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SB2802 Enrolled LRB104 17391 RPS 30816 b
1 AN ACT concerning public employee benefits.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Illinois Pension Code is amended by
5 changing Sections 7-132, 7-158, 7-164, 7-172, 7-205, and 7-206
6 as follows:
7 (40 ILCS 5/7-132) (from Ch. 108 1/2, par. 7-132)
8 Sec. 7-132. Municipalities, instrumentalities and
9 participating instrumentalities included and effective dates.
10 (A) Municipalities and their instrumentalities.
11 (a) The following described municipalities, but not
12 including any with more than 1,000,000 inhabitants, and the
13 instrumentalities thereof, shall be included within and be
14 subject to this Article beginning upon the effective dates
15 specified by the Board:
16 (1) Except as to the municipalities and
17 instrumentalities thereof specifically excluded under this
18 Article, every county shall be subject to this Article,
19 and all cities, villages and incorporated towns having a
20 population in excess of 5,000 inhabitants as determined by
21 the last preceding decennial or subsequent federal census,
22 shall be subject to this Article following publication of
23 the census by the Bureau of the Census. Within 90 days
SB2802 Enrolled -2- LRB104 17391 RPS 30816 b
1 after publication of the census, the Board shall notify
2 any municipality that has become subject to this Article
3 as a result of that census, and shall provide information
4 to the corporate authorities of the municipality
5 explaining the duties and consequences of participation.
6 The notification shall also include a proposed date upon
7 which participation by the municipality will commence.
8 However, for any city, village or incorporated town
9 that attains a population over 5,000 inhabitants after
10 having provided social security coverage for its employees
11 under the Social Security Enabling Act, participation
12 under this Article shall not be mandatory but may be
13 elected in accordance with subparagraph (3) or (4) of this
14 paragraph (a), whichever is applicable.
15 (2) School districts, other than those specifically
16 excluded under this Article, shall be subject to this
17 Article, without election, with respect to all employees
18 thereof.
19 (3) Towns and all other bodies politic and corporate
20 which are formed by vote of, or are subject to control by,
21 the electors in towns and are located in towns which are
22 not participating municipalities on the effective date of
23 this Act, may become subject to this Article by election
24 pursuant to Section 7-132.1.
25 (4) Any other municipality (together with its
26 instrumentalities), other than those specifically excluded
SB2802 Enrolled -3- LRB104 17391 RPS 30816 b
1 from participation and those described in paragraph (3)
2 above, may elect to be included either by referendum under
3 Section 7-134 or by the adoption of a resolution or
4 ordinance by its governing body. A copy of such resolution
5 or ordinance duly authenticated and certified by the clerk
6 of the municipality or other appropriate official of its
7 governing body shall constitute the required notice to the
8 board of such action.
9 (b) A municipality that is about to begin participation
10 shall submit to the Board an application to participate, in a
11 form acceptable to the Board, not later than 90 days prior to
12 the proposed effective date of participation. The Board shall
13 act upon the application within 90 days, and if it finds that
14 the application is in conformity with its requirements and the
15 requirements of this Article, participation by the applicant
16 shall commence on a date acceptable to the municipality and
17 specified by the Board, but in no event more than one year from
18 the date of application.
19 (c) A participating municipality which succeeds to the
20 functions of a participating municipality which is dissolved
21 or terminates its existence shall assume and be transferred
22 the net accumulation balance in the municipality reserve and
23 the municipality account receivable balance of the terminated
24 municipality.
25 (d) In the case of a Veterans Assistance Commission whose
26 employees were being treated by the Fund on January 1, 1990 as
SB2802 Enrolled -4- LRB104 17391 RPS 30816 b
1 employees of the county served by the Commission, the Fund may
2 continue to treat the employees of the Veterans Assistance
3 Commission as county employees for the purposes of this
4 Article, unless the Commission becomes a participating
5 instrumentality in accordance with subsection (B) of this
6 Section.
7 (B) Participating instrumentalities.
8 (a) The participating instrumentalities designated in
9 paragraph (b) of this subsection shall be included within and
10 be subject to this Article if:
11 (1) an application to participate, in a form
12 acceptable to the Board and adopted by a two-thirds vote
13 of the governing body, is presented to the Board not later
14 than 90 days prior to the proposed effective date; and
15 (2) the Board finds that the application is in
16 conformity with its requirements, that the applicant has
17 reasonable expectation to continue as a political entity
18 for a period of at least 10 years and has the prospective
19 financial capacity to meet its current and future
20 obligations to the Fund, and that the actuarial soundness
21 of the Fund may be reasonably expected to be unimpaired by
22 approval of participation by the applicant.
23 The Board shall notify the applicant of its findings
24 within 90 days after receiving the application, and if the
25 Board approves the application, participation by the applicant
SB2802 Enrolled -5- LRB104 17391 RPS 30816 b
1 shall commence on the effective date specified by the Board.
2 (b) The following participating instrumentalities, so long
3 as they meet the requirements of Section 7-108 and the area
4 served by them or within their jurisdiction is not located
5 entirely within a municipality having more than one million
6 inhabitants, may be included hereunder:
7 i. Township School District Trustees.
8 ii. Multiple County and Consolidated Health
9 Departments created under Division 5-25 of the Counties
10 Code or its predecessor law.
11 iii. Public Building Commissions created under the
12 Public Building Commission Act, and located in counties of
13 less than 1,000,000 inhabitants.
14 iv. A multitype, consolidated or cooperative library
15 system created under the Illinois Library System Act. Any
16 library system created under the Illinois Library System
17 Act that has one or more predecessors that participated in
18 the Fund may participate in the Fund upon application. The
19 Board shall establish procedures for implementing the
20 transfer of rights and obligations from the predecessor
21 system to the successor system.
22 v. Regional Planning Commissions created under
23 Division 5-14 of the Counties Code or its predecessor law.
24 vi. Local Public Housing Authorities created under the
25 Housing Authorities Act, located in counties of less than
26 1,000,000 inhabitants.
SB2802 Enrolled -6- LRB104 17391 RPS 30816 b
1 vii. Illinois Municipal League.
