Bill Text: IL HB1471 | 2011-2012 | 97th General Assembly | Chaptered
Bill Title: Amends the IMRF Article of the Illinois Pension Code. Makes changes in the way the annuity reserve is calculated if a retiring employee has accumulated service in more than one participating municipality or participating instrumentality. Amends the State Mandates Act to require implementation without reimbursement. Effective January 1, 2012.
Spectrum: Slight Partisan Bill (Democrat 6-2)
Status: (Passed) 2011-08-12 - Public Act . . . . . . . . . 97-0319 [HB1471 Detail]
Download: Illinois-2011-HB1471-Chaptered.html
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| Public Act 097-0319 | ||||
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AN ACT concerning public employee benefits.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Illinois Pension Code is amended by changing | ||||
Section 7-205 as follows:
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(40 ILCS 5/7-205) (from Ch. 108 1/2, par. 7-205)
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Sec. 7-205. Reserves for annuities. Appropriate reserves | ||||
shall be created
for payment of all annuities
granted under | ||||
this Article at the time such annuities are granted and in
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amounts determined to be necessary under actuarial tables | ||||
adopted by the
Board upon recommendation of the actuary of the | ||||
fund. All annuities payable
shall be charged to the annuity | ||||
reserve.
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1. Amounts credited to annuity reserves shall be derived by | ||||
transfer of
all the employee credits from the appropriate | ||||
employee reserves and by
charges to the municipality reserve of | ||||
those municipalities in which the
retiring employee has | ||||
accumulated service. If a retiring employee has
accumulated | ||||
service in more than one participating municipality or
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participating instrumentality, the aggregate municipality | ||||
charges for non-concurrent service shall be calculated as | ||||
follows: | ||||
(A) for purposes of calculating the annuity reserve, an | ||||
annuity will be calculated based on service and adjusted | ||
earnings with each employer (without regard to the vesting | ||
requirement contained in subsection (a) of Section 7-142); | ||
and | ||
(B) the difference between the municipality charges | ||
for the actual annuity granted and the aggregation of the | ||
municipality charges based upon the ratio of each from | ||
those calculations to the aggregated total from paragraph | ||
(A) of this item 1. | ||
Aggregate municipality charges for concurrent service | ||
shall be prorated based on the employee's earnings. The | ||
municipality charges for retirement annuities calculated under | ||
subparagraph a. of subparagraph 1. of subsection (a) of Section | ||
7-142 shall be prorated based on actual contributions
prorated | ||
on a basis of the employee's earnings in case of concurrent
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service and creditable service in other cases.
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2. Supplemental annuities shall be handled as a separate | ||
annuity and
amounts to be credited to the annuity reserve | ||
therefor shall be derived in
the same manner as a regular | ||
annuity.
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3. When a retirement annuity is granted to an employee with | ||
a spouse
eligible for a surviving spouse annuity, there shall | ||
be credited to the
annuity reserve an amount to fund the cost | ||
of both the retirement and
surviving spouse annuity as a joint | ||
and survivors annuity.
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4. Beginning January 1, 1989, when a retirement annuity is | ||
awarded, an
amount equal to the present
value of the $3,000 | ||
death benefit payable upon the death of the annuitant
shall be | ||
transferred to the annuity reserve from the appropriate
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municipality reserves in the same manner as the transfer for | ||
annuities.
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5. All annuity reserves shall be revalued annually as of | ||
December 31.
Beginning as of December 31, 1973, adjustment | ||
required therein by such
revaluation shall be charged or | ||
credited to the earnings and experience
variation reserve.
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6. There shall be credited to the annuity reserve all of | ||
the
payments
made by annuitants under Section 7-144.2, plus an
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additional amount from the
earnings and experience variation | ||
reserve to fund the cost of the
incremental annuities granted | ||
to annuitants making these payments.
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7. As of December 31, 1972, the excess in the annuity | ||
reserve shall be
transferred to the municipality reserves. An | ||
amount equal to the deficiency
in the reserve of participating | ||
municipalities and participating
instrumentalities which have | ||
no participating employees shall be allocated
to their | ||
reserves. The remainder shall be allocated in amounts
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proportionate to the present value, as of January 1, 1972, of | ||
annuities of
annuitants of the remaining participating | ||
municipalities and participating
instrumentalities.
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(Source: P.A. 89-136, eff. 7-14-95.)
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Section 90. The State Mandates Act is amended by adding | ||
Section 8.35 as follows:
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(30 ILCS 805/8.35 new) | ||
Sec. 8.35. Exempt mandate. Notwithstanding Sections 6 and 8 | ||
of this Act, no reimbursement by the State is required for the | ||
implementation of any mandate created by this amendatory Act of | ||
the 97th General Assembly.
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Section 99. Effective date. This Act takes effect January | ||
1, 2012.
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