as a county employee, unless he renders
at least 3 years of additional service after the date of
re-entry.
(f) Any employee in service on July 1, 1947, or who enters
service thereafter before attaining age 65 and withdraws after
age 65 with less than 10 years of service for whom the annuity
has been fixed under the foregoing Sections of this Article,
shall, instead of the annuity so fixed, receive an annuity as
follows:
Such amount as he could have received had the accumulated
amounts for annuity been improved with interest at the
effective rate to the date of withdrawal, or to attainment of
age 70, whichever is earlier, and had the county contributed to
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such earlier date for age and service annuity the amount that
it would have contributed had he been under age 65, after the
date his annuity was fixed in accordance with this Article, and
assuming his annuity were computed from such accumulations as
of his age on such earlier date. However those employees who
before July 1, 1953, made additional contributions in
accordance with this Article, the annuity so computed under
this paragraph shall not exceed the annuity which would be
payable under the other provisions of this Section if the
employee concerned was credited with 20 years of service and
would qualify for annuity thereunder.
(g) Instead of the annuity provided in this or any other
Section of this Article, an employee having attained age 65
with at least 15 years of service may elect to receive a
minimum annual annuity for life equal to 1% of the highest
average annual salary for any 4 consecutive years within the
last 10 years of service immediately preceding retirement for
each year of service, plus the sum of $25 for each year of
service provided that no such minimum annual annuity may be
greater than 60% of such highest average annual salary.
(h) The annuity is payable in equal monthly installments.
(i) If, by operation of law, a function of a governmental
unit, as defined by Section 20-107 of this Code, is transferred
in whole or in part to the county in which this Article 9 is
created as set forth in Section 9-101, and employees of the
governmental unit are transferred as a class to such county,
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the earnings credits in the retirement system covering the
governmental unit which have been validated under Section
20-109 of this Code shall be considered in determining the
highest average annual salary for purposes of this Section
9-134.
(j) The annuity being paid to an employee annuitant on July
1, 1988, shall be increased on that date by 1% for each full
year that has elapsed from the date the annuity began.
(k) Notwithstanding anything to the contrary in this
Article 9, Section 20-131 shall not apply to an employee who
withdraws on or after January 1, 1988, but prior to attaining
age 55. Therefore, no employee shall be entitled to elect to
have the alternative formula previously set forth in Section
20-122 prior to the amendatory Act of 1975 apply to any
annuity, the payment of which commenced after January 1, 1988,
but prior to such employee's attainment of age 55.
(Source: P.A. 92-599, eff. 6-28-02.)
(40 ILCS 5/9-146.2)
Sec. 9-146.2. Automatic annual increase in widow's
annuity.
Beginning January 1, 2016, this Section is subject to
Section 9-132.1, and to the extent that there is a conflict,
Section 9-132.1 controls. For the purposes of Section 1-103.1,
the application of this provision is not limited to persons in
service on or after the effective date of this amendatory Act
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of the 99th General Assembly.
(a) Every widow's annuity, other than a term annuity, shall
be increased on January 1, 1998 or the January 1 occurring on
or immediately after the first anniversary of the deceased
employee's death, whichever occurs later, by an amount equal to
3% of the amount of the annuity.
On each January 1 after the date of the initial increase
under this Section, the widow's annuity shall be increased by
an amount equal to 3% of the amount of the widow's annuity
payable at the time of the increase, including any increases
previously granted under this Article.
(b) Limitations on the maximum amount of widow's annuity
imposed under Section 9-150 do not apply to the annual
increases provided under this Section.
(c) The increases provided under this Section also apply to
compensation annuities and supplemental annuities payable
under Section 9-147. The increases provided under this Section
do not apply to term annuities.
(Source: P.A. 90-32, eff. 6-27-97.)
(40 ILCS 5/9-169) (from Ch. 108 1/2, par. 9-169)
Sec. 9-169. Financing - Tax levy.
(a) For each fiscal year prior to 2016, the The county
board shall levy a tax annually upon all taxable property in
the county at the rate that will produce a sum which, when
added to the amounts deducted from the salaries of the
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employees or otherwise contributed by them is sufficient for
the requirements of this Article.
For the years before 1962 the tax rate shall be as provided
in "The 1925 Act". For the years 1962 and 1963 the tax rate
shall be not more than .0200 per cent; for the years 1964 and
1965 the tax rate shall be not more than .0202 per cent; for
the years 1966 and 1967 the tax rate shall be not more than
.0207 per cent; for the year 1968 the tax rate shall be not
more than .0220 per cent; for the year 1969 the tax rate shall
be not more than .0233 per cent; for the year 1970 the tax rate
shall be not more than .0255 per cent; for the year 1971 the
tax rate shall be not more than .0268 per cent of the value, as
equalized or assessed by the Department of Revenue upon all
taxable property in the county.
Beginning with the year 1972 and for each year thereafter
through 2015, the county shall levy a tax annually at a rate on
the dollar of the value, as equalized or assessed by the
Department of Revenue of all taxable property within the county
that will produce, when extended, not to exceed an amount equal
to the total amount of contributions made by the employees to
the fund in the calendar year 2 years prior to the year for
which the annual applicable tax is levied multiplied by .8 for
the years 1972 through 1976; by .8 for the year 1977; by .87
for the year 1978; by .94 for the year 1979; by 1.02 for the
year 1980 and by 1.10 for the year 1981 and by 1.18 for the year
1982 and by 1.36 for the year 1983 and by 1.54 for the year 1984
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and for each year thereafter through 2015.
Beginning with the year 2016 and for each year thereafter,
the county may levy a tax annually at a rate on the dollar of
the value, as equalized or assessed by the Department of
Revenue, of all taxable property within the County that will
produce, when extended, not to exceed an amount equal to the
total amount of County contributions required for that year
under subsection (a-5), (a-10), (a-15), or (a-20), whichever is
applicable.
(a-5) For each of years 2016 and 2017, the County shall
contribute to the Fund, from any permissible source, an amount
that is no less than 1.90 multiplied by the amount that would
have been contributed by employees in the calendar year 2 years
prior if they had contributed at the rate of 10.5% of the
salary upon which they actually contributed pension
contributions.
(a-10) For each of years 2018 and 2019, the County shall
contribute to the Fund, from any permissible source, an amount
that is no less than the amount contributed by employees in the
calendar year 2 years prior multiplied by 1.90, as certified by
the Retirement Board.
(a-15) For year 2020 and for each year thereafter, the
County shall contribute to the Fund, from any permissible
source, the greater of: (i) an amount that is no less than the
amount contributed by employees in the calendar year 2 years
prior multiplied by 1.90; or (ii) an amount which constitutes
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the Minimum Required Employer Contribution for that year, as
certified by the Retirement Board.
(a-20) The provisions of subsection (a-15)
notwithstanding, whenever 2 consecutive Annual Actuarial
Reports determine that the funded ratio of the Fund exceeds
101%, then the County's contribution to the Fund for the second
year immediately following the year upon which the second such
Annual Actuarial Report is based shall be equal to the amount
required to maintain a projected funded ratio of 101% in 30
years' time, multiplied by 0.6.
(a-25) The tax referred to in subsection (a) This tax shall
be levied and collected in like manner with the general taxes
of the county, and shall be in addition to all other taxes
which the county is authorized to levy upon the aggregate
valuation of all taxable property within the county and shall
be exclusive of and in addition to the amount of tax the county
is authorized to levy for general purposes under any laws which
may limit the amount of tax which the county may levy for
general purposes. The county clerk, in reducing tax levies
under any Act concerning the levy and extension of taxes, shall
not consider this tax as a part of the general tax levy for
county purposes, and shall not include it within any limitation
of the per cent of the assessed valuation upon which taxes are
required to be extended for the county. It is lawful to extend
this tax in addition to the general county rate fixed by
statute, without being authorized as additional by a vote of
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the people of the county.
Revenues derived from this tax shall be paid to the
treasurer of the county and held by him for the benefit of the
fund.
If the payments on account of taxes are insufficient during
any year to meet the requirements of this Article, the county
may issue tax anticipation warrants against the current tax
levy.
(a-30) Beginning January 1, 2016, the Fund shall not use
any contributions received by the Fund under this Article to
provide a subsidy for the cost of participation in an annuitant
healthcare program.
(b) By January 10, annually, the board shall notify the
county board of whether the tax referred to in subsection (a)
the requirement of this Article that this tax shall be levied.
The board shall make an annual determination of the required
county contributions, and shall certify the results thereof to
the county board.
(c) In lieu of levying all or a portion of real estate
taxes to fully meet the requirement of subsections (a-5),
(a-10), (a-15), and (a-20) in any year, the County may, through
its appropriation bill, disburse to and deposit with the County
treasurer no later than the final day of the fiscal year that
corresponds to said appropriation bill, for the benefit of the
Fund, to be held in accordance with this Article, an amount
that, together with such real estate taxes as are specifically
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levied under this Section for that year, is not less than the
amount of the required County contributions for that year as
certified by the retirement board to the county board. The
deposit may be derived from any source legally available for
that purpose. The making of a deposit shall satisfy fully the
requirements of this Section for that year to the extent of the
amounts so deposited. Amounts deposited under this subsection
may be used by the Fund for any of the purposes for which the
proceeds of real estate taxes levied by the County under this
Section may otherwise be used, including the payment of any
amount that is otherwise required by this Article to be paid
from the proceeds of that tax. The various sums to be
contributed by the county board and allocated for the purposes
of this Article and any interest to be contributed by the
county shall be taken from the revenue derived from this tax
and no money of the county derived from any source other than
the levy and collection of this tax or the sale of tax
anticipation warrants, except state or federal funds
contributed for annuity and benefit purposes for employees of a
county department of public aid under "The Illinois Public Aid
Code", approved April 11, 1967, as now or hereafter amended,
may be used to provide revenue for the fund.
If it is not possible or practicable for the county to make
contributions for age and service annuity and widow's annuity
concurrently with the employee contributions made for such
purposes, such county shall make such contributions as soon as
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possible and practicable thereafter with interest thereon at
the effective rate until the time it shall be made.
(d) With respect to employees whose wages are funded as
participants under the Comprehensive Employment and Training
Act of 1973, as amended (P.L. 93-203, 87 Stat. 839, P.L.
93-567, 88 Stat. 1845), hereinafter referred to as CETA,
subsequent to October 1, 1978, and in instances where the board
has elected to establish a manpower program reserve, the board
shall compute the amounts necessary to be credited to the
manpower program reserves established and maintained as herein
provided, and shall make a periodic determination of the amount
of required contributions from the County to the reserve to be
reimbursed by the federal government in accordance with rules
and regulations established by the Secretary of the United
States Department of Labor or his designee, and certify the
results thereof to the County Board. Any such amounts shall
become a credit to the County and will be used to reduce the
amount which the County would otherwise contribute during
succeeding years for all employees.
(e) In lieu of establishing a manpower program reserve with
respect to employees whose wages are funded as participants
under the Comprehensive Employment and Training Act of 1973, as
authorized by subsection (d), the board may elect to establish
a special County contribution rate for all such employees. If
this option is elected, the County shall contribute to the Fund
from federal funds provided under the Comprehensive Employment
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and Training Act program at the special rate so established and
such contributions shall become a credit to the County and be
used to reduce the amount which the County would otherwise
contribute during succeeding years for all employees.
(Source: P.A. 95-369, eff. 8-23-07.)
(40 ILCS 5/9-169.1 new)
Sec. 9-169.1. Actions to enforce payments by County.
(a) If the County fails to transmit to the Fund
contributions required of it under this Article or
contributions collected by it from its participating employees
for the purposes of this Article for more than 30 days after
the payment of such contributions is due, the Fund, after
giving notice to the County, may certify to the State
Comptroller the amounts of such delinquent payments and the
State Comptroller shall deduct and deposit into the Fund the
certified amounts or a portion of those amounts from grants of
State funds to the County. If State funds from which such
deductions may be made are not sufficiently available, the
retirement board may proceed against the County to recover the
amounts of such delinquent payments in the appropriate circuit
court.
(b) If the County fails to transmit to the Fund
contributions required of it under this Article or
contributions collected by it from its participating employees
for the purposes of this Article for more than 30 days after
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- 109 - LRB099 13050 RPS 36929 b
the payment of such contributions is due, the Fund, after
giving notice to the County, may certify the fact of such
delinquent payment to the County treasurer, who shall
thereafter remit the amounts collected from any real estate
taxes levied by the County, provided, however, that any
payments made by the County under this subsection are expressly
subordinated to the payment of the principal, interest,
premium, if any, and other payments on or related to any bonded
or note debt obligation of the County, either currently
outstanding or to be issued, for which the source of repayment
or security thereon is derived directly or indirectly from any
funds collected or received by the County or collected or
received on behalf of the County. Payments on such bonded or
note obligations include any statutory fund transfers or other
prefunding mechanisms or formulas set forth, now or hereafter,
in State law, County ordinance, or bond indentures, into debt
service funds or accounts of the County related to such bonded
or note obligations, consistent with the payment schedules
associated with such obligations.
(c) Notwithstanding any other provision of law, if the
County fails to transmit to the Fund the contributions required
under this Article or contributions collected by it from its
participating employees for the purposes of this Article for
more than 30 days after the payment of such contributions is
due, the retirement board may bring a mandamus action in the
Circuit Court of Cook County to compel the County to make the
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required payment, irrespective of other remedies that are
available to the Fund. The obligations and causes of action
created under this Section shall be in addition to any other
right or remedy otherwise accorded by common law or State or
federal law, and nothing in this Section shall be construed to
deny, abrogate, impair, or waive any such common law or
statutory right or remedy. Any payments required to be made by
the County pursuant to this Section are expressly subordinated
to the payment of the principal, interest, premium, if any, and
other payments on or related to any bonded or note debt
obligation of the County, either currently outstanding or to be
issued, for which the source of repayment or security thereon
is derived directly or indirectly from any funds collected or
received by the County or collected or received on behalf of
the County. Payments on such bonded or note obligations include
any statutory fund transfers or other prefunding mechanisms or
formulas set forth, now or hereafter, in State law, County
ordinance, or bond indentures, into debt service funds or
accounts of the County related to such bonded or note
obligations, consistent with the payment schedules associated
with such obligations.
If reports furnished to the Fund by the County are
inadequate for the computation of the amounts of such
delinquent payments, the Fund may provide for such audit of the
records of the County as may be required to establish the
amounts of such delinquent payments. The County shall make its
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records available to the Fund for the purpose of such audit.
The cost of such audit shall be added to the amount of the
delinquent payments and shall be recovered by the Fund from the
County at the same time and in the same manner as the
delinquent payments are recovered.
(d) For the purposes of this Section, the due date for
contributions made by an appropriation bill is the final day of
the fiscal year that corresponds to the appropriation bill, and
the due date for contributions made from property taxes is 60
days after the date specified on the real estate tax bill as
the second installment due date for the specified tax year
associated with said appropriation bill.
(40 ILCS 5/9-170) (from Ch. 108 1/2, par. 9-170)
Sec. 9-170. Financing; employee and County contributions
Contributions for age and service annuities for present and
future employees, future entrants and re-entrants.
(a) Beginning on the effective date as to a present
employee in paragraph (a) or (c) of Section 9-109, or as to a
future entrant in paragraph (a) of Section 9-110, and beginning
on September 1, 1935 as to a present employee in paragraph (b)
(1) of Section 9-109 or as to a future entrant in paragraph (b)
or (d) of Section 9-110, and beginning from the date of
becoming a contributor as to any present employee in paragraph
(b)(2) or (d) of Section 9-109, or any future entrant in
paragraph (c) or (e) of Section 9-110, there shall be deducted
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and contributed to this fund 3 1/4% of each payment of salary
for age and service annuity until July 1, 1947. Beginning July
1, 1947 and prior to July 1, 1953, 5% and beginning July 1,
1953, and prior to September 1, 1971, 6%; and beginning
September 1, 1971, 6 1/2% of each payment of salary of such
employees shall be deducted and contributed for such purpose.
From and after January 1, 1966, each deputy sheriff as
defined in Section 9-128.1 who is a member of the County Police
Department and a participant of this fund, other than a deputy
sheriff who is deemed to be a security officer under Section
9-108.3, shall contribute 7% of salary for age and service
annuity. At the time of retirement on annuity, a deputy sheriff
who is a member of the County Police Department and retires,
who chooses to retire under provisions of this Article other
than Section 9-128.1, may receive a refund of the difference
between the contributions made as a deputy sheriff who is a
member of the County Police Department and the contributions
that would have been made for such service not as a deputy
sheriff who is a member of the County Police Department,
including interest at the rate established under Section 9-151
earned.
An additional contribution to the Fund for retirement fund
solvency shall be contributed by every employee and deducted
from salary at the following rates: (i) beginning December 1,
2015 through November 30, 2016, 1% of each payment of salary;
and (ii) beginning December 1, 2016 and thereafter, 2% of each
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payment of salary. In the event of withdrawal, these additional
contributions are refundable as is provided in this Article for
other employee contributions.
Such deductions beginning on the effective date and prior
to July 1, 1947 shall be made and continued for a future
entrant while he is in the service until he attains age 65, and
beginning on the effective date and prior to July 1, 1953 for a
present employee while he is in the service until the amount so
deducted from his salary or paid by him according to law to any
county pension fund in force on the effective date, with
interest on both such amounts at 4% per annum, equals the sum
that would have been to his credit from sums deducted from his
salary if deductions at the rate herein stated had been made
during his entire service until he attained age 65, with
interest at 4% per annum for the period subsequent to his
attainment of age 65. Such deductions beginning July 1, 1947
for future entrants and beginning July 1, 1953 for present
employees shall be made and continued while such future entrant
or present employee is in the service.
Notwithstanding any other provision of this Section, if in
any 2 consecutive years the actuarial value of the Fund's
assets exceeds 101% of the Fund's liabilities, the employees'
aggregate contribution, in the year following that second
consecutive year, shall be equal to the amount required to
maintain a projected funded ratio of 101% in 30 years' time,
multiplied by 0.4.
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(b) Concurrently with each employee contribution, the
county shall contribute beginning on the effective date and
prior to July 1, 1947, 5 3/4%, and beginning on July 1, 1947
and prior to July 1, 1953, 7%; and beginning on July 1, 1953,
6% of each payment of such salary until the employee attains
age 65.
(c) Each present employee contribution made prior to the
date the age and service annuity for such employee is fixed,
each future entrant contribution, and each corresponding
county contribution shall be allocated to the account of and
credited to the employee for whose benefit it is made.
(Source: P.A. 86-1488.)
(40 ILCS 5/9-179.2) (from Ch. 108 1/2, par. 9-179.2)
Sec. 9-179.2. Other governmental service - Former County
Service. Any employee who (i) first became a contributor before
the effective date of this amendatory Act of the 99th General
Assembly, (ii) has rendered service to any "governmental unit"
as such term is defined in the "Retirement Systems Reciprocal
Act" under Article 20 of the Illinois Pension Code, (iii) who
did not contribute to the retirement system of such
"governmental unit", including the retirement system created
by this Article 9 of the Illinois Pension code, for such
service because of ineligibility for participation, and (iv)
has no equity or rights in such retirement system because of
such service shall be given credit for such service in this
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fund, provided that:
(a) the The employee shall pay to this fund, while in
the service of such county, or while in the service of a
governmental unit whose retirement system has adopted the
"Retirement Systems Reciprocal Act", such amounts,
including interest at the effective rate, as he would have
paid to this fund, on the basis of his salary in effect
during the service rendered to such other "governmental
unit" at the rates prescribed in this Article 9 for the
periods of such service, to the end that such service shall
be considered as service rendered to such county, with all
the rights and conditions attaching to such service and
payments; and
(b) this Section shall not be applicable to any period
of such service for which the employee retains credit in
any other public annuity and benefit fund established by
Act of the Legislature of this State and in operation for
employees of such other "governmental unit" from which such
employee was transferred.
(Source: P.A. 90-655, eff. 7-30-98.)
(40 ILCS 5/9-179.3) (from Ch. 108 1/2, par. 9-179.3)
Sec. 9-179.3. Optional plan of additional benefits and
contributions.
(a) While this plan is in effect, an employee may establish
additional optional credit for additional optional benefits by
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electing in writing at any time to make additional optional
contributions. The employee may discontinue making the
additional optional contributions at any time by notifying the
fund in writing.
(b) Additional optional contributions for the additional
optional benefits shall be as follows:
(1) For service after the option is elected, an
additional contribution of 3% of salary shall be
contributed to the fund on the same basis and under the
same conditions as contributions required under Sections
9-170 and 9-176.
(2) For service before the option is elected, an
additional contribution of 3% of the salary for the
applicable period of service, plus interest at the
effective rate from the date of service to the date of
payment. All payments for past service must be paid in full
before credit is given. No additional optional
contributions may be made for any period of service for
which credit has been previously forfeited by acceptance of
a refund, unless the refund is repaid in full with interest
at the effective rate from the date of refund to the date
of repayment.
(c) Additional optional benefits shall accrue for all
periods of eligible service for which additional contributions
are paid in full. The additional benefit shall consist of an
additional 1% for each year of service for which optional
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contributions have been paid, based on the highest average
annual salary for any 4 consecutive years within the last 10
years of service immediately preceding the date of withdrawal,
to be added to the employee retirement annuity benefits as
otherwise computed under this Article. The calculation of these
additional benefits shall be subject to the same terms and
conditions as are used in the calculation of retirement annuity
under Section 9-133.2 or 9-134, whichever is applicable
depending on the date of retirement. The additional benefit
shall be included in the calculation of the automatic annual
increase in annuity, and in the calculation of widow's annuity,
where applicable. However no additional benefits will be
granted which produce a total annuity greater than the
applicable maximum established for that type of annuity in this
Article, and additional benefits shall not apply to any benefit
computed under Section 9-128.1.
(d) Refunds of additional optional contributions shall be
made on the same basis and under the same conditions as
provided under Sections 9-164, 9-166 and 9-167. Interest shall
be credited at the effective rate on the same basis and under
the same conditions as for other contributions.
(e) (Blank).
(f) The tax levy, computed under Section 9-169, shall be
based on employee contributions including the amount of
optional additional employee contributions.
(g) Service eligible under this Section may include only
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service as an employee of the County as defined in Section
9-108, and subject to Sections 9-219 and 9-220. No service
granted under Section 9-121.1, 9-121.4 or 9-179.2 shall be
eligible for optional service credit. No optional service
credit may be established for any military service, or for any
service under any other Article of this Code. Optional service
credit may be established for any period of disability paid
from this fund, if the employee makes additional optional
contributions for such periods of disability.
(h) This plan of optional benefits and contributions shall
not apply to any former county employee receiving an annuity
from the fund, who re-enters service as a County employee,
unless he renders at least 3 years of additional service after
the date of re-entry.
(i) The effective date of the optional plan of additional
benefits and contributions shall be July 1, 1985, or the date
upon which approval is received from the Internal Revenue
Service, whichever is later.
(j) This plan of additional benefits and contributions
shall expire July 1, 2005. No additional contributions may be
made after that date, and no additional benefits will accrue
after that date.
(Source: P.A. 95-369, eff. 8-23-07.)
(40 ILCS 5/9-184) (from Ch. 108 1/2, par. 9-184)
Sec. 9-184. Estimates of sums required for certain
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annuities and benefits. The board shall estimate the amounts
required each year to pay for all annuities and benefits and
administrative expenses associated with this Article. The
amounts shall be paid by the contributions paid by the County
under Section 9-169 into the fund annually by the county from
the prescribed tax levy.
(Source: Laws 1963, p. 161.)
(40 ILCS 5/9-185) (from Ch. 108 1/2, par. 9-185)
Sec. 9-185. Board created.
(a) A board of 9 members shall constitute the board of
trustees authorized to carry out the provisions of this
Article. The board of trustees shall be known as "The
Retirement Board of the County Employees' Annuity and Benefit
Fund of .... County". The board shall consist of 2 members
appointed and 7 members elected as hereinafter prescribed.
(b) The appointed members shall be appointed as follows:
One member shall be appointed by the president of the board
comptroller of such county, who may be the comptroller or some
person chosen by him from among employees of the county, who
are versed in the affairs of the comptroller's office; and one
member shall be appointed by the president of the board
treasurer of such county, who shall be may be the treasurer or
some person chosen by him from among employees of the County
who are versed in finance and investment management the affairs
of the treasurer's office.
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The members member appointed by the president of the board
of the County comptroller shall hold office for a term ending
on December 1st of the first year following the year of
appointment. The member appointed by the county treasurer shall
hold office for a term ending on December 1st of the second
year following the year of appointment. The person appointed by
the comptroller of the County who is serving on the board on
the effective date of this amendatory Act of the 99th General
Assembly shall continue to serve until the expiration of his
appointed term, and until his successor has been appointed by
the president of the board of the County. However, the term of
the person appointed by the treasurer of the County who is
serving on the board on the effective date of this amendatory
Act of the 99th General Assembly shall terminate on that date,
and he shall continue to serve only until his successor has
been appointed by the president of the board of the County.
Thereafter, each appointed member shall be appointed by the
president of the board of the County officer that appointed his
predecessor for a term of 2 years.
(c) Three county employee members of the board shall be
elected as follows: within 30 days from and after the date upon
which this Article comes into effect in the county, the clerk
of the county shall arrange for and hold an election. One
employee shall be elected for a term ending on the first day in
the month of December of the first year next following the
effective date; one for a term ending on December 1st of the
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following year; and one for a term ending December 1st of the
second following year.
(d) Beginning December 1, 1988, and every 3 years
thereafter, an annuitant member of the board shall be elected
as follows: the board shall arrange for and hold an election in
which only those participants who are currently receiving
retirement benefits under this Article shall be eligible to
vote and be elected. Each such member shall be elected to a
term ending on the first day in the month of December of the
third following year.
(d-1) Beginning December 1, 2001, and every 3 years
thereafter, an annuitant member of the board shall be elected
as follows: the board shall arrange for and hold an election in
which only those participants who are currently receiving
retirement benefits under this Article shall be eligible to
vote and be elected. Each such member shall be elected to a
term ending on the first day in the month of December of the
third following year. Until December 1, 2001, the position
created under this subsection (d-1) may be filled by the board
as in the case of a vacancy.
(e) Beginning December 1, 1988, if a Forest Preserve
District Employees' Annuity and Benefit Fund shall be in force
in such county and the board of this fund is charged with
administering the affairs of such annuity and benefit fund for
employees of such forest preserve district, a forest preserve
district member of the board shall be elected as of December 1,
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1988, and every 3 years thereafter as follows: the board shall
arrange for and hold an election in which only those employees
of such forest preserve district who are contributors to the
annuity and benefit fund for employees of such forest preserve
district shall be eligible to vote and be elected. Each such
member shall be elected to a term ending on the first day in
the month of December of the third following year.
(f) Beginning December 1, 2001, and every 3 years
thereafter, if a Forest Preserve District Employees' Annuity
and Benefit Fund is in force in the county and the board of
this Fund is charged with administering the affairs of that
annuity and benefit fund for employees of the forest preserve
district, a forest preserve district annuitant member of the
board shall be elected as follows: the board shall arrange for
and hold an election in which only those participants who are
currently receiving retirement benefits under Article 10 shall
be eligible to vote and be elected. Each such member shall be
elected to a term ending on the first day in the month of
December of the third following year. Until December 1, 2001,
the position created under this subsection (f) may be filled by
the board as in the case of a vacancy.
(Source: P.A. 92-66, eff. 7-12-01.)
(40 ILCS 5/9-189) (from Ch. 108 1/2, par. 9-189)
Sec. 9-189. Board meetings. The board shall hold regular
meetings in each month and special meetings as it deems
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necessary. A majority of the members shall constitute a quorum
for the transaction of business at any meeting, provided that
the retirement fund may not adopt or adjust actuarial
assumptions or discount rates except through the affirmative
vote of no less than 8 members of the retirement board, and
such actions may only occur as the result of an actuarial
experience study conducted by a qualified actuary retained by
the board. No but no annuity or benefit shall be granted or
payments made by the fund unless ordered by a vote of the
majority of the board members as shown by roll call entered
upon the official record of the meeting. Meetings of the board
shall be open to the public.
(Source: Laws 1963, p. 161.)
(40 ILCS 5/9-195) (from Ch. 108 1/2, par. 9-195)
Sec. 9-195. To have an audit.
To have an audit of the accounts of the fund made at least
once each year by certified public accountants. The audit may
include the preparation of the Annual Actuarial Report required
under Section 9-117.2.
(Source: Laws 1963, p. 161.)
(40 ILCS 5/9-199) (from Ch. 108 1/2, par. 9-199)
Sec. 9-199. To submit an annual report. To submit a report
in July of each year to the county board of the county as of the
close of business on December 31st of the preceding year. The
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report shall contain a detailed statement of the affairs of the
fund, its income and expenditures, and assets and liabilities;
and it shall include the Annual Actuarial Report required under
Section 9-117.2. The county board shall have power to require
and compel the retirement board to prepare and submit such
reports.
(Source: P.A. 95-369, eff. 8-23-07.)
(40 ILCS 5/9-201.1 new)
Sec. 9-201.1. To provide administrative services. To
authorize the provision of administrative services, including
the appointment of such actuarial, medical, legal, investment,
clerical, or other professional or administrative services or
resources, as are necessary for the healthcare trust created by
the Cook County Annuitant Healthcare Trust Law, provided that
the healthcare trust shall reimburse the Fund for the costs
associated with such administrative services and resources.
The provision of administrative services under this Section is
not and shall not be construed to be a pension or retirement
benefit for purposes of Section 5 of Article XIII of the
Illinois Constitution.
(40 ILCS 5/9-220) (from Ch. 108 1/2, par. 9-220)
(Text of Section WITHOUT the changes made by P.A. 98-599,
which has been held unconstitutional)
Sec. 9-220. Basis of service credit.
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(a) In computing the period of service of any employee for
annuity purposes under Section 9-133.2 or 9-134, the following
provisions shall govern:
(1) All periods prior to the effective date shall be
computed in accordance with the provisions governing the
computation of such service.
(2) Service on or after the effective date shall
include:
(i) The actual period of time the employee
contributes or has contributed to the fund for service
rendered to age 65 plus the actual period of time after
age 65 for which the employee performs the duties of
his position or performs such duties and is given a
county contribution for age and service annuity or
minimum annuity purposes.
(ii) Leaves of absence from duty, or vacation, for
which an employee receives all or part of his salary.
(iii) Accumulated vacation or other time for which
an employee who retires on or after November 1, 1990
receives a lump sum payment at the time of retirement,
provided that contributions were made to the fund at
the time such lump sum payment was received. The
service granted for the lump sum payment shall not
change the employee's date of withdrawal for computing
the effective date of the annuity.
(iv) Accumulated sick leave as of the date of the
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employee's withdrawal from service, not to exceed a
total of 180 days, provided that the amount of such
accumulated sick leave is certified by the County
Comptroller to the Board and the employee pays an
amount equal to 8.5% (9% for members of the County
Police Department who are eligible to receive an
annuity under Section 9-128.1) of the amount that would
have been paid had such accumulated sick leave been
paid at the employee's final rate of salary; except
that beginning December 1, 2015, these payments shall
instead be calculated at the rate of 10.5% (11.0% for
deputy sheriffs who are eligible to receive an annuity
under Section 9-128.1). Such payment shall be made
within 30 days after the date of withdrawal and prior
to receipt of the first annuity check. The service
credit granted for such accumulated sick leave shall
not change the employee's date of withdrawal for the
purpose of computing the effective date of the annuity.
(v) Periods during which the employee has had
contributions for annuity purposes made for him in
accordance with law while on military leave of absence
during World War II.
(vi) Periods during which the employee receives a
disability benefit under this Article.
(vii) For any person who first becomes a member on
or after January 1, 2011, the actual period of time the
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employee contributes or has contributed to the fund for
service rendered up to the limitation on salary in
subsection (b-5) of Section 1-160 plus the actual
period of time thereafter for which the employee
performs the duties of his position and ceased
contributing due to the salary limitation in
subsection (b-5) of Section 1-160.
(3) The right to have certain periods of time
considered as service as stated in paragraph (2) of Section
9-164 shall not apply for annuity purposes unless the
refunds shall have been repaid in accordance with this
Article.
(4) All service shall be computed in whole calendar
months, and at least 15 days of service in any one calendar
month shall constitute one calendar month of service, and 1
year of service shall be equal to the number of months,
days or hours for which an appropriation was made in the
annual appropriation ordinance for the position held by the
employee.
(b) For all other annuity purposes of this Article the
following schedule shall govern the computation of a year of
service of an employee whose salary or wages is on the basis
stated, and any fractional part of a year of service shall be
determined according to said schedule:
Annual or Monthly Basis: Service during 4 months in any 1
calendar year;
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Weekly Basis: Service during any 17 weeks of any 1 calendar
year, and service during any week shall constitute a week of
service;
Daily Basis: Service during 100 days in any 1 calendar
year, and service during any day shall constitute a day of
service;
Hourly Basis: Service during 800 hours in any 1 calendar
year, and service during any hour shall constitute an hour of
service.
(Source: P.A. 96-1490, eff. 1-1-11.)
(40 ILCS 5/9-239) (from Ch. 108 1/2, par. 9-239)
Sec. 9-239. Optional Group Health Benefit.
(a) For the purposes of this Section, "annuitant" means a
person receiving an age and service annuity, a prior service
annuity, a widow's annuity, a widow's prior service annuity, a
minimum annuity, or a child's annuity on or after January 1,
1990, under Article 9 or 10 by reason of previous employment by
Cook County or the Forest Preserve District of Cook County
(hereinafter, in this Section, "the County").
(b) From Beginning December 1, 1991 through December 31,
2015, the Fund may pay, on behalf of each of the Fund's
annuitants who chooses to participate in any of the county's
health care plans or a group coverage plan administered by the
Fund, all or any portion of the total health care premium
(including coverage for other family members) due from each
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such annuitant.
(c) The difference between the required monthly premiums
for such coverage and the amount paid by the Fund may be
deducted from the annuitant's annuity if the annuitant so
elects; otherwise such coverage shall terminate and the
obligation of the Fund shall also terminate.
(d) Beginning January 1, 2016, the Fund shall not use any
contributions received by the Fund under this Article to
provide a subsidy for the cost of participation in an annuitant
healthcare program provided for under this Section.
Amounts contributed by the county as authorized under
Section 9-182 for the benefits set forth in this Section shall
be credited to the reserve for group hospital care and all such
premiums shall be charged to it.
(e) The group coverage plan and benefits described in this
Section are not and shall not be construed to be pension or
retirement benefits for purposes of Section 5 of Article XIII
of the Illinois Constitution of 1970.
(Source: P.A. 86-1025; 87-794.)
(40 ILCS 5/9-245 new)
Sec. 9-245. Application and expiration of new benefit
increases.
(a) As used in this Section, "new benefit increase" means
an increase in the amount of any benefit provided under this
Article, or an expansion of the conditions of eligibility for
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any benefit under this Article, that results from an amendment
to this Code that takes effect after the effective date of this
amendatory Act of the 99th General Assembly.
(b) Notwithstanding any other provision of this Code or any
subsequent amendment to this Code, every new benefit increase
is subject to this Section and shall be deemed to be granted
only in conformance with and contingent upon compliance with
the provisions of this Section.
(c) The Public Act enacting a new benefit increase must
identify and provide for payment to the Fund of additional
funding at least sufficient to fund the resulting annual
increase in cost to the Fund as it accrues.
Every new benefit increase is contingent upon the General
Assembly providing the additional funding required under this
subsection (c). The State Actuary shall analyze whether
adequate additional funding has been provided for the new
benefit increase. A new benefit increase created by a Public
Act that does not include the additional funding required under
this subsection (c) is null and void. If the State Actuary
determines that the additional funding provided for a new
benefit increase under this subsection (c) is or has become
inadequate, it may so certify to the Governor and the State
Comptroller and, in the absence of corrective action by the
General Assembly, the new benefit increase shall expire at the
end of the fiscal year in which the certification is made.
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(40 ILCS 5/10-103) (from Ch. 108 1/2, par. 10-103)
Sec. 10-103. Members, contributions and benefits;
definitions.
(a) The definitions of Article 9 of this Code are
incorporated into this Article to the extent that they are
appropriate and applicable to this Fund and the District, but
they shall be interpreted with respect to the particular
circumstances, financing, and membership of this Fund rather
than those of the Article 9 Fund.
(b) The board shall cause the same deductions to be made
from salaries and, subject to Section 10-109, allow the same
annuities, refunds and benefits for employees of the district
as are made and allowed for employees of the county.
(c) The provisions and protections of Section 9-169.1 are
specifically declared to apply to this Fund.
(Source: P.A. 95-1036, eff. 2-17-09.)
(40 ILCS 5/10-107) (from Ch. 108 1/2, par. 10-107)
Sec. 10-107. Financing - Tax levy.
(a) The forest preserve district may levy an annual tax on
the value, as equalized or assessed by the Department of
Revenue, of all taxable property in the district for the
purpose of providing revenue for the fund. The rate of such tax
in any year may not exceed the rate herein specified for that
year or the rate which will produce, when extended, the sum
herein stated for that year, whichever is higher: for any year
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prior to 1970, .00103% or $195,000; for the year 1970, .00111%
or $210,000; for the year 1971, .00116% or $220,000. For the
year 1972 and each year thereafter, the Forest Preserve
District shall levy a tax annually at a rate on the dollar of
the value, as equalized or assessed by the Department of
Revenue upon all taxable property in the county, when extended,
not to exceed an amount equal to the total amount of
contributions by the employees to the fund made in the calendar
year 2 years prior to the year for which the annual applicable
tax is levied, multiplied by 1.25 for the year 1972; and by
1.30 for the year 1973 through 2015 and for each year
thereafter.
The tax shall be levied and collected in like manner with
the general taxes of the district and shall be in addition to
the maximum of all other tax rates which the district may levy
upon the aggregate valuation of all taxable property and shall
be exclusive of and in addition to the maximum amount and rate
of taxes the district may levy for general purposes or under
and by virtue of any laws which limit the amount of tax which
the district may levy for general purposes. The county clerk of
the county in which the forest preserve district is located in
reducing tax levies under the provisions of "An Act concerning
the levy and extension of taxes", approved May 9, 1901, as
amended, shall not consider any such tax as a part of the
general tax levy for forest preserve purposes, and shall not
include the same in the limitation of 1% of the assessed
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valuation upon which taxes are required to be extended, and
shall not reduce the same under the provisions of that Act. The
proceeds of the tax herein authorized shall be kept as a
separate fund.
The Board may establish a manpower program reserve, or a
special forest preserve district contribution rate, with
respect to employees whose wages are funded as program
participants under the Comprehensive Employment and Training
Act of 1973 in the manner provided in subsection (d) or (e),
respectively, of Section 9-169.
(a-5) For each of the years 2016, 2017, 2018, and 2019, the
district shall contribute to the Fund, from any permissible
source, an amount that is no less than the amount contributed
by employees in the calendar year 2 years prior multiplied by
1.75, as certified by the Retirement Board.
(a-10) For the year 2020 and each year thereafter, the
district shall contribute to the Fund, from any permissible
source, the greater of (i) an amount that is no less than the
amount contributed by employees in the calendar year 2 years
prior multiplied by 1.75 or (ii) an amount which constitutes
the Minimum Required Employer Contribution for that year, as
certified by the retirement board. For the purposes of this
subsection, "Minimum Required Employer Contribution" shall
have the meaning set forth in Section 9-117.3 of this Code.
(a-15) In lieu of levying all or a portion of real estate
taxes to fully meet the requirement of subsections (a-5) and
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(a-10) in any year, the district may, through its appropriation
bill, disburse to and deposit with the County treasurer no
later than the final day of the fiscal year that corresponds to
said appropriation bill, for the benefit of the Fund, to be
held in accordance with this Article, an amount that, together
with such real estate taxes as are specifically levied under
this Section for that year, is not less than the amount of the
required County contributions for that year as certified by the
retirement board to the district board. The deposit may be
derived from any source legally available for that purpose. The
making of a deposit shall satisfy fully the requirements of
this Section for that year to the extent of the amounts so
deposited.
(a-20) The provisions of subsection (a-15)
notwithstanding, if in any 2 consecutive years the actuarial
value of the Fund's assets exceeds 101% of the Fund's
liabilities, the district's contribution, in the year
following that second consecutive year, shall be equal to the
amount required to maintain a projected funded ratio of 101% in
30 years' time, multiplied by 0.6.
(b) Beginning January 1, 2016, the Fund shall not use any
contributions received by the Fund under this Article to
provide a subsidy for the cost of participation in an annuitant
healthcare program.
(Source: P.A. 81-1509.)
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(40 ILCS 5/9-132 rep.)
Section 3-206. The Illinois Pension Code is amended by
repealing Section 9-132.
Section 3-207. The Counties Code is amended by changing
Section 6-24001 as follows:
(55 ILCS 5/6-24001) (from Ch. 34, par. 6-24001)
Sec. 6-24001. Annual appropriation bill. The board of
commissioners of Cook County shall, within the first quarter of
each fiscal year adopt a resolution, to be termed the annual
appropriation bill, in and by which resolution said board shall
appropriate such sums of money as may be necessary to defray
all necessary expenses and liabilities of said Cook County, to
be by said county paid or incurred during and until the time of
the adoption of the next annual appropriation bill under this
section: Provided, that said board shall not expend any money
or incur any indebtedness or liability on behalf of said county
in excess of the percentage and several amounts now limited by
law, and based on the limit prescribed in the Constitution,
when applied to the last previous assessment. For the year 1931
and each year thereafter, such appropriation bill shall set
forth estimates, by classes, of all current assets and
liabilities of each fund of such county, as of the beginning of
said fiscal year, and the amounts of such assets available for
appropriation in such year, either for expenditures or charges
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to be made or incurred during such year or for liabilities
unpaid at the beginning thereof. Such board by resolution may
create, set apart and maintain an imprest cash fund for monies
which have been advanced by such county for state programs
pursuant to law prior to reimbursement by the state for
expenses incurred by such county. The monies shown as the
balance in such fund in such appropriation bill shall not be
considered to be available for appropriation. Estimates of
taxes to be received from the levies of prior years shall be
net, after deducting amounts estimated to be sufficient to
cover the loss and cost of collecting such taxes and also the
amounts of such taxes for the nonpayment of which real estate
has been or shall be forfeited to the State and abatements in
the amount of such taxes extended or to be extended upon the
collectors' books. Estimates of the liabilities of the
respective funds shall include (a) all final judgments,
including accrued interest thereon, entered against such
county and unpaid at the beginning of such fiscal year, (b) the
principal of all anticipation tax warrants and all temporary
loans and all accrued interest thereon unpaid at the beginning
of such fiscal year, (c) the principal of all notes issued in
anticipation of taxes under the provisions of Division 6-2, and
all accrued interest thereon unpaid at the beginning of such
fiscal year, and (d) any amount for which the board of
commissioners is required to reimburse the working cash fund
from the general corporate fund pursuant to the provisions of
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Division 6-27. Such annual appropriation bill shall also set
forth detailed estimates of all taxes to be levied for such
year and of all other current revenues to be derived from
sources other than such taxes, including any funds authorized
by Division 6-6 and any funds made available under Section
5-701.10 of the "Illinois Highway Code", approved July 8, 1959,
as amended, which will be applicable to expenditure or charges
to be made or incurred during such year. No estimate of taxes
to be levied for general corporate purposes, or for any other
purpose, except for the payment of bonded indebtedness or
interest thereon, and except for pension fund purposes or
working cash fund purposes, shall exceed a sum equivalent to
the product of the value of the taxable property in such
county, as ascertained by the last assessment for state and
county taxes previous to the passage of such annual
appropriation bill, multiplied by the maximum per cent or rate
of tax which such county is authorized by law to levy for said
current fiscal year for any such purpose or purposes with
reference to which such estimate is made. All such estimates
shall be so segregated and classified as to funds and in such
other manner as to give effect to the requirements of law
relating to the respective purposes to which said assets and
taxes and other current revenues are applicable, to the end
that no expenditure shall be authorized or made for any purpose
in excess of funds lawfully available therefor, including any
funds authorized by Division 6-6 and any funds made available
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under Section 5-701.10 of the "Illinois Highway Code," approved
July 8, 1959, as amended.
The appropriation bill shall include, for fiscal year 2016
and every year thereafter, such sums as are required under the
Cook County Annuitant Healthcare Trust Act.
(Source: P.A. 86-962.)
Section 3-208. Operative date. This Act takes effect upon
becoming law.
PART 3.
Section 3-301. References. References in this Part to "this
Act" mean Part 1 or this Part.
Section 3-302. Cook County Pension Reform Option B. If and
only if the County Board of Cook County by resolution adopted
under Section 3-102 of this Act selects the changes made to
Article 9 of the Illinois Pension Code as provided in this Part
and files the notice required in Section 3-103 of this Act,
then the changes described in this Part shall become operative
as provided in this Section 3-304 of this Act.
Section 3-303. The Illinois Pension Code is amended by
adding Section 9-108.3, 9-108.4, 9-112.1, and 9-119.2 and
changing Sections 9-112 and 9-133 as follows:
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(40 ILCS 5/9-108.3 new)
Sec. 9-108.3. Tier 1 employee. "Tier 1 employee": An
employee under this Article who first became a member or
participant in this Article of this Code before January 1,
2011.
(40 ILCS 5/9-108.4 new)
Sec. 9-108.4. Tier 1 retiree. "Tier 1 retiree": A former
Tier 1 employee who is receiving a retirement annuity.
(40 ILCS 5/9-112) (from Ch. 108 1/2, par. 9-112)
Sec. 9-112. Salary. "Salary": Annual salary of an employee
under this Article as follows:
(a) Beginning on the effective date and prior to July 1,
1947 $3000 shall be the maximum amount of annual salary of any
employee to be considered for the purposes of this Article; and
beginning on July 1, 1947 and prior to July 1, 1953, said
maximum amount shall be $4800; and beginning on July 1, 1953
and prior to July 1, 1957 said maximum amount shall be $6,000;
and beginning on July 1, 1957, salary shall be based upon the
actual sum paid and reported to the Fund, exclusive of overtime
and extra service.
(b) (Blank).
(c) Where the county provides lodging, board and laundry
service for an employee without charge and so reports to the
Fund while the employee is receiving such lodging, board and
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laundry service, his salary shall be considered to be $480 a
year more for the period from the effective date to August 1,
1959 and thereafter $960 more than the amount payable as salary
for the year, and the salary of an employee for whom one or
more daily meals are provided by the county without charge
therefor and are reported by the county to the Fund while the
employee is receiving such meals shall be considered to be $120
a year more for each such daily meal for the period from the
effective date to August 1, 1959 and thereafter $240 more for
each such daily meal than the amount payable as his salary for
the year.
(d) For the purposes of ordinary disability, salary shall
be based upon the rate reported to the Fund at the date of
disability and adjusted to reflect the actual hours paid during
the prior year.
(e) Notwithstanding any other provision of this Article,
"salary" does not include any future increase in income offered
by the county under this Article pursuant to the requirements
of subsection (c) of Section 9-119.2 that is accepted by a Tier
1 employee, or a Tier 1 retiree returning to active service,
who has made the election under paragraph (2) of subsection (a)
of Section 9-119.2.
(Source: P.A. 98-551, eff. 8-27-13.)
(40 ILCS 5/9-112.1 new)
Sec. 9-112.1. Future increase in income. "Future increase
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in income": Any increase in income in any form offered by the
county to an employee under this Article after June 30, 2015
that would qualify as "salary" but for the fact that the county
offered the increase in income to the employee on the condition
that it not qualify as "salary" under this Article and the
employee accepted the increase in income subject to that
condition. The term "future increase in income" does not
include an increase in income in any form that is paid to a
Tier 1 employee under an employment contract or collective
bargaining agreement that is in effect on the effective date of
this Section but does include an increase in income in any form
pursuant to an extension, amendment, or renewal of any such
employment contract or collective bargaining agreement on or
after the effective date of this amendatory Act of the 99th
General Assembly.
(40 ILCS 5/9-119.2 new)
Sec. 9-119.2. Election by Tier 1 employees.
(a) Each Tier 1 employee shall make an irrevocable election
either:
(1) to agree to have the amount of the automatic annual
increases in his or her retirement annuity that are
otherwise provided for in this Article calculated,
instead, as provided in subsection (e) of Section 1-160; or
(2) to not agree to paragraph (1) of this subsection.
The election required under this subsection (a) shall be
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made by each Tier 1 employee no earlier than 60 days after the
effective date of this Section and no later than 150 days after
the effective date of this Section, except that a person who
returns to active service as a Tier 1 employee under this
Article on or after 150 days after the effective date of this
Section and has not yet made an election under this Section
must make the election under this subsection (a) within 30 days
after returning to active service as a Tier 1 employee.
If a Tier 1 employee fails for any reason to make a
required election under this subsection within the time
specified, then the employee shall be deemed to have made the
election under paragraph (2) of this subsection.
(a-10) All elections under subsection (a) that are made or
deemed to be made before 150 days after the effective date of
this Section shall take effect 180 days after the effective
date of this Section. Elections that are made or deemed to be
made on or after 150 days after the effective date of this
Section shall take effect on the first day of the month
following the month in which the election is made or deemed to
be made.
(b) As adequate and legal consideration provided under this
amendatory Act of the 99th General Assembly for making an
election under paragraph (1) of subsection (a) of this Section,
any future increase in income offered by the county under this
Article to a Tier 1 employee who has made an election under
paragraph (1) of subsection (a) of this Section shall be
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offered expressly and irrevocably as constituting "salary" for
purposes of this Article.
(c) A Tier 1 employee who has made the election under
paragraph (2) of subsection (a) of this Section shall not be
subject to paragraph (1) of subsection (a) of this Section.
However, any future increases in income offered by the county
under this Article to a Tier 1 employee who has made the
election under paragraph (2) of subsection (a) of this Section
shall be offered by the county expressly and irrevocably as not
constituting "salary" for purposes of this Article, and the
employee may not accept any future increase in income that is
offered in violation of this requirement.
(d) The Fund shall make a good faith effort to contact each
Tier 1 employee subject to this Section. The Fund shall mail
information describing the required election to each Tier 1
employee by United States Postal Service mail to his or her
last known address on file with the Fund. If the Tier 1
employee is not responsive to other means of contact, it is
sufficient for the Fund to publish the details of any required
elections on its website or to publish those details in a
regularly published newsletter or other existing public forum.
Tier 1 employees who are subject to this Section shall be
provided with an election packet containing information
regarding their options, as well as the forms necessary to make
the required election. Upon request, the Fund shall offer Tier
1 employees an opportunity to receive information from the Fund
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before making the required election. The information may
consist of video materials, group presentations, individual
consultation with a member or authorized representative of the
Fund in person or by telephone or other electronic means, or
any combination of those methods. The Fund shall not provide
advice or counseling with respect to which election a Tier 1
employee should make or specific to the legal or tax
circumstances of or consequences to the Tier 1 employee.
The Fund shall inform Tier 1 employees in the election
packet required under this subsection that the Tier 1 employee
may also wish to obtain information and legal counsel relating
to the election required under this Section from any other
available source, including, but not limited to, labor
organizations and employee-chosen legal counsel.
In no event shall the Fund, its staff, or the Board be held
liable for any information given to a member, beneficiary, or
annuitant regarding the elections under this Section. The Fund
shall coordinate with the Illinois Department of Central
Management Services and each other retirement system
administering an election in accordance with this amendatory
Act of the 99th General Assembly to provide information
concerning the impact of the election set forth in this
Section.
(e) Notwithstanding any other provision of law, the county
under this Article is required to offer any future increases in
income expressly and irrevocably as not constituting "salary"
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for purposes of this Article to any Tier 1 employee, or Tier 1
retiree returning to active service, who has made an election
under paragraph (2) of subsection (a) of Section 9-119.2. A
Tier 1 employee, or Tier 1 retiree returning to active service,
who has made an election under paragraph (2) of subsection (a)
of Section 9-119.2 shall not accept any future increase in
income that is offered by the county under this Article in
violation of the requirement set forth in this subsection.
(f) A member's election under this Section is not a
prohibited election under subdivision (j)(1) of Section 1-119
of this Code.
(g) No provision of this Section shall be interpreted in a
way that would cause the Fund to cease to be a qualified plan
under Section 401(a) of the Internal Revenue Code of 1986.
(40 ILCS 5/9-133) (from Ch. 108 1/2, par. 9-133)
Sec. 9-133. Automatic increase in annuity.
(a) An employee who retired or retires from service after
December 31, 1959, having attained age 60 or more or, beginning
January 1, 1991, having attained 30 or more years of creditable
service, shall, in the month of January of the year following
the year in which the first anniversary of retirement occurs,
have his then fixed and payable monthly annuity increased by 1
1/2%, and such first fixed annuity as granted at retirement
increased by a further 1 1/2% in January of each year
thereafter. Beginning with January of the year 1972, such
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increases shall be at the rate of 2% in lieu of the aforesaid
specified 1 1/2%. Beginning with January of the year 1982, such
increases shall be at the rate of 3% in lieu of the aforesaid
specified 2%. Except as otherwise provided in subsection (c),
if applicable, beginning Beginning January 1, 1998, these
increases shall be at the rate of 3% of the current amount of
the annuity, including any previous increases received under
this Article, without regard to whether the annuitant is in
service on or after the effective date of this amendatory Act
of 1997.