2 viii. Northeastern Illinois Metropolitan Area Planning
3 Commission.
4 ix. Southwestern Illinois Metropolitan Area Planning
5 Commission.
6 x. Illinois Association of Park Districts.
7 xi. Illinois Supervisors, County Commissioners and
8 Superintendents of Highways Association.
9 xii. Tri-City Regional Port District.
10 xiii. An association, or not-for-profit corporation,
11 membership in which is authorized under Section 85-15 of
12 the Township Code.
13 xiv. Drainage Districts operating under the Illinois
14 Drainage Code.
15 xv. Local mass transit districts created under the
16 Local Mass Transit District Act.
17 xvi. Soil and water conservation districts created
18 under the Soil and Water Conservation Districts Law.
19 xvii. Commissions created to provide water supply or
20 sewer services or both under Division 135, Division 135.5,
21 or Division 136 of Article 11 of the Illinois Municipal
22 Code.
23 xviii. Public water districts created under the Public
24 Water District Act.
25 xix. Veterans Assistance Commissions established under
26 Section 9 of the Military Veterans Assistance Act that
SB2802 Enrolled -7- LRB104 17391 RPS 30816 b
1 serve counties with a population of less than 1,000,000.
2 xx. The governing body of an entity, other than a
3 vocational education cooperative, created under an
4 intergovernmental cooperative agreement established
5 between participating municipalities under the
6 Intergovernmental Cooperation Act, which by the terms of
7 the agreement is the employer of the persons performing
8 services under the agreement under the usual common law
9 rules determining the employer-employee relationship. The
10 governing body of such an intergovernmental cooperative
11 entity established prior to July 1, 1988 may make
12 participation retroactive to the effective date of the
13 agreement and, if so, the effective date of participation
14 shall be the date the required application is filed with
15 the fund. If any such entity is unable to pay the required
16 employer contributions to the fund, then the participating
17 municipalities shall make payment of the required
18 contributions and the payments shall be allocated as
19 provided in the agreement or, if not so provided, equally
20 among them.
21 xxi. The Illinois Municipal Electric Agency.
22 xxii. The Waukegan Port District.
23 xxiii. The Fox Waterway Agency created under the Fox
24 Waterway Agency Act.
25 xxiv. The Illinois Municipal Gas Agency.
26 xxv. The Kaskaskia Regional Port District.
SB2802 Enrolled -8- LRB104 17391 RPS 30816 b
1 xxvi. The Southwestern Illinois Development Authority.
2 xxvii. The Cairo Public Utility Company.
3 xxviii. Except with respect to employees who elect to
4 participate in the State Employees' Retirement System of
5 Illinois under Section 14-104.13 of this Code, the Chicago
6 Metropolitan Agency for Planning created under the
7 Regional Planning Act, provided that, with respect to the
8 benefits payable pursuant to Sections 7-146, 7-150, and
9 7-164 and the requirement that eligibility for such
10 benefits is conditional upon satisfying a minimum period
11 of service or a minimum contribution, any employee of the
12 Chicago Metropolitan Agency for Planning that was
13 immediately prior to such employment an employee of the
14 Chicago Area Transportation Study or the Northeastern
15 Illinois Planning Commission, such employee's service at
16 the Chicago Area Transportation Study or the Northeastern
17 Illinois Planning Commission and contributions to the
18 State Employees' Retirement System of Illinois established
19 under Article 14 and the Illinois Municipal Retirement
20 Fund shall count towards the satisfaction of such
21 requirements.
22 xxix. United Counties Council (formerly the Urban
23 Counties Council), but only if the Council has a ruling
24 from the United States Internal Revenue Service that it is
25 a governmental entity.
26 xxx. The Will County Governmental League, but only if
SB2802 Enrolled -9- LRB104 17391 RPS 30816 b
1 the League has a ruling from the United States Internal
2 Revenue Service that it is a governmental entity.
3 xxxi. The Firefighters' Pension Investment Fund.
4 xxxii. The Police Officers' Pension Investment Fund.
5 xxxiii. The Joliet Regional Port District.
6 (c) The governing boards of special education joint
7 agreements created under Section 10-22.31 of the School Code
8 without designation of an administrative district shall be
9 included within and be subject to this Article as
10 participating instrumentalities when the joint agreement
11 becomes effective. However, the governing board of any such
12 special education joint agreement in effect before September
13 5, 1975 shall not be subject to this Article unless the joint
14 agreement is modified by the school districts to provide that
15 the governing board is subject to this Article, except as
16 otherwise provided by this Section.
17 The governing board of the Special Education District of
18 Lake County shall become subject to this Article as a
19 participating instrumentality on July 1, 1997. Notwithstanding
20 subdivision (a)1 of Section 7-139, on the effective date of
21 participation, employees of the governing board of the Special
22 Education District of Lake County shall receive creditable
23 service for their prior service with that employer, up to a
24 maximum of 5 years, without any employee contribution.
25 Employees may establish creditable service for the remainder
26 of their prior service with that employer, if any, by applying
SB2802 Enrolled - 10 - LRB104 17391 RPS 30816 b
1 in writing and paying an employee contribution in an amount
2 determined by the Fund, based on the employee contribution
3 rates in effect at the time of application for the creditable
4 service and the employee's salary rate on the effective date
5 of participation for that employer, plus interest at the
6 effective rate from the date of the prior service to the date
7 of payment. Application for this creditable service must be
8 made before July 1, 1998; the payment may be made at any time
9 while the employee is still in service. The employer may elect
10 to make the required contribution on behalf of the employee.
11 The governing board of a special education joint agreement
12 created under Section 10-22.31 of the School Code for which an
13 administrative district has been designated, if there are
14 employees of the cooperative educational entity who are not
15 employees of the administrative district, may elect to
16 participate in the Fund and be included within this Article as
17 a participating instrumentality, subject to such application
18 procedures and rules as the Board may prescribe.
19 The Boards of Control of cooperative or joint educational
20 programs or projects created and administered under Section
21 3-15.14 of the School Code, whether or not the Boards act as
22 their own administrative district, shall be included within
23 and be subject to this Article as participating
24 instrumentalities when the agreement establishing the
25 cooperative or joint educational program or project becomes
26 effective.
