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| | 97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012 HB6258 Introduced , by Rep. Elaine Nekritz SYNOPSIS AS INTRODUCED: |
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Amends the General Provisions, General Assembly, State Employee, State Universities, and Downstate Teacher Articles of the Illinois Pension Code. In the General Provisions Article, creates a cash balance plan for new hires of the State Universities and Teachers' Retirement Systems and for certain Tier II participants. Increases the retirement age for certain Tier I members and participants. Changes the conditions of eligibility for, and the amount of, automatic annual increases for Tier I retirees. Increases required employee contributions for Tier I members and participants. Limits pensionable salary for Tier I participants. Changes the required State contribution to each of the affected retirement systems so that those systems are 100% funded by 2043. Guarantees certain funding levels. In the State Universities and Downstate Teacher Articles, shifts costs to local employers. Makes other changes. Amends the State Finance Act. To the list of standardized items of appropriation, adds "State retirement contribution for annual normal cost" and "State retirement contribution for unfunded accrued liability". Defines those terms. Amends the Governor's Office of Management and Budget Act. Adds those terms to a list of classifications to be used in statements and estimates of expenditures submitted to the
Office in connection with the preparation of a State budget. Amends the State Mandates Act to require implementation without reimbursement. Includes an inseverability provision. Makes other changes. Effective immediately.
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| | FISCAL NOTE ACT MAY APPLY | PENSION IMPACT NOTE ACT MAY APPLY | STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT |
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1 | | AN ACT concerning public employee benefits.
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2 | | Be it enacted by the People of the State of Illinois,
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3 | | represented in the General Assembly:
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4 | | Section 5. The Governor's Office of Management and Budget |
5 | | Act is amended by changing Sections 7 and 8 as follows:
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6 | | (20 ILCS 3005/7) (from Ch. 127, par. 417)
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7 | | Sec. 7.
All statements and estimates of expenditures |
8 | | submitted to the
Office in connection with the preparation of a |
9 | | State budget, and any other
estimates of expenditures, |
10 | | supporting requests for appropriations, shall be
formulated |
11 | | according to the various functions and activities for which the
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12 | | respective department, office or institution of the State |
13 | | government
(including the elective officers in the executive |
14 | | department and including
the University of Illinois and the |
15 | | judicial department) is responsible. All
such statements and |
16 | | estimates of expenditures relating to a particular
function or |
17 | | activity shall be further formulated or subject to analysis in
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18 | | accordance with the following classification of objects:
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19 | | (1) Personal services
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20 | | (2) State contribution for employee group insurance
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21 | | (3) Contractual services
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22 | | (4) Travel
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23 | | (5) Commodities
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1 | | (6) Equipment
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2 | | (7) Permanent improvements
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3 | | (8) Land
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4 | | (9) Electronic Data Processing
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5 | | (10) Telecommunication services
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6 | | (11) Operation of Automotive Equipment
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7 | | (12) Contingencies
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8 | | (13) Reserve
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9 | | (14) Interest
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10 | | (15) Awards and Grants
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11 | | (16) Debt Retirement
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12 | | (17) Non-cost Charges .
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13 | | (18) State retirement contribution for annual normal cost |
14 | | (19) State retirement contribution for unfunded accrued |
15 | | liability. |
16 | | (Source: P.A. 93-25, eff. 6-20-03 .)
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17 | | (20 ILCS 3005/8) (from Ch. 127, par. 418)
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18 | | Sec. 8.
When used in connection with a State budget or |
19 | | expenditure or
estimate, items (1) through (16) in the |
20 | | classification of objects stated in
Section 7 shall have the |
21 | | meanings ascribed to those items in Sections 14
through 24.7, |
22 | | respectively, of the State Finance Act. "An Act in relation to |
23 | | State finance",
approved June 10, 1919, as amended.
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24 | | When used in connection with a State budget or expenditure |
25 | | or
estimate, items (18) and (19) in the classification of |
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1 | | objects stated in
Section 7 shall have the meanings ascribed to |
2 | | those items in Sections 24.12 and 24.13, respectively, of the |
3 | | State Finance Act. |
4 | | (Source: P.A. 82-325.)
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5 | | Section 10. The State Finance Act is amended by changing |
6 | | Section 13 and by adding Sections 24.12 and 24.13 as follows:
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7 | | (30 ILCS 105/13) (from Ch. 127, par. 149)
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8 | | Sec. 13.
The objects and purposes for which appropriations |
9 | | are made
are classified and standardized by items as follows:
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10 | | (1) Personal services;
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11 | | (2) State contribution for employee group insurance;
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12 | | (3) Contractual services;
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13 | | (4) Travel;
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14 | | (5) Commodities;
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15 | | (6) Equipment;
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16 | | (7) Permanent improvements;
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17 | | (8) Land;
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18 | | (9) Electronic Data Processing;
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19 | | (10) Operation of automotive equipment;
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20 | | (11) Telecommunications services;
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21 | | (12) Contingencies;
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22 | | (13) Reserve;
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23 | | (14) Interest;
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24 | | (15) Awards and Grants;
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1 | | (16) Debt Retirement;
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2 | | (17) Non-Cost Charges;
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3 | | (18) State retirement contribution for annual normal cost; |
4 | | (19) State retirement contribution for unfunded accrued |
5 | | liability; |
6 | | (20) (18) Purchase Contract for Real Estate.
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7 | | When an appropriation is made to an officer, department, |
8 | | institution,
board, commission or other agency, or to a private |
9 | | association or
corporation, in one or more of the items above |
10 | | specified, such
appropriation shall be construed in accordance |
11 | | with the definitions and
limitations specified in this Act, |
12 | | unless the appropriation act
otherwise provides.
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13 | | An appropriation for a purpose other than one specified and |
14 | | defined
in this Act may be made only as an additional, separate |
15 | | and distinct
item, specifically stating the object and purpose |
16 | | thereof.
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17 | | (Source: P.A. 84-263; 84-264.)
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18 | | (30 ILCS 105/24.12 new) |
19 | | Sec. 24.12. "State retirement contribution for annual |
20 | | normal cost" defined. The term "State retirement contribution |
21 | | for annual normal cost" means the portion of the total required |
22 | | State contribution to a retirement system for a fiscal year |
23 | | that represents the State's portion of the System's projected |
24 | | normal cost for that fiscal year, as determined and certified |
25 | | by the board of trustees of the retirement system in |
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1 | | conformance with the applicable provisions of the Illinois |
2 | | Pension Code. |
3 | | (30 ILCS 105/24.13 new) |
4 | | Sec. 24.13. "State retirement contribution for unfunded |
5 | | accrued liability" defined. The term "State retirement |
6 | | contribution for unfunded accrued liability" means the portion |
7 | | of the total required State contribution to a retirement system |
8 | | for a fiscal year that is not included in the State retirement |
9 | | contribution for annual normal cost. |
10 | | Section 15. The Budget Stabilization Act is amended by |
11 | | changing Section 20 as follows: |
12 | | (30 ILCS 122/20) |
13 | | Sec. 20. Pension Stabilization Fund. |
14 | | (a) The Pension Stabilization Fund is hereby created as a |
15 | | special fund in the State treasury. Moneys in the fund shall be |
16 | | used for the sole purpose of making payments to the designated |
17 | | retirement systems as provided in Section 25.
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18 | | (b) For each fiscal year when the General Assembly's
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19 | | appropriations and transfers or diversions as required by law
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20 | | from general funds do not exceed 99% of the
estimated general |
21 | | funds revenues pursuant to subsection (a)
of Section 10, the |
22 | | Comptroller shall transfer from the
General Revenue Fund as |
23 | | provided by this Section a total
amount equal to 0.5% of the |
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1 | | estimated general funds revenues
to the Pension Stabilization |
2 | | Fund. |
3 | | (c) For each fiscal year through State fiscal year 2013, |
4 | | when the General Assembly's
appropriations and transfers or |
5 | | diversions as required by law
from general funds do not exceed |
6 | | 98% of the
estimated general funds revenues pursuant to |
7 | | subsection (b)
of Section 10, the Comptroller shall transfer |
8 | | from the
General Revenue Fund as provided by this Section a |
9 | | total
amount equal to 1.0% of the estimated general funds |
10 | | revenues
to the Pension Stabilization Fund. |
11 | | (c-10) In State fiscal year 2016 and each fiscal year |
12 | | thereafter, the State Comptroller shall order transferred and |
13 | | the State Treasurer shall transfer $693,500,000 from the |
14 | | General Revenue Fund to the Pension Stabilization Fund. |
15 | | (c-15) In addition, in State fiscal year 2020 and each |
16 | | fiscal year thereafter, the State Comptroller shall order |
17 | | transferred and the State Treasurer shall transfer |
18 | | $900,000,000 from the General Revenue Fund to the Pension |
19 | | Stabilization Fund. |
20 | | (c-20) In addition, in State fiscal year 2034 and each |
21 | | fiscal year thereafter, the State Comptroller shall order |
22 | | transferred and the State Treasurer shall transfer |
23 | | $1,100,000,000 from the General Revenue Fund to the Pension |
24 | | Stabilization Fund. |
25 | | (c-25) The transfers made pursuant to subsections (c-10) |
26 | | through (c-20) of this Section shall continue through State |
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1 | | fiscal year 2045 or until each of the designated retirement |
2 | | systems, as defined in Section 25, has achieved a funding ratio |
3 | | of at least 100%, whichever occurs first. |
4 | | (d) The Comptroller shall transfer 1/12 of the total
amount |
5 | | to be transferred each fiscal year under this Section
into the |
6 | | Pension Stabilization Fund on the first day of each
month of |
7 | | that fiscal year or as soon thereafter as possible; except that |
8 | | the final transfer of the fiscal year shall be made as soon as |
9 | | practical after the August 31 following the end of the fiscal |
10 | | year. |
11 | | Until State fiscal year 2014, before Before the final |
12 | | transfer for a fiscal year is made, the Comptroller shall |
13 | | reconcile the estimated general funds revenues used in |
14 | | calculating the other transfers under this Section for that |
15 | | fiscal year with the actual general funds revenues for that |
16 | | fiscal year. The
final transfer for the fiscal year shall be |
17 | | adjusted so that the
total amount transferred under this |
18 | | Section for that fiscal year is equal to the percentage |
19 | | specified in subsection
(b) or (c) of this Section, whichever |
20 | | is applicable, of the actual
general funds revenues for that |
21 | | fiscal year. The actual general funds revenues for the fiscal |
22 | | year shall be calculated in a manner consistent with subsection |
23 | | (c) of
Section 10 of this Act.
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24 | | (Source: P.A. 94-839, eff. 6-6-06.) |
25 | | Section 20. The Illinois Pension Code is amended by |
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1 | | changing Sections 1-103.3, 1-160, 2-108, 2-119, 2-119.1, |
2 | | 2-121.1, 2-124, 2-125, 2-126, 2-134, 2-162, 14-103.10, 14-107, |
3 | | 14-108, 14-110, 14-114, 14-131, 14-132, 14-133, 14-135.08, |
4 | | 14-152.1, 15-111, 15-113.6, 15-113.7, 15-134.5, 15-135, |
5 | | 15-136, 15-155, 15-156, 15-157, 15-158.2, 15-165, 15-198, |
6 | | 16-121, 16-132, 16-133, 16-133.1, 16-152, 16-158, 16-158.1, |
7 | | 16-203, 20-121, 20-123, 20-124, and 20-125 and by adding |
8 | | Sections 1-161, 2-105.1, 2-105.2, 14-103.40, 14-103.41, |
9 | | 15-107.1, 15-107.2, 15-155.1, 16-106.4, 16-106.5, and 16-158.2 |
10 | | as follows:
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11 | | (40 ILCS 5/1-103.3)
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12 | | Sec. 1-103.3. Application of 1994 amendment; funding |
13 | | standard.
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14 | | (a) The provisions of Public Act 88-593 this amendatory Act |
15 | | of 1994 that change the method of
calculating, certifying, and |
16 | | paying the required State contributions to the
retirement |
17 | | systems established under Articles 2, 14, 15, 16, and 18 shall
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18 | | first apply to the State contributions required for State |
19 | | fiscal year 1996.
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20 | | (b) (Blank) The General Assembly declares that a funding |
21 | | ratio (the ratio of a
retirement system's total assets to its |
22 | | total actuarial liabilities) of 90% is
an appropriate goal for |
23 | | State-funded retirement systems in Illinois, and it
finds that |
24 | | a funding ratio of 90% is now the generally-recognized norm
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25 | | throughout the nation for public employee retirement systems |
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1 | | that are
considered to be financially secure and funded in an |
2 | | appropriate and
responsible manner .
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3 | | (c) Every 5 years, beginning in 1999, the Commission on |
4 | | Government Forecasting and Accountability, in consultation |
5 | | with the affected retirement systems and the
Governor's Office |
6 | | of Management and Budget (formerly
Bureau
of the Budget), shall |
7 | | consider and determine whether the funding goals 90% funding |
8 | | ratio
adopted in Articles 2, 14, 15, 16, and 18 of this Code |
9 | | continue subsection (b) continues to represent an appropriate |
10 | | funding goals goal for
those State-funded retirement systems in |
11 | | Illinois , and it shall report its findings
and recommendations |
12 | | on this subject to the Governor and the General Assembly.
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13 | | (Source: P.A. 93-1067, eff. 1-15-05.)
