HB 166 — PUBLIC EMPLOYEE BENEFITS-TECH

HB0166 EngrossedEnrolled LRB100 02316 RPS 12321 b AN ACT concerning public employee benefits.

The HB0166 EngrossedEnrolled - 2 - LRB100 02316 RPS 12321 b changes made to this Section by Public Act 98-596 are a clarification of existing law and are intended to be retroactive to January 1, 2011 (the effective date of Public Act 96-889), notwithstanding the provisions of Section 1-103.1 of this Code.

This Section does not apply to a person who first becomes a member or participant of an affected pension fund on or after 6 months after the resolution or ordinance date, as defined in Section 1-162, unless that person elects under subsection (c) of Section 1-162 to receive the benefits provided under this Section and the applicable provisions of the Article under HB0166 EngrossedEnrolled - 3 - LRB100 02316 RPS 12321 b which he or she is a member or participant.

(b-5) Beginning on January 1, 2011, for all purposes under this Code (including without limitation the calculation of HB0166 EngrossedEnrolled - 4 - LRB100 02316 RPS 12321 b benefits and employee contributions), the annual earnings, salary, or wages (based on the plan year) of a member or participant to whom this Section applies shall not exceed $106,800;

A member or participant who has attained age 62 (beginning January 1, 2015, age 60 with respect to service under Article HB0166 EngrossedEnrolled - 5 - LRB100 02316 RPS 12321 b 12 of this Code that is subject to this Section) and has at least 10 years of service credit and is otherwise eligible under the requirements of the applicable Article may elect to receive the lower retirement annuity provided in subsection (d) of this Section.

(d-5) The retirement annuity payable under Article 8 or Article 11 to an eligible of a person subject to subsection HB0166 EngrossedEnrolled - 6 - LRB100 02316 RPS 12321 b (c-5) of this Section who first becomes a member or a participant under Article 8 or Article 11 of this Code on or after the effective date of this amendatory Act of the 100th General Assembly who is retiring at age 60 with at least 10 years of service credit under Article 8 or Article 11 shall be reduced by one-half of 1% for each full month that the member's age is under age 65.

or (ii) to not agree to item (i) of this subsection (d-10), in which case the member or participant shall continue to be subject to the retirement age provisions in subsections (c) and (d) of this Section and the employee contributions for age and service annuity as provided in subsection (a) of Section 8-174 of this Code (for service HB0166 EngrossedEnrolled - 7 - LRB100 02316 RPS 12321 b under Article 8) or subsection (a) of Section 11-170 of this Code (for service under Article 11).

Each annual HB0166 EngrossedEnrolled - 8 - LRB100 02316 RPS 12321 b increase shall be calculated at 3% or one-half the annual unadjusted percentage increase (but not less than zero) in the consumer price index-u for the 12 months ending with the September preceding each November 1, whichever is less, of the originally granted retirement annuity.

A child's annuity of an otherwise eligible child shall be in the HB0166 EngrossedEnrolled - 9 - LRB100 02316 RPS 12321 b amount prescribed under each Article if applicable.

A person who meets the requirements of this Section is entitled to an annuity calculated under the provisions of Section 14-110, in lieu of the regular or minimum retirement annuity, only if the person has withdrawn from service with not less than 20 years of HB0166 EngrossedEnrolled - 10 - LRB100 02316 RPS 12321 b eligible creditable service and has attained age 60, regardless of whether the attainment of age 60 occurs while the person is still in service.

A person receiving an annuity or HB0166 EngrossedEnrolled - 11 - LRB100 02316 RPS 12321 b retirement pension under this Code shall notify the pension fund or retirement system from which he or she is receiving an annuity or retirement pension, as well as his or her contractual employer, of his or her retirement status before accepting contractual employment.

and beginning January 1, 1972, 6-1/2% of each payment of the salary of each present employee and future entrant, except as provided in subsection (a-5) and (a-10), HB0166 EngrossedEnrolled - 12 - LRB100 02316 RPS 12321 b shall be contributed to the fund as a deduction from salary for age and service annuity.

or (ii) the aggregate employee HB0166 EngrossedEnrolled - 13 - LRB100 02316 RPS 12321 b contribution consisting of 9.5% of each payment of salary combined with the employee contributions provided for in subsection (b) of Section 8-137 and 8-182 of this Article.

or (B) the HB0166 EngrossedEnrolled - 14 - LRB100 02316 RPS 12321 b aggregate employee contribution consisting of 9.5% of each payment of salary combined with the employee contributions provided for in subsection (b) of Section 8-137 and 8-182 of this Article.