SB2802 Enrolled - 11 - LRB104 17391 RPS 30816 b
1 The governing board of a special education joint agreement
2 entered into after June 30, 1984 and prior to September 17,
3 1985 which provides for representation on the governing board
4 by less than all the participating districts shall be included
5 within and subject to this Article as a participating
6 instrumentality. Such participation shall be effective as of
7 the date the joint agreement becomes effective.
8 The governing boards of educational service centers
9 established under Section 2-3.62 of the School Code shall be
10 included within and subject to this Article as participating
11 instrumentalities. The governing boards of vocational
12 education cooperative agreements created under the
13 Intergovernmental Cooperation Act and approved by the State
14 Board of Education shall be included within and be subject to
15 this Article as participating instrumentalities. If any such
16 governing boards or boards of control are unable to pay the
17 required employer contributions to the fund, then the school
18 districts served by such boards shall make payment of required
19 contributions as provided in Section 7-172. The payments shall
20 be allocated among the several school districts in proportion
21 to the number of students in average daily attendance for the
22 last full school year for each district in relation to the
23 total number of students in average attendance for such period
24 for all districts served. If such educational service centers,
25 vocational education cooperatives or cooperative or joint
26 educational programs or projects created and administered
SB2802 Enrolled - 12 - LRB104 17391 RPS 30816 b
1 under Section 3-15.14 of the School Code are dissolved, the
2 assets and obligations shall be distributed among the
3 districts in the same proportions unless otherwise provided.
4 The governing board of Paris Cooperative High School shall
5 be included within and be subject to this Article as a
6 participating instrumentality on the effective date of this
7 amendatory Act of the 96th General Assembly. If the governing
8 board of Paris Cooperative High School is unable to pay the
9 required employer contributions to the fund, then the school
10 districts served shall make payment of required contributions
11 as provided in Section 7-172. The payments shall be allocated
12 among the several school districts in proportion to the number
13 of students in average daily attendance for the last full
14 school year for each district in relation to the total number
15 of students in average attendance for such period for all
16 districts served. If Paris Cooperative High School is
17 dissolved, then the assets and obligations shall be
18 distributed among the districts in the same proportions unless
19 otherwise provided.
20 The Philip J. Rock Center and School shall be included
21 within and be subject to this Article as a participating
22 instrumentality on the effective date of this amendatory Act
23 of the 97th General Assembly. The Philip J. Rock Center and
24 School shall certify to the Fund the dates of service of all
25 employees within 90 days of the effective date of this
26 amendatory Act of the 97th General Assembly. The Fund shall
SB2802 Enrolled - 13 - LRB104 17391 RPS 30816 b
1 transfer to the IMRF account of the Philip J. Rock Center and
2 School all creditable service and all employer contributions
3 made on behalf of the employees for service at the Philip J.
4 Rock Center and School that were reported and paid to IMRF by
5 another employer prior to this date. If the Philip J. Rock
6 Center and School is unable to pay the required employer
7 contributions to the Fund, then the amount due will be paid by
8 all employers as defined in item (2) of paragraph (a) of
9 subsection (A) of this Section. The payments shall be
10 allocated among these employers in proportion to the number of
11 students in average daily attendance for the last full school
12 year for each district in relation to the total number of
13 students in average attendance for such period for all
14 districts. If the Philip J. Rock Center and School is
15 dissolved, then its IMRF assets and obligations shall be
16 distributed in the same proportions unless otherwise provided.
17 Financial Oversight Panels established under Article 1H of
18 the School Code shall be included within and be subject to this
19 Article as a participating instrumentality on the effective
20 date of this amendatory Act of the 97th General Assembly. If
21 the Financial Oversight Panel is unable to pay the required
22 employer contributions to the fund, then the school districts
23 served shall make payment of required contributions as
24 provided in Section 7-172. If the Financial Oversight Panel is
25 dissolved, then the assets and obligations shall be
26 distributed to the district served.
SB2802 Enrolled - 14 - LRB104 17391 RPS 30816 b
1 (d) The governing boards of special recreation joint
2 agreements created under Section 8-10b of the Park District
3 Code, operating without designation of an administrative
4 district or an administrative municipality appointed to
5 administer the program operating under the authority of such
6 joint agreement shall be included within and be subject to
7 this Article as participating instrumentalities when the joint
8 agreement becomes effective. However, the governing board of
9 any such special recreation joint agreement in effect before
10 January 1, 1980 shall not be subject to this Article unless the
11 joint agreement is modified, by the districts and
12 municipalities which are parties to the agreement, to provide
13 that the governing board is subject to this Article.
14 If the Board returns any employer and employee
15 contributions to any employer which erroneously submitted such
16 contributions on behalf of a special recreation joint
17 agreement, the Board shall include interest computed from the
18 end of each year to the date of payment, not compounded, at the
19 rate of 7% per annum.
20 (e) Each multi-township assessment district, the board of
21 trustees of which has adopted this Article by ordinance prior
22 to April 1, 1982, shall be a participating instrumentality
23 included within and subject to this Article effective December
24 1, 1981. The contributions required under Section 7-172 shall
25 be included in the budget prepared under and allocated in
26 accordance with Section 2-30 of the Property Tax Code.
SB2802 Enrolled - 15 - LRB104 17391 RPS 30816 b
1 (f) The Illinois Medical District Commission created under
2 the Illinois Medical District Act may be included within and
3 subject to this Article as a participating instrumentality,
4 notwithstanding that the location of the District is entirely
5 within the City of Chicago. To become a participating
6 instrumentality, the Commission must apply to the Board in the
7 manner set forth in paragraph (a) of this subsection (B). If
8 the Board approves the application, under the criteria and
9 procedures set forth in paragraph (a) and any other applicable
10 rules, criteria, and procedures of the Board, participation by
11 the Commission shall commence on the effective date specified
12 by the Board.
13 (C) Prospective participants. Beginning January 1, 1992, each
14 prospective participating municipality or participating
15 instrumentality shall pay to the Fund the cost, as determined
16 by the Board, of a study prepared by the Fund or its actuary,
17 detailing the prospective costs of participation in the Fund
18 to be expected by the municipality or instrumentality.