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14 | | (40 ILCS 5/1-160) |
15 | | Sec. 1-160. Provisions applicable to new hires. |
16 | | (a) The provisions of this Section apply to a person who, |
17 | | on or after January 1, 2011, first becomes a member or a |
18 | | participant under any reciprocal retirement system or pension |
19 | | fund established under this Code, other than a retirement |
20 | | system or pension fund established under Article 2, 3, 4, 5, 6, |
21 | | or 18 of this Code, notwithstanding any other provision of this |
22 | | Code to the contrary, but do not apply (i) to any self-managed |
23 | | plan established under this Code, (ii) to any person with |
24 | | respect to service as a sheriff's law enforcement employee |
25 | | under Article 7, (iii) to any person with respect to service |
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1 | | for which the person participates in the cash balance plan |
2 | | established under Section 1-161, or (iv) to any participant of |
3 | | the retirement plan established under Section 22-101. |
4 | | A person subject to this Section with respect to service |
5 | | under the State Universities Retirement System may irrevocably |
6 | | elect to transfer to the cash balance plan under Section 1-161 |
7 | | with respect to service under the State Universities Retirement |
8 | | System by filing with the State Universities Retirement System |
9 | | by December 31, 2013, in the manner required by that System, |
10 | | his or her irrevocable written election to transfer to the cash |
11 | | balance plan. A person subject to this Section who returns to |
12 | | active service under Article 15 after November 1, 2013 shall |
13 | | have 60 days after returning to active service to make this |
14 | | election. Participation in the cash balance plan shall begin no |
15 | | earlier than July 1, 2013. For a person who transfers to the |
16 | | cash balance plan, the benefits that would otherwise be payable |
17 | | under this Section with respect to service in the State |
18 | | Universities Retirement System shall instead be payable as |
19 | | provided in the cash balance plan. |
20 | | A person subject to this Section with respect to service |
21 | | under the Teachers' Retirement System of the State of Illinois |
22 | | may irrevocably elect to transfer to the cash balance plan |
23 | | under Section 1-161 with respect to service under the Teachers' |
24 | | Retirement System of the State of Illinois by filing with the |
25 | | Teachers' Retirement System of the State of Illinois by |
26 | | December 31, 2013, in the manner required by that System, his |
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1 | | or her irrevocable written election to transfer to the cash |
2 | | balance plan. A person subject to this Section who returns to |
3 | | active service under Article 16 after November 1, 2013 shall |
4 | | have 60 days after returning to active service to make this |
5 | | election. Participation in the cash balance plan shall begin no |
6 | | earlier than July 1, 2013. For a person who transfers to the |
7 | | cash balance plan, the benefits that would otherwise be payable |
8 | | under this Section with respect to service in the Teachers' |
9 | | Retirement System of the State of Illinois shall instead be |
10 | | payable as provided in the cash balance plan. |
11 | | (b) "Final average salary" means the average monthly (or |
12 | | annual) salary obtained by dividing the total salary or |
13 | | earnings calculated under the Article applicable to the member |
14 | | or participant during the 96 consecutive months (or 8 |
15 | | consecutive years) of service within the last 120 months (or 10 |
16 | | years) of service in which the total salary or earnings |
17 | | calculated under the applicable Article was the highest by the |
18 | | number of months (or years) of service in that period. For the |
19 | | purposes of a person who first becomes a member or participant |
20 | | of any retirement system or pension fund to which this Section |
21 | | applies on or after January 1, 2011, in this Code, "final |
22 | | average salary" shall be substituted for the following: |
23 | | (1) In Articles 7 (except for service as sheriff's law |
24 | | enforcement employees) and 15, "final rate of earnings". |
25 | | (2) In Articles 8, 9, 10, 11, and 12, "highest average |
26 | | annual salary for any 4 consecutive years within the last |
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1 | | 10 years of service immediately preceding the date of |
2 | | withdrawal". |
3 | | (3) In Article 13, "average final salary". |
4 | | (4) In Article 14, "final average compensation". |
5 | | (5) In Article 17, "average salary". |
6 | | (6) In Section 22-207, "wages or salary received by him |
7 | | at the date of retirement or discharge". |
8 | | (b-5) Beginning on January 1, 2011, for all purposes under |
9 | | this Code (including without limitation the calculation of |
10 | | benefits and employee contributions), the annual earnings, |
11 | | salary, or wages (based on the plan year) of a member or |
12 | | participant to whom this Section applies shall not exceed |
13 | | $106,800; however, that amount shall annually thereafter be |
14 | | increased by the lesser of (i) 3% of that amount, including all |
15 | | previous adjustments, or (ii) one-half the annual unadjusted |
16 | | percentage increase (but not less than zero) in the consumer |
17 | | price index-u
for the 12 months ending with the September |
18 | | preceding each November 1, including all previous adjustments. |
19 | | For the purposes of this Section, "consumer price index-u" |
20 | | means
the index published by the Bureau of Labor Statistics of |
21 | | the United States
Department of Labor that measures the average |
22 | | change in prices of goods and
services purchased by all urban |
23 | | consumers, United States city average, all
items, 1982-84 = |
24 | | 100. The new amount resulting from each annual adjustment
shall |
25 | | be determined by the Public Pension Division of the Department |
26 | | of Insurance and made available to the boards of the retirement |
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1 | | systems and pension funds by November 1 of each year. |
2 | | (c) A member or participant is entitled to a retirement
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3 | | annuity upon written application if he or she has attained age |
4 | | 67 and has at least 10 years of service credit and is otherwise |
5 | | eligible under the requirements of the applicable Article. |
6 | | A member or participant who has attained age 62 and has at |
7 | | least 10 years of service credit and is otherwise eligible |
8 | | under the requirements of the applicable Article may elect to |
9 | | receive the lower retirement annuity provided
in subsection (d) |
10 | | of this Section. |
11 | | (d) The retirement annuity of a member or participant who |
12 | | is retiring after attaining age 62 with at least 10 years of |
13 | | service credit shall be reduced by one-half
of 1% for each full |
14 | | month that the member's age is under age 67. |
15 | | (e) Any retirement annuity or supplemental annuity shall be |
16 | | subject to annual increases on the January 1 occurring either |
17 | | on or after the attainment of age 67 or the first anniversary |
18 | | of the annuity start date, whichever is later. Each annual |
19 | | increase shall be calculated at 3% or one-half the annual |
20 | | unadjusted percentage increase (but not less than zero) in the |
21 | | consumer price index-u for the 12 months ending with the |
22 | | September preceding each November 1, whichever is less, of the |
23 | | originally granted retirement annuity. If the annual |
24 | | unadjusted percentage change in the consumer price index-u for |
25 | | the 12 months ending with the September preceding each November |
26 | | 1 is zero or there is a decrease, then the annuity shall not be |
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1 | | increased. |
2 | | (f) The initial survivor's or widow's annuity of an |
3 | | otherwise eligible survivor or widow of a retired member or |
4 | | participant who first became a member or participant on or |
5 | | after January 1, 2011 shall be in the amount of 66 2/3% of the |
6 | | retired member's or participant's retirement annuity at the |
7 | | date of death. In the case of the death of a member or |
8 | | participant who has not retired and who first became a member |
9 | | or participant on or after January 1, 2011, eligibility for a |
10 | | survivor's or widow's annuity shall be determined by the |
11 | | applicable Article of this Code. The initial benefit shall be |
12 | | 66 2/3% of the earned annuity without a reduction due to age. A |
13 | | child's annuity of an otherwise eligible child shall be in the |
14 | | amount prescribed under each Article if applicable. Any |
15 | | survivor's or widow's annuity shall be increased (1) on each |
16 | | January 1 occurring on or after the commencement of the annuity |
17 | | if
the deceased member died while receiving a retirement |
18 | | annuity or (2) in
other cases, on each January 1 occurring |
19 | | after the first anniversary
of the commencement of the annuity. |
20 | | Each annual increase shall be calculated at 3% or one-half the |
21 | | annual unadjusted percentage increase (but not less than zero) |
22 | | in the consumer price index-u for the 12 months ending with the |
23 | | September preceding each November 1, whichever is less, of the |
24 | | originally granted survivor's annuity. If the annual |
25 | | unadjusted percentage change in the consumer price index-u for |
26 | | the 12 months ending with the September preceding each November |
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1 | | 1 is zero or there is a decrease, then the annuity shall not be |
2 | | increased. |
3 | | (g) The benefits in Section 14-110 apply only if the person |
4 | | is a State policeman, a fire fighter in the fire protection |
5 | | service of a department, or a security employee of the |
6 | | Department of Corrections or the Department of Juvenile |
7 | | Justice, as those terms are defined in subsection (c) (b) of |
8 | | Section 14-110. A person who meets the requirements of this |
9 | | Section is entitled to an annuity calculated under the |
10 | | provisions of Section 14-110, in lieu of the regular or minimum |
11 | | retirement annuity, only if the person has withdrawn from |
12 | | service with not less than 20
years of eligible creditable |
13 | | service and has attained age 60, regardless of whether
the |
14 | | attainment of age 60 occurs while the person is
still in |
15 | | service. |
16 | | (h) If a person who first becomes a member or a participant |
17 | | of a retirement system or pension fund subject to this Section |
18 | | on or after January 1, 2011 is receiving a retirement annuity |
19 | | or retirement pension under that system or fund and becomes a |
20 | | member or participant under any other system or fund created by |
21 | | this Code and is employed on a full-time basis, except for |
22 | | those members or participants exempted from the provisions of |
23 | | this Section under subsection (a) of this Section, then the |
24 | | person's retirement annuity or retirement pension under that |
25 | | system or fund shall be suspended during that employment. Upon |
26 | | termination of that employment, the person's retirement |
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1 | | annuity or retirement pension payments shall resume and be |
2 | | recalculated if recalculation is provided for under the |
3 | | applicable Article of this Code. |
4 | | If a person who first becomes a member of a retirement |
5 | | system or pension fund subject to this Section on or after |
6 | | January 1, 2012 and is receiving a retirement annuity or |
7 | | retirement pension under that system or fund and accepts on a |
8 | | contractual basis a position to provide services to a |
9 | | governmental entity from which he or she has retired, then that |
10 | | person's annuity or retirement pension earned as an active |
11 | | employee of the employer shall be suspended during that |
12 | | contractual service. A person receiving an annuity or |
13 | | retirement pension under this Code shall notify the pension |
14 | | fund or retirement system from which he or she is receiving an |
15 | | annuity or retirement pension, as well as his or her |
16 | | contractual employer, of his or her retirement status before |
17 | | accepting contractual employment. A person who fails to submit |
18 | | such notification shall be guilty of a Class A misdemeanor and |
19 | | required to pay a fine of $1,000. Upon termination of that |
20 | | contractual employment, the person's retirement annuity or |
21 | | retirement pension payments shall resume and, if appropriate, |
22 | | be recalculated under the applicable provisions of this Code. |
23 | | (i) Notwithstanding any other provision of this Section, a |
24 | | person who first becomes a participant of the retirement system |
25 | | established under Article 15 on or after January 1, 2011 but |
26 | | before the effective date of this amendatory Act of the 97th |
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1 | | General Assembly shall have the option to enroll in the |
2 | | self-managed plan created under Section 15-158.2 of this Code. |
3 | | (j) In the case of a conflict between the provisions of |
4 | | this Section and any other provision of this Code, the |
5 | | provisions of this Section shall control.
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6 | | (Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11; |
7 | | 97-609, eff. 1-1-12.) |
8 | | (40 ILCS 5/1-161 new) |
9 | | Sec. 1-161. Cash Balance Plan. |
10 | | (a) Participation and Applicability. This Section applies |
11 | | to all new cash balance plan participants and all legacy Tier |
12 | | II participants. |
13 | | (b) Title. The package of benefits provided under this |
14 | | Section may be referred to as the "cash balance plan". Persons |
15 | | subject to the provisions of this Section may be referred to as |
16 | | "participants in the cash balance plan" or, in this Section, |
17 | | simply as "participants". |
18 | | (b-5) Definitions. As used in this Section: |
19 | | "Account" means the notional cash balance account |
20 | | established under this Section by the applicable retirement |
21 | | system for a participant in the cash balance plan. |
22 | | "Eligible child" means: |
23 | | (1) with respect to a participant in the retirement |
24 | | system established under Article 15 of this Code, a person |
25 | | who would be eligible for a survivors insurance benefit as |
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1 | | a dependent unmarried child under Article 15 of this Code |
2 | | if the deceased participant had been a participant in the |
3 | | traditional benefit package; or |
4 | | (2) with respect to a participant in the retirement |
5 | | system established under Article 16, an eligible child as |
6 | | defined in subdivision (a)(4) of Section 16-140 of this |
7 | | Code who would be eligible for survivors' benefits if the |
8 | | deceased participant had not been subject to this Section. |
9 | | "Eligible parent" means: |
10 | | (1) with respect to a participant in the retirement |
11 | | system established under Article 15 of this Code, a person |
12 | | who would be eligible for a survivors insurance benefit as |
13 | | a dependent parent under Article 15 of this Code if the |
14 | | deceased participant had been a participant in the |
15 | | traditional benefit package; or |
16 | | (2) with respect to a participant in the retirement |
17 | | system established under Article 16, a dependent parent as |
18 | | defined in subdivision (a)(5) of Section 16-140 of this |
19 | | Code who would be eligible for survivors' benefits if the |
20 | | deceased participant had not been subject to this Section. |
21 | | "Eligible surviving spouse" means: |
22 | | (1) with respect to a participant in the retirement |
23 | | system established under Article 15 of this Code, a person |
24 | | who would be eligible for a survivors annuity as a |
25 | | surviving spouse under Article 15 of this Code if the |
26 | | deceased participant had been a participant in the |
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1 | | traditional benefit package; or |
2 | | (2) with respect to a participant in the retirement |
3 | | system established under Article 16, a dependent |
4 | | beneficiary as defined in subdivision (a)(3)(A) or |
5 | | (a)(3)(A-1) of Section 16-140 of this Code who would be |
6 | | eligible for survivors' benefits payable in the form of an |
7 | | annuity if the deceased participant had not been subject to |
8 | | this Section. |
9 | | "Eligible survivor" means: |
10 | | (1) with respect to a participant in the retirement |
11 | | system established under Article 15 of this Code, a person |
12 | | who would be eligible for survivors insurance benefits as a |
13 | | survivors insurance beneficiary (as defined in Section |
14 | | 15-131 of this Code) if the deceased participant had been a |
15 | | participant in the traditional benefit package; or |
16 | | (2) with respect to a participant in the retirement |
17 | | system established under Article 16, a person who would be |
18 | | eligible for survivors' benefits under Article 16 of this |
19 | | Code if the deceased participant had not been subject to |
20 | | this Section. |
21 | | "Salary" means "earnings" as defined in Article 15 or |
22 | | "salary" as defined in Article 16, whichever is applicable. |
23 | | "Legacy Tier II participant" means a person who was subject |
24 | | to Section 1-160 with respect to service under Article 15 or 16 |
25 | | of this Code and who irrevocably elects to participate in the |
26 | | cash balance plan created under this Section. That election |
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1 | | must be made in writing, in the manner provided by the |
2 | | applicable retirement system. |
3 | | "New cash balance plan participant" means a person who, on |
4 | | or after July 1, 2013, first begins to participate in the |
5 | | retirement system established under Article 15 or 16 of this |
6 | | Code. |
7 | | (c) Cash Balance Account. A notional cash balance account |
8 | | shall be established by the applicable retirement system for |
9 | | each participant in the cash balance plan. The account is |
10 | | notional and does not contain any actual money segregated from |
11 | | the commingled assets of the retirement system. The cash |
12 | | balance in the account is to be used in calculating benefits as |
13 | | provided in this Section, but is not to be used in the |
14 | | calculation of any refund, transfer, or other benefit under the |
15 | | applicable Article of this Code. |
16 | | If a person participates in the cash balance plan with |
17 | | respect to service under more than one retirement system, each |
18 | | retirement system shall establish a separate cash balance |
19 | | account for the participant, and the participant shall be |
20 | | entitled to separate benefits from each retirement system based |
21 | | upon the participant's service and cash balance account under |
22 | | that retirement system. References in this Section to a |
23 | | participant's account mean the account established by, and |
24 | | related to his or her service under, the applicable retirement |
25 | | system. |
26 | | The amounts to be credited to the cash balance account |
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1 | | shall include (i) amounts contributed by or on behalf of the |
2 | | participant as employee contributions, (ii) notional employer |
3 | | contributions and notional amounts based on optional employer |
4 | | contributions, and (iii) interest credit that is attributable |
5 | | to the account, all as provided in this Section. |
6 | | The amounts to be debited from the cash balance account |
7 | | shall include (i) amounts representing contributions for |
8 | | disability benefits, (ii) amounts representing contributions |
9 | | for survivor benefits not based on the cash balance account, |
10 | | and (iii) upon a return to service after retirement, amounts |
11 | | representing each payment of retirement annuity following the |
12 | | latest retirement and preceding the return to service, all as |
13 | | provided in this Section. |
14 | | The applicable retirement system shall give to each |
15 | | participant in the cash balance plan who has not yet retired |
16 | | annual notice of the balance in the participant's cash balance |
17 | | account. |
18 | | (c-5) Initial Account Balance for Legacy Tier II |
19 | | Participants. The applicable retirement system shall establish |
20 | | an initial account balance for each legacy Tier II participant |
21 | | when he or she begins participation in the cash balance plan. |
22 | | The initial account balance shall be an amount equal to the |
23 | | refund that the participant
would be eligible to receive under |
24 | | the applicable Article of this Code if the participant |
25 | | terminated
employment on that date and elected a refund of |
26 | | contributions. If a legacy Tier II participant has purchased |
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1 | | service credit prior to irrevocably electing to participate in |
2 | | the cash balance plan created under this Section, then the |
3 | | initial account balance shall include an amount equal to the |
4 | | contributions made by the participant to purchase that service |
5 | | credit. |
6 | | By accepting the initial account balance, the participant |
7 | | relinquishes the right to any benefits (including survivor |
8 | | benefits) that would otherwise be payable under Section 1-160 |
9 | | with respect to service in the applicable retirement system, |
10 | | but does not forfeit any service credit earned with respect to |
11 | | such service. |
12 | | (d) Employee Contributions. New cash balance plan |
13 | | participants and legacy Tier II participants shall make |
14 | | employee contributions to the applicable retirement system at |
15 | | the rates required under the applicable Article of this Code. |
16 | | The amount of each contribution shall be credited to the |
17 | | participant's cash balance account after the retirement |
18 | | system's receipt and reconciliation of the contribution. |
19 | | (e) Notional Employer Contributions. Upon crediting each |
20 | | employee contribution under subsection (d), an amount |
21 | | representing the corresponding employer contribution shall be |
22 | | credited to the participant's cash balance account. Notional |
23 | | employer contributions shall be 6.2% of salary. |
24 | | The notional employer contribution to be credited to the |
25 | | participant's account is not the same as the actual employer |
26 | | contributions required under subsection (o) and the provisions |
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1 | | of the applicable Article of this Code. |
2 | | (e-1) Notional Amount Based on Optional Employer |
3 | | Contributions. If an employer agrees to make optional employer |
4 | | contributions under subsection (p), then, for the period |
5 | | specified in the agreement, an amount representing the |
6 | | percentage of salary specified in the agreement shall be |
7 | | credited to the cash balance account of each affected |
8 | | participant after receipt and reconciliation of the |
9 | | corresponding employee contribution under subsection (d). |
10 | | The notional amount to be credited to the participant's |
11 | | account is not the same amount as the actual optional employer |
12 | | contribution required under subsection (p) and the provisions |
13 | | of the applicable Article of this Code. |
14 | | (f) Interest Credit. An interest credit shall be determined |
15 | | by the retirement system in accordance with this Section and |
16 | | credited to the participant's cash balance account for each |
17 | | fiscal year in which there is a positive balance in that |
18 | | account; except that no additional interest credit shall be |
19 | | credited while an annuity based on the account is being paid. |
20 | | The interest credit amount shall be a percentage of the average |