An employee who retires on annuity before age 60 and,
beginning January 1, 1991, with less than 30 years of
creditable service shall receive such increases beginning with
January of the year immediately following the year in which he
attains the age of 60 years. An employee who retires on annuity
before age 60 and before January 1, 1991, with at least 30
years of creditable service, shall be entitled to receive the
first increase under this subsection no later than January 1,
1993.
For an employee who, in accordance with the provisions of
Section 9-108.1 of this Act, shall have become a member of the
State System established under Article 14 on February 1, 1974,
the first such automatic increase shall begin in January of
1975.
(b) Subsection (a) is not applicable to an employee
retiring and receiving a term annuity, as defined in this Act,
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nor to any otherwise qualified employee who retires before he
makes employee contributions (at the 1/2 of 1% rate as provided
in this Section) for this additional annuity for not less than
the equivalent of one full year. Such employee, however, shall
make arrangement to pay to the fund a balance of such
contributions, based on his final salary, as will bring such
1/2 of 1% contributions, computed without interest, to the
equivalent of one year's contributions.
Beginning with the month of January, 1960, each employee
shall contribute by means of salary deductions 1/2 of 1% of
each salary payment, concurrently with and in addition to the
employee contributions otherwise provided for annuity
purposes.
Each such additional contribution shall be used, together
with county contributions, to defray the cost of the specified
annuity increments.
Such additional employee contributions are not refundable,
except to an employee who withdraws and applies for refund
under this Article, or applies for annuity, and also in cases
where a term annuity becomes payable. In such cases his
contributions shall be refunded, without interest.
(c) Notwithstanding any other provision of this Article,
for a Tier 1 employee who made the election under paragraph (1)
of subsection (a) of Section 9-119.2, the amount of each
automatic annual increase in pension occurring on or after the
effective date of that election, other than the initial
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increase, shall be calculated as provided in subsection (e) of
Section 1-160.
(Source: P.A. 95-369, eff. 8-23-07.)
Section 3-304. Operative date. This Part becomes operative
only upon filing of a resolution in accordance with Section
3-103 of this Act indicating that the County Board has selected
the option described in item (2) of Section 3-102.
ARTICLE 90
AMENDATORY PROVISIONS
Section 90-5. The Illinois Public Labor Relations Act is
amended by changing Sections 2, 3, 4, 7, 10, 15, and 19 and
adding Section 7.6 as follows:
(5 ILCS 315/2) (from Ch. 48, par. 1602)
Sec. 2. Policy. It is the public policy of the State of
Illinois to grant public employees full freedom of association,
self-organization, and designation of representatives of their
own choosing for the purpose of negotiating terms and wages,
hours and other conditions of employment or other mutual aid or
protection.
It is the purpose of this Act to regulate labor relations
between public employers and employees, including the
designation of employee representatives, negotiation of terms
and wages, hours and other conditions of employment, and
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resolution of disputes arising under collective bargaining
agreements.
It is the purpose of this Act to prescribe the legitimate
rights of both public employees and public employers, to
protect the public health and safety of the citizens of
Illinois, and to provide peaceful and orderly procedures for
protection of the rights of all. To prevent labor strife and to
protect the public health and safety of the citizens of
Illinois, all collective bargaining disputes involving persons
designated by the Board as performing essential services and
those persons defined herein as security employees shall be
submitted to impartial arbitrators, who shall be authorized to
issue awards in order to resolve such disputes. It is the
public policy of the State of Illinois that where the right of
employees to strike is prohibited by law, it is necessary to
afford an alternate, expeditious, equitable and effective
procedure for the resolution of labor disputes subject to
approval procedures mandated by this Act. To that end, the
provisions for such awards shall be liberally construed.
(Source: P.A. 83-1012.)
(5 ILCS 315/3) (from Ch. 48, par. 1603)
Sec. 3. Definitions. As used in this Act, unless the
context otherwise requires:
(a) "Board" means the Illinois Labor Relations Board or,
with respect to a matter over which the jurisdiction of the
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Board is assigned to the State Panel or the Local Panel under
Section 5, the panel having jurisdiction over the matter.
(b) "Collective bargaining" means bargaining over terms
and conditions of employment, including terms hours, wages, and
other conditions of employment, as detailed in Section 7, which
are permitted by this Act and which are not excluded by Section
4 and Section 7.6.
(c) "Confidential employee" means an employee who, in the
regular course of his or her duties, assists and acts in a
confidential capacity to persons who formulate, determine, and
effectuate management policies with regard to labor relations
or who, in the regular course of his or her duties, has
authorized access to information relating to the effectuation
or review of the employer's collective bargaining policies.
(d) "Craft employees" means skilled journeymen, crafts
persons, and their apprentices and helpers.
(e) "Essential services employees" means those public
employees performing functions so essential that the
interruption or termination of the function will constitute a
clear and present danger to the health and safety of the
persons in the affected community.
(f) "Exclusive representative", except with respect to
non-State fire fighters and paramedics employed by fire
departments and fire protection districts, non-State peace
officers, and peace officers in the Department of State Police,
means the labor organization that has been (i) designated by
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the Board as the representative of a majority of public
employees in an appropriate bargaining unit in accordance with
the procedures contained in this Act, (ii) historically
recognized by the State of Illinois or any political
subdivision of the State before July 1, 1984 (the effective
date of this Act) as the exclusive representative of the
employees in an appropriate bargaining unit, (iii) after July
1, 1984 (the effective date of this Act) recognized by an
employer upon evidence, acceptable to the Board, that the labor
organization has been designated as the exclusive
representative by a majority of the employees in an appropriate
bargaining unit; (iv) recognized as the exclusive
representative of personal assistants under Executive Order
2003-8 prior to the effective date of this amendatory Act of
the 93rd General Assembly, and the organization shall be
considered to be the exclusive representative of the personal
assistants as defined in this Section; or (v) recognized as the
exclusive representative of child and day care home providers,
including licensed and license exempt providers, pursuant to an
election held under Executive Order 2005-1 prior to the
effective date of this amendatory Act of the 94th General
Assembly, and the organization shall be considered to be the
exclusive representative of the child and day care home
providers as defined in this Section.
With respect to non-State fire fighters and paramedics
employed by fire departments and fire protection districts,
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non-State peace officers, and peace officers in the Department
of State Police, "exclusive representative" means the labor
organization that has been (i) designated by the Board as the
representative of a majority of peace officers or fire fighters
in an appropriate bargaining unit in accordance with the
procedures contained in this Act, (ii) historically recognized
by the State of Illinois or any political subdivision of the
State before January 1, 1986 (the effective date of this
amendatory Act of 1985) as the exclusive representative by a
majority of the peace officers or fire fighters in an
appropriate bargaining unit, or (iii) after January 1, 1986
(the effective date of this amendatory Act of 1985) recognized
by an employer upon evidence, acceptable to the Board, that the
labor organization has been designated as the exclusive
representative by a majority of the peace officers or fire
fighters in an appropriate bargaining unit.
Where a historical pattern of representation exists for the
workers of a water system that was owned by a public utility,
as defined in Section 3-105 of the Public Utilities Act, prior
to becoming certified employees of a municipality or
municipalities once the municipality or municipalities have
acquired the water system as authorized in Section 11-124-5 of
the Illinois Municipal Code, the Board shall find the labor
organization that has historically represented the workers to
be the exclusive representative under this Act, and shall find
the unit represented by the exclusive representative to be the
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appropriate unit.
(g) "Fair share agreement" means an agreement between the
employer and an employee organization under which all or any of
the employees in a collective bargaining unit are required to
pay their proportionate share of the costs of the collective
bargaining process, contract administration, and pursuing
matters affecting wages, hours, and other conditions of
employment, but not to exceed the amount of dues uniformly
required of members. The amount certified by the exclusive
representative shall not include any fees for contributions
related to the election or support of any candidate for
political office. Nothing in this subsection (g) shall preclude
an employee from making voluntary political contributions in
conjunction with his or her fair share payment.
(g-1) "Fire fighter" means, for the purposes of this Act
only, any person who has been or is hereafter appointed to a
fire department or fire protection district or employed by a
state university and sworn or commissioned to perform fire
fighter duties or paramedic duties, except that the following
persons are not included: part-time fire fighters, auxiliary,
reserve or voluntary fire fighters, including paid on-call fire
fighters, clerks and dispatchers or other civilian employees of
a fire department or fire protection district who are not
routinely expected to perform fire fighter duties, or elected
officials.
(g-2) "General Assembly of the State of Illinois" means the
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legislative branch of the government of the State of Illinois,
as provided for under Article IV of the Constitution of the
State of Illinois, and includes but is not limited to the House
of Representatives, the Senate, the Speaker of the House of
Representatives, the Minority Leader of the House of
Representatives, the President of the Senate, the Minority
Leader of the Senate, the Joint Committee on Legislative
Support Services and any legislative support services agency
listed in the Legislative Commission Reorganization Act of
1984.
(h) "Governing body" means, in the case of the State, the
State Panel of the Illinois Labor Relations Board, the Director
of the Department of Central Management Services, and the
Director of the Department of Labor; the county board in the
case of a county; the corporate authorities in the case of a
municipality; and the appropriate body authorized to provide
for expenditures of its funds in the case of any other unit of
government.
(i) "Labor organization" means any organization in which
public employees participate and that exists for the purpose,
in whole or in part, of dealing with a public employer
concerning wages, hours, and other terms and conditions of
employment as permitted in this Act, including the settlement
of grievances.
(i-5) "Legislative liaison" means a person who is an
employee of a State agency, the Attorney General, the Secretary
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of State, the Comptroller, or the Treasurer, as the case may
be, and whose job duties require the person to regularly
communicate in the course of his or her employment with any
official or staff of the General Assembly of the State of
Illinois for the purpose of influencing any legislative action.
(j) "Managerial employee" means an individual who is
engaged predominantly in executive and management functions
and is charged with the responsibility of directing the
effectuation of management policies and practices. With
respect only to State employees in positions under the
jurisdiction of the Attorney General, Secretary of State,
Comptroller, or Treasurer (i) that were certified in a
bargaining unit on or after December 2, 2008, (ii) for which a
petition is filed with the Illinois Public Labor Relations
Board on or after April 5, 2013 (the effective date of Public
Act 97-1172), or (iii) for which a petition is pending before
the Illinois Public Labor Relations Board on that date,
"managerial employee" means an individual who is engaged in
executive and management functions or who is charged with the
effectuation of management policies and practices or who
represents management interests by taking or recommending
discretionary actions that effectively control or implement
policy. Nothing in this definition prohibits an individual from
also meeting the definition of "supervisor" under subsection
(r) of this Section.
(k) "Peace officer" means, for the purposes of this Act
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only, any persons who have been or are hereafter appointed to a
police force, department, or agency and sworn or commissioned
to perform police duties, except that the following persons are
not included: part-time police officers, special police
officers, auxiliary police as defined by Section 3.1-30-20 of
the Illinois Municipal Code, night watchmen, "merchant
police", court security officers as defined by Section 3-6012.1
of the Counties Code, temporary employees, traffic guards or
wardens, civilian parking meter and parking facilities
personnel or other individuals specially appointed to aid or
direct traffic at or near schools or public functions or to aid
in civil defense or disaster, parking enforcement employees who
are not commissioned as peace officers and who are not armed
and who are not routinely expected to effect arrests, parking
lot attendants, clerks and dispatchers or other civilian
employees of a police department who are not routinely expected
to effect arrests, or elected officials.
(l) "Person" includes one or more individuals, labor
organizations, public employees, associations, corporations,
legal representatives, trustees, trustees in bankruptcy,
receivers, or the State of Illinois or any political
subdivision of the State or governing body, but does not
include the General Assembly of the State of Illinois or any
individual employed by the General Assembly of the State of
Illinois.
(m) "Professional employee" means any employee engaged in
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work predominantly intellectual and varied in character rather
than routine mental, manual, mechanical or physical work;
involving the consistent exercise of discretion and adjustment
in its performance; of such a character that the output
produced or the result accomplished cannot be standardized in
relation to a given period of time; and requiring advanced
knowledge in a field of science or learning customarily
acquired by a prolonged course of specialized intellectual
instruction and study in an institution of higher learning or a
hospital, as distinguished from a general academic education or
from apprenticeship or from training in the performance of
routine mental, manual, or physical processes; or any employee
who has completed the courses of specialized intellectual
instruction and study prescribed in this subsection (m) and is
performing related work under the supervision of a professional
person to qualify to become a professional employee as defined
in this subsection (m).
(n) "Public employee" or "employee", for the purposes of
this Act, means any individual employed by a public employer,
including (i) interns and residents at public hospitals, (ii)
as of the effective date of this amendatory Act of the 93rd
General Assembly, but not before, personal assistants working
under the Home Services Program under Section 3 of the Disabled
Persons Rehabilitation Act, subject to the limitations set
forth in this Act and in the Disabled Persons Rehabilitation
Act, (iii) as of the effective date of this amendatory Act of
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the 94th General Assembly, but not before, child and day care
home providers participating in the child care assistance
program under Section 9A-11 of the Illinois Public Aid Code,
subject to the limitations set forth in this Act and in Section
9A-11 of the Illinois Public Aid Code, (iv) as of January 29,
2013 (the effective date of Public Act 97-1158), but not before
except as otherwise provided in this subsection (n), home care
and home health workers who function as personal assistants and
individual maintenance home health workers and who also work
under the Home Services Program under Section 3 of the Disabled
Persons Rehabilitation Act, no matter whether the State
provides those services through direct fee-for-service
arrangements, with the assistance of a managed care
organization or other intermediary, or otherwise, (v)
beginning on the effective date of this amendatory Act of the
98th General Assembly and notwithstanding any other provision
of this Act, any person employed by a public employer and who
is classified as or who holds the employment title of Chief
Stationary Engineer, Assistant Chief Stationary Engineer,
Sewage Plant Operator, Water Plant Operator, Stationary
Engineer, Plant Operating Engineer, and any other employee who
holds the position of: Civil Engineer V, Civil Engineer VI,
Civil Engineer VII, Technical Manager I, Technical Manager II,
Technical Manager III, Technical Manager IV, Technical Manager
V, Technical Manager VI, Realty Specialist III, Realty
Specialist IV, Realty Specialist V, Technical Advisor I,
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Technical Advisor II, Technical Advisor III, Technical Advisor
IV, or Technical Advisor V employed by the Department of
Transportation who is in a position which is certified in a
bargaining unit on or before the effective date of this
amendatory Act of the 98th General Assembly, and (vi) beginning
on the effective date of this amendatory Act of the 98th
General Assembly and notwithstanding any other provision of
this Act, any mental health administrator in the Department of
Corrections who is classified as or who holds the position of
Public Service Administrator (Option 8K), any employee of the
Office of the Inspector General in the Department of Human
Services who is classified as or who holds the position of
Public Service Administrator (Option 7), any Deputy of
Intelligence in the Department of Corrections who is classified
as or who holds the position of Public Service Administrator
(Option 7), and any employee of the Department of State Police
who handles issues concerning the Illinois State Police Sex
Offender Registry and who is classified as or holds the
position of Public Service Administrator (Option 7), but
excluding all of the following: employees of the General
Assembly of the State of Illinois; elected officials; executive
heads of a department; members of boards or commissions; the
Executive Inspectors General; any special Executive Inspectors
General; employees of each Office of an Executive Inspector
General; commissioners and employees of the Executive Ethics
Commission; the Auditor General's Inspector General; employees
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of the Office of the Auditor General's Inspector General; the
Legislative Inspector General; any special Legislative
Inspectors General; employees of the Office of the Legislative
Inspector General; commissioners and employees of the
Legislative Ethics Commission; employees of any agency, board
or commission created by this Act; employees appointed to State
positions of a temporary or emergency nature; all employees of
school districts and higher education institutions except
firefighters and peace officers employed by a state university
and except peace officers employed by a school district in its
own police department in existence on the effective date of
this amendatory Act of the 96th General Assembly; managerial
employees; short-term employees; legislative liaisons; a
person who is a State employee under the jurisdiction of the
Office of the Attorney General who is licensed to practice law
or whose position authorizes, either directly or indirectly,
meaningful input into government decision-making on issues
where there is room for principled disagreement on goals or
their implementation; a person who is a State employee under
the jurisdiction of the Office of the Comptroller who holds the
position of Public Service Administrator or whose position is
otherwise exempt under the Comptroller Merit Employment Code; a
person who is a State employee under the jurisdiction of the
Secretary of State who holds the position classification of
Executive I or higher, whose position authorizes, either
directly or indirectly, meaningful input into government
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decision-making on issues where there is room for principled
disagreement on goals or their implementation, or who is
otherwise exempt under the Secretary of State Merit Employment
Code; employees in the Office of the Secretary of State who are
completely exempt from jurisdiction B of the Secretary of State
Merit Employment Code and who are in Rutan-exempt positions on
or after April 5, 2013 (the effective date of Public Act
97-1172); a person who is a State employee under the
jurisdiction of the Treasurer who holds a position that is
exempt from the State Treasurer Employment Code; any employee
of a State agency who (i) holds the title or position of, or
exercises substantially similar duties as a legislative
liaison, Agency General Counsel, Agency Chief of Staff, Agency
Executive Director, Agency Deputy Director, Agency Chief
Fiscal Officer, Agency Human Resources Director, Public
Information Officer, or Chief Information Officer and (ii) was
neither included in a bargaining unit nor subject to an active
petition for certification in a bargaining unit; any employee
of a State agency who (i) is in a position that is
Rutan-exempt, as designated by the employer, and completely
exempt from jurisdiction B of the Personnel Code and (ii) was
neither included in a bargaining unit nor subject to an active
petition for certification in a bargaining unit; any term
appointed employee of a State agency pursuant to Section 8b.18
or 8b.19 of the Personnel Code who was neither included in a
bargaining unit nor subject to an active petition for
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certification in a bargaining unit; any employment position
properly designated pursuant to Section 6.1 of this Act;
confidential employees; independent contractors; and
supervisors except as provided in this Act.
Home care and home health workers who function as personal
assistants and individual maintenance home health workers and
who also work under the Home Services Program under Section 3
of the Disabled Persons Rehabilitation Act shall not be
considered public employees for any purposes not specifically
provided for in Public Act 93-204 or Public Act 97-1158,
including but not limited to, purposes of vicarious liability
in tort and purposes of statutory retirement or health
insurance benefits. Home care and home health workers who
function as personal assistants and individual maintenance
home health workers and who also work under the Home Services
Program under Section 3 of the Disabled Persons Rehabilitation
Act shall not be covered by the State Employees Group Insurance
Act of 1971 (5 ILCS 375/).
Child and day care home providers shall not be considered
public employees for any purposes not specifically provided for
in this amendatory Act of the 94th General Assembly, including
but not limited to, purposes of vicarious liability in tort and
purposes of statutory retirement or health insurance benefits.
Child and day care home providers shall not be covered by the
State Employees Group Insurance Act of 1971.
Notwithstanding Section 9, subsection (c), or any other
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provisions of this Act, all peace officers above the rank of
captain in municipalities with more than 1,000,000 inhabitants
shall be excluded from this Act.
(o) Except as otherwise in subsection (o-5), "public
employer" or "employer" means the State of Illinois; any
political subdivision of the State, unit of local government or
school district; authorities including departments, divisions,
bureaus, boards, commissions, or other agencies of the
foregoing entities; and any person acting within the scope of
his or her authority, express or implied, on behalf of those
entities in dealing with its employees. As of the effective
date of the amendatory Act of the 93rd General Assembly, but
not before, the State of Illinois shall be considered the
employer of the personal assistants working under the Home
Services Program under Section 3 of the Disabled Persons
Rehabilitation Act, subject to the limitations set forth in
this Act and in the Disabled Persons Rehabilitation Act. As of
January 29, 2013 (the effective date of Public Act 97-1158),
but not before except as otherwise provided in this subsection
(o), the State shall be considered the employer of home care
and home health workers who function as personal assistants and
individual maintenance home health workers and who also work
under the Home Services Program under Section 3 of the Disabled
Persons Rehabilitation Act, no matter whether the State
provides those services through direct fee-for-service
arrangements, with the assistance of a managed care
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organization or other intermediary, or otherwise, but subject
to the limitations set forth in this Act and the Disabled
Persons Rehabilitation Act. The State shall not be considered
to be the employer of home care and home health workers who
function as personal assistants and individual maintenance
home health workers and who also work under the Home Services
Program under Section 3 of the Disabled Persons Rehabilitation
Act, for any purposes not specifically provided for in Public
Act 93-204 or Public Act 97-1158, including but not limited to,
purposes of vicarious liability in tort and purposes of
statutory retirement or health insurance benefits. Home care
and home health workers who function as personal assistants and
individual maintenance home health workers and who also work
under the Home Services Program under Section 3 of the Disabled
Persons Rehabilitation Act shall not be covered by the State
Employees Group Insurance Act of 1971 (5 ILCS 375/). As of the
effective date of this amendatory Act of the 94th General
Assembly but not before, the State of Illinois shall be
considered the employer of the day and child care home
providers participating in the child care assistance program
under Section 9A-11 of the Illinois Public Aid Code, subject to
the limitations set forth in this Act and in Section 9A-11 of
the Illinois Public Aid Code. The State shall not be considered
to be the employer of child and day care home providers for any
purposes not specifically provided for in this amendatory Act
of the 94th General Assembly, including but not limited to,
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purposes of vicarious liability in tort and purposes of
statutory retirement or health insurance benefits. Child and
day care home providers shall not be covered by the State
Employees Group Insurance Act of 1971.
"Public employer" or "employer" as used in this Act,
however, does not mean and shall not include the General
Assembly of the State of Illinois, the Executive Ethics
Commission, the Offices of the Executive Inspectors General,
the Legislative Ethics Commission, the Office of the
Legislative Inspector General, the Office of the Auditor
General's Inspector General, the Office of the Governor, the
Governor's Office of Management and Budget, the Illinois
Finance Authority, the Office of the Lieutenant Governor, the
State Board of Elections, and educational employers or
employers as defined in the Illinois Educational Labor
Relations Act, except with respect to a state university in its
employment of firefighters and peace officers and except with
respect to a school district in the employment of peace
officers in its own police department in existence on the
effective date of this amendatory Act of the 96th General
Assembly. County boards and county sheriffs shall be designated
as joint or co-employers of county peace officers appointed
under the authority of a county sheriff. Nothing in this
subsection (o) shall be construed to prevent the State Panel or
the Local Panel from determining that employers are joint or
co-employers.
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(o-5) With respect to wages, fringe benefits, hours,
holidays, vacations, proficiency examinations, sick leave, and
other conditions of employment, the public employer of public
employees who are court reporters, as defined in the Court
Reporters Act, shall be determined as follows:
(1) For court reporters employed by the Cook County
Judicial Circuit, the chief judge of the Cook County
Circuit Court is the public employer and employer
representative.
(2) For court reporters employed by the 12th, 18th,
19th, and, on and after December 4, 2006, the 22nd judicial
circuits, a group consisting of the chief judges of those
circuits, acting jointly by majority vote, is the public
employer and employer representative.
(3) For court reporters employed by all other judicial
circuits, a group consisting of the chief judges of those
circuits, acting jointly by majority vote, is the public
employer and employer representative.
(p) "Security employee" means an employee who is
responsible for the supervision and control of inmates at
correctional facilities. The term also includes other
non-security employees in bargaining units having the majority
of employees being responsible for the supervision and control
of inmates at correctional facilities.
(q) "Short-term employee" means an employee who is employed
for less than 2 consecutive calendar quarters during a calendar
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year and who does not have a reasonable assurance that he or
she will be rehired by the same employer for the same service
in a subsequent calendar year.
(q-5) "State agency" means an agency directly responsible
to the Governor, as defined in Section 3.1 of the Executive
Reorganization Implementation Act, and the Illinois Commerce
Commission, the Illinois Workers' Compensation Commission, the
Civil Service Commission, the Pollution Control Board, the
Illinois Racing Board, and the Department of State Police Merit
Board.
(r) "Supervisor" is:
(1) An employee whose principal work is substantially
different from that of his or her subordinates and who has
authority, in the interest of the employer, to hire,
transfer, suspend, lay off, recall, promote, discharge,
direct, reward, or discipline employees, to adjust their
grievances, or to effectively recommend any of those
actions, if the exercise of that authority is not of a
merely routine or clerical nature, but requires the
consistent use of independent judgment. Except with
respect to police employment, the term "supervisor"
includes only those individuals who devote a preponderance
of their employment time to exercising that authority,
State supervisors notwithstanding. Nothing in this
definition prohibits an individual from also meeting the
definition of "managerial employee" under subsection (j)
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of this Section. In addition, in determining supervisory
status in police employment, rank shall not be
determinative. The Board shall consider, as evidence of
bargaining unit inclusion or exclusion, the common law
enforcement policies and relationships between police
officer ranks and certification under applicable civil
service law, ordinances, personnel codes, or Division 2.1
of Article 10 of the Illinois Municipal Code, but these
factors shall not be the sole or predominant factors
considered by the Board in determining police supervisory
status.
Notwithstanding the provisions of the preceding
paragraph, in determining supervisory status in fire
fighter employment, no fire fighter shall be excluded as a
supervisor who has established representation rights under
Section 9 of this Act. Further, in new fire fighter units,
employees shall consist of fire fighters of the rank of
company officer and below. If a company officer otherwise
qualifies as a supervisor under the preceding paragraph,
however, he or she shall not be included in the fire
fighter unit. If there is no rank between that of chief and
the highest company officer, the employer may designate a
position on each shift as a Shift Commander, and the
persons occupying those positions shall be supervisors.
All other ranks above that of company officer shall be
supervisors.
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(2) With respect only to State employees in positions
under the jurisdiction of the Attorney General, Secretary
of State, Comptroller, or Treasurer (i) that were certified
in a bargaining unit on or after December 2, 2008, (ii) for
which a petition is filed with the Illinois Public Labor
Relations Board on or after April 5, 2013 (the effective
date of Public Act 97-1172), or (iii) for which a petition
is pending before the Illinois Public Labor Relations Board
on that date, an employee who qualifies as a supervisor
under (A) Section 152 of the National Labor Relations Act
and (B) orders of the National Labor Relations Board
interpreting that provision or decisions of courts
reviewing decisions of the National Labor Relations Board.
(s)(1) "Unit" means a class of jobs or positions that are
held by employees whose collective interests may suitably be
represented by a labor organization for collective bargaining.
Except with respect to non-State fire fighters and paramedics
employed by fire departments and fire protection districts,
non-State peace officers, and peace officers in the Department
of State Police, a bargaining unit determined by the Board
shall not include both employees and supervisors, or
supervisors only, except as provided in paragraph (2) of this
subsection (s) and except for bargaining units in existence on
July 1, 1984 (the effective date of this Act). With respect to
non-State fire fighters and paramedics employed by fire
departments and fire protection districts, non-State peace
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officers, and peace officers in the Department of State Police,
a bargaining unit determined by the Board shall not include
both supervisors and nonsupervisors, or supervisors only,
except as provided in paragraph (2) of this subsection (s) and
except for bargaining units in existence on January 1, 1986
(the effective date of this amendatory Act of 1985). A
bargaining unit determined by the Board to contain peace
officers shall contain no employees other than peace officers
unless otherwise agreed to by the employer and the labor
organization or labor organizations involved. Notwithstanding
any other provision of this Act, a bargaining unit, including a
historical bargaining unit, containing sworn peace officers of
the Department of Natural Resources (formerly designated the
Department of Conservation) shall contain no employees other
than such sworn peace officers upon the effective date of this
amendatory Act of 1990 or upon the expiration date of any
collective bargaining agreement in effect upon the effective
date of this amendatory Act of 1990 covering both such sworn
peace officers and other employees.
(2) Notwithstanding the exclusion of supervisors from
bargaining units as provided in paragraph (1) of this
subsection (s), a public employer may agree to permit its
supervisory employees to form bargaining units and may bargain
with those units. This Act shall apply if the public employer
chooses to bargain under this subsection.
(3) Public employees who are court reporters, as defined in
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the Court Reporters Act, shall be divided into 3 units for
collective bargaining purposes. One unit shall be court
reporters employed by the Cook County Judicial Circuit; one
unit shall be court reporters employed by the 12th, 18th, 19th,
and, on and after December 4, 2006, the 22nd judicial circuits;
and one unit shall be court reporters employed by all other
judicial circuits.
(t) "Active petition for certification in a bargaining
unit" means a petition for certification filed with the Board
under one of the following case numbers: S-RC-11-110;
S-RC-11-098; S-UC-11-080; S-RC-11-086; S-RC-11-074;
S-RC-11-076; S-RC-11-078; S-UC-11-052; S-UC-11-054;
S-RC-11-062; S-RC-11-060; S-RC-11-042; S-RC-11-014;
S-RC-11-016; S-RC-11-020; S-RC-11-030; S-RC-11-004;
S-RC-10-244; S-RC-10-228; S-RC-10-222; S-RC-10-220;
S-RC-10-214; S-RC-10-196; S-RC-10-194; S-RC-10-178;
S-RC-10-176; S-RC-10-162; S-RC-10-156; S-RC-10-088;
S-RC-10-074; S-RC-10-076; S-RC-10-078; S-RC-10-060;
S-RC-10-070; S-RC-10-044; S-RC-10-038; S-RC-10-040;
S-RC-10-042; S-RC-10-018; S-RC-10-024; S-RC-10-004;
S-RC-10-006; S-RC-10-008; S-RC-10-010; S-RC-10-012;
S-RC-09-202; S-RC-09-182; S-RC-09-180; S-RC-09-156;
S-UC-09-196; S-UC-09-182; S-RC-08-130; S-RC-07-110; or
S-RC-07-100.
(Source: P.A. 97-586, eff. 8-26-11; 97-1158, eff. 1-29-13;
97-1172, eff. 4-5-13; 98-100, eff. 7-19-13; 98-1004, eff.
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8-18-14.)
(5 ILCS 315/4) (from Ch. 48, par. 1604)
(Text of Section WITHOUT the changes made by P.A. 98-599,
which has been held unconstitutional)
Sec. 4. Management Rights. Employers shall not be required
to bargain over matters of inherent managerial policy, which
shall include such areas of discretion or policy as the
functions of the employer, standards of services, its overall
budget, the organizational structure and selection of new
employees, examination techniques and direction of employees.
Employers, however, shall be required to bargain collectively
with regard to policy matters directly affecting wages, hours
and terms and conditions of employment as well as the impact
thereon upon request by employee representatives, except as
provided in Section 7.6.
To preserve the rights of employers and exclusive
representatives which have established collective bargaining
relationships or negotiated collective bargaining agreements
prior to the effective date of this Act, employers shall be
required to bargain collectively with regard to any matter
concerning wages, hours or conditions of employment about which
they have bargained for and agreed to in a collective
bargaining agreement prior to the effective date of this Act,
except as provided in Section 7.6.
The chief judge of the judicial circuit that employs a
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public employee who is a court reporter, as defined in the
Court Reporters Act, has the authority to hire, appoint,
promote, evaluate, discipline, and discharge court reporters
within that judicial circuit.
Nothing in this amendatory Act of the 94th General Assembly
shall be construed to intrude upon the judicial functions of
any court. This amendatory Act of the 94th General Assembly
applies only to nonjudicial administrative matters relating to
the collective bargaining rights of court reporters.
(Source: P.A. 94-98, eff. 7-1-05.)
(5 ILCS 315/7) (from Ch. 48, par. 1607)
Sec. 7. Duty to bargain. A public employer and the
exclusive representative have the authority and the duty to
bargain collectively set forth in this Section.
For the purposes of this Act, "to bargain collectively"
means the performance of the mutual obligation of the public
employer or his designated representative and the
representative of the public employees to meet at reasonable
times, including meetings in advance of the budget-making
process, and to negotiate in good faith with respect to terms
wages, hours, and other conditions of employment, as permitted
in this Act and not excluded by Section 4 of this Act, or the
negotiation of an agreement, or any question arising thereunder
and the execution of a written contract incorporating any
agreement reached if requested by either party, but such
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obligation does not compel either party to agree to a proposal
or require the making of a concession.
The duty "to bargain collectively" shall also include an
obligation to negotiate over any matter with respect to wages,
hours and other conditions of employment, not specifically
provided for in any other law or not specifically in violation
of the provisions of any law. If any other law pertains, in
part, to a matter affecting the wages, hours and other
conditions of employment, such other law shall not be construed
as limiting the duty "to bargain collectively" and to enter
into collective bargaining agreements containing clauses which
either supplement, implement, or relate to the effect of such
provisions in other laws.
The duty "to bargain collectively" shall also include
negotiations as to the terms of a collective bargaining
agreement. The parties may, by mutual agreement, provide for
arbitration of impasses resulting from their inability to agree
upon wages, hours and terms and conditions of employment to be
included in a collective bargaining agreement. Such
arbitration provisions shall be subject to the Illinois
"Uniform Arbitration Act" unless agreed by the parties.
The duty "to bargain collectively" shall also mean that no
party to a collective bargaining contract shall terminate or
modify such contract, unless the party desiring such
termination or modification:
(1) serves a written notice upon the other party to the
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contract of the proposed termination or modification 60
days prior to the expiration date thereof, or in the event
such contract contains no expiration date, 60 days prior to
the time it is proposed to make such termination or
modification;
(2) offers to meet and confer with the other party for
the purpose of negotiating a new contract or a contract
containing the proposed modifications;
(3) notifies the Board within 30 days after such notice
of the existence of a dispute, provided no agreement has
been reached by that time; and
(4) continues in full force and effect, without
resorting to strike or lockout, all the terms and
conditions of the existing contract for a period of 60 days
after such notice is given to the other party or until the
expiration date of such contract, whichever occurs later.
The duties imposed upon employers, employees and labor
organizations by paragraphs (2), (3) and (4) shall become
inapplicable upon an intervening certification of the Board,
under which the labor organization, which is a party to the
contract, has been superseded as or ceased to be the exclusive
representative of the employees pursuant to the provisions of
subsection (a) of Section 9, and the duties so imposed shall
not be construed as requiring either party to discuss or agree
to any modification of the terms and conditions contained in a
contract for a fixed period, if such modification is to become
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effective before such terms and conditions can be reopened
under the provisions of the contract.
Collective bargaining for home care and home health workers
who function as personal assistants and individual maintenance
home health workers under the Home Services Program shall be
limited to the terms and conditions of employment under the
State's control, as defined in Public Act 93-204 or this
amendatory Act of the 97th General Assembly, as applicable.
Collective bargaining for child and day care home providers
under the child care assistance program shall be limited to the
terms and conditions of employment under the State's control,
as defined in this amendatory Act of the 94th General Assembly.
Notwithstanding any other provision of this Section,
whenever collective bargaining is for the purpose of
establishing an initial agreement following original
certification of units with fewer than 35 employees, with
respect to public employees other than peace officers, fire
fighters, and security employees, the following apply:
(1) Not later than 10 days after receiving a written
request for collective bargaining from a labor
organization that has been newly certified as a
representative as defined in Section 6(c), or within such
further period as the parties agree upon, the parties shall
meet and commence to bargain collectively and shall make
every reasonable effort to conclude and sign a collective
bargaining agreement.
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(2) If anytime after the expiration of the 90-day
period beginning on the date on which bargaining is
commenced the parties have failed to reach an agreement,
either party may notify the Illinois Public Labor Relations
Board of the existence of a dispute and request mediation
in accordance with the provisions of Section 14 of this
Act.
(3) If after the expiration of the 30-day period
beginning on the date on which mediation commenced, or such
additional period as the parties may agree upon, the
mediator is not able to bring the parties to agreement by
conciliation, either the exclusive representative of the
employees or the employer may request of the other, in
writing, arbitration and shall submit a copy of the request
to the board. Upon submission of the request for
arbitration, the parties shall be required to participate
in the impasse arbitration procedures set forth in Section
14 of this Act, except the right to strike shall not be
considered waived pursuant to Section 17 of this Act, until
the actual convening of the arbitration hearing.
(Source: P.A. 97-1158, eff. 1-29-13; 98-1004, eff. 8-18-14.)
(5 ILCS 315/7.6 new)
Sec. 7.6. Prohibited subjects of bargaining.
(a) A public employer and a labor organization may not
bargain over, and no collective bargaining agreement entered
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into, renewed, or extended on or after the effective date of
this amendatory Act of the 99th General Assembly may include,
provisions related to the following prohibited subjects of
collective bargaining:
(1) Employee pensions, including the impact or
implementation of changes to employee pensions, including
the Employee Consideration Pension Transition Program as
set forth in Section 30 of the Personnel Code.
(2) Wages, including any form of compensation
including salaries, overtime compensation, vacations,
holidays, and any fringe benefits, including the impact or
implementation of changes to the same; except nothing in
this Section 7.6 will prohibit the employer from electing
to bargain collectively over employer-provided health
insurance.
(3) Hours of work, including work schedules, shift
schedules, overtime hours, compensatory time, and lunch
periods, including the impact or implementation of changes
to the same.
(4) Matters of employee tenure, including the impact of
employee tenure or time in service on the employer's
exercise of authority including, but not limited to, any
consideration the employer must give to the tenure of
employees adversely affected by the employer's exercise of
management's right to conduct a layoff.
(b) In case of any conflict between this Section and any
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other provisions of this Act or any other law, the provisions
of this Section shall control; except that in case of any
conflict between this Section and any other provisions of this
Act as amended by this amendatory Act of the 99th General
Assembly, the changes made by this amendatory Act of the 99th
General Assembly shall control.
(5 ILCS 315/10) (from Ch. 48, par. 1610)
Sec. 10. Unfair labor practices.
(a) It shall be an unfair labor practice for an employer or
its agents:
(1) to interfere with, restrain or coerce public
employees in the exercise of the rights guaranteed in this
Act or to dominate or interfere with the formation,
existence or administration of any labor organization or
contribute financial or other support to it; provided, an
employer shall not be prohibited from permitting employees
to confer with him during working hours without loss of
time or pay;
(2) to discriminate in regard to hire or tenure of
employment or any term or condition of employment in order
to encourage or discourage membership in or other support
for any labor organization. Nothing in this Act or any
other law precludes a public employer from making an
agreement with a labor organization to require as a
condition of employment the payment of a fair share under
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paragraph (e) of Section 6;
(3) to discharge or otherwise discriminate against a
public employee because he has signed or filed an
affidavit, petition or charge or provided any information
or testimony under this Act;
(4) subject to and except as provided in Section 4, to
refuse to bargain collectively in good faith with a labor
organization which is the exclusive representative of
public employees in an appropriate unit, including, but not
limited to, the discussing of grievances with the exclusive
representative; however, no actions of the employer taken
to negotiate with individual public employees regarding
public employee participation in the Employee
Consideration Pension Transition Program as set forth in
Section 30 of the Personnel Code will be considered an
unfair labor practice;
(5) to violate any of the rules and regulations
established by the Board with jurisdiction over them
relating to the conduct of representation elections or the
conduct affecting the representation elections;
(6) to expend or cause the expenditure of public funds
to any external agent, individual, firm, agency,
partnership or association in any attempt to influence the
outcome of representational elections held pursuant to
Section 9 of this Act; provided, that nothing in this
subsection shall be construed to limit an employer's right
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to internally communicate with its employees as provided in
subsection (c) of this Section, to be represented on any
matter pertaining to unit determinations, unfair labor
practice charges or pre-election conferences in any formal
or informal proceeding before the Board, or to seek or
obtain advice from legal counsel. Nothing in this paragraph
shall be construed to prohibit an employer from expending
or causing the expenditure of public funds on, or seeking
or obtaining services or advice from, any organization,
group, or association established by and including public
or educational employers, whether covered by this Act, the
Illinois Educational Labor Relations Act or the public
employment labor relations law of any other state or the
federal government, provided that such services or advice
are generally available to the membership of the
organization, group or association, and are not offered
solely in an attempt to influence the outcome of a
particular representational election; or
(7) to refuse to reduce a collective bargaining
agreement to writing or to refuse to sign such agreement.
(b) It shall be an unfair labor practice for a labor
organization or its agents:
(1) to restrain or coerce public employees in the
exercise of the rights guaranteed in this Act, provided,
(i) that this paragraph shall not impair the right of a
labor organization to prescribe its own rules with respect
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to the acquisition or retention of membership therein or
the determination of fair share payments and (ii) that a
labor organization or its agents shall commit an unfair
labor practice under this paragraph in duty of fair
representation cases only by intentional misconduct in
representing employees under this Act;
(2) to restrain or coerce a public employer in the
selection of his representatives for the purposes of
collective bargaining or the settlement of grievances; or
(3) to cause, or attempt to cause, an employer to
discriminate against an employee in violation of
subsection (a)(2);
(4) to refuse to bargain collectively in good faith
with a public employer, if it has been designated in
accordance with the provisions of this Act as the exclusive
representative of public employees in an appropriate unit;
(5) to violate any of the rules and regulations
established by the boards with jurisdiction over them
relating to the conduct of representation elections or the
conduct affecting the representation elections;
(6) to discriminate against any employee because he has
signed or filed an affidavit, petition or charge or
provided any information or testimony under this Act;
(7) to picket or cause to be picketed, or threaten to
picket or cause to be picketed, any public employer where
an object thereof is forcing or requiring an employer to
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recognize or bargain with a labor organization of the
representative of its employees, or forcing or requiring
the employees of an employer to accept or select such labor
organization as their collective bargaining
representative, unless such labor organization is
currently certified as the representative of such
employees:
(A) where the employer has lawfully recognized in
accordance with this Act any labor organization and a
question concerning representation may not
appropriately be raised under Section 9 of this Act;
(B) where within the preceding 12 months a valid
election under Section 9 of this Act has been
conducted; or
(C) where such picketing has been conducted
without a petition under Section 9 being filed within a
reasonable period of time not to exceed 30 days from
the commencement of such picketing; provided that when
such a petition has been filed the Board shall
forthwith, without regard to the provisions of
subsection (a) of Section 9 or the absence of a showing
of a substantial interest on the part of the labor
organization, direct an election in such unit as the
Board finds to be appropriate and shall certify the
results thereof; provided further, that nothing in
this subparagraph shall be construed to prohibit any
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picketing or other publicity for the purpose of
truthfully advising the public that an employer does
not employ members of, or have a contract with, a labor
organization unless an effect of such picketing is to
induce any individual employed by any other person in
the course of his employment, not to pick up, deliver,
or transport any goods or not to perform any services;
or
(8) to refuse to reduce a collective bargaining
agreement to writing or to refuse to sign such agreement.
(c) The expressing of any views, argument, or opinion or
the dissemination thereof, whether in written, printed,
graphic, or visual form, shall not constitute or be evidence of
an unfair labor practice under any of the provisions of this
Act, if such expression contains no threat of reprisal or force
or promise of benefit.
(Source: P.A. 86-412; 87-736.)
(5 ILCS 315/15) (from Ch. 48, par. 1615)
(Text of Section WITHOUT the changes made by P.A. 98-599,
which has been held unconstitutional)
Sec. 15. Act Takes Precedence.
(a) In case of any conflict between the provisions of this
Act and any other law (other than Section 5 of the State
Employees Group Insurance Act of 1971 and other than the
changes made to the Illinois Pension Code by this amendatory
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Act of the 96th General Assembly), executive order or
administrative regulation relating to terms wages, hours and
conditions of employment and employment relations, the
provisions of this Act or any collective bargaining agreement
negotiated thereunder shall prevail and control. Nothing in
this Act shall be construed to replace or diminish the rights
of employees established by Sections 28 and 28a of the
Metropolitan Transit Authority Act, Sections 2.15 through 2.19
of the Regional Transportation Authority Act. The provisions of
this Act are subject to Section 5 of the State Employees Group
Insurance Act of 1971. Nothing in this Act shall be construed
to replace the necessity of complaints against a sworn peace
officer, as defined in Section 2(a) of the Uniform Peace
Officer Disciplinary Act, from having a complaint supported by
a sworn affidavit.
(b) Except as provided in subsection (a) above, any
collective bargaining contract between a public employer and a
labor organization executed pursuant to this Act shall
supersede any contrary statutes, charters, ordinances, rules
or regulations relating to terms wages, hours and conditions of
employment and employment relations adopted by the public
employer or its agents. Any collective bargaining agreement
entered into prior to the effective date of this Act shall
remain in full force during its duration.
(c) It is the public policy of this State, pursuant to
paragraphs (h) and (i) of Section 6 of Article VII of the
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Illinois Constitution, that the provisions of this Act are the
exclusive exercise by the State of powers and functions which
might otherwise be exercised by home rule units. Such powers
and functions may not be exercised concurrently, either
directly or indirectly, by any unit of local government,
including any home rule unit, except as otherwise authorized by
this Act.
(d) No collective bargaining agreement entered into,
renewed, or extended after the effective date of this
amendatory Act of the 99th General Assembly or any arbitration
award issued under such collective bargaining agreement may
violate or conflict with any law.
(Source: P.A. 95-331, eff. 8-21-07; 96-889, eff. 1-1-11.)
(5 ILCS 315/19) (from Ch. 48, par. 1619)
Sec. 19. Any collective bargaining agreement entered into
prior to the effective date of this amendatory Act of the 99th
General Assembly Act shall remain in full force during its
duration, except that any such agreement that is renewed or
extended on or after such date is subject to the provisions of
this Act as amended by this amendatory Act of the 99th General
Assembly.
(Source: P.A. 83-1012.)
Section 90-10. The Secretary of State Merit Employment Code
is amended by changing Sections 6a, 10a, 10b.3, 10b.5, 10b.12,
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10b.13, and 10c and by adding Section 20 as follows:
(15 ILCS 310/6a) (from Ch. 124, par. 106a)
Sec. 6a. Director - powers and duties. The Director shall
have the following duties and responsibilities:
(1) To apply and carry out this law and the rules adopted
hereunder.
(2) To attend meetings of the Commission.
(3) To establish and maintain a roster of all employees
under the jurisdictional authority of the Secretary of State
subject to this Act, in which there shall be set forth, as to
each employee, the class, title, pay status, and other
pertinent data.
(4) Subject to such exemptions or modifications as may be
necessary to assure the continuity of federal contributions for
positions paid from federal funds, to make appointments to
vacancies; to approve all written charges seeking discharge,
demotion, or other disciplinary measures provided in this Act
and to approve transfers of employees from one geographical
area to another in the State.
(5) To formulate and administer service wide policies and
programs for the improvement of employee effectiveness,
including training, safety, health, incentive recognition,
counseling, welfare, and employee relations, subject to the
provisions of Section 20 of this Act.
(6) To conduct negotiations affecting pay, hours of work,
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or other working conditions of employees subject to this Act as
amended by this amendatory Act of the 99th General Assembly.
(7) To investigate from time to time the operation and
effect of this law and the rules made thereunder and to report
his or her findings and recommendations to the Commission and
the Secretary of State.
(8) To make such reports as he may consider desirable to
the Commission and the Secretary of State, or as the Secretary
of State or Commission may request.
(9) To enter into agreements with professional or
educational organizations or the Illinois State Department of
Central Management Services for the purpose of obtaining
professional or technical assistance in the administration of
this Act.
(10) To perform any other lawful acts necessary or
desirable to carry out the purposes and provisions of this law.
(Source: P.A. 90-372, eff. 7-1-98; 90-422, eff. 8-15-97.)
(15 ILCS 310/10a) (from Ch. 124, par. 110a)
Sec. 10a. Jurisdiction A - classification and pay. For
positions in the Office of the Secretary of State with respect
to the classification and pay:
(1) For the preparation, maintenance and revision by the
Director, subject to approval by the Commission, of a position
classification plan for all positions subject to this Act,
based upon similarity of duties performed, responsibilities
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assigned, and conditions of employment so that the same
schedule of pay may be equitably applied to all positions in
the same class. Unless the Commission disapproves such
classification plan or any revision thereof within 30 calendar
days, the Director shall allocate every such position to one of
the classes in the plan. Any employee affected by the
allocation of a position to a class shall after filing with the
Director of Personnel within 30 calendar days of the allocation
a request for reconsideration thereof in such manner and form
as the Director may prescribe, be given a reasonable
opportunity to be heard by the Director. If the employee does
not accept the decision of the Director he may, within 15
calendar days after receipt of the reconsidered decision,
appeal to the Merit Commission.
(2) For a pay plan to be prepared by the Director for all
employees subject to this Act. Such pay plan may include
provisions for uniformity of starting pay, an increment plan,
area differentials, a delay not to exceed one year in the
reduction of the pay of employees whose positions are reduced
in rank or grade by reallocation because of a loss of duties or
responsibilities after their appointments to such positions,
prevailing rates of wages in those classifications in which
employers are now paying or may hereafter pay such rates of
wage and other provisions. Such pay plan shall become effective
only after it has been approved by the Secretary of State.
Amendments to the pay plan will be made in the same manner.
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Such pay plan shall provide that each employee shall be paid at
one of the rates set forth in the pay plan for the class of
position in which he is employed. Such pay plan shall provide
for a fair and reasonable compensation far services rendered;
however, before July 1, 2020, the Director shall not prepare or
authorize any pay plan that includes a salary increase above
employee salaries as of July 1, 2015, subject to the provisions
of Section 20 of this Act.
(Source: P.A. 80-13.)
(15 ILCS 310/10b.3) (from Ch. 124, par. 110b.3)
Sec. 10b.3. Eligible lists. For the establishment of
eligible lists for appointment to positions in the Office of
the Secretary of State upon which lists shall be placed the
names of successful candidates in order of their relative
excellence in the respective examinations, subject to the
provisions of Section 20 of this Act. The Director may
establish eligible list by numerical ratings or rankings such
as superior, excellent, qualified or well-qualified. Such
rules may provide for lists by area or location, for removal of
those not available for or refusing employment, for minimum and
maximum duration of such lists, and for such other provisions
as may be necessary.
(Source: P.A. 80-13.)
(15 ILCS 310/10b.5) (from Ch. 124, par. 110b.5)
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Sec. 10b.5. Appointments. For the appointment of a person
standing among the 10 highest on the appropriate eligible list
to fill a vacancy, or from the highest ranking group if the
list is by rankings instead of numerical ratings, except as
otherwise provided in paragraph (2) of Section 5C and Section
16 of this Act or as set forth in Section 20 of this Act.
(Source: P.A. 93-403, eff. 8-1-03.)
(15 ILCS 310/10b.12) (from Ch. 124, par. 110b.12)
Sec. 10b.12. Reinstatements. For reinstatements with the
approval of the Director of Personnel of persons who held
certified status under this Code, the "Personnel Code" or the
University Civil Service System of Illinois and who resign in
good standing or who are laid off subject to the provisions of
Section 20 of this Act.
(Source: P.A. 80-13.)
(15 ILCS 310/10b.13) (from Ch. 124, par. 110b.13)
Sec. 10b.13. Layoffs. For layoffs by reason of lack of
funds or work, abolition of a position or material change in
duties or organization and for reemployment of employees so
laid off, giving consideration in both layoffs and reemployment
to seniority in service and performance record and, to the
extent permitted by the provisions of Section 20 of this Act,
seniority in service.
The rules may provide for the reinstatement of sick leave
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and vacation days not liquidated in money upon the reemployment
without regard to time of reemployment of any employee who is
the subject of a layoff under these rules.
(Source: P.A. 83-441.)
(15 ILCS 310/10c) (from Ch. 124, par. 110c)
Sec. 10c. Jurisdiction C - conditions of employment. For
positions in the Office of the Secretary of State with respect
to conditions of employment:
(1) For establishment of a plan for resolving employee
grievances and complaints, excluding compulsory arbitration.
(2) For hours of work, holidays and attendance regulation
in the various classes of positions in the Office of the
Secretary of State; for annual, sick and special leaves of
absence, with or without pay or with reduced pay; for
compensatory time off for overtime or for pay for overtime, and
for the rate at which compensatory time off is to be allowed or
for the rate which is to be paid for overtime; however, subject
to the provisions of Section 20 of this Act, the following
uniform standards will apply:
(A) No employee will be paid for overtime except when
required by the federal Fair Labor Standards Act or other
applicable federal laws.
(B) No employee will accrue more than 10 days of
vacation per year, and vacation time may be taken in
increments of not less than 1/2 day at a time, and any time
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after it is earned; however, employees who have completed
15 years of continuous service, or more, will accrue 15
days of vacation per year. Vacation schedules will be
approved in advance by employee supervisors based on the
operational needs of the Office of the Secretary of State.
Any unused vacation days will carry over, year to year, but
no employee may have more than 30 total accrued vacation
days.
(C) No employee will accrue more than 12.5 sick days
per year, and sick days may be taken in increments of not
less than 1/2 day at a time, and any time after it is
earned. Unused sick days will carry over, from year to
year, but no employee may have more than 40 total accrued
sick days.
If the services of an employee in the Office of the
Secretary of State are terminated by reason of his retirement,
disability or death, he or his estate, as the case may be,
shall be paid a lump sum for the number of days for leave for
personal business which the employee had accumulated but not
used as of the date his services were terminated, in an amount
equal to 1/2 of his pay per working day times the number of
such leave days so accumulated and not used.