19 (Source: P.A. 104-284, eff. 8-15-25.)
20 (40 ILCS 5/7-158) (from Ch. 108 1/2, par. 7-158)
21 Sec. 7-158. Surviving spouse annuities; options annuities
22 - Options. In lieu of the surviving spouse annuity an eligible
23 surviving spouse shall have the option of receiving other
24 benefits as follows:
SB2802 Enrolled - 16 - LRB104 17391 RPS 30816 b
1 1. The surviving spouse of a participating employee may
2 elect to receive either a single sum death benefit or a
3 surviving spouse annuity and the $8,000 ($3,000 for those who
4 first retired prior to the effective date of this amendatory
5 Act of the 104th General Assembly) $3,000 death benefit
6 provided in Sections 7-163 and 7-164.
7 2. The surviving spouse of an employee, who has separated
8 from service and would have been entitled to a retirement
9 annuity on date of death, may elect to receive either a single
10 sum death benefit or a surviving spouse annuity and the $8,000
11 ($3,000 for those who first retired prior to the effective
12 date of this amendatory Act of the 104th General Assembly)
13 $3,000 death benefit provided in Sections 7-163 and 7-164.
14 3. If any surviving spouse annuity is payable prior to the
15 earliest age at which the recipient will become eligible for a
16 widows' or widowers' insurance benefit under the Federal
17 Social Security Act, the recipient may elect that the annuity
18 payments from this fund shall exceed those payable after
19 attaining such age by an amount not in excess of the estimated
20 Social Security Benefit, determined as of the effective date
21 of the surviving spouse annuity, provided that in no case
22 shall the total annuity payments made by this fund exceed in
23 actuarial value the annuity which would have been paid had no
24 such election been made.
25 4. The surviving spouse of a participating employee, whose
26 annuity was suspended upon return to employment and who had
SB2802 Enrolled - 17 - LRB104 17391 RPS 30816 b
1 one year or more of service after his return, may apply the
2 additional service credits to a supplemental surviving spouse
3 annuity and receive the $8,000 ($3,000 for those who first
4 retired prior to the effective date of this amendatory Act of
5 the 104th General Assembly) $3,000 death benefit or apply the
6 additional service credits to a single sum death benefit and
7 forego the $8,000 ($3,000 for those who first retired prior to
8 the effective date of this amendatory Act of the 104th General
9 Assembly) $3,000 death benefit payable upon the death of an
10 annuitant.
11 5. The surviving spouse of a participating employee, whose
12 annuity was suspended upon return to employment and who had
13 less than one year of service after his return, shall have the
14 additional service credits applied towards a supplemental
15 surviving spouse annuity and shall receive the $8,000 ($3,000
16 for those who first retired prior to the effective date of this
17 amendatory Act of the 104th General Assembly) $3,000 death
18 benefit.
19 (Source: P.A. 85-941.)
20 (40 ILCS 5/7-164) (from Ch. 108 1/2, par. 7-164)
21 Sec. 7-164. Death benefits; amount benefits - Amount. The
22 amount of the death benefit shall be:
23 1. Upon the death of an employee with at least one year
24 of service occurring while in an employment relationship
25 (including employees drawing disability benefits) with a
SB2802 Enrolled - 18 - LRB104 17391 RPS 30816 b
1 participating municipality or participating
2 instrumentality, an amount equal to the sum of:
3 (a) The employee's normal, additional and
4 survivor credits, including interest credited thereto
5 through the end of the preceding calendar year, but
6 excluding credits and interest thereon allowed for
7 periods of disability.
8 (b) An amount equal to the employee's annual
9 final rate of earnings. An employee who dies as a
10 result of injuries connected with his duties shall be
11 considered to have a year of service for purposes of
12 this benefit.
13 2. Upon the death of an employee with less than 1 year
14 of service occurring while in the service of any
15 participating municipality or instrumentality, an amount
16 equal to the sum of his accumulated normal, additional and
17 survivor credits on the date of death, excluding those
18 credits and interest thereon allowed during periods of
19 disability.
20 3. Upon the death of an employee who has separated
21 from service and was not entitled to a retirement annuity
22 on the date of death, an amount equal to the sum of his
23 accumulated normal, survivor and additional credits on the
24 date of death excluding those credits and interest thereon
25 allowed during periods of disability.
26 4. Upon the death of an employee in an employment
SB2802 Enrolled - 19 - LRB104 17391 RPS 30816 b
1 relationship, or an employee who has service and was
2 entitled to a retirement annuity on the date of death,
3 when a surviving spouse or child annuity is awarded,
4 $8,000 ($3,000 for those who first retired prior to the
5 effective date of this amendatory Act of the 104th General
6 Assembly) $3,000.
7 5. Upon the death of an employee, who has separated
8 from service and was entitled to a retirement annuity on
9 the date of death, and no surviving spouse or child
10 annuity is awarded, $8,000 ($3,000 for those who first
11 retired prior to the effective date of this amendatory Act
12 of the 104th General Assembly) $3,000 plus an amount equal
13 to his accumulated normal, survivor and additional credits
14 on the date of death, excluding those credits and interest
15 earned thereon allowed during periods of disability.
16 6. Upon the death of an employee annuitant, $8,000
17 ($3,000 for those who first retired prior to the effective
18 date of this amendatory Act of the 104th General Assembly)
19 $3,000 and, unless a surviving spouse, child or
20 reversionary annuity is payable, the sum of (i) the excess
21 of the normal and survivor credits, excluding those
22 allowed during periods of disability, which the annuitant
23 had as of the effective date of his annuity over the total
24 annuities paid pursuant to paragraph (a) 1 of Section
25 7-142 to the date of death, plus (ii) the excess of the
26 additional credits, excluding any such credits used to
SB2802 Enrolled - 20 - LRB104 17391 RPS 30816 b
1 create a reversionary annuity, used to provide the annuity
2 granted pursuant to paragraph (a) 2 of Section 7-142 over
3 the total annuity payments made pursuant thereto to the
4 time of death.