21 | | balance in the cash balance account during that fiscal year, |
22 | | and shall be calculated on June 30. |
23 | | The percentage shall be the assumed treasury rate for the |
24 | | previous fiscal year, unless neither the retirement system's |
25 | | actual rate of investment earnings for the previous fiscal year |
26 | | nor the retirement system's actual rate of investment earnings |
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1 | | for the five-year period ending at the end of the previous |
2 | | fiscal year is less than the assumed treasury rate. |
3 | | If both the retirement system's actual rate of investment |
4 | | earnings for the previous fiscal year and the actual rate of |
5 | | investment earnings for the five-year period ending at the end |
6 | | of the previous fiscal year are at least the assumed treasury |
7 | | rate, then the percentage shall be: |
8 | | (i) the assumed treasury rate, plus |
9 | | (ii) two-thirds of the amount of the actual rate of |
10 | | investment earnings for the previous fiscal year that |
11 | | exceeds the assumed treasury rate. |
12 | | However, in no event shall the percentage applied under this |
13 | | subsection exceed 10%. |
14 | | For the purposes of this subsection only, "previous fiscal |
15 | | year" means the fiscal year ending one year before the interest |
16 | | rate is calculated. |
17 | | For the purposes of this subsection only, "assumed treasury |
18 | | rate" means the average annual yield of the 30-year U.S. |
19 | | Treasury Bond over the previous fiscal year, but not less than |
20 | | 4%. |
21 | | When a person applies for a retirement annuity under |
22 | | subsection (g) or a surviving spouse's annuity under subsection |
23 | | (k), the retirement system shall calculate the initial annuity |
24 | | without applying an interest credit for the portion of the |
25 | | fiscal year before the initial annuity payment date. On the |
26 | | first June 30 occurring on or after the initial annuity payment |
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1 | | date, the retirement system shall (1) calculate a prorated |
2 | | interest credit for the portion of the fiscal year before the |
3 | | initial annuity payment date, (2) credit the prorated amount to |
4 | | the participant's account, and (3) recalculate the amount of |
5 | | the annuity from the initial annuity payment date. The |
6 | | retirement system shall pay to the annuitant in a lump-sum, |
7 | | without interest, the difference, for the portion of the fiscal |
8 | | year on and after the initial annuity payment, between the |
9 | | original annuity amount and the annuity amount as recalculated |
10 | | under this subsection. |
11 | | (f-10) Distribution after Termination of Employment. After |
12 | | termination of the participant's active employment with at |
13 | | least 5 years of service credit under the applicable retirement |
14 | | system but prior to applying for an annuity under this Section, |
15 | | a participant in the cash balance plan or an eligible surviving |
16 | | spouse under subsection (k) may make an irrevocable election to |
17 | | receive a distribution from the applicable retirement system in |
18 | | an amount not to exceed 40% of the balance in the participant's |
19 | | account in the form of a direct rollover to another qualified |
20 | | plan, to the extent allowed by federal law. Only one |
21 | | distribution under this subsection may be made with respect to |
22 | | a participant's cash balance account. |
23 | | Upon payment of the distribution, the amount distributed |
24 | | shall be debited from the participant's cash balance account. |
25 | | The remaining balance in the account shall be used for the |
26 | | determination of the other benefits provided to the participant |
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1 | | or eligible surviving spouse under this Section. Once a |
2 | | distribution under this subsection (f-10) has been paid, |
3 | | neither the participant nor an eligible survivor may repay the |
4 | | amount distributed or reinstate any benefit arising under this |
5 | | Section from the distributed amount. |
6 | | (f-15) Refund. In lieu of receiving a distribution under |
7 | | subsection (f-10) or a retirement annuity under subsection (g), |
8 | | at any time after terminating active employment under the |
9 | | applicable retirement system, a participant in the cash balance |
10 | | plan may elect to receive a refund under this subsection. The |
11 | | refund shall consist of an amount equal to the amount of all |
12 | | employee contributions credited to the participant's account, |
13 | | but shall not include any interest credit or employer |
14 | | contributions. If the participant so requests, the refund may |
15 | | be paid in the form of a direct rollover to another qualified |
16 | | plan, to the extent allowed by federal law and in accordance |
17 | | with the rules of the applicable retirement system. |
18 | | Upon payment of the refund, the participant's notional cash |
19 | | balance account is closed, and the participant's credits in the |
20 | | applicable retirement system are terminated. A person who |
21 | | receives a refund under this subsection forfeits all rights |
22 | | under the applicable retirement system, including any right to |
23 | | repay refunded amounts and to reinstate any benefit under that |
24 | | retirement system. |
25 | | An eligible surviving spouse under subsection (k) may elect |
26 | | to receive a refund under this subsection in lieu of a |
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1 | | survivor's annuity unless a distribution has been made under |
2 | | subsection (f-10) with respect to the participant's cash |
3 | | balance account. |
4 | | (g) Retirement Annuity. A participant in the cash balance |
5 | | plan may begin collecting a retirement annuity at age 59 1/2, |
6 | | but not before reaching the age of 59 1/2 and not before the |
7 | | date of termination of active employment under the applicable |
8 | | retirement system. |
9 | | The amount of the retirement annuity shall be calculated by |
10 | | the retirement system, based on the balance in the cash balance |
11 | | account, the assumption of future investment returns as |
12 | | specified in this subsection, the participant's election to |
13 | | have a lifetime surviving spouse's annuity as specified in this |
14 | | subsection, the annual increase in retirement annuity as |
15 | | specified in subsection (h), the annual increase in survivor's |
16 | | annuity as specified in subsection (l), and any actuarial |
17 | | assumptions and tables adopted by the board of the retirement |
18 | | system for this purpose. The calculation shall be designed to |
19 | | determine, on an actuarially equivalent basis, the amount of |
20 | | retirement annuity that will result in total annuity payments |
21 | | being equal to the total balance in the participant's account |
22 | | on the date when the last payment of retirement annuity (or |
23 | | surviving spouse's annuity, if the participant elects to |
24 | | provide for a surviving spouse's annuity pursuant to this |
25 | | subsection) is anticipated to be paid under the relevant |
26 | | actuarial assumptions. |
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1 | | For the purpose of calculating retirement annuities, |
2 | | future investment returns shall be assumed to be a percentage |
3 | | equal to the average yield of the 30-year U.S. Treasury Bond |
4 | | over the 5 fiscal years prior to the calculation of the initial |
5 | | retirement annuity, plus 200 basis points; but not less than 4% |
6 | | nor more than 8%. |
7 | | A retirement annuity or surviving spouse's annuity |
8 | | provided under this subsection shall be a life annuity and |
9 | | shall not expire for the reason that the total amount paid has |
10 | | reached or exceeded the account balance. |
11 | | The annuity payment shall begin on the date specified by |
12 | | the participant submitting a written application, which date |
13 | | shall not be prior to termination of employment or more than |
14 | | one year before the application is received by the board; |
15 | | however, if the participant is not an employee of an employer |
16 | | participating in the applicable retirement system or in a |
17 | | participating system as defined in Article 20 of this Code on |
18 | | April 1 of the calendar year next following the calendar year |
19 | | in which the participant attains age 70 1/2, the annuity |
20 | | payment period shall begin on that date regardless of whether |
21 | | an application has been filed. |
22 | | The participant may elect, in the participant's written |
23 | | application for retirement, to receive a reduced retirement |
24 | | annuity payable for his or her life and to have a surviving |
25 | | spouse's annuity in a monthly amount equal to 50%, 75%, or 100% |
26 | | of that reduced monthly amount, to be paid to his or her |
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1 | | eligible surviving spouse, commencing upon the participant's |
2 | | death. |
3 | | When the final payment of the retirement annuity (or |
4 | | surviving spouse's annuity, if the participant elects to |
5 | | provide for a surviving spouse's annuity pursuant to this |
6 | | subsection) has been paid, the account shall be closed. When |
7 | | the participant has died and there are no longer any eligible |
8 | | survivors, any unused employee contributions shall be |
9 | | forfeited to the applicable retirement system. |
10 | | (h) Annual Increase in Retirement Annuity. The retirement |
11 | | annuity shall be subject to an automatic annual increase in an |
12 | | amount equal to 3% of the originally granted annuity on each |
13 | | January 1 occurring on or after the first anniversary of the |
14 | | annuity start date. Automatic annual increases in a surviving |
15 | | spouse's annuity provided under subsection (g) shall be in |
16 | | accordance with subsection (k-5) of this Section. |
17 | | (i) Disability Benefits. The disability benefits provided |
18 | | under the applicable retirement system apply to new cash |
19 | | balance plan participants and legacy Tier II participants in |
20 | | the cash balance plan, subject to and in accordance with the |
21 | | eligibility and other provisions of the applicable Article. |
22 | | Retirement due to disability under Section 15-153.2 or |
23 | | 16-149.2 shall be deemed a disability benefit for the purposes |
24 | | of this Section and shall apply to new cash balance plan |
25 | | participants and legacy Tier II participants. |
26 | | The board of the retirement system shall designate |
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1 | | annually, as a percentage of salary, an amount representing the |
2 | | anticipated average cost of providing disability benefits for |
3 | | participants. The amount so designated shall not exceed 1% of |
4 | | the participant's salary and shall be deducted annually from |
5 | | the account of each participant receiving salary. |
6 | | (j) Return to Service. Upon a return to service under the |
7 | | same retirement system after beginning to receive a retirement |
8 | | annuity under the cash balance plan, the retirement annuity |
9 | | shall be suspended and active participation in the cash balance |
10 | | plan shall resume. Upon termination of the employment, the |
11 | | retirement annuity shall resume in an amount to be recalculated |
12 | | in accordance with subsection (g), taking into effect the |
13 | | changes in the cash balance account. If a retired annuitant |
14 | | returns to service, his or her notional cash balance account |
15 | | shall thereupon be decreased by amounts representing each |
16 | | payment of retirement annuity following the latest retirement |
17 | | and preceding the return to service. |
18 | | (k) Surviving Spouse's Annuity - Death before Retirement. |
19 | | In the case of the death of a new cash balance plan participant |
20 | | or legacy Tier II participant who had less than 5 years of |
21 | | service under the applicable Article and had not begun |
22 | | receiving a retirement annuity or taken a refund under |
23 | | subsection (f-15), the eligible surviving spouse shall be |
24 | | entitled only to a refund of employee contributions under |
25 | | subsection (f-15). |
26 | | In the case of the death of a new cash balance plan |
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1 | | participant or legacy Tier II participant who had at least 5 |
2 | | years of service under the applicable Article and had not begun |
3 | | receiving a retirement annuity or taken a refund under |
4 | | subsection (f-15), the eligible surviving spouse shall, upon |
5 | | written application, be entitled to receive a surviving |
6 | | spouse's annuity beginning at age 59 1/2 (regardless of the |
7 | | existence of dependent eligible children). The surviving |
8 | | spouse's annuity shall be equal to 66 2/3% of the amount of |
9 | | retirement annuity that the deceased participant would have |
10 | | been entitled to if he or she had retired on the date of death |
11 | | having attained age 59 1/2 and without having elected to take a |
12 | | reduced annuity to provide a surviving spouse's annuity. |
13 | | At any time before beginning to receive a surviving |
14 | | spouse's annuity under this subsection, the eligible surviving |
15 | | spouse may claim a distribution under subsection (f-10) or a |
16 | | refund under subsection (f-15). The deceased participant's |
17 | | account shall continue to receive interest credit until the |
18 | | eligible surviving spouse begins to receive a surviving |
19 | | spouse's annuity or receives a refund of employee contributions |
20 | | under subsection (f-15). |
21 | | A surviving spouse's annuity provided under this |
22 | | subsection shall be a life annuity and shall not expire for the |
23 | | reason that the amount paid has reached or exceeded the account |
24 | | balance. When the final payment of the surviving spouse's |
25 | | annuity has been paid, the account shall be closed. When the |
26 | | participant has died and there are no longer any eligible |
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1 | | survivors, any unused employee contributions shall be |
2 | | forfeited to the applicable retirement system. |
3 | | (k-5) Annual Increase in Surviving Spouse's Annuity. A |
4 | | surviving spouse's annuity granted under subsection (g) or (k) |
5 | | shall be subject to an automatic annual increase in an amount |
6 | | equal to 3% of the originally granted annuity on each January 1 |
7 | | occurring on or after the first anniversary of the annuity |
8 | | start date. |
9 | | (l) Benefits for Eligible Children and Eligible Parents. |
10 | | Upon the death of a participant in the cash balance plan, an |
11 | | eligible child or eligible parent may be entitled to receive |
12 | | death benefits and survivors insurance benefits under Article |
13 | | 15 or survivors' benefits under Article 16 of this Code. These |
14 | | benefits shall be deemed to be "survivor benefits not based on |
15 | | the cash balance account" for the purposes of this Section. |
16 | | Eligibility for these benefits shall be determined under |
17 | | this Section and the applicable Article of this Code, including |
18 | | without limitation any provision restricting eligibility on |
19 | | the basis of (i) an election to receive a lump-sum death |
20 | | benefit or (ii) a permitted designation of a different or |
21 | | alternate beneficiary. |
22 | | The amount of these benefits shall be determined under this |
23 | | Section and the applicable Article of this Code, including |
24 | | without limitation any limitation on the minimum or maximum |
25 | | amount of such benefits, individually or in combination. In |
26 | | applying any limitation on the minimum or maximum amount of |
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1 | | such benefits that depends on the existence or amount of a |
2 | | benefit payable to the surviving spouse, the retirement system |
3 | | shall use the amount of surviving spouse annuity payable by the |
4 | | retirement system under this Section rather than the amount |
5 | | otherwise provided under the applicable Article. Under no |
6 | | circumstance shall the sum of the benefits payable to all |
7 | | eligible survivors of a particular deceased participant by the |
8 | | applicable retirement system in accordance with this Section |
9 | | exceed the sum of the benefits that would be payable to all |
10 | | eligible survivors if the deceased participant had not been |
11 | | subject to this Section. |
12 | | The board of the retirement system shall designate annually, as |
13 | | a percentage of salary, an amount representing the anticipated |
14 | | average cost of providing survivor benefits not based on the |
15 | | cash balance account for dependent children and dependent |
16 | | parents of deceased participants in the cash balance plan. The |
17 | | amount so designated shall not exceed XXX% of the cash balance |
18 | | plan participant's salary and shall be deducted annually from |
19 | | the account of each participant receiving salary. |
20 | | (m) Applicability of Provisions. The following provisions, |
21 | | if and as they exist in this Code, do not apply to participants |
22 | | in the cash balance plan with respect to participation in the |
23 | | cash balance plan, except as they are specifically provided for |
24 | | in this Section: |
25 | | (1) minimum service or vesting requirements (other |
26 | | than as provided in this Section); |
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1 | | (2) provisions limiting a retirement annuity to a |
2 | | specified percentage of salary; |
3 | | (3) provisions authorizing a minimum retirement or |
4 | | survivor's annuity or a supplemental annuity (except as |
5 | | provided in subsection (l) of this Section with respect to |
6 | | eligible children and eligible parents); |
7 | | (4) provisions authorizing any form of annuity not |
8 | | authorized under this Section; |
9 | | (5) provisions authorizing a reversionary annuity |
10 | | (other than a surviving spouse's annuity under subsection |
11 | | (g)); |
12 | | (6) provisions authorizing a refund of employee |
13 | | contributions upon termination of service (except as |
14 | | provided in this Section) or any lump-sum payout in lieu of |
15 | | a retirement annuity or survivor's benefit (other than |
16 | | lump-sum death benefits and other than the distribution |
17 | | under subsection (f-10) and the refund under subsection |
18 | | (f-15) of this Section); |
19 | | (7) provisions authorizing optional service credits or |
20 | | the payment of optional additional contributions (other |
21 | | than the optional employer contributions specifically |
22 | | authorized in subsection (e-1)); or |
23 | | (8) a level income option. |
24 | | The Retirement Systems Reciprocal Act applies to |
25 | | participants in the cash balance plan who qualify under Article |
26 | | 20 of this Code, but it does not affect the calculation of |
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1 | | benefits payable under this Section. |
2 | | The other provisions of this Code continue to apply to |
3 | | participants in the cash balance plan, to the extent that they |
4 | | do not conflict with this Section. In the case of a conflict |
5 | | between the provisions of this Section and any other provision |
6 | | of this Code, the provisions of this Section control. |
7 | | (n) Rules. The Board of Trustees of the applicable |
8 | | retirement system may adopt rules and procedures for the |
9 | | implementation of this Section, including but not limited to |
10 | | determinations of how to integrate the administration of this |
11 | | Section with the requirements of the applicable Article and any |
12 | | other applicable provisions of this Code.
|
13 | | (o) Actual Employer Contributions. Payment of employer |
14 | | contributions with respect to participants in the cash balance |
15 | | plan shall be the responsibility of the actual employer. These |
16 | | contributions shall be determined under and paid in accordance |
17 | | with the provisions of Sections 15-155 and 16-158. |
18 | | (p) Actual Optional Employer Contributions. An employer |
19 | | may agree with the applicable retirement system to make
|
20 | | optional employer contributions to the system on behalf of |
21 | | employees who are participants in the cash balance plan, to
the |
22 | | extent permitted by federal law and in accordance with the |
23 | | rules and procedures of the system. |
24 | | Any such agreement must apply to all employees of the |
25 | | employer who are participants in the cash balance plan. The |
26 | | agreement shall be filed in writing with the applicable |
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1 | | retirement system, and shall specify (i) the additional |
2 | | percentage of salary to be credited to the accounts of the |
3 | | employees, (ii) the period during which the optional employer |
4 | | contributions will apply, and (iii) that the employer agrees to |
5 | | pay to the applicable retirement system the employer's normal |
6 | | cost of the benefits resulting from those credited amounts, as |
7 | | well as any unfunded accrued liability resulting from the cost |
8 | | of those benefits, all as determined by the system in |
9 | | accordance with the applicable Article. |
10 | | (q) Prospective Modification. The provisions set forth in |
11 | | this Section are subject to prospective changes made by law |
12 | | provided that any such changes shall not apply to any benefits |
13 | | accrued under this Section prior to the effective date of any |
14 | | amendatory Act of the General Assembly. |
15 | | (r) Qualified Plan Status. No provision of this Section |
16 | | shall be interpreted in a way that would cause the applicable |
17 | | retirement system to cease to be a qualified plan under the |
18 | | Internal Revenue Code of 1986. |
19 | | (40 ILCS 5/2-105.1 new) |
20 | | Sec. 2-105.1. Tier I participant. "Tier I participant": A |
21 | | participant who first became a participant before January 1, |
22 | | 2011. |
23 | | (40 ILCS 5/2-105.2 new) |
24 | | Sec. 2-105.2. Tier I retiree. "Tier I retiree" means a |
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1 | | former Tier I participant who is receiving a retirement |
2 | | annuity.
|
3 | | (40 ILCS 5/2-108) (from Ch. 108 1/2, par. 2-108)
|
4 | | Sec. 2-108. Salary. "Salary": (1) For members of the |
5 | | General Assembly,
the total compensation paid to the member by |
6 | | the State for one
year of service, including the additional |
7 | | amounts, if any, paid to
the member as an officer pursuant to |
8 | | Section 1 of "An Act
in relation to the compensation and |
9 | | emoluments of the members of the
General Assembly", approved |
10 | | December 6, 1907, as now or hereafter
amended.
|
11 | | (2) For the State executive officers specified
in Section |
12 | | 2-105, the total compensation paid to the member for one year
|
13 | | of service.
|
14 | | (3) For members of the System who are participants under |
15 | | Section
2-117.1, or who are serving as Clerk or Assistant Clerk |
16 | | of the House of
Representatives or Secretary or Assistant |
17 | | Secretary of the Senate, the
total compensation paid to the |
18 | | member for one year of service, but not to
exceed the salary of |
19 | | the highest salaried officer of the General Assembly.
|
20 | | However, in the event that federal law results in any |
21 | | participant
receiving imputed income based on the value of |
22 | | group term life insurance
provided by the State, such imputed |
23 | | income shall not be included in salary
for the purposes of this |
24 | | Article.
|
25 | | Notwithstanding any other provision of this Code, the |
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1 | | salary of a Tier I participant for the purposes of this Code |
2 | | shall not exceed, for periods of service in a term of office |
3 | | beginning on or after the effective date of this amendatory Act |
4 | | of the 97th General Assembly, the annual contribution and |
5 | | benefit base established for the applicable year by the |
6 | | Commissioner of Social Security under the federal Social |
7 | | Security Act. |
8 | | (Source: P.A. 86-27; 86-273; 86-1028; 86-1488.)