(3) For the development and operation of programs to
improve the work effectiveness and morale of employees in the
Office of the Secretary of State, including training, safety,
health, welfare, counseling and employee relations.
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(4) For the establishment of a sick pay plan in accordance
with Section 36 of "An Act in relation to State finance",
approved June 10, 1919, as amended.
(Source: P.A. 81-1472.)
(15 ILCS 310/20 new)
Sec. 20. Employee Consideration Pension Transition
Program.
(a) Findings and Policy. Employee pension programs are
protected by the Illinois Constitution. However, some
employees may voluntarily elect to transition from the
retirement benefits they expect to receive in the future in
exchange for other benefits that affect current wages, hours,
and other terms and conditions of employment. Therefore, it is
the policy of the State of Illinois that State employees should
be afforded a voluntary system of choices in which they can
choose between remaining in whatever pension program they
enrolled in upon entry into the State civil service or electing
a different pension program in exchange for enrolling in a new
system of benefits.
(b) Tier 2 Pension Consideration Programs. Employees who
are currently enrolled in the Tier 1 Pension Program will be
afforded the opportunity to choose to transition into one of
the three following compensation packages in exchange for
transitioning to the Tier 2 Pension Program:
(1) Financial-Based Pension Consideration Program.
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Employees who choose to transition to the Tier 2 Pension
Program will receive the following conditions of
employment as consideration for the transition:
(A) Transition bonus. A one-time $2,000 transition
bonus.
(B) Wage increases. Fixed pay increases of $3,000
per year above their salary on the effective date of
this Section for 5 years after the effective date of
their election to transition from Tier 1 to Tier 2 of
the Pension Program.
(C) Accelerated Overtime Calculation. For
employees who are federal Fair Labor Standards Act
(FLSA) non-exempt, overtime compensation will begin
accruing upon the completion of 37.5 hours of work,
instead of 40 hours of work, per week.
(D) Eligibility for Flexible Work Schedules.
Employees are eligible for flexible work schedules.
(2) Vacation-Based Pension Consideration Program.
Employees who choose to transition to the Tier 2 Pension
Program will receive the following conditions of
employment as consideration for the transition:
(A) Transition bonus. A one-time $2,000 transition
bonus.
(B) Wage increases. Fixed pay increases of $2,000
per year above their salary on the effective date of
this Section for 5 years after the effective date of
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their election to transition from Tier 1 to Tier 2 of
the Pension Program.
(C) Additional vacation days. Employees who
completed less than 15 years of continuous service will
accrue 20 days of vacation per year, and vacation time
may be taken in increments of not less than 1/2 day at
a time, and any time after it is earned; however,
employees who have completed 15 years of continuous
service, or more, will accrue 25 days of vacation per
year. Vacation schedules will be approved in advance by
employee supervisors based on the operational needs of
the Office of the Secretary of State. Any unused
vacation days will carry over, year to year, but no
employee may have more than 90 total accrued vacation
days.
(D) Accelerated Overtime Calculation. For
employees who are FLSA non-exempt, overtime
compensation will begin accruing upon the completion
of 37.5 hours of work, instead of 40 hours of work, per
week.
(E) Eligibility for Flexible Work Schedules.
Employees are eligible for flexible work schedules.
(3) Seniority-Based Pension Consideration Program.
Employees who choose to transition to the Tier 2 Pension
Program will receive the following conditions of
employment as consideration for the transition:
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(A) Transition bonus. A one-time $2,000 transition
bonus.
(B) Additional vacation days. Employees who
completed less than 15 years of continuous service will
accrue 20 days of vacation per year, and vacation time
may be taken in increments of not less than 1/2 day at
a time, and any time after it is earned; however,
employees who have completed 15 years of continuous
service, or more, will accrue 25 days of vacation per
year. Vacation schedules will be approved in advance by
employee supervisors based on the operational needs of
the Office of the Secretary of State. Any unused
vacation days will carry over, year to year, but no
employee may have more than 75 total accrued vacation
days.
(C) Accelerated Overtime Calculation. For
employees who are FLSA non-exempt, overtime
compensation will be again accruing upon the
completion of 37.5 hours of work, instead of 40 hours
of work, per week.
(D) Eligibility for Flexible Work Schedules.
Employees are eligible for flexible work schedules.
(E) Seniority Preferences. The length of an
employee's continuous service will be considered as
relevant factor whenever management makes any
non-discipline related employment decisions regarding
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the employees terms and conditions of employment with
the following additional entitlements: Employees who
elected to enter the Seniority-Based Pension
Consideration Program will receive priority over
employees in the Financial-Based Pension Consideration
Program, the Vacation-Based Pension Consideration
Program, and all employees who did not participate in
any consideration program under the Employee
Consideration Pension Transition Program as set forth
in this Section when it comes to (i) work schedule
preferences, including flexible work schedule
preferences; (ii) access to voluntary overtime; (iii)
scheduling of vacations; and (iv) seniority preference
in hiring when applying for vacancies within the State
civil service, subject to bona fide specialized
skills, training, experience, and other necessary
requirements for individuals in the position.
(F) Bumping in a Layoff. Employees in the
Seniority-Based Pension Consideration Program who are
subject to a layoff may voluntarily transfer to an
otherwise encumbered position within the same position
classification at the same work location or another
work location with the Office within the same county,
for which they are qualified, unless the employer has
established bona fide specialized skills, training,
experience, and other necessary requirements for
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individuals in the position, if the position is
encumbered by an employee who is less senior based on
the employee's continuous service. If the affected
less-senior employee is also a participant in the
Seniority Based Pension Program, then the employee
will be afforded an opportunity to transfer into a
different position by the same process. Only employees
who participate in the Seniority-Based Pension
Consideration Program may exercise bumping rights
during a layoff.
(c) Employees who are currently enrolled in the Tier 1
Pension Program shall only transfer into one of the Tier 2
Pension Consideration Programs. However, every year, on the
anniversary of an employee's election from Tier 1 to Tier 2
Pension Benefits, the employee retains the option to transfer
to any other Tier 2 Pension Consideration Program except that
he or she shall only receive the one-time transition bonus upon
his or her initial transition from the Tier 1 to Tier 2 Pension
Program.
(d) The Director of the Department of Personnel-Secretary
of State is authorized to promulgate rules, regulations, and
procedures to implement this Section.
Section 90-15. The Comptroller Merit Employment Code is
amended by changing Sections 6a, 10a, 10b.3, 10b.5, 10b.12,
10b.13, and 10c and by adding Section 20 as follows:
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(15 ILCS 410/6a) (from Ch. 15, par. 410)
Sec. 6a. Director - powers and duties. The Director shall
have the following duties and responsibilities:
(1) To apply and carry out this law and the rules adopted
hereunder.
(2) To attend meetings of the Commission.
(3) To establish and maintain a roster of all employees
under the jurisdictional authority of the Comptroller subject
to this Act, in which there shall be set forth, as to each
employee, the class, title, pay status, and other pertinent
data.
(4) Subject to such exemptions or modifications as may be
necessary to assure the continuity of federal contributions for
positions paid from federal funds, to make appointments to
vacancies; to approve all written charges seeking discharge,
demotion, or other disciplinary measures provided in this Act
and to approve transfers of employees from one geographical
area to another in the State.
(5) To formulate and administer office wide policies and
programs for the improvement of employee effectiveness,
including training, safety, health, incentive recognition,
counseling, welfare and employee relations, subject to the
provisions of Section 20 of this Act.
(6) To conduct negotiations affecting pay, hours of work,
or other working conditions of employees subject to this Act as
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amended by this amendatory Act of the 99th General Assembly.
(7) To investigate from time to time the operation and
effect of this law and the rules made thereunder and to report
his or her findings and recommendations to the Commission and
the Comptroller.
(8) To make such reports as he or she may consider
desirable, to the Commission and the Comptroller or as the
Comptroller or Commission may request.
(9) To enter into agreements with professional or
educational organizations or the Illinois State Department of
Central Management Services for the purpose of obtaining
professional or technical assistance in the administration of
this Act.
(10) To perform any other lawful acts necessary or
desirable to carry out the purposes and provisions of this law.
(Source: P.A. 90-24, eff. 6-20-97.)
(15 ILCS 410/10a) (from Ch. 15, par. 424)
Sec. 10a. Jurisdiction A - classification and pay. For
positions in the Office of the Comptroller with respect to the
classification and pay:
(1) For the preparation, maintenance and revision by the
Director, subject to approval by the Commission, of a position
classification plan for all positions subject to this Act,
based upon similarity of duties performed, responsibilities
assigned, and conditions of employment so that the same
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schedule of pay may be equitably applied to all positions in
the same class. Unless the Commission disapproves such
classification plan or any revision thereof within 30 calendar
days, the Director shall allocate every such position to one of
the classes in the plan. Any employee affected by the
allocation of a position to a class shall after filing with the
Director within 30 calendar days of the allocation a request
for reconsideration thereof in such manner and form as the
Director may prescribe, be given a reasonable opportunity to be
heard by the Director. If the employee does not accept the
decision of the Director he may, within 15 calendar days after
receipt of the reconsidered decision, appeal to the Merit
Commission.
(2) For a pay plan to be prepared by the Director for all
employees subject to this Act. Such pay plan may include
provisions for uniformity of starting pay, an increment plan,
area differentials, a delay not to exceed one year in the
reduction of the pay of employees whose positions are reduced
in rank or grade by reallocation because of a loss of duties or
responsibilities after their appointments to such positions,
prevailing rates of wages in those classifications in which
employers are now paying or may hereafter pay such rates of
wage and other provisions. Such pay plan shall become effective
only after it has been approved by the Comptroller. Amendments
to the pay plan will be made in the same manner. Such pay plan
shall provide that each employee shall be paid at one of the
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rates set forth in the pay plan for the class of position in
which he is employed. Such pay plan shall provide for a fair
and reasonable compensation for services rendered; however,
before July 1, 2020, the Director shall not prepare or
authorize any pay plan that includes a salary increase above
employee salaries as of July 1, 2015, subject to the provisions
of Section 20 of this Act.
(Source: P.A. 90-24, eff. 6-20-97.)
(15 ILCS 410/10b.3) (from Ch. 15, par. 428)
Sec. 10b.3. Eligible lists. For the establishment of
eligible lists for appointment to positions in the Office of
the Comptroller upon which lists shall be placed the names of
successful candidates in order of their relative excellence in
the respective examinations, subject to the provisions of
Section 20 of this Act. The Director may establish eligible
lists by numerical ratings or rankings such as superior,
excellent, qualified or well-qualified. Such rules may provide
for lists by area or location, for removal of those not
available for or refusing employment, for minimum and maximum
duration of such lists, and for such other provisions as may be
necessary.
(Source: P.A. 80-1397.)
(15 ILCS 410/10b.5) (from Ch. 15, par. 430)
Sec. 10b.5. Appointments. For the appointment of a person
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standing among the 3 highest on the appropriate eligible list
to fill a vacancy, or from the highest ranking group if the
list is by rankings instead of numerical ratings, except as
otherwise provided in paragraph (2) of Section 5c and Section
16 of this Act. If there are fewer than 3 persons in the
highest ranking group, appointment may be made from the next
lower group, or as set forth in Section 20 of this Act.
(Source: P.A. 80-1397.)
(15 ILCS 410/10b.12) (from Ch. 15, par. 437)
Sec. 10b.12. Reinstatements. For reinstatements with the
approval of the Director of persons who held certified status
under this Code, the "Personnel Code", the Secretary of State
Merit Employment Code, or the University Civil Service System
of Illinois and who resign in good standing or who are laid off
subject to the provisions of Section 20 of this Act.
(Source: P.A. 90-24, eff. 6-20-97.)
(15 ILCS 410/10b.13) (from Ch. 15, par. 438)
Sec. 10b.13. Layoffs. For layoffs by reason of lack of
funds or work, abolition of a position or material change in
duties or organization and for reemployment of employees so
laid off, giving consideration in both layoffs and reemployment
to seniority in service and performance record and, to the
extent permitted by the provisions of Section 20 of this Act,
seniority in service.
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(Source: P.A. 80-1397.)
(15 ILCS 410/10c) (from Ch. 15, par. 443)
Sec. 10c. Jurisdiction C - conditions of employment. For
positions in the Office of the Comptroller with respect to
conditions of employment:
(1) For establishment of a plan for resolving employee
grievances and complaints, excluding compulsory arbitration.
(2) For hours of work, holidays and attendance regulation
in the various classes of positions in the Office of the
Comptroller; for annual and special leaves of absence, with or
without pay or with reduced pay; for compensatory time off for
overtime or for pay for overtime, and for the rate at which
compensatory time off is to be allowed or for the rate which is
to be paid for overtime; however, subject to the provisions of
Section 20 of this Act, the following uniform standards will
apply:
(A) No employee will be paid for overtime except when
required by the federal Fair Labor Standards Act or other
applicable federal laws.
(B) No employee will accrue more than ten 10 days of
vacation per year, and vacation time may be taken in
increments of not less than 1/2 day at a time, and any time
after it is earned; however, employees who have completed
15 years of continuous service, or more, will accrue 15
days of vacation per year. Vacation schedules will be
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approved in advance by employee supervisors based on the
operational needs of the Office of the Comptroller. Any
unused vacation days will carry over, year to year, but no
employee may have more than 30 total accrued vacation days.
(C) No employee will accrue more than 12.5 sick days
per year, and sick days may be taken in increments of not
less than 1/2 day at a time, and any time after it is
earned. Unused sick days will carry over, from year to
year, but no employee may have more than 40 total accrued
sick days.
If the services of an employee in the Office of the
Comptroller are terminated by reason of his retirement,
disability or death, he or his estate, as the case may be,
shall be paid a lump sum for the number of days for leave for
personal business which the employee had accumulated but not
used as of the date his services were terminated, in an amount
equal to 1/2 of his pay per working day times the number of
such leave days so accumulated and not used.
(3) For the development and operation of programs to
improve the work effectiveness and morale of employees in the
Office of the Comptroller, including training, safety, health,
welfare, counseling and employee relations.
(4) For the establishment of a sick pay plan in accordance
with Section 36 of "An Act in relation to State finance",
approved June 10, 1919, as amended.
(Source: P.A. 81-1472.)
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(15 ILCS 410/20 new)
Sec. 20. Employee Consideration Pension Transition
Program.
(a) Findings and Policy. Employee pension programs are
protected by the Illinois Constitution. However, some
employees may voluntarily elect to transition from the
retirement benefits they expect to receive in the future in
exchange for other benefits that affect current wages, hours,
and other terms and conditions of employment. Therefore, it is
the policy of the State of Illinois that State employees should
be afforded a voluntary system of choices in which they can
choose between remaining in whatever Pension program they
enrolled in upon entry into the State civil service or electing
a different pension program in exchange for enrolling in a new
system of benefits.
(b) Tier 2 Pension Consideration Programs. Employees who
are currently enrolled in the Tier 1 Pension Program will be
afforded the opportunity to choose to transition into one of
the three following compensation packages in exchange for
transitioning to the Tier 2 Pension Program:
(1) Financial-Based Pension Consideration Program.
Employees who choose to transition to the Tier 2 Pension
Program will receive the following conditions of
employment as consideration for the transition:
(A) Transition bonus. A one-time $2,000 transition
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bonus.
(B) Wage increases. Fixed pay increases of $3,000
per year above their salary on the effective date of
this Section for 5 years after the effective date of
their election to transition from Tier 1 to Tier 2 of
the Pension Program.
(C) Accelerated Overtime Calculation. For
employees who are FLSA non-exempt, overtime
compensation will be again accruing upon the
completion of 37.5 hours of work, instead of 40 hours
of work, per week.
(D) Eligibility for Flexible Work Schedules.
Employees are eligible for flexible work schedules.
(2) Vacation-Based Pension Consideration Program.
Employees who choose to transition to the Tier 2 Pension
Program will receive the following conditions of
employment as consideration for the transition:
(A) Transition bonus. A one-time $2,000 transition
bonus.
(B) Wage increases. Fixed pay increases of $2,000
per year above their salary on the effective date for 5
years after the effective date of their election to
transition from Tier 1 to Tier 2 of the Pension
Program.
(C) Additional vacation days. Employees who
completed less than 15 years of continuous service will
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accrue 20 days of vacation per year, and vacation time
may be taken in increments of not less than 1/2 day at
a time, and any time after it is earned; however,
employees who have completed 15 years of continuous
service, or more, will accrue 25 days of vacation per
year. Vacation schedules will be approved in advance by
employee supervisors based on the operational needs of
the Office of the Comptroller. Any unused vacation days
will carry over, year to year, but no employee may have
more than 90 total accrued vacation days.
(D) Accelerated Overtime Calculation. For
employees who are FLSA non-exempt, overtime
compensation will be again accruing upon the
completion of 37.5 hours of work, instead of 40 hours
of work, per week.
(E) Eligibility for Flexible Work Schedules.
Employees are eligible for flexible work schedules as
set forth in Section 9 of this Act.
(3) Seniority-Based Pension Consideration Program.
Employees who choose to transition to the Tier 2 Pension
Program will receive the following conditions of
employment as consideration for the transition:
(A) Transition bonus. A one-time $2,000 transition
bonus.
(B) Additional vacation days. Employees who
completed less than 15 years of continuous service will
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accrue 20 days of vacation per year, and vacation time
may be taken in increments of not less than 1/2 day at
a time, and any time after it is earned; however,
employees who have completed 15 years of continuous
service, or more, will accrue 25 days of vacation per
year. Vacation schedules will be approved in advance by
employee supervisors based on the operational needs of
the Office of the Comptroller. Any unused vacation days
will carry over, year to year, but no employee may have
more than 75 total accrued vacation days.
(C) Accelerated Overtime Calculation. For
employees who are FLSA non-exempt, overtime
compensation will be again accruing upon the
completion of 37.5 hours of work, instead of 40 hours
of work, per week.
(D) Eligibility for Flexible Work Schedules.
Employees are eligible for flexible work schedules as
set forth in Section 9 of this Act.
(E) Seniority Preferences. The length of an
employee's continuous service will be considered as
relevant factor whenever management makes any
non-discipline related employment decisions regarding
the employees terms and conditions of employment with
the following additional entitlements: Employees who
elected to enter the Seniority-Based Pension
Consideration Program will receive priority over
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employees in the Financial Based Pension Consideration
Program, the Vacation Based Pension Consideration
Program, and all employees who did not participate in
any consideration program under the Employee Choice
Pension Transition Program as set forth in this Section
20 of this Act when it comes to (i) work schedule
preferences including flexible work schedule
preferences, (ii) access to voluntary overtime, (iii)
scheduling of vacations, and (iv) seniority preference
in hiring when applying for vacancies within the State
civil service, subject to bona fide specialized
skills, training, experience, and other necessary
requirements for individuals in the position.
(F) Bumping in a Layoff. Employees in the Seniority
Based Pension Consideration Program who are subject to
a layoff may voluntarily transfer to an otherwise
encumbered position within the same position
classification at the same work location or another
work location with the Office within the same county,
for which they are qualified, unless the employer has
established bona fide specialized skills, training,
experience, and other necessary requirements for
individuals in the position, if the position is
encumbered by an employee who is less senior based on
the employee's continuous service. If the affected
less-senior employee is also a participant in the
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Seniority Based Pension Program, then the employee
will be afforded an opportunity to transfer into a
different position by the same process. Only employees
who participate in the Seniority Based Pension
Consideration Program may exercise bumping rights
during a layoff.
(c) Employees who are currently enrolled in the Tier 1
Pension Program shall only transfer into one of the Tier 2
Pension Consideration Programs. However, every year, on the
anniversary of an employee's election from Tier 1 to Tier 2
Pension Benefits, the employee retains the option to transfer
to any other Tier 2 Pension Consideration Programs except they
shall only receive the onetime transition bonus upon their
initial transition from the Tier 1 to Tier 2 Pension Program.
(d) The Director of the Department of Human Resources of
the Office of the Comptroller is authorized to promulgate
rules, regulations, and procedures to implement this Section 20
of this Act.
Section 90-20. The State Treasurer Employment Code is
amended by changing Sections 6, 9a, 9b, 9b.9, 9b.10, and 9c and
by adding Section 20 as follows:
(15 ILCS 510/6) (from Ch. 130, par. 106)
Sec. 6. Division of Personnel - duties and
responsibilities. The Division shall have the following duties
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and responsibilities:
(a) To apply and carry out this Code and the rules adopted
hereunder;
(b) To schedule and attend meetings of the Personnel Review
Board;
(c) To establish and maintain a roster of all employees
under the jurisdictional authority of the State Treasurer
subject to this Code, which shall include for each employee the
class, title, pay status, and other pertinent data;
(d) To make appointments to vacancies, to approve all
written charges seeking discharge, demotion, or other
disciplinary measures provided in this Code and to approve
transfers of employees;
(e) To develop and administer policies and programs for the
improvement of employee effectiveness, including training,
safety, health, incentive recognition, counseling, welfare and
employee relations, subject to the provisions of Section 20 of
this Act;
(f) To conduct negotiations affecting pay, hours of work,
or other working conditions of employees subject to this Code
as amended by this amendatory Act of the 99th General Assembly;
(g) To investigate from time to time the operation and
effect of this Code and the rules made hereunder and to report
findings and recommendations to the Board and the Treasurer;
(h) To enter into agreements with professional or
educational organizations or the Department of Central
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Management Services for the purpose of obtaining professional
or technical assistance in the administration of this Code;
(i) To perform any other lawful acts necessary or desirable
to carry out the purposes and provisions of this Code.
(Source: P.A. 85-1167.)
(15 ILCS 510/9a) (from Ch. 130, par. 109a)
Sec. 9a. Classification and pay. For positions in the
Office with respect to the classification and pay:
(1) For the preparation, maintenance and revision by the
Division, subject to approval by the Board, of a position
classification plan for all positions subject to this Code,
based upon similarity of duties performed, responsibilities
assigned and conditions of employment so that the same schedule
of pay may be equitably applied to all positions in the same
class. Unless the Board disapproves such classification plan or
any revision thereof within 30 calendar days, the Division
shall allocate every such position to one of the classes in the
plan. Any employee affected by the allocation of a position to
a class shall, after filing with the Division within 30
calendar days of the allocation of a request for
reconsideration thereof in such manner and form as the Division
may prescribe, be given a reasonable opportunity to be heard.
If the employee does not accept the decision he may, within 15
calendar days after receipt of the reconsidered decision,
appeal to the Board.
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(2) For a pay plan to be prepared by the Division for all
employees subject to this Code. Such pay plan may include
provisions for uniformity of starting pay, an increment plan,
area differentials, prevailing rates of wages in those
classifications in which employers are now paying or may
hereafter pay such rates of wage and other provisions. Such pay
plan shall become effective only after it has been approved by
the Treasurer. Amendments to the pay plan shall be made in the
same manner. Such pay plan shall provide that each employee
shall be paid at one of the rates set forth in the pay plan for
the class of position in which he is employed. Such pay plan
shall provide for a fair and reasonable compensation for
services rendered; however, before July 1, 2020, the Division
of Personnel shall not prepare or authorize any pay plan that
includes a salary increase above employee salaries as of July
1, 2015, subject to the provisions of Section 20 of this Act.
(Source: P.A. 85-1167.)
(15 ILCS 510/9b) (from Ch. 130, par. 109b)
Sec. 9b. Merit and fitness. For positions in the Office of
the Treasurer with respect to selection and tenure on a basis
of merit and fitness, those matters specified in Sections 9b.1
through 9b.13.
The Division may, at its discretion, accept the results of
examinations conducted by any merit system established by
federal law or by the law of any state, and may compile lists
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of eligible candidates therefrom or may add the names of
successful candidates in examinations conducted by those merit
systems to existing lists of eligible candidates, subject to
the provisions of Section 20 of this Act. No person who is a
nonresident of the State of Illinois may be appointed from
those eligible lists unless the requirement that the applicants
be residents of the State of Illinois is waived by the
Treasurer. Special linguistic requirements may also be
established where deemed appropriate.
(Source: P.A. 85-1167.)
(15 ILCS 510/9b.9) (from Ch. 130, par. 109b.9)
Sec. 9b.9. Reinstatements. For reinstatements with the
approval of the Division of Personnel of persons who held
certified status under this Code, the Personnel Code or the
University Civil Service System of Illinois and who resign in
good standing or who are laid off subject to the provisions of
Section 20 of this Act.
(Source: P.A. 85-1167.)
(15 ILCS 510/9b.10) (from Ch. 130, par. 109b.10)
Sec. 9b.10. Layoffs. For layoffs by reason of lack of funds
or work, abolition of a position or material change in duties
or organization and for reemployment of employees so laid off,
giving consideration in both layoffs and reemployment to
seniority in service and performance record, and, to the extent
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permitted by the provisions of Section 20 of this Act,
seniority in service.
(Source: P.A. 85-1167.)
(15 ILCS 510/9c) (from Ch. 130, par. 109c)
Sec. 9c. Conditions of employment. For positions in the
Office with respect to conditions of employment:
(1) For establishment of a plan for resolving employee
grievances and complaints;
(2) For hours of work, holidays and attendance regulation
in the various classes of positions in the Office; for annual,
sick and special leaves of absence, with or without pay or with
reduced pay; and for compensatory time off for overtime or for
pay for overtime; however, subject to the provisions of Section
20 of this Act, the following uniform standards will apply:
(A) No employee will be paid for overtime except when
required by the federal Fair Labor Standards Act or other
applicable federal laws.
(B) No employee will accrue more than ten 10 days of
vacation per year, and vacation time may be taken in
increments of not less than 1/2 day at a time, and any time
after it is earned; however, employees who have completed
15 years of continuous service, or more, will accrue 15
days of vacation per year. Vacation schedules will be
approved in advance by employee supervisors based on the
operational needs of the Office of the State Treasurer. Any
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unused vacation days will carry over, year to year, but no
employee may have more than 30 total accrued vacation days.
(C) No employee will accrue more than 12.5 sick days
per year, and sick days may be taken in increments of not
less than 1/2 day at a time, and any time after it is
earned. Unused sick days will carry over, from year to
year, but no employee may have more than 40 total accrued
sick days; and
(3) For the development and operation of programs to
improve the work effectiveness and morale of employees in the
Office, including training, safety, health, welfare,
counseling and employee relations.
(Source: P.A. 85-1167.)
(15 ILCS 510/20 new)
Sec. 20. Employee Consideration Pension Transition
Program.
(a) Findings and Policy. Employee pension programs are
protected by the Illinois Constitution. However, some
employees may voluntarily elect to transition from the
retirement benefits they expect to receive in the future in
exchange for other benefits that affect current wages, hours,
and other terms and conditions of employment. Therefore, it is
the policy of the State of Illinois that State employees should
be afforded a voluntary system of choices in which they can
choose between remaining in whatever Pension program they
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enrolled in upon entry into the State civil service or electing
a different pension program in exchange for enrolling in a new
system of benefits.
(b) Tier 2 Pension Consideration Programs. Employees who
are currently enrolled in the Tier 1 Pension Program will be
afforded the opportunity to choose to transition into one of
the three following compensation packages in exchange for
transitioning to the Tier 2 Pension Program:
(1) Financial-Based Pension Consideration Program.
Employees who choose to transition to the Tier 2 Pension
Program will receive the following conditions of
employment as consideration for the transition:
(A) Transition bonus. A one-time $2,000 transition
bonus.
(B) Wage increases. Fixed pay increases of $3,000
per year above their salary on the effective date of
this Section for 5 years after the effective date of
their election to transition from Tier 1 to Tier 2 of
the Pension Program.
(C) Accelerated Overtime Calculation. For
employees who are FLSA non-exempt, overtime
compensation will be again accruing upon the
completion of 37.5 hours of work, instead of 40 hours
of work, per week.
(D) Eligibility for Flexible Work Schedules.
Employees are eligible for flexible work schedules.
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(2) Vacation-Based Pension Consideration Program.
Employees who choose to transition to the Tier 2 Pension
Program will receive the following conditions of
employment as consideration for the transition:
(A) Transition bonus. A one-time $2,000 transition
bonus.
(B) Wage increases. Fixed pay increases of $2,000
per year above their salary on the effective date of
this Section for 5 years after the effective date of
their election to transition from Tier 1 to Tier 2 of
the Pension Program.
(C) Additional vacation days. Employees who
completed less than 15 years of continuous service will
accrue 20 days of vacation per year, and vacation time
may be taken in increments of not less than 1/2 day at
a time, and any time after it is earned; however,
employees who have completed 15 years of continuous
service, or more, will accrue 25 days of vacation per
year. Vacation schedules will be approved in advance by
employee supervisors based on the operational needs of
the Office of the State Treasurer. Any unused vacation
days will carry over, year to year, but no employee may
have more than 90 total accrued vacation days.
(D) Accelerated Overtime Calculation. For
employees who are FLSA non-exempt, overtime
compensation will be again accruing upon the
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completion of 37.5 hours of work, instead of 40 hours
of work, per week.
(E) Eligibility for Flexible Work Schedules.
Employees are eligible for flexible work schedules as
set forth in Section 9 of this Act.
(3) Seniority-Based Pension Consideration Program.
Employees who choose to transition to the Tier 2 Pension
Program will receive the following conditions of
employment as consideration for the transition:
(A) Transition bonus. A one-time $2,000 transition
bonus.
(B) Additional vacation days. Employees who
completed less than 15 years of continuous service will
accrue 20 days of vacation per year, and vacation time
may be taken in increments of not less than 1/2 day at
a time, and any time after it is earned; however,
employees who have completed 15 years of continuous
service, or more, will accrue 25 days of vacation per
year. Vacation schedules will be approved in advance by
employee supervisors based on the operational needs of
the Office of the State Treasurer. Any unused vacation
days will carry over, year to year, but no employee may
have more than 75 total accrued vacation days.
(C) Accelerated Overtime Calculation. For
employees who are FLSA non-exempt, overtime
compensation will be again accruing upon the
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completion of 37.5 hours of work, instead of 40 hours
of work, per week.
(D) Eligibility for Flexible Work Schedules.
Employees are eligible for flexible work schedules as
set forth in Section 9 of this Act.
(E) Seniority Preferences. The length of an
employee's continuous service will be considered as
relevant factor whenever management makes any
non-discipline related employment decisions regarding
the employees terms and conditions of employment with
the following additional entitlements: Employees who
elected to enter the Seniority-Based Pension
Consideration Program will receive priority over
employees in the Financial Based Pension Consideration
Program, the Vacation Based Pension Consideration
Program, and all employees who did not participate in
any consideration program under the Employee Choice
Pension Transition Program as set forth in this Section
20 of this Act when it comes to (i) work schedule
preferences including flexible work schedule
preferences, (ii) access to voluntary overtime, (iii)
scheduling of vacations, and (iv) seniority preference
in hiring when applying for vacancies within the State
civil service, subject to bona fide specialized
skills, training, experience, and other necessary
requirements for individuals in the position.
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(F) Bumping in a Layoff. Employees in the Seniority
Based Pension Consideration Program who are subject to
a layoff may voluntarily transfer to an otherwise
encumbered position within the same position
classification at the same work location or another
work location with the Office within the same county,
for which they are qualified, unless the employer has
established bona fide specialized skills, training,
experience, and other necessary requirements for
individuals in the position, if the position is
encumbered by an employee who is less senior based on
the employee's continuous service. If the affected
less-senior employee is also a participant in the
Seniority Based Pension Program, then the employee
will be afforded an opportunity to transfer into a
different position by the same process. Only employees
who participate in the Seniority Based Pension
Consideration Program may exercise bumping rights
during a layoff.
(c) Employees who are currently enrolled in the Tier 1
Pension Program shall only transfer into one of the Tier 2
Pension Consideration Programs. However, every year, on the
anniversary of an employee's election from Tier 1 to Tier 2
Pension Benefits, the employee retains the option to transfer
to any other Tier 2 Pension Consideration Programs except they
shall only receive the onetime transition bonus upon their
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initial transition from the Tier 1 to Tier 2 Pension Program.
(d) The Division of Personnel of the Office of the
Treasurer is authorized to promulgate rules, regulations, and
procedures to implement this Section 20 of this Act.
Section 90-23. The Personnel Code is amended by changing
Sections 8a, 8b.3, 8b.5, 8b.12, 8b.13, 8c, 9, 10, and 12f and
by adding Section 30 as follows:
(20 ILCS 415/8a) (from Ch. 127, par. 63b108a)
Sec. 8a. Jurisdiction A - Classification and pay. For
positions in the State service subject to the jurisdiction of
the Department of Central Management Services with respect to
the classification and pay:
(1) For the preparation, maintenance, and revision by
the Director, subject to approval by the Commission, of a
position classification plan for all positions subject to
this Act, based upon similarity of duties performed,
responsibilities assigned, and conditions of employment so
that the same schedule of pay may be equitably applied to
all positions in the same class. However, the pay of an
employee whose position is reduced in rank or grade by
reallocation because of a loss of duties or
responsibilities after his appointment to such position
shall not be required to be lowered for a period of one
year after the reallocation of his position. Conditions of
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employment shall not be used as a factor in the
classification of any position heretofore paid under the
provisions of Section 1.22 of "An Act to standardize
position titles and salary rates", approved June 30, 1943,
as amended. Unless the Commission disapproves such
classification plan within 60 days, or any revision thereof
within 30 days, the Director shall allocate every such
position to one of the classes in the plan. Any employee
affected by the allocation of a position to a class shall,
after filing with the Director of Central Management
Services a written request for reconsideration thereof in
such manner and form as the Director may prescribe, be
given a reasonable opportunity to be heard by the Director.
If the employee does not accept the allocation of the
position, he shall then have the right of appeal to the
Civil Service Commission.
(2) For pay plans a pay plan to be prepared by the
Director for all employees subject to this Act after
consultation with operating agency heads and the Director
of the Governor's Office of Management and Budget. Such pay
plan may include provisions for uniformity of starting pay,
an increment plan, area differentials, a delay not to
exceed one year prior to the reduction of the pay of
employees whose positions are reduced in rank or grade by
reallocation because of a loss of duties or
responsibilities after their appointments to such
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positions, prevailing rates of wages in those
classifications in which employers are now paying or may
hereafter pay such rates of wage and other provisions. Such
pay plan shall become effective only after it has been
approved by the Governor. Amendments to the pay plan shall
be made in the same manner. Such pay plan shall provide
that each employee shall be paid at one of the rates set
forth in the pay plan for the class of position in which he
is employed, subject to delay in the reduction of pay of
employees whose positions are reduced in rank or grade by
allocation as above set forth in this Section. Such pay
plan shall provide for a fair and reasonable compensation
for services rendered; however, before July 1, 2020, the
Director shall not make any amendments to the wage rates
established in a pay plan in effect as of July 1, 2015,
subject to the provisions of Section 30 of this Act.
This Section is inapplicable to the position of Assistant
Director of Healthcare and Family Services in the Department of
Healthcare and Family Services. The salary for this position
shall be as established in "The Civil Administrative Code of
Illinois", approved March 7, 1917, as amended.
(Source: P.A. 94-793, eff. 5-19-06; 95-331, eff. 8-21-07.)
(20 ILCS 415/8b.3) (from Ch. 127, par. 63b108b.3)
Sec. 8b.3. For the establishment of eligible lists for
appointment and promotion, upon which lists shall be placed the
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names of successful candidates in order of their relative
excellence in respective examinations, subject to the
provisions of Section 30 of this Act. The Director may
substitute rankings such as superior, excellent,
well-qualified and qualified for numerical ratings and
establish eligible lists accordingly. Such rules may provide
for lists by area or location, by department or other agency,
for removal of those not available for or refusing employment,
for minimum and maximum duration of such lists, and for such
other provisions as may be necessary to provide rapid and
satisfactory service to the operating agencies. The Director
may approve the written request of an agency or applicant to
extend the eligibility of a qualified eligible candidate when
the extension is necessary to assist in achieving affirmative
action goals in employment. The extended period of eligibility
shall not exceed the duration of the original period of
eligibility and shall not be renewed. The rules may authorize
removal of eligibles from lists if those eligibles fail to
furnish evidence of availability upon forms sent to them by the
Director.
(Source: P.A. 87-545.)
(20 ILCS 415/8b.5) (from Ch. 127, par. 63b108b.5)
Sec. 8b.5. For the appointment of the person standing among
the 3 highest on the appropriate eligible list to fill a
vacancy, or from the highest ranking group if the list is by
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rankings instead of numerical ratings, except as otherwise
provided in Sections 4b and 17a of this Act.
The Director may approve the appointment of a person from
the next lower ranking group when the highest ranking group
contains less than 3 eligibles, or as set forth in Section 30
of this Act.
(Source: P.A. 86-12.)
(20 ILCS 415/8b.12) (from Ch. 127, par. 63b108b.12)
Sec. 8b.12. For reinstatement with the approval of the
Director of Central Management Services of persons who resign
in good standing, or who are laid off subject to the provisions
of Section 30 of this Act.
(Source: P.A. 82-789.)
(20 ILCS 415/8b.13) (from Ch. 127, par. 63b108b.13)
Sec. 8b.13. For layoffs by reason of lack of funds or work,
abolition of a position or material change in duties or
organization, and for reemployment of employees so laid off,
giving consideration in both layoffs and reemployment to
performance record, seniority in service, and impact on
achieving equal employment opportunity goals, and, to the
extent permitted by the provisions of Section 30 of this Act,
seniority in service.
The rules may provide for the reinstatement of sick leave
and vacation days not liquidated in money upon the reemployment
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without regard to time of reemployment of any employee who is
the subject of a layoff under these rules.
(Source: P.A. 83-441.)
(20 ILCS 415/8c) (from Ch. 127, par. 63b108c)
Sec. 8c. Jurisdiction C; conditions of employment. For
positions in the State service subject to the jurisdiction of
the Department of Central Management Services with respect to
conditions of employment:
(1) For establishment of a plan for resolving employee
grievances and complaints, excluding compulsory
arbitration.
(2) For hours of work, holidays, and attendance
regulation in the various classes of positions in the State
service; for annual, sick and special leaves of absence,
with or without pay or with reduced pay; for compensatory
time off for overtime or for pay for overtime, and for the
rate at which compensatory time off is to be allowed or for
the rate which is to be paid for overtime; however, subject
to the provisions of Section 30 of this Act, the following
uniform standards will apply:
(i) No employee will be paid for overtime except
when required by the federal Fair Labor Standards Act
or other applicable federal laws.
(ii) No employee will accrue more than 10 days of
vacation per year, and vacation time may be taken in
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increments of not less than 1/2 day at a time, and any
time after it is earned; however, employees who have
completed 15 years of continuous service, or more, will
accrue 15 days of vacation per year. Vacation schedules
will be approved in advance by employee supervisors
based on the operational needs of the employee's
Agency. Any unused vacation days will carry over, year
to year, but no employee may have more than 30 total
accrued vacation days.
(iii) No employee will accrue more than 12.5 sick
days per year, and sick days may be taken in increments
of not less than 1/2 day at a time, and any time after
it is earned. Unused sick days will carry over, from
year to year, but no employee may have more than 40
total accrued sick days.
If the services of an employee in the State service are
terminated by reason of his retirement, disability or death,
he, or his estate, as the case may be, shall be paid a lump sum,
for the number of days for leave for personal business which
the employee had accumulated but not used as of the date his
services were terminated, in an amount equal to 1/2 of his pay
per working day times the number of such leave days so
accumulated and not used.
(3) For the development and operation of programs to
improve the work effectiveness and morale of employees in
the State service, including training, safety, health,
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welfare, counseling, recreation, employee relations, a
suggestion system, and others.
Employees whose tuition and fees are paid by the State,
either directly or by reimbursement, shall incur a work
commitment to the State. Employees whose State paid
training has not led to a postsecondary degree shall be
obligated to continue in the employ of the State, but not
necessarily in the same agency, for a period of at least 18
months following completion of the most recent course.
Employees whose State paid training has led to a
postsecondary degree and whose State payments have paid for
50% or more of the required credit hours shall be obligated
to continue in the employ of the State, but not necessarily
in the same agency, for a minimum of 4 years after
receiving the degree.
If the employee does not fulfill this work commitment
by voluntarily leaving State employment, the State may
recover payments in a civil action and may also recover
interest at the rate of 1% per month from the time the
State makes payment until the time the State recovers the
payment. The amount the State may recover under this
subsection (3) shall be reduced by 25% of the gross amount
paid by the State for each year the employee is employed by
the State after the employee receives a postsecondary
degree, and 1/18th of the gross amount paid by the State
for each month the employee is employed by the State after
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the employee completes the most recent course which has not
led to a postsecondary degree.
The State shall not recover payments for course work or
a training program that was (a) started before the
effective date of this Act; (b) completed as a requirement
for a grammar school certificate or a high school diploma,
to prepare for high school equivalency testing, or to
improve literacy or numeracy; (c) specialized training in
the form of a conference, seminar, workshop, or similar
arrangement offered by public or private organizations;
(d) provided as part of the Upward Mobility Program
administered by the Department of Central Management
Services; or (e) a condition of continued employment.
Department of State Police employees who are enrolled
in an official training program that lasts longer than one
year shall incur a work commitment to the State. The work
commitment shall be 2 months for each month of completed
training. If the employee fails to fulfill this work
commitment by voluntarily leaving State employment, the
State may recover wages in a civil action and may also
recover interest at the rate of 1% per month from the time
the State makes payment until the time the State recovers
the payment. The amount the State may recover under this
subsection (3) shall be reduced by the number of months
served after the training is completed times the monthly
salary at the time of separation.
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The Department of Central Management Services shall
promulgate rules governing recovery activities to be used
by all State agencies paying, whether directly or by
reimbursement, for employee tuition and fees. Each such
agency shall make necessary efforts, including pursuing
appropriate legal action, to recover the actual
reimbursements and applicable interest due the State under
this subsection (3).
(4) For the establishment of a sick pay plan in
accordance with Section 36 of the State Finance Act.
(5) For the establishment of a family responsibility
leave plan under which an employee in the State service may
request and receive a leave of absence for up to one year
without penalty whenever such leave is requested to enable
the employee to meet a bona fide family responsibility of
such employee. The procedure for determining and
documenting the existence of a bona fide family
responsibility shall be as provided by rule, but without
limiting the circumstances which shall constitute a bona
fide family responsibility under the rules, such
circumstances shall include leave incident to the birth of
the employee's child and the responsibility thereafter to
provide proper care to that child or to a newborn child
adopted by the employee, the responsibility to provide
regular care to a disabled, incapacitated or bedridden
resident of the employee's household or member of the
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employee's family, and the responsibility to furnish
special guidance, care and supervision to a resident of the
employee's household or member of the employee's family in
need thereof under circumstances temporarily inconsistent
with uninterrupted employment in State service. The family
responsibility leave plan so established shall provide
that any such leave shall be without pay, that the
seniority of the employee on such leave shall not be
reduced during the period of the leave, that such leave
shall not under any circumstance or for any purpose be
deemed to cause a break in such employee's State service,
that during the period of such leave any coverage of the
employee or the employee's dependents which existed at the
commencement of the leave under any group health, hospital,
medical and life insurance plan provided through the State
shall continue so long as the employee pays to the State
when due the full premium incident to such coverage, and
that upon expiration of the leave the employee shall be
returned to the same position and classification which such
employee held at the commencement of the leave. The
Director of Central Management Services shall prepare
proposed rules consistent with this paragraph within 45
days after the effective date of this amendatory Act of
1983, shall promptly thereafter cause a public hearing
thereon to be held as provided in Section 8 and shall
within 120 days after the effective date of this amendatory
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Act of 1983 cause such proposed rules to be submitted to
the Civil Service Commission as provided in Section 8.
(6) For the development and operation of a plan for
alternative employment for any employee who is able to
perform alternative employment after a work related or
non-work related disability essentially precludes that
employee from performing his or her currently assigned
duties. Such a plan shall be voluntary for any employee and
nonparticipation shall not be grounds for denial of any
benefit to which the employee would otherwise be eligible.
Any plan seeking to cover positions for which there is a
recognized bargaining agent shall be subject to collective
bargaining between the parties.
(7) For the development and operation of an Executive
Development Program to provide scholarships for the
receipt of academic degrees or senior executive training
beyond the Bachelor's degree level for as many as 25
employees at any given time:
(i) each of whom is nominated for such scholarship
by the head of the employee's agency and approved by
the Director;
(ii) who are subject to Term Appointment under
Section 8b.18 or who would be subject to such Term
Appointment but for Federal funding or who are exempt
from Jurisdiction B under subsections (2), (3) or (6)
of Section 4d of this Act:
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(iii) who meet the admission standards established
by the institution awarding the advanced degree or
conducting the training;
(iv) each of whom agrees, as a condition of
accepting such scholarship, that the State may recover
the scholarship by garnishment, lien or other
appropriate legal action if the employee fails to
continue in the employ of the State, but not
necessarily in the same agency, for a minimum of 4
years following receipt of an advanced degree or
training and that the State may charge interest from
the time of payment until the time of recovery of such
scholarship of no less than 1% per month or 12% per
annum on all funds recovered by the State. The amount
the State may recover under this Section will be
reduced by 25% of the gross amount paid by the State
for each year of employment following receipt of the
advanced degree or training.
The Director shall in approving eligible employees for
the Executive Development Program make every attempt to
guarantee that at least 1/3 of the employees appointed to
the program reflect the ratio of sex, race, and ethnicity
of eligible employees.
Such scholarships shall not exceed the amount
established for tuition and fees for the applicable
advanced degree or training at State universities in
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Illinois whether the employee enrolls at any Illinois
public or private institution, and shall not include any
textbooks or equipment such as personal computers.
The Department of Central Management Services shall
make necessary efforts, including appropriate legal
action, to recover scholarships and interest thereupon due
subject to recovery by the State under Subparagraph (iv) of
this Subsection (7).
(Source: P.A. 98-718, eff. 1-1-15.)
(20 ILCS 415/9) (from Ch. 127, par. 63b109)
Sec. 9. Director, powers and duties. The Director, as
executive head of the Department, shall direct and supervise
all its administrative and technical activities. In addition to
the duties imposed upon him elsewhere in this law, it shall be
his duty:
(1) To apply and carry out this law and the rules
adopted thereunder.
(2) To attend meetings of the Commission.
(3) To establish and maintain a roster of all employees
under the jurisdictional authority of the Governor subject
to this Act, in which there shall be set forth, as to each
employee, the class, title, pay, status, and other
pertinent data.
(4) To appoint, subject to the provisions of this Act,
such employees of the Department and such experts and
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special assistants as may be necessary to carry out
effectively this law.
(5) Subject to such exemptions or modifications as may
be necessary to assure the continuity of federal
contributions in those agencies supported in whole or in
part by federal funds, to make appointments to vacancies;
to approve all written charges seeking discharge,
demotion, or other disciplinary measures provided in this
Act and to approve transfers of employees from one
geographical area to another in the State, in offices,
positions or places of employment covered by this Act,
after consultation with the operating unit.
(6) To formulate and administer service wide policies
and programs for the improvement of employee
effectiveness, including training, safety, health,
incentive recognition, counseling, welfare and employee
relations. The Department shall formulate and administer
recruitment plans and testing of potential employees for
agencies having direct contact with significant numbers of
non-English speaking or otherwise culturally distinct
persons. The Department shall require each State agency to
annually assess the need for employees with appropriate
bilingual capabilities to serve the significant numbers of
non-English speaking or culturally distinct persons. The
Department shall develop a uniform procedure for assessing
an agency's need for employees with appropriate bilingual
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capabilities. Agencies shall establish occupational titles
or designate positions as "bilingual option" for persons
having sufficient linguistic ability or cultural knowledge
to be able to render effective service to such persons. The
Department shall ensure that any such option is exercised
according to the agency's needs assessment and the
requirements of this Code. The Department shall make annual
reports of the needs assessment of each agency and the
number of positions calling for non-English linguistic
ability to whom vacancy postings were sent, and the number
filled by each agency. Such policies and programs shall be
subject to approval by the Governor. Such policies, program
reports and needs assessment reports shall be filed with
the General Assembly by January 1 of each year and shall be
available to the public.
The Department shall include within the report
required above the number of persons receiving the
bilingual pay supplement established by Section 8a.2 of
this Code. The report shall provide the number of persons
receiving the bilingual pay supplement for languages other
than English and for signing. The report shall also
indicate the number of persons, by the categories of
Hispanic and non-Hispanic, who are receiving the bilingual
pay supplement for language skills other than signing, in a
language other than English.
(7) To conduct negotiations affecting pay, hours of
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work, or other working conditions of employees subject to
this Act as amended by this amendatory Act of the 99th
General Assembly.
(8) To make continuing studies to improve the
efficiency of State services to the residents of Illinois,
including but not limited to those who are non-English
speaking or culturally distinct, and to report his findings
and recommendations to the Commission and the Governor.
(9) To investigate from time to time the operation and
effect of this law and the rules made thereunder and to
report his findings and recommendations to the Commission
and to the Governor.
(10) To make an annual report regarding the work of the
Department, and such special reports as he may consider
desirable, to the Commission and to the Governor, or as the
Governor or Commission may request.
(11) (Blank).
(12) To prepare and publish a semi-annual statement
showing the number of employees exempt and non-exempt from
merit selection in each department. This report shall be in
addition to other information on merit selection
maintained for public information under existing law.
(13) Subject to the provisions of Section 30 of this
Act, to To authorize in every department or agency subject
to Jurisdiction C the use of flexible hours positions. A
flexible hours position is one that does not require an
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ordinary work schedule as determined by the Department and
includes but is not limited to: 1) a part time job of 20
hours or more per week, 2) a job which is shared by 2
employees or a compressed work week consisting of an
ordinary number of working hours performed on fewer than
the number of days ordinarily required to perform that job.
The Department may define flexible time to include other
types of jobs that are defined above.
The Director and the director of each department or
agency shall together establish goals for flexible hours
positions to be available in every department or agency.
The Department shall give technical assistance to
departments and agencies in achieving their goals, and
shall report to the Governor and the General Assembly each
year on the progress of each department and agency.
When a goal of 10% of the positions in a department or
agency being available on a flexible hours basis has been
reached, the Department shall evaluate the effectiveness
and efficiency of the program and determine whether to
expand the number of positions available for flexible hours
to 20%.
When a goal of 20% of the positions in a department or
agency being available on a flexible hours basis has been
reached, the Department shall evaluate the effectiveness
and efficiency of the program and determine whether to
expand the number of positions available for flexible
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hours.
Each department shall develop a plan for
implementation of flexible work requirements designed to
reduce the need for day care of employees' children outside
the home. Each department shall submit a report of its plan
to the Department of Central Management Services and the
General Assembly. This report shall be submitted
biennially by March 1, with the first report due March 1,
1993.
(14) To perform any other lawful acts which he may
consider necessary or desirable to carry out the purposes
and provisions of this law.
The requirement for reporting to the General Assembly shall
be satisfied by filing copies of the report with the Speaker,
the Minority Leader and the Clerk of the House of
Representatives and the President, the Minority Leader and the
Secretary of the Senate and the Legislative Research Unit, as
required by Section 3.1 of "An Act to revise the law in
relation to the General Assembly", approved February 25, 1874,
as amended, and filing such additional copies with the State
Government Report Distribution Center for the General Assembly
as is required under paragraph (t) of Section 7 of the State
Library Act.
(Source: P.A. 98-692, eff. 7-1-14.)
(20 ILCS 415/10) (from Ch. 127, par. 63b110)
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Sec. 10. Duties and powers of the Commission. The Civil
Service Commission shall have duties and powers as follows:
(1) Upon written recommendations by the Director of the
Department of Central Management Services to exempt from
jurisdiction B of this Act positions which, in the judgment
of the Commission, involve either principal administrative
responsibility for the determination of policy or
principal administrative responsibility for the way in
which policies are carried out. This authority may not be
exercised, however, with respect to the position of
Assistant Director of Healthcare and Family Services in the
Department of Healthcare and Family Services.
(2) To require such special reports from the Director
as it may consider desirable.
(3) Subject to the provisions of Section 30, to To
disapprove original rules or any part thereof within 90
days and any amendment thereof within 30 days after the
submission of such rules to the Civil Service Commission by
the Director, and to disapprove any amendments thereto in
the same manner.
(4) To approve or disapprove within 60 days from date
of submission the position classification P.A. submitted
by the Director as provided in the rules, and any revisions
thereof within 30 days from the date of submission.
(5) To hear appeals of employees who do not accept the
allocation of their positions under the position
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classification plan.
(6) To hear and determine written charges filed seeking
the discharge, demotion of employees and suspension
totaling more than thirty days in any 12-month period, as
provided in Section 11 hereof, and appeals from transfers
from one geographical area in the State to another, and in
connection therewith to administer oaths, subpoena
witnesses, and compel the production of books and papers.
(7) The fees of subpoenaed witnesses under this Act for
attendance and travel shall be the same as fees of
witnesses before the circuit courts of the State, such fees
to be paid when the witness is excused from further
attendance. Whenever a subpoena is issued the Commission
may require that the cost of service and the fee of the
witness shall be borne by the party at whose insistence the
witness is summoned. The Commission has the power, at its
discretion, to require a deposit from such party to cover
the cost of service and witness fees and the payment of the
legal witness fee and mileage to the witness served with
the subpoena. A subpoena issued under this Act shall be
served in the same manner as a subpoena issued out of a
court.