The fund shall provide information that the actuary requests in order to calculate the applicable normal HB0166 EngrossedEnrolled - 15 - LRB100 02316 RPS 12321 b cost.

For the one-year period beginning Beginning with the first pay period in January of each year on or after the date when the funded ratio of the fund as determined in the annual HB0166 EngrossedEnrolled - 16 - LRB100 02316 RPS 12321 b actuarial valuation is first determined to have reached the 90% funding goal, and each subsequent one-year pay period thereafter for as long as the fund maintains a funding ratio of 75% or more, employee contributions for age and service annuity for each employee subject to this subsection (a-10) shall be 5.5% of each payment of salary.

If contributions are reduced to less than the aggregate HB0166 EngrossedEnrolled - 17 - LRB100 02316 RPS 12321 b employee contribution described in item (ii) or item (B) of this subsection (a-10) due to application of the normal cost criterion, the employee contribution amount shall be consistent for from July 1 of the fiscal year through June 30 of that fiscal year.

Beginning July 6, 2017, the Fund shall credit sums equal to 6% of each payment of such salary for annuity HB0166 EngrossedEnrolled - 18 - LRB100 02316 RPS 12321 b purposes.

(a-5) Except as provided in subsection (a-10), for an HB0166 EngrossedEnrolled - 19 - LRB100 02316 RPS 12321 b employee who on or after January 1, 2011 and prior to the effective date of this amendatory Act of the 100th General Assembly first became a member or participant under this Article and made the election under item (i) of subsection (d-10) of Section 1-160:

HB0166 EngrossedEnrolled - 20 - LRB100 02316 RPS 12321 b For the one-year period beginning Beginning with the first pay period in January of each year on or after the date when the funded ratio of the fund as determined in the annual actuarial valuation is first determined to have reached the 90% funding goal, and each subsequent one-year pay period thereafter for as long as the fund maintains a funding ratio of 75% or more, employee contributions for age and service annuity for those employees who made the election under item (i) of subsection (d-10) of Section 1-160 shall be 5.5% of each payment of salary.

or (B) the aggregate employee contribution consisting of 9.5% of each payment of salary combined with the employee contributions provided for in subsection (b) of Section 11-134.1 and 11-174 HB0166 EngrossedEnrolled - 21 - LRB100 02316 RPS 12321 b of this Article.

(a-10) For each employee subject to subsection (c-5) of Section 1-160 who on or after the effective date of this HB0166 EngrossedEnrolled - 22 - LRB100 02316 RPS 12321 b amendatory Act of the 100th General Assembly first becomes a member or participant under this Article, 9.5% of each payment of salary shall be contributed to the fund as a deduction from salary for age and service annuity.

For the one-year period beginning Beginning with the first pay period in January of each year on or after the date when the funded ratio of the fund as determined in the annual actuarial valuation is first determined to have reached the 90% funding goal, and each subsequent one-year pay period thereafter for as long as the fund maintains a funding ratio of HB0166 EngrossedEnrolled - 23 - LRB100 02316 RPS 12321 b 75% or more, employee contributions for age and service annuity for each employee subject to this subsection (a-10) shall be 5.5% of each payment of salary.

If contributions are reduced to less than the aggregate employee contribution described in item (ii) or item (B) of this subsection (a-10) due to application of the normal cost criterion, the employee contribution amount shall be HB0166 EngrossedEnrolled - 24 - LRB100 02316 RPS 12321 b consistent for from July 1 of the fiscal year through June 30 of that fiscal year.

(c) Each employee contribution made prior to the date age and service annuity for an employee is fixed and each corresponding city contribution shall be allocated to the HB0166 EngrossedEnrolled - 25 - LRB100 02316 RPS 12321 b account of and credited to the employee for whose benefit it is made.

The board may also, in the case of any disability beneficiary or annuitant for whom no estate guardian has been appointed and who is confined in a publicly owned and operated mental HB0166 EngrossedEnrolled - 26 - LRB100 02316 RPS 12321 b institution, pay such disability benefit or annuity due such person to the superintendent or other head of such institution or hospital for deposit to such person's trust fund account maintained for him or her by such institution or hospital, if by law such trust fund accounts are authorized or recognized.