|
9 | | (40 ILCS 5/2-119) (from Ch. 108 1/2, par. 2-119)
|
10 | | Sec. 2-119. Retirement annuity - conditions for |
11 | | eligibility. |
12 | | (a)
A participant whose service as a
member is terminated, |
13 | | regardless of age or cause, is entitled to a retirement
annuity |
14 | | beginning on the date specified by the participant in
a written |
15 | | application subject to the following conditions:
|
16 | | 1. The date the annuity begins does not precede
the |
17 | | date of final
termination of service, or is not more than |
18 | | 30 days before the receipt
of the application
by the board |
19 | | in the case of annuities based on disability or one year |
20 | | before
the receipt of the application in the case of |
21 | | annuities
based on attained age;
|
22 | | 2. The participant meets one of the following |
23 | | eligibility requirements: |
24 | | For a participant who first becomes a participant of |
25 | | this System before January 1, 2011 (the effective date of |
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1 | | Public Act 96-889):
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2 | | (A) He or she has attained age 55 and has at least |
3 | | 8 years of service credit;
|
4 | | (B) He or she has attained age 62 and terminated |
5 | | service after July 1,
1971 with at least 4 years of |
6 | | service credit; or
|
7 | | (C) He or she has completed 8 years of service and |
8 | | has become
permanently disabled and as a consequence, |
9 | | is unable to perform the duties
of his or her office.
|
10 | | For a participant who first becomes a participant of |
11 | | this System on or after January 1, 2011 (the effective date |
12 | | of Public Act 96-889), he or she has attained age 67 and |
13 | | has at least 8 years of service credit. |
14 | | (a-5) Notwithstanding subsection (a) of this Section, for a |
15 | | Tier I participant who begins receiving a retirement annuity |
16 | | under this Section after July 1, 2013: |
17 | | (1) If the Tier I participant is at least 45 years old |
18 | | on the effective date of this amendatory Act of the 97th |
19 | | General Assembly, then the references to age 55 and 62 in |
20 | | subsection (a) of this Section remain unchanged. |
21 | | (2) If the Tier I participant is at least 40 but less |
22 | | than 45 years old on the effective date of this amendatory |
23 | | Act of the 97th General Assembly, then the references to |
24 | | age 55 and 62 in subsection (a) of this Section are |
25 | | increased by one year. |
26 | | (3) If the Tier I participant is at least 35 but less |
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1 | | than 40 years old on the effective date of this amendatory |
2 | | Act of the 97th General Assembly, then the references to |
3 | | age 55 and 62 in subsection (a) of this Section are |
4 | | increased by 3 years. |
5 | | (4) If the Tier I participant is less than 35 years old |
6 | | on the effective date of this amendatory Act of the 97th |
7 | | General Assembly, then the references to age 55 and 62 in |
8 | | subsection (a) of this Section are increased by 5 years. |
9 | | Notwithstanding Section 1-103.1, this subsection (a-5) |
10 | | applies without regard to whether or not the Tier I member is |
11 | | in active service under this Article on or after the effective |
12 | | date of this amendatory Act of the 97th General Assembly. |
13 | | (a-5) A participant who first becomes a participant of this |
14 | | System on or after January 1, 2011 (the effective date of |
15 | | Public Act 96-889) who has attained age 62 and has at least 8 |
16 | | years of service credit may elect to receive the lower |
17 | | retirement annuity provided
in paragraph (c) of Section |
18 | | 2-119.01 of this Code. |
19 | | (b) A participant shall be considered permanently disabled |
20 | | only if:
(1) disability occurs while in service and is
of such |
21 | | a nature
as to prevent him or her from reasonably performing |
22 | | the duties of his
or her office at
the time; and (2) the board |
23 | | has received a written certificate by at
least 2 licensed |
24 | | physicians appointed by the board stating that the member is
|
25 | | disabled and that the disability is likely to be permanent.
|
26 | | (Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
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1 | | (40 ILCS 5/2-119.1) (from Ch. 108 1/2, par. 2-119.1)
|
2 | | Sec. 2-119.1. Automatic increase in retirement annuity.
|
3 | | (a) Except as provided in subsections (a-1) and (a-2), a A |
4 | | participant who retires after June 30, 1967, and who has not
|
5 | | received an initial increase under this Section before the |
6 | | effective date
of this amendatory Act of 1991, shall, in |
7 | | January or July next following
the first anniversary of |
8 | | retirement, whichever occurs first, and in the same
month of |
9 | | each year thereafter, but in no event prior to age 60, have the |
10 | | amount
of the originally granted retirement annuity increased |
11 | | as follows: for each
year through 1971, 1 1/2%; for each year |
12 | | from 1972 through 1979, 2%; and for
1980 and each year |
13 | | thereafter, 3%. Annuitants who have received an initial
|
14 | | increase under this subsection prior to the effective date of |
15 | | this amendatory
Act of 1991 shall continue to receive their |
16 | | annual increases in the same month
as the initial increase.
|
17 | | (a-1) Notwithstanding any other provision of this Article, |
18 | | for a Tier I retiree, the amount of each automatic annual |
19 | | increase in retirement annuity occurring on or after the |
20 | | effective date of this amendatory Act of the 97th General |
21 | | Assembly shall be the lesser of $750 or 3% of the total annuity
|
22 | | payable at the time of the increase, including previous |
23 | | increases granted. |
24 | | (a-2) Notwithstanding any other provision of this Article, |
25 | | for a Tier I retiree, the monthly retirement annuity shall |
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1 | | first be subject to annual increases on the January 1 occurring |
2 | | on or next after the attainment of age 67 or the January 1 |
3 | | occurring on or next after the fifth anniversary of the annuity |
4 | | start date, whichever occurs earlier. If on the effective date |
5 | | of this amendatory Act of the 97th General Assembly a Tier I |
6 | | retiree has already received an annual increase under this |
7 | | Section but does not yet meet the new eligibility requirements |
8 | | of this subsection, the annual increases already received shall |
9 | | continue in force, but no additional annual increase shall be |
10 | | granted until the Tier I retiree meets the new eligibility |
11 | | requirements. |
12 | | (a-3) Notwithstanding Section 1-103.1, subsections (a-1) |
13 | | and (a-2) apply without regard to whether or not the Tier I |
14 | | retiree is in active service under this Article on or after the |
15 | | effective date of this amendatory Act of the 97th General |
16 | | Assembly. |
17 | | (b) Beginning January 1, 1990, for eligible participants |
18 | | who remain
in service after attaining 20 years of creditable |
19 | | service, the 3% increases
provided under subsection (a) shall |
20 | | begin to accrue on the January 1 next
following the date upon |
21 | | which the participant (1) attains age 55, or (2)
attains 20 |
22 | | years of creditable service, whichever occurs later, and shall
|
23 | | continue to accrue while the participant remains in service; |
24 | | such increases
shall become payable on January 1 or July 1, |
25 | | whichever occurs first, next
following the first anniversary of |
26 | | retirement. For any person who has service
credit in the System |
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1 | | for the entire period from January 15, 1969 through
December |
2 | | 31, 1992, regardless of the date of termination of service, the
|
3 | | reference to age 55 in clause (1) of this subsection (b) shall |
4 | | be deemed to
mean age 50.
|
5 | | This subsection (b) does not apply to any person who first |
6 | | becomes a
member of the System after August 8, 2003 ( the |
7 | | effective date of Public Act 93-494) this amendatory Act of
the |
8 | | 93rd General Assembly .
|
9 | | (b-5) Notwithstanding any other provision of this Article, |
10 | | a participant who first becomes a participant on or after |
11 | | January 1, 2011 (the effective date of Public Act 96-889) |
12 | | shall, in January or July next following the first anniversary |
13 | | of retirement, whichever occurs first, and in the same month of |
14 | | each year thereafter, but in no event prior to age 67, have the |
15 | | amount of the originally granted retirement annuity then being |
16 | | paid increased by 3% or one-half the annual unadjusted |
17 | | percentage increase in the Consumer Price Index for All Urban |
18 | | Consumers as determined by the Public Pension Division of the |
19 | | Department of Insurance under subsection (a) of Section |
20 | | 2-108.1, whichever is less. The changes made to this subsection |
21 | | by this amendatory Act of the 97th General Assembly do not |
22 | | apply to any automatic annual increase granted under this |
23 | | subsection before the effective date of this amendatory Act. |
24 | | (c) The foregoing provisions relating to automatic |
25 | | increases are not
applicable to a participant who retires |
26 | | before having made contributions
(at the rate prescribed in |
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1 | | Section 2-126) for automatic increases for less
than the |
2 | | equivalent of one full year. However, in order to be eligible |
3 | | for
the automatic increases, such a participant may make |
4 | | arrangements to pay
to the system the amount required to bring |
5 | | the total contributions for the
automatic increase to the |
6 | | equivalent of one year's contributions based upon
his or her |
7 | | last salary.
|
8 | | (d) A participant who terminated service prior to July 1, |
9 | | 1967, with at
least 14 years of service is entitled to an |
10 | | increase in retirement annuity
beginning January, 1976, and to |
11 | | additional increases in January of each
year thereafter.
|
12 | | The initial increase shall be 1 1/2% of the originally |
13 | | granted retirement
annuity multiplied by the number of full |
14 | | years that the annuitant was in
receipt of such annuity prior |
15 | | to January 1, 1972, plus 2% of the originally
granted |
16 | | retirement annuity for each year after that date. The |
17 | | subsequent
annual increases shall be at the rate of 2% of the |
18 | | originally granted
retirement annuity for each year through |
19 | | 1979 and at the rate of 3% for
1980 and thereafter.
|
20 | | (e) Beginning January 1, 1990, all automatic annual |
21 | | increases payable
under this Section shall be calculated as a |
22 | | percentage of the total annuity
payable at the time of the |
23 | | increase, including previous increases granted
under this |
24 | | Article.
|
25 | | (Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
|
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1 | | (40 ILCS 5/2-121.1) (from Ch. 108 1/2, par. 2-121.1)
|
2 | | Sec. 2-121.1. Survivor's annuity - amount.
|
3 | | (a) A surviving spouse shall be entitled to 66 2/3% of the |
4 | | amount of
retirement annuity to which the participant or |
5 | | annuitant was entitled on
the date of death, without regard to |
6 | | whether the participant had attained
age 55 prior to his or her |
7 | | death, subject to a minimum payment of 10% of
salary. If a |
8 | | surviving spouse, regardless of age, has in his or her care
at |
9 | | the date of death any eligible child or children of the |
10 | | participant, the
survivor's annuity shall be the greater of the |
11 | | following: (1) 66 2/3% of
the amount of retirement annuity to |
12 | | which the participant or annuitant was
entitled on the date of |
13 | | death, or (2) 30% of the participant's salary
increased by 10% |
14 | | of salary on account of each such child, subject to a
total |
15 | | payment for the surviving spouse and children of 50% of salary. |
16 | | If
eligible children survive but there is no surviving spouse, |
17 | | or if the
surviving spouse dies or becomes disqualified by
|
18 | | remarriage while eligible children survive, each
eligible |
19 | | child shall be entitled to an annuity of 20% of salary, subject
|
20 | | to a maximum total payment for all such children of 50% of |
21 | | salary.
|
22 | | However, the survivor's annuity payable under this Section |
23 | | shall not be
less than 100% of the amount of retirement annuity |
24 | | to which the participant
or annuitant was entitled on the date |
25 | | of death, if he or she is survived by
a dependent disabled |
26 | | child.
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1 | | The salary to be used for determining these benefits shall |
2 | | be the
salary used for determining the amount of retirement |
3 | | annuity as provided
in Section 2-119.01.
|
4 | | (b) Upon the death of a participant after the termination |
5 | | of service or
upon death of an annuitant, the maximum total |
6 | | payment to a surviving spouse
and eligible children, or to |
7 | | eligible children alone if there is no surviving
spouse, shall |
8 | | be 75% of the retirement annuity to which the participant
or |
9 | | annuitant was entitled, unless there is a dependent disabled |
10 | | child
among the survivors.
|
11 | | (c) When a child ceases to be an eligible child, the |
12 | | annuity to that
child, or to the surviving spouse on account of |
13 | | that child, shall thereupon
cease, and the annuity payable to |
14 | | the surviving spouse or other eligible
children shall be |
15 | | recalculated if necessary.
|
16 | | Upon the ineligibility of the last eligible child, the |
17 | | annuity shall
immediately revert to the amount payable upon |
18 | | death of a participant or
annuitant who leaves no eligible |
19 | | children. If the surviving spouse is then
under age 50, the |
20 | | annuity as revised shall be deferred until the attainment
of |
21 | | age 50.
|
22 | | (d) Beginning January 1, 1990, every survivor's annuity |
23 | | shall be increased
(1) on each January 1 occurring on or after |
24 | | the commencement of the annuity if
the deceased member died |
25 | | while receiving a retirement annuity, or (2) in
other cases, on |
26 | | each January 1 occurring on or after the first anniversary
of |
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1 | | the commencement of the annuity, by an amount equal to 3% of |
2 | | the current
amount of the annuity, including any previous |
3 | | increases under this Article.
Such increases shall apply |
4 | | without regard to whether the deceased member
was in service on |
5 | | or after the effective date of this amendatory Act of
1991, but |
6 | | shall not accrue for any period prior to January 1, 1990.
|
7 | | (d-5) Notwithstanding any other provision of this Article, |
8 | | the initial survivor's annuity of a survivor of a participant |
9 | | who first becomes a participant on or after January 1, 2011 |
10 | | (the effective date of Public Act 96-889) shall be in the |
11 | | amount of 66 2/3% of the amount of the retirement annuity to |
12 | | which the participant or annuitant was entitled on the date of |
13 | | death and shall be increased (1) on each January 1 occurring on |
14 | | or after the commencement of the annuity if
the deceased member |
15 | | died while receiving a retirement annuity or (2) in
other |
16 | | cases, on each January 1 occurring on or after the first |
17 | | anniversary
of the commencement of the annuity, by an amount |
18 | | equal to 3% or one-half the annual unadjusted percentage |
19 | | increase in the Consumer Price Index for All Urban Consumers as |
20 | | determined by the Public Pension Division of the Department of |
21 | | Insurance under subsection (a) of Section 2-108.1, whichever is |
22 | | less, of the originally granted survivor's annuity then being |
23 | | paid . The changes made to this subsection by this amendatory |
24 | | Act of the 97th General Assembly do not apply to any automatic |
25 | | annual increase granted under this subsection before the |
26 | | effective date of this amendatory Act. |
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1 | | (e) Notwithstanding any other provision of this Article, |
2 | | beginning
January 1, 1990, the minimum survivor's annuity |
3 | | payable to any person who
is entitled to receive a survivor's |
4 | | annuity under this Article shall be
$300 per month, without |
5 | | regard to whether or not the deceased participant
was in |
6 | | service on the effective date of this amendatory Act of 1989.
|
7 | | (f) In the case of a proportional survivor's annuity |
8 | | arising under
the Retirement Systems Reciprocal Act where the |
9 | | amount payable by the
System on January 1, 1993 is less than |
10 | | $300 per month, the amount payable
by the System shall be |
11 | | increased beginning on that date by a monthly amount
equal to |
12 | | $2 for each full year that has expired since the annuity began.
|
13 | | (Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
|
14 | | (40 ILCS 5/2-124) (from Ch. 108 1/2, par. 2-124)
|
15 | | Sec. 2-124. Contributions by State.
|
16 | | (a) The State shall make contributions to the System by
|
17 | | appropriations of amounts which, together with the |
18 | | contributions of
participants, interest earned on investments, |
19 | | and other income
will meet the cost of maintaining and |
20 | | administering the System on a 100% 90%
funded basis in |
21 | | accordance with actuarial recommendations by the end of State |
22 | | fiscal year 2043 .
|
23 | | (b) The Board shall determine the amount of State
|
24 | | contributions required for each fiscal year on the basis of the
|
25 | | actuarial tables and other assumptions adopted by the Board and |
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1 | | the
prescribed rate of interest, using the formula in |
2 | | subsection (c).
|
3 | | (c) For State fiscal years 2014 through 2043, the minimum |
4 | | contribution
to the System to be made by the State for each |
5 | | fiscal year shall be an amount
determined by the System to be |
6 | | equal to the sum of (1) the State's portion of the projected |
7 | | normal cost for that fiscal year, plus (2) an amount sufficient |
8 | | to bring the total assets of the
System up to 100% of the total |
9 | | actuarial liabilities of the System by the end of
State fiscal |
10 | | year 2043. In making these determinations, the required State
|
11 | | contribution shall be calculated each year as a level |
12 | | percentage of payroll
over the years remaining to and including |
13 | | fiscal year 2043 and shall be
determined under the projected |
14 | | unit credit actuarial cost method. |
15 | | For State fiscal years 2012 and 2013 through 2045 , the |
16 | | minimum contribution
to the System to be made by the State for |
17 | | each fiscal year shall be an amount
determined by the System to |
18 | | be sufficient to bring the total assets of the
System up to 90% |
19 | | of the total actuarial liabilities of the System by the end of
|
20 | | State fiscal year 2045. In making these determinations, the |
21 | | required State
contribution shall be calculated each year as a |
22 | | level percentage of payroll
over the years remaining to and |
23 | | including fiscal year 2045 and shall be
determined under the |
24 | | projected unit credit actuarial cost method.
|
25 | | For State fiscal years 1996 through 2005, the State |
26 | | contribution to
the System, as a percentage of the applicable |
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1 | | employee payroll, shall be
increased in equal annual increments |
2 | | so that by State fiscal year 2011, the
State is contributing at |
3 | | the rate required under this Section.
|
4 | | Notwithstanding any other provision of this Article, the |
5 | | total required State
contribution for State fiscal year 2006 is |
6 | | $4,157,000.
|
7 | | Notwithstanding any other provision of this Article, the |
8 | | total required State
contribution for State fiscal year 2007 is |
9 | | $5,220,300.
|
10 | | For each of State fiscal years 2008 through 2009, the State |
11 | | contribution to
the System, as a percentage of the applicable |
12 | | employee payroll, shall be
increased in equal annual increments |
13 | | from the required State contribution for State fiscal year |
14 | | 2007, so that by State fiscal year 2011, the
State is |
15 | | contributing at the rate otherwise required under this Section.