Upon the failure or refusal to obey a subpoena, a
petition shall be prepared by the party serving the
subpoena for enforcement in the circuit court of the county
in which the person to whom the subpoena was directed
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either resides or has his or her principal place of
business.
Not less than five days before the petition is filed in
the appropriate court, it shall be served on the person
along with a notice of the time and place the petition is
to be presented.
Following a hearing on the petition, the circuit court
shall have jurisdiction to enforce subpoenas issued
pursuant to this Section.
On motion and for good cause shown the Commission may
quash or modify any subpoena.
(8) To make an annual report regarding the work of the
Commission to the Governor, such report to be a public
report.
(9) If any violation of this Act is found, the
Commission shall direct compliance in writing.
(10) To appoint a full-time executive secretary and
such other employees, experts, and special assistants as
may be necessary to carry out the powers and duties of the
Commission under this Act and employees, experts, and
special assistants so appointed by the Commission shall be
subject to the provisions of jurisdictions A, B and C of
this Act. These powers and duties supersede any contrary
provisions herein contained.
(11) To make rules to carry out and implement their
powers and duties under this Act, with authority to amend
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such rules from time to time.
(12) To hear or conduct investigations as it deems
necessary of appeals of layoff filed by employees appointed
under Jurisdiction B after examination provided that such
appeals are filed within 15 calendar days following the
effective date of such layoff and are made on the basis
that the provisions of the Personnel Code or of the Rules
of the Department of Central Management Services relating
to layoff have been violated or have not been complied
with.
All hearings shall be public. A decision shall be
rendered within 60 days after receipt of the transcript of
the proceedings. The Commission shall order the
reinstatement of the employee if it is proven that the
provisions of the Personnel Code or of the Rules of the
Department of Central Management Services relating to
layoff have been violated or have not been complied with.
In connection therewith the Commission may administer
oaths, subpoena witnesses, and compel the production of
books and papers.
(13) Whenever the Civil Service Commission is
authorized or required by law to consider some aspect of
criminal history record information for the purpose of
carrying out its statutory powers and responsibilities,
then, upon request and payment of fees in conformance with
the requirements of Section 2605-400 of the Department of
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State Police Law (20 ILCS 2605/2605-400), the Department of
State Police is authorized to furnish, pursuant to positive
identification, such information contained in State files
as is necessary to fulfill the request.
(Source: P.A. 95-331, eff. 8-21-07.)
(20 ILCS 415/12f)
Sec. 12f. Layoffs. Merit compensation/salary grade
employees; layoffs.
Whenever a State agency elects to exercise its authority to
conduct a layoff, each (a) Each State agency shall make every
attempt to minimize the number of its employees that are laid
off, subject to the provisions of Section 30 of this Act. In an
effort to minimize layoffs, each merit compensation/salary
grade employee who is subject to layoff shall be offered any
vacant positions for the same title held by that employee
within the same agency and county from which the employee is
subject to layoff and within 2 additional alternate counties
designated by the employee (or 3 additional counties if the
employee's facility or office is closing), excluding titles
that are subject to collective bargaining. If no such vacancies
exist, then the employee shall be placed on the agency's
reemployment list for (i) the title from which the employee was
laid off and (ii) any other titles or successor titles
previously held by that employee in which the employee held
certified status within the county from which the employee was
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laid off and within 2 additional alternate counties designated
by the employee (or 3 additional counties if the employee's
facility or office is closing), excluding titles that are
subject to collective bargaining. Laid-off employees shall
remain on a reemployment list for 3 years, commencing with the
date of layoff.
(b) Merit compensation/salary grade employees who are laid
off shall be extended the same medical and dental insurance
benefits to which employees laid off from positions subject to
collective bargaining are entitled and on the same terms.
(c) Employees laid off from merit compensation/salary
grade positions may apply to be qualified for any titles
subject to collective bargaining.
Employees (d) Merit compensation/salary grade employees
subject to layoff shall be given 30 days' notice of the layoff.
A list of all current vacancies of all titles within the agency
shall be provided to the employee with the notice of the layoff
and an invitation to apply for any current vacancies.
(Source: P.A. 93-839, eff. 7-30-04.)
(20 ILCS 415/30 new)
Sec. 30. Employee Consideration Pension Transition
Program.
(a) Tier 2 Pension Consideration Programs. As adequate and
legal consideration for electing to transition into Tier 2 for
future service, as set forth in Section 14-160 of the Illinois
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Pension Code, current Tier 1 members who have made that
election may choose one of the following 3 additional benefit
packages:
(1) Financial-Based Pension Consideration Program. The
employee shall receive:
(A) Transition Bonus. A one-time transition bonus
in the amount of $2,000.
(B) Wage Increases. An increase in the employee's
annual salary in effect on the effective date of this
Section in the amount of $3,000.
(C) Accelerated Overtime Calculation. If the
employee is federal Fair Labor Standards Act (FLSA)
non-exempt, overtime compensation accrues upon the
completion of 37.5 hours of work per week.
(D) Eligibility for Flexible Work Schedules. The
employee is eligible for flexible work schedules as set
forth in Section 9 of this Act.
(2) Vacation-Based Pension Consideration Program. The
employee shall receive:
(A) Transition Bonus. A one-time transition bonus
in the amount of $2,000.
(B) Wage Increases. An increase in the employee's
annual salary in effect on the effective date of this
Section in the amount of $2,000.
(C) Additional Vacation Days. The employee who has
completed less than 15 years of continuous service will
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accrue 20 days of vacation per year, and vacation time
may be taken in increments of not less than 1/2 day at
a time, and may be taken at any time after it is
earned; however, if the employee has completed 15 years
of continuous service, or more, the employee will
accrue 25 days of vacation per year. Vacation schedules
will be approved in advance by the employee's
supervisor based on the operational needs of the
employee's Agency. Any unused vacation days will carry
over, year to year, but the employee may have no more
than 90 total accrued vacation days.
(D) Accelerated Overtime Calculation. If the
employee is FLSA non-exempt, overtime compensation
accrues upon the completion of 37.5 hours of work per
week.
(E) Eligibility for Flexible Work Schedules. The
employee is eligible for flexible work schedules as set
forth in Section 9 of this Act.
(3) Tenure-Based Pension Consideration Program. The
employee shall receive:
(A) Transition Bonus. A one-time transition bonus
in the amount of $2,000.
(B) Additional vacation days. Employees who
completed less than 15 years of continuous service will
accrue 20 days of vacation per year, and vacation time
may be taken in increments of not less than 1/2 day at
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a time, and may be taken at any time after it is
earned; however, if the employee has completed 15 years
of continuous service, or more, the employee will
accrue 25 days of vacation per year. Vacation schedules
will be approved in advance by the employee's
supervisor based on the operational needs of the
employee's Agency. Any unused vacation days will carry
over, year to year, but the employee may have no more
than 75 total accrued vacation days.
(C) Accelerated Overtime Calculation. If the
employee is FLSA non-exempt, overtime compensation
accrues upon the completion of 37.5 hours of work per
week.
(D) Eligibility for Flexible Work Schedules. The
employee is eligible for flexible work schedules as set
forth in Section 9 of this Act.
(E) Tenure Rights. The length of the employee's
continuous service will be considered as a relevant
factor whenever management makes any non-discipline
related employment decisions regarding the employee's
terms and conditions of employment with the following
additional entitlements: The employee will receive
priority over employees in the Financial-Based Pension
Consideration Program, the Vacation-Based Pension
Consideration Program, and all employees who did not
participate in any consideration program under the
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Employee Choice Pension Transition Program as set
forth in this Section 30 when it comes to (i) work
schedule preferences including flexible work schedule
preferences, (ii) access to voluntary overtime, (iii)
scheduling of vacations, and (iv) tenure preference in
hiring when applying for vacancies within the State
civil service, subject to requirements of bona fide
specialized skills, training, experience,
certifications, and other necessary requirements for
individuals in the position.
(F) Bumping in a Layoff. If the employee becomes
subject to a layoff, the employee may voluntarily
transfer to an otherwise encumbered position within
the same position classification at the same work
location or another work location with the Agency
within the same county, for which the employee is
qualified, unless the employer has established bona
fide specialized skills, training, experience,
certifications, and other necessary requirements for
individuals in the position, if the position is
encumbered by an employee who has less continuous
service. If the affected employee is also a participant
in the Tenure-Based Pension Consideration Program,
then the employee will be afforded an opportunity to
transfer into a different position by the same process.
Only employees who participate in the Tenure-Based
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Pension Consideration Program may exercise bumping
rights during a layoff.
(b) The Director of Central Management Services is
authorized to promulgate rules, regulations, and procedures to
implement this Section 30.
Section 90-25. The Illinois Pension Code is amended by
changing Sections 1-113, 1-113.1, 1-113.2, 1-113.3, 1-113.4,
1-113.4a, 1-113.5, 1-160, 2-108, 2-119.1, 2-126, 3-111,
3-111.1, 3-125, 3-127, 3-132, 3-135, 4-109, 4-109.1, 4-118,
4-120, 4-123, 4-128, 5-167.2, 5-168, 5-238, 6-128.2, 6-165,
6-229, 14-106, 15-111, 15-136, 16-121, 16-133.1, 16-136.1,
17-119, 17-127, 17-130.1, 17-142.1, 20-106, 20-121, 20-123,
20-124, 20-125, and by adding Sections 2-105.3, 2-105.4,
2-107.9, 2-110.3, 3-106.1, 3-106.2, 3-111.2, 3-111.5, 3-125.3,
3-125.4, 3-135.1, 3-135.5, 4-105e, 4-105f, 4-105g, 4-105h,
4-109.5, 4-109.8, 4-128.1, 4-128.5, 5-168.2, 5-238.5, 6-165.2,
6-229.5, 7-195.2, 7-195.3, 7-201.5, 7-225.5, 14-103.41,
14-103.42, 14-107.5, 14-120.5, 14-160, 15-108.3, 15-108.4,
15-112.1, 15-132.9, 16-107.1, 16-107.2, 16-121.1, 16-122.9,
17-106.2, 17-106.3, 17-116.8, 17-116.9, and 17-116.10 as
follows:
(40 ILCS 5/1-113) (from Ch. 108 1/2, par. 1-113)
Sec. 1-113. Investment authority of certain pension funds,
not including those established under Article 3 or 4. The
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investment authority of a board of trustees of a retirement
system or pension fund established under this Code shall, if so
provided in the Article establishing such retirement system or
pension fund, embrace the following investments:
(1) Bonds, notes and other direct obligations of the
United States Government; bonds, notes and other
obligations of any United States Government agency or
instrumentality, whether or not guaranteed; and
obligations the principal and interest of which are
guaranteed unconditionally by the United States Government
or by an agency or instrumentality thereof.
(2) Obligations of the Inter-American Development
Bank, the International Bank for Reconstruction and
Development, the African Development Bank, the
International Finance Corporation, and the Asian
Development Bank.
(3) Obligations of any state, or of any political
subdivision in Illinois, or of any county or city in any
other state having a population as shown by the last
federal census of not less than 30,000 inhabitants provided
that such political subdivision is not permitted by law to
become indebted in excess of 10% of the assessed valuation
of property therein and has not defaulted for a period
longer than 30 days in the payment of interest and
principal on any of its general obligations or indebtedness
during a period of 10 calendar years immediately preceding
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such investment.
(4) Nonconvertible bonds, debentures, notes and other
corporate obligations of any corporation created or
existing under the laws of the United States or any state,
district or territory thereof, provided there has been no
default on the obligations of the corporation or its
predecessor(s) during the 5 calendar years immediately
preceding the purchase. Up to 5% of the assets of a pension
fund established under Article 9 of this Code may be
invested in nonconvertible bonds, debentures, notes, and
other corporate obligations of corporations created or
existing under the laws of a foreign country, provided
there has been no default on the obligations of the
corporation or its predecessors during the 5 calendar years
immediately preceding the date of purchase.
(5) Obligations guaranteed by the Government of
Canada, or by any Province of Canada, or by any Canadian
city with a population of not less than 150,000
inhabitants, provided (a) they are payable in United States
currency and are exempt from any Canadian withholding tax;
(b) the investment in any one issue of bonds shall not
exceed 10% of the amount outstanding; and (c) the total
investments at book value in Canadian securities shall be
limited to 5% of the total investment account of the board
at book value.
(5.1) Direct obligations of the State of Israel for the
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payment of money, or obligations for the payment of money
which are guaranteed as to the payment of principal and
interest by the State of Israel, or common or preferred
stock or notes issued by a bank owned or controlled in
whole or in part by the State of Israel, on the following
conditions:
(a) The total investments in such obligations
shall not exceed 5% of the book value of the aggregate
investments owned by the board;
(b) The State of Israel shall not be in default in
the payment of principal or interest on any of its
direct general obligations on the date of such
investment;
(c) The bonds, stock or notes, and interest thereon
shall be payable in currency of the United States;
(d) The bonds shall (1) contain an option for the
redemption thereof after 90 days from date of purchase
or (2) either become due 5 years from the date of their
purchase or be subject to redemption 120 days after the
date of notice for redemption;
(e) The investment in these obligations has been
approved in writing by investment counsel employed by
the board, which counsel shall be a national or state
bank or trust company authorized to do a trust business
in the State of Illinois, or an investment advisor
qualified under the Federal Investment Advisors Act of
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1940 and registered under the Illinois Securities Act
of 1953;
(f) The fund or system making the investment shall
have at least $5,000,000 of net present assets.
(6) Notes secured by mortgages under Sections 203, 207,
220 and 221 of the National Housing Act which are insured
by the Federal Housing Commissioner, or his successor
assigns, or debentures issued by such Commissioner, which
are guaranteed as to principal and interest by the Federal
Housing Administration, or agency of the United States
Government, provided the aggregate investment shall not
exceed 20% of the total investment account of the board at
book value, and provided further that the investment in
such notes under Sections 220 and 221 shall in no event
exceed one-half of the maximum investment in notes under
this paragraph.
(7) Loans to veterans guaranteed in whole or part by
the United States Government pursuant to Title III of the
Act of Congress known as the "Servicemen's Readjustment Act
of 1944," 58 Stat. 284, 38 U.S.C. 693, as amended or
supplemented from time to time, provided such guaranteed
loans are liens upon real estate.
(8) Common and preferred stocks and convertible debt
securities authorized for investment of trust funds under
the laws of the State of Illinois, provided:
(a) the common stocks, except as provided in
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subparagraph (g), are listed on a national securities
exchange or board of trade, as defined in the federal
Securities Exchange Act of 1934, or quoted in the
National Association of Securities Dealers Automated
Quotation System (NASDAQ);
(b) the securities are of a corporation created or
existing under the laws of the United States or any
state, district or territory thereof, except that up to
5% of the assets of a pension fund established under
Article 9 of this Code may be invested in securities
issued by corporations created or existing under the
laws of a foreign country, if those securities are
otherwise in conformance with this paragraph (8);
(c) the corporation is not in arrears on payment
of dividends on its preferred stock;
(d) the total book value of all stocks and
convertible debt owned by any pension fund or
retirement system shall not exceed 40% of the aggregate
book value of all investments of such pension fund or
retirement system, except for a pension fund or
retirement system governed by Article 9 or 17, where
the total of all stocks and convertible debt shall not
exceed 50% of the aggregate book value of all fund
investments, and except for a pension fund or
retirement system governed by Article 13, where the
total market value of all stocks and convertible debt
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shall not exceed 65% of the aggregate market value of
all fund investments;
(e) the book value of stock and convertible debt
investments in any one corporation shall not exceed 5%
of the total investment account at book value in which
such securities are held, determined as of the date of
the investment, and the investments in the stock of any
one corporation shall not exceed 5% of the total
outstanding stock of such corporation, and the
investments in the convertible debt of any one
corporation shall not exceed 5% of the total amount of
such debt that may be outstanding;
(f) the straight preferred stocks or convertible
preferred stocks and convertible debt securities are
issued or guaranteed by a corporation whose common
stock qualifies for investment by the board; and
(g) that any common stocks not listed or quoted as
provided in subdivision 8(a) above be limited to the
following types of institutions: (a) any bank which is
a member of the Federal Deposit Insurance Corporation
having capital funds represented by capital stock,
surplus and undivided profits of at least $20,000,000;
(b) any life insurance company having capital funds
represented by capital stock, special surplus funds
and unassigned surplus totalling at least $50,000,000;
and (c) any fire or casualty insurance company, or a
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combination thereof, having capital funds represented
by capital stock, net surplus and voluntary reserves of
at least $50,000,000.
(9) Withdrawable accounts of State chartered and
federal chartered savings and loan associations insured by
the Federal Savings and Loan Insurance Corporation;
deposits or certificates of deposit in State and national
banks insured by the Federal Deposit Insurance
Corporation; and share accounts or share certificate
accounts in a State or federal credit union, the accounts
of which are insured as required by the Illinois Credit
Union Act or the Federal Credit Union Act, as applicable.
No bank or savings and loan association shall receive
investment funds as permitted by this subsection (9),
unless it has complied with the requirements established
pursuant to Section 6 of the Public Funds Investment Act.
(10) Trading, purchase or sale of listed options on
underlying securities owned by the board.
(11) Contracts and agreements supplemental thereto
providing for investments in the general account of a life
insurance company authorized to do business in Illinois.
(12) Conventional mortgage pass-through securities
which are evidenced by interests in Illinois
owner-occupied residential mortgages, having not less than
an "A" rating from at least one national securities rating
service. Such mortgages may have loan-to-value ratios up to
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95%, provided that any amount over 80% is insured by
private mortgage insurance. The pool of such mortgages
shall be insured by mortgage guaranty or equivalent
insurance, in accordance with industry standards.
(13) Pooled or commingled funds managed by a national
or State bank which is authorized to do a trust business in
the State of Illinois, shares of registered investment
companies as defined in the federal Investment Company Act
of 1940 which are registered under that Act, and separate
accounts of a life insurance company authorized to do
business in Illinois, where such pooled or commingled
funds, shares, or separate accounts are comprised of common
or preferred stocks, bonds, or money market instruments.
(14) Pooled or commingled funds managed by a national
or state bank which is authorized to do a trust business in
the State of Illinois, separate accounts managed by a life
insurance company authorized to do business in Illinois,
and commingled group trusts managed by an investment
adviser registered under the federal Investment Advisors
Act of 1940 (15 U.S.C. 80b-1 et seq.) and under the
Illinois Securities Law of 1953, where such pooled or
commingled funds, separate accounts or commingled group
trusts are comprised of real estate or loans upon real
estate secured by first or second mortgages. The total
investment in such pooled or commingled funds, commingled
group trusts and separate accounts shall not exceed 10% of
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the aggregate book value of all investments owned by the
fund.
(15) Investment companies which (a) are registered as
such under the Investment Company Act of 1940, (b) are
diversified, open-end management investment companies and
(c) invest only in money market instruments.
(16) Up to 10% of the assets of the fund may be
invested in investments not included in paragraphs (1)
through (15) of this Section, provided that such
investments comply with the requirements and restrictions
set forth in Sections 1-109, 1-109.1, 1-109.2, 1-110 and
1-111 of this Code.
The board shall have the authority to enter into such
agreements and to execute such documents as it determines to be
necessary to complete any investment transaction.
Any limitations herein set forth shall be applicable only
at the time of purchase and shall not require the liquidation
of any investment at any time.
All investments shall be clearly held and accounted for to
indicate ownership by such board. Such board may direct the
registration of securities in its own name or in the name of a
nominee created for the express purpose of registration of
securities by a national or state bank or trust company
authorized to conduct a trust business in the State of
Illinois.
Investments shall be carried at cost or at a value
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determined in accordance with generally accepted accounting
principles and accounting procedures approved by such board.
Beginning 12 months after the effective date of this
amendatory Act of the 99th General Assembly, this Section shall
not apply to any pension fund established under Article 3 or 4
of this Code.
(Source: P.A. 92-53, eff. 7-12-01.)
(40 ILCS 5/1-113.1)
Sec. 1-113.1. Investment authority of pension funds
established under Article 3 or 4. Until 12 months after the
effective date of this amendatory Act of the 99th General
Assembly, the The board of trustees of a police pension fund
established under Article 3 of this Code or firefighter pension
fund established under Article 4 of this Code shall draw
pension funds from the treasurer of the municipality and,
beginning January 1, 1998, invest any part thereof in the name
of the board in the items listed in Sections 1-113.2 through
1-113.4 according to the limitations and requirements of this
Article. These investments shall be made with the care, skill,
prudence, and diligence that a prudent person acting in like
capacity and familiar with such matters would use in the
conduct of an enterprise of like character with like aims.
Interest and any other income from the investments shall be
credited to the pension fund.
For the purposes of Sections 1-113.2 through 1-113.11, the
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"net assets" of a pension fund include both the cash and
invested assets of the pension fund.
(Source: P.A. 90-507, eff. 8-22-97.)
(40 ILCS 5/1-113.2)
Sec. 1-113.2. List of permitted investments for all Article
3 or 4 pension funds. Until 12 months after the effective date
of this amendatory Act of the 99th General Assembly, any Any
pension fund established under Article 3 or 4 may invest in the
following items:
(1) Interest bearing direct obligations of the United
States of America.
(2) Interest bearing obligations to the extent that they
are fully guaranteed or insured as to payment of principal and
interest by the United States of America.
(3) Interest bearing bonds, notes, debentures, or other
similar obligations of agencies of the United States of
America. For the purposes of this Section, "agencies of the
United States of America" includes: (i) the Federal National
Mortgage Association and the Student Loan Marketing
Association; (ii) federal land banks, federal intermediate
credit banks, federal farm credit banks, and any other entity
authorized to issue direct debt obligations of the United
States of America under the Farm Credit Act of 1971 or
amendments to that Act; (iii) federal home loan banks and the
Federal Home Loan Mortgage Corporation; and (iv) any agency
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created by Act of Congress that is authorized to issue direct
debt obligations of the United States of America.
(4) Interest bearing savings accounts or certificates of
deposit, issued by federally chartered banks or savings and
loan associations, to the extent that the deposits are insured
by agencies or instrumentalities of the federal government.
(5) Interest bearing savings accounts or certificates of
deposit, issued by State of Illinois chartered banks or savings
and loan associations, to the extent that the deposits are
insured by agencies or instrumentalities of the federal
government.
(6) Investments in credit unions, to the extent that the
investments are insured by agencies or instrumentalities of the
federal government.
(7) Interest bearing bonds of the State of Illinois.
(8) Pooled interest bearing accounts managed by the
Illinois Public Treasurer's Investment Pool in accordance with
the Deposit of State Moneys Act, interest bearing funds or
pooled accounts of the Illinois Metropolitan Investment Funds,
and interest bearing funds or pooled accounts managed,
operated, and administered by banks, subsidiaries of banks, or
subsidiaries of bank holding companies in accordance with the
laws of the State of Illinois.
(9) Interest bearing bonds or tax anticipation warrants of
any county, township, or municipal corporation of the State of
Illinois.
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(10) Direct obligations of the State of Israel, subject to
the conditions and limitations of item (5.1) of Section 1-113.
(11) Money market mutual funds managed by investment
companies that are registered under the federal Investment
Company Act of 1940 and the Illinois Securities Law of 1953 and
are diversified, open-ended management investment companies;
provided that the portfolio of the money market mutual fund is
limited to the following:
(i) bonds, notes, certificates of indebtedness,
treasury bills, or other securities that are guaranteed by
the full faith and credit of the United States of America
as to principal and interest;
(ii) bonds, notes, debentures, or other similar
obligations of the United States of America or its
agencies; and
(iii) short term obligations of corporations organized
in the United States with assets exceeding $400,000,000,
provided that (A) the obligations mature no later than 180
days from the date of purchase, (B) at the time of
purchase, the obligations are rated by at least 2 standard
national rating services at one of their 3 highest
classifications, and (C) the obligations held by the mutual
fund do not exceed 10% of the corporation's outstanding
obligations.
(12) General accounts of life insurance companies
authorized to transact business in Illinois.
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(13) Any combination of the following, not to exceed 10% of
the pension fund's net assets:
(i) separate accounts that are managed by life
insurance companies authorized to transact business in
Illinois and are comprised of diversified portfolios
consisting of common or preferred stocks, bonds, or money
market instruments;
(ii) separate accounts that are managed by insurance
companies authorized to transact business in Illinois, and
are comprised of real estate or loans upon real estate
secured by first or second mortgages; and
(iii) mutual funds that meet the following
requirements:
(A) the mutual fund is managed by an investment
company as defined and registered under the federal
Investment Company Act of 1940 and registered under the
Illinois Securities Law of 1953;
(B) the mutual fund has been in operation for at
least 5 years;
(C) the mutual fund has total net assets of $250
million or more; and
(D) the mutual fund is comprised of diversified
portfolios of common or preferred stocks, bonds, or
money market instruments.
(14) Corporate bonds managed through an investment advisor
must meet all of the following requirements:
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(1) The bonds must be rated as investment grade by one
of the 2 largest rating services at the time of purchase.
(2) If subsequently downgraded below investment grade,
the bonds must be liquidated from the portfolio within 90
days after being downgraded by the manager.
(Source: P.A. 96-1495, eff. 1-1-11.)
(40 ILCS 5/1-113.3)
Sec. 1-113.3. List of additional permitted investments for
pension funds with net assets of $2,500,000 or more.
(a) In addition to the items in Section 3-113.2, until 12
months after the effective date of this amendatory Act of the
99th General Assembly, a pension fund established under Article
3 or 4 that has net assets of at least $2,500,000 may invest a
portion of its net assets in the following items:
(1) Separate accounts that are managed by life
insurance companies authorized to transact business in
Illinois and are comprised of diversified portfolios
consisting of common or preferred stocks, bonds, or money
market instruments.
(2) Mutual funds that meet the following requirements:
(i) the mutual fund is managed by an investment
company as defined and registered under the federal
Investment Company Act of 1940 and registered under the
Illinois Securities Law of 1953;
(ii) the mutual fund has been in operation for at
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least 5 years;
(iii) the mutual fund has total net assets of $250
million or more; and
(iv) the mutual fund is comprised of diversified
portfolios of common or preferred stocks, bonds, or
money market instruments.
(b) A pension fund's total investment in the items
authorized under this Section shall not exceed 35% of the
market value of the pension fund's net present assets stated in
its most recent annual report on file with the Illinois
Department of Insurance.
(Source: P.A. 90-507, eff. 8-22-97.)
(40 ILCS 5/1-113.4)
Sec. 1-113.4. List of additional permitted investments for
pension funds with net assets of $5,000,000 or more.
(a) In addition to the items in Sections 1-113.2 and
1-113.3, until 12 months after the effective date of this
amendatory Act of the 99th General Assembly, a pension fund
established under Article 3 or 4 that has net assets of at
least $5,000,000 and has appointed an investment adviser under
Section 1-113.5 may, through that investment adviser, invest a
portion of its assets in common and preferred stocks authorized
for investments of trust funds under the laws of the State of
Illinois. The stocks must meet all of the following
requirements:
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(1) The common stocks are listed on a national
securities exchange or board of trade (as defined in the
federal Securities Exchange Act of 1934 and set forth in
Section 3.G of the Illinois Securities Law of 1953) or
quoted in the National Association of Securities Dealers
Automated Quotation System National Market System (NASDAQ
NMS).
(2) The securities are of a corporation created or
existing under the laws of the United States or any state,
district, or territory thereof and the corporation has been
in existence for at least 5 years.
(3) The corporation has not been in arrears on payment
of dividends on its preferred stock during the preceding 5
years.
(4) The market value of stock in any one corporation
does not exceed 5% of the cash and invested assets of the
pension fund, and the investments in the stock of any one
corporation do not exceed 5% of the total outstanding stock
of that corporation.
(5) The straight preferred stocks or convertible
preferred stocks are issued or guaranteed by a corporation
whose common stock qualifies for investment by the board.
(6) The issuer of the stocks has been subject to the
requirements of Section 12 of the federal Securities
Exchange Act of 1934 and has been current with the filing
requirements of Sections 13 and 14 of that Act during the
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preceding 3 years.
(b) A pension fund's total investment in the items
authorized under this Section and Section 1-113.3 shall not
exceed 35% of the market value of the pension fund's net
present assets stated in its most recent annual report on file
with the Illinois Department of Insurance.
(c) A pension fund that invests funds under this Section
shall electronically file with the Division any reports of its
investment activities that the Division may require, at the
times and in the format required by the Division.
(Source: P.A. 90-507, eff. 8-22-97.)
(40 ILCS 5/1-113.4a)
Sec. 1-113.4a. List of additional permitted investments
for Article 3 and 4 pension funds with net assets of
$10,000,000 or more.
(a) In addition to the items in Sections 1-113.2 and
1-113.3, until 12 months after the effective date of this
amendatory Act of the 99th General Assembly, a pension fund
established under Article 3 or 4 that has net assets of at
least $10,000,000 and has appointed an investment adviser, as
defined under Sections 1-101.4 and 1-113.5, may, through that
investment adviser, invest an additional portion of its assets
in common and preferred stocks and mutual funds.
(b) The stocks must meet all of the following requirements:
(1) The common stocks must be listed on a national
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securities exchange or board of trade (as defined in the
Federal Securities Exchange Act of 1934 and set forth in
paragraph G of Section 3 of the Illinois Securities Law of
1953) or quoted in the National Association of Securities
Dealers Automated Quotation System National Market System.
(2) The securities must be of a corporation in
existence for at least 5 years.
(3) The market value of stock in any one corporation
may not exceed 5% of the cash and invested assets of the
pension fund, and the investments in the stock of any one
corporation may not exceed 5% of the total outstanding
stock of that corporation.
(4) The straight preferred stocks or convertible
preferred stocks must be issued or guaranteed by a
corporation whose common stock qualifies for investment by
the board.
(c) The mutual funds must meet the following requirements:
(1) The mutual fund must be managed by an investment
company registered under the Federal Investment Company
Act of 1940 and registered under the Illinois Securities
Law of 1953.
(2) The mutual fund must have been in operation for at
least 5 years.
(3) The mutual fund must have total net assets of
$250,000,000 or more.
(4) The mutual fund must be comprised of a diversified
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portfolio of common or preferred stocks, bonds, or money
market instruments.
(d) A pension fund's total investment in the items
authorized under this Section and Section 1-113.3 shall not
exceed 50% effective July 1, 2011 and 55% effective July 1,
2012 of the market value of the pension fund's net present
assets stated in its most recent annual report on file with the
Department of Insurance.
(e) A pension fund that invests funds under this Section
shall electronically file with the Division any reports of its
investment activities that the Division may require, at the
time and in the format required by the Division.
(Source: P.A. 96-1495, eff. 1-1-11.)
(40 ILCS 5/1-113.5)
Sec. 1-113.5. Investment advisers and investment services
for all Article 3 or 4 pension funds.
(a) Until 12 months after the effective date of this
amendatory Act of the 99th General Assembly, the The board of
trustees of a pension fund may appoint investment advisers as
defined in Section 1-101.4. The board of any pension fund
investing in common or preferred stock under Section 1-113.4
shall appoint an investment adviser before making such
investments.
The investment adviser shall be a fiduciary, as defined in
Section 1-101.2, with respect to the pension fund and shall be
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one of the following:
(1) an investment adviser registered under the federal
Investment Advisers Act of 1940 and the Illinois Securities
Law of 1953;
(2) a bank or trust company authorized to conduct a
trust business in Illinois;
(3) a life insurance company authorized to transact
business in Illinois; or
(4) an investment company as defined and registered
under the federal Investment Company Act of 1940 and
registered under the Illinois Securities Law of 1953.
(a-5) Notwithstanding any other provision of law, a person
or entity that provides consulting services (referred to as a
"consultant" in this Section) to a pension fund with respect to
the selection of fiduciaries may not be awarded a contract to
provide those consulting services that is more than 5 years in
duration. No contract to provide such consulting services may
be renewed or extended. At the end of the term of a contract,
however, the contractor is eligible to compete for a new
contract. No person shall attempt to avoid or contravene the
restrictions of this subsection by any means. All offers from
responsive offerors shall be accompanied by disclosure of the
names and addresses of the following:
(1) The offeror.
(2) Any entity that is a parent of, or owns a
controlling interest in, the offeror.
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(3) Any entity that is a subsidiary of, or in which a
controlling interest is owned by, the offeror.
Beginning on July 1, 2008, a person, other than a trustee
or an employee of a pension fund or retirement system, may not
act as a consultant under this Section unless that person is at
least one of the following: (i) registered as an investment
adviser under the federal Investment Advisers Act of 1940 (15
U.S.C. 80b-1, et seq.); (ii) registered as an investment
adviser under the Illinois Securities Law of 1953; (iii) a
bank, as defined in the Investment Advisers Act of 1940; or
(iv) an insurance company authorized to transact business in
this State.
(b) All investment advice and services provided by an
investment adviser or a consultant appointed under this Section
shall be rendered pursuant to a written contract between the
investment adviser and the board, and in accordance with the
board's investment policy.
The contract shall include all of the following:
(1) acknowledgement in writing by the investment
adviser that he or she is a fiduciary with respect to the
pension fund;
(2) the board's investment policy;
(3) full disclosure of direct and indirect fees,
commissions, penalties, and any other compensation that
may be received by the investment adviser, including
reimbursement for expenses; and
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(4) a requirement that the investment adviser submit
periodic written reports, on at least a quarterly basis,
for the board's review at its regularly scheduled meetings.
All returns on investment shall be reported as net returns
after payment of all fees, commissions, and any other
compensation.
(b-5) Each contract described in subsection (b) shall also
include (i) full disclosure of direct and indirect fees,
commissions, penalties, and other compensation, including
reimbursement for expenses, that may be paid by or on behalf of
the investment adviser or consultant in connection with the
provision of services to the pension fund and (ii) a
requirement that the investment adviser or consultant update
the disclosure promptly after a modification of those payments
or an additional payment.
Within 30 days after the effective date of this amendatory
Act of the 95th General Assembly, each investment adviser and
consultant providing services on the effective date or subject
to an existing contract for the provision of services must
disclose to the board of trustees all direct and indirect fees,
commissions, penalties, and other compensation paid by or on
behalf of the investment adviser or consultant in connection
with the provision of those services and shall update that
disclosure promptly after a modification of those payments or
an additional payment.
A person required to make a disclosure under subsection (d)
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is also required to disclose direct and indirect fees,
commissions, penalties, or other compensation that shall or may
be paid by or on behalf of the person in connection with the
rendering of those services. The person shall update the
disclosure promptly after a modification of those payments or
an additional payment.
The disclosures required by this subsection shall be in
writing and shall include the date and amount of each payment
and the name and address of each recipient of a payment.
(c) Within 30 days after appointing an investment adviser
or consultant, the board shall submit a copy of the contract to
the Division of Insurance of the Department of Financial and
Professional Regulation.
(d) Investment services provided by a person other than an
investment adviser appointed under this Section, including but
not limited to services provided by the kinds of persons listed
in items (1) through (4) of subsection (a), shall be rendered
only after full written disclosure of direct and indirect fees,
commissions, penalties, and any other compensation that shall
or may be received by the person rendering those services.
(e) The board of trustees of each pension fund shall retain
records of investment transactions in accordance with the rules
of the Department of Financial and Professional Regulation.
(Source: P.A. 95-950, eff. 8-29-08; 96-6, eff. 4-3-09.)
(40 ILCS 5/1-160)
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Sec. 1-160. Provisions applicable to new hires.
(a) The provisions of this Section apply to a person who,
on or after January 1, 2011, first becomes a member or a
participant under any reciprocal retirement system or pension
fund established under this Code, other than a retirement
system or pension fund established under Article 2, 3, 4, 5, 6,
15 or 18 of this Code, notwithstanding any other provision of
this Code to the contrary, but do not apply to any self-managed
plan established under this Code, to any person with respect to
service as a sheriff's law enforcement employee under Article
7, or to any participant of the retirement plan established
under Section 22-101. Notwithstanding anything to the contrary
in this Section, for purposes of this Section, a person who
participated in a retirement system under Article 15 prior to
January 1, 2011 shall be deemed a person who first became a
member or participant prior to January 1, 2011 under any
retirement system or pension fund subject to this Section. The
changes made to this Section by Public Act 98-596 are a
clarification of existing law and are intended to be
retroactive to the effective date of Public Act 96-889,
notwithstanding the provisions of Section 1-103.1 of this Code.
(a-5) Beginning on the effective date of this amendatory
Act of the 99th General Assembly, the provisions of this
Section also apply to former Tier 1 members of the retirement
system established under Article 14 of this Code, who have
elected to become Tier 2 members in accordance with subdivision
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(a)(2) of Section 14-160 of this Code, but only with respect to
service performed or established under that system on or after
the effective date of that election as set forth in subdivision
(a-10) of Section 14-160 of this Code and to the benefits or
portions of benefits arising from that service, as specified
for multitier participants under Article 14. For such persons,
references in this Section to a person to whom this Section
applies, or to a person who first becomes a member or
participant of any retirement system or pension fund to which
this Section applies on or after January 1, 2011, shall be
deemed to refer only to service on or after the effective date
of that election as set forth in subdivision (a-10) of Section
14-160 of this Code.
(b) "Final average salary" means the average monthly (or
annual) salary obtained by dividing the total salary or
earnings calculated under the Article applicable to the member
or participant during the 96 consecutive months (or 8
consecutive years) of service within the last 120 months (or 10
years) of service in which the total salary or earnings
calculated under the applicable Article was the highest by the
number of months (or years) of service in that period. For the
purposes of a person who first becomes a member or participant
of any retirement system or pension fund to which this Section
applies on or after January 1, 2011, in this Code, "final
average salary" shall be substituted for the following:
(1) In Article 7 (except for service as sheriff's law
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enforcement employees), "final rate of earnings".
(2) In Articles 8, 9, 10, 11, and 12, "highest average
annual salary for any 4 consecutive years within the last
10 years of service immediately preceding the date of
withdrawal".
(3) In Article 13, "average final salary".
(4) In Article 14, "final average compensation".
(5) In Article 17, "average salary".
(6) In Section 22-207, "wages or salary received by him
at the date of retirement or discharge".
(b-5) Beginning on January 1, 2011, for all purposes under
this Code (including without limitation the calculation of
benefits and employee contributions), the annual earnings,
salary, or wages (based on the plan year) of a member or
participant to whom this Section applies shall not exceed
$106,800; however, that amount shall annually thereafter be
increased by the lesser of (i) 3% of that amount, including all
previous adjustments, or (ii) one-half the annual unadjusted
percentage increase (but not less than zero) in the consumer
price index-u for the 12 months ending with the September
preceding each November 1, including all previous adjustments.
For the purposes of this Section, "consumer price index-u"
means the index published by the Bureau of Labor Statistics of
the United States Department of Labor that measures the average
change in prices of goods and services purchased by all urban
consumers, United States city average, all items, 1982-84 =
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100. The new amount resulting from each annual adjustment shall
be determined by the Public Pension Division of the Department
of Insurance and made available to the boards of the retirement
systems and pension funds by November 1 of each year.
(c) A member or participant is entitled to a retirement
annuity upon written application if he or she has attained age
67 (beginning January 1, 2015, age 65 with respect to service
under Article 8, 11, or 12 of this Code that is subject to this
Section) and has at least 10 years of service credit and is
otherwise eligible under the requirements of the applicable
Article.
A member or participant who has attained age 62 (beginning
January 1, 2015, age 60 with respect to service under Article
8, 11, or 12 of this Code that is subject to this Section) and
has at least 10 years of service credit and is otherwise
eligible under the requirements of the applicable Article may
elect to receive the lower retirement annuity provided in
subsection (d) of this Section.
(d) The retirement annuity of a member or participant who
is retiring after attaining age 62 (beginning January 1, 2015,
age 60 with respect to service under Article 8, 11, or 12 of
this Code that is subject to this Section) with at least 10
years of service credit shall be reduced by one-half of 1% for
each full month that the member's age is under age 67
(beginning January 1, 2015, age 65 with respect to service
under Article 8, 11, or 12 of this Code that is subject to this
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Section).
(e) Any retirement annuity or supplemental annuity shall be
subject to annual increases on the January 1 occurring either
on or after the attainment of age 67 (beginning January 1,
2015, age 65 with respect to service under Article 8, 11, or 12
of this Code that is subject to this Section) or the first
anniversary (the second anniversary with respect to service
under Article 8 or 11) of the annuity start date, whichever is
later. Each annual increase shall be calculated at 3% or
one-half the annual unadjusted percentage increase (but not
less than zero) in the consumer price index-u for the 12 months
ending with the September preceding each November 1, whichever
is less, of the originally granted retirement annuity. If the
annual unadjusted percentage change in the consumer price
index-u for the 12 months ending with the September preceding
each November 1 is zero or there is a decrease, then the
annuity shall not be increased.
Notwithstanding any provision of this Section to the
contrary, with respect to service under Article 8 or 11 of this
Code that is subject to this Section, no annual increase under
this subsection shall be paid or accrue to any person in year
2025. In all other years, the Fund shall continue to pay annual
increases as provided in this Section.
Notwithstanding Section 1-103.1 of this Code, the changes
in this amendatory Act of the 98th General Assembly are
applicable without regard to whether the employee was in active
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service on or after the effective date of this amendatory Act
of the 98th General Assembly.
(f) The initial survivor's or widow's annuity of an
otherwise eligible survivor or widow of a retired member or
participant who first became a member or participant on or
after January 1, 2011 shall be in the amount of 66 2/3% of the
retired member's or participant's retirement annuity at the
date of death. In the case of the death of a member or
participant who has not retired and who first became a member
or participant on or after January 1, 2011, eligibility for a
survivor's or widow's annuity shall be determined by the
applicable Article of this Code. The initial benefit shall be
66 2/3% of the earned annuity without a reduction due to age. A
child's annuity of an otherwise eligible child shall be in the
amount prescribed under each Article if applicable. Any
survivor's or widow's annuity shall be increased (1) on each
January 1 occurring on or after the commencement of the annuity
if the deceased member died while receiving a retirement
annuity or (2) in other cases, on each January 1 occurring
after the first anniversary of the commencement of the annuity.
Each annual increase shall be calculated at 3% or one-half the
annual unadjusted percentage increase (but not less than zero)
in the consumer price index-u for the 12 months ending with the
September preceding each November 1, whichever is less, of the
originally granted survivor's annuity. If the annual
unadjusted percentage change in the consumer price index-u for
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the 12 months ending with the September preceding each November
1 is zero or there is a decrease, then the annuity shall not be
increased.
(g) The benefits in Section 14-110 apply only if the person
is a State policeman, a fire fighter in the fire protection
service of a department, or a security employee of the
Department of Corrections or the Department of Juvenile
Justice, as those terms are defined in subsection (b) of
Section 14-110. A person who meets the requirements of this
Section is entitled to an annuity calculated under the
provisions of Section 14-110, in lieu of the regular or minimum
retirement annuity, only if the person has withdrawn from
service with not less than 20 years of eligible creditable
service and has attained age 60, regardless of whether the
attainment of age 60 occurs while the person is still in
service.
(h) If a person who first becomes a member or a participant
of a retirement system or pension fund subject to this Section
on or after January 1, 2011 is receiving a retirement annuity
or retirement pension under that system or fund and becomes a
member or participant under any other system or fund created by
this Code and is employed on a full-time basis, except for
those members or participants exempted from the provisions of
this Section under subsection (a) of this Section, then the
person's retirement annuity or retirement pension under that
system or fund (or the Tier 2 portion of that annuity in the
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case of a person subject to subsection (a-5) of this Section)
shall be suspended during that employment. Upon termination of
that employment, the person's retirement annuity or retirement
pension payments shall resume and be recalculated if
recalculation is provided for under the applicable Article of
this Code.
If a person who first becomes a member of a retirement
system or pension fund subject to this Section on or after
January 1, 2012 and is receiving a retirement annuity or
retirement pension under that system or fund and accepts on a
contractual basis a position to provide services to a
governmental entity from which he or she has retired, then that
person's annuity or retirement pension earned as an active
employee of the employer (or the Tier 2 portion of that annuity
in the case of a person subject to subsection (a-5) of this
Section) shall be suspended during that contractual service. A
person receiving an annuity or retirement pension under this
Code shall notify the pension fund or retirement system from
which he or she is receiving an annuity or retirement pension,
as well as his or her contractual employer, of his or her
retirement status before accepting contractual employment. A
person who fails to submit such notification shall be guilty of
a Class A misdemeanor and required to pay a fine of $1,000.
Upon termination of that contractual employment, the person's
retirement annuity or retirement pension payments shall resume
and, if appropriate, be recalculated under the applicable
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provisions of this Code.
(i) (Blank).
(j) In the case of a conflict between the provisions of
this Section and any other provision of this Code (other than
provisions relating to multitier participants and their
benefits), the provisions of this Section shall control.
(Source: P.A. 97-609, eff. 1-1-12; 98-92, eff. 7-16-13; 98-596,
eff. 11-19-13; 98-622, eff. 6-1-14; 98-641, eff. 6-9-14.)
(40 ILCS 5/2-105.3 new)
Sec. 2-105.3. Tier 1 employee. "Tier 1 employee": A
participant who first became a participant before January 1,
2011.
(40 ILCS 5/2-105.4 new)
Sec. 2-105.4. Tier 1 retiree. "Tier 1 retiree" means a
former Tier 1 employee who is receiving a retirement annuity.
(40 ILCS 5/2-107.9 new)
Sec. 2-107.9. Future increase in income. "Future increase
in income": Any increase in income in any form offered for
service as a member under this Article after the effective date
of this Section that would qualify as "salary", as defined in
Section 2-108, but for the fact that the increase in income was
offered to the member on the condition that it not qualify as
salary and was accepted by the member subject to that
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condition.
(40 ILCS 5/2-108) (from Ch. 108 1/2, par. 2-108)
Sec. 2-108. Salary. "Salary": (1) For members of the
General Assembly, the total compensation paid to the member by
the State for one year of service, including the additional
amounts, if any, paid to the member as an officer pursuant to
Section 1 of "An Act in relation to the compensation and
emoluments of the members of the General Assembly", approved
December 6, 1907, as now or hereafter amended.
(2) For the State executive officers specified in Section
2-105, the total compensation paid to the member for one year
of service.
(3) For members of the System who are participants under
Section 2-117.1, or who are serving as Clerk or Assistant Clerk
of the House of Representatives or Secretary or Assistant
Secretary of the Senate, the total compensation paid to the
member for one year of service, but not to exceed the salary of
the highest salaried officer of the General Assembly.
However, in the event that federal law results in any
participant receiving imputed income based on the value of
group term life insurance provided by the State, such imputed
income shall not be included in salary for the purposes of this
Article.
Notwithstanding any other provision of this Section,
"salary" does not include any future increase in income that is
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offered for service as a member under this Article pursuant to
the requirements of subsection (c) of Section 2-110.3 and
accepted by a Tier 1 employee, or a Tier 1 retiree returning to
active service, who has made the election under paragraph (2)
of subsection (a) of Section 2-110.3.
(Source: P.A. 86-27; 86-273; 86-1028; 86-1488.)
(40 ILCS 5/2-110.3 new)
Sec. 2-110.3. Election by Tier 1 employees.
(a) Each Tier 1 employee shall make an irrevocable election
either:
(1) to agree to have the amount of the automatic annual
increases in his or her retirement annuity that are
otherwise provided for in this Article calculated,
instead, as provided in subsection (e) of Section 1-160; or
(2) to not agree to paragraph (1) of this subsection.
The election required under this subsection (a) shall be
made by each Tier 1 employee no earlier than 60 days after the
effective date of this Section and no later than 150 days after
the effective date of this Section, except that a person who
returns to active service as a Tier 1 employee under this
Article on or after 150 days after the effective date of this
Section and has not yet made an election under this Section
must make the election under this subsection (a) within 30 days
after returning to active service as a Tier 1 employee.
If a Tier 1 employee fails for any reason to make a
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required election under this subsection within the time
specified, then the employee shall be deemed to have made the
election under paragraph (2) of this subsection.
(a-10) All elections under subsection (a) that are made or
deemed to be made before 150 days after the effective date of
this Section shall take effect 180 days after the effective
date of this Section. Elections that are made or deemed to be
made on or after 150 days after the effective date of this
Section shall take effect on the first day of the month
following the month in which the election is made or deemed to
be made.
(b) As adequate and legal consideration provided under this
amendatory Act of the 99th General Assembly for making an
election under paragraph (1) of subsection (a) of this Section,
any future increases in income offered for service as a member
under this Article to a Tier 1 employee who has made an
election under paragraph (1) of subsection (a) of this Section
shall be offered expressly and irrevocably as constituting
salary under Section 2-108.
(c) A Tier 1 employee who makes the election under
paragraph (2) of subsection (a) of this Section shall not be
subject to paragraph (1) of subsection (a) of this Section.
However, any future increases in income offered for service as
a member under this Article to a Tier 1 employee who has made
the election under paragraph (2) of subsection (a) of this
Section shall be offered expressly and irrevocably as not
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constituting salary under Section 2-108, and the member may not
accept any future increase in income that is offered in
violation of this requirement.
(d) The System shall make a good faith effort to contact
each Tier 1 employee subject to this Section. The System shall
mail information describing the required election to each Tier
1 employee by United States Postal Service mail to his or her
last known address on file with the System. If the Tier 1
employee is not responsive to other means of contact, it is
sufficient for the System to publish the details of any
required elections on its website or to publish those details
in a regularly published newsletter or other existing public
forum.
Tier 1 employees who are subject to this Section shall be
provided with an election packet containing information
regarding their options, as well as the forms necessary to make
the required election. Upon request, the System shall offer
Tier 1 employees an opportunity to receive information from the
System before making the required election. The information may
be provided through video materials, group presentations,
individual consultation with a member or authorized
representative of the System in person or by telephone or other
electronic means, or any combination of those methods. The
System shall not provide advice or counseling with respect to
which election a Tier 1 employee should make or specific to the
legal or tax circumstances of or consequences to the Tier 1
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employee.
The System shall inform Tier 1 employees in the election
packet required under this subsection that the Tier 1 employee
may also wish to obtain information and legal counsel relating
to the election required under this Section from any other
available source, including, but not limited to, labor
organizations and employee-chosen legal counsel.
In no event shall the System, its staff, or the Board be
held liable for any information given to a member, beneficiary,
or annuitant regarding the elections under this Section. The
System shall coordinate with the Illinois Department of Central
Management Services and each other retirement system
administering an election in accordance with this amendatory
Act of the 99th General Assembly to provide information
concerning the impact of the election set forth in this
Section.
(e) Notwithstanding any other provision of law, any future
increases in income offered for service as a member must be
offered expressly and irrevocably as not constituting "salary"
under Section 2-108 to any Tier 1 employee, or Tier 1 retiree
returning to active service, who has made an election under
paragraph (2) of subsection (a) of Section 2-110.3. A Tier 1
employee, or Tier 1 retiree returning to active service, who
has made an election under paragraph (2) or subsection (a) of
Section 2-110.3 shall not accept any future increase in income
that is offered for service as a member under this Article in
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violation of the requirement set forth in this subsection.
(f) A member's election under this Section is not a
prohibited election under subdivision (j)(1) of Section 1-119
of this Code.
(g) No provision of this Section shall be interpreted in a
way that would cause the System to cease to be a qualified plan
under Section 401(a) of the Internal Revenue Code of 1986.
(40 ILCS 5/2-119.1) (from Ch. 108 1/2, par. 2-119.1)
Sec. 2-119.1. Automatic increase in retirement annuity.
(a) Except as provided in subsection (a-1), a A participant
who retires after June 30, 1967, and who has not received an
initial increase under this Section before the effective date
of this amendatory Act of 1991, shall, in January or July next
following the first anniversary of retirement, whichever
occurs first, and in the same month of each year thereafter,
but in no event prior to age 60, have the amount of the
originally granted retirement annuity increased as follows:
for each year through 1971, 1 1/2%; for each year from 1972
through 1979, 2%; and for 1980 and each year thereafter, 3%.
Annuitants who have received an initial increase under this
subsection prior to the effective date of this amendatory Act
of 1991 shall continue to receive their annual increases in the
same month as the initial increase.
(a-1) Notwithstanding any other provision of this Article,
for a Tier 1 employee who made the election under paragraph (1)
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of subsection (a) of Section 2-110.3, the amount of each
automatic annual increase in retirement annuity occurring on or
after the effective date of that election, other than the
initial increase, shall be calculated as provided in subsection
(e) of Section 1-160.
(b) Beginning January 1, 1990, for eligible participants
who remain in service after attaining 20 years of creditable
service, the 3% increases provided under subsection (a) shall
begin to accrue on the January 1 next following the date upon
which the participant (1) attains age 55, or (2) attains 20
years of creditable service, whichever occurs later, and shall
continue to accrue while the participant remains in service;
such increases shall become payable on January 1 or July 1,
whichever occurs first, next following the first anniversary of
retirement. For any person who has service credit in the System
for the entire period from January 15, 1969 through December
31, 1992, regardless of the date of termination of service, the
reference to age 55 in clause (1) of this subsection (b) shall
be deemed to mean age 50.
This subsection (b) does not apply to any person who first
becomes a member of the System after August 8, 2003 (the
effective date of Public Act 93-494) this amendatory Act of the
93rd General Assembly.
