SB2802: PEN CD-IMRF-DEATH BENEFIT

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 a