|
16 | | Notwithstanding any other provision of this Article, the |
17 | | total required State contribution for State fiscal year 2010 is |
18 | | $10,454,000 and shall be made from the proceeds of bonds sold |
19 | | in fiscal year 2010 pursuant to Section 7.2 of the General |
20 | | Obligation Bond Act, less (i) the pro rata share of bond sale |
21 | | expenses determined by the System's share of total bond |
22 | | proceeds, (ii) any amounts received from the General Revenue |
23 | | Fund in fiscal year 2010, and (iii) any reduction in bond |
24 | | proceeds due to the issuance of discounted bonds, if |
25 | | applicable. |
26 | | Notwithstanding any other provision of this Article, the
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1 | | total required State contribution for State fiscal year 2011 is
|
2 | | the amount recertified by the System on or before April 1, 2011 |
3 | | pursuant to Section 2-134 and shall be made from the proceeds |
4 | | of bonds sold
in fiscal year 2011 pursuant to Section 7.2 of |
5 | | the General
Obligation Bond Act, less (i) the pro rata share of |
6 | | bond sale
expenses determined by the System's share of total |
7 | | bond
proceeds, (ii) any amounts received from the General |
8 | | Revenue
Fund in fiscal year 2011, and (iii) any reduction in |
9 | | bond
proceeds due to the issuance of discounted bonds, if
|
10 | | applicable. |
11 | | Beginning in State fiscal year 2044, the minimum State |
12 | | contribution for each fiscal year shall be the amount needed to |
13 | | maintain the total assets of the System at 100% of the total |
14 | | actuarial liabilities of the System. |
15 | | Beginning in State fiscal year 2046, the minimum State |
16 | | contribution for
each fiscal year shall be the amount needed to |
17 | | maintain the total assets of
the System at 90% of the total |
18 | | actuarial liabilities of the System.
|
19 | | Amounts received by the System pursuant to Section 25 of |
20 | | the Budget Stabilization Act or Section 8.12 of the State |
21 | | Finance Act in any fiscal year do not reduce and do not |
22 | | constitute payment of any portion of the minimum State |
23 | | contribution required under this Article in that fiscal year. |
24 | | Such amounts shall not reduce, and shall not be included in the |
25 | | calculation of, the required State contributions under this |
26 | | Article in any future year until the System has reached a |
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1 | | funding ratio of at least 100% 90% . A reference in this Article |
2 | | to the "required State contribution" or any substantially |
3 | | similar term does not include or apply to any amounts payable |
4 | | to the System under Section 25 of the Budget Stabilization Act.
|
5 | | Notwithstanding any other provision of this Section, the |
6 | | required State
contribution for State fiscal year 2005 and for |
7 | | fiscal year 2008 and each fiscal year thereafter through State |
8 | | fiscal year 2013 , as
calculated under this Section and
|
9 | | certified under Section 2-134, shall not exceed an amount equal |
10 | | to (i) the
amount of the required State contribution that would |
11 | | have been calculated under
this Section for that fiscal year if |
12 | | the System had not received any payments
under subsection (d) |
13 | | of Section 7.2 of the General Obligation Bond Act, minus
(ii) |
14 | | the portion of the State's total debt service payments for that |
15 | | fiscal
year on the bonds issued in fiscal year 2003 for the |
16 | | purposes of that Section 7.2, as determined
and certified by |
17 | | the Comptroller, that is the same as the System's portion of
|
18 | | the total moneys distributed under subsection (d) of Section |
19 | | 7.2 of the General
Obligation Bond Act. In determining this |
20 | | maximum for State fiscal years 2008 through 2010, however, the |
21 | | amount referred to in item (i) shall be increased, as a |
22 | | percentage of the applicable employee payroll, in equal |
23 | | increments calculated from the sum of the required State |
24 | | contribution for State fiscal year 2007 plus the applicable |
25 | | portion of the State's total debt service payments for fiscal |
26 | | year 2007 on the bonds issued in fiscal year 2003 for the |
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1 | | purposes of Section 7.2 of the General
Obligation Bond Act, so |
2 | | that, by State fiscal year 2011, the
State is contributing at |
3 | | the rate otherwise required under this Section.
|
4 | | (d) For purposes of determining the required State |
5 | | contribution to the System, the value of the System's assets |
6 | | shall be equal to the actuarial value of the System's assets, |
7 | | which shall be calculated as follows: |
8 | | As of June 30, 2008, the actuarial value of the System's |
9 | | assets shall be equal to the market value of the assets as of |
10 | | that date. In determining the actuarial value of the System's |
11 | | assets for fiscal years after June 30, 2008, any actuarial |
12 | | gains or losses from investment return incurred in a fiscal |
13 | | year shall be recognized in equal annual amounts over the |
14 | | 5-year period following that fiscal year. |
15 | | (e) For purposes of determining the required State |
16 | | contribution to the system for a particular year, the actuarial |
17 | | value of assets shall be assumed to earn a rate of return equal |
18 | | to the system's actuarially assumed rate of return. |
19 | | (Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11; |
20 | | 96-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-813, eff. |
21 | | 7-13-12.)
|
22 | | (40 ILCS 5/2-125) (from Ch. 108 1/2, par. 2-125)
|
23 | | Sec. 2-125. Obligations of State ; funding guarantee . |
24 | | (a) The payment of (1) the required State contributions, |
25 | | (2) all benefits
granted under this system and (3) all expenses |
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1 | | of administration and
operation are obligations of the State to |
2 | | the extent specified in this
Article.
|
3 | | (b) All income, interest and dividends derived from |
4 | | deposits and investments
shall be credited to the account of |
5 | | the system in the State Treasury and
used to pay benefits under |
6 | | this Article.
|
7 | | (c) Beginning July 1, 2013, the State shall be |
8 | | contractually obligated to contribute to the System under |
9 | | Section 2-124 in each State fiscal year an amount not less than |
10 | | the sum of (i) the State's normal cost for that year and
(ii) |
11 | | the portion of the unfunded accrued liability assigned to that |
12 | | year by law in accordance with a schedule that distributes |
13 | | payments equitably over a reasonable period of time and in |
14 | | accordance with accepted actuarial practices. The obligations |
15 | | created under this subsection (c) are contractual obligations |
16 | | protected and enforceable under Article I, Section 16 and |
17 | | Article XIII, Section 5 of the Illinois Constitution. |
18 | | Notwithstanding any other provision of law, if the State |
19 | | fails to pay in a State fiscal year the amount guaranteed under |
20 | | this subsection, the System may bring a mandamus action in the |
21 | | Circuit Court of Sangamon County to compel the State to make |
22 | | that payment, irrespective of other remedies that
may be |
23 | | available to the System. In ordering the State to make the |
24 | | required payment, the court may order a reasonable payment |
25 | | schedule to enable the State to make the required payment |
26 | | without significantly imperiling the public health, safety, or |
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1 | | welfare. |
2 | | (Source: P.A. 83-1440.)
|
3 | | (40 ILCS 5/2-126) (from Ch. 108 1/2, par. 2-126)
|
4 | | Sec. 2-126. Contributions by participants.
|
5 | | (a) Each participant shall contribute toward the cost of |
6 | | his or her
retirement annuity a percentage of each payment of |
7 | | salary received by him or
her for service as a member as |
8 | | follows: for service between October 31, 1947
and January 1, |
9 | | 1959, 5%; for service between January 1, 1959 and June 30, |
10 | | 1969,
6%; for service between July 1, 1969 and January 10, |
11 | | 1973, 6 1/2%; for service
after January 10, 1973, 7%; for |
12 | | service after December 31, 1981, 8 1/2%.
|
13 | | (a-5) In addition to the contributions otherwise required |
14 | | under this Article, each Tier I participant shall also make the |
15 | | following contributions toward the cost of his or her |
16 | | retirement annuity from each payment
of salary received by him |
17 | | or her for service as a member: |
18 | | (1) beginning July 1, 2013 and through June 30, 2014, |
19 | | 1% of salary; and |
20 | | (2) beginning on July 1, 2014, 2% of salary. |
21 | | (b) Beginning August 2, 1949, each male participant, and |
22 | | from July 1,
1971, each female participant shall contribute |
23 | | towards the cost of the
survivor's annuity 2% of salary.
|
24 | | A participant who has no eligible survivor's annuity |
25 | | beneficiary may elect
to cease making contributions for |
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1 | | survivor's annuity under this subsection.
A survivor's annuity |
2 | | shall not be payable upon the death of a person who has
made |
3 | | this election, unless prior to that death the election has been |
4 | | revoked
and the amount of the contributions that would have |
5 | | been paid under this
subsection in the absence of the election |
6 | | is paid to the System, together
with interest at the rate of 4% |
7 | | per year from the date the contributions
would have been made |
8 | | to the date of payment.
|
9 | | (c) Beginning July 1, 1967, each participant shall |
10 | | contribute 1% of
salary towards the cost of automatic increase |
11 | | in annuity provided in
Section 2-119.1. These contributions |
12 | | shall be made concurrently with
contributions for retirement |
13 | | annuity purposes.
|
14 | | (d) In addition, each participant serving as an officer of |
15 | | the General
Assembly shall contribute, for the same purposes |
16 | | and at the same rates
as are required of a regular participant, |
17 | | on each additional payment
received as an officer. If the |
18 | | participant serves as an
officer for at least 2 but less than 4 |
19 | | years, he or she shall
contribute an amount equal to the amount |
20 | | that would have been contributed
had the participant served as |
21 | | an officer for 4 years. Persons who serve
as officers in the |
22 | | 87th General Assembly but cannot receive the additional
payment |
23 | | to officers because of the ban on increases in salary during |
24 | | their
terms may nonetheless make contributions based on those |
25 | | additional payments
for the purpose of having the additional |
26 | | payments included in their highest
salary for annuity purposes; |
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1 | | however, persons electing to make these
additional |
2 | | contributions must also pay an amount representing the
|
3 | | corresponding employer contributions, as calculated by the |
4 | | System.
|
5 | | (e) Notwithstanding any other provision of this Article, |
6 | | the required contribution of a participant who first becomes a |
7 | | participant on or after January 1, 2011 shall not exceed the |
8 | | contribution that would be due under this Article if that |
9 | | participant's highest salary for annuity purposes were |
10 | | $106,800, plus any increases in that amount under Section |
11 | | 2-108.1. |
12 | | (Source: P.A. 96-1490, eff. 1-1-11.)
|
13 | | (40 ILCS 5/2-134)
(from Ch. 108 1/2, par. 2-134)
|
14 | | Sec. 2-134. To certify required State contributions and |
15 | | submit vouchers.
|
16 | | (a) The Board shall certify to the Governor on or before |
17 | | December 15 of each
year through until December 15, 2011 the |
18 | | amount of the required State contribution to the System for the |
19 | | next
fiscal year and shall specifically identify the System's |
20 | | projected State normal cost for that fiscal year . The |
21 | | certification shall include a copy of the actuarial
|
22 | | recommendations upon which it is based and shall specifically |
23 | | identify the System's projected State normal cost for that |
24 | | fiscal year .
|
25 | | (a-5) On or before November 1 of each year, beginning |
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1 | | November 1, 2012, the Board shall submit to the State Actuary, |
2 | | the Governor, and the General Assembly a proposed certification |
3 | | of the amount of the required State contribution to the System |
4 | | for the next fiscal year, along with all of the actuarial |
5 | | assumptions, calculations, and data upon which that proposed |
6 | | certification is based. On or before January 1 of each year , |
7 | | beginning January 1, 2013, the State Actuary shall issue a |
8 | | preliminary report concerning the proposed certification and |
9 | | identifying, if necessary, recommended changes in actuarial |
10 | | assumptions that the Board must consider before finalizing its |
11 | | certification of the required State contributions. |
12 | | On or before January 15, 2013 and every January 15 |
13 | | thereafter, the Board shall certify to the Governor and the |
14 | | General Assembly the amount of the required State contribution |
15 | | for the next fiscal year. The Board's certification shall |
16 | | include a copy of the actuarial recommendations upon which it |
17 | | is based and shall specifically identify the System's projected |
18 | | State normal cost for that fiscal year. The Board's |
19 | | certification must note any deviations from the State Actuary's |
20 | | recommended changes, the reason or reasons for not following |
21 | | the State Actuary's recommended changes, and the fiscal impact |
22 | | of not following the State Actuary's recommended changes on the |
23 | | required State contribution. |
24 | | (a-7) On or before May 1, 2004, the Board shall recalculate |
25 | | and recertify to
the Governor the amount of the required State |
26 | | contribution to the System for
State fiscal year 2005, taking |
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1 | | into account the amounts appropriated to and
received by the |
2 | | System under subsection (d) of Section 7.2 of the General
|
3 | | Obligation Bond Act.
|
4 | | On or before July 1, 2005, the Board shall recalculate and |
5 | | recertify
to the Governor the amount of the required State
|
6 | | contribution to the System for State fiscal year 2006, taking |
7 | | into account the changes in required State contributions made |
8 | | by this amendatory Act of the 94th General Assembly.
|
9 | | On or before April 1, 2011, the Board shall recalculate and |
10 | | recertify to the Governor the amount of the required State |
11 | | contribution to the System for State fiscal year 2011, applying |
12 | | the changes made by Public Act 96-889 to the System's assets |
13 | | and liabilities as of June 30, 2009 as though Public Act 96-889 |
14 | | was approved on that date. |
15 | | On or before July 1, 2013, the Board shall, if necessary, |
16 | | recalculate and recertify
to the Governor the amount of the |
17 | | required State
contribution to the System for State fiscal year |
18 | | 2014, taking into account the changes in required State |
19 | | contributions made by this amendatory Act of the 97th General |
20 | | Assembly. |
21 | | (b) Beginning in State fiscal year 1996, on or as soon as |
22 | | possible after the
15th day of each month the Board shall |
23 | | submit vouchers for payment of State
contributions to the |
24 | | System, in a total monthly amount of one-twelfth of the
|
25 | | required annual State contribution certified under subsection |
26 | | (a).
From the effective date of this amendatory Act
of the 93rd |
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1 | | General Assembly through June 30, 2004, the Board shall not
|
2 | | submit vouchers for the remainder of fiscal year 2004 in excess |
3 | | of the
fiscal year 2004 certified contribution amount |
4 | | determined
under this Section after taking into consideration |
5 | | the transfer to the
System under subsection (d) of Section |
6 | | 6z-61 of the State Finance Act.
These
vouchers shall be paid by |
7 | | the State Comptroller and Treasurer by warrants drawn
on the |
8 | | funds appropriated to the System for that fiscal year. If in |
9 | | any month
the amount remaining unexpended from all other |
10 | | appropriations to the System for
the applicable fiscal year |
11 | | (including the appropriations to the System under
Section 8.12 |
12 | | of the State Finance Act and Section 1 of the State Pension |
13 | | Funds
Continuing Appropriation Act) is less than the amount |
14 | | lawfully vouchered under
this Section, the difference shall be |
15 | | paid from the General Revenue Fund under
the continuing |
16 | | appropriation authority provided in Section 1.1 of the State
|
17 | | Pension Funds Continuing Appropriation Act.
|
18 | | (c) The full amount of any annual appropriation for the |
19 | | System for
State fiscal year 1995 shall be transferred and made |
20 | | available to the System
at the beginning of that fiscal year at |
21 | | the request of the Board.
Any excess funds remaining at the end |
22 | | of any fiscal year from appropriations
shall be retained by the |
23 | | System as a general reserve to meet the System's
accrued |
24 | | liabilities.
|
25 | | (Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11; |
26 | | 97-694, eff. 6-18-12.)