(b-5) Notwithstanding any other provision of this Article,
a participant who first becomes a participant on or after
January 1, 2011 (the effective date of Public Act 96-889)
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shall, in January or July next following the first anniversary
of retirement, whichever occurs first, and in the same month of
each year thereafter, but in no event prior to age 67, have the
amount of the retirement annuity then being paid increased by
3% or the annual unadjusted percentage increase in the Consumer
Price Index for All Urban Consumers as determined by the Public
Pension Division of the Department of Insurance under
subsection (a) of Section 2-108.1, whichever is less.
(c) The foregoing provisions relating to automatic
increases are not applicable to a participant who retires
before having made contributions (at the rate prescribed in
Section 2-126) for automatic increases for less than the
equivalent of one full year. However, in order to be eligible
for the automatic increases, such a participant may make
arrangements to pay to the system the amount required to bring
the total contributions for the automatic increase to the
equivalent of one year's contributions based upon his or her
last salary.
(d) A participant who terminated service prior to July 1,
1967, with at least 14 years of service is entitled to an
increase in retirement annuity beginning January, 1976, and to
additional increases in January of each year thereafter.
The initial increase shall be 1 1/2% of the originally
granted retirement annuity multiplied by the number of full
years that the annuitant was in receipt of such annuity prior
to January 1, 1972, plus 2% of the originally granted
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retirement annuity for each year after that date. The
subsequent annual increases shall be at the rate of 2% of the
originally granted retirement annuity for each year through
1979 and at the rate of 3% for 1980 and thereafter.
(e) Beginning January 1, 1990, and except as provided in
subsection (a-1) or (b-5), all automatic annual increases
payable under this Section shall be calculated as a percentage
of the total annuity payable at the time of the increase,
including previous increases granted under this Article.
(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
(40 ILCS 5/2-126) (from Ch. 108 1/2, par. 2-126)
Sec. 2-126. Contributions by participants.
(a) Each participant shall contribute toward the cost of
his or her retirement annuity a percentage of each payment of
salary received by him or her for service as a member as
follows: for service between October 31, 1947 and January 1,
1959, 5%; for service between January 1, 1959 and June 30,
1969, 6%; for service between July 1, 1969 and January 10,
1973, 6 1/2%; for service after January 10, 1973, 7%; for
service after December 31, 1981, 8 1/2%.
(b) Beginning August 2, 1949, each male participant, and
from July 1, 1971, each female participant shall contribute
towards the cost of the survivor's annuity 2% of salary.
A participant who has no eligible survivor's annuity
beneficiary may elect to cease making contributions for
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survivor's annuity under this subsection. A survivor's annuity
shall not be payable upon the death of a person who has made
this election, unless prior to that death the election has been
revoked and the amount of the contributions that would have
been paid under this subsection in the absence of the election
is paid to the System, together with interest at the rate of 4%
per year from the date the contributions would have been made
to the date of payment.
(c) Beginning July 1, 1967, each participant shall
contribute 1% of salary towards the cost of automatic increase
in annuity provided in Section 2-119.1. These contributions
shall be made concurrently with contributions for retirement
annuity purposes.
(d) In addition, each participant serving as an officer of
the General Assembly shall contribute, for the same purposes
and at the same rates as are required of a regular participant,
on each additional payment received as an officer. If the
participant serves as an officer for at least 2 but less than 4
years, he or she shall contribute an amount equal to the amount
that would have been contributed had the participant served as
an officer for 4 years. Persons who serve as officers in the
87th General Assembly but cannot receive the additional payment
to officers because of the ban on increases in salary during
their terms may nonetheless make contributions based on those
additional payments for the purpose of having the additional
payments included in their highest salary for annuity purposes;
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however, persons electing to make these additional
contributions must also pay an amount representing the
corresponding employer contributions, as calculated by the
System.
(e) Notwithstanding any other provision of this Article,
the required contribution of a participant shall not be based
on any salary in excess of the salary limitation applicable to
that participant under Section 2-108 or who first becomes a
participant on or after January 1, 2011 shall not exceed the
contribution that would be due under this Article if that
participant's highest salary for annuity purposes were
$106,800, plus any increases in that amount under Section
2-108.1.
(Source: P.A. 96-1490, eff. 1-1-11.)
(40 ILCS 5/3-106.1 new)
Sec. 3-106.1. Tier 1 employee. "Tier 1 employee": A police
officer under this Article who first became a member or
participant in this Article of this Code before January 1,
2011.
(40 ILCS 5/3-106.2 new)
Sec. 3-106.2. Tier 1 retiree. "Tier 1 retiree": A former
Tier 1 employee who is receiving a retirement annuity.
(40 ILCS 5/3-111) (from Ch. 108 1/2, par. 3-111)
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Sec. 3-111. Pension.
(a) A police officer age 50 or more with 20 or more years
of creditable service, who is not a participant in the
self-managed plan under Section 3-109.3 and who is no longer in
service as a police officer, shall receive a pension of 1/2 of
the salary attached to the rank held by the officer on the
police force for one year immediately prior to retirement or,
beginning July 1, 1987 for persons terminating service on or
after that date, the salary attached to the rank held on the
last day of service or for one year prior to the last day,
whichever is greater. The pension shall be increased by 2.5% of
such salary for each additional year of service over 20 years
of service through 30 years of service, to a maximum of 75% of
such salary.
The changes made to this subsection (a) by this amendatory
Act of the 91st General Assembly apply to all pensions that
become payable under this subsection on or after January 1,
1999. All pensions payable under this subsection that began on
or after January 1, 1999 and before the effective date of this
amendatory Act shall be recalculated, and the amount of the
increase accruing for that period shall be payable to the
pensioner in a lump sum.
(a-5) No pension in effect on or granted after June 30,
l973 shall be less than $200 per month. Beginning July 1, 1987,
the minimum retirement pension for a police officer having at
least 20 years of creditable service shall be $400 per month,
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without regard to whether or not retirement occurred prior to
that date. If the minimum pension established in Section
3-113.1 is greater than the minimum provided in this
subsection, the Section 3-113.1 minimum controls.
(b) A police officer mandatorily retired from service due
to age by operation of law, having at least 8 but less than 20
years of creditable service, shall receive a pension equal to 2
1/2% of the salary attached to the rank he or she held on the
police force for one year immediately prior to retirement or,
beginning July 1, 1987 for persons terminating service on or
after that date, the salary attached to the rank held on the
last day of service or for one year prior to the last day,
whichever is greater, for each year of creditable service.
A police officer who retires or is separated from service
having at least 8 years but less than 20 years of creditable
service, who is not mandatorily retired due to age by operation
of law, and who does not apply for a refund of contributions at
his or her last separation from police service, shall receive a
pension upon attaining age 60 equal to 2.5% of the salary
attached to the rank held by the police officer on the police
force for one year immediately prior to retirement or,
beginning July 1, 1987 for persons terminating service on or
after that date, the salary attached to the rank held on the
last day of service or for one year prior to the last day,
whichever is greater, for each year of creditable service.
(c) A police officer no longer in service who has at least
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one but less than 8 years of creditable service in a police
pension fund but meets the requirements of this subsection (c)
shall be eligible to receive a pension from that fund equal to
2.5% of the salary attached to the rank held on the last day of
service under that fund or for one year prior to that last day,
whichever is greater, for each year of creditable service in
that fund. The pension shall begin no earlier than upon
attainment of age 60 (or upon mandatory retirement from the
fund by operation of law due to age, if that occurs before age
60) and in no event before the effective date of this
amendatory Act of 1997.
In order to be eligible for a pension under this subsection
(c), the police officer must have at least 8 years of
creditable service in a second police pension fund under this
Article and be receiving a pension under subsection (a) or (b)
of this Section from that second fund. The police officer need
not be in service on or after the effective date of this
amendatory Act of 1997.
(d) Notwithstanding any other provision of this Article,
the provisions of this subsection (d) apply to a person who is
not a participant in the self-managed plan under Section
3-109.3 and who first becomes a police officer under this
Article on or after January 1, 2011 and before January 1, 2016.
A police officer age 55 or more who has 10 or more years of
service in that capacity shall be entitled at his option to
receive a monthly pension for his service as a police officer
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computed by multiplying 2.5% for each year of such service by
his or her final average salary.
The pension of a police officer who is retiring after
attaining age 50 with 10 or more years of creditable service
shall be reduced by one-half of 1% for each month that the
police officer's age is under age 55.
The maximum pension under this subsection (d) shall be 75%
of final average salary.
For the purposes of this subsection (d), "final average
salary" means the average monthly salary obtained by dividing
the total salary of the police officer during the 96
consecutive months of service within the last 120 months of
service in which the total salary was the highest by the number
of months of service in that period.
Beginning on January 1, 2011, for all purposes under this
Code (including without limitation the calculation of benefits
and employee contributions), the annual salary based on the
plan year of a member or participant to whom this Section
applies shall not exceed $106,800; however, that amount shall
annually thereafter be increased by the lesser of (i) 3% of
that amount, including all previous adjustments, or (ii)
one-half the annual unadjusted percentage increase (but not
less than zero) in the consumer price index-u for the 12 months
ending with the September preceding each November 1, including
all previous adjustments.
(Source: P.A. 96-1495, eff. 1-1-11.)
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(40 ILCS 5/3-111.1) (from Ch. 108 1/2, par. 3-111.1)
Sec. 3-111.1. Increase in pension.
(a) Except as provided in subsection (e), the monthly
pension of a police officer who retires after July 1, 1971, and
prior to January 1, 1986, shall be increased, upon either the
first of the month following the first anniversary of the date
of retirement if the officer is 60 years of age or over at
retirement date, or upon the first day of the month following
attainment of age 60 if it occurs after the first anniversary
of retirement, by 3% of the originally granted pension and by
an additional 3% of the originally granted pension in January
of each year thereafter.
(b) The monthly pension of a police officer who retired
from service with 20 or more years of service, on or before
July 1, 1971, shall be increased in January of the year
following the year of attaining age 65 or in January of 1972,
if then over age 65, by 3% of the originally granted pension
for each year the police officer received pension payments. In
each January thereafter, he or she shall receive an additional
increase of 3% of the original pension.
(c) The monthly pension of a police officer who retires on
disability or is retired for disability shall be increased in
January of the year following the year of attaining age 60, by
3% of the original grant of pension for each year he or she
received pension payments. In each January thereafter, the
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police officer shall receive an additional increase of 3% of
the original pension.
(d) The monthly pension of a police officer who retires
after January 1, 1986, shall be increased, upon either the
first of the month following the first anniversary of the date
of retirement if the officer is 55 years of age or over, or
upon the first day of the month following attainment of age 55
if it occurs after the first anniversary of retirement, by 1/12
of 3% of the originally granted pension for each full month
that has elapsed since the pension began, and by an additional
3% of the originally granted pension in January of each year
thereafter.
The changes made to this subsection (d) by this amendatory
Act of the 91st General Assembly apply to all initial increases
that become payable under this subsection on or after January
1, 1999. All initial increases that became payable under this
subsection on or after January 1, 1999 and before the effective
date of this amendatory Act shall be recalculated and the
additional amount accruing for that period, if any, shall be
payable to the pensioner in a lump sum.
(e) Notwithstanding the provisions of subsection (a), upon
the first day of the month following (1) the first anniversary
of the date of retirement, or (2) the attainment of age 55, or
(3) July 1, 1987, whichever occurs latest, the monthly pension
of a police officer who retired on or after January 1, 1977 and
on or before January 1, 1986, and did not receive an increase
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under subsection (a) before July 1, 1987, shall be increased by
3% of the originally granted monthly pension for each full year
that has elapsed since the pension began, and by an additional
3% of the originally granted pension in each January
thereafter. The increases provided under this subsection are in
lieu of the increases provided in subsection (a).
(f) Notwithstanding the other provisions of this Section,
except as otherwise provided in subsection (h), if applicable,
beginning beginning with increases granted on or after July 1,
1993, the second and all subsequent automatic annual increases
granted under subsection (a), (b), (d), or (e) of this Section
shall be calculated as 3% of the amount of pension payable at
the time of the increase, including any increases previously
granted under this Section, rather than 3% of the originally
granted pension amount. Section 1-103.1 does not apply to this
subsection (f).
(g) Notwithstanding any other provision of this Article,
the monthly pension of a person who first becomes a police
officer under this Article on or after January 1, 2011 shall be
increased on the January 1 occurring either on or after the
attainment of age 60 or the first anniversary of the pension
start date, whichever is later. Each annual increase shall be
calculated at 3% or one-half the annual unadjusted percentage
increase (but not less than zero) in the consumer price index-u
for the 12 months ending with the September preceding each
November 1, whichever is less, of the originally granted
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pension. If the annual unadjusted percentage change in the
consumer price index-u for a 12-month period ending in
September is zero or, when compared with the preceding period,
decreases, then the pension shall not be increased.
For the purposes of this subsection (g), "consumer price
index-u" means the index published by the Bureau of Labor
Statistics of the United States Department of Labor that
measures the average change in prices of goods and services
purchased by all urban consumers, United States city average,
all items, 1982-84 = 100. The new amount resulting from each
annual adjustment shall be determined by the Public Pension
Division of the Department of Insurance and made available to
the boards of the pension funds.
(h) Notwithstanding any other provision of this Article,
for a Tier 1 employee who made the election under paragraph (1)
of subsection (a) of Section 3-111.2, the amount of each
automatic annual increase in pension occurring on or after the
effective date of that election, other than the initial
increase, shall be calculated as provided in subsection (g) of
this Section.
(Source: P.A. 96-1495, eff. 1-1-11.)
(40 ILCS 5/3-111.2 new)
Sec. 3-111.2. Election by Tier 1 employees.
(a) Each Tier 1 employee shall make an irrevocable election
either:
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(1) to agree to have the amount of the automatic annual
increases in his or her retirement annuity that are
otherwise provided for in this Article calculated,
instead, as provided in subsection (g) of Section 3-111.1;
or
(2) to not agree to paragraph (1) of this subsection.
The election required under this subsection (a) shall be
made by each Tier 1 employee no earlier than 60 days after the
effective date of this Section and no later than 150 days after
the effective date of this Section, except that a person who
returns to active service as a Tier 1 employee under this
Article on or after 150 days after the effective date of this
Section and has not yet made an election under this Section
must make the election under this subsection (a) within 30 days
after returning to active service as a Tier 1 employee.
If a Tier 1 employee fails for any reason to make a
required election under this subsection within the time
specified, then the employee shall be deemed to have made the
election under paragraph (2) of this subsection.
(a-10) All elections under subsection (a) that are made or
deemed to be made before 150 days after the effective date of
this Section shall take effect 180 days after the effective
date of this Section. Elections that are made or deemed to be
made on or after 150 days after the effective date of this
Section shall take effect on the first day of the month
following the month in which the election is made or deemed to
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be made.
(b) As adequate and legal consideration provided under this
amendatory Act of the 99th General Assembly for making an
election under paragraph (1) of subsection (a) of this Section,
any future increase in income offered by an employer under this
Article to a Tier 1 employee who has made an election under
paragraph (1) of subsection (a) of this Section shall be
offered expressly and irrevocably as constituting "salary" for
purposes of this Article.
(c) A Tier 1 employee who has made the election under
paragraph (2) of subsection (a) of this Section shall not be
subject to paragraph (1) of subsection (a) of this Section.
However, any future increases in income offered by an employer
under this Article to a Tier 1 employee who has made the
election under paragraph (2) of subsection (a) of this Section
shall be offered by the employer expressly and irrevocably as
not constituting "salary" for purposes of this Article, and the
employee may not accept any future increase in income that is
offered in violation of this requirement.
(d) The fund shall make a good faith effort to contact each
Tier 1 employee subject to this Section. The fund shall mail
information describing the required election to each Tier 1
employee by United States Postal Service mail to his or her
last known address on file with the fund. If the Tier 1
employee is not responsive to other means of contact, it is
sufficient for the fund to publish the details of any required
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elections on its website or to publish those details in a
regularly published newsletter or other existing public forum.
Tier 1 employees who are subject to this Section shall be
provided with an election packet containing information
regarding their options, as well as the forms necessary to make
the required election. Upon request, the fund shall offer Tier
1 employees an opportunity to receive information from the fund
before making the required election. The information may
consist of video materials, group presentations, individual
consultation with a member or authorized representative of the
fund in person or by telephone or other electronic means, or
any combination of those methods. The fund shall not provide
advice or counseling with respect to which election a Tier 1
employee should make or specific to the legal or tax
circumstances of or consequences to the Tier 1 employee.
The fund shall inform Tier 1 employees in the election
packet required under this subsection that the Tier 1 employee
may also wish to obtain information and legal counsel relating
to the election required under this Section from any other
available source, including, but not limited to, labor
organizations and employee-chosen legal counsel.
In no event shall the fund, its staff, or the board be held
liable for any information given to a member, beneficiary, or
annuitant regarding the elections under this Section. The fund
shall coordinate with the Illinois Department of Central
Management Services and each other retirement system
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administering an election in accordance with this amendatory
Act of the 99th General Assembly to provide information
concerning the impact of the election set forth in this
Section.
(e) Notwithstanding any other provision of law, an employer
under this Article is required to offer any future increases in
income expressly and irrevocably as not constituting "salary"
for purposes of this Article to any Tier 1 employee, or Tier 1
retiree returning to active service, who has made an election
under paragraph (2) of subsection (a) of Section 3-111.2. A
Tier 1 employee, or Tier 1 retiree returning to active service,
who has made an election under paragraph (2) of subsection (a)
of Section 3-111.2 shall not accept any future increase in
income that is offered by an employer under this Article in
violation of the requirement set forth in this subsection.
(f) A member's election under this Section is not a
prohibited election under subdivision (j)(1) of Section 1-119
of this Code.
(g) No provision of this Section shall be interpreted in a
way that would cause the fund to cease to be a qualified plan
under Section 401(a) of the Internal Revenue Code of 1986.
(40 ILCS 5/3-111.5 new)
Sec. 3-111.5. Defined benefit provisions applicable to new
hires on or after January 1, 2016.
(a) The provisions of this Section apply to a person who,
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on or after January 1, 2016, first becomes a police officer
under this Article, notwithstanding any other provision of this
Code to the contrary.
(b) For the purposes of this Section, "final average
salary" means the average monthly salary obtained by dividing
the total salary of the police officer during the 96
consecutive months of service within the last 120 months of
service in which the total salary was the highest by the number
of months of service in that period.
(b-5) Beginning January 1, 2016, for all purposes under
this Code (including without limitation the calculation of
benefits and employee contributions), the annual earnings,
salary, or wages (based on the plan year) of a police officer
to whom this Section applies shall not exceed the Social
Security Wage Base.
(b-10) A police officer to whom this Section applies shall
be entitled to participate and accrue benefits in the defined
contribution plan established under Section 7-225.5.
(c) Each police officer is required to contribute 5 1/2% of
each payment of salary toward the retirement annuity. The
contributions shall continue during the entire time the police
officer is in service.
(d) The retirement annuity for any police officer shall be
1 1/2% of final average salary, as defined in this Section, for
each year of service.
(e) A police officer is entitled to a retirement annuity
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upon written application if he or she has attained age 55 and
has at least 30 years of service credit and is otherwise
eligible under the requirements of this Article or has attained
age 60 and has at least 20 years of service credit and is
otherwise eligible under the requirements of this Article or
attained age 65 and has at least 5 years of service credit and
is otherwise eligible under the requirements of this Article.
(f) Any retirement annuity or supplemental annuity shall be
subject to annual increases on the January 1 occurring either
on or after the attainment of age 67 or the first anniversary
of the annuity start date, whichever is later. Each annual
increase shall be calculated at 3% or one-half the annual
unadjusted percentage increase (but not less than zero) in the
consumer price index-u for the 12 months ending with the
September preceding each November 1, whichever is less, of the
originally granted retirement annuity. If the annual
unadjusted percentage change in the consumer price index-u for
the 12 months ending with the September preceding each November
1 is zero or there is a decrease, then the annuity shall not be
increased.
For the purposes of this Section, "consumer price index-u"
means the index published by the Bureau of Labor Statistics of
the United States Department of Labor that measures the average
change in prices of goods and services purchased by all urban
consumers, United States city average, all items, 1982-84 =
100. The new amount resulting from each annual adjustment shall
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be determined by the Public Pension Division of the Department
of Insurance and made available to the boards of the retirement
systems and pension funds by November 1 of each year.
(g) The initial survivor's or widow's annuity of an
otherwise eligible survivor or widow of a retired police
officer who first became a police officer on or after January
1, 2016 shall be in the amount of 60% of the retired police
officer's retirement annuity at the date of death. In the case
of the death of a police officer who has not retired and who
first became a police officer on or after January 1, 2016,
eligibility for a survivor's or widow's annuity shall be
determined by the applicable provisions of this Article. The
initial benefit shall be 60% of the earned annuity without a
reduction due to age. A child's annuity of an otherwise
eligible child shall be 75% of the amount prescribed under the
applicable provisions of this Article. Any survivor's or
widow's annuity shall be increased (1) on each January 1
occurring on or after the commencement of the annuity if the
deceased member died while receiving a retirement annuity or
(2) in other cases, on each January 1 occurring after the first
anniversary of the commencement of the annuity. Each annual
increase shall be calculated at 3% or one-half the annual
unadjusted percentage increase (but not less than zero) in the
consumer price index-u for the 12 months ending with the
September preceding each November 1, whichever is less, of the
originally granted survivor's annuity. If the annual
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unadjusted percentage change in the consumer price index-u for
the 12 months ending with the September preceding each November
1 is zero or there is a decrease, then the annuity shall not be
increased.
(h) If a person who first becomes a police officer on or
after January 1, 2016 is receiving a retirement pension or
retirement annuity under this Article and becomes a member or
participant under any other system or fund created by this Code
and is employed on a full-time basis, except for those police
officers exempted from the provisions of this Section under
subsection (a) of this Section, then the person's retirement
annuity or retirement pension under this Article shall be
suspended during that employment. Upon termination of that
employment, the person's retirement annuity or retirement
pension payments shall resume and be recalculated if
recalculation is provided for under this Article.
If a person who first becomes a police officer on or after
January 1, 2016 is receiving a retirement pension or retirement
annuity under this Article and accepts on a contractual basis a
position to provide services to a governmental entity from
which he or she has retired, then that person's retirement
pension or retirement annuity earned as an active employee of
the employer shall be suspended during that contractual
service. A person receiving an annuity or retirement pension
under this Article shall notify the fund from which he or she
is receiving an annuity or retirement pension, as well as his
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or her contractual employer, of his or her retirement status
before accepting contractual employment. A person who fails to
submit such notification shall be guilty of a Class A
misdemeanor and required to pay a fine of $1,000. Upon
termination of that contractual employment, the person's
retirement annuity or retirement pension payments shall resume
and, if appropriate, be recalculated if recalculation is
provided for under this Article.
(i) Every employer of a police officer shall pay to the
fund an employer contribution, computed by the fund, equal to
the normal cost of the benefits provided in this Section for
the employer's police officer, less the amount of employee
contributions.
(j) The benefits provided to participants under this
Section may be modified prospectively. Before a police officer
may earn service credit under this Section, the fund must have
on file a signature from the police officer acknowledging that
benefits provided under this Section may be modified
prospectively.
(k) In the case of a conflict between the provisions of
this Section and any other provision of this Code, the
provisions of this Section shall control.
(40 ILCS 5/3-125) (from Ch. 108 1/2, par. 3-125)
Sec. 3-125. Financing.
(a) The city council or the board of trustees of the
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municipality shall annually levy a tax upon all the taxable
property of the municipality at the rate on the dollar which
will produce an amount which, when added to the deductions from
the salaries or wages of police officers, and revenues
available from other sources, will equal a sum sufficient to
meet the annual requirements of the police pension fund. The
annual requirements to be provided by such tax levy are equal
to (1) the normal cost of the pension fund for the year
involved, plus (2) an amount sufficient to bring the total
assets of the pension fund up to 90% of the total actuarial
liabilities of the pension fund by the end of municipal fiscal
year 2055 2040, as annually updated and determined by an
enrolled actuary employed by the Illinois Department of
Insurance or by an enrolled actuary retained by the pension
fund or the municipality. In making these determinations, the
required minimum employer contribution shall be calculated
each year as a level percentage of payroll over the years
remaining up to and including fiscal year 2055 2040 and shall
be determined under the entry age normal projected unit credit
actuarial cost method. The tax shall be levied and collected in
the same manner as the general taxes of the municipality, and
in addition to all other taxes now or hereafter authorized to
be levied upon all property within the municipality, and shall
be in addition to the amount authorized to be levied for
general purposes as provided by Section 8-3-1 of the Illinois
Municipal Code, approved May 29, 1961, as amended. The tax
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shall be forwarded directly to the treasurer of the board
within 30 business days after receipt by the county.
(b) For purposes of determining the required employer
contribution to a pension fund, the value of the pension fund's
assets shall be equal to the actuarial value of the pension
fund's assets, which shall be calculated as follows:
(1) On March 30, 2011, the actuarial value of a pension
fund's assets shall be equal to the market value of the
assets as of that date.
(2) In determining the actuarial value of the System's
assets for fiscal years after March 30, 2011, any actuarial
gains or losses from investment return incurred in a fiscal
year shall be recognized in equal annual amounts over the
5-year period following that fiscal year.
(c) If a participating municipality fails to transmit to
the fund contributions required of it under this Article for
more than 90 days after the payment of those contributions is
due, the fund may, after giving notice to the municipality,
certify to the State Comptroller the amounts of the delinquent
payments in accordance with any applicable rules of the
Comptroller, and the Comptroller must, beginning in fiscal year
2016, deduct and remit to deposit into the fund the certified
amounts or a portion of those amounts from the following
proportions of payments grants of State funds to the
municipality:
(1) in fiscal year 2016, one-third of the total amount
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of any payments grants of State funds to the municipality;
(2) in fiscal year 2017, two-thirds of the total amount
of any payments grants of State funds to the municipality;
and
(3) in fiscal year 2018 and each fiscal year
thereafter, the total amount of any payments grants of
State funds to the municipality.
The State Comptroller may not deduct from any payments
grants of State funds to the municipality more than the amount
of delinquent payments certified to the State Comptroller by
the fund.
(d) The police pension fund shall consist of the following
moneys which shall be set apart by the treasurer of the
municipality:
(1) All moneys derived from the taxes levied hereunder;
(2) Contributions by police officers under Section
3-125.1;
(3) All moneys accumulated by the municipality under
any previous legislation establishing a fund for the
benefit of disabled or retired police officers;
(4) Donations, gifts or other transfers authorized by
this Article.
(e) The Commission on Government Forecasting and
Accountability shall conduct a study of all funds established
under this Article and shall report its findings to the General
Assembly on or before January 1, 2013. To the fullest extent
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possible, the study shall include, but not be limited to, the
following:
(1) fund balances;
(2) historical employer contribution rates for each
fund;
(3) the actuarial formulas used as a basis for employer
contributions, including the actual assumed rate of return
for each year, for each fund;
(4) available contribution funding sources;
(5) the impact of any revenue limitations caused by
PTELL and employer home rule or non-home rule status; and
(6) existing statutory funding compliance procedures
and funding enforcement mechanisms for all municipal
pension funds.
(Source: P.A. 95-530, eff. 8-28-07; 96-1495, eff. 1-1-11.)
(40 ILCS 5/3-125.3 new)
Sec. 3-125.3. Salary or average salary. Notwithstanding
any other provision of this Article, "salary", "salary attached
to the rank", or "average salary" does not include any future
increase in income offered by an employer under this Article
pursuant to the requirements of subsection (c) of Section
3-111.2 that is accepted by a Tier 1 employee, or a Tier 1
retiree returning to active service, who has made the election
under paragraph (2) of subsection (a) of Section 3-111.2.
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(40 ILCS 5/3-125.4 new)
Sec. 3-125.4. Future increase in income. "Future increase
in income": Any increase in income in any form offered by an
employer to a police officer under this Article after June 30,
2015 that would qualify as "salary" or "average salary" but for
the fact that the employer offered the increase in income to
the employee on the condition that it not qualify as "salary",
"salary attached to the rank", or "average salary" under this
Article and the employee accepted the increase in income
subject to that condition. The term "future increase in income"
does not include an increase in income in any form that is paid
to a Tier 1 employee under an employment contract or collective
bargaining agreement that is in effect on the effective date of
this Section but does include an increase in income in any form
pursuant to an extension, amendment, or renewal of any such
employment contract or collective bargaining agreement on or
after the effective date of this amendatory Act of the 99th
General Assembly.
(40 ILCS 5/3-127) (from Ch. 108 1/2, par. 3-127)
Sec. 3-127. Reserves. Until 12 months after the effective
date of this amendatory Act of the 99th General Assembly, the
The board shall establish and maintain a reserve to insure the
payment of all obligations incurred under this Article
excluding retirement annuities established under Section
3-109.3. The reserve to be accumulated shall be equal to the
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estimated total actuarial requirements of the fund.
If a pension fund has a reserve of less than the accrued
liabilities of the fund, the board of the pension fund, in
making its annual report to the city council or board of
trustees of the municipality, shall designate the amount,
calculated as a level percentage of payroll, needed annually to
insure the accumulation of the reserve to the level of the
fund's accrued liabilities over a period of 40 years from July
1, 1993 for pension funds then in operation, or from the date
of establishment in the case of a fund created thereafter, so
that the necessary reserves will be attained over such a
period.
(Source: P.A. 91-939, eff. 2-1-01.)
(40 ILCS 5/3-132) (from Ch. 108 1/2, par. 3-132)
Sec. 3-132. To control and manage the Pension Fund. Until
12 months after the effective date of this amendatory Act of
the 99th General Assembly, in In accordance with the applicable
provisions of Articles 1 and 1A and this Article, to control
and manage, exclusively, the following:
(1) the pension fund,
(2) investment expenditures and income, including
interest dividends, capital gains and other distributions
on the investments, and
(3) all money donated, paid, assessed, or provided by
law for the pensioning of disabled and retired police
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officers, their surviving spouses, minor children, and
dependent parents.
All money received or collected shall be credited by the
treasurer of the municipality to the account of the pension
fund and held by the treasurer of the municipality subject to
the order and control of the board. The treasurer of the
municipality shall maintain a record of all money received,
transferred, and held for the account of the board.
(Source: P.A. 90-507, eff. 8-22-97.)
(40 ILCS 5/3-135) (from Ch. 108 1/2, par. 3-135)
Sec. 3-135. To invest funds. Beginning January 1, 1998 and
ending 12 months after the effective date of this amendatory
Act of the 99th General Assembly, the board shall invest funds
in accordance with Sections 1-113.1 through 1-113.10 of this
Code.
(Source: P.A. 90-507, eff. 8-22-97.)
(40 ILCS 5/3-135.1 new)
Sec. 3-135.1. To transfer investment assets. Within 12
months after the effective date of this amendatory Act of the
99th General Assembly, the board shall transfer ownership and
control of all investment assets to the investment authority
under Article 7 of this Code.
(40 ILCS 5/3-135.5 new)
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Sec. 3-135.5. Transfer of investment assets. The board
shall transfer to the Illinois Municipal Retirement Fund
created under Article 7 of this Code, for management and
administration, all investments owned by the board of every
kind and character. Upon completion of the transfer, the
authority of the retirement board to make investments shall
terminate. Thereafter, all investments of the reserves of the
Fund shall be made by the Illinois Municipal Retirement Fund in
accordance with the provisions of Article 7 of this Code. The
transfer of investment functions to the Illinois Municipal
Retirement Fund in this amendatory Act of the 99th General
Assembly shall not affect the board's other powers and duties
and shall not affect the amount of or eligibility for any
benefit provided under this Article.
The transfer shall be made not later than 12 months after
the effective date of this amendatory Act of the 99th General
Assembly. Before the transfer, an audit of the investments
shall be completed by a certified public accountant selected by
the Illinois Municipal Retirement Fund. The expense of the
audit shall be defrayed by the board.
(40 ILCS 5/4-105e new)
Sec. 4-105e. Tier 1 employee. "Tier 1 employee": A
participant under this Article who first became a participant
in this Article of this Code before January 1, 2011.
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(40 ILCS 5/4-105f new)
Sec. 4-105f. Tier 1 retiree. "Tier 1 retiree": A former
Tier 1 employee who is receiving a retirement annuity.
(40 ILCS 5/4-105g new)
Sec. 4-105g. Salary or average salary. Notwithstanding any
other provision of this Article, "salary", "salary attached to
the rank", or "average salary" does not include any future
increase in income offered by an employer under this Article
pursuant to the requirements of subsection (c) of Section
4-109.8 that is accepted by a Tier 1 employee, or a Tier 1
retiree returning to active service, who has made the election
under paragraph (2) of subsection (a) of Section 4-109.8.
(40 ILCS 5/4-105h new)
Sec. 4-105h. Future increase in income. "Future increase in
income": Any increase in income in any form offered by an
employer to a participant under this Article after June 30,
2015 that would qualify as "salary" or "average salary" but for
the fact that the employer offered the increase in income to
the employee on the condition that it not qualify as "salary"
or "average salary" under this Article and the employee
accepted the increase in income subject to that condition. The
term "future increase in income" does not include an increase
in income in any form that is paid to a Tier 1 employee under an
employment contract or collective bargaining agreement that is
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in effect on the effective date of this Section but does
include an increase in income in any form pursuant to an
extension, amendment, or renewal of any such employment
contract or collective bargaining agreement on or after the
effective date of this amendatory Act of the 99th General
Assembly.
(40 ILCS 5/4-109) (from Ch. 108 1/2, par. 4-109)
Sec. 4-109. Pension.
(a) A firefighter age 50 or more with 20 or more years of
creditable service, who is no longer in service as a
firefighter, shall receive a monthly pension of 1/2 the monthly
salary attached to the rank held by him or her in the fire
service at the date of retirement.
The monthly pension shall be increased by 1/12 of 2.5% of
such monthly salary for each additional month over 20 years of
service through 30 years of service, to a maximum of 75% of
such monthly salary.
The changes made to this subsection (a) by this amendatory
Act of the 91st General Assembly apply to all pensions that
become payable under this subsection on or after January 1,
1999. All pensions payable under this subsection that began on
or after January 1, 1999 and before the effective date of this
amendatory Act shall be recalculated, and the amount of the
increase accruing for that period shall be payable to the
pensioner in a lump sum.
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(b) A firefighter who retires or is separated from service
having at least 10 but less than 20 years of creditable
service, who is not entitled to receive a disability pension,
and who did not apply for a refund of contributions at his or
her last separation from service shall receive a monthly
pension upon attainment of age 60 based on the monthly salary
attached to his or her rank in the fire service on the date of
retirement or separation from service according to the
following schedule:
For 10 years of service, 15% of salary;
For 11 years of service, 17.6% of salary;
For 12 years of service, 20.4% of salary;
For 13 years of service, 23.4% of salary;
For 14 years of service, 26.6% of salary;
For 15 years of service, 30% of salary;
For 16 years of service, 33.6% of salary;
For 17 years of service, 37.4% of salary;
For 18 years of service, 41.4% of salary;
For 19 years of service, 45.6% of salary.
(c) Notwithstanding any other provision of this Article,
the provisions of this subsection (c) apply to a person who
first becomes a firefighter under this Article on or after
January 1, 2011 and before January 1, 2016.
A firefighter age 55 or more who has 10 or more years of
service in that capacity shall be entitled at his option to
receive a monthly pension for his service as a firefighter
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computed by multiplying 2.5% for each year of such service by
his or her final average salary.
The pension of a firefighter who is retiring after
attaining age 50 with 10 or more years of creditable service
shall be reduced by one-half of 1% for each month that the
firefighter's age is under age 55.
The maximum pension under this subsection (c) shall be 75%
of final average salary.
For the purposes of this subsection (c), "final average
salary" means the average monthly salary obtained by dividing
the total salary of the firefighter during the 96 consecutive
months of service within the last 120 months of service in
which the total salary was the highest by the number of months
of service in that period.
Beginning on January 1, 2011, for all purposes under this
Code (including without limitation the calculation of benefits
and employee contributions), the annual salary based on the
plan year of a member or participant to whom this Section
applies shall not exceed $106,800; however, that amount shall
annually thereafter be increased by the lesser of (i) 3% of
that amount, including all previous adjustments, or (ii)
one-half the annual unadjusted percentage increase (but not
less than zero) in the consumer price index-u for the 12 months
ending with the September preceding each November 1, including
all previous adjustments.
(Source: P.A. 96-1495, eff. 1-1-11.)
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(40 ILCS 5/4-109.1) (from Ch. 108 1/2, par. 4-109.1)
Sec. 4-109.1. Increase in pension.
(a) Except as provided in subsection (e), the monthly
pension of a firefighter who retires after July 1, 1971 and
prior to January 1, 1986, shall, upon either the first of the
month following the first anniversary of the date of retirement
if 60 years of age or over at retirement date, or upon the
first day of the month following attainment of age 60 if it
occurs after the first anniversary of retirement, be increased
by 2% of the originally granted monthly pension and by an
additional 2% in each January thereafter. Effective January
1976, the rate of the annual increase shall be 3% of the
originally granted monthly pension.
(b) The monthly pension of a firefighter who retired from
service with 20 or more years of service, on or before July 1,
1971, shall be increased, in January of the year following the
year of attaining age 65 or in January 1972, if then over age
65, by 2% of the originally granted monthly pension, for each
year the firefighter received pension payments. In each January
thereafter, he or she shall receive an additional increase of
2% of the original monthly pension. Effective January 1976, the
rate of the annual increase shall be 3%.
(c) The monthly pension of a firefighter who is receiving a
disability pension under this Article shall be increased, in
January of the year following the year the firefighter attains
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age 60, or in January 1974, if then over age 60, by 2% of the
originally granted monthly pension for each year he or she
received pension payments. In each January thereafter, the
firefighter shall receive an additional increase of 2% of the
original monthly pension. Effective January 1976, the rate of
the annual increase shall be 3%.
(c-1) On January 1, 1998, every child's disability benefit
payable on that date under Section 4-110 or 4-110.1 shall be
increased by an amount equal to 1/12 of 3% of the amount of the
benefit, multiplied by the number of months for which the
benefit has been payable. On each January 1 thereafter, every
child's disability benefit payable under Section 4-110 or
4-110.1 shall be increased by 3% of the amount of the benefit
then being paid, including any previous increases received
under this Article. These increases are not subject to any
limitation on the maximum benefit amount included in Section
4-110 or 4-110.1.
(c-2) On July 1, 2004, every pension payable to or on
behalf of a minor or disabled surviving child that is payable
on that date under Section 4-114 shall be increased by an
amount equal to 1/12 of 3% of the amount of the pension,
multiplied by the number of months for which the benefit has
been payable. On July 1, 2005, July 1, 2006, July 1, 2007, and
July 1, 2008, every pension payable to or on behalf of a minor
or disabled surviving child that is payable under Section 4-114
shall be increased by 3% of the amount of the pension then
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being paid, including any previous increases received under
this Article. These increases are not subject to any limitation
on the maximum benefit amount included in Section 4-114.
(d) The monthly pension of a firefighter who retires after
January 1, 1986, shall, upon either the first of the month
following the first anniversary of the date of retirement if 55
years of age or over, or upon the first day of the month
following attainment of age 55 if it occurs after the first
anniversary of retirement, be increased by 1/12 of 3% of the
originally granted monthly pension for each full month that has
elapsed since the pension began, and by an additional 3% in
each January thereafter.
The changes made to this subsection (d) by this amendatory
Act of the 91st General Assembly apply to all initial increases
that become payable under this subsection on or after January
1, 1999. All initial increases that became payable under this
subsection on or after January 1, 1999 and before the effective
date of this amendatory Act shall be recalculated and the
additional amount accruing for that period, if any, shall be
payable to the pensioner in a lump sum.
(e) Notwithstanding the provisions of subsection (a), and
except as otherwise provided in subsection (h), if applicable,
beginning upon the first day of the month following (1) the
first anniversary of the date of retirement, or (2) the
attainment of age 55, or (3) July 1, 1987, whichever occurs
latest, the monthly pension of a firefighter who retired on or
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after January 1, 1977 and on or before January 1, 1986 and did
not receive an increase under subsection (a) before July 1,
1987, shall be increased by 3% of the originally granted
monthly pension for each full year that has elapsed since the
pension began, and by an additional 3% in each January
thereafter. The increases provided under this subsection are in
lieu of the increases provided in subsection (a).
(f) In July 2009, the monthly pension of a firefighter who
retired before July 1, 1977 shall be recalculated and increased
to reflect the amount that the firefighter would have received
in July 2009 had the firefighter been receiving a 3% compounded
increase for each year he or she received pension payments
after January 1, 1986, plus any increases in pension received
for each year prior to January 1, 1986. In each January
thereafter, he or she shall receive an additional increase of
3% of the amount of the pension then being paid. The changes
made to this Section by this amendatory Act of the 96th General
Assembly apply without regard to whether the firefighter was in
service on or after its effective date.
(g) Notwithstanding any other provision of this Article,
the monthly pension of a person who first becomes a firefighter
under this Article on or after January 1, 2011 shall be
increased on the January 1 occurring either on or after the
attainment of age 60 or the first anniversary of the pension
start date, whichever is later. Each annual increase shall be
calculated at 3% or one-half the annual unadjusted percentage
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increase (but not less than zero) in the consumer price index-u
for the 12 months ending with the September preceding each
November 1, whichever is less, of the originally granted
pension. If the annual unadjusted percentage change in the
consumer price index-u for a 12-month period ending in
September is zero or, when compared with the preceding period,
decreases, then the pension shall not be increased.
For the purposes of this subsection (g), "consumer price
index-u" means the index published by the Bureau of Labor
Statistics of the United States Department of Labor that
measures the average change in prices of goods and services
purchased by all urban consumers, United States city average,
all items, 1982-84 = 100. The new amount resulting from each
annual adjustment shall be determined by the Public Pension
Division of the Department of Insurance and made available to
the boards of the pension funds.
(h) Notwithstanding any other provision of this Article,
for a Tier 1 employee who made the election under paragraph (1)
of subsection (a) of Section 4-109.8, the amount of each
automatic annual increase in pension occurring on or after the
effective date of that election, other than the initial
increase, shall be calculated as provided in subsection (g) of
this Section.
(Source: P.A. 96-775, eff. 8-28-09; 96-1495, eff. 1-1-11.)
(40 ILCS 5/4-109.5 new)
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Sec. 4-109.5. Defined benefit provisions applicable to new
hires on or after January 1, 2016.
(a) The provisions of this Section apply to a person who,
on or after January 1, 2016, first becomes a firefighter under
this Article, notwithstanding any other provision of this Code
to the contrary.
(b) For the purposes of this Section, "final average
salary" means the average monthly salary obtained by dividing
the total salary applicable to the firefighter during the 96
consecutive months of service within the last 120 months of
service in which the total salary was the highest by the number
of months of service in that period.
(b-5) Beginning January 1, 2016, for all purposes under
this Code (including without limitation the calculation of
benefits and employee contributions), the annual earnings,
salary, or wages (based on the plan year) of a firefighter to
whom this Section applies shall not exceed the Social Security
Wage Base.
(b-10) A firefighter to whom this Section applies shall be
entitled to participate and accrue benefits in the defined
contribution plan established under Section 7-225.5.
(c) Each firefighter is required to contribute 5 1/2% of
each payment of salary toward the retirement annuity. The
contributions shall continue during the entire time the
firefighter is in service.
(d) The retirement annuity for any firefighter shall be 1
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1/2% of final average salary, as defined in this Section, for
each year of service.
(e) A firefighter is entitled to a retirement annuity upon
written application if he or she has attained age 55 and has at
least 30 years of service credit and is otherwise eligible
under the requirements of this Article or has attained age 60
and has at least 20 years of service credit and is otherwise
eligible under the requirements of this Article or attained age
65 and has at least 5 years of service credit and is otherwise
eligible under the requirements of this Article.
(f) Any retirement annuity or supplemental annuity shall be
subject to annual increases on the January 1 occurring either
on or after the attainment of age 67 or the first anniversary
of the annuity start date, whichever is later. Each annual
increase shall be calculated at 3% or one-half the annual
unadjusted percentage increase (but not less than zero) in the
consumer price index-u for the 12 months ending with the
September preceding each November 1, whichever is less, of the
originally granted retirement annuity. If the annual
unadjusted percentage change in the consumer price index-u for
the 12 months ending with the September preceding each November
1 is zero or there is a decrease, then the annuity shall not be
increased.
For the purposes of this Section, "consumer price index-u"
means the index published by the Bureau of Labor Statistics of
the United States Department of Labor that measures the average
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change in prices of goods and services purchased by all urban
consumers, United States city average, all items, 1982-84 =
100. The new amount resulting from each annual adjustment shall
be determined by the Public Pension Division of the Department
of Insurance and made available to the boards of the retirement
systems and pension funds by November 1 of each year.
(g) The initial survivor's or widow's annuity of an
otherwise eligible survivor or widow of a retired firefighter
who first became a firefighter on or after January 1, 2016
shall be in the amount of 60% of the retired firefighter's
retirement annuity at the date of death. In the case of the
death of a firefighter who has not retired and who first became
a firefighter on or after January 1, 2016, eligibility for a
survivor's or widow's annuity shall be determined by the
applicable provisions of this Article. The initial benefit
shall be 60% of the earned annuity without a reduction due to
age. A child's annuity of an otherwise eligible child shall be
75% of the amount prescribed under the applicable provisions of
this Article. Any survivor's or widow's annuity shall be
increased (1) on each January 1 occurring on or after the
commencement of the annuity if the deceased member died while
receiving a retirement annuity or (2) in other cases, on each
January 1 occurring after the first anniversary of the
commencement of the annuity. Each annual increase shall be
calculated at 3% or one-half the annual unadjusted percentage
increase (but not less than zero) in the consumer price index-u
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for the 12 months ending with the September preceding each
November 1, whichever is less, of the originally granted
survivor's annuity. If the annual unadjusted percentage change
in the consumer price index-u for the 12 months ending with the
September preceding each November 1 is zero or there is a
decrease, then the annuity shall not be increased.
(h) If a person who first becomes a firefighter on or after
January 1, 2016 is receiving a retirement pension or retirement
annuity under this Article and becomes a member or participant
under any other system or fund created by this Code and is
employed on a full-time basis, except for those firefighters
exempted from the provisions of this Section under subsection
(a) of this Section, then the person's retirement annuity or
retirement pension under this Article shall be suspended during
that employment. Upon termination of that employment, the
person's retirement annuity or retirement pension payments
shall resume and be recalculated if recalculation is provided
for under this Article.
If a person who first becomes a firefighter on or after
January 1, 2016 is receiving a retirement pension or retirement
annuity under this Article and accepts on a contractual basis a
position to provide services to a governmental entity from
which he or she has retired, then that person's retirement
pension or retirement annuity earned as an active employee of
the employer shall be suspended during that contractual
service. A person receiving an annuity or retirement pension
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under this Article shall notify the fund from which he or she
is receiving an annuity or retirement pension, as well as his
or her contractual employer, of his or her retirement status
before accepting contractual employment. A person who fails to
submit such notification shall be guilty of a Class A
misdemeanor and required to pay a fine of $1,000. Upon
termination of that contractual employment, the person's
retirement annuity or retirement pension payments shall resume
and, if appropriate, be recalculated if recalculation is
provided for under this Article.
(i) Every employer of a firefighter shall pay to the fund
an employer contribution, computed by the fund, equal to the
normal cost of the benefits provided in this Section for the
employer's firefighter, less the amount of employee
contributions.
(j) The benefits provided to participants under this
Section may be modified prospectively. Before a firefighter may
earn service credit under this Section, the fund must have on
file a signature from the firefighter acknowledging that
benefits provided under this Section may be modified
prospectively.
(k) In the case of a conflict between the provisions of
this Section and any other provision of this Code, the
provisions of this Section shall control.
(40 ILCS 5/4-109.8 new)
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Sec. 4-109.8. Election by Tier 1 employees.
(a) Each Tier 1 employee shall make an irrevocable election
either:
(1) to agree to have the amount of the automatic annual
increases in his or her retirement annuity that are
otherwise provided for in this Article calculated,
instead, as provided in subsection (e) of Section 1-160; or
(2) to not agree to paragraph (1) of this subsection.
The election required under this subsection (a) shall be
made by each Tier 1 employee no earlier than 60 days after the
effective date of this Section and no later than 150 days after
the effective date of this Section, except that a person who
returns to active service as a Tier 1 employee under this
Article on or after 150 days after the effective date of this
Section and has not yet made an election under this Section
must make the election under this subsection (a) within 30 days
after returning to active service as a Tier 1 employee.
If a Tier 1 employee fails for any reason to make a
required election under this subsection within the time
specified, then the employee shall be deemed to have made the
election under paragraph (2) of this subsection.
(a-10) All elections under subsection (a) that are made or
deemed to be made before 150 days after the effective date of
this Section shall take effect 180 days after the effective
date of this Section. Elections that are made or deemed to be
made on or after 150 days after the effective date of this
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Section shall take effect on the first day of the month
following the month in which the election is made or deemed to
be made.
(b) As adequate and legal consideration provided under this
amendatory Act of the 99th General Assembly for making an
election under paragraph (1) of subsection (a) of this Section,
any future increase in income offered by an employer under this
Article to a Tier 1 employee who has made an election under
paragraph (1) of subsection (a) of this Section shall be
offered expressly and irrevocably as constituting "salary" for
purposes of this Article.
(c) A Tier 1 employee who has made the election under
paragraph (2) of subsection (a) of this Section shall not be
subject to paragraph (1) of subsection (a) of this Section.
However, any future increases in income offered by an employer
under this Article to a Tier 1 employee who has made the
election under paragraph (2) of subsection (a) of this Section
shall be offered by the employer expressly and irrevocably as
not constituting "salary" for purposes of this Article, and the
employee may not accept any future increase in income that is
offered in violation of this requirement.
(d) The fund shall make a good faith effort to contact each
Tier 1 employee subject to this Section. The fund shall mail
information describing the required election to each Tier 1
employee by United States Postal Service mail to his or her
last known address on file with the fund. If the Tier 1
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employee is not responsive to other means of contact, it is
sufficient for the fund to publish the details of any required
elections on its website or to publish those details in a
regularly published newsletter or other existing public forum.
Tier 1 employees who are subject to this Section shall be
provided with an election packet containing information
regarding their options, as well as the forms necessary to make
the required election. Upon request, the fund shall offer Tier
1 employees an opportunity to receive information from the fund
before making the required election. The information may
consist of video materials, group presentations, individual
consultation with a member or authorized representative of the
fund in person or by telephone or other electronic means, or
any combination of those methods. The fund shall not provide
advice or counseling with respect to which election a Tier 1
employee should make or specific to the legal or tax
circumstances of or consequences to the Tier 1 employee.
The fund shall inform Tier 1 employees in the election
packet required under this subsection that the Tier 1 employee
may also wish to obtain information and legal counsel relating
to the election required under this Section from any other
available source, including, but not limited to, labor
organizations and employee-chosen legal counsel.
In no event shall the fund, its staff, or the board be held
liable for any information given to a member, beneficiary, or
annuitant regarding the elections under this Section. The fund
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shall coordinate with the Illinois Department of Central
Management Services and each other retirement system
administering an election in accordance with this amendatory
Act of the 99th General Assembly to provide information
concerning the impact of the election set forth in this
Section.
(e) Notwithstanding any other provision of law, an employer
under this Article is required to offer any future increases in
income expressly and irrevocably as not constituting "salary"
for purposes of this Article to any Tier 1 employee, or Tier 1
retiree returning to active service, who has made an election
under paragraph (2) of subsection (a) of Section 17-116.10. A
Tier 1 employee, or Tier 1 retiree returning to active service,
who has made an election under paragraph (2) of subsection (a)
of Section 17-116.10 shall not accept any future increase in
income that is offered by an employer under this Article in
violation of the requirement set forth in this subsection.
(f) A member's election under this Section is not a
prohibited election under subdivision (j)(1) of Section 1-119
of this Code.
(g) No provision of this Section shall be interpreted in a
way that would cause the fund to cease to be a qualified plan
under Section 401(a) of the Internal Revenue Code of 1986.
(40 ILCS 5/4-118) (from Ch. 108 1/2, par. 4-118)
Sec. 4-118. Financing.
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(a) The city council or the board of trustees of the
municipality shall annually levy a tax upon all the taxable
property of the municipality at the rate on the dollar which
will produce an amount which, when added to the deductions from
the salaries or wages of firefighters and revenues available
from other sources, will equal a sum sufficient to meet the
annual actuarial requirements of the pension fund, as
determined by an enrolled actuary employed by the Illinois
Department of Insurance or by an enrolled actuary retained by
the pension fund or municipality. For the purposes of this
Section, the annual actuarial requirements of the pension fund
are equal to (1) the normal cost of the pension fund, or 17.5%
of the salaries and wages to be paid to firefighters for the
year involved, whichever is greater, plus (2) an annual amount
sufficient to bring the total assets of the pension fund up to
90% of the total actuarial liabilities of the pension fund by
the end of municipal fiscal year 2055 2040, as annually updated
and determined by an enrolled actuary employed by the Illinois
Department of Insurance or by an enrolled actuary retained by
the pension fund or the municipality. In making these
determinations, the required minimum employer contribution
shall be calculated each year as a level percentage of payroll
over the years remaining up to and including fiscal year 2055
2040 and shall be determined under the entry age normal
projected unit credit actuarial cost method. The amount to be
applied towards the amortization of the unfunded accrued
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liability in any year shall not be less than the annual amount
required to amortize the unfunded accrued liability, including
interest, as a level percentage of payroll over the number of
years remaining in the 40 year amortization period.