5 7. Upon the death of an annuitant receiving a
6 reversionary annuity or of a person designated to receive
7 a reversionary annuity prior to the receipt of such
8 annuity the sum of the additional credits of the person
9 creating the reversionary annuity as of the effective date
10 of his own retirement annuity over the reversionary
11 annuity payments, if any, made prior to the date of death
12 of such annuitant or person designated to receive the
13 reversionary annuity.
14 8. Upon the death of an annuitant receiving a
15 beneficiary annuity which was effective before January 1,
16 1986, the excess of the death benefit which was used to
17 provide the annuity, over the sum of all annuity payments
18 made to the beneficiary. Upon the death of an annuitant
19 receiving a beneficiary annuity effective January 1, 1986
20 or thereafter, the sum of (i) the excess of the normal and
21 survivor credits, excluding those allowed during periods
22 of disability, which the annuitant had as of the effective
23 date of his annuity over the total annuities paid pursuant
24 to paragraph (c) of Section 7-165, to date of death, plus
25 (ii) the excess of the additional credits, excluding any
26 such credits used to create a reversionary annuity, used
SB2802 Enrolled - 21 - LRB104 17391 RPS 30816 b
1 to provide the annuity granted pursuant to paragraph (d)
2 of Section 7-165 over the total annuity payments made
3 pursuant thereto to the time of death.
4 9. Upon the marriage prior to reaching age 55 (except
5 for a surviving spouse who remarries after December 31,
6 2000) or death of a person receiving a surviving spouse
7 annuity, unless a child annuity is payable, the sum of (i)
8 the excess of the normal and survivor credits, excluding
9 those credits and interest thereon allowed during periods
10 of disability, attributable to the employee at the
11 effective date of the annuity or date of death, whichever
12 first occurred, over the total of all annuity payments
13 attributable to paragraph (a) 1 of Section 7-142 made to
14 the employee or surviving spouse plus (ii) the excess of
15 the additional credits, excluding any such credits used to
16 create a reversionary annuity or used to provide the
17 annuity attributable to paragraph (a) 2 of Section 7-142
18 over the total of such payments.
19 10. Upon the marriage, death or attainment of age 18
20 of a child receiving a child annuity, if no other child
21 annuities are payable, the sum of (i) the excess of the
22 normal and survivor credits excluding those credits and
23 interest thereon allowed during periods of disability, of
24 the employee at the effective date of the annuity or date
25 of death, whichever first occurred, over the total annuity
26 payments attributable to paragraph (a) 1 of Section 7-142
SB2802 Enrolled - 22 - LRB104 17391 RPS 30816 b
1 made to the employee, surviving spouse and children plus
2 (ii) the excess of the additional credits, excluding any
3 such credits used to create a reversionary annuity, used
4 to provide the annuity attributable to paragraph (a) 2 of
5 Section 7-142 over the total annuity payments made to the
6 employee, surviving spouse and children, pursuant thereto.
7 11. Upon the death of the participating employee whose
8 annuity was suspended upon his return to employment:
9 a. If a surviving spouse or child annuity is
10 awarded, $8,000 ($3,000 for those who first retired
11 prior to the effective date of this amendatory Act of
12 the 104th General Assembly) $3,000;
13 b. If no surviving spouse or child annuity is
14 awarded and he had less than one year's service upon
15 return, $8,000 ($3,000 for those who first retired
16 prior to the effective date of this amendatory Act of
17 the 104th General Assembly) $3,000 plus the excess of
18 the normal, survivor and additional credits, including
19 interest thereon, but excluding those allowed during a
20 period of disability, at the effective date of the
21 suspended annuity, plus those allowed after his
22 return, over all annuity payments made to the
23 employee;
24 c. If no surviving spouse or child annuity is
25 awarded and he has one year or more of service upon
26 return, the higher of (a) the payment under
SB2802 Enrolled - 23 - LRB104 17391 RPS 30816 b
1 subparagraph b of this paragraph or (b) the payment
2 under paragraph 1 of this Section, taking into
3 consideration only the service and credits allowed
4 after his return, plus the excess of the normal,
5 survivor and additional credits, including interest
6 thereon, excluding those allowed during periods of
7 disability, at the effective date of his suspended
8 annuity over all annuity payments made to the
9 employee.
10 12. The $8,000 ($3,000 for those who first retired prior
11 to the effective date of this amendatory Act of the 104th
12 General Assembly) $3,000 death benefit provided in paragraphs
13 4 and 6 shall not be payable to beneficiaries of persons who
14 terminated service prior to September 8, 1971, unless the
15 payment or agreement for payment provided by Section 7-144.2
16 of this Article is made prior to the date of death.
17 13. The increase in certain death benefits from $1,000 to
18 $3,000 provided by this amendatory Act of 1987 shall apply
19 only to deaths occurring on or after January 1, 1988.
20 The increase in certain death benefits from $3,000 to
21 $8,000 provided by this amendatory Act of the 104th General
22 Assembly shall apply only to deaths occurring on or after
23 January 1, 2027.
24 (Source: P.A. 91-887, eff. 7-6-00.)
25 (40 ILCS 5/7-172) (from Ch. 108 1/2, par. 7-172)
SB2802 Enrolled - 24 - LRB104 17391 RPS 30816 b
1 Sec. 7-172. Contributions by participating municipalities
2 and participating instrumentalities.
3 (a) Each participating municipality and each participating
4 instrumentality shall make payment to the fund as follows:
5 1. municipality contributions in an amount determined
6 by applying the municipality contribution rate to each
7 payment of earnings paid to each of its participating
8 employees;
9 2. an amount equal to the employee contributions
10 provided by paragraph (a) of Section 7-173, whether or not
11 the employee contributions are withheld as permitted by
12 that Section;
13 3. all accounts receivable, together with interest
14 charged thereon, as provided in Section 7-209, and any
15 amounts due under subsection (a-5) of Section 7-144;
16 4. if it has no participating employees with current
17 earnings, an amount payable which, over a closed period of
18 20 years for participating municipalities and 10 years for
19 participating instrumentalities, will amortize, at the
20 effective rate for that year, any unfunded obligation. The
21 unfunded obligation shall be computed as provided in
22 paragraph 2 of subsection (b);
23 5. if it has fewer than 7 participating employees or a
24 negative balance in its municipality reserve, the greater
25 of (A) an amount payable that, over a period of 20 years,
26 will amortize at the effective rate for that year any
SB2802 Enrolled - 25 - LRB104 17391 RPS 30816 b
1 unfunded obligation, computed as provided in paragraph 2
2 of subsection (b) or (B) the amount required by paragraph
3 1 of this subsection (a).
