HB 45 — PEN CD-IMRF-EARLY RETMT-ELECTD

093_HB0045HB0045 LRB09300004efg00004bEngrossed LRB093 00004 efg 00004 b AN ACT in relation to public employee benefits.

(7) A unit of local government adopting a program of early retirement incentives under this Section is also encouraged to replace as few of the participating employees as possible and to hire replacement employees -2- LRB09300004efg00004b for salaries totaling no more than 80% of the total salaries formerly HB0045 Engrossed - 2 - LRB093 00004 efg 00004 b paid to the employees who participate in the early retirement program.

Subject to the limitation in subsection (h), an employer may adopt a resolution or ordinance providing a program of early retirement incentives under this -3- LRB09300004efg00004b Section at any time.

A RESOLUTION (ORDINANCE) ADOPTING AN EARLY HB0045 Engrossed - 3 - LRB093 00004 efg 00004 b RETIREMENT INCENTIVE PROGRAM FOR EMPLOYEES IN THE ILLINOIS MUNICIPAL RETIREMENT FUND WHEREAS, Section 7-141.1 of the Illinois Pension Code provides that a participating employer may elect to adopt an early retirement incentive program offered by the Illinois Municipal Retirement Fund by adopting a resolution or ordinance;

(2) In order to help achieve a true cost savings, a person who retires under the early retirement incentive program shall lose those incentives if he or she later accepts employment with any IMRF employer in a position for -4- LRB09300004efg00004b which participation in IMRF is required or is elected by the employee.

(3) In order to utilize an early retirement incentive as a budgeting tool, the (name of participating employer) will use its best efforts either to limit the number of employees who replace the employees who retire under the early retirement program or to limit the salaries paid to the employees who replace the employees who retire under the early retirement HB0045 Engrossed - 4 - LRB093 00004 efg 00004 b program.

(4) The effective date of each employee'semployee’s retirement under this early retirement program shall be set by (name of employer) and shall be no earlier than the effective date of the program and no later than one year after that effective date;

SEAL -5- LRB09300004efg00004b (Signature of clerk or secretary) (c) To be eligible for the benefits provided under an early retirement incentive program adopted under this Section, a member must:

(1) be a participating employee of this Fund who, on the effective date of the program, (i) is in active payroll status as an employee of a participating employer that has filed the required ordinance or resolution with the Board, (ii) is on layoff status from such a position with a right HB0045 Engrossed - 5 - LRB093 00004 efg 00004 b of re-employment or recall to service, (iii) is on a leave of absence from such a position, or (iv) is on disability but has not been receiving benefits under Section 7-146 or 7-150 for a period of more than 2 years from the date of application;

The retirement date shall be no earlier than the effective date of the program and no later than one year after that effective date, except that the -6- LRB09300004efg00004b employee may require that the retirement date set by the employer be no later than the June 30 next occurring after the effective date of the program and no earlier than the date upon which the employee qualifies for retirement.

The employer shall give each employee participating in the early retirement program at least 30 days written notice of the employee'semployee’s designated retirement date, unless the employee waives this notice requirement.

In addition, for each period of creditable service established under this Section, a HB0045 Engrossed - 6 - LRB093 00004 efg 00004 b person shall have his or her age at retirement deemed enhanced by an equivalent period.

(f) For all creditable service established under this Section, the member must pay to the Fund an employee contribution consisting of 4.5% of the member'smember’s highest annual salary rate used in the determination of the final -7- LRB09300004efg00004b rate of earnings for retirement annuity purposes for each year of creditable service granted under this Section.

For creditable service established under this Section by a person who is a sheriff'ssheriff’s law enforcement employee to be deemed service as a sheriff'ssheriff’s law enforcement employee, the employee contribution shall be at the rate of 6.5% of highest annual salary per year of creditable service granted.

If the member is entitled to a lump sum payment for accumulated vacation, sick leave, or personal leave upon HB0045 Engrossed - 7 - LRB093 00004 efg 00004 b withdrawal from service, the employer shall deduct the employee contribution from that lump sum and pay the deducted amount directly to the Fund.

(g) An annuitant who has received any age enhancement or creditable service under this Section and thereafter accepts employment with or enters into a personal services contract with an employer under this Article thereby forfeits that age enhancement and creditable service________t_____________service; _____i______________________t_____________________t_____________ _____o_____________________t_______________________i____________ _____r_____________________i___.

Aexcept personthat forfeiting early retirement incentives under this subsectionrestriction (i)does mustnot repayapply to theservice Fundin thatan portionelective ofoffice, theso retirementlong annuityas already received which is attributable to the earlyannuitant retirementdoes -8- LRB09300004efg00004b incentives that are being forfeited, (ii) shall not be eligible to participate in any future early retirement program adopted under this Section,Fund andwith (iii)respect is entitled to athat refundoffice. of the employee contribution paid under subsection (f).

A person forfeiting early retirement incentives under this subsection (i) must repay to the Fund that portion of the retirement annuity already received which is attributable to the early retirement incentives that are being forfeited, (ii) shall not be eligible to participate in any future early retirement program adopted under this Section, and (iii) is entitled to a refund of the employee contribution paid under subsection (f).

except that the employer may provide for a shorter amortization period (of no less than 5 years) by adopting an ordinance or resolution specifying the length of HB0045 Engrossed - 8 - LRB093 00004 efg 00004 b the amortization period and submitting a certified copy of the ordinance or resolution to the Fund no later than 6 months after the effective date of the program.