(a-5) For purposes of determining the required employer
contribution to a pension fund, the value of the pension fund's
assets shall be equal to the actuarial value of the pension
fund's assets, which shall be calculated as follows:
(1) On March 30, 2011, the actuarial value of a pension
fund's assets shall be equal to the market value of the
assets as of that date.
(2) In determining the actuarial value of the pension
fund's assets for fiscal years after March 30, 2011, any
actuarial gains or losses from investment return incurred
in a fiscal year shall be recognized in equal annual
amounts over the 5-year period following that fiscal year.
(b) The tax shall be levied and collected in the same
manner as the general taxes of the municipality, and shall be
in addition to all other taxes now or hereafter authorized to
be levied upon all property within the municipality, and in
addition to the amount authorized to be levied for general
purposes, under Section 8-3-1 of the Illinois Municipal Code or
under Section 14 of the Fire Protection District Act. The tax
shall be forwarded directly to the treasurer of the board
within 30 business days of receipt by the county (or, in the
case of amounts added to the tax levy under subsection (f),
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used by the municipality to pay the employer contributions
required under subsection (b-1) of Section 15-155 of this
Code).
(b-5) If a participating municipality fails to transmit to
the fund contributions required of it under this Article for
more than 90 days after the payment of those contributions is
due, the fund may, after giving notice to the municipality,
certify to the State Comptroller the amounts of the delinquent
payments in accordance with any applicable rules of the
Comptroller, and the Comptroller must, beginning in fiscal year
2016, deduct and remit to deposit into the fund the certified
amounts or a portion of those amounts from the following
proportions of payments grants of State funds to the
municipality:
(1) in fiscal year 2016, one-third of the total amount
of any payments grants of State funds to the municipality;
(2) in fiscal year 2017, two-thirds of the total amount
of any payments grants of State funds to the municipality;
and
(3) in fiscal year 2018 and each fiscal year
thereafter, the total amount of any payments grants of
State funds to the municipality.
The State Comptroller may not deduct from any payments
grants of State funds to the municipality more than the amount
of delinquent payments certified to the State Comptroller by
the fund.
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(c) The board shall make available to the membership and
the general public for inspection and copying at reasonable
times the most recent Actuarial Valuation Balance Sheet and Tax
Levy Requirement issued to the fund by the Department of
Insurance.
(d) The firefighters' pension fund shall consist of the
following moneys which shall be set apart by the treasurer of
the municipality: (1) all moneys derived from the taxes levied
hereunder; (2) contributions by firefighters as provided under
Section 4-118.1; (3) all rewards in money, fees, gifts, and
emoluments that may be paid or given for or on account of
extraordinary service by the fire department or any member
thereof, except when allowed to be retained by competitive
awards; and (4) any money, real estate or personal property
received by the board.
(e) For the purposes of this Section, "enrolled actuary"
means an actuary: (1) who is a member of the Society of
Actuaries or the American Academy of Actuaries; and (2) who is
enrolled under Subtitle C of Title III of the Employee
Retirement Income Security Act of 1974, or who has been engaged
in providing actuarial services to one or more public
retirement systems for a period of at least 3 years as of July
1, 1983.
(f) The corporate authorities of a municipality that
employs a person who is described in subdivision (d) of Section
4-106 may add to the tax levy otherwise provided for in this
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Section an amount equal to the projected cost of the employer
contributions required to be paid by the municipality to the
State Universities Retirement System under subsection (b-1) of
Section 15-155 of this Code.
(g) The Commission on Government Forecasting and
Accountability shall conduct a study of all funds established
under this Article and shall report its findings to the General
Assembly on or before January 1, 2013. To the fullest extent
possible, the study shall include, but not be limited to, the
following:
(1) fund balances;
(2) historical employer contribution rates for each
fund;
(3) the actuarial formulas used as a basis for employer
contributions, including the actual assumed rate of return
for each year, for each fund;
(4) available contribution funding sources;
(5) the impact of any revenue limitations caused by
PTELL and employer home rule or non-home rule status; and
(6) existing statutory funding compliance procedures
and funding enforcement mechanisms for all municipal
pension funds.
(Source: P.A. 96-1495, eff. 1-1-11.)
(40 ILCS 5/4-120) (from Ch. 108 1/2, par. 4-120)
Sec. 4-120. Reserves. Until 12 months after the effective
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- 346 - LRB099 13050 RPS 36929 b
date of this amendatory Act of the 99th General Assembly, the
The board shall establish and maintain a reserve to insure the
payment of all obligations incurred under this Article. The
reserve to be accumulated shall be equal to the estimated total
actuarial requirements of the Fund.
(Source: P.A. 83-1440.)
(40 ILCS 5/4-123) (from Ch. 108 1/2, par. 4-123)
Sec. 4-123. To control and manage the Pension Fund. Until
12 months after the effective date of this amendatory Act of
the 99th General Assembly, in In accordance with the applicable
provisions of Articles 1 and 1A and this Article, to control
and manage, exclusively, the following:
(1) the pension fund,
(2) investment expenditures and income, including
interest dividends, capital gains, and other distributions
on the investments, and
(3) all money donated, paid, assessed, or provided by
law for the pensioning of disabled and retired
firefighters, their surviving spouses, minor children, and
dependent parents.
All money received or collected shall be credited by the
treasurer of the municipality to the account of the pension
fund and held by the treasurer of the municipality subject to
the order and control of the board. The treasurer of the
municipality shall maintain a record of all money received,
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- 347 - LRB099 13050 RPS 36929 b
transferred, and held for the account of the board.
(Source: P.A. 90-507, eff. 8-22-97.)
(40 ILCS 5/4-128) (from Ch. 108 1/2, par. 4-128)
Sec. 4-128. To invest funds. Beginning January 1, 1998 and
ending 12 months after this amendatory Act of the 99th General
Assembly, the board shall invest funds in accordance with
Sections 1-113.1 through 1-113.10 of this Code.
(Source: P.A. 90-507, eff. 8-22-97.)
(40 ILCS 5/4-128.1 new)
Sec. 4-128.1. To transfer funds. Within 12 months after the
effective date of this amendatory Act of the 99th General
Assembly, the board shall transfer ownership and control of all
investment assets to the investment authority under Article 7
of this Code.
(40 ILCS 5/4-128.5 new)
Sec. 4-128.5. Transfer of investment assets. The board
shall transfer to the Illinois Municipal Retirement Fund
created under Article 7 of this Code, for management and
administration, all investments owned by the board of every
kind and character. Upon completion of the transfer, the
authority of the retirement board to make investments shall
terminate. Thereafter, all investments of the reserves of the
Fund shall be made by the Illinois Municipal Retirement Fund in
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- 348 - LRB099 13050 RPS 36929 b
accordance with the provisions of Article 7 of this Code. The
transfer of investment functions to the Illinois Municipal
Retirement Fund in this amendatory Act of the 99th General
Assembly shall not affect the board's other powers and duties
and shall not affect the amount of or eligibility for any
benefit provided under this Article.
The transfer shall be made not later than 12 months after
the effective date of this amendatory Act of the 99th General
Assembly. Before the transfer, an audit of the investments
shall be completed by a certified public accountant selected by
the Illinois Municipal Retirement Fund. The expense of the
audit shall be defrayed by the board.
(40 ILCS 5/5-167.2) (from Ch. 108 1/2, par. 5-167.2)
Sec. 5-167.2. Retirement before September 1, 1967. A
retired policeman, qualifying for minimum annuity or who
retired from service with 20 or more years of service, before
September 1, 1967, shall, in January of the year following the
year he attains the age of 65, or in January of the year 1970,
if then more than 65 years of age, have his then fixed and
payable monthly annuity increased by an amount equal to 2% of
the original grant of annuity, for each year the policeman was
in receipt of annuity payments after the year in which he
attains, or did attain the age of 63. An additional 2% increase
in such then fixed and payable original granted annuity shall
accrue in each January thereafter. Beginning January 1, 1986,
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- 349 - LRB099 13050 RPS 36929 b
the rate of such increase shall be 3% instead of 2%.
The provisions of the preceding paragraph of this Section
apply only to a retired policeman eligible for such increases
in his annuity who contributes to the Fund a sum equal to $5
for each full year of credited service upon which his annuity
was computed. All such sums contributed shall be placed in a
Supplementary Payment Reserve and shall be used for the
purposes of such Fund account.
Beginning with the monthly annuity payment due in July,
1982, the fixed and granted monthly annuity payment for any
policeman who retired from the service, before September 1,
1976, at age 50 or over with 20 or more years of service and
entitled to an annuity on January 1, 1974, shall be not less
than $400. It is the intent of the General Assembly that the
change made in this Section by this amendatory Act of 1982
shall apply retroactively to July 1, 1982.
Beginning with the monthly annuity payment due on January
1, 1986, the fixed and granted monthly annuity payment for any
policeman who retired from the service before January 1, 1986,
at age 50 or over with 20 or more years of service, or any
policeman who retired from service due to termination of
disability and who is entitled to an annuity on January 1,
1986, shall be not less than $475.
Beginning with the monthly annuity payment due on January
1, 1992, the fixed and granted monthly annuity payment for any
policeman who retired from the service before January 1, 1992,
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at age 50 or over with 20 or more years of service, and for any
policeman who retired from service due to termination of
disability and who is entitled to an annuity on January 1,
1992, shall be not less than $650.
Beginning with the monthly annuity payment due on January
1, 1993, the fixed and granted monthly annuity payment for any
policeman who retired from the service before January 1, 1993,
at age 50 or over with 20 or more years of service, and for any
policeman who retired from service due to termination of
disability and who is entitled to an annuity on January 1,
1993, shall be not less than $750.
Beginning with the monthly annuity payment due on January
1, 1994, the fixed and granted monthly annuity payment for any
policeman who retired from the service before January 1, 1994,
at age 50 or over with 20 or more years of service, and for any
policeman who retired from service due to termination of
disability and who is entitled to an annuity on January 1,
1994, shall be not less than $850.
Beginning with the monthly annuity payment due on January
1, 2004, the fixed and granted monthly annuity payment for any
policeman who retired from the service before January 1, 2004,
at age 50 or over with 20 or more years of service, and for any
policeman who retired from service due to termination of
disability and who is entitled to an annuity on January 1,
2004, shall be not less than $950.
Beginning with the monthly annuity payment due on January
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- 351 - LRB099 13050 RPS 36929 b
1, 2005, the fixed and granted monthly annuity payment for any
policeman who retired from the service before January 1, 2005,
at age 50 or over with 20 or more years of service, and for any
policeman who retired from service due to termination of
disability and who is entitled to an annuity on January 1,
2005, shall be not less than $1,050.
Beginning with the monthly annuity payment due on January
1, 2016, the fixed and granted monthly annuity payment for any
policeman who retired from the service before January 1, 2016,
at age 50 or over with 20 or more years of service, and for any
policeman who retired from service due to termination of
disability and who is entitled to an annuity on January 1,
2016, shall be no less than 125% of the Federal Poverty Level.
For purposes of this Section, the "Federal Poverty Level" shall
be determined pursuant to the poverty guidelines updated
periodically in the Federal Register by the United States
Department of Health and Human Services under the authority of
42 U.S.C. 9902(2).
The difference in amount between the original fixed and
granted monthly annuity of any such policeman on the date of
his retirement from the service and the monthly annuity
provided for in the immediately preceding paragraph shall be
paid as a supplement in the manner set forth in the immediately
following paragraph.
To defray the annual cost of the increases indicated in the
preceding part of this Section, the annual interest income
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accruing from investments held by this Fund, exclusive of gains
or losses on sales or exchanges of assets during the year, over
and above 4% a year shall be used to the extent necessary and
available to finance the cost of such increases for the
following year and such amount shall be transferred as of the
end of each year beginning with the year 1969 to a Fund account
designated as the Supplementary Payment Reserve from the
Interest and Investment Reserve set forth in Section 5-207.
In the event the funds in the Supplementary Payment Reserve
in any year arising from: (1) the interest income accruing in
the preceding year above 4% a year and (2) the contributions by
retired persons are insufficient to make the total payments to
all persons entitled to the annuity specified in this Section
and (3) any interest earnings over 4% a year beginning with the
year 1969 which were not previously used to finance such
increases and which were transferred to the Prior Service
Annuity Reserve, may be used to the extent necessary and
available to provide sufficient funds to finance such increases
for the current year and such sums shall be transferred from
the Prior Service Annuity Reserve. In the event the total money
available in the Supplementary Payment Reserve from such
sources are insufficient to make the total payments to all
persons entitled to such increases for the year, a
proportionate amount computed as the ratio of the money
available to the total of the total payments specified for that
year shall be paid to each person for that year.
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The Fund shall be obligated for the payment of the
increases in annuity as provided for in this Section only to
the extent that the assets for such purpose are available.
(Source: P.A. 93-654, eff. 1-16-04.)
(40 ILCS 5/5-168) (from Ch. 108 1/2, par. 5-168)
Sec. 5-168. Financing.
(a) Except as expressly provided in this Section, the city
shall levy a tax annually upon all taxable property therein for
the purpose of providing revenue for the fund.
The tax shall be at a rate that will produce a sum which,
when added to the amounts deducted from the policemen's
salaries and the amounts deposited in accordance with
subsection (g), is sufficient for the purposes of the fund.
For the years 1968 and 1969, the city council shall levy a
tax annually at a rate on the dollar of the assessed valuation
of all taxable property that will produce, when extended, not
to exceed $9,700,000. Beginning with the year 1970 and through
2014, the city council shall levy a tax annually at a rate on
the dollar of the assessed valuation of all taxable property
that will produce when extended an amount not to exceed the
total amount of contributions by the policemen to the Fund made
in the calendar year 2 years before the year for which the
applicable annual tax is levied, multiplied by 1.40 for the tax
levy year 1970; by 1.50 for the year 1971; by 1.65 for 1972; by
1.85 for 1973; by 1.90 for 1974; by 1.97 for 1975 through 1981;
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- 354 - LRB099 13050 RPS 36929 b
by 2.00 for 1982 and for each tax levy year through 2014.
Beginning in tax levy year 2015, the city council shall levy a
tax annually at a rate on the dollar of the assessed valuation
of all taxable property that will produce when extended an
annual amount that is equal to no less than the amount of the
city's contribution in each of the following payment years: for
2016, $420,000,000; for 2017, $464,000,000; for 2018,
$500,000,000; for 2019, $557,000,000; for 2020, $579,000000.
Beginning in tax levy year 2020, the city council shall
levy a tax annually at a rate on the dollar of the assessed
valuation of all taxable property that will produce when
extended an annual amount that is equal to no less than (1) the
normal cost to the Fund, plus (2) an annual amount sufficient
to bring the total assets of the Fund up to 90% of the total
actuarial liabilities of the Fund by the end of fiscal year
2055 2040, as annually updated and determined by an enrolled
actuary employed by the Illinois Department of Insurance or by
an enrolled actuary retained by the Fund or the city. In making
these determinations, the required minimum employer
contribution shall be calculated each year as a level
percentage of payroll over the years remaining up to and
including fiscal year 2055 2040 and shall be determined under
the entry age normal actuarial cost method. Beginning in
payment year 2056, the city's total required contribution in
that year and each year thereafter shall be an annual amount
that is equal to no less than (1) the normal cost of the Fund,
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plus (2) the annual amount determined by an enrolled actuary
employed by the Illinois Department of Insurance or by an
enrolled actuary retained by the Fund to be equal to the
amount, if any, needed to bring the total actuarial assets of
the Fund up to 90% of the total actuarial liabilities of the
Fund as of the end of the year, utilizing the entry age normal
cost method as provided above projected unit credit actuarial
cost method. For the purposes of this subsection (a),
contributions by the policeman to the Fund shall not include
payments made by a policeman to establish credit under Section
5-214.2 of this Code.
(a-5) For purposes of determining the required employer
contribution to the Fund, the value of the Fund's assets shall
be equal to the actuarial value of the Fund's assets, which
shall be calculated as follows:
(1) On March 30, 2011, the actuarial value of the
Fund's assets shall be equal to the market value of the
assets as of that date.
(2) In determining the actuarial value of the Fund's
assets for fiscal years after March 30, 2011, any actuarial
gains or losses from investment return incurred in a fiscal
year shall be recognized in equal annual amounts over the
5-year period following that fiscal year.
(a-7) If the city fails to transmit to the Fund
contributions required of it under this Article for more than
90 days after the payment of those contributions is due, the
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Fund shall may, after giving notice to the city, certify to the
State Comptroller the amounts of the delinquent payments in
accordance with any applicable rules of the Comptroller, and
the Comptroller must, beginning in fiscal year 2016, deduct and
remit to deposit into the Fund the certified amounts or a
portion of those amounts from the following proportions of
payments grants of State funds to the city:
(1) in fiscal year 2016, one-third of the total amount
of any payments grants of State funds to the city;
(2) in fiscal year 2017, two-thirds of the total amount
of any payments grants of State funds to the city; and
(3) in fiscal year 2018 and each fiscal year
thereafter, the total amount of any payments grants of
State funds to the city.
The State Comptroller may not deduct from any payments
grants of State funds to the city more than the amount of
delinquent payments certified to the State Comptroller by the
Fund.
(b) The tax shall be levied and collected in like manner
with the general taxes of the city, and is in addition to all
other taxes which the city is now or may hereafter be
authorized to levy upon all taxable property therein, and is
exclusive of and in addition to the amount of tax the city is
now or may hereafter be authorized to levy for general purposes
under any law which may limit the amount of tax which the city
may levy for general purposes. The county clerk of the county
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in which the city is located, in reducing tax levies under
Section 8-3-1 of the Illinois Municipal Code, shall not
consider the tax herein authorized as a part of the general tax
levy for city purposes, and shall not include the tax in any
limitation of the percent of the assessed valuation upon which
taxes are required to be extended for the city.
(c) On or before January 10 of each year, the board shall
notify the city council of the requirement that the tax herein
authorized be levied by the city council for that current year.
The board shall compute the amounts necessary for the purposes
of this fund to be credited to the reserves established and
maintained within the fund; shall make an annual determination
of the amount of the required city contributions; and shall
certify the results thereof to the city council.
As soon as any revenue derived from the tax is collected it
shall be paid to the city treasurer of the city and shall be
held by him for the benefit of the fund in accordance with this
Article.
(d) If the funds available are insufficient during any year
to meet the requirements of this Article, the city may issue
tax anticipation warrants against the tax levy for the current
fiscal year.
(e) The various sums, including interest, to be contributed
by the city, shall be taken from the revenue derived from such
tax or otherwise as expressly provided in this Section. Any
moneys of the city derived from any source other than the tax
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herein authorized shall not be used for any purpose of the fund
nor the cost of administration thereof, unless applied to make
the deposit expressly authorized in this Section or the
additional city contributions required under subsection (h).
(f) If it is not possible or practicable for the city to
make its contributions at the time that salary deductions are
made, the city shall make such contributions as soon as
possible thereafter, with interest thereon to the time it is
made.
(g) In lieu of levying all or a portion of the tax required
under this Section in any year, the city may deposit with the
city treasurer no later than March 1 of that year for the
benefit of the fund, to be held in accordance with this
Article, an amount that, together with the taxes levied under
this Section for that year, is not less than the amount of the
city contributions for that year as certified by the board to
the city council. The deposit may be derived from any source
legally available for that purpose, including, but not limited
to, the proceeds of city borrowings. The making of a deposit
shall satisfy fully the requirements of this Section for that
year to the extent of the amounts so deposited. Amounts
deposited under this subsection may be used by the fund for any
of the purposes for which the proceeds of the tax levied under
this Section may be used, including the payment of any amount
that is otherwise required by this Article to be paid from the
proceeds of that tax.
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- 359 - LRB099 13050 RPS 36929 b
(h) In addition to the contributions required under the
other provisions of this Article, by November 1 of the
following specified years, the city shall deposit with the city
treasurer for the benefit of the fund, to be held and used in
accordance with this Article, the following specified amounts:
$6,300,000 in 1999; $5,880,000 in 2000; $5,460,000 in 2001;
$5,040,000 in 2002; and $4,620,000 in 2003.
The additional city contributions required under this
subsection are intended to decrease the unfunded liability of
the fund and shall not decrease the amount of the city
contributions required under the other provisions of this
Article. The additional city contributions made under this
subsection may be used by the fund for any of its lawful
purposes.
(i) Any proceeds received by the city in relation to the
operation of a casino or casinos within the city shall be
expended by the city for payment to the Policemen's Annuity and
Benefit Fund of Chicago to satisfy the city contribution
obligation in any year.
(Source: P.A. 95-1036, eff. 2-17-09; 96-1495, eff. 1-1-11.)
(40 ILCS 5/5-168.2 new)
Sec. 5-168.2. Funding obligation.
(a) Beginning January 1, 2016, the city shall be obligated
to contribute to the Fund in each fiscal year an amount not
less than the amount determined annually under subsection (a)
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of Section 5-168 of this Code. Notwithstanding any other
provision of law, if the city fails to pay the amount
guaranteed under this Section on or before December 31 of the
year in which such amount is due, the Fund may bring a mandamus
action in the Circuit Court of Cook County to compel the city
to make the required payment, irrespective of other remedies
that may be available to the Fund. The obligations and causes
of action created under this Section shall be in addition to
any other right or remedy otherwise accorded by common law or
State or federal law, and nothing in this Section shall be
construed to deny, abrogate, impair, or waive any such common
law or statutory right or remedy.
(b) In ordering the city to make the required payment, the
court may order a reasonable payment schedule to enable the
city to make the required payment without significantly
imperilling the public health, safety, or welfare. Any payments
required to be made by the city pursuant to this Section are
expressly subordinated to the payment of the principal,
interest, premium, if any, and other payments on or related to
any bonded debt obligation of the city, either currently
outstanding or to be issued, for which the source of repayment
or security thereon is derived directly or indirectly from any
funds collected or received by the city. Payments on such
bonded obligations include any statutory fund transfers or
other prefunding mechanisms or formulas set forth, now or
hereafter, in State law, city ordinance, or bond indentures,
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into debt service funds or accounts of the city related to such
bonded obligations, consistent with the payment schedules
associated with such obligations.
(40 ILCS 5/5-238)
Sec. 5-238. Provisions applicable to new hires after
January 1, 2011 but before January 1, 2016.
(a) Notwithstanding any other provision of this Article,
the provisions of this Section apply to a person who first
becomes a policeman under this Article on or after January 1,
2011 but before January 1, 2016.
(b) A policeman age 55 or more who has 10 or more years of
service in that capacity shall be entitled at his option to
receive a monthly retirement annuity for his service as a
police officer computed by multiplying 2.5% for each year of
such service by his or her final average salary.
The retirement annuity of a policeman who is retiring after
attaining age 50 with 10 or more years of creditable service
shall be reduced by one-half of 1% for each month that the
police officer's age is under age 55.
The maximum retirement annuity under this subsection (b)
shall be 75% of final average salary.
For the purposes of this subsection (b), "final average
salary" means the average monthly salary obtained by dividing
the total salary of the policeman during the 96 consecutive
months of service within the last 120 months of service in
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which the total salary was the highest by the number of months
of service in that period.
Beginning on January 1, 2011, for all purposes under this
Code (including without limitation the calculation of benefits
and employee contributions), the annual salary based on the
plan year of a member or participant to whom this Section
applies shall not exceed $106,800; however, that amount shall
annually thereafter be increased by the lesser of (i) 3% of
that amount, including all previous adjustments, or (ii)
one-half the annual unadjusted percentage increase (but not
less than zero) in the consumer price index-u for the 12 months
ending with the September preceding each November 1, including
all previous adjustments.
(c) Notwithstanding any other provision of this Article,
for a person who first becomes a policeman under this Article
on or after January 1, 2011, the annuity to which the surviving
spouse, children, or parents are entitled under this subsection
(c) shall be in the amount of 66 2/3% of the policeman's earned
annuity at the date of death.
Notwithstanding any other provision of this Article, the
monthly annuity of a survivor of a person who first becomes a
policeman under this Article on or after January 1, 2011 shall
be increased on the January 1 after attainment of age 60 by the
recipient of the survivor's annuity and each January 1
thereafter by 3% or one-half the annual unadjusted percentage
increase (but not less than zero) in the consumer price index-u
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- 363 - LRB099 13050 RPS 36929 b
for the 12 months ending with the September preceding each
November 1, whichever is less, of the originally granted
survivor's annuity. If the unadjusted percentage change in the
consumer price index-u for a 12-month period ending in
September is zero or, when compared with the preceding period,
decreases, then the annuity shall not be increased.
For the purposes of this Section, "consumer price index-u"
means the index published by the Bureau of Labor Statistics of
the United States Department of Labor that measures the average
change in prices of goods and services purchased by all urban
consumers, United States city average, all items, 1982-84 =
100. The new amount resulting from each annual adjustment shall
be determined by the Public Pension Division of the Department
of Insurance and made available to the boards of the pension
funds.
(Source: P.A. 96-1495, eff. 1-1-11.)
(40 ILCS 5/5-238.5 new)
Sec. 5-238.5. Defined benefit provisions applicable to new
hires on or after January 1, 2016.
(a) The provisions of this Section apply to a person who,
on or after January 1, 2016, first becomes a policeman under
this Article, notwithstanding any other provision of this Code
to the contrary.
(b) For the purposes of this Section, "final average
salary" means the average monthly salary obtained by dividing
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- 364 - LRB099 13050 RPS 36929 b
the total salary of the policeman during the 96 consecutive
months of service within the last 120 months of service in
which the total salary was the highest by the number of months
of service in that period.
(b-5) Beginning January 1, 2016, for all purposes under
this Code (including without limitation the calculation of
benefits and employee contributions), the annual earnings,
salary, or wages (based on the plan year) of a policeman to
whom this Section applies shall not exceed the Social Security
Wage Base.
(b-10) A policeman to whom this Section applies shall be
entitled to participate and accrue benefits in the defined
contribution plan established under Section 7-225.5.
(c) Each policeman is required to contribute 5 1/2% of each
payment of salary toward the retirement annuity. The
contributions shall continue during the entire time the
policeman is in service.
(d) The retirement annuity for any policeman shall be 1
1/2% of final average salary, as defined in this Section, for
each year of service.
(e) A policeman is entitled to a retirement annuity upon
written application if he or she has attained age 55 and has at
least 30 years of service credit and is otherwise eligible
under the requirements of this Article or has attained age 60
and has at least 20 years of service credit and is otherwise
eligible under the requirements of this Article or attained age
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- 365 - LRB099 13050 RPS 36929 b
65 and has at least 5 years of service credit and is otherwise
eligible under the requirements of this Article.
(f) Any retirement annuity or supplemental annuity shall be
subject to annual increases on the January 1 occurring either
on or after the attainment of age 67 or the first anniversary
of the annuity start date, whichever is later. Each annual
increase shall be calculated at 3% or one-half the annual
unadjusted percentage increase (but not less than zero) in the
consumer price index-u for the 12 months ending with the
September preceding each November 1, whichever is less, of the
originally granted retirement annuity. If the annual
unadjusted percentage change in the consumer price index-u for
the 12 months ending with the September preceding each November
1 is zero or there is a decrease, then the annuity shall not be
increased.
For the purposes of this Section, "consumer price index-u"
means the index published by the Bureau of Labor Statistics of
the United States Department of Labor that measures the average
change in prices of goods and services purchased by all urban
consumers, United States city average, all items, 1982-84 =
100. The new amount resulting from each annual adjustment shall
be determined by the Public Pension Division of the Department
of Insurance and made available to the boards of the retirement
systems and pension funds by November 1 of each year.
(g) The initial survivor's or widow's annuity of an
otherwise eligible survivor or widow of a retired policeman who
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- 366 - LRB099 13050 RPS 36929 b
first became a policeman on or after January 1, 2016 shall be
in the amount of 60% of the retired policeman's retirement
annuity at the date of death. In the case of the death of a
policeman who has not retired and who first became a policeman
on or after January 1, 2016, eligibility for a survivor's or
widow's annuity shall be determined by the applicable
provisions of this Article. The initial benefit shall be 60% of
the earned annuity without a reduction due to age. A child's
annuity of an otherwise eligible child shall be 75% of the
amount prescribed under the applicable provisions of this
Article. Any survivor's or widow's annuity shall be increased
(1) on each January 1 occurring on or after the commencement of
the annuity if the deceased policeman died while receiving a
retirement annuity or (2) in other cases, on each January 1
occurring after the first anniversary of the commencement of
the annuity. Each annual increase shall be calculated at 3% or
one-half the annual unadjusted percentage increase (but not
less than zero) in the consumer price index-u for the 12 months
ending with the September preceding each November 1, whichever
is less, of the originally granted survivor's annuity. If the
annual unadjusted percentage change in the consumer price
index-u for the 12 months ending with the September preceding
each November 1 is zero or there is a decrease, then the
annuity shall not be increased.
(h) If a person who first becomes a policeman on or after
January 1, 2016 is receiving a retirement pension or retirement
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- 367 - LRB099 13050 RPS 36929 b
annuity under this Article and becomes a member or participant
under any other system or fund created by this Code and is
employed on a full-time basis, except for those policemen
exempted from the provisions of this Section under subsection
(a) of this Section, then the person's retirement annuity or
retirement pension under this Article shall be suspended during
that employment. Upon termination of that employment, the
person's retirement annuity or retirement pension payments
shall resume and be recalculated if recalculation is provided
for under this Article.
If a person who first becomes a policeman on or after
January 1, 2016 is receiving a retirement pension or retirement
annuity under this Article and accepts on a contractual basis a
position to provide services to a governmental entity from
which he or she has retired, then that person's retirement
pension or retirement annuity earned as an active employee of
the employer shall be suspended during that contractual
service. A person receiving an annuity or retirement pension
under this Article shall notify the fund from which he or she
is receiving an annuity or retirement pension, as well as his
or her contractual employer, of his or her retirement status
before accepting contractual employment. A person who fails to
submit such notification shall be guilty of a Class A
misdemeanor and required to pay a fine of $1,000. Upon
termination of that contractual employment, the person's
retirement annuity or retirement pension payments shall resume
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- 368 - LRB099 13050 RPS 36929 b
and, if appropriate, be recalculated if recalculation is
provided for under this Article.
(i) Every employer of a policeman shall pay to the Fund an
employer contribution, computed by the Fund, equal to the
normal cost of the benefits provided in this Section for the
employer's policeman, less the amount of employee
contributions.
(j) The benefits provided to policemen under this Section
may be modified prospectively. Before a policeman may earn
service credit under this Section, the Fund must have on file a
signature from the policeman acknowledging that benefits
provided under this Section may be modified prospectively.
(k) In the case of a conflict between the provisions of
this Section and any other provision of this Code, the
provisions of this Section shall control.
(40 ILCS 5/6-128.2) (from Ch. 108 1/2, par. 6-128.2)
Sec. 6-128.2. Minimum retirement annuities.
(a) Beginning with the monthly payment due in January,
1988, the monthly annuity payment for any person who is
entitled to receive a retirement annuity under this Article in
January, 1990 and has retired from service at age 50 or over
with 20 or more years of service, and for any person who
retires from service on or after January 24, 1990 at age 50 or
over with 20 or more years of service, shall not be less than
$475 per month. The $475 minimum annuity is exclusive of any
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automatic annual increases provided by Sections 6-164 and
6-164.1, but not exclusive of previous raises in the minimum
annuity as provided by any Section of this Article.
Beginning January 1, 1992, the minimum retirement annuity
payable to any person who has retired from service at age 50 or
over with 20 or more years of service and is entitled to
receive a retirement annuity under this Article on that date,
or who retires from service at age 50 or over with 20 or more
years of service after that date, shall be $650 per month.
Beginning January 1, 1993, the minimum retirement annuity
payable to any person who has retired from service at age 50 or
over with 20 or more years of service and is entitled to
receive a retirement annuity under this Article on that date,
or who retires from service at age 50 or over with 20 or more
years of service after that date, shall be $750 per month.
Beginning January 1, 1994, the minimum retirement annuity
payable to any person who has retired from service at age 50 or
over with 20 or more years of service and is entitled to
receive a retirement annuity under this Article on that date,
or who retires from service at age 50 or over with 20 or more
years of service after that date, shall be $850 per month.
Beginning January 1, 2004, the minimum retirement annuity
payable to any person who has retired from service at age 50 or
over with 20 or more years of service and is entitled to
receive a retirement annuity under this Article on that date,
or who retires from service at age 50 or over with 20 or more
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- 370 - LRB099 13050 RPS 36929 b
years of service after that date, shall be $950 per month.
Beginning January 1, 2005, the minimum retirement annuity
payable to any person who has retired from service at age 50 or
over with 20 or more years of service and is entitled to
receive a retirement annuity under this Article on that date,
or who retires from service at age 50 or over with 20 or more
years of service after that date, shall be $1,050 per month.
Beginning January 1, 2016, the minimum retirement annuity
payable to any person who has retired from service at age 50 or
over with 20 or more years of service and is entitled to
receive a retirement annuity under this Article on that date,
or who retires from service at age 50 or over with 20 or more
years of service after that date, shall be no less than 125% of
the Federal Poverty Level. For purposes of this Section, the
"Federal Poverty Level" shall be determined pursuant to the
poverty guidelines updated periodically in the Federal
Register by the United States Department of Health and Human
Services under the authority of 42 U.S.C. 9902(2).
The minimum annuities established by this subsection (a) do
include previous raises in the minimum annuity as provided by
any Section of this Article, but do not include any sums which
have been added or will be added to annuity payments by the
automatic annual increases provided by Sections 6-164 and
6-164.1. Such annual increases shall be paid in addition to the
minimum amounts specified in this subsection.
(b) Notwithstanding any other provision of this Article,
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beginning January 1, 1990, the minimum retirement annuity
payable to any person who is entitled to receive a retirement
annuity under this Article on that date shall be $475 per
month.
(c) The changes made to this Section by this amendatory Act
of the 93rd General Assembly apply to all persons receiving a
retirement annuity under this Article, without regard to
whether the retirement of the fireman occurred prior to the
effective date of this amendatory Act.
(Source: P.A. 93-654, eff. 1-16-04.)
(40 ILCS 5/6-165) (from Ch. 108 1/2, par. 6-165)
Sec. 6-165. Financing; tax.
(a) Except as expressly provided in this Section, each city
shall levy a tax annually upon all taxable property therein for
the purpose of providing revenue for the fund. For the years
prior to the year 1960, the tax rate shall be as provided for
in the "Firemen's Annuity and Benefit Fund of the Illinois
Municipal Code". The tax, from and after January 1, 1968 to and
including the year 1971, shall not exceed .0863% of the value,
as equalized or assessed by the Department of Revenue, of all
taxable property in the city. Beginning with the year 1972 and
through 2014, the city shall levy a tax annually at a rate on
the dollar of the value, as equalized or assessed by the
Department of Revenue of all taxable property within such city
that will produce, when extended, not to exceed an amount equal
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to the total amount of contributions by the employees to the
fund made in the calendar year 2 years prior to the year for
which the annual applicable tax is levied, multiplied by 2.23
through the calendar year 1981, and by 2.26 for the year 1982
and for each tax levy year through 2014. Beginning in tax levy
year 2015, the city council shall levy a tax annually at a rate
on the dollar of the assessed valuation of all taxable property
that will produce when extended an annual amount that is equal
to no less than the amount of the city's contribution in each
of the following payment years: for 2016, $199,000,000; for
2017, $208,000,000; for 2018, $227,000,000; for 2019,
$235,000,000; for 2020, $245,000,000.
Beginning in tax levy year 2020, the city council shall
levy a tax annually at a rate on the dollar of the assessed
valuation of all taxable property that will produce when
extended an annual amount that is equal to no less than (1) the
normal cost to the Fund, plus (2) an annual amount sufficient
to bring the total assets of the Fund up to 90% of the total
actuarial liabilities of the Fund by the end of fiscal year
2055 2040, as annually updated and determined by an enrolled
actuary employed by the Illinois Department of Insurance or by
an enrolled actuary retained by the Fund or the city. In making
these determinations, the required minimum employer
contribution shall be calculated each year as a level
percentage of payroll over the years remaining up to and
including fiscal year 2055 2040 and shall be determined under
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the entry age normal actuarial cost method. Beginning in
payment year 2056, the city's required contribution in that
year and for each year thereafter shall be an annual amount
that is equal to no less than (1) the normal cost to the Fund,
plus (2) the annual amount determined by an enrolled actuary
employed by the Illinois Department of Insurance or by an
enrolled actuary retained by the Fund to be equal to the
amount, if any, needed to bring the total actuarial assets of
the Fund up to 90% of the total actuarial liabilities of the
Fund as of the end of the year, utilizing the entry age normal
actuarial cost method as provided above projected unit credit
actuarial cost method.
To provide revenue for the ordinary death benefit
established by Section 6-150 of this Article, in addition to
the contributions by the firemen for this purpose, the city
council shall for the year 1962 and each year thereafter
annually levy a tax, which shall be in addition to and
exclusive of the taxes authorized to be levied under the
foregoing provisions of this Section, upon all taxable property
in the city, as equalized or assessed by the Department of
Revenue, at such rate per cent of the value of such property as
shall be sufficient to produce for each year the sum of
$142,000.
The amounts produced by the taxes levied annually, together
with the deposit expressly authorized in this Section, shall be
sufficient, when added to the amounts deducted from the
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salaries of firemen and applied to the fund, to provide for the
purposes of the fund.
(a-5) For purposes of determining the required employer
contribution to the Fund, the value of the Fund's assets shall
be equal to the actuarial value of the Fund's assets, which
shall be calculated as follows:
(1) On March 30, 2011, the actuarial value of the
Fund's assets shall be equal to the market value of the
assets as of that date.
(2) In determining the actuarial value of the Fund's
assets for fiscal years after March 30, 2011, any actuarial
gains or losses from investment return incurred in a fiscal
year shall be recognized in equal annual amounts over the
5-year period following that fiscal year.
(a-7) If the city fails to transmit to the Fund
contributions required of it under this Article for more than
90 days after the payment of those contributions is due, the
Fund shall may, after giving notice to the city, certify to the
State Comptroller the amounts of the delinquent payments in
accordance with any applicable rules of the Comptroller, and
the Comptroller must, beginning in fiscal year 2016, deduct and
remit to deposit into the Fund the certified amounts or a
portion of those amounts from the following proportions of
payments grants of State funds to the city:
(1) in fiscal year 2016, one-third of the total amount
of any payments grants of State funds to the city;
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(2) in fiscal year 2017, two-thirds of the total amount
of any payments grants of State funds to the city; and
(3) in fiscal year 2018 and each fiscal year
thereafter, the total amount of any payments grants of
State funds to the city.
The State Comptroller may not deduct from any payments
grants of State funds to the city more than the amount of
delinquent payments certified to the State Comptroller by the
Fund.
(b) The taxes shall be levied and collected in like manner
with the general taxes of the city, and shall be in addition to
all other taxes which the city may levy upon all taxable
property therein and shall be exclusive of and in addition to
the amount of tax the city may levy for general purposes under
Section 8-3-1 of the Illinois Municipal Code, approved May 29,
1961, as amended, or under any other law or laws which may
limit the amount of tax which the city may levy for general
purposes.
(c) The amounts of the taxes to be levied in each year
shall be certified to the city council by the board.
(d) As soon as any revenue derived from such taxes is
collected, it shall be paid to the city treasurer and held for
the benefit of the fund, and all such revenue shall be paid
into the fund in accordance with the provisions of this
Article.
(e) If the funds available are insufficient during any year
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to meet the requirements of this Article, the city may issue
tax anticipation warrants, against the tax levies herein
authorized for the current fiscal year.
(f) The various sums, hereinafter stated, including
interest, to be contributed by the city, shall be taken from
the revenue derived from the taxes or otherwise as expressly
provided in this Section. Except for defraying the cost of
administration of the fund during the calendar year in which a
city first attains a population of 500,000 and comes under the
provisions of this Article and the first calendar year
thereafter, any money of the city derived from any source other
than these taxes or the sale of tax anticipation warrants shall
not be used to provide revenue for the fund, nor to pay any
part of the cost of administration thereof, unless applied to
make the deposit expressly authorized in this Section or the
additional city contributions required under subsection (h).
(g) In lieu of levying all or a portion of the tax required
under this Section in any year, the city may deposit with the
city treasurer no later than March 1 of that year for the
benefit of the fund, to be held in accordance with this
Article, an amount that, together with the taxes levied under
this Section for that year, is not less than the amount of the
city contributions for that year as certified by the board to
the city council. The deposit may be derived from any source
legally available for that purpose, including, but not limited
to, the proceeds of city borrowings. The making of a deposit
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shall satisfy fully the requirements of this Section for that
year to the extent of the amounts so deposited. Amounts
deposited under this subsection may be used by the fund for any
of the purposes for which the proceeds of the taxes levied
under this Section may be used, including the payment of any
amount that is otherwise required by this Article to be paid
from the proceeds of those taxes.
(h) In addition to the contributions required under the
other provisions of this Article, by November 1 of the
following specified years, the city shall deposit with the city
treasurer for the benefit of the fund, to be held and used in
accordance with this Article, the following specified amounts:
$6,300,000 in 1999; $5,880,000 in 2000; $5,460,000 in 2001;
$5,040,000 in 2002; and $4,620,000 in 2003.
The additional city contributions required under this
subsection are intended to decrease the unfunded liability of
the fund and shall not decrease the amount of the city
contributions required under the other provisions of this
Article. The additional city contributions made under this
subsection may be used by the fund for any of its lawful
purposes.
(i) Any proceeds received by the city in relation to the
operation of a casino or casinos within the city shall be
expended by the city for payment to the Firemen's Annuity and
Benefit Fund of Chicago to satisfy the city contribution
obligation in any year.
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(Source: P.A. 96-1495, eff. 1-1-11.)
(40 ILCS 5/6-165.2 new)
Sec. 6-165.2. Funding Obligation.
(a) Beginning January 1, 2016, the city shall be obligated
to contribute to the Fund in each fiscal year an amount not
less than the amount determined annually under subsection (a)
of Section 6-165 of this Code. Notwithstanding any other
provision of law, if the city fails to pay the amount
guaranteed under this Section on or before December 31 of the
year in which such amount is due, the Fund may bring a mandamus
action in the Circuit Court of Cook County to compel the city
to make the required payment, irrespective of other remedies
that may be available to the Fund. The obligations and causes
of action created under this Section shall be in addition to
any other right or remedy otherwise accorded by common law or
State or federal law, and nothing in this Section shall be
construed to deny, abrogate, impair, or waive any such common
law or statutory right or remedy.
(b) In ordering the city to make the required payment, the
court may order a reasonable payment schedule to enable the
city to make the required payment without significantly
imperilling the public health, safety, or welfare. Any payments
required to be made by the city pursuant to this Section are
expressly subordinated to the payment of the principal,
interest, premium, if any, and other payments on or related to
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any bonded debt obligation of the city, either currently
outstanding or to be issued, for which the source of repayment
or security thereon is derived directly or indirectly from any
funds collected or received by the city or collected or
received on behalf of the city. Payments on such bonded
obligations include any statutory fund transfers or other
prefunding mechanisms or formulas set forth, now or hereafter,
in State law, city ordinance, or bond indentures, into debt
service funds or accounts of the city related to such bonded
obligations, consistent with the payment schedules associated
with such obligations.
(40 ILCS 5/6-229)
Sec. 6-229. Provisions applicable to new hires after
January 1, 2011 but before January 1, 2016.
(a) Notwithstanding any other provision of this Article,
the provisions of this Section apply to a person who first
becomes a fireman under this Article on or after January 1,
2011 but before January 1, 2016.
(b) A fireman age 55 or more who has 10 or more years of
service in that capacity shall be entitled at his option to
receive a monthly retirement annuity for his service as a
fireman computed by multiplying 2.5% for each year of such
service by his or her final average salary.
The retirement annuity of a fireman who is retiring after
attaining age 50 with 10 or more years of creditable service
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shall be reduced by one-half of 1% for each month that the
fireman's age is under age 55.
The maximum retirement annuity under this subsection (b)
shall be 75% of final average salary.
For the purposes of this subsection (b), "final average
salary" means the average monthly salary obtained by dividing
the total salary of the fireman during the 96 consecutive
months of service within the last 120 months of service in
which the total salary was the highest by the number of months
of service in that period.
Beginning on January 1, 2011, for all purposes under this
Code (including without limitation the calculation of benefits
and employee contributions), the annual salary based on the
plan year of a member or participant to whom this Section
applies shall not exceed $106,800; however, that amount shall
annually thereafter be increased by the lesser of (i) 3% of
that amount, including all previous adjustments, or (ii)
one-half the annual unadjusted percentage increase (but not
less than zero) in the consumer price index-u for the 12 months
ending with the September preceding each November 1, including
all previous adjustments.
(c) Notwithstanding any other provision of this Article,
for a person who first becomes a fireman under this Article on
or after January 1, 2011, the annuity to which the surviving
spouse, children, or parents are entitled under this subsection
(c) shall be in the amount of 66 2/3% of the fireman's earned
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pension at the date of death.
Notwithstanding any other provision of this Article, the
monthly annuity of a survivor of a person who first becomes a
fireman under this Article on or after January 1, 2011 shall be
increased on the January 1 after attainment of age 60 by the
recipient of the survivor's pension and each January 1
thereafter by 3% or one-half the annual unadjusted percentage
increase in the consumer price index-u for the 12 months ending
with September preceding each November 1, whichever is less, of
the originally granted survivor's annuity. If the annual
unadjusted percentage change in the consumer price index-u for
a 12-month period ending in September is zero or, when compared
with the preceding period, decreases, then the annuity shall
not be increased.
(Source: P.A. 96-1495, eff. 1-1-11.)
(40 ILCS 5/6-229.5 new)
Sec. 6-229.5. Defined benefit provisions applicable to new
hires on or after January 1, 2016.
(a) The provisions of this Section apply to a person who,
on or after January 1, 2016, first becomes a fireman under this
Article, notwithstanding any other provision of this Code to
the contrary.
(b) For the purposes of this Section, "final average
salary" means the average monthly salary obtained by dividing
the total salary or earnings calculated under the Article
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applicable to the fireman during the 96 consecutive months of
service within the last 120 months of service in which the
total salary was the highest by the number of months of service
in that period.
(b-5) Beginning January 1, 2016, for all purposes under
this Code (including without limitation the calculation of
benefits and employee contributions), the annual earnings,
salary, or wages (based on the plan year) of a fireman to whom
this Section applies shall not exceed the Social Security Wage
Base.
(b-10) A fireman to whom this Section applies shall be
entitled to participate and accrue benefits in the defined
contribution plan established under Section 7-225.5.
(c) Each fireman is required to contribute 5 1/2% of each
payment of salary toward the retirement annuity. The
contributions shall continue during the entire time the fireman
is in service.
(d) The retirement annuity for any fireman shall be 1 1/2%
of final average salary, as defined in this Section, for each
year of service.
(e) A fireman is entitled to a retirement annuity upon
written application if he or she has attained age 55 and has at
least 30 years of service credit and is otherwise eligible
under the requirements of this Article or has attained age 60
and has at least 20 years of service credit and is otherwise
eligible under the requirements of this Article or attained age
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65 and has at least 5 years of service credit and is otherwise
eligible under the requirements of this Article.
(f) Any retirement annuity or supplemental annuity shall be
subject to annual increases on the January 1 occurring either
on or after the attainment of age 67 or the first anniversary
of the annuity start date, whichever is later. Each annual
increase shall be calculated at 3% or one-half the annual
unadjusted percentage increase (but not less than zero) in the
consumer price index-u for the 12 months ending with the
September preceding each November 1, whichever is less, of the
originally granted retirement annuity. If the annual
unadjusted percentage change in the consumer price index-u for
the 12 months ending with the September preceding each November
1 is zero or there is a decrease, then the annuity shall not be
increased.
For the purposes of this Section, "consumer price index-u"
means the index published by the Bureau of Labor Statistics of
the United States Department of Labor that measures the average
change in prices of goods and services purchased by all urban
consumers, United States city average, all items, 1982-84 =
100. The new amount resulting from each annual adjustment shall
be determined by the Public Pension Division of the Department
of Insurance and made available to the boards of the retirement
systems and pension funds by November 1 of each year.
(g) The initial survivor's or widow's annuity of an
otherwise eligible survivor or widow of a retired fireman who
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first became a fireman on or after January 1, 2016 shall be in
the amount of 60% of the retired fireman's retirement annuity
at the date of death. In the case of the death of a fireman who
has not retired and who first became a fireman on or after
January 1, 2016, eligibility for a survivor's or widow's
annuity shall be determined by the applicable provisions of
this Article. The initial benefit shall be 60% of the earned
annuity without a reduction due to age. A child's annuity of an
otherwise eligible child shall be 75% of the amount prescribed
under the applicable provisions of this Article. Any survivor's
or widow's annuity shall be increased (1) on each January 1
occurring on or after the commencement of the annuity if the
deceased fireman died while receiving a retirement annuity or
(2) in other cases, on each January 1 occurring after the first
anniversary of the commencement of the annuity. Each annual
increase shall be calculated at 3% or one-half the annual
unadjusted percentage increase (but not less than zero) in the
consumer price index-u for the 12 months ending with the
September preceding each November 1, whichever is less, of the
originally granted survivor's annuity. If the annual
unadjusted percentage change in the consumer price index-u for
the 12 months ending with the September preceding each November
1 is zero or there is a decrease, then the annuity shall not be
increased.
(h) If a person who first becomes a fireman on or after
January 1, 2016 is receiving a retirement pension or retirement
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annuity under this Article and becomes a member or participant
under any other system or fund created by this Code and is
employed on a full-time basis, except for those firemen
exempted from the provisions of this Section under subsection
(a) of this Section, then the person's retirement annuity or
retirement pension under this Article shall be suspended during
that employment. Upon termination of that employment, the
person's retirement annuity or retirement pension payments
shall resume and be recalculated if recalculation is provided
for under this Article.
If a person who first becomes a fireman on or after January
1, 2016 is receiving a retirement pension or retirement annuity
under this Article and accepts on a contractual basis a
position to provide services to a governmental entity from
which he or she has retired, then that person's retirement
pension or retirement annuity earned as an active employee of
the employer shall be suspended during that contractual
service. A person receiving an annuity or retirement pension
under this Article shall notify the fund from which he or she
is receiving an annuity or retirement pension, as well as his
or her contractual employer, of his or her retirement status
before accepting contractual employment. A person who fails to
submit such notification shall be guilty of a Class A
misdemeanor and required to pay a fine of $1,000. Upon
termination of that contractual employment, the person's
retirement annuity or retirement pension payments shall resume
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and, if appropriate, be recalculated if recalculation is
provided for under this Article.
(i) Every employer of a fireman shall pay to the Fund an
employer contribution, computed by the Fund, equal to the
normal cost of the benefits provided in this Section for the
employer's fireman, less the amount of employee contributions.
(j) The benefits provided to firemen under this Section may
be modified prospectively. Before a fireman may earn service
credit under this Section, the Fund must have on file a
signature from the fireman acknowledging that benefits
provided under this Section may be modified prospectively.
(k) In the case of a conflict between the provisions of
this Section and any other provision of this Code, the
provisions of this Section shall control.
(40 ILCS 5/7-195.2 new)
Sec. 7-195.2. To accept transfers and manage assets of
funds established under Articles 3 and 4. To accept the
transfer of funds from a pension fund established under Article
3 or 4 of this Code in order to manage and invest the assets
transferred.
(40 ILCS 5/7-195.3 new)
Sec. 7-195.3. To transfer funds to Article 3 and 4 funds.
As soon as practical after the Fund receives a written request
for an amount of money from the board of a pension fund
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established under Article 3 or 4 of this Code to be used by the
fund established under Article 3 or 4 of this Code, the Fund
shall transfer that amount to that pension fund, which shall be
used by that pension fund in accordance with the provisions of
Article 3 or 4 of this Code, whichever is applicable.
(40 ILCS 5/7-201.5 new)
Sec. 7-201.5. Transfer of securities and investment
functions.
(a) Within 12 months after the effective date of this
amendatory Act of the 99th General Assembly, the boards of the
pension funds established under Article 3 or 4 of this Code
shall transfer to the Board for management and investment all
of their securities or for which commitments have been made,
and all funds, assets, or moneys representing permanent or
temporary investments, or cash reserves maintained for the
purpose of obtaining income thereon.
(b) The boards of the pension funds established under
Article 3 or 4 of this Code that come under the authority of
the Illinois Municipal Retirement Fund for the management of
its investments and the performance of investment functions
previously performed by such board shall effect a transfer of
securities and other assets after completion of an audit by a
certified public accountant of such securities and other assets
as authorized and approved by the Illinois Municipal Retirement
Fund. The expense of such audit shall be defrayed by the board.