4 (b) A separate municipality contribution rate shall be
5 determined for each calendar year for all participating
6 municipalities together with all instrumentalities thereof.
7 The municipality contribution rate shall be determined for
8 participating instrumentalities as if they were participating
9 municipalities. The municipality contribution rate shall be
10 the sum of the following percentages:
11 1. The percentage of earnings of all the participating
12 employees of all participating municipalities and
13 participating instrumentalities which, if paid over the
14 entire period of their service, will be sufficient when
15 combined with all employee contributions available for the
16 payment of benefits, to provide all annuities for
17 participating employees, and the $8,000 ($3,000 for those
18 who first retired prior to the effective date of this
19 amendatory Act of the 104th General Assembly) $3,000 death
20 benefit payable under Sections 7-158 and 7-164, such
21 percentage to be known as the normal cost rate.
22 2. The percentage of earnings of the participating
23 employees of each participating municipality and
24 participating instrumentalities necessary to adjust for
25 the difference between the present value of all benefits,
26 excluding temporary and total and permanent disability and
SB2802 Enrolled - 26 - LRB104 17391 RPS 30816 b
1 death benefits, to be provided for its participating
2 employees and the sum of its accumulated municipality
3 contributions and the accumulated employee contributions
4 and the present value of expected future employee and
5 municipality contributions pursuant to subparagraph 1 of
6 this paragraph (b). This adjustment shall be spread over a
7 period determined by the Board, not to exceed 30 years for
8 participating municipalities or 10 years for participating
9 instrumentalities.
10 3. The percentage of earnings of the participating
11 employees of all municipalities and participating
12 instrumentalities necessary to provide the present value
13 of all temporary and total and permanent disability
14 benefits granted during the most recent year for which
15 information is available.
16 4. The percentage of earnings of the participating
17 employees of all participating municipalities and
18 participating instrumentalities necessary to provide the
19 present value of the net single sum death benefits
20 expected to become payable from the reserve established
21 under Section 7-206 during the year for which this rate is
22 fixed.
23 5. The percentage of earnings necessary to meet any
24 deficiency arising in the Terminated Municipality Reserve.
25 (c) A separate municipality contribution rate shall be
26 computed for each participating municipality or participating
SB2802 Enrolled - 27 - LRB104 17391 RPS 30816 b
1 instrumentality for its sheriff's law enforcement employees.
2 A separate municipality contribution rate shall be
3 computed for the sheriff's law enforcement employees of each
4 forest preserve district that elects to have such employees.
5 For the period from January 1, 1986 to December 31, 1986, such
6 rate shall be the forest preserve district's regular rate plus
7 2%.
8 In the event that the Board determines that there is an
9 actuarial deficiency in the account of any municipality with
10 respect to a person who has elected to participate in the Fund
11 under Section 3-109.1 of this Code, the Board may adjust the
12 municipality's contribution rate so as to make up that
13 deficiency over such reasonable period of time as the Board
14 may determine.
15 (d) The Board may establish a separate municipality
16 contribution rate for all employees who are program
17 participants employed under the federal Comprehensive
18 Employment Training Act by all of the participating
19 municipalities and instrumentalities. The Board may also
20 provide that, in lieu of a separate municipality rate for
21 these employees, a portion of the municipality contributions
22 for such program participants shall be refunded or an extra
23 charge assessed so that the amount of municipality
24 contributions retained or received by the fund for all CETA
25 program participants shall be an amount equal to that which
26 would be provided by the separate municipality contribution
SB2802 Enrolled - 28 - LRB104 17391 RPS 30816 b
1 rate for all such program participants. Refunds shall be made
2 to prime sponsors of programs upon submission of a claim
3 therefor and extra charges shall be assessed to participating
4 municipalities and instrumentalities. In establishing the
5 municipality contribution rate as provided in paragraph (b) of
6 this Section, the use of a separate municipality contribution
7 rate for program participants or the refund of a portion of the
8 municipality contributions, as the case may be, may be
9 considered.
10 (e) Computations of municipality contribution rates for
11 the following calendar year shall be made prior to the
12 beginning of each year, from the information available at the
13 time the computations are made, and on the assumption that the
14 employees in each participating municipality or participating
15 instrumentality at such time will continue in service until
16 the end of such calendar year at their respective rates of
17 earnings at such time.
18 (f) Any municipality which is the recipient of State
19 allocations representing that municipality's contributions for
20 retirement annuity purposes on behalf of its employees as
21 provided in Section 12-21.16 of the Illinois Public Aid Code
22 shall pay the allocations so received to the Board for such
23 purpose. Estimates of State allocations to be received during
24 any taxable year shall be considered in the determination of
25 the municipality's tax rate for that year under Section 7-171.
26 If a special tax is levied under Section 7-171, none of the
SB2802 Enrolled - 29 - LRB104 17391 RPS 30816 b
1 proceeds may be used to reimburse the municipality for the
2 amount of State allocations received and paid to the Board.
3 Any multiple-county or consolidated health department which
4 receives contributions from a county under Section 11.2 of "An
5 Act in relation to establishment and maintenance of county and
6 multiple-county health departments", approved July 9, 1943, as
7 amended, or distributions under Section 3 of the Department of
8 Public Health Act, shall use these only for municipality
9 contributions by the health department.
10 (g) Municipality contributions for the several purposes
11 specified shall, for township treasurers and employees in the
12 offices of the township treasurers who meet the qualifying
13 conditions for coverage hereunder, be allocated among the
14 several school districts and parts of school districts
15 serviced by such treasurers and employees in the proportion
16 which the amount of school funds of each district or part of a
17 district handled by the treasurer bears to the total amount of
18 all school funds handled by the treasurer.