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1 | | (40 ILCS 5/2-162)
|
2 | | Sec. 2-162. Application and expiration of new benefit |
3 | | increases. |
4 | | (a) As used in this Section, "new benefit increase" means |
5 | | an increase in the amount of any benefit provided under this |
6 | | Article, or an expansion of the conditions of eligibility for |
7 | | any benefit under this Article, that results from an amendment |
8 | | to this Code that takes effect after the effective date of this |
9 | | amendatory Act of the 94th General Assembly. "New benefit |
10 | | increase", however, does not include any benefit increase |
11 | | resulting from the changes made to this Article by this |
12 | | amendatory Act of the 97th General Assembly. |
13 | | (b) Notwithstanding any other provision of this Code or any |
14 | | subsequent amendment to this Code, every new benefit increase |
15 | | is subject to this Section and shall be deemed to be granted |
16 | | only in conformance with and contingent upon compliance with |
17 | | the provisions of this Section.
|
18 | | (c) The Public Act enacting a new benefit increase must |
19 | | identify and provide for payment to the System of additional |
20 | | funding at least sufficient to fund the resulting annual |
21 | | increase in cost to the System as it accrues. |
22 | | Every new benefit increase is contingent upon the General |
23 | | Assembly providing the additional funding required under this |
24 | | subsection. The Commission on Government Forecasting and |
25 | | Accountability shall analyze whether adequate additional |
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1 | | funding has been provided for the new benefit increase and |
2 | | shall report its analysis to the Public Pension Division of the |
3 | | Department of Financial and Professional Regulation. A new |
4 | | benefit increase created by a Public Act that does not include |
5 | | the additional funding required under this subsection is null |
6 | | and void. If the Public Pension Division determines that the |
7 | | additional funding provided for a new benefit increase under |
8 | | this subsection is or has become inadequate, it may so certify |
9 | | to the Governor and the State Comptroller and, in the absence |
10 | | of corrective action by the General Assembly, the new benefit |
11 | | increase shall expire at the end of the fiscal year in which |
12 | | the certification is made.
|
13 | | (d) Every new benefit increase shall expire 5 years after |
14 | | its effective date or on such earlier date as may be specified |
15 | | in the language enacting the new benefit increase or provided |
16 | | under subsection (c). This does not prevent the General |
17 | | Assembly from extending or re-creating a new benefit increase |
18 | | by law. |
19 | | (e) Except as otherwise provided in the language creating |
20 | | the new benefit increase, a new benefit increase that expires |
21 | | under this Section continues to apply to persons who applied |
22 | | and qualified for the affected benefit while the new benefit |
23 | | increase was in effect and to the affected beneficiaries and |
24 | | alternate payees of such persons, but does not apply to any |
25 | | other person, including without limitation a person who |
26 | | continues in service after the expiration date and did not |
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1 | | apply and qualify for the affected benefit while the new |
2 | | benefit increase was in effect.
|
3 | | (Source: P.A. 94-4, eff. 6-1-05.)
|
4 | | (40 ILCS 5/14-103.10) (from Ch. 108 1/2, par. 14-103.10)
|
5 | | Sec. 14-103.10. Compensation.
|
6 | | (a) For periods of service prior to January 1, 1978, the |
7 | | full rate of salary
or wages payable to an employee for |
8 | | personal services performed if he worked
the full normal |
9 | | working period for his position, subject to the following
|
10 | | maximum amounts: (1) prior to July 1, 1951, $400 per month or |
11 | | $4,800 per year;
(2) between July 1, 1951 and June 30, 1957 |
12 | | inclusive, $625 per month or $7,500
per year; (3) beginning |
13 | | July 1, 1957, no limitation.
|
14 | | In the case of service of an employee in a position |
15 | | involving
part-time employment, compensation shall be |
16 | | determined according to the
employees' earnings record.
|
17 | | (b) For periods of service on and after January 1, 1978, |
18 | | all
remuneration for personal services performed defined as |
19 | | "wages" under
the Social Security Enabling Act, including that |
20 | | part of such
remuneration which is in excess of any maximum |
21 | | limitation provided in
such Act, and including any benefits |
22 | | received by an employee under a sick
pay plan in effect before |
23 | | January 1, 1981, but excluding lump sum salary
payments:
|
24 | | (1) for vacation,
|
25 | | (2) for accumulated unused sick leave,
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1 | | (3) upon discharge or dismissal,
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2 | | (4) for approved holidays.
|
3 | | (c) For periods of service on or after December 16, 1978, |
4 | | compensation
also includes any benefits, other than lump sum |
5 | | salary payments made at
termination of employment, which an |
6 | | employee receives or is eligible to
receive under a sick pay |
7 | | plan authorized by law.
|
8 | | (d) For periods of service after September 30, 1985, |
9 | | compensation also
includes any remuneration for personal |
10 | | services not included as "wages"
under the Social Security |
11 | | Enabling Act, which is deducted for purposes of
participation |
12 | | in a program established pursuant to Section 125 of the
|
13 | | Internal Revenue Code or its successor laws.
|
14 | | (e) For members for which Section 1-160 applies for periods |
15 | | of service on and after January 1, 2011, all remuneration for |
16 | | personal services performed defined as "wages" under the Social |
17 | | Security Enabling Act, excluding remuneration that is in excess |
18 | | of the annual earnings, salary, or wages of a member or |
19 | | participant, as provided in subsection (b-5) of Section 1-160, |
20 | | but including any benefits received by an employee under a sick |
21 | | pay plan in effect before January 1, 1981.
Compensation shall |
22 | | exclude lump sum salary payments: |
23 | | (1) for vacation; |
24 | | (2) for accumulated unused sick leave; |
25 | | (3) upon discharge or dismissal; and |
26 | | (4) for approved holidays. |
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1 | | (f) Notwithstanding any other provision of this Code, the |
2 | | compensation of a Tier I member for the purposes of this Code |
3 | | shall not exceed, for periods of service on or after the |
4 | | effective date of this amendatory Act of the 97th General |
5 | | Assembly, the annual contribution and benefit base established |
6 | | for the applicable year by the Commissioner of Social Security |
7 | | under the federal Social Security Act; except that this |
8 | | limitation does not apply to a member's compensation that is |
9 | | determined under an employment contract or collective |
10 | | bargaining agreement that is in effect on the effective date of |
11 | | this amendatory Act of the 97th General Assembly and has not |
12 | | been amended or renewed after that date. |
13 | | (Source: P.A. 96-1490, eff. 1-1-11.)
|
14 | | (40 ILCS 5/14-103.40 new) |
15 | | Sec. 14-103.40. Tier I member. "Tier I member": A member of |
16 | | this System who first became a member or participant before |
17 | | January 1, 2011 under any reciprocal retirement system or |
18 | | pension fund established under this Code other than a |
19 | | retirement system or pension fund established under Article 2, |
20 | | 3, 4, 5, 6, or 18 of this Code. |
21 | | (40 ILCS 5/14-103.41 new) |
22 | | Sec. 14-103.41. Tier I retiree. "Tier I retiree": A former |
23 | | Tier I member who is receiving a retirement annuity.
|
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1 | | (40 ILCS 5/14-107) (from Ch. 108 1/2, par. 14-107)
|
2 | | Sec. 14-107. Retirement annuity - service and age - |
3 | | conditions. |
4 | | (a) A member is entitled to a retirement annuity after |
5 | | having at least 8 years of
creditable service.
|
6 | | (b) A member who has at least 35 years of creditable |
7 | | service may claim his
or her retirement annuity at any age.
A |
8 | | member having at least 8 years of creditable service but less |
9 | | than 35 may
claim his or her retirement annuity upon or after |
10 | | attainment of age 60
or, beginning January 1, 2001, any lesser |
11 | | age which, when added to the
number of years of his or her |
12 | | creditable service, equals at least 85.
A member upon or after |
13 | | attainment of age 55 having at least 25 years of creditable |
14 | | service (30 years if retirement is before
January 1, 2001) may |
15 | | elect to receive the lower retirement annuity provided
in |
16 | | paragraph (c) of Section 14-108 of this Code. For purposes of |
17 | | the rule
of 85, portions of years shall be counted in whole |
18 | | months.
|
19 | | (c) Notwithstanding subsection (b) of this Section, for a |
20 | | Tier I member who begins receiving a retirement annuity under |
21 | | this Article after July 1, 2013: |
22 | | (1) If the Tier I member is at least 45 years old on |
23 | | the effective date of this amendatory Act of the 97th |
24 | | General Assembly, then the references to age 55 and 60 in |
25 | | subsection (b) of this Section remain unchanged and the |
26 | | references to 85 in subsection (b) of this Section remain |
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1 | | unchanged. |
2 | | (2) If the Tier I member is at least 40 but less than |
3 | | 45 years old on the effective date of this amendatory Act |
4 | | of the 97th General Assembly, then the references to age 55 |
5 | | and 60 in subsection (b) of this Section are increased by |
6 | | one year and the references to 85 in subsection (b) are |
7 | | increased to 87. |
8 | | (3) If the Tier I member is at least 35 but less than |
9 | | 40 years old on the effective date of this amendatory Act |
10 | | of the 97th General Assembly, then the references to age 55 |
11 | | and 60 in subsection (b) of this Section are increased by 3 |
12 | | years and the references to 85 in subsection (b) are |
13 | | increased to 91. |
14 | | (4) If the Tier I member is less than 35 years old on |
15 | | the effective date of this amendatory Act of the 97th |
16 | | General Assembly, then the references to age 55 and 60 in |
17 | | subsection (b) of this Section are increased by 5 years and |
18 | | the references to 85 in subsection (b) are increased to 95. |
19 | | Notwithstanding Section 1-103.1, this subsection (c) |
20 | | applies without regard to whether or not the Tier I member is |
21 | | in active service under this Article on or after the effective |
22 | | date of this amendatory Act of the 97th General Assembly. |
23 | | (d) The allowance shall begin with the first full calendar |
24 | | month specified in the
member's application therefor, the first |
25 | | day of which shall not be before the
date of withdrawal as |
26 | | approved by the board. Regardless of the date of
withdrawal, |
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1 | | the allowance need not begin within one year of application
|
2 | | therefor.
|
3 | | (Source: P.A. 91-927, eff. 12-14-00.)
|
4 | | (40 ILCS 5/14-108) (from Ch. 108 1/2, par. 14-108)
|
5 | | Sec. 14-108. Amount of retirement annuity. A member who has |
6 | | contributed to the System for at least 12 months shall
be |
7 | | entitled to a prior service annuity for each year of certified |
8 | | prior
service credited to him, except that a member shall |
9 | | receive 1/3 of the prior
service annuity for each year of |
10 | | service for which contributions have been
made and all of such |
11 | | annuity shall be payable after the member has made
|
12 | | contributions for a period of 3 years. Proportionate amounts |
13 | | shall be payable
for service of less than a full year after |
14 | | completion of at least 12 months.
|
15 | | The total period of service to be considered in |
16 | | establishing the measure
of prior service annuity shall include |
17 | | service credited in the Teachers'
Retirement System of the |
18 | | State of Illinois and the State Universities
Retirement System |
19 | | for which contributions have been made by the member to
such |
20 | | systems; provided that at least 1 year of the total period of 3 |
21 | | years
prescribed for the allowance of a full measure of prior |
22 | | service annuity
shall consist of membership service in this |
23 | | system for which credit has been
granted.
|
24 | | (a) In the case of a member who retires on or after January |
25 | | 1, 1998 and
is a noncovered employee, the retirement annuity |
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1 | | for membership service and
prior service shall be 2.2% of final |
2 | | average compensation for each year of
service. Any service |
3 | | credit established as a covered employee shall be
computed as |
4 | | stated in
paragraph (b).
|
5 | | (b) In the case of a member who retires on or after January |
6 | | 1, 1998
and is a covered employee, the retirement annuity for |
7 | | membership
service and prior service shall be computed as |
8 | | stated in paragraph (a) for
all service credit established as a |
9 | | noncovered employee; for service credit
established as a |
10 | | covered employee it shall be 1.67% of final average
|
11 | | compensation for each year of service.
|
12 | | (c) For a member
retiring after attaining age 55 but before |
13 | | age 60 with at least 30 but less
than 35 years of creditable |
14 | | service if retirement is before January 1, 2001, or
with at |
15 | | least 25 but less than 30 years of creditable service if |
16 | | retirement is
on or after January 1, 2001, the retirement |
17 | | annuity shall be reduced by 1/2
of 1% for each month that the |
18 | | member's age is under age 60 at the time of
retirement. For |
19 | | members to whom subsection (c) of Section 14-107 applies, the |
20 | | references to age 55 and 60 in this subsection (c) are |
21 | | increased as provided in subsection (c) of Section 14-107.
|
22 | | (d) A retirement annuity shall not exceed 75% of final |
23 | | average compensation,
subject to such extension as may result |
24 | | from the application of Section 14-114
or Section 14-115.
|
25 | | (e) The retirement annuity payable to any covered employee |
26 | | who is a member
of the System and in service on January 1, |
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1 | | 1969, or in service thereafter
in 1969 as a result of |
2 | | legislation enacted by the Illinois General Assembly
|
3 | | transferring the member to State employment from county |
4 | | employment in a
county Department of Public Aid in counties of |
5 | | 3,000,000 or more population,
under a plan of coordination with |
6 | | the Old Age, Survivors and Disability
provisions thereof, if |
7 | | not fully insured for Old Age Insurance payments
under the |
8 | | Federal Old Age, Survivors and Disability Insurance provisions
|
9 | | at the date of acceptance of a retirement annuity, shall not be |
10 | | less than
the amount for which the member would have been |
11 | | eligible if coordination
were not applicable.
|
12 | | (f) The retirement annuity payable to any covered employee |
13 | | who is a member
of the System and in service on January 1, |
14 | | 1969, or in service thereafter
in 1969 as a result of the |
15 | | legislation designated in the immediately preceding
paragraph, |
16 | | if fully insured for Old Age Insurance payments under the |
17 | | Federal
Social Security Act at the date of acceptance of a |
18 | | retirement annuity, shall
not be less than an amount which when |
19 | | added to the Primary Insurance Benefit
payable to the member |
20 | | upon attainment of age 65 under such Federal Act,
will equal |
21 | | the annuity which would otherwise be payable if the coordinated
|
22 | | plan of coverage were not applicable.
|
23 | | (g) In the case of a member who is a noncovered employee, |
24 | | the retirement
annuity for membership service as a security |
25 | | employee of the Department of
Corrections or security employee |
26 | | of the Department of Human Services shall
be: if retirement |
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1 | | occurs on or after January 1, 2001, 3% of final average
|
2 | | compensation for each year of creditable service; or if |
3 | | retirement occurs
before January 1, 2001, 1.9% of final average |
4 | | compensation for each of the
first 10 years of service, 2.1% |
5 | | for each of the next 10 years of
service, 2.25% for each year |
6 | | of service in excess of 20 but not
exceeding 30, and 2.5% for |
7 | | each year in excess of 30; except that the
annuity may be |
8 | | calculated under subsection (a) rather than this subsection (g)
|
9 | | if the resulting annuity is greater.
|
10 | | (h) In the case of a member who is a covered employee, the |
11 | | retirement
annuity for membership service as a security |
12 | | employee of the Department of
Corrections or security employee |
13 | | of the Department of Human Services shall
be: if retirement |
14 | | occurs on or after January 1, 2001, 2.5% of final average
|
15 | | compensation for each year of creditable service; if retirement |
16 | | occurs before
January 1, 2001, 1.67% of final average |
17 | | compensation for each of the first
10 years of service, 1.90% |
18 | | for each of the next 10 years of
service, 2.10% for each year |
19 | | of service in excess of 20 but not
exceeding 30, and 2.30% for |
20 | | each year in excess of 30.
|
21 | | (i) For the purposes of this Section and Section 14-133 of |
22 | | this Act,
the term "security employee of the Department of |
23 | | Corrections" and the term
"security employee of the Department |
24 | | of Human Services" shall have the
meanings ascribed to them in |
25 | | subsection (c) of Section 14-110.
|
26 | | (j) The retirement annuity computed pursuant to paragraphs |
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1 | | (g) or (h)
shall be applicable only to those security employees |
2 | | of the Department of
Corrections and security employees of the |
3 | | Department of Human Services who
have at least 20 years of |
4 | | membership service and who are not eligible for
the alternative |
5 | | retirement annuity provided under Section 14-110. However,
|
6 | | persons transferring to this System under Section 14-108.2 or |
7 | | 14-108.2c
who have service credit under Article 16 of this Code |
8 | | may count such service
toward establishing their eligibility |
9 | | under the 20-year service requirement of
this subsection; but |
10 | | such service may be used only for establishing such
|
11 | | eligibility, and not for the purpose of increasing or |
12 | | calculating any benefit.
|
13 | | (k) (Blank).
|
14 | | (l) The changes to this Section made by this amendatory Act |
15 | | of 1997
(changing certain retirement annuity formulas from a |
16 | | stepped rate to a flat
rate) apply to members who retire on or |
17 | | after January 1, 1998, without regard
to whether employment |
18 | | terminated before the effective date of this amendatory
Act of |
19 | | 1997. An annuity shall not be calculated in steps by using the |
20 | | new flat
rate for some steps and the superseded stepped rate |
21 | | for other steps of the same
type of service.
|
22 | | (Source: P.A. 91-927, eff. 12-14-00; 92-14, eff. 6-28-01.)
|
23 | | (40 ILCS 5/14-110) (from Ch. 108 1/2, par. 14-110)
|
24 | | Sec. 14-110. Alternative retirement annuity.
|
25 | | (a) Any member who has withdrawn from service with not less |
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1 | | than 20
years of eligible creditable service and has attained |
2 | | age 55, and any
member who has withdrawn from service with not |
3 | | less than 25 years of
eligible creditable service and has |
4 | | attained age 50, regardless of whether
the attainment of either |
5 | | of the specified ages occurs while the member is
still in |
6 | | service, shall be entitled to receive at the option of the |
7 | | member,
in lieu of the regular or minimum retirement annuity, a |
8 | | retirement annuity
computed as follows:
|
9 | | (i) for periods of service as a noncovered employee:
if |
10 | | retirement occurs on or after January 1, 2001, 3% of final
|
11 | | average compensation for each year of creditable service; |
12 | | if retirement occurs
before January 1, 2001, 2 1/4% of |
13 | | final average compensation for each of the
first 10 years |
14 | | of creditable service, 2 1/2% for each year above 10 years |
15 | | to
and including 20 years of creditable service, and 2 3/4% |
16 | | for each year of
creditable service above 20 years; and
|
17 | | (ii) for periods of eligible creditable service as a |
18 | | covered employee:
if retirement occurs on or after January |
19 | | 1, 2001, 2.5% of final average
compensation for each year |
20 | | of creditable service; if retirement occurs before
January |
21 | | 1, 2001, 1.67% of final average compensation for each of |
22 | | the first
10 years of such service, 1.90% for each of the |
23 | | next 10 years of such service,
2.10% for each year of such |
24 | | service in excess of 20 but not exceeding 30, and
2.30% for |
25 | | each year in excess of 30.
|
26 | | Such annuity shall be subject to a maximum of 75% of final |
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1 | | average
compensation if retirement occurs before January 1, |
2 | | 2001 or to a maximum
of 80% of final average compensation if |
3 | | retirement occurs on or after January
1, 2001.
|
4 | | These rates shall not be applicable to any service |
5 | | performed
by a member as a covered employee which is not |
6 | | eligible creditable service.