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Upon such transfer, the authority of the Illinois Municipal
Retirement Fund in the case of such pension fund shall be
effective. These transfers shall be receipted for in detail by
the Chairman and director of the board.
(c) Upon receipt of transfer of the investment assets the
Illinois Municipal Retirement Fund shall assume all investment
responsibility for every pension fund established under
Article 3 or 4 of this Code.
(d) The Illinois Municipal Retirement Fund shall keep
detailed, individual records of investments, fund balances,
and investment returns to be shared with the applicable pension
fund established under Article 3 or 4 of this Code. The
investment assets of each pension fund established under
Article 3 or 4 shall not be commingled.
(40 ILCS 5/7-225.5 new)
Sec. 7-225.5. Defined contribution plan. By January 1,
2016, the Fund shall prepare and implement a defined
contribution plan for persons who participate in a fund
established under Article 3, 4, 5, or 6 of this Code and first
becomes a member or a participant under that Article on or
after January 1, 2016.
The defined contribution plan developed under this Section
shall be a plan that aggregates employer and employee
contributions in individual participant accounts which, after
meeting any other requirements, are used for payouts after
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retirement in accordance with this Section and any other
applicable laws.
As used in this Section, "defined benefit plan" means the
retirement plan available under Sections 3-111.5, 4-109.5,
5-238.5, and 6-229.5.
(1) Under the defined contribution plan, an active
eligible participant who participates in the defined
benefit plan under Article 3, 4, 5, or 6 shall begin
accruing benefits in the defined contribution plan in
addition to the defined benefit plan.
(2) The member must contribute at least 4 1/2% of each
payment of salary to the defined contribution plan.
(3) An employer must contribute at least 3% of each
payment of a participant's salary to the participant's
defined contribution plan.
(4) A member or employer may contribute additional
contributions to an individual participant's self-managed
plan account, not to exceed limits set forth by the
Internal Revenue Service.
(5) The defined contribution plan shall require 5 years
of participation in the defined contribution plan before
vesting in employer contributions. If the participant
fails to vest, the employer contributions, and the earnings
thereon, shall be forfeited.
(6) The defined contribution plan shall provide a
variety of options for investments. These options shall
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include investments handled by the System as well as
private sector investment options.
(7) The defined contribution plan shall provide a
variety of options for payouts to retirees and their
survivors.
(8) The Fund shall reduce the employee contributions
credited to the participant's defined contribution plan
account by an amount determined by the System to cover the
cost of offering these benefits and any applicable
administrative fees.
(9) In no event shall the Fund, its staff, its
authorized representatives, or the Board be liable for any
information given to an employee under this Section.
(40 ILCS 5/14-103.41 new)
Sec. 14-103.41. Tier 1 member; Tier 2 member; multitier
participant; multitier retiree.
"Tier 1 member": A member of this System who first became a
member or participant before January 1, 2011 under any
reciprocal retirement system or pension fund established under
this Code other than a retirement system or pension fund
established under Article 2, 3, 4, 5, 6, or 18 of this Code;
but, for a member who has elected to become a Tier 2 member in
accordance with subdivision (a)(2) of Section 14-160, only with
respect to service performed or established before the
effective date of that election.
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"Tier 2 member": A member of this System who first became a
participant on or after January 1, 2011 and was not otherwise a
Tier 1 member; and a former Tier 1 member who has elected to
become a Tier 2 member in accordance with subdivision (a)(2) of
Section 14-160, but only with respect to service performed or
established on or after the effective date of that election.
"Multitier participant": A member of this System who has
both Tier 1 service and Tier 2 service under this Article.
"Multitier retiree": A former multitier participant who
has made the election to retire and has terminated service.
(40 ILCS 5/14-103.42 new)
Sec. 14-103.42. Tier 1 service; Tier 2 service.
"Tier 1 service": Service under this Article performed or
established as a Tier 1 member.
"Tier 2 service": Service under this Article performed or
established as a Tier 2 member.
(40 ILCS 5/14-106) (from Ch. 108 1/2, par. 14-106)
(Text of Section WITHOUT the changes made by P.A. 98-599,
which has been held unconstitutional)
Sec. 14-106. Membership service credit; election of Tier 2
status.
(a) After January 1, 1944, all service of a member since he
last became a member with respect to which contributions are
made shall count as membership service; provided, that for
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service on and after July 1, 1950, 12 months of service shall
constitute a year of membership service, the completion of 15
days or more of service during any month shall constitute 1
month of membership service, 8 to 15 days shall constitute 1/2
month of membership service and less than 8 days shall
constitute 1/4 month of membership service. The payroll record
of each department shall constitute conclusive evidence of the
record of service rendered by a member.
(b) For a member who is employed and paid on an
academic-year basis rather than on a 12-month annual basis,
employment for a full academic year shall constitute a full
year of membership service, except that the member shall not
receive more than one year of membership service credit (plus
any additional service credit granted for unused sick leave)
for service during any 12-month period. This subsection (b)
applies to all such service for which the member has not begun
to receive a retirement annuity before January 1, 2001.
(c) A member shall be entitled to additional service
credit, under rules prescribed by the Board, for accumulated
unused sick leave credited to his account in the last
Department on the date of withdrawal from service or for any
period for which he would have been eligible to receive
benefits under a sick pay plan authorized by law, if he had
suffered a sickness or accident on the date of withdrawal from
service. It shall be the responsibility of the last Department
to certify to the Board the length of time salary or benefits
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would have been paid to the member based upon the accumulated
unused sick leave or the applicable sick pay plan if he had
become entitled thereto because of sickness on the date that
his status as an employee terminated. This period of service
credit granted under this paragraph shall not be considered in
determining the date the retirement annuity is to begin, or
final average compensation.
(d) An active Tier 1 member who has elected to become a
Tier 2 member in accordance with subdivision (a)(2) of Section
14-160 shall become a Tier 2 member with respect to service
performed or established on or after the effective date of that
election. With respect to such service, the member shall be
subject to the applicable provisions of Section 1-160 and the
provisions of this Article relating to multitier participants.
(Source: P.A. 92-14, eff. 6-28-01.)
(40 ILCS 5/14-107.5 new)
Sec. 14-107.5. Retirement annuity; multitier participants.
(a) This Section applies only to multitier participants and
multitier retirees as defined in this Article.
To the extent that the provisions of this Section operate
to modify or affect the other provisions of this Article, or of
Section 1-160 or Article 20 of this Code, the provisions of
this Section shall control with respect to multitier
participants and multitier retirees of this System.
(b) The retirement annuity of a multitier participant who
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has both Tier 1 service and Tier 2 service under this Article
shall be determined in 2 parts: (i) annuity based on Tier 1
service and Tier 1 compensation limitations and eligibility
requirements; and (ii) annuity based on Tier 2 service and Tier
2 compensation limitations and eligibility requirements.
However, the multitier participant's total service shall be
considered for purposes of determining eligibility to receive
an annuity and for determining the applicable rate for a
stepped formula. Final average compensation shall be
determined using the compensation limitations applicable to
the participant from time to time during the relevant periods
of service; final average compensation for the Tier 1 portion
of the retirement annuity shall be based only on compensation
for Tier 1 service.
(c) A multitier participant who meets the Tier 1
eligibility requirements may elect to begin receiving the Tier
1 portion of the annuity before meeting the Tier 2 eligibility
requirements; upon meeting the Tier 2 eligibility
requirements, the annuity shall be increased by the portion
attributable to Tier 2 service.
(d) Automatic annual increases in retirement annuity shall
be calculated separately for each portion of the retirement
annuity, using the applicable Tier 1 or Tier 2 formula and
eligibility requirements. For the purposes of calculating the
automatic annual increases in the Tier 2 portion of the
annuity, the retirement date shall be deemed to be the date
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upon which the Tier 2 portion of the annuity first became
payable to the annuitant.
(40 ILCS 5/14-120.5 new)
Sec. 14-120.5. Survivor's annuity; multitier participants.
(a) This Section applies only to a survivor's annuity or
other benefit payable to an eligible survivor of a multitier
participant or multitier retiree.
To the extent that the provisions of this Section operate
to modify or affect the other provisions of this Article, or of
Section 1-160 or Article 20 of this Code, the provisions of
this Section shall control with respect to a survivor of a
multitier participant or multitier retiree of this System.
(b) The changes made to this Article by this amendatory Act
of the 99th General Assembly (moving active Tier 1 participants
into Tier 2 and creating multitier participants and retirees)
are not intended to affect eligibility for survivor's benefits.
(c) To the extent that the survivor's annuity is calculated
as a percentage of an actual or hypothetical retirement
annuity, the survivor's annuity shall be determined in 2 parts:
(i) annuity based on the Tier 1 portion of the retirement
annuity; and (ii) annuity based on the Tier 2 portion of the
retirement annuity.
(d) To the extent that the survivor's annuity is calculated
as a percentage of compensation or final average compensation,
the applicable compensation shall be determined using the
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compensation limitations applicable to the participant from
time to time during the relevant periods of service.
(e) Automatic annual increases in a survivor's annuity that
is calculated as a percentage of an actual or hypothetical
retirement annuity shall be calculated separately for each
portion of the survivor's annuity, using the applicable Tier 1
or Tier 2 formula.
(f) With respect to any other benefit payable to a survivor
of a multitier participant or multitier retiree, the System
shall determine the appropriate manner of determining the
amount of the benefit, giving deference to fairness and the
principles otherwise set forth in this Section in relation to a
survivor's annuity.
(40 ILCS 5/14-160 new)
Sec. 14-160. Election by Tier 1 members.
(a) Each Tier 1 member shall make an irrevocable election
to agree to item (1) or (2) as set forth in this subsection
(a):
(1) to remain a Tier 1 member; or
(2) to become a Tier 2 member for future service. As
adequate and legal consideration provided under this
amendatory Act of the 99th General Assembly for making an
election under this paragraph (2), a Tier 1 member who has
made an election to become a Tier 2 member has the option
of selecting one of the following 3 additional benefits:
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(i) participation in the Financial-Based Pension
Consideration Program, as set forth in Section
30(a)(i) of the Personnel Code;
(ii) participation in the Vacation-Based Pension
Consideration Program, as set forth in Section
30(a)(ii) of the Personnel Code; or
(iii) participation in the Tenure-Based Pension
Consideration Program, as set forth in Section
30(a)(iii) of the Personnel Code.
The election required under this subsection (a) shall be
made by each Tier 1 member no earlier than 60 days after the
effective date of this Section and no later than 150 days after
the effective date of this Section, except that a person who
returns to active service as a Tier 1 employee under this
Article on or after 150 days after the effective date of this
Section and has not yet made an election under this Section
must make the election under this subsection (a) within 30 days
after returning to active service as a Tier 1 member.
If a Tier 1 member fails for any reason to make a required
election under this subsection within the time specified, then
the employee shall be deemed to have made the election under
paragraph (1) of this subsection (a).
(a-10) All elections under subsection (a) that are made or
deemed to be made before 150 days after the effective date of
this Section shall take effect 180 days after the effective
date of this Section. Elections that are made or deemed to be
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made on or after 150 days after the effective date of this
Section shall take effect on the first day of the month
following the month in which the election is made or deemed to
be made.
(b) The System shall make a good faith effort to contact
each Tier 1 member subject to this Section. The System shall
mail information describing the required election to each Tier
1 member by United States Postal Service mail to his or her
last known address on file with the System. If the Tier 1
member is not responsive to other means of contact, it is
sufficient for the System to publish the details of any
required elections on its website or to publish those details
in a regularly published newsletter or other existing public
forum.
Tier 1 members who are subject to this Section shall be
provided with an election packet containing information
regarding their options, as well as the forms necessary to make
the required election. Upon request, the System shall offer
Tier 1 members an opportunity to receive information from the
System before making the required election. The information may
consist of video materials, group presentations, individual
consultation with a member or authorized representative of the
System in person or by telephone or other electronic means, or
any combination of those methods. The System shall not provide
advice or counseling with respect to which election a Tier 1
member should make or specific to the legal or tax
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circumstances of or consequences to the Tier 1 member.
The System shall inform the Tier 1 member in the election
packet required under this subsection that the Tier 1 member
may also wish to obtain information and legal counsel relating
to the election required under this Section from any other
available source, including, but not limited to, labor
organizations and employee-chosen legal counsel.
In no event shall the System, its staff, or the Board be
held liable for any information given to a member, beneficiary,
or annuitant regarding the elections under this Section. The
System shall coordinate with the Illinois Department of Central
Management Services and each other retirement system
administering an election in accordance with this amendatory
Act of the 99th General Assembly to provide information
concerning the impact of the election set forth in this
Section.
(c) A member's election under this Section is not a
prohibited election under subdivision (j)(1) of Section 1-119
of this Code.
(d) No provision of this Section shall be interpreted in a
way that would cause the System to cease to be a qualified plan
under Section 401(a) of the Internal Revenue Code of 1986.
(40 ILCS 5/15-108.3 new)
Sec. 15-108.3. Tier 1 employee. "Tier 1 employee": An
employee under this Article, other than a participant in the
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self-managed plan under Section 15-158.2, who first became a
member or participant before January 1, 2011 under any
reciprocal retirement system or pension fund established under
this Code other than a retirement system or pension fund
established under Article 2, 3, 4, 5, 6, or 18 of this Code.
However, for the purposes of the election under Section
15-132.9 and the consequences arising from that election, "Tier
1 employee" does not include a participant under this Article
who would qualify as a Tier 1 employee but who has made an
irrevocable election on or before January 1, 2013 to retire
from service pursuant to the terms of a collective bargaining
agreement in effect on January 1, 2013, excluding any
extension, amendment, or renewal of that agreement on or after
that date, and has notified the System of that election.
(40 ILCS 5/15-108.4 new)
Sec. 15-108.4. Tier 1 retiree. "Tier 1 retiree": A former
Tier 1 employee who is receiving a retirement annuity. However,
for the purposes of the election under Section 15-132.9 and the
consequences arising from that election, "Tier 1 retiree" also
includes a participant under this Article who would qualify as
a Tier 1 employee but who has made an irrevocable election on
or before January 1, 2013 to retire from service pursuant to
the terms of a collective bargaining agreement in effect on
January 1, 2013, excluding any extension, amendment, or renewal
of that agreement on or after that date, and has notified the
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System of that election.
A person does not become a Tier 1 retiree by virtue of
receiving a reversionary, survivors, beneficiary, or
disability annuity.
(40 ILCS 5/15-111) (from Ch. 108 1/2, par. 15-111)
(Text of Section WITHOUT the changes made by P.A. 98-599,
which has been held unconstitutional)
Sec. 15-111. Earnings.
(a) "Earnings": An amount paid for personal services equal
to the sum of the basic compensation plus extra compensation
for summer teaching, overtime or other extra service. For
periods for which an employee receives service credit under
subsection (c) of Section 15-113.1 or Section 15-113.2,
earnings are equal to the basic compensation on which
contributions are paid by the employee during such periods.
Compensation for employment which is irregular, intermittent
and temporary shall not be considered earnings, unless the
participant is also receiving earnings from the employer as an
employee under Section 15-107.
With respect to transition pay paid by the University of
Illinois to a person who was a participating employee employed
in the fire department of the University of Illinois's
Champaign-Urbana campus immediately prior to the elimination
of that fire department:
(1) "Earnings" includes transition pay paid to the
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employee on or after the effective date of this amendatory
Act of the 91st General Assembly.
(2) "Earnings" includes transition pay paid to the
employee before the effective date of this amendatory Act
of the 91st General Assembly only if (i) employee
contributions under Section 15-157 have been withheld from
that transition pay or (ii) the employee pays to the System
before January 1, 2001 an amount representing employee
contributions under Section 15-157 on that transition pay.
Employee contributions under item (ii) may be paid in a
lump sum, by withholding from additional transition pay
accruing before January 1, 2001, or in any other manner
approved by the System. Upon payment of the employee
contributions on transition pay, the corresponding
employer contributions become an obligation of the State.
Notwithstanding any other provision of this Section,
"earnings" does not include any future increase in income
offered by an employer under this Article pursuant to the
requirements of subsection (c) of Section 15-132.9 that is
accepted by a Tier 1 employee, or a Tier 1 retiree returning to
active service, who has made the election under paragraph (2)
of subsection (a) of Section 15-132.9.
(b) For a Tier 2 member, the annual earnings shall not
exceed $106,800; however, that amount shall annually
thereafter be increased by the lesser of (i) 3% of that amount,
including all previous adjustments, or (ii) one half the annual
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unadjusted percentage increase (but not less than zero) in the
consumer price index-u for the 12 months ending with the
September preceding each November 1, including all previous
adjustments.
For the purposes of this Section, "consumer price index u"
means the index published by the Bureau of Labor Statistics of
the United States Department of Labor that measures the average
change in prices of goods and services purchased by all urban
consumers, United States city average, all items, 1982-84 =
100. The new amount resulting from each annual adjustment shall
be determined by the Public Pension Division of the Department
of Insurance and made available to the boards of the retirement
systems and pension funds by November 1 of each year.
(Source: P.A. 98-92, eff. 7-16-13.)
(40 ILCS 5/15-112.1 new)
Sec. 15-112.1. Future increase in income. "Future increase
in income": Any increase in income in any form offered by an
employer to an employee under this Article after June 30, 2015
that would qualify as "earnings", as defined in Section 15-111,
but for the fact that the employer offered the increase in
income to the employee on the condition that it not qualify as
earnings and the employee accepted the increase in income
subject to that condition. The term "future increase in income"
does not include an increase in income in any form that is paid
to a Tier 1 employee under an employment contract or collective
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bargaining agreement that is in effect on the effective date of
this Section but does include an increase in income in any form
pursuant to an extension, amendment, or renewal of any such
employment contract or collective bargaining agreement on or
after the effective date of this amendatory Act of the 99th
General Assembly.
(40 ILCS 5/15-132.9 new)
Sec. 15-132.9. Election by Tier 1 employees.
(a) Each Tier 1 employee shall make an irrevocable election
either:
(1) to agree to have the amount of the automatic annual
increases in his or her retirement annuity that are
otherwise provided for in this Article calculated,
instead, as provided in subsection (e) of Section 1-160; or
(2) to not agree to paragraph (1) of this subsection.
The election required under this subsection (a) shall be
made by each Tier 1 employee no earlier than 60 days after the
effective date of this Section and no later than 150 days after
the effective date of this Section, except that a person who
returns to active service as a Tier 1 employee under this
Article on or after 150 days after the effective date of this
Section and has not yet made an election under this Section
must make the election under this subsection (a) within 30 days
after returning to active service as a Tier 1 employee.
If a Tier 1 employee fails for any reason to make a
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required election under this subsection within the time
specified, then the employee shall be deemed to have made the
election under paragraph (2) of this subsection.
(a-10) All elections under subsection (a) that are made or
deemed to be made before 150 days after the effective date of
this Section shall take effect 180 days after the effective
date of this Section. Elections that are made or deemed to be
made on or after 150 days after the effective date of this
Section shall take effect on the first day of the month
following the month in which the election is made or deemed to
be made.
(b) As adequate and legal consideration provided under this
amendatory Act of the 99th General Assembly for making an
election under paragraph (1) of subsection (a) of this Section,
any future increases in income offered by an employer under
this Article to a Tier 1 employee who has made an election
under paragraph (1) of subsection (a) of this Section shall be
offered expressly and irrevocably as constituting earnings
under Section 15-111.
(c) A Tier 1 employee who makes the election under
paragraph (2) of subsection (a) of this Section shall not be
subject to paragraph (1) of subsection (a) of this Section.
However, any future increases in income offered by an employer
under this Article to a Tier 1 employee who has made the
election under paragraph (2) of subsection (a) of this Section
shall be offered by the employer expressly and irrevocably as
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not constituting earnings under Section 15-111, and the
employee may not accept any future increase in income that is
offered in violation of this requirement.
(d) The System shall make a good faith effort to contact
each Tier 1 employee subject to this Section. The System shall
mail information describing the required election to each Tier
1 employee by United States Postal Service mail to his or her
last known address on file with the System. If the Tier 1
employee is not responsive to other means of contact, it is
sufficient for the System to publish the details of any
required elections on its website or to publish those details
in a regularly published newsletter or other existing public
forum.
Tier 1 employees who are subject to this Section shall be
provided with an election packet containing information
regarding their options, as well as the forms necessary to make
the required election. Upon request, the System shall offer
Tier 1 employees an opportunity to receive information from the
System before making the required election. The information may
consist of video materials, group presentations, individual
consultation with a member or authorized representative of the
System in person or by telephone or other electronic means, or
any combination of those methods. The System shall not provide
advice or counseling with respect to which election a Tier 1
employee should make or specific to the legal or tax
circumstances of or consequences to the Tier 1 employee.
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The System shall inform Tier 1 employees in the election
packet required under this subsection that the Tier 1 employee
may also wish to obtain information and legal counsel relating
to the election required under this Section from any other
available source, including, but not limited to, labor
organizations and employee-chosen legal counsel.
In no event shall the System, its staff, or the Board be
held liable for any information given to a member, beneficiary,
or annuitant regarding the elections under this Section. The
System shall coordinate with the Illinois Department of Central
Management Services and each other retirement system
administering an election in accordance with this amendatory
Act of the 99th General Assembly to provide information
concerning the impact of the election set forth in this
Section.
(e) Notwithstanding any other provision of law, an employer
under this Article is required to offer any future increases in
income expressly and irrevocably as not constituting
"earnings" under Section 15-111 to any Tier 1 employee, or Tier
1 retiree returning to active service, who has made an election
under paragraph (2) of subsection (a) of this Section. A Tier 1
employee, or Tier 1 retiree returning to active service, who
has made an election under paragraph (2) of subsection (a) of
this Section shall not accept any future increase in income
that is offered by an employer under this Article in violation
of the requirement set forth in this subsection.
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(f) A member's election under this Section is not a
prohibited election under subdivision (j)(1) of Section 1-119
of this Code.
(g) No provision of this Section shall be interpreted in a
way that would cause the System to cease to be a qualified plan
under Section 401(a) of the Internal Revenue Code of 1986.
(40 ILCS 5/15-136) (from Ch. 108 1/2, par. 15-136)
(Text of Section WITHOUT the changes made by P.A. 98-599,
which has been held unconstitutional)
Sec. 15-136. Retirement annuities - Amount. The provisions
of this Section 15-136 apply only to those participants who are
participating in the traditional benefit package or the
portable benefit package and do not apply to participants who
are participating in the self-managed plan.
(a) The amount of a participant's retirement annuity,
expressed in the form of a single-life annuity, shall be
determined by whichever of the following rules is applicable
and provides the largest annuity:
Rule 1: The retirement annuity shall be 1.67% of final rate
of earnings for each of the first 10 years of service, 1.90%
for each of the next 10 years of service, 2.10% for each year
of service in excess of 20 but not exceeding 30, and 2.30% for
each year in excess of 30; or for persons who retire on or
after January 1, 1998, 2.2% of the final rate of earnings for
each year of service.
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Rule 2: The retirement annuity shall be the sum of the
following, determined from amounts credited to the participant
in accordance with the actuarial tables and the effective rate
of interest in effect at the time the retirement annuity
begins:
(i) the normal annuity which can be provided on an
actuarially equivalent basis, by the accumulated normal
contributions as of the date the annuity begins;
(ii) an annuity from employer contributions of an
amount equal to that which can be provided on an
actuarially equivalent basis from the accumulated normal
contributions made by the participant under Section
15-113.6 and Section 15-113.7 plus 1.4 times all other
accumulated normal contributions made by the participant;
and
(iii) the annuity that can be provided on an
actuarially equivalent basis from the entire contribution
made by the participant under Section 15-113.3.
With respect to a police officer or firefighter who retires
on or after August 14, 1998, the accumulated normal
contributions taken into account under clauses (i) and (ii) of
this Rule 2 shall include the additional normal contributions
made by the police officer or firefighter under Section
15-157(a).
The amount of a retirement annuity calculated under this
Rule 2 shall be computed solely on the basis of the
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participant's accumulated normal contributions, as specified
in this Rule and defined in Section 15-116. Neither an employee
or employer contribution for early retirement under Section
15-136.2 nor any other employer contribution shall be used in
the calculation of the amount of a retirement annuity under
this Rule 2.
This amendatory Act of the 91st General Assembly is a
clarification of existing law and applies to every participant
and annuitant without regard to whether status as an employee
terminates before the effective date of this amendatory Act.
This Rule 2 does not apply to a person who first becomes an
employee under this Article on or after July 1, 2005.
Rule 3: The retirement annuity of a participant who is
employed at least one-half time during the period on which his
or her final rate of earnings is based, shall be equal to the
participant's years of service not to exceed 30, multiplied by
(1) $96 if the participant's final rate of earnings is less
than $3,500, (2) $108 if the final rate of earnings is at least
$3,500 but less than $4,500, (3) $120 if the final rate of
earnings is at least $4,500 but less than $5,500, (4) $132 if
the final rate of earnings is at least $5,500 but less than
$6,500, (5) $144 if the final rate of earnings is at least
$6,500 but less than $7,500, (6) $156 if the final rate of
earnings is at least $7,500 but less than $8,500, (7) $168 if
the final rate of earnings is at least $8,500 but less than
$9,500, and (8) $180 if the final rate of earnings is $9,500 or
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more, except that the annuity for those persons having made an
election under Section 15-154(a-1) shall be calculated and
payable under the portable retirement benefit program pursuant
to the provisions of Section 15-136.4.
Rule 4: A participant who is at least age 50 and has 25 or
more years of service as a police officer or firefighter, and a
participant who is age 55 or over and has at least 20 but less
than 25 years of service as a police officer or firefighter,
shall be entitled to a retirement annuity of 2 1/4% of the
final rate of earnings for each of the first 10 years of
service as a police officer or firefighter, 2 1/2% for each of
the next 10 years of service as a police officer or
firefighter, and 2 3/4% for each year of service as a police
officer or firefighter in excess of 20. The retirement annuity
for all other service shall be computed under Rule 1. A Tier 2
member is eligible for a retirement annuity calculated under
Rule 4 only if that Tier 2 member meets the service
requirements for that benefit calculation as prescribed under
this Rule 4 in addition to the applicable age requirement under
subsection (a-5) of Section 15-135.
For purposes of this Rule 4, a participant's service as a
firefighter shall also include the following:
(i) service that is performed while the person is an
employee under subsection (h) of Section 15-107; and
(ii) in the case of an individual who was a
participating employee employed in the fire department of
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the University of Illinois's Champaign-Urbana campus
immediately prior to the elimination of that fire
department and who immediately after the elimination of
that fire department transferred to another job with the
University of Illinois, service performed as an employee of
the University of Illinois in a position other than police
officer or firefighter, from the date of that transfer
until the employee's next termination of service with the
University of Illinois.
(b) For a Tier 1 member, the retirement annuity provided
under Rules 1 and 3 above shall be reduced by 1/2 of 1% for each
month the participant is under age 60 at the time of
retirement. However, this reduction shall not apply in the
following cases:
(1) For a disabled participant whose disability
benefits have been discontinued because he or she has
exhausted eligibility for disability benefits under clause
(6) of Section 15-152;
(2) For a participant who has at least the number of
years of service required to retire at any age under
subsection (a) of Section 15-135; or
(3) For that portion of a retirement annuity which has
been provided on account of service of the participant
during periods when he or she performed the duties of a
police officer or firefighter, if these duties were
performed for at least 5 years immediately preceding the
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date the retirement annuity is to begin.
(b-5) The retirement annuity of a Tier 2 member who is
retiring after attaining age 62 with at least 10 years of
service credit shall be reduced by 1/2 of 1% for each full
month that the member's age is under age 67.
(c) The maximum retirement annuity provided under Rules 1,
2, 4, and 5 shall be the lesser of (1) the annual limit of
benefits as specified in Section 415 of the Internal Revenue
Code of 1986, as such Section may be amended from time to time
and as such benefit limits shall be adjusted by the
Commissioner of Internal Revenue, and (2) 80% of final rate of
earnings.
(d) Subject to the provisions of subsection (d-1), a A Tier
1 member whose status as an employee terminates after August
14, 1969 shall receive automatic increases in his or her
retirement annuity as follows:
Effective January 1 immediately following the date the
retirement annuity begins, the annuitant shall receive an
increase in his or her monthly retirement annuity of 0.125% of
the monthly retirement annuity provided under Rule 1, Rule 2,
Rule 3, or Rule 4 contained in this Section, multiplied by the
number of full months which elapsed from the date the
retirement annuity payments began to January 1, 1972, plus
0.1667% of such annuity, multiplied by the number of full
months which elapsed from January 1, 1972, or the date the
retirement annuity payments began, whichever is later, to
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January 1, 1978, plus 0.25% of such annuity multiplied by the
number of full months which elapsed from January 1, 1978, or
the date the retirement annuity payments began, whichever is
later, to the effective date of the increase.
The annuitant shall receive an increase in his or her
monthly retirement annuity on each January 1 thereafter during
the annuitant's life of 3% of the monthly annuity provided
under Rule 1, Rule 2, Rule 3, or Rule 4 contained in this
Section. The change made under this subsection by P.A. 81-970
is effective January 1, 1980 and applies to each annuitant
whose status as an employee terminates before or after that
date.
Beginning January 1, 1990, and except as provided in
subsection (d-1), all automatic annual increases payable under
this Section shall be calculated as a percentage of the total
annuity payable at the time of the increase, including all
increases previously granted under this Article.
The change made in this subsection by P.A. 85-1008 is
effective January 26, 1988, and is applicable without regard to
whether status as an employee terminated before that date.
(d-1) Notwithstanding any other provision of this Article,
for a Tier 1 employee who made the election under paragraph (1)
of subsection (a) of Section 15-132.9, the amount of each
automatic annual increase in retirement annuity occurring on or
after the effective date of that election, other than the
initial increase, shall be calculated as provided in subsection
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(e) of Section 1-160.
(d-5) A retirement annuity of a Tier 2 member shall receive
annual increases on the January 1 occurring either on or after
the attainment of age 67 or the first anniversary of the
annuity start date, whichever is later. Each annual increase
shall be calculated at 3% or one half the annual unadjusted
percentage increase (but not less than zero) in the consumer
price index-u for the 12 months ending with the September
preceding each November 1, whichever is less, of the originally
granted retirement annuity. If the annual unadjusted
percentage change in the consumer price index-u for the 12
months ending with the September preceding each November 1 is
zero or there is a decrease, then the annuity shall not be
increased.
(e) If, on January 1, 1987, or the date the retirement
annuity payment period begins, whichever is later, the sum of
the retirement annuity provided under Rule 1 or Rule 2 of this
Section and the automatic annual increases provided under the
preceding subsection or Section 15-136.1, amounts to less than
the retirement annuity which would be provided by Rule 3, the
retirement annuity shall be increased as of January 1, 1987, or
the date the retirement annuity payment period begins,
whichever is later, to the amount which would be provided by
Rule 3 of this Section. Such increased amount shall be
considered as the retirement annuity in determining benefits
provided under other Sections of this Article. This paragraph
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applies without regard to whether status as an employee
terminated before the effective date of this amendatory Act of
1987, provided that the annuitant was employed at least
one-half time during the period on which the final rate of
earnings was based.
(f) A participant is entitled to such additional annuity as
may be provided on an actuarially equivalent basis, by any
accumulated additional contributions to his or her credit.
However, the additional contributions made by the participant
toward the automatic increases in annuity provided under this
Section shall not be taken into account in determining the
amount of such additional annuity.
(g) If, (1) by law, a function of a governmental unit, as
defined by Section 20-107 of this Code, is transferred in whole
or in part to an employer, and (2) a participant transfers
employment from such governmental unit to such employer within
6 months after the transfer of the function, and (3) the sum of
(A) the annuity payable to the participant under Rule 1, 2, or
3 of this Section (B) all proportional annuities payable to the
participant by all other retirement systems covered by Article
20, and (C) the initial primary insurance amount to which the
participant is entitled under the Social Security Act, is less
than the retirement annuity which would have been payable if
all of the participant's pension credits validated under
Section 20-109 had been validated under this system, a
supplemental annuity equal to the difference in such amounts
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shall be payable to the participant.
(h) On January 1, 1981, an annuitant who was receiving a
retirement annuity on or before January 1, 1971 shall have his
or her retirement annuity then being paid increased $1 per
month for each year of creditable service. On January 1, 1982,
an annuitant whose retirement annuity began on or before
January 1, 1977, shall have his or her retirement annuity then
being paid increased $1 per month for each year of creditable
service.
(i) On January 1, 1987, any annuitant whose retirement
annuity began on or before January 1, 1977, shall have the
monthly retirement annuity increased by an amount equal to 8¢
per year of creditable service times the number of years that
have elapsed since the annuity began.
(Source: P.A. 97-933, eff. 8-10-12; 97-968, eff. 8-16-12;
98-92, eff. 7-16-13.)
(40 ILCS 5/16-107.1 new)
Sec. 16-107.1. Tier 1 employee. "Tier 1 employee": A
teacher under this Article who first became a member or
participant before January 1, 2011 under any reciprocal
retirement system or pension fund established under this Code
other than a retirement system or pension fund established
under Article 2, 3, 4, 5, 6, or 18 of this Code. However, for
the purposes of the election under Section 16-122.9 and the
consequences arising from that election, "Tier 1 employee" does
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not include a teacher under this Article who would qualify as a
Tier 1 employee but who has made an irrevocable election on or
before January 1, 2013 to retire from service pursuant to the
terms of a collective bargaining agreement in effect on January
1, 2013, excluding any extension, amendment, or renewal of that
agreement on or after that date, and has notified the System of
that election.
(40 ILCS 5/16-107.2 new)
Sec. 16-107.2. Tier 1 retiree. "Tier 1 retiree": A former
Tier 1 employee who is receiving a retirement annuity. However,
for the purposes of the election under Section 16-122.9 and the
consequences arising from that election, "Tier 1 retiree" also
includes a teacher under this Article who would qualify as a
Tier 1 employee but who has made an irrevocable election on or
before January 1, 2013 to retire from service pursuant to the
terms of a collective bargaining agreement in effect on January
1, 2013, excluding any extension, amendment, or renewal of that
agreement on or after that date, and has notified the System of
that election.
(40 ILCS 5/16-121) (from Ch. 108 1/2, par. 16-121)
Sec. 16-121. Salary. "Salary": The actual compensation
received by a teacher during any school year and recognized by
the system in accordance with rules of the board. For purposes
of this Section, "school year" includes the regular school term
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plus any additional period for which a teacher is compensated
and such compensation is recognized by the rules of the board.
Notwithstanding any other provision of this Section,
"salary" does not include any future increase in income offered
by an employer under this Article pursuant to the requirements
of subsection (c) of Section 16-122.9 that is accepted by a
Tier 1 employee, or a Tier 1 retiree returning to active
service, who has made the election under paragraph (2) of
subsection (a) of Section 16-122.9.
(Source: P.A. 84-1028.)
(40 ILCS 5/16-121.1 new)
Sec. 16-121.1. Future increase in income. "Future increase
in income": Any increase in income in any form offered by an
employer to a teacher under this Article after June 30, 2015
that would qualify as "salary", as defined in Section 16-121,
but for the fact that the employer offered the increase in
income to the employee on the condition that it not qualify as
compensation and the employee accepted the increase in income
subject to that condition. The term "future increase in income"
does not include an increase in income in any form that is paid
to a Tier 1 employee under an employment contract or collective
bargaining agreement that is in effect on the effective date of
this Section but does include an increase in income in any form
pursuant to an extension, amendment, or renewal of any such
employment contract or collective bargaining agreement on or
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after the effective date of this amendatory Act of the 99th
General Assembly.
(40 ILCS 5/16-122.9 new)
Sec. 16-122.9. Election by Tier 1 employees.
(a) Each Tier 1 employee shall make an irrevocable election
either:
(1) to agree to have the amount of the automatic annual
increases in his or her retirement annuity that are
otherwise provided for in this Article calculated,
instead, as provided in subsection (e) of Section 1-160; or
(2) to not agree to paragraph (1) of this subsection.
The election required under this subsection (a) shall be
made by each Tier 1 employee no earlier than 60 days after the
effective date of this Section and no later than 150 days after
the effective date of this Section, except that a person who
returns to active service as a Tier 1 employee under this
Article on or after 150 days after the effective date of this
Section and has not yet made an election under this Section
must make the election under this subsection (a) within 30 days
after returning to active service as a Tier 1 employee.
If a Tier 1 employee fails for any reason to make a
required election under this subsection within the time
specified, then the employee shall be deemed to have made the
election under paragraph (2) of this subsection.
(a-10) All elections under subsection (a) that are made or
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deemed to be made before 150 days after the effective date of
this Section shall take effect 180 days after the effective
date of this Section. Elections that are made or deemed to be
made on or after 150 days after the effective date of this
Section shall take effect on the first day of the month
following the month in which the election is made or deemed to
be made.
(b) As adequate and legal consideration provided under this
amendatory Act of the 99th General Assembly for making an
election under paragraph (1) of subsection (a) of this Section,
any future increases in income offered by an employer under
this Article to a Tier 1 employee who has made an election
under paragraph (1) of subsection (a) of this Section shall be
offered expressly and irrevocably as constituting salary under
Section 16-121.
(c) A Tier 1 employee who makes the election under
paragraph (2) of subsection (a) of this Section shall not be
subject to paragraph (1) of subsection (a) of this Section.
However, any future increases in income offered by an employer
under this Article to a Tier 1 employee who has made the
election under paragraph (2) of subsection (a) of this Section
shall be offered by the employer expressly and irrevocably as
not constituting salary under Section 16-121, and the employee
may not accept any future increase in income that is offered in
violation of this requirement.
(d) The System shall make a good faith effort to contact
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each Tier 1 employee subject to this Section. The System shall
mail information describing the required election to each Tier
1 employee by United States Postal Service mail to his or her
last known address on file with the System. If the Tier 1
employee is not responsive to other means of contact, it is
sufficient for the System to publish the details of any
required elections on its website or to publish those details
in a regularly published newsletter or other existing public
forum.
Tier 1 employees who are subject to this Section shall be
provided with an election packet containing information
regarding their options, as well as the forms necessary to make
the required election. Upon request, the System shall offer
Tier 1 employees an opportunity to receive information from the
System before making the required election. The information may
consist of video materials, group presentations, individual
consultation with a member or authorized representative of the
System in person or by telephone or other electronic means, or
any combination of those methods. The System shall not provide
advice or counseling with respect to which election a Tier 1
employee should make or specific to the legal or tax
circumstances of or consequences to the Tier 1 employee.
The System shall inform Tier 1 employees in the election
packet required under this subsection that the Tier 1 employee
may also wish to obtain information and legal counsel relating
to the election required under this Section from any other
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available source, including, but not limited to, labor
organizations and employee-chosen legal counsel.
In no event shall the System, its staff, or the Board be
held liable for any information given to a member, beneficiary,
or annuitant regarding the elections under this Section. The
System shall coordinate with the Illinois Department of Central
Management Services and each other retirement system
administering an election in accordance with this amendatory
Act of the 99th General Assembly to provide information
concerning the impact of the election set forth in this
Section.
(e) Notwithstanding any other provision of law, an employer
under this Article is required to offer any future increases in
income expressly and irrevocably as not constituting "salary"
under Section 16-121 to any Tier 1 employee, or Tier 1 retiree
returning to active service, who has made an election under
paragraph (2) of subsection (a) of Section 16-122.9. A Tier 1
employee, or Tier 1 retiree returning to active service, who
has made an election under paragraph (2) of subsection (a) of
Section 16-122.9 shall not accept any future increase in income
that is offered by an employer under this Article in violation
of the requirement set forth in this subsection.
(f) A member's election under this Section is not a
prohibited election under subdivision (j)(1) of Section 1-119
of this Code.
(g) No provision of this Section shall be interpreted in a
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way that would cause the System to cease to be a qualified plan
under Section 401(a) of the Internal Revenue Code of 1986.
(40 ILCS 5/16-133.1) (from Ch. 108 1/2, par. 16-133.1)
Sec. 16-133.1. Automatic annual increase in annuity.
(a) Each member with creditable service and retiring on or
after August 26, 1969 is entitled to the automatic annual
increases in annuity provided under this Section while
receiving a retirement annuity or disability retirement
annuity from the system.
An annuitant shall first be entitled to an initial increase
under this Section on the January 1 next following the first
anniversary of retirement, or January 1 of the year next
following attainment of age 61, whichever is later. At such
time, the system shall pay an initial increase determined as
follows:
(1) 1.5% of the originally granted retirement annuity
or disability retirement annuity multiplied by the number
of years elapsed, if any, from the date of retirement until
January 1, 1972, plus
(2) 2% of the originally granted annuity multiplied by
the number of years elapsed, if any, from the date of
retirement or January 1, 1972, whichever is later, until
January 1, 1978, plus
(3) 3% of the originally granted annuity multiplied by
the number of years elapsed from the date of retirement or
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January 1, 1978, whichever is later, until the effective
date of the initial increase.
However, the initial annual increase calculated under this
Section for the recipient of a disability retirement annuity
granted under Section 16-149.2 shall be reduced by an amount
equal to the total of all increases in that annuity received
under Section 16-149.5 (but not exceeding 100% of the amount of
the initial increase otherwise provided under this Section).
Except as otherwise provided in subsection (a-1), if
applicable, following Following the initial increase,
automatic annual increases in annuity shall be payable on each
January 1 thereafter during the lifetime of the annuitant,
determined as a percentage of the originally granted retirement
annuity or disability retirement annuity for increases granted
prior to January 1, 1990, and calculated as a percentage of the
total amount of annuity, including previous increases under
this Section, for increases granted on or after January 1,
1990, as follows: 1.5% for periods prior to January 1, 1972, 2%
for periods after December 31, 1971 and prior to January 1,
1978, and 3% for periods after December 31, 1977.
(a-1) Notwithstanding any other provision of this Article,
for a Tier 1 employee who made the election under of paragraph
(1) of subsection (a) of Section 16-122.9, the amount of each
automatic annual increase in retirement annuity occurring on or
after the effective date of that election, other than the
initial increase, shall be calculated as provided in subsection
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(e) of Section 1-160.
(b) The automatic annual increases in annuity provided
under this Section shall not be applicable unless a member has
made contributions toward such increases for a period
equivalent to one full year of creditable service. If a member
contributes for service performed after August 26, 1969 but the
member becomes an annuitant before such contributions amount to
one full year's contributions based on the salary at the date
of retirement, he or she may pay the necessary balance of the
contributions to the system and be eligible for the automatic
annual increases in annuity provided under this Section.
(c) Each member shall make contributions toward the cost of
the automatic annual increases in annuity as provided under
Section 16-152.
(d) An annuitant receiving a retirement annuity or
disability retirement annuity on July 1, 1969, who subsequently
re-enters service as a teacher is eligible for the automatic
annual increases in annuity provided under this Section if he
or she renders at least one year of creditable service
following the latest re-entry.
(e) In addition to the automatic annual increases in
annuity provided under this Section, an annuitant who meets the
service requirements of this Section and whose retirement
annuity or disability retirement annuity began on or before
January 1, 1971 shall receive, on January 1, 1981, an increase
in the annuity then being paid of one dollar per month for each
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year of creditable service. On January 1, 1982, an annuitant
whose retirement annuity or disability retirement annuity
began on or before January 1, 1977 shall receive an increase in
the annuity then being paid of one dollar per month for each
year of creditable service.
On January 1, 1987, any annuitant whose retirement annuity
began on or before January 1, 1977, shall receive an increase
in the monthly retirement annuity equal to 8¢ per year of
creditable service times the number of years that have elapsed
since the annuity began.
(Source: P.A. 91-927, eff. 12-14-00.)
(40 ILCS 5/16-136.1) (from Ch. 108 1/2, par. 16-136.1)
Sec. 16-136.1. Annual increase for certain annuitants.
(a) Any annuitant receiving a retirement annuity on June
30, 1969 and any member retiring after June 30, 1969 shall be
eligible for the annual increases provided under this Section
provided the annuitant is ineligible for the automatic annual
increase in annuity provided under Section 16-133.1, and
provided further that (1) retirement occurred at age 55 or over
and was based on 5 or more years of creditable service or (2)
if retirement occurred prior to age 55, the retirement annuity
was based on 20 or more years of creditable service.
(b) An annuitant entitled to increases under this Section
shall be entitled to the initial increase as of the later of:
(1) January 1 following attainment of age 65, (2) January 1
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following the first anniversary of retirement, or (3) the first
day of the month following receipt of the required qualifying
contribution from the annuitant. The initial monthly increase
shall be computed on the basis of the period elapsed between
the later of the date of last retirement or attainment of age
50 and the date of qualification for the initial increase, at
the rate of 1 1/2% of the original monthly retirement annuity
per year for periods prior to September 1, 1971, and at the
rate of 2% per year for periods between September 1, 1971 and
September 1, 1978, and at the rate of 3% per year for periods
thereafter.
Except as otherwise provided in subsection (b-1), if
applicable, an An annuitant who has received an initial
increase under this Section, shall be entitled, on each January
1 following the granting of the initial increase, to an
increase of 3% of the original monthly retirement annuity for
increases granted prior to January 1, 1990, and equal to 3% of
the total annuity, including previous increases under this
Section, for increases granted on or after January 1, 1990. The
original monthly retirement annuity for computations under
this subsection (b) shall be considered to be $83.34 for any
annuitant entitled to benefits under Section 16-134. The
minimum original disability retirement annuity for
computations under this subsection (b) shall be considered to
be $33.34 per month for any annuitant retired on account of
disability.
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(b-1) Notwithstanding any other provision of this Article,
for a Tier 1 employee who made the election under paragraph (1)
of subsection (a) of Section 16-122.9, the amount of each
automatic annual increase in retirement annuity occurring on or
after the effective date of that election, other than the
initial increase, shall be calculated as provided in subsection
(e) of Section 1-160.
(c) An annuitant who otherwise qualifies for annual
increases under this Section must make a one-time payment of 1%
of the monthly final average salary for each full year of the
creditable service forming the basis of the retirement annuity
or, if the retirement annuity was not computed using final
average salary, 1% of the original monthly retirement annuity
for each full year of service forming the basis of the
retirement annuity.
(d) In addition to other increases which may be provided by
this Section, regardless of creditable service, annuitants not
meeting the service requirements of Section 16-133.1 and whose
retirement annuity began on or before January 1, 1971 shall
receive, on January 1, 1981, an increase in the retirement
annuity then being paid of one dollar per month for each year
of creditable service forming the basis of the retirement
allowance. On January 1, 1982, annuitants whose retirement
annuity began on or before January 1, 1977, shall receive an
increase in the retirement annuity then being paid of one
dollar per month for each year of creditable service.
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On January 1, 1987, any annuitant whose retirement annuity
began on or before January 1, 1977, shall receive an increase
in the monthly retirement annuity equal to 8¢ per year of
creditable service times the number of years that have elapsed
since the annuity began.
(Source: P.A. 86-273.)
(40 ILCS 5/17-106.2 new)
Sec. 17-106.2. Tier 1 employee. "Tier 1 employee": A
teacher under this Article who first became a member or
participant before January 1, 2011 under any reciprocal
retirement system or pension fund established under this Code
other than a retirement system or pension fund established
under Article 2, 3, 4, 5, 6, or 18 of this Code.
(40 ILCS 5/17-106.3 new)
Sec. 17-106.3. Tier 1 retiree. "Tier 1 retiree": A former
Tier 1 employee who is receiving a retirement annuity.
(40 ILCS 5/17-116.8 new)
Sec. 17-116.8. Salary or average salary. Notwithstanding
any other provision of this Article, "salary" does not include
any future increase in income offered by an Employer under this
Article pursuant to the requirements of subsection (c) of
Section 17-116.10 that is accepted by a Tier 1 employee, or a
Tier 1 retiree returning to active service, who has made the
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election under paragraph (2) of subsection (a) of Section
17-116.10.
(40 ILCS 5/17-116.9 new)
Sec. 17-116.9. Future increase in income. "Future increase
in income": Any increase in income in any form offered by an
Employer to a teacher under this Article after June 30, 2015
that would qualify as "salary" but for the fact that the
Employer offered the increase in income to the employee on the
condition that it not qualify as "salary" under this Article
and the employee accepted the increase in income subject to
that condition. The term "future increase in income" does not
include an increase in income in any form that is paid to a
Tier 1 employee under an employment contract or collective
bargaining agreement that is in effect on the effective date of
this Section but does include an increase in income in any form
pursuant to an extension, amendment, or renewal of any such
employment contract or collective bargaining agreement on or
after the effective date of this amendatory Act of the 99th
General Assembly.
(40 ILCS 5/17-116.10 new)
Sec. 17-116.10. Election by Tier 1 employees.
(a) Each Tier 1 employee shall make an irrevocable election
either:
(1) to agree to have the amount of the automatic annual
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increases in his or her retirement annuity that are
otherwise provided for in this Article calculated,
instead, as provided in subsection (e) of Section 1-160; or
(2) to not agree to paragraph (1) of this subsection.
The election required under this subsection (a) shall be
made by each Tier 1 employee no earlier than 60 days after the
effective date of this Section and no later than 150 days after
the effective date of this Section, except that a person who
returns to active service as a Tier 1 employee under this
Article on or after 150 days after the effective date of this
Section and has not yet made an election under this Section
must make the election under this subsection (a) within 30 days
after returning to active service as a Tier 1 employee.
If a Tier 1 employee fails for any reason to make a
required election under this subsection within the time
specified, then the employee shall be deemed to have made the
election under paragraph (2) of this subsection.
(a-10) All elections under subsection (a) that are made or
deemed to be made before 150 days after the effective date of
this Section shall take effect 180 days after the effective
date of this Section. Elections that are made or deemed to be
made on or after 150 days after the effective date of this
Section shall take effect on the first day of the month
following the month in which the election is made or deemed to
be made.
(b) As adequate and legal consideration provided under this
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amendatory Act of the 99th General Assembly for making an
election under paragraph (1) of subsection (a) of this Section,
any future increase in income offered by an Employer under this
Article to a Tier 1 employee who has made an election under
paragraph (1) of subsection (a) of this Section shall be
offered expressly and irrevocably as constituting "salary" for
purposes of this Article.
(c) A Tier 1 employee who has made the election under
paragraph (2) of subsection (a) of this Section shall not be
subject to paragraph (1) of subsection (a) of this Section.
However, any future increases in income offered by an Employer
under this Article to a Tier 1 employee who has made the
election under paragraph (2) of subsection (a) of this Section
shall be offered by the Employer expressly and irrevocably as
not constituting "salary" for purposes of this Article, and the
employee may not accept any future increase in income that is
offered in violation of this requirement.
(d) The Fund shall make a good faith effort to contact each
Tier 1 employee subject to this Section. The Fund shall mail
information describing the required election to each Tier 1
employee by United States Postal Service mail to his or her
last known address on file with the Fund. If the Tier 1
employee is not responsive to other means of contact, it is
sufficient for the Fund to publish the details of any required
elections on its website or to publish those details in a
regularly published newsletter or other existing public forum.
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Tier 1 employees who are subject to this Section shall be
provided with an election packet containing information
regarding their options, as well as the forms necessary to make
the required election. Upon request, the Fund shall offer Tier
1 employees an opportunity to receive information from the Fund
before making the required election. The information may
consist of video materials, group presentations, individual
consultation with a member or authorized representative of the
Fund in person or by telephone or other electronic means, or
any combination of those methods. The Fund shall not provide
advice or counseling with respect to which election a Tier 1
employee should make or specific to the legal or tax
circumstances of or consequences to the Tier 1 employee.
The Fund shall inform Tier 1 employees in the election
packet required under this subsection that the Tier 1 employee
may also wish to obtain information and legal counsel relating
to the election required under this Section from any other
available source, including, but not limited to, labor
organizations and employee-chosen legal counsel.
In no event shall the Fund, its staff, or the Board be held
liable for any information given to a member, beneficiary, or
annuitant regarding the elections under this Section. The Fund
shall coordinate with the Illinois Department of Central
Management Services and each other retirement system
administering an election in accordance with this amendatory
Act of the 99th General Assembly to provide information
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concerning the impact of the election set forth in this
Section.
(e) Notwithstanding any other provision of law, an Employer
under this Article is required to offer any future increases in
income expressly and irrevocably as not constituting "salary"
for purposes of this Article to any Tier 1 employee, or Tier 1
retiree returning to active service, who has made an election
under paragraph (2) of subsection (a) of Section 17-116.10. A
Tier 1 employee, or Tier 1 retiree returning to active service,
who has made an election under paragraph (2) of subsection (a)
of Section 17-116.10 shall not accept any future increase in
income that is offered by an Employer under this Article in
violation of the requirement set forth in this subsection.
(f) A member's election under this Section is not a
prohibited election under subdivision (j)(1) of Section 1-119
of this Code.
(g) No provision of this Section shall be interpreted in a
way that would cause the Fund to cease to be a qualified plan
under Section 401(a) of the Internal Revenue Code of 1986.
(40 ILCS 5/17-119) (from Ch. 108 1/2, par. 17-119)
Sec. 17-119. Automatic annual increase in pension. Each
teacher retiring on or after September 1, 1959, is entitled to
the annual increase in pension, defined herein, while he is
receiving a pension from the Fund.
1. The term "base pension" means a service retirement or
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disability retirement pension in the amount fixed and payable
at the date of retirement of a teacher.