19 From the funds subject to allocation among districts and
20 parts of districts pursuant to the School Code, the trustees
21 shall withhold the proportionate share of the liability for
22 municipality contributions imposed upon such districts by this
23 Section, in respect to such township treasurers and employees
24 and remit the same to the Board.
25 The municipality contribution rate for an educational
26 service center shall initially be the same rate for each year
SB2802 Enrolled - 30 - LRB104 17391 RPS 30816 b
1 as the regional office of education or school district which
2 serves as its administrative agent. When actuarial data become
3 available, a separate rate shall be established as provided in
4 subparagraph (i) of this Section.
5 The municipality contribution rate for a public agency,
6 other than a vocational education cooperative, formed under
7 the Intergovernmental Cooperation Act shall initially be the
8 average rate for the municipalities which are parties to the
9 intergovernmental agreement. When actuarial data become
10 available, a separate rate shall be established as provided in
11 subparagraph (i) of this Section.
12 (h) Each participating municipality and participating
13 instrumentality shall make the contributions in the amounts
14 provided in this Section in the manner prescribed from time to
15 time by the Board and all such contributions shall be
16 obligations of the respective participating municipalities and
17 participating instrumentalities to this fund. The failure to
18 deduct any employee contributions shall not relieve the
19 participating municipality or participating instrumentality of
20 its obligation to this fund. Delinquent payments of
21 contributions due under this Section may, with interest, be
22 recovered by civil action against the participating
23 municipalities or participating instrumentalities.
24 Municipality contributions, other than the amount necessary
25 for employee contributions, for periods of service by
26 employees from whose earnings no deductions were made for
SB2802 Enrolled - 31 - LRB104 17391 RPS 30816 b
1 employee contributions to the fund, may be charged to the
2 municipality reserve for the municipality or participating
3 instrumentality.
4 (i) Contributions by participating instrumentalities shall
5 be determined as provided herein except that the percentage
6 derived under subparagraph 2 of paragraph (b) of this Section,
7 and the amount payable under subparagraph 4 of paragraph (a)
8 of this Section, shall be based on an amortization period of 10
9 years.
10 (j) Notwithstanding the other provisions of this Section,
11 the additional unfunded liability accruing as a result of
12 Public Act 94-712 shall be amortized over a period of 30 years
13 beginning on January 1 of the second calendar year following
14 the calendar year in which Public Act 94-712 takes effect,
15 except that the employer may provide for a longer amortization
16 period by adopting a resolution or ordinance specifying a
17 35-year or 40-year period and submitting a certified copy of
18 the ordinance or resolution to the fund no later than June 1 of
19 the calendar year following the calendar year in which Public
20 Act 94-712 takes effect.
21 (k) If the amount of a participating employee's reported
22 earnings for any of the 12-month periods used to determine the
23 final rate of earnings exceeds the employee's 12-month
24 reported earnings with the same employer for the previous year
25 by the greater of 6% or 1.5 times the annual increase in the
26 Consumer Price Index-U, as established by the United States
SB2802 Enrolled - 32 - LRB104 17391 RPS 30816 b
1 Department of Labor for the preceding September, the
2 participating municipality or participating instrumentality
3 that paid those earnings shall pay to the Fund, in addition to
4 any other contributions required under this Article, the
5 present value of the increase in the pension resulting from
6 the portion of the increase in reported earnings that is in
7 excess of the greater of 6% or 1.5 times the annual increase in
8 the Consumer Price Index-U, as determined by the Fund. This
9 present value shall be computed on the basis of the actuarial
10 assumptions and tables used in the most recent actuarial
11 valuation of the Fund that is available at the time of the
12 computation.
13 Whenever it determines that a payment is or may be
14 required under this subsection (k), the fund shall calculate
15 the amount of the payment and bill the participating
16 municipality or participating instrumentality for that amount.
17 The bill shall specify the calculations used to determine the
18 amount due. If the participating municipality or participating
19 instrumentality disputes the amount of the bill, it may,
20 within 30 days after receipt of the bill, apply to the fund in
21 writing for a recalculation. The application must specify in
22 detail the grounds of the dispute. Upon receiving a timely
23 application for recalculation, the fund shall review the
24 application and, if appropriate, recalculate the amount due.
25 The participating municipality and participating
26 instrumentality contributions required under this subsection
SB2802 Enrolled - 33 - LRB104 17391 RPS 30816 b
1 (k) may be paid in the form of a lump sum within 90 days after
2 receipt of the bill. If the participating municipality and
3 participating instrumentality contributions are not paid
4 within 90 days after receipt of the bill, then interest will be
5 charged at a rate equal to the fund's annual actuarially
6 assumed rate of return on investment compounded annually from
7 the 91st day after receipt of the bill. Payments must be
8 concluded within 7 years after receipt of the bill by the
9 participating municipality or participating instrumentality.
10 When assessing payment for any amount due under this
11 subsection (k), the fund shall exclude earnings increases
12 resulting from overload or overtime earnings.
13 When assessing payment for any amount due under this
14 subsection (k), the fund shall exclude earnings increases
15 resulting from payments for unused vacation time, but only for
16 payments for unused vacation time made in the final 3 months of
17 the final rate of earnings period.
18 When assessing payment for any amount due under this
19 subsection (k), the fund shall also exclude earnings increases
20 attributable to standard employment promotions resulting in
21 increased responsibility and workload.
22 When assessing payment for any amount due under this
23 subsection (k), the fund shall exclude reportable earnings
24 increases resulting from periods where the member was paid
25 through workers' compensation.
26 This subsection (k) does not apply to earnings increases
SB2802 Enrolled - 34 - LRB104 17391 RPS 30816 b
1 due to amounts paid as required by federal or State law or
2 court mandate or to earnings increases due to the
3 participating employee returning to the regular number of
4 hours worked after having a temporary reduction in the number
5 of hours worked.