Service as a covered employee |
7 | | which is not eligible creditable service
shall be subject to |
8 | | the rates and provisions of Section 14-108.
|
9 | | (a-5) Notwithstanding subsection (a) of this Section, for a |
10 | | Tier I member who begins receiving a retirement annuity under |
11 | | this Section after July 1, 2013: |
12 | | (1) If the Tier I member is at least 45 years old on |
13 | | the effective date of this amendatory Act of the 97th |
14 | | General Assembly, then the references to age 50 and 55 in |
15 | | subsection (a) of this Section remain unchanged. |
16 | | (2) If the Tier I member is at least 40 but less than |
17 | | 45 years old on the effective date of this amendatory Act |
18 | | of the 97th General Assembly, then the references to age 50 |
19 | | and 55 in subsection (a) of this Section are increased by |
20 | | one year. |
21 | | (3) If the Tier I member is at least 35 but less than |
22 | | 40 years old on the effective date of this amendatory Act |
23 | | of the 97th General Assembly, then the references to age 50 |
24 | | and 55 in subsection (a) of this Section are increased by 3 |
25 | | years. |
26 | | (4) If the Tier I member is less than 35 years old on |
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1 | | the effective date of this amendatory Act of the 97th |
2 | | General Assembly, then the references to age 50 and 55 in |
3 | | subsection (a) of this Section are increased by 5 years. |
4 | | Notwithstanding Section 1-103.1, this subsection (a-5) |
5 | | applies without regard to whether or not the Tier I member is |
6 | | in active service under this Article on or after the effective |
7 | | date of this amendatory Act of the 97th General Assembly. |
8 | | (b) For the purpose of this Section, "eligible creditable |
9 | | service" means
creditable service resulting from service in one |
10 | | or more of the following
positions:
|
11 | | (1) State policeman;
|
12 | | (2) fire fighter in the fire protection service of a |
13 | | department;
|
14 | | (3) air pilot;
|
15 | | (4) special agent;
|
16 | | (5) investigator for the Secretary of State;
|
17 | | (6) conservation police officer;
|
18 | | (7) investigator for the Department of Revenue or the |
19 | | Illinois Gaming Board;
|
20 | | (8) security employee of the Department of Human |
21 | | Services;
|
22 | | (9) Central Management Services security police |
23 | | officer;
|
24 | | (10) security employee of the Department of |
25 | | Corrections or the Department of Juvenile Justice;
|
26 | | (11) dangerous drugs investigator;
|
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1 | | (12) investigator for the Department of State Police;
|
2 | | (13) investigator for the Office of the Attorney |
3 | | General;
|
4 | | (14) controlled substance inspector;
|
5 | | (15) investigator for the Office of the State's |
6 | | Attorneys Appellate
Prosecutor;
|
7 | | (16) Commerce Commission police officer;
|
8 | | (17) arson investigator;
|
9 | | (18) State highway maintenance worker.
|
10 | | A person employed in one of the positions specified in this |
11 | | subsection is
entitled to eligible creditable service for |
12 | | service credit earned under this
Article while undergoing the |
13 | | basic police training course approved by the
Illinois Law |
14 | | Enforcement Training
Standards Board, if
completion of that |
15 | | training is required of persons serving in that position.
For |
16 | | the purposes of this Code, service during the required basic |
17 | | police
training course shall be deemed performance of the |
18 | | duties of the specified
position, even though the person is not |
19 | | a sworn peace officer at the time of
the training.
|
20 | | (c) For the purposes of this Section:
|
21 | | (1) The term "state policeman" includes any title or |
22 | | position
in the Department of State Police that is held by |
23 | | an individual employed
under the State Police Act.
|
24 | | (2) The term "fire fighter in the fire protection |
25 | | service of a
department" includes all officers in such fire |
26 | | protection service
including fire chiefs and assistant |
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1 | | fire chiefs.
|
2 | | (3) The term "air pilot" includes any employee whose |
3 | | official job
description on file in the Department of |
4 | | Central Management Services, or
in the department by which |
5 | | he is employed if that department is not covered
by the |
6 | | Personnel Code, states that his principal duty is the |
7 | | operation of
aircraft, and who possesses a pilot's license; |
8 | | however, the change in this
definition made by this |
9 | | amendatory Act of 1983 shall not operate to exclude
any |
10 | | noncovered employee who was an "air pilot" for the purposes |
11 | | of this
Section on January 1, 1984.
|
12 | | (4) The term "special agent" means any person who by |
13 | | reason of
employment by the Division of Narcotic Control, |
14 | | the Bureau of Investigation
or, after July 1, 1977, the |
15 | | Division of Criminal Investigation, the
Division of |
16 | | Internal Investigation, the Division of Operations, or any
|
17 | | other Division or organizational
entity in the Department |
18 | | of State Police is vested by law with duties to
maintain |
19 | | public order, investigate violations of the criminal law of |
20 | | this
State, enforce the laws of this State, make arrests |
21 | | and recover property.
The term "special agent" includes any |
22 | | title or position in the Department
of State Police that is |
23 | | held by an individual employed under the State
Police Act.
|
24 | | (5) The term "investigator for the Secretary of State" |
25 | | means any person
employed by the Office of the Secretary of |
26 | | State and vested with such
investigative duties as render |
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1 | | him ineligible for coverage under the Social
Security Act |
2 | | by reason of Sections 218(d)(5)(A), 218(d)(8)(D) and |
3 | | 218(l)(1)
of that Act.
|
4 | | A person who became employed as an investigator for the |
5 | | Secretary of
State between January 1, 1967 and December 31, |
6 | | 1975, and who has served as
such until attainment of age |
7 | | 60, either continuously or with a single break
in service |
8 | | of not more than 3 years duration, which break terminated |
9 | | before
January 1, 1976, shall be entitled to have his |
10 | | retirement annuity
calculated in accordance with |
11 | | subsection (a), notwithstanding
that he has less than 20 |
12 | | years of credit for such service.
|
13 | | (6) The term "Conservation Police Officer" means any |
14 | | person employed
by the Division of Law Enforcement of the |
15 | | Department of Natural Resources and
vested with such law |
16 | | enforcement duties as render him ineligible for coverage
|
17 | | under the Social Security Act by reason of Sections |
18 | | 218(d)(5)(A), 218(d)(8)(D),
and 218(l)(1) of that Act. The |
19 | | term "Conservation Police Officer" includes
the positions |
20 | | of Chief Conservation Police Administrator and Assistant
|
21 | | Conservation Police Administrator.
|
22 | | (7) The term "investigator for the Department of |
23 | | Revenue" means any
person employed by the Department of |
24 | | Revenue and vested with such
investigative duties as render |
25 | | him ineligible for coverage under the Social
Security Act |
26 | | by reason of Sections 218(d)(5)(A), 218(d)(8)(D) and |
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1 | | 218(l)(1)
of that Act.
|
2 | | The term "investigator for the Illinois Gaming Board" |
3 | | means any
person employed as such by the Illinois Gaming |
4 | | Board and vested with such
peace officer duties as render |
5 | | the person ineligible for coverage under the Social
|
6 | | Security Act by reason of Sections 218(d)(5)(A), |
7 | | 218(d)(8)(D), and 218(l)(1)
of that Act.
|
8 | | (8) The term "security employee of the Department of |
9 | | Human Services"
means any person employed by the Department |
10 | | of Human Services who (i) is
employed at the Chester Mental |
11 | | Health Center and has daily contact with the
residents |
12 | | thereof, (ii) is employed within a security unit at a |
13 | | facility
operated by the Department and has daily contact |
14 | | with the residents of the
security unit, (iii) is employed |
15 | | at a facility operated by the Department
that includes a |
16 | | security unit and is regularly scheduled to work at least
|
17 | | 50% of his or her working hours within that security unit, |
18 | | or (iv) is a mental health police officer.
"Mental health |
19 | | police officer" means any person employed by the Department |
20 | | of
Human Services in a position pertaining to the |
21 | | Department's mental health and
developmental disabilities |
22 | | functions who is vested with such law enforcement
duties as |
23 | | render the person ineligible for coverage under the Social |
24 | | Security
Act by reason of Sections 218(d)(5)(A), |
25 | | 218(d)(8)(D) and 218(l)(1) of that
Act. "Security unit" |
26 | | means that portion of a facility that is devoted to
the |
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1 | | care, containment, and treatment of persons committed to |
2 | | the Department of
Human Services as sexually violent |
3 | | persons, persons unfit to stand trial, or
persons not |
4 | | guilty by reason of insanity. With respect to past |
5 | | employment,
references to the Department of Human Services |
6 | | include its predecessor, the
Department of Mental Health |
7 | | and Developmental Disabilities.
|
8 | | The changes made to this subdivision (c)(8) by Public |
9 | | Act 92-14 apply to persons who retire on or after January |
10 | | 1,
2001, notwithstanding Section 1-103.1.
|
11 | | (9) "Central Management Services security police |
12 | | officer" means any
person employed by the Department of |
13 | | Central Management Services who is
vested with such law |
14 | | enforcement duties as render him ineligible for
coverage |
15 | | under the Social Security Act by reason of Sections |
16 | | 218(d)(5)(A),
218(d)(8)(D) and 218(l)(1) of that Act.
|
17 | | (10) For a member who first became an employee under |
18 | | this Article before July 1, 2005, the term "security |
19 | | employee of the Department of Corrections or the Department |
20 | | of Juvenile Justice"
means any employee of the Department |
21 | | of Corrections or the Department of Juvenile Justice or the |
22 | | former
Department of Personnel, and any member or employee |
23 | | of the Prisoner
Review Board, who has daily contact with |
24 | | inmates or youth by working within a
correctional facility |
25 | | or Juvenile facility operated by the Department of Juvenile |
26 | | Justice or who is a parole officer or an employee who has
|
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1 | | direct contact with committed persons in the performance of |
2 | | his or her
job duties. For a member who first becomes an |
3 | | employee under this Article on or after July 1, 2005, the |
4 | | term means an employee of the Department of Corrections or |
5 | | the Department of Juvenile Justice who is any of the |
6 | | following: (i) officially headquartered at a correctional |
7 | | facility or Juvenile facility operated by the Department of |
8 | | Juvenile Justice, (ii) a parole officer, (iii) a member of |
9 | | the apprehension unit, (iv) a member of the intelligence |
10 | | unit, (v) a member of the sort team, or (vi) an |
11 | | investigator.
|
12 | | (11) The term "dangerous drugs investigator" means any |
13 | | person who is
employed as such by the Department of Human |
14 | | Services.
|
15 | | (12) The term "investigator for the Department of State |
16 | | Police" means
a person employed by the Department of State |
17 | | Police who is vested under
Section 4 of the Narcotic |
18 | | Control Division Abolition Act with such
law enforcement |
19 | | powers as render him ineligible for coverage under the
|
20 | | Social Security Act by reason of Sections 218(d)(5)(A), |
21 | | 218(d)(8)(D) and
218(l)(1) of that Act.
|
22 | | (13) "Investigator for the Office of the Attorney |
23 | | General" means any
person who is employed as such by the |
24 | | Office of the Attorney General and
is vested with such |
25 | | investigative duties as render him ineligible for
coverage |
26 | | under the Social Security Act by reason of Sections |
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1 | | 218(d)(5)(A),
218(d)(8)(D) and 218(l)(1) of that Act. For |
2 | | the period before January 1,
1989, the term includes all |
3 | | persons who were employed as investigators by the
Office of |
4 | | the Attorney General, without regard to social security |
5 | | status.
|
6 | | (14) "Controlled substance inspector" means any person |
7 | | who is employed
as such by the Department of Professional |
8 | | Regulation and is vested with such
law enforcement duties |
9 | | as render him ineligible for coverage under the Social
|
10 | | Security Act by reason of Sections 218(d)(5)(A), |
11 | | 218(d)(8)(D) and 218(l)(1) of
that Act. The term |
12 | | "controlled substance inspector" includes the Program
|
13 | | Executive of Enforcement and the Assistant Program |
14 | | Executive of Enforcement.
|
15 | | (15) The term "investigator for the Office of the |
16 | | State's Attorneys
Appellate Prosecutor" means a person |
17 | | employed in that capacity on a full
time basis under the |
18 | | authority of Section 7.06 of the State's Attorneys
|
19 | | Appellate Prosecutor's Act.
|
20 | | (16) "Commerce Commission police officer" means any |
21 | | person employed
by the Illinois Commerce Commission who is |
22 | | vested with such law
enforcement duties as render him |
23 | | ineligible for coverage under the Social
Security Act by |
24 | | reason of Sections 218(d)(5)(A), 218(d)(8)(D), and
|
25 | | 218(l)(1) of that Act.
|
26 | | (17) "Arson investigator" means any person who is |
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1 | | employed as such by
the Office of the State Fire Marshal |
2 | | and is vested with such law enforcement
duties as render |
3 | | the person ineligible for coverage under the Social |
4 | | Security
Act by reason of Sections 218(d)(5)(A), |
5 | | 218(d)(8)(D), and 218(l)(1) of that
Act. A person who was |
6 | | employed as an arson
investigator on January 1, 1995 and is |
7 | | no longer in service but not yet
receiving a retirement |
8 | | annuity may convert his or her creditable service for
|
9 | | employment as an arson investigator into eligible |
10 | | creditable service by paying
to the System the difference |
11 | | between the employee contributions actually paid
for that |
12 | | service and the amounts that would have been contributed if |
13 | | the
applicant were contributing at the rate applicable to |
14 | | persons with the same
social security status earning |
15 | | eligible creditable service on the date of
application.
|
16 | | (18) The term "State highway maintenance worker" means |
17 | | a person who is
either of the following:
|
18 | | (i) A person employed on a full-time basis by the |
19 | | Illinois
Department of Transportation in the position |
20 | | of
highway maintainer,
highway maintenance lead |
21 | | worker,
highway maintenance lead/lead worker,
heavy |
22 | | construction equipment operator,
power shovel |
23 | | operator, or
bridge mechanic; and
whose principal |
24 | | responsibility is to perform, on the roadway, the |
25 | | actual
maintenance necessary to keep the highways that |
26 | | form a part of the State
highway system in serviceable |
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1 | | condition for vehicular traffic.
|
2 | | (ii) A person employed on a full-time basis by the |
3 | | Illinois
State Toll Highway Authority in the position |
4 | | of
equipment operator/laborer H-4,
equipment |
5 | | operator/laborer H-6,
welder H-4,
welder H-6,
|
6 | | mechanical/electrical H-4,
mechanical/electrical H-6,
|
7 | | water/sewer H-4,
water/sewer H-6,
sign maker/hanger |
8 | | H-4,
sign maker/hanger H-6,
roadway lighting H-4,
|
9 | | roadway lighting H-6,
structural H-4,
structural H-6,
|
10 | | painter H-4, or
painter H-6; and
whose principal |
11 | | responsibility is to perform, on the roadway, the |
12 | | actual
maintenance necessary to keep the Authority's |
13 | | tollways in serviceable condition
for vehicular |
14 | | traffic.
|
15 | | (d) A security employee of the Department of Corrections or |
16 | | the Department of Juvenile Justice, and a security
employee of |
17 | | the Department of Human Services who is not a mental health |
18 | | police
officer, shall not be eligible for the alternative |
19 | | retirement annuity provided
by this Section unless he or she |
20 | | meets the following minimum age and service
requirements at the |
21 | | time of retirement:
|
22 | | (i) 25 years of eligible creditable service and age 55; |
23 | | or
|
24 | | (ii) beginning January 1, 1987, 25 years of eligible |
25 | | creditable service
and age 54, or 24 years of eligible |
26 | | creditable service and age 55; or
|
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1 | | (iii) beginning January 1, 1988, 25 years of eligible |
2 | | creditable service
and age 53, or 23 years of eligible |
3 | | creditable service and age 55; or
|
4 | | (iv) beginning January 1, 1989, 25 years of eligible |
5 | | creditable service
and age 52, or 22 years of eligible |
6 | | creditable service and age 55; or
|
7 | | (v) beginning January 1, 1990, 25 years of eligible |
8 | | creditable service
and age 51, or 21 years of eligible |
9 | | creditable service and age 55; or
|
10 | | (vi) beginning January 1, 1991, 25 years of eligible |
11 | | creditable service
and age 50, or 20 years of eligible |
12 | | creditable service and age 55.
|
13 | | For members to whom subsection (a-5) of this Section |
14 | | applies, the references to age 50 and 55 in item (vi) of this |
15 | | subsection are increased as provided in subsection (a-5). |
16 | | Persons who have service credit under Article 16 of this |
17 | | Code for service
as a security employee of the Department of |
18 | | Corrections or the Department of Juvenile Justice, or the |
19 | | Department
of Human Services in a position requiring |
20 | | certification as a teacher may
count such service toward |
21 | | establishing their eligibility under the service
requirements |
22 | | of this Section; but such service may be used only for
|
23 | | establishing such eligibility, and not for the purpose of |
24 | | increasing or
calculating any benefit.
|
25 | | (e) If a member enters military service while working in a |
26 | | position in
which eligible creditable service may be earned, |
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1 | | and returns to State
service in the same or another such |
2 | | position, and fulfills in all other
respects the conditions |
3 | | prescribed in this Article for credit for military
service, |
4 | | such military service shall be credited as eligible creditable
|
5 | | service for the purposes of the retirement annuity prescribed |
6 | | in this Section.
|
7 | | (f) For purposes of calculating retirement annuities under |
8 | | this
Section, periods of service rendered after December 31, |
9 | | 1968 and before
October 1, 1975 as a covered employee in the |
10 | | position of special agent,
conservation police officer, mental |
11 | | health police officer, or investigator
for the Secretary of |
12 | | State, shall be deemed to have been service as a
noncovered |
13 | | employee, provided that the employee pays to the System prior |
14 | | to
retirement an amount equal to (1) the difference between the |
15 | | employee
contributions that would have been required for such |
16 | | service as a
noncovered employee, and the amount of employee |
17 | | contributions actually
paid, plus (2) if payment is made after |
18 | | July 31, 1987, regular interest
on the amount specified in item |
19 | | (1) from the date of service to the date
of payment.
|
20 | | For purposes of calculating retirement annuities under |
21 | | this Section,
periods of service rendered after December 31, |
22 | | 1968 and before January 1,
1982 as a covered employee in the |
23 | | position of investigator for the
Department of Revenue shall be |
24 | | deemed to have been service as a noncovered
employee, provided |
25 | | that the employee pays to the System prior to retirement
an |
26 | | amount equal to (1) the difference between the employee |
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1 | | contributions
that would have been required for such service as |
2 | | a noncovered employee,
and the amount of employee contributions |
3 | | actually paid, plus (2) if payment
is made after January 1, |
4 | | 1990, regular interest on the amount specified in
item (1) from |
5 | | the date of service to the date of payment.