2. The annual increase in pension shall be at the rate of 1
1/2% of base pension. This increase shall first occur in
January of the year next following the first anniversary of
retirement. At such time the Fund shall pay the pro rata part
of the increase for the period from the first anniversary date
to the date of the first increase in pension. Beginning January
1, 1972, the rate of annual increase in pension shall be 2% of
the base pension. Beginning January 1, 1979, the rate of annual
increase in pension shall be 3% of the base pension. Except as
otherwise provided in subsection 4, if applicable, beginning
Beginning January 1, 1990, all automatic annual increases
payable under this Section shall be calculated as a percentage
of the total pension payable at the time of the increase,
including all increases previously granted under this Article,
notwithstanding Section 17-157.
3. An increase in pension shall be granted only if the
retired teacher is age 60 or over. If the teacher attains age
60 after retirement, the increase in pension shall begin in
January of the year following the 61st birthday. At such time
the Fund also shall pay the pro rata part of the increase from
the 61st birthday to the date of first increase in pension.
In addition to other increases which may be provided by
this Section, on January 1, 1981 any teacher who was receiving
a retirement pension on or before January 1, 1971 shall have
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his retirement pension then being paid increased $1 per month
for each year of creditable service. On January 1, 1982, any
teacher whose retirement pension began on or before January 1,
1977, shall have his retirement pension then being paid
increased $1 per month for each year of creditable service.
On January 1, 1987, any teacher whose retirement pension
began on or before January 1, 1977, shall have the monthly
retirement pension increased by an amount equal to 8¢ per year
of creditable service times the number of years that have
elapsed since the retirement pension began.
4. Notwithstanding any other provision of this Article, for
a Tier 1 employee who made the election under paragraph (1) of
subsection (a) of Section 17-116.10, the amount of each
automatic annual increase in pension occurring on or after the
effective date of that election, other than the initial
increase, shall be calculated as provided in subsection (e) of
Section 1-160.
(Source: P.A. 90-566, eff. 1-2-98.)
(40 ILCS 5/17-127) (from Ch. 108 1/2, par. 17-127)
Sec. 17-127. Financing; revenues for the Fund.
(a) The revenues for the Fund shall consist of: (1) amounts
paid into the Fund by contributors thereto and from employer
contributions and State appropriations in accordance with this
Article; (2) amounts contributed to the Fund by an Employer;
(3) amounts contributed to the Fund pursuant to any law now in
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force or hereafter to be enacted; (4) contributions from any
other source; and (5) the earnings on investments.
(b) (Blank). The General Assembly finds that for many years
the State has contributed to the Fund an annual amount that is
between 20% and 30% of the amount of the annual State
contribution to the Article 16 retirement system, and the
General Assembly declares that it is its goal and intention to
continue this level of contribution to the Fund in the future.
Beginning in State fiscal year 1999, the State shall
include in its annual contribution to the Fund an additional
amount equal to 0.544% of the Fund's total teacher payroll;
except that this additional contribution need not be made in a
fiscal year if the Board has certified in the previous fiscal
year that the Fund is at least 90% funded, based on actuarial
determinations. These additional State contributions are
intended to offset a portion of the cost to the Fund of the
increases in retirement benefits resulting from this
amendatory Act of 1998.
(c) In State fiscal year 2016 and 2017, the State shall
include in its annual contribution to the Fund an additional
amount equal to the employer normal cost of pension benefits
for that fiscal year based on assumptions used by the Fund on
July 1, 2014, as certified by the Fund and submitted for
approval to the Governor and General Assembly.
(Source: P.A. 90-548, eff. 12-4-97; 90-566, eff. 1-2-98;
90-582, eff. 5-27-98; 90-655, eff. 7-30-98.)
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(40 ILCS 5/17-130.1) (from Ch. 108 1/2, par. 17-130.1)
Sec. 17-130.1. Employer contributions on behalf of
employees.
(a) An Employer and the Board may make and may incur an
obligation to make contributions on behalf of its employees in
an amount not to exceed the employee contributions required by
Section 17-130 for all compensation earned after September 21,
1981. If the Employer or the Board of Education determines not
to make such contributions or incur an obligation to make such
contributions, the amount that it could have contributed on
behalf of its employees shall continue to be deducted from
salary. If contributions are made by an Employer or the Board
on behalf of its employees they shall be treated as employer
contributions in determining tax treatment under the United
States Internal Revenue Code. An Employer or the Board may make
these contributions on behalf of its employees by a reduction
in the cash salary of the employee or by an offset against a
future salary increase or by a combination of a reduction in
salary and offset against a future salary increase. An Employer
or the Board shall pay these employee contributions from the
same source of funds which is used in paying salary to the
employee, or it may also or alternatively make such
contributions from the proceeds of the tax authorized by
Section 34-60 of the School Code. Such employee contributions
shall be treated for all purposes of this Article 17 in the
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same manner and to the same extent as employee contributions
made by employees and deducted from salary; provided, however,
that contributions made by the Board of Education on behalf of
its employees which are to be paid from the proceeds of the
tax, as provided in Section 34-60 of the School Code, shall not
be treated as teachers' pension contributions for the purposes
of Section 17-132 of the Illinois Pension Code, and provided
further, that contributions which are made by the Board of
Education on behalf of its employees shall not be treated as a
pension or retirement obligation of the Board of Education for
purposes of Section 12 of "An Act in relation to State revenue
sharing with local governmental entities", approved July 31,
1969.
(b) An Employer or the Board may cease making or revoke its
obligation to make contributions on behalf of its employees
that it has made or incurred pursuant to subsection (a). This
subsection (b) does not apply to the Employer or the Board
making contributions on behalf of its employees during an
employment contract or collective bargaining agreement that is
in effect on the effective date of this amendatory Act of the
99th General Assembly, but does apply during an extension,
amendment, or renewal of any such employment contract or
collective bargaining agreement after the effective date of
this amendatory Act of the 99th General Assembly.
(Source: P.A. 90-566, eff. 1-2-98.)
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(40 ILCS 5/17-142.1) (from Ch. 108 1/2, par. 17-142.1)
Sec. 17-142.1. To defray health insurance costs. To provide
for the partial reimbursement of health insurance costs.
(1) On the first day of September of each year, beginning
in 1988, the Board may, by separate warrant, pay to each
recipient of a service retirement, disability retirement or
survivor's pension an amount to be determined by the Board,
which shall represent partial reimbursement for the cost of the
recipient's health insurance coverage.
(2) In lieu of the annual payment authorized in subdivision
(1), for pensioners enrolled in the Fund's regular health care
deduction plans, the Fund may pay the health insurance premium
reimbursement on a monthly rather than annual basis, at the
percentage rate established from time to time by the Board. If
the Board so directs, these monthly payments may be made in the
form of a direct payment of premium and a reduction in the
amount deducted from the annuity, rather than in the form of
reimbursement by separate warrant.
(3) Total payments under this Section in any year may not
exceed $65,000,000 plus any amount that was authorized to be
paid under this Section in the preceding year but was not
actually paid by the Board, including any interest earned
thereon.
(4) The total amount of payments under this Section in any
year may not exceed 75% of the total cost of health insurance
coverage in that year for all the recipients who receive
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payments authorized by this Section in that year.
(5) In State fiscal year 2016 and 2017, the State shall
make the maximum contribution to defray health insurance
expenses as allowed in this Section.
(Source: P.A. 93-677, eff. 6-28-04.)
(40 ILCS 5/20-106) (from Ch. 108 1/2, par. 20-106)
(Text of Section WITHOUT the changes made by P.A. 98-599,
which has been held unconstitutional)
Sec. 20-106. Final average salary.
(a) "Final average salary": The average (or other) salary
which is considered by a participating system in determining
the amount of the retirement annuity or survivor's annuity.
(b) Earnings credits under all participating systems shall
be considered by each system in determining final average
salary, but subject to the limitations relating to multitier
participants and multitier retirees, where applicable, under
Article 14 of this Code. In calculating a proportional
retirement or survivor's annuity based on these earnings
credits, the participating system shall apply any limitations
on earnings for annuity purposes that are imposed by the
Article governing the system.
(Source: P.A. 88-593, eff. 8-22-94.)
(40 ILCS 5/20-121) (from Ch. 108 1/2, par. 20-121)
(Text of Section WITHOUT the changes made by P.A. 98-599,
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which has been held unconstitutional)
Sec. 20-121. Calculation of proportional retirement
annuities.
(a) Upon retirement of the employee, a proportional
retirement annuity shall be computed by each participating
system in which pension credit has been established on the
basis of pension credits under each system. The computation
shall be in accordance with the formula or method prescribed by
each participating system which is in effect at the date of the
employee's latest withdrawal from service covered by any of the
systems in which he has pension credits which he elects to have
considered under this Article. However, the amount of any
retirement annuity payable under the self-managed plan
established under Section 15-158.2 of this Code depends solely
on the value of the participant's vested account balances and
is not subject to any proportional adjustment under this
Section.
(b) For multitier participants and multitier retirees
under Article 14 of this Code to whom the provisions of this
Article apply, both the pension credits established under Tier
1 and the pension credits established under Tier 2 may be
considered in determining eligibility for or the amount of the
defined benefit retirement annuity that is payable by any other
participating system.
(c) Combined pension credit under all retirement systems
subject to this Article shall be considered in determining
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whether the minimum qualification has been met and the formula
or method of computation which shall be applied. If a system
has a step-rate formula for calculation of the retirement
annuity, pension credits covering previous service which have
been established under another system shall be considered in
determining which range or ranges of the step-rate formula are
to be applicable to the employee.
(d) Interest on pension credit shall continue to accumulate
in accordance with the provisions of the law governing the
retirement system in which the same has been established during
the time an employee is in the service of another employer, on
the assumption such employee, for interest purposes for pension
credit, is continuing in the service covered by such retirement
system.
(Source: P.A. 91-887, eff. 7-6-00.)
(40 ILCS 5/20-123) (from Ch. 108 1/2, par. 20-123)
(Text of Section WITHOUT the changes made by P.A. 98-599,
which has been held unconstitutional)
Sec. 20-123. Survivor's annuity.
(a) The provisions governing a retirement annuity shall be
applicable to a survivor's annuity. Appropriate credits shall
be established for survivor's annuity purposes in those
participating systems which provide survivor's annuities,
according to the same conditions and subject to the same
limitations and restrictions herein prescribed for a
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retirement annuity. If a participating system has no survivor's
annuity benefit, or if the survivor's annuity benefit under
that system is waived, pension credit established in that
system shall not be considered in determining eligibility for
or the amount of the survivor's annuity which may be payable by
any other participating system.
(b) For persons who participate in the self-managed plan
established under Section 15-158.2 or the portable benefit
package established under Section 15-136.4, pension credit
established under Article 15 may be considered in determining
eligibility for or the amount of the survivor's annuity that is
payable by any other participating system, but pension credit
established in any other system shall not result in any right
to a survivor's annuity under the Article 15 system.
(c) For the survivor of a multitier participant or
multitier retiree under Article 14 of this Code to whom the
provisions of this Article apply:
(1) Both the pension credits established under Tier 1
and the pension credits established under Tier 2 may be
considered in determining eligibility for or the amount of
the defined benefit survivor's annuity that is payable by
any other participating system.
(2) Pension credits established in any other system
shall result in any right to or increase in the value of a
survivor's annuity under the Article 14 system only in
accordance with the provisions relating to survivors of
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multitier participants or multitier annuitants under
Article 14 of this Code.
(Source: P.A. 91-887, eff. 7-6-00.)
(40 ILCS 5/20-124) (from Ch. 108 1/2, par. 20-124)
(Text of Section WITHOUT the changes made by P.A. 98-599,
which has been held unconstitutional)
Sec. 20-124. Maximum benefits.
(a) In no event shall the combined retirement or survivors
annuities exceed the highest annuity which would have been
payable by any participating system in which the employee has
pension credits, if all of his pension credits had been
validated in that system.
If the combined annuities should exceed the highest maximum
as determined in accordance with this Section, the respective
annuities shall be reduced proportionately according to the
ratio which the amount of each proportional annuity bears to
the aggregate of all such annuities.
(b) In the case of a participant in the self-managed plan
established under Section 15-158.2 of this Code to whom the
provisions of this Article apply:
(i) For purposes of calculating the combined
retirement annuity and the proportionate reduction, if
any, in a retirement annuity other than one payable under
the self-managed plan, the amount of the Article 15
retirement annuity shall be deemed to be the highest
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annuity to which the annuitant would have been entitled if
he or she had participated in the traditional benefit
package as defined in Section 15-103.1 rather than the
self-managed plan.
(ii) For purposes of calculating the combined
survivor's annuity and the proportionate reduction, if
any, in a survivor's annuity other than one payable under
the self-managed plan, the amount of the Article 15
survivor's annuity shall be deemed to be the highest
survivor's annuity to which the survivor would have been
entitled if the deceased employee had participated in the
traditional benefit package as defined in Section 15-103.1
rather than the self-managed plan.
(iii) Benefits payable under the self-managed plan are
not subject to proportionate reduction under this Section.
(c) In the case of a multitier participant or multitier
retiree under Article 14 of this Code to whom the provisions of
this Article apply, the retirement and survivor's annuities
shall be considered in separate Tier 1 and Tier 2 portions as
provided in that Article.
(Source: P.A. 91-887, eff. 7-6-00.)
(40 ILCS 5/20-125) (from Ch. 108 1/2, par. 20-125)
(Text of Section WITHOUT the changes made by P.A. 98-599,
which has been held unconstitutional)
Sec. 20-125. Return to employment - suspension of benefits.
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If a retired employee returns to employment which is covered by
a system from which he is receiving a proportional annuity
under this Article, his proportional annuity from all
participating systems shall be suspended during the period of
re-employment, except that this suspension does not apply to
any distributions payable under the self-managed plan
established under Section 15-158.2 of this Code.
The provisions of the Article under which such employment
would be covered shall govern the determination of whether the
employee has returned to employment, and if applicable the
exemption of temporary employment or employment not exceeding a
specified duration or frequency, for all participating systems
from which the retired employee is receiving a proportional
annuity under this Article, notwithstanding any contrary
provisions in the other Articles governing such systems.
In the case of a multitier retiree under Article 14 of this
Code to whom the provisions of this Article apply, the
suspension of retirement annuity shall be considered in
separate Tier 1 and Tier 2 portions as provided in that
Article.
(Source: P.A. 91-887, eff. 7-6-00.)
(40 ILCS 5/1A-201 rep.)
Section 90-30. The Illinois Pension Code is amended by
repealing Section 1A-201.
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Section 90-35. The School Code is amended by changing
Sections 24-1 and 24-8 as follows:
(105 ILCS 5/24-1) (from Ch. 122, par. 24-1)
Sec. 24-1. Appointment-Salaries-Payment-School
month-School term.) School boards shall appoint all teachers,
determine qualifications of employment and fix the amount of
their salaries subject to any limitation set forth in this Act
and subject to any applicable restrictions in Section 15-132.9
or 16-122.9 of the Illinois Pension Code. They shall pay the
wages of teachers monthly, subject, however, to the provisions
of Section 24-21. The school month shall be the same as the
calendar month but by resolution the school board may adopt for
its use a month of 20 days, including holidays. The school term
shall consist of at least the minimum number of pupil
attendance days required by Section 10-19, any additional legal
school holidays, days of teachers' institutes, or equivalent
professional educational experiences, and one or two days at
the beginning of the school term when used as a teachers'
workshop.
(Source: P.A. 80-249.)
(105 ILCS 5/24-8) (from Ch. 122, par. 24-8)
Sec. 24-8. Minimum salary. In fixing the salaries of
teachers, school boards shall pay those who serve on a
full-time basis not less than a rate for the school year that
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is based upon training completed in a recognized institution of
higher learning, as follows: for the school year beginning July
1, 1980 and thereafter, less than a bachelor's degree, $9,000;
120 semester hours or more and a bachelor's degree, $10,000;
150 semester hours or more and a master's degree, $11,000.
Based upon previous public school experience in this State
or any other State, territory, dependency or possession of the
United States, or in schools operated by or under the auspices
of the United States, teachers who serve on a full-time basis
shall have their salaries increased to at least the following
amounts above the starting salary for a teacher in such
district in the same classification: with less than a
bachelor's degree, $750 after 5 years; with 120 semester hours
or more and a bachelor's degree, $1,000 after 5 years and
$1,600 after 8 years; with 150 semester hours or more and a
master's degree, $1,250 after 5 years, $2,000 after 8 years and
$2,750 after 13 years. However, any salary increase is subject
to any applicable restrictions in Section 15-132.9 or 16-122.9
of the Illinois Pension Code.
For the purpose of this Section a teacher's salary shall
include any amount paid by the school district on behalf of the
teacher, as teacher contributions, to the Teachers' Retirement
System of the State of Illinois.
If a school board establishes a schedule for teachers'
salaries based on education and experience, not inconsistent
with this Section, all certificated nurses employed by that
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board shall be paid in accordance with the provisions of such
schedule (subject to any applicable restrictions in Section
15-132.9 or 16-122.9 of the Illinois Pension Code).
For purposes of this Section, a teacher who submits a
certificate of completion to the school office prior to the
first day of the school term shall be considered to have the
degree stated in such certificate.
(Source: P.A. 83-913.)
Section 90-40. The State Universities Civil Service Act is
amended by changing Section 36d as follows:
(110 ILCS 70/36d) (from Ch. 24 1/2, par. 38b3)
Sec. 36d. Powers and duties of the Merit Board.
The Merit Board shall have the power and duty-
(1) To approve a classification plan prepared under its
direction, assigning to each class positions of substantially
similar duties. The Merit Board shall have power to delegate to
its Director the duty of assigning each position in the
classified service to the appropriate class in the
classification plan approved by the Merit Board.
(2) To prescribe the duties of each class of positions and
the qualifications required by employment in that class.
(3) To prescribe the range of compensation for each class
or to fix a single rate of compensation for employees in a
particular class; and to establish other conditions of
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employment which an employer and employee representatives have
agreed upon as fair and equitable. The Merit Board shall direct
the payment of the "prevailing rate of wages" in those
classifications in which, on January 1, 1952, any employer is
paying such prevailing rate and in such other classes as the
Merit Board may thereafter determine. "Prevailing rate of
wages" as used herein shall be the wages paid generally in the
locality in which the work is being performed to employees
engaged in work of a similar character. Subject to any
applicable restrictions in Section 15-132.9 or 16-122.9 of the
Illinois Pension Code, each Each employer covered by the
University System shall be authorized to negotiate with
representatives of employees to determine appropriate ranges
or rates of compensation or other conditions of employment and
may recommend to the Merit Board for establishment the rates or
ranges or other conditions of employment which the employer and
employee representatives have agreed upon as fair and
equitable, but excluding the changes, the impact of changes,
and the implementation of the changes set forth in this
amendatory Act of the 99th General Assembly. Any rates or
ranges established prior to January 1, 1952, and hereafter,
shall not be changed except in accordance with the procedures
herein provided.
(4) To recommend to the institutions and agencies specified
in Section 36e standards for hours of work, holidays, sick
leave, overtime compensation and vacation for the purpose of
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improving conditions of employment covered therein and for the
purpose of insuring conformity with the prevailing rate
principal.
(5) To prescribe standards of examination for each class,
the examinations to be related to the duties of such class. The
Merit Board shall have power to delegate to the Director and
his staff the preparation, conduct and grading of examinations.
Examinations may be written, oral, by statement of training and
experience, in the form of tests of knowledge, skill, capacity,
intellect, aptitude; or, by any other method, which in the
judgment of the Merit Board is reasonable and practical for any
particular classification. Different examining procedures may
be determined for the examinations in different
classifications but all examinations in the same
classification shall be uniform.
(6) To authorize the continuous recruitment of personnel
and to that end, to delegate to the Director and his staff the
power and the duty to conduct open and continuous competitive
examinations for all classifications of employment.
(7) To cause to be established from the results of
examinations registers for each class of positions in the
classified service of the State Universities Civil Service
System, of the persons who shall attain the minimum mark fixed
by the Merit Board for the examination; and such persons shall
take rank upon the registers as candidates in the order of
their relative excellence as determined by examination,
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without reference to priority of time of examination.
(8) To provide by its rules for promotions in the
classified service. Vacancies shall be filled by promotion
whenever practicable. For the purpose of this paragraph, an
advancement in class shall constitute a promotion.
(9) To set a probationary period of employment of no less
than 6 months and no longer than 12 months for each class of
positions in the classification plan, the length of the
probationary period for each class to be determined by the
Director.
(10) To provide by its rules for employment at regular
rates of compensation of physically handicapped persons in
positions in which the handicap does not prevent the individual
from furnishing satisfactory service.
(11) To make and publish rules, to carry out the purpose of
the State Universities Civil Service System and for
examination, appointments, transfers and removals and for
maintaining and keeping records of the efficiency of officers
and employees and groups of officers and employees in
accordance with the provisions of Sections 36b to 36q,
inclusive, and said Merit Board may from time to time make
changes in such rules.
(12) To appoint a Director and such assistants and other
clerical and technical help as may be necessary efficiently to
administer Sections 36b to 36q, inclusive. To authorize the
Director to appoint an assistant resident at the place of
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employment of each employer specified in Section 36e and this
assistant may be authorized to give examinations and to certify
names from the regional registers provided in Section 36k.
(13) To submit to the Governor of this state on or before
November 1 of each year prior to the regular session of the
General Assembly a report of the University System's business
and an estimate of the amount of appropriation from state funds
required for the purpose of administering the University
System.
(Source: P.A. 82-524.)
Section 90-45. The University of Illinois Act is amended by
adding Section 90 as follows:
(110 ILCS 305/90 new)
Sec. 90. Future increases in income. The University of
Illinois must not pay, offer, or agree to pay any future
increase in income, as that term is defined in Section 15-132.9
or 16-122.9 of the Illinois Pension Code, to any person in a
manner that violates any of those Sections.
Section 90-50. The Southern Illinois University Management
Act is amended by adding Section 75 as follows:
(110 ILCS 520/75 new)
Sec. 75. Future increases in income. Southern Illinois
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University must not pay, offer, or agree to pay any future
increase in income, as that term is defined in Section 15-132.9
or 16-122.9 of the Illinois Pension Code, to any person in a
manner that violates any of those Sections.
Section 90-55. The Chicago State University Law is amended
by adding Section 5-185 as follows:
(110 ILCS 660/5-185 new)
Sec. 5-185. Future increases in income. Chicago State
University must not pay, offer, or agree to pay any future
increase in income, as that term is defined in Section 15-132.9
or 16-122.9 of the Illinois Pension Code, to any person in a
manner that violates any of those Sections.
Section 90-60. The Eastern Illinois University Law is
amended by adding Section 10-185 as follows:
(110 ILCS 665/10-185 new)
Sec. 10-185. Future increases in income. Eastern Illinois
University must not pay, offer, or agree to pay any future
increase in income, as that term is defined in Section 15-132.9
or 16-122.9 of the Illinois Pension Code, to any person in a
manner that violates any of those Sections.
Section 90-65. The Governors State University Law is
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amended by adding Section 15-185 as follows:
(110 ILCS 670/15-185 new)
Sec. 15-185. Future increases in income. Governors State
University must not pay, offer, or agree to pay any future
increase in income, as that term is defined in Section 15-132.9
or 16-122.9 of the Illinois Pension Code, to any person in a
manner that violates any of those Sections.
Section 90-70. The Illinois State University Law is amended
by adding Section 20-190 as follows:
(110 ILCS 675/20-190 new)
Sec. 20-190. Future increases in income. Illinois State
University must not pay, offer, or agree to pay any future
increase in income, as that term is defined in Section 15-132.9
or 16-122.9 of the Illinois Pension Code, to any person in a
manner that violates any of those Sections.
Section 90-75. The Northeastern Illinois University Law is
amended by adding Section 25-185 as follows:
(110 ILCS 680/25-185 new)
Sec. 25-185. Future increases in income. Northeastern
Illinois University must not pay, offer, or agree to pay any
future increase in income, as that term is defined in Section
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15-132.9 or 16-122.9 of the Illinois Pension Code, to any
person in a manner that violates any of those Sections.
Section 90-80. The Northern Illinois University Law is
amended by adding Section 30-195 as follows:
(110 ILCS 685/30-195 new)
Sec. 30-195. Future increases in income. Northern Illinois
University must not pay, offer, or agree to pay any future
increase in income, as that term is defined in Section 15-132.9
or 16-122.9 of the Illinois Pension Code, to any person in a
manner that violates any of those Sections.
Section 90-85. The Western Illinois University Law is
amended by adding Section 35-190 as follows:
(110 ILCS 690/35-190 new)
Sec. 35-190. Future increases in income. Western Illinois
University must not pay, offer, or agree to pay any future
increase in income, as that term is defined in Section 15-132.9
or 16-122.9 of the Illinois Pension Code, to any person in a
manner that violates any of those Sections.
Section 90-90. The Public Community College Act is amended
by changing Sections 3-26 and 3-42 as follows:
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(110 ILCS 805/3-26) (from Ch. 122, par. 103-26)
Sec. 3-26. (a) To make appointments and fix the salaries of
a chief administrative officer, who shall be the executive
officer of the board, other administrative personnel, and all
teachers, but subject to any applicable restrictions in Section
15-132.9 or 16-122.9 of the Illinois Pension Code. In making
these appointments and fixing the salaries, the board may make
no discrimination on account of sex, race, creed, color or
national origin.
(b) Upon the written request of an employee, to withhold
from the compensation of that employee the membership dues of
such employee payable to any specified labor organization as
defined in the Illinois Educational Labor Relations Act. Under
such arrangement, an amount shall be withheld for each regular
payroll period which is equal to the prorata share of the
annual membership dues plus any payments or contributions and
the board shall pay such withholding to the specified labor
organization within 10 working days from the time of the
withholding.
(Source: P.A. 83-1014.)
(110 ILCS 805/3-42) (from Ch. 122, par. 103-42)
Sec. 3-42. To employ such personnel as may be needed, to
establish policies governing their employment and dismissal,
and to fix the amount of their compensation, subject to any
applicable restrictions in Section 15-132.9 or 16-122.9 of the
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Illinois Pension Code. In the employment, establishment of
policies and fixing of compensation the board may make no
discrimination on account of sex, race, creed, color or
national origin.
Residence within any community college district or outside
any community college district shall not be considered:
(a) in determining whether to retain or not retain any
employee of a community college employed prior to July 1,
1977 or prior to the adoption by the community college
board of a resolution making residency within the community
college district of some or all employees a condition of
employment, whichever is later;
(b) in assigning, promoting or transferring any
employee of a community college to an office or position
employed prior to July 1, 1977 or prior to the adoption by
the community college board of a resolution making
residency within the community college district of some or
all employees a condition of employment, whichever is
later; or
(c) in determining the salary or other compensation of
any employee of a community college.
(Source: P.A. 80-248.)
Section 90-95. The Illinois Educational Labor Relations
Act is amended by changing Sections 1, 3, 4, 10, 14, and 17 and
by adding Section 10.6 as follows:
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(115 ILCS 5/1) (from Ch. 48, par. 1701)
Sec. 1. Policy. It is the public policy of this State and
the purpose of this Act to promote orderly and constructive
relationships between all educational employees and their
employers. Unresolved disputes between the educational
employees and their employers are injurious to the public, and
the General Assembly is therefore aware that adequate means
must be established for minimizing them and providing for their
resolution. It is the purpose of this Act to regulate labor
relations between educational employers and educational
employees, including the designation of educational employee
representatives, negotiation of terms and wages, hours and
other conditions of employment and resolution of disputes
arising under collective bargaining agreements. The General
Assembly recognizes that substantial differences exist between
educational employees and other public employees as a result of
the uniqueness of the educational work calendar and educational
work duties and the traditional and historical patterns of
collective bargaining between educational employers and
educational employees and that such differences demand
statutory regulation of collective bargaining between
educational employers and educational employees in a manner
that recognizes these differences. Recognizing that harmonious
relationships are required between educational employees and
their employers, the General Assembly has determined that the
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overall policy may best be accomplished by (a) granting to
educational employees the right to organize and choose freely
their representatives; (b) requiring educational employers to
negotiate and bargain with employee organizations representing
educational employees and to enter into written agreements
evidencing the result of such bargaining; and (c) establishing
procedures to provide for the protection of the rights of the
educational employee, the educational employer and the public.
(Source: P.A. 83-1014.)
(115 ILCS 5/3) (from Ch. 48, par. 1703)
Sec. 3. Employee rights.
(a) It shall be lawful for educational employees to
organize, form, join, or assist in employee organizations or
engage in lawful concerted activities for the purpose of
collective bargaining or other mutual aid and protection or
bargain collectively through representatives of their own free
choice and, except as provided in Section 11, such employees
shall also have the right to refrain from any or all such
activities.
(b) Representatives selected by educational employees in a
unit appropriate for collective bargaining purposes shall be
the exclusive representative of all the employees in such unit
to bargain on wages, hours, terms and conditions of employment.
However, any individual employee or a group of employees may at
any time present grievances to their employer and have them
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adjusted without the intervention of the bargaining
representative as long as the adjustment is not inconsistent
with the terms of a collective bargaining agreement then in
effect, provided that the bargaining representative has been
given an opportunity to be present at such adjustment.
(Source: P.A. 83-1014.)
(115 ILCS 5/4) (from Ch. 48, par. 1704)
(Text of Section WITHOUT the changes made by P.A. 98-599,
which has been held unconstitutional)
Sec. 4. Employer rights. Employers shall not be required to
bargain over matters of inherent managerial policy, which shall
include such areas of discretion or policy as the functions of
the employer, standards of services, its overall budget, the
organizational structure and selection of new employees and
direction of employees. Employers, however, shall be required
to bargain collectively with regard to policy matters directly
affecting wages, hours and terms and conditions of employment
as well as the impact thereon upon request by employee
representatives, except as provided in Section 10.6. To
preserve the rights of employers and exclusive representatives
which have established collective bargaining relationships or
negotiated collective bargaining agreements prior to the
effective date of this Act, employers shall be required to
bargain collectively with regard to any matter concerning
wages, hours or conditions of employment about which they have
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bargained for and agreed to in a collective bargaining
agreement prior to the effective date of this Act, except as
provided in Section 10.6.
(Source: P.A. 83-1014.)
(115 ILCS 5/10) (from Ch. 48, par. 1710)
Sec. 10. Duty to bargain.
(a) An educational employer and the exclusive
representative have the authority and the duty to bargain
collectively as set forth in this Section. Collective
bargaining is the performance of the mutual obligations of the
educational employer and the representative of the educational
employees to meet at reasonable times and confer in good faith
with respect to wages, hours and other terms and conditions of
employment, and to execute a written contract incorporating any
agreement reached by such obligation, provided such obligation
does not compel either party to agree to a proposal or require
the making of a concession.
(b) The parties to the collective bargaining process shall
not effect or implement a provision in a collective bargaining
agreement if the implementation of that provision would be in
violation of, or inconsistent with, or in conflict with any
statute or statutes enacted by the General Assembly of
Illinois. The parties to the collective bargaining process may
effect or implement a provision in a collective bargaining
agreement if the implementation of that provision has the
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effect of supplementing any provision in any statute or
statutes enacted by the General Assembly of Illinois pertaining
to wages, hours or other conditions of employment; provided
however, no provision in a collective bargaining agreement may
be effected or implemented if such provision has the effect of
negating, abrogating, replacing, reducing, diminishing, or
limiting in any way any employee rights, guarantees or
privileges pertaining to wages, hours or other conditions of
employment provided in such statutes except if it pertains to
prohibited subjects of bargaining provided in Section 10.6 of
this Act. Any provision in a collective bargaining agreement
which has the effect of negating, abrogating, replacing,
reducing, diminishing or limiting in any way any employee
rights, guarantees or privileges provided in an Illinois
statute or statutes shall be void and unenforceable, but shall
not affect the validity, enforceability and implementation of
other permissible provisions of the collective bargaining
agreement.
(c) The collective bargaining agreement negotiated between
representatives of the educational employees and the
educational employer shall contain a grievance resolution
procedure which shall apply to all employees in the unit and
shall provide for binding arbitration of disputes concerning
the administration or interpretation of the agreement. The
agreement shall also contain appropriate language prohibiting
strikes for the duration of the agreement. The costs of such
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arbitration shall be borne equally by the educational employer
and the employee organization.
(d) Once an agreement is reached between representatives of
the educational employees and the educational employer and is
ratified by both parties, the agreement shall be reduced to
writing and signed by the parties.
(Source: P.A. 84-832.)
(115 ILCS 5/10.6 new)
Sec. 10.6. Prohibited subjects of bargaining.
(a) An educational employer and a labor organization may
not bargain over, and no collective bargaining agreement
entered into, renewed, or extended on or after the effective
date of this amendatory Act of the 99th General Assembly may
include, provisions related to the following prohibited
subjects of collective bargaining:
(1) Employee pensions, including the impact or
implementation of changes to employee pensions, including
the Employee Consideration Pension Transition Program as
set forth in Section 30 of the Personnel Code.
(2) Wages, including any form of compensation
including salaries, overtime compensation, vacations,
holidays, and any fringe benefits, including the impact or
implementation of changes to the same; except nothing in
this Section 10.6 will prohibit the employer from electing
to bargain collectively over employer-provided health
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insurance.
(3) Hours of work, including work schedules, shift
schedules, overtime hours, compensatory time, and lunch
periods, including the impact or implementation of changes
to the same.
(4) Matters of employee tenure, including the impact of
employee tenure or time in service on the educational
employer's exercise of authority including, but not
limited to, any consideration the employer must give to the
tenure of employees adversely affected by the employer's
exercise of management's right to conduct a layoff.
(b) In case of any conflict between this Section and any
other provisions of this Act or any other law, the provisions
of this Section shall control; except that in case of any
conflict between this Section and any other provisions of this
Act as amended by this amendatory Act of the 99th General
Assembly, the changes made by this amendatory Act of the 99th
General Assembly shall control.
(115 ILCS 5/14) (from Ch. 48, par. 1714)
Sec. 14. Unfair labor practices.
(a) Educational employers, their agents or representatives
are prohibited from:
(1) Interfering, restraining or coercing employees in
the exercise of the rights guaranteed under this Act.
(2) Dominating or interfering with the formation,
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existence or administration of any employee organization.
(3) Discriminating in regard to hire or tenure of
employment or any term or condition of employment to
encourage or discourage membership in any employee
organization.
(4) Discharging or otherwise discriminating against an
employee because he or she has signed or filed an
affidavit, authorization card, petition or complaint or
given any information or testimony under this Act.
(5) Refusing to bargain collectively in good faith with
an employee representative which is the exclusive
representative of employees in an appropriate unit,
including but not limited to the discussing of grievances
with the exclusive representative; provided, however, that
if an alleged unfair labor practice involves
interpretation or application of the terms of a collective
bargaining agreement and said agreement contains a
grievance and arbitration procedure, the Board may defer
the resolution of such dispute to the grievance and
arbitration procedure contained in said agreement;
however, no actions of the educational employer taken to
negotiate with individual educational employees regarding
public employee participation in the Employee
Consideration Pension Transition Program as set forth in
Section 30 of the Personnel Code will be considered an
unfair labor practice.
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(6) Refusing to reduce a collective bargaining
agreement to writing and signing such agreement.
(7) Violating any of the rules and regulations
promulgated by the Board regulating the conduct of
representation elections.
(8) Refusing to comply with the provisions of a binding
arbitration award.
(9) Expending or causing the expenditure of public
funds to any external agent, individual, firm, agency,
partnership or association in any attempt to influence the
outcome of representational elections held pursuant to
paragraph (c) of Section 7 of this Act; provided, that
nothing in this subsection shall be construed to limit an
employer's right to be represented on any matter pertaining
to unit determinations, unfair labor practice charges or
pre-election conferences in any formal or informal
proceeding before the Board, or to seek or obtain advice
from legal counsel. Nothing in this paragraph shall be
construed to prohibit an employer from expending or causing
the expenditure of public funds on, or seeking or obtaining
services or advice from, any organization, group or
association established by, and including educational or
public employers, whether or not covered by this Act, the
Illinois Public Labor Relations Act or the public
employment labor relations law of any other state or the
federal government, provided that such services or advice
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are generally available to the membership of the
organization, group, or association, and are not offered
solely in an attempt to influence the outcome of a
particular representational election.
(b) Employee organizations, their agents or
representatives or educational employees are prohibited from:
(1) Restraining or coercing employees in the exercise
of the rights guaranteed under this Act, provided that a
labor organization or its agents shall commit an unfair
labor practice under this paragraph in duty of fair
representation cases only by intentional misconduct in
representing employees under this Act.
(2) Restraining or coercing an educational employer in
the selection of his representative for the purposes of
collective bargaining or the adjustment of grievances.
(3) Refusing to bargain collectively in good faith with
an educational employer, if they have been designated in
accordance with the provisions of this Act as the exclusive
representative of employees in an appropriate unit.
(4) Violating any of the rules and regulations
promulgated by the Board regulating the conduct of
representation elections.
(5) Refusing to reduce a collective bargaining
agreement to writing and signing such agreement.
(6) Refusing to comply with the provisions of a binding
arbitration award.
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(c) The expressing of any views, argument, opinion or the
dissemination thereof, whether in written, printed, graphic or
visual form, shall not constitute or be evidence of an unfair
labor practice under any of the provisions of this Act, if such
expression contains no threat of reprisal or force or promise
of benefit.
(d) The actions of a Financial Oversight Panel created
pursuant to Section 1A-8 of the School Code due to a district
violating a financial plan shall not constitute or be evidence
of an unfair labor practice under any of the provisions of this
Act. Such actions include, but are not limited to, reviewing,
approving, or rejecting a school district budget or a
collective bargaining agreement.
(Source: P.A. 89-572, eff. 7-30-96.)
(115 ILCS 5/17) (from Ch. 48, par. 1717)
(Text of Section WITHOUT the changes made by P.A. 98-599,
which has been held unconstitutional)
Sec. 17. Effect on other laws. Except as provided in
Section 10.6, in In case of any conflict between the provisions
of this Act and any other law, executive order or
administrative regulation, the provisions of this Act shall
prevail and control. Nothing in this Act shall be construed to
replace or diminish the rights of employees established by
Section 36d of "An Act to create the State Universities Civil
Service System", approved May 11, 1905, as amended or modified.
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(Source: P.A. 83-1014.)
Section 90-100. The Public Safety Employee Benefits Act is
amended by changing Section 10 as follows:
(820 ILCS 320/10)
Sec. 10. Required health coverage benefits.
(a) An employer who employs a full-time law enforcement,
correctional or correctional probation officer, or
firefighter, who, on or after the effective date of this Act
suffers a catastrophic injury or is killed in the line of duty
shall pay the entire premium of the employer's health insurance
plan for the injured employee, the injured employee's spouse,
and for each dependent child of the injured employee until the
child reaches the age of majority or until the end of the
calendar year in which the child reaches the age of 25 if the
child continues to be dependent for support or the child is a
full-time or part-time student and is dependent for support.
The term "health insurance plan" does not include supplemental
benefits that are not part of the basic group health insurance
plan. If the injured employee subsequently dies, the employer
shall continue to pay the entire health insurance premium for
the surviving spouse until remarried and for the dependent
children under the conditions established in this Section.
However:
(1) Health insurance benefits payable from any other
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source shall reduce benefits payable under this Section.
(2) It is unlawful for a person to willfully and
knowingly make, or cause to be made, or to assist, conspire
with, or urge another to make, or cause to be made, any
false, fraudulent, or misleading oral or written statement
to obtain health insurance coverage as provided under this
Section. A violation of this item is a Class A misdemeanor.
(3) Upon conviction for a violation described in item
(2), a law enforcement, correctional or correctional
probation officer, or other beneficiary who receives or
seeks to receive health insurance benefits under this
Section shall forfeit the right to receive health insurance
benefits and shall reimburse the employer for all benefits
paid due to the fraud or other prohibited activity. For
purposes of this item, "conviction" means a determination
of guilt that is the result of a plea or trial, regardless
of whether adjudication is withheld.
(b) In order for the law enforcement, correctional or
correctional probation officer, firefighter, spouse, or
dependent children to be eligible for insurance coverage under
this Act, the injury or death must have occurred as the result
of the officer's response to fresh pursuit, the officer or
firefighter's response to what is reasonably believed to be an
emergency, an unlawful act perpetrated by another, or during
the investigation of a criminal act. Nothing in this Section
shall be construed to limit health insurance coverage or
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pension benefits for which the officer, firefighter, spouse, or
dependent children may otherwise be eligible.
(c) As used in this Section, "catastrophic injury" means a
grievous or serious injury or impairment of a nature that is
sufficient to permanently preclude the injured employee from
performing any gainful work. The employer may, at its expense,
require an employee seeking benefits under this Act to submit
to examination by up to 3 licensed physicians. The
determination of whether an employee has suffered a
catastrophic injury shall be made by the employer's corporate
authorities or such person or persons as may be designated by
ordinance adopted by the corporate authorities, whose
determination shall be final and subject to judicial review
under the Administrative Review Law. The employer shall be
deemed a necessary party to any case brought under the
Administrative Review Law.
(Source: P.A. 90-535, eff. 11-14-97.)
ARTICLE 99.
SEVERABILITY PROVISION AND EFFECTIVE DATE
Section 99-97. Severability. If any provision of this Act
or its application to any person or circumstance is held
invalid, the invalidity of that provision or application does
not affect other provisions or applications of this Act that
can be given effect without the invalid provision or
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application.
If an Illinois court or a court of competent jurisdiction
preliminarily enjoins or enters any other temporary injunctive
relief concerning any provision of this Act or its application
to any person or circumstance, such temporary relief shall not
affect other provisions or applications of this Act that can be
given effect without the enjoined provision or application.
Section 99-99. Effective date. This Act takes effect upon
becoming law.
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INDEX
Statutes amended in order of appearance
New Act
5 ILCS 120/2 from Ch. 102, par. 42
5 ILCS 140/7.5
40 ILCS 5/1-160
40 ILCS 5/9-108.3 new
40 ILCS 5/9-110.1 new
40 ILCS 5/9-110.2 new
40 ILCS 5/9-112 from Ch. 108 1/2, par. 9-112
40 ILCS 5/9-112.1 new
40 ILCS 5/9-117.1 new
40 ILCS 5/9-117.2 new
40 ILCS 5/9-117.3 new
40 ILCS 5/9-118.5 new
40 ILCS 5/9-119.1
40 ILCS 5/9-121.6 from Ch. 108 1/2, par. 9-121.6
40 ILCS 5/9-124.1 new
40 ILCS 5/9-128.1 from Ch. 108 1/2, par. 9-128.1
40 ILCS 5/9-132.1 new
40 ILCS 5/9-133 from Ch. 108 1/2, par. 9-133
40 ILCS 5/9-133.1 from Ch. 108 1/2, par. 9-133.1
40 ILCS 5/9-133.2 new
40 ILCS 5/9-134 from Ch. 108 1/2, par. 9-134
40 ILCS 5/9-146.2
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40 ILCS 5/9-169 from Ch. 108 1/2, par. 9-169
40 ILCS 5/9-169.1 new
40 ILCS 5/9-170 from Ch. 108 1/2, par. 9-170
40 ILCS 5/9-179.2 from Ch. 108 1/2, par. 9-179.2
40 ILCS 5/9-179.3 from Ch. 108 1/2, par. 9-179.3
40 ILCS 5/9-184 from Ch. 108 1/2, par. 9-184
40 ILCS 5/9-185 from Ch. 108 1/2, par. 9-185
40 ILCS 5/9-189 from Ch. 108 1/2, par. 9-189
40 ILCS 5/9-195 from Ch. 108 1/2, par. 9-195
40 ILCS 5/9-199 from Ch. 108 1/2, par. 9-199
40 ILCS 5/9-201.1 new
40 ILCS 5/9-220 from Ch. 108 1/2, par. 9-220
40 ILCS 5/9-239 from Ch. 108 1/2, par. 9-239
40 ILCS 5/9-245 new
40 ILCS 5/10-103 from Ch. 108 1/2, par. 10-103
40 ILCS 5/10-107 from Ch. 108 1/2, par. 10-107
40 ILCS 5/9-132 rep.
55 ILCS 5/6-24001 from Ch. 34, par. 6-24001
40 ILCS 5/9-108.3 new
40 ILCS 5/9-108.4 new
40 ILCS 5/9-112 from Ch. 108 1/2, par. 9-112
40 ILCS 5/9-112.1 new
40 ILCS 5/9-119.2 new
40 ILCS 5/9-133 from Ch. 108 1/2, par. 9-133
5 ILCS 315/2 from Ch. 48, par. 1602
5 ILCS 315/3 from Ch. 48, par. 1603
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5 ILCS 315/4 from Ch. 48, par. 1604
5 ILCS 315/7 from Ch. 48, par. 1607
5 ILCS 315/7.6 new
5 ILCS 315/10 from Ch. 48, par. 1610
5 ILCS 315/15 from Ch. 48, par. 1615
5 ILCS 315/19 from Ch. 48, par. 1619
15 ILCS 310/6a from Ch. 124, par. 106a
15 ILCS 310/10a from Ch. 124, par. 110a
15 ILCS 310/10b.3 from Ch. 124, par. 110b.3
15 ILCS 310/10b.5 from Ch. 124, par. 110b.5
15 ILCS 310/10b.12 from Ch. 124, par. 110b.12
15 ILCS 310/10b.13 from Ch. 124, par. 110b.13
15 ILCS 310/10c from Ch. 124, par. 110c
15 ILCS 310/20 new
15 ILCS 410/6a from Ch. 15, par. 410
15 ILCS 410/10a from Ch. 15, par. 424
15 ILCS 410/10b.3 from Ch. 15, par. 428
15 ILCS 410/10b.5 from Ch. 15, par. 430
15 ILCS 410/10b.12 from Ch. 15, par. 437
15 ILCS 410/10b.13 from Ch. 15, par. 438
15 ILCS 410/10c from Ch. 15, par. 443
15 ILCS 410/20 new
15 ILCS 510/6 from Ch. 130, par. 106
15 ILCS 510/9a from Ch. 130, par. 109a
15 ILCS 510/9b from Ch. 130, par. 109b
15 ILCS 510/9b.9 from Ch. 130, par. 109b.9
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15 ILCS 510/9b.10 from Ch. 130, par. 109b.10
15 ILCS 510/9c from Ch. 130, par. 109c
15 ILCS 510/20 new
20 ILCS 415/8a from Ch. 127, par. 63b108a
20 ILCS 415/8b.3 from Ch. 127, par. 63b108b.3
20 ILCS 415/8b.5 from Ch. 127, par. 63b108b.5
20 ILCS 415/8b.12 from Ch. 127, par. 63b108b.12
20 ILCS 415/8b.13 from Ch. 127, par. 63b108b.13
20 ILCS 415/8c from Ch. 127, par. 63b108c
20 ILCS 415/9 from Ch. 127, par. 63b109
20 ILCS 415/10 from Ch. 127, par. 63b110
20 ILCS 415/12f
20 ILCS 415/30 new
40 ILCS 5/1-113 from Ch. 108 1/2, par. 1-113
40 ILCS 5/1-113.1
40 ILCS 5/1-113.2
40 ILCS 5/1-113.3
40 ILCS 5/1-113.4
40 ILCS 5/1-113.4a
40 ILCS 5/1-113.5
40 ILCS 5/1-160
40 ILCS 5/2-105.3 new
40 ILCS 5/2-105.4 new
40 ILCS 5/2-107.9 new
40 ILCS 5/2-108 from Ch. 108 1/2, par. 2-108
40 ILCS 5/2-110.3 new
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40 ILCS 5/2-119.1 from Ch. 108 1/2, par. 2-119.1
40 ILCS 5/2-126 from Ch. 108 1/2, par. 2-126
40 ILCS 5/3-106.1 new
40 ILCS 5/3-106.2 new
40 ILCS 5/3-111 from Ch. 108 1/2, par. 3-111
40 ILCS 5/3-111.1 from Ch. 108 1/2, par. 3-111.1
40 ILCS 5/3-111.2 new
40 ILCS 5/3-111.5 new
40 ILCS 5/3-125 from Ch. 108 1/2, par. 3-125
40 ILCS 5/3-125.3 new
40 ILCS 5/3-125.4 new
40 ILCS 5/3-127 from Ch. 108 1/2, par. 3-127
40 ILCS 5/3-132 from Ch. 108 1/2, par. 3-132
40 ILCS 5/3-135 from Ch. 108 1/2, par. 3-135
40 ILCS 5/3-135.1 new
40 ILCS 5/3-135.5 new
40 ILCS 5/4-105e new
40 ILCS 5/4-105f new
40 ILCS 5/4-105g new
40 ILCS 5/4-105h new
40 ILCS 5/4-109 from Ch. 108 1/2, par. 4-109
40 ILCS 5/4-109.1 from Ch. 108 1/2, par. 4-109.1
40 ILCS 5/4-109.5 new
40 ILCS 5/4-109.8 new
40 ILCS 5/4-118 from Ch. 108 1/2, par. 4-118
40 ILCS 5/4-120 from Ch. 108 1/2, par. 4-120
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40 ILCS 5/4-123 from Ch. 108 1/2, par. 4-123
40 ILCS 5/4-128 from Ch. 108 1/2, par. 4-128
40 ILCS 5/4-128.1 new
40 ILCS 5/4-128.5 new
40 ILCS 5/5-167.2 from Ch. 108 1/2, par. 5-167.2
40 ILCS 5/5-168 from Ch. 108 1/2, par. 5-168
40 ILCS 5/5-168.2 new
40 ILCS 5/5-238
40 ILCS 5/5-238.5 new
40 ILCS 5/6-128.2 from Ch. 108 1/2, par. 6-128.2
40 ILCS 5/6-165 from Ch. 108 1/2, par. 6-165
40 ILCS 5/6-165.2 new
40 ILCS 5/6-229
40 ILCS 5/6-229.5 new
40 ILCS 5/7-195.2 new
40 ILCS 5/7-195.3 new
40 ILCS 5/7-201.5 new
40 ILCS 5/7-225.5 new
40 ILCS 5/14-103.41 new
40 ILCS 5/14-103.42 new
40 ILCS 5/14-106 from Ch. 108 1/2, par. 14-106
40 ILCS 5/14-107.5 new
40 ILCS 5/14-120.5 new
40 ILCS 5/14-160 new
40 ILCS 5/15-108.3 new
40 ILCS 5/15-108.4 new
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40 ILCS 5/15-111 from Ch. 108 1/2, par. 15-111
40 ILCS 5/15-112.1 new
40 ILCS 5/15-132.9 new
40 ILCS 5/15-136 from Ch. 108 1/2, par. 15-136
40 ILCS 5/16-107.1 new
40 ILCS 5/16-107.2 new
40 ILCS 5/16-121 from Ch. 108 1/2, par. 16-121
40 ILCS 5/16-121.1 new
40 ILCS 5/16-122.9 new
40 ILCS 5/16-133.1 from Ch. 108 1/2, par. 16-133.1
40 ILCS 5/16-136.1 from Ch. 108 1/2, par. 16-136.1
40 ILCS 5/17-106.2 new
40 ILCS 5/17-106.3 new
40 ILCS 5/17-116.8 new
40 ILCS 5/17-116.9 new
40 ILCS 5/17-116.10 new
40 ILCS 5/17-119 from Ch. 108 1/2, par. 17-119
40 ILCS 5/17-127 from Ch. 108 1/2, par. 17-127
40 ILCS 5/17-130.1 from Ch. 108 1/2, par. 17-130.1
40 ILCS 5/17-142.1 from Ch. 108 1/2, par. 17-142.1
40 ILCS 5/20-106 from Ch. 108 1/2, par. 20-106
40 ILCS 5/20-121 from Ch. 108 1/2, par. 20-121
40 ILCS 5/20-123 from Ch. 108 1/2, par. 20-123
40 ILCS 5/20-124 from Ch. 108 1/2, par. 20-124
40 ILCS 5/20-125 from Ch. 108 1/2, par. 20-125
40 ILCS 5/1A-201 rep.
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105 ILCS 5/24-1 from Ch. 122, par. 24-1
105 ILCS 5/24-8 from Ch. 122, par. 24-8
110 ILCS 70/36d from Ch. 24 1/2, par. 38b3
110 ILCS 305/90 new
110 ILCS 520/75 new
110 ILCS 660/5-185 new
110 ILCS 665/10-185 new
110 ILCS 670/15-185 new
110 ILCS 675/20-190 new
110 ILCS 680/25-185 new
110 ILCS 685/30-195 new
110 ILCS 690/35-190 new
110 ILCS 805/3-26 from Ch. 122, par. 103-26
110 ILCS 805/3-42 from Ch. 122, par. 103-42
115 ILCS 5/1 from Ch. 48, par. 1701
115 ILCS 5/3 from Ch. 48, par. 1703
115 ILCS 5/4 from Ch. 48, par. 1704
115 ILCS 5/10 from Ch. 48, par. 1710
115 ILCS 5/10.6 new
115 ILCS 5/14 from Ch. 48, par. 1714
115 ILCS 5/17 from Ch. 48, par. 1717
820 ILCS 320/10
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- 484 - LRB099 13050 RPS 36929 b