6 This subsection (k) does not apply to earnings increases
7 paid to individuals under contracts or collective bargaining
8 agreements entered into, amended, or renewed before January 1,
9 2012 (the effective date of Public Act 97-609), earnings
10 increases paid to members who are 10 years or more from
11 retirement eligibility, or earnings increases resulting from
12 an increase in the number of hours required to be worked.
13 When assessing payment for any amount due under this
14 subsection (k), the fund shall also exclude earnings
15 attributable to personnel policies adopted before January 1,
16 2012 (the effective date of Public Act 97-609) as long as those
17 policies are not applicable to employees who begin service on
18 or after January 1, 2012 (the effective date of Public Act
19 97-609).
20 The change made to this Section by Public Act 100-139 is a
21 clarification of existing law and is intended to be
22 retroactive to January 1, 2012 (the effective date of Public
23 Act 97-609).
24 (Source: P.A. 103-464, eff. 8-4-23; 104-284, eff. 8-15-25.)
25 (40 ILCS 5/7-205) (from Ch. 108 1/2, par. 7-205)
SB2802 Enrolled - 35 - LRB104 17391 RPS 30816 b
1 Sec. 7-205. Reserves for annuities. Appropriate reserves
2 shall be created for payment of all annuities granted under
3 this Article at the time such annuities are granted and in
4 amounts determined to be necessary under actuarial tables
5 adopted by the Board upon recommendation of the actuary of the
6 fund. All annuities payable shall be charged to the annuity
7 reserve.
8 1. Amounts credited to annuity reserves shall be derived
9 by transfer of all the employee credits from the appropriate
10 employee reserves and by charges to the municipality reserve
11 of those municipalities in which the retiring employee has
12 accumulated service. If a retiring employee has accumulated
13 service in more than one participating municipality or
14 participating instrumentality, the municipality charges for
15 non-concurrent service shall be calculated as follows:
16 (A) for purposes of calculating the annuity reserve,
17 an annuity will be calculated based on service and
18 adjusted earnings with each employer (without regard to
19 the vesting requirement contained in subsection (a) of
20 Section 7-142); and
21 (B) the difference between the municipality charges
22 for the actual annuity granted and the aggregation of the
23 municipality charges based upon the ratio of each from
24 those calculations to the aggregated total from paragraph
25 (A) of this item 1.
26 Aggregate municipality charges for concurrent service
SB2802 Enrolled - 36 - LRB104 17391 RPS 30816 b
1 shall be prorated based on the employee's earnings. The
2 municipality charges for retirement annuities calculated under
3 subparagraph a. of paragraph 1. of subsection (a) of Section
4 7-142 shall be prorated based on actual contributions.
5 2. Supplemental annuities shall be handled as a separate
6 annuity and amounts to be credited to the annuity reserve
7 therefor shall be derived in the same manner as a regular
8 annuity.
9 3. When a retirement annuity is granted to an employee
10 with a spouse eligible for a surviving spouse annuity, there
11 shall be credited to the annuity reserve an amount to fund the
12 cost of both the retirement and surviving spouse annuity as a
13 joint and survivors annuity.
14 4. Beginning January 1, 1989, when a retirement annuity is
15 awarded, an amount equal to the present value of the $8,000
16 ($3,000 for those who first retired prior to the effective
17 date of this amendatory Act of the 104th General Assembly)
18 $3,000 death benefit payable upon the death of the annuitant
19 shall be transferred to the annuity reserve from the
20 appropriate municipality reserves in the same manner as the
21 transfer for annuities.
22 5. All annuity reserves shall be revalued annually as of
23 December 31. Beginning as of December 31, 1973, adjustment
24 required therein by such revaluation shall be charged or
25 credited to the earnings and experience variation reserve.
26 6. There shall be credited to the annuity reserve all of
SB2802 Enrolled - 37 - LRB104 17391 RPS 30816 b
1 the payments made by annuitants under Section 7-144.2, plus an
2 additional amount from the earnings and experience variation
3 reserve to fund the cost of the incremental annuities granted
4 to annuitants making these payments.
5 7. As of December 31, 1972, the excess in the annuity
6 reserve shall be transferred to the municipality reserves. An
7 amount equal to the deficiency in the reserve of participating
8 municipalities and participating instrumentalities which have
9 no participating employees shall be allocated to their
10 reserves. The remainder shall be allocated in amounts
11 proportionate to the present value, as of January 1, 1972, of
12 annuities of annuitants of the remaining participating
13 municipalities and participating instrumentalities.
14 (Source: P.A. 97-319, eff. 1-1-12; 97-609, eff. 1-1-12;
15 97-813, eff. 7-13-12.)
16 (40 ILCS 5/7-206) (from Ch. 108 1/2, par. 7-206)
17 Sec. 7-206. Death Reserve. All death benefit payments
18 shall be charged to the Death Reserve, other than the $8,000
19 ($3,000 for those who first retired prior to the effective
20 date of this amendatory Act of the 104th General Assembly)
21 $3,000 death benefits paid after December 31, 1988 upon the
22 death of an annuitant. All contributions for death purposes
23 under Section 7-172(b)4 shall be credited to the same reserve.
24 Whenever the balance in such reserve at the close of a year
25 exceeds 100% of the average annual charges to this account
SB2802 Enrolled - 38 - LRB104 17391 RPS 30816 b
1 during the 3 preceding calendar years, the basic actuarial
2 assumptions upon which municipality contribution rates for
3 these purposes are based, shall be reviewed and revised in
4 such manner as is deemed necessary to reduce such balance.
5 (Source: P.A. 89-136, eff. 7-14-95.)
6 Section 90. The State Mandates Act is amended by adding
7 Section 8.50 as follows:
8 (30 ILCS 805/8.50 new)
9 Sec. 8.50. Exempt mandate. Notwithstanding Sections 6 and
10 8 of this Act, no reimbursement by the State is required for
11 the implementation of any mandate created by this amendatory
12 Act of the 104th General Assembly.
13 Section 99. Effective date. This Act takes effect upon
14 becoming law, except that the changes to Sections 7-158,
15 7-164, 7-172, 7-205, and 7-206 of the Illinois Pension Code
16 take effect January 1, 2027.Every fact on this page links to its source, starting with the official bill record.