|
6 | | (g) A State policeman may elect, not later than January 1, |
7 | | 1990, to
establish eligible creditable service for up to 10 |
8 | | years of his service as
a policeman under Article 3, by filing |
9 | | a written election with the Board,
accompanied by payment of an |
10 | | amount to be determined by the Board, equal to
(i) the |
11 | | difference between the amount of employee and employer
|
12 | | contributions transferred to the System under Section 3-110.5, |
13 | | and the
amounts that would have been contributed had such |
14 | | contributions been made
at the rates applicable to State |
15 | | policemen, plus (ii) interest thereon at
the effective rate for |
16 | | each year, compounded annually, from the date of
service to the |
17 | | date of payment.
|
18 | | Subject to the limitation in subsection (i), a State |
19 | | policeman may elect,
not later than July 1, 1993, to establish |
20 | | eligible creditable service for
up to 10 years of his service |
21 | | as a member of the County Police Department
under Article 9, by |
22 | | filing a written election with the Board, accompanied
by |
23 | | payment of an amount to be determined by the Board, equal to |
24 | | (i) the
difference between the amount of employee and employer |
25 | | contributions
transferred to the System under Section 9-121.10 |
26 | | and the amounts that would
have been contributed had those |
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1 | | contributions been made at the rates
applicable to State |
2 | | policemen, plus (ii) interest thereon at the effective
rate for |
3 | | each year, compounded annually, from the date of service to the
|
4 | | date of payment.
|
5 | | (h) Subject to the limitation in subsection (i), a State |
6 | | policeman or
investigator for the Secretary of State may elect |
7 | | to establish eligible
creditable service for up to 12 years of |
8 | | his service as a policeman under
Article 5, by filing a written |
9 | | election with the Board on or before January
31, 1992, and |
10 | | paying to the System by January 31, 1994 an amount to be
|
11 | | determined by the Board, equal to (i) the difference between |
12 | | the amount of
employee and employer contributions transferred |
13 | | to the System under Section
5-236, and the amounts that would |
14 | | have been contributed had such
contributions been made at the |
15 | | rates applicable to State policemen, plus
(ii) interest thereon |
16 | | at the effective rate for each year, compounded
annually, from |
17 | | the date of service to the date of payment.
|
18 | | Subject to the limitation in subsection (i), a State |
19 | | policeman,
conservation police officer, or investigator for |
20 | | the Secretary of State may
elect to establish eligible |
21 | | creditable service for up to 10 years of
service as a sheriff's |
22 | | law enforcement employee under Article 7, by filing
a written |
23 | | election with the Board on or before January 31, 1993, and |
24 | | paying
to the System by January 31, 1994 an amount to be |
25 | | determined by the Board,
equal to (i) the difference between |
26 | | the amount of employee and
employer contributions transferred |
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1 | | to the System under Section
7-139.7, and the amounts that would |
2 | | have been contributed had such
contributions been made at the |
3 | | rates applicable to State policemen, plus
(ii) interest thereon |
4 | | at the effective rate for each year, compounded
annually, from |
5 | | the date of service to the date of payment.
|
6 | | Subject to the limitation in subsection (i), a State |
7 | | policeman,
conservation police officer, or investigator for |
8 | | the Secretary of State may
elect to establish eligible |
9 | | creditable service for up to 5 years of
service as a police |
10 | | officer under Article 3, a policeman under Article 5, a |
11 | | sheriff's law enforcement employee under Article 7, a member of |
12 | | the county police department under Article 9, or a police |
13 | | officer under Article 15 by filing
a written election with the |
14 | | Board and paying
to the System an amount to be determined by |
15 | | the Board,
equal to (i) the difference between the amount of |
16 | | employee and
employer contributions transferred to the System |
17 | | under Section
3-110.6, 5-236, 7-139.8, 9-121.10, or 15-134.4 |
18 | | and the amounts that would have been contributed had such
|
19 | | contributions been made at the rates applicable to State |
20 | | policemen, plus
(ii) interest thereon at the effective rate for |
21 | | each year, compounded
annually, from the date of service to the |
22 | | date of payment. |
23 | | Subject to the limitation in subsection (i), an |
24 | | investigator for the Office of the Attorney General, or an |
25 | | investigator for the Department of Revenue, may elect to |
26 | | establish eligible creditable service for up to 5 years of |
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1 | | service as a police officer under Article 3, a policeman under |
2 | | Article 5, a sheriff's law enforcement employee under Article |
3 | | 7, or a member of the county police department under Article 9 |
4 | | by filing a written election with the Board within 6 months |
5 | | after August 25, 2009 (the effective date of Public Act 96-745) |
6 | | and paying to the System an amount to be determined by the |
7 | | Board, equal to (i) the difference between the amount of |
8 | | employee and employer contributions transferred to the System |
9 | | under Section 3-110.6, 5-236, 7-139.8, or 9-121.10 and the |
10 | | amounts that would have been contributed had such contributions |
11 | | been made at the rates applicable to State policemen, plus (ii) |
12 | | interest thereon at the actuarially assumed rate for each year, |
13 | | compounded annually, from the date of service to the date of |
14 | | payment. |
15 | | Subject to the limitation in subsection (i), a State |
16 | | policeman, conservation police officer, investigator for the |
17 | | Office of the Attorney General, an investigator for the |
18 | | Department of Revenue, or investigator for the Secretary of |
19 | | State may elect to establish eligible creditable service for up |
20 | | to 5 years of service as a person employed by a participating |
21 | | municipality to perform police duties, or law enforcement |
22 | | officer employed on a full-time basis by a forest preserve |
23 | | district under Article 7, a county corrections officer, or a |
24 | | court services officer under Article 9, by filing a written |
25 | | election with the Board within 6 months after August 25, 2009 |
26 | | (the effective date of Public Act 96-745) and paying to the |
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1 | | System an amount to be determined by the Board, equal to (i) |
2 | | the difference between the amount of employee and employer |
3 | | contributions transferred to the System under Sections 7-139.8 |
4 | | and 9-121.10 and the amounts that would have been contributed |
5 | | had such contributions been made at the rates applicable to |
6 | | State policemen, plus (ii) interest thereon at the actuarially |
7 | | assumed rate for each year, compounded annually, from the date |
8 | | of service to the date of payment. |
9 | | (i) The total amount of eligible creditable service |
10 | | established by any
person under subsections (g), (h), (j), (k), |
11 | | and (l) of this
Section shall not exceed 12 years.
|
12 | | (j) Subject to the limitation in subsection (i), an |
13 | | investigator for
the Office of the State's Attorneys Appellate |
14 | | Prosecutor or a controlled
substance inspector may elect to
|
15 | | establish eligible creditable service for up to 10 years of his |
16 | | service as
a policeman under Article 3 or a sheriff's law |
17 | | enforcement employee under
Article 7, by filing a written |
18 | | election with the Board, accompanied by
payment of an amount to |
19 | | be determined by the Board, equal to (1) the
difference between |
20 | | the amount of employee and employer contributions
transferred |
21 | | to the System under Section 3-110.6 or 7-139.8, and the amounts
|
22 | | that would have been contributed had such contributions been |
23 | | made at the
rates applicable to State policemen, plus (2) |
24 | | interest thereon at the
effective rate for each year, |
25 | | compounded annually, from the date of service
to the date of |
26 | | payment.
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1 | | (k) Subject to the limitation in subsection (i) of this |
2 | | Section, an
alternative formula employee may elect to establish |
3 | | eligible creditable
service for periods spent as a full-time |
4 | | law enforcement officer or full-time
corrections officer |
5 | | employed by the federal government or by a state or local
|
6 | | government located outside of Illinois, for which credit is not |
7 | | held in any
other public employee pension fund or retirement |
8 | | system. To obtain this
credit, the applicant must file a |
9 | | written application with the Board by March
31, 1998, |
10 | | accompanied by evidence of eligibility acceptable to the Board |
11 | | and
payment of an amount to be determined by the Board, equal |
12 | | to (1) employee
contributions for the credit being established, |
13 | | based upon the applicant's
salary on the first day as an |
14 | | alternative formula employee after the employment
for which |
15 | | credit is being established and the rates then applicable to
|
16 | | alternative formula employees, plus (2) an amount determined by |
17 | | the Board
to be the employer's normal cost of the benefits |
18 | | accrued for the credit being
established, plus (3) regular |
19 | | interest on the amounts in items (1) and (2) from
the first day |
20 | | as an alternative formula employee after the employment for |
21 | | which
credit is being established to the date of payment.
|
22 | | (l) Subject to the limitation in subsection (i), a security |
23 | | employee of
the Department of Corrections may elect, not later |
24 | | than July 1, 1998, to
establish eligible creditable service for |
25 | | up to 10 years of his or her service
as a policeman under |
26 | | Article 3, by filing a written election with the Board,
|
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1 | | accompanied by payment of an amount to be determined by the |
2 | | Board, equal to
(i) the difference between the amount of |
3 | | employee and employer contributions
transferred to the System |
4 | | under Section 3-110.5, and the amounts that would
have been |
5 | | contributed had such contributions been made at the rates |
6 | | applicable
to security employees of the Department of |
7 | | Corrections, plus (ii) interest
thereon at the effective rate |
8 | | for each year, compounded annually, from the date
of service to |
9 | | the date of payment.
|
10 | | (m) The amendatory changes to this Section made by this |
11 | | amendatory Act of the 94th General Assembly apply only to: (1) |
12 | | security employees of the Department of Juvenile Justice |
13 | | employed by the Department of Corrections before the effective |
14 | | date of this amendatory Act of the 94th General Assembly and |
15 | | transferred to the Department of Juvenile Justice by this |
16 | | amendatory Act of the 94th General Assembly; and (2) persons |
17 | | employed by the Department of Juvenile Justice on or after the |
18 | | effective date of this amendatory Act of the 94th General |
19 | | Assembly who are required by subsection (b) of Section 3-2.5-15 |
20 | | of the Unified Code of Corrections to have a bachelor's or |
21 | | advanced degree from an accredited college or university with a |
22 | | specialization in criminal justice, education, psychology, |
23 | | social work, or a closely related social science or, in the |
24 | | case of persons who provide vocational training, who are |
25 | | required to have adequate knowledge in the skill for which they |
26 | | are providing the vocational training.
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1 | | (n) A person employed in a position under subsection (b) of |
2 | | this Section who has purchased service credit under subsection |
3 | | (j) of Section 14-104 or subsection (b) of Section 14-105 in |
4 | | any other capacity under this Article may convert up to 5 years |
5 | | of that service credit into service credit covered under this |
6 | | Section by paying to the Fund an amount equal to (1) the |
7 | | additional employee contribution required under Section |
8 | | 14-133, plus (2) the additional employer contribution required |
9 | | under Section 14-131, plus (3) interest on items (1) and (2) at |
10 | | the actuarially assumed rate from the date of the service to |
11 | | the date of payment. |
12 | | (Source: P.A. 95-530, eff. 8-28-07; 95-1036, eff. 2-17-09; |
13 | | 96-37, eff. 7-13-09; 96-745, eff. 8-25-09; 96-1000, eff. |
14 | | 7-2-10.)
|
15 | | (40 ILCS 5/14-114) (from Ch. 108 1/2, par. 14-114)
|
16 | | Sec. 14-114. Automatic increase in retirement annuity.
|
17 | | (a) Except as provided in subsections (a-1) and (a-2), any |
18 | | Any person receiving a retirement annuity under this Article |
19 | | who
retires having attained age 60, or who retires before age |
20 | | 60 having at
least 35 years of creditable service, or who |
21 | | retires on or after January
1, 2001 at an age which, when added |
22 | | to the number of years of his or her
creditable service, equals |
23 | | at least 85, shall, on January 1 next
following the first full |
24 | | year of retirement, have the amount of the then fixed
and |
25 | | payable monthly retirement annuity increased 3%. Any person |
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1 | | receiving a
retirement annuity under this Article who retires |
2 | | before attainment of age 60
and with less than (i) 35 years of |
3 | | creditable service if retirement
is before January 1, 2001, or |
4 | | (ii) the number of years of creditable service
which, when |
5 | | added to the member's age, would equal 85, if retirement is on
|
6 | | or after January 1, 2001, shall have the amount of the fixed |
7 | | and payable
retirement annuity increased by 3% on the January 1 |
8 | | occurring on or next
following (1) attainment of age 60, or (2) |
9 | | the first anniversary of retirement,
whichever occurs later. |
10 | | However, for persons who receive the alternative
retirement |
11 | | annuity under Section 14-110, references in this subsection (a) |
12 | | to
attainment of age 60 shall be deemed to refer to attainment |
13 | | of age 55. For a
person receiving early retirement incentives |
14 | | under Section 14-108.3 whose
retirement annuity began after |
15 | | January 1, 1992 pursuant to an extension granted
under |
16 | | subsection (e) of that Section, the first anniversary of |
17 | | retirement shall
be deemed to be January 1, 1993.
For a person |
18 | | who retires on or after June 28, 2001 and on or before October |
19 | | 1, 2001,
and whose retirement annuity is calculated, in whole |
20 | | or in part, under Section
14-110 or subsection (g) or (h) of |
21 | | Section 14-108, the first anniversary of
retirement shall be |
22 | | deemed to be January 1, 2002.
|
23 | | On each January 1 following the date of the initial |
24 | | increase under this
subsection, the employee's monthly |
25 | | retirement annuity shall be increased
by an additional 3%.
|
26 | | Beginning January 1, 1990 and except as provided in |
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1 | | subsections (a-1) and (a-2) , all automatic annual increases |
2 | | payable under
this Section shall be calculated as a percentage |
3 | | of the total annuity
payable at the time of the increase, |
4 | | including previous increases granted
under this Article.
|
5 | | (a-1) Notwithstanding any other provision of this Article, |
6 | | for a Tier I retiree, the amount of each automatic annual |
7 | | increase in retirement annuity occurring on or after the |
8 | | effective date of this amendatory Act of the 97th General |
9 | | Assembly shall be the lesser of $600 ($750 if the annuity is |
10 | | based primarily upon service as a noncovered employee) or 3% of |
11 | | the total annuity
payable at the time of the increase, |
12 | | including previous increases granted. |
13 | | (a-2) Notwithstanding any other provision of this Article, |
14 | | for a Tier I retiree, the monthly retirement annuity shall |
15 | | first be subject to annual increases on the January 1 occurring |
16 | | on or next after the attainment of age 67 or the January 1 |
17 | | occurring on or next after the fifth anniversary of the annuity |
18 | | start date, whichever occurs earlier. If on the effective date |
19 | | of this amendatory Act of the 97th General Assembly a Tier I |
20 | | retiree has already received an annual increase under this |
21 | | Section but does not yet meet the new eligibility requirements |
22 | | of this subsection, the annual increases already received shall |
23 | | continue in force, but no additional annual increase shall be |
24 | | granted until the Tier I retiree meets the new eligibility |
25 | | requirements. |
26 | | (a-3) Notwithstanding Section 1-103.1, subsections (a-1) |
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1 | | and (a-2) apply without regard to whether or not the Tier I |
2 | | retiree is in active service under this Article on or after the |
3 | | effective date of this amendatory Act of the 97th General |
4 | | Assembly. |
5 | | (b) The provisions of subsection (a) of this Section shall |
6 | | be
applicable to an employee only if the employee makes the |
7 | | additional
contributions required after December 31, 1969 for |
8 | | the purpose of the
automatic increases for not less than the |
9 | | equivalent of one full year.
If an employee becomes an |
10 | | annuitant before his additional contributions
equal one full |
11 | | year's contributions based on his salary at the date of
|
12 | | retirement, the employee may pay the necessary balance of the
|
13 | | contributions to the system, without interest, and be eligible |
14 | | for the
increasing annuity authorized by this Section.
|
15 | | (c) The provisions of subsection (a) of this Section shall |
16 | | not be
applicable to any annuitant who is on retirement on |
17 | | December 31, 1969, and
thereafter returns to State service, |
18 | | unless the member has established at
least one year of |
19 | | additional creditable service following reentry into service.
|
20 | | (d) In addition to other increases which may be provided by |
21 | | this Section,
on January 1, 1981 any annuitant who was |
22 | | receiving a retirement annuity
on or before January 1, 1971 |
23 | | shall have his retirement annuity then being
paid increased $1 |
24 | | per month for each year of creditable service. On January
1, |
25 | | 1982, any annuitant who began receiving a retirement annuity on |
26 | | or
before January 1, 1977, shall have his retirement annuity |
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1 | | then being paid
increased $1 per month for each year of |
2 | | creditable service.
|
3 | | On January 1, 1987, any annuitant who began receiving a |
4 | | retirement
annuity on or before January 1, 1977, shall have the |
5 | | monthly retirement annuity
increased by an amount equal to 8¢ |
6 | | per year of creditable service times the
number of years that |
7 | | have elapsed since the annuity began.
|
8 | | (e) Every person who receives the alternative retirement |
9 | | annuity under
Section 14-110 and who is eligible to receive the |
10 | | 3% increase under subsection
(a) on January 1, 1986, shall also |
11 | | receive on that date a one-time increase
in retirement annuity |
12 | | equal to the difference between (1) his actual
retirement |
13 | | annuity on that date, including any increases received under
|
14 | | subsection (a), and (2) the amount of retirement annuity he |
15 | | would have
received on that date if the amendments to |
16 | | subsection (a) made by Public
Act 84-162 had been in effect |
17 | | since the date of his retirement.
|
18 | | (Source: P.A. 91-927, eff. 12-14-00; 92-14, eff. 6-28-01;
|
19 | | 92-651, eff. 7-11-02.)
|
20 | | (40 ILCS 5/14-131)
|
21 | | Sec. 14-131. Contributions by State.
|
22 | | (a) The State shall make contributions to the System by |
23 | | appropriations of
amounts which, together with other employer |
24 | | contributions from trust, federal,
and other funds, employee |
25 | | contributions, investment income, and other income,
will be |
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1 | | sufficient to meet the cost of maintaining and administering |
2 | | the System
on a 100% 90% funded basis in accordance with |
3 | | actuarial recommendations by the end of State fiscal year 2043 .
|
4 | | For the purposes of this Section and Section 14-135.08, |
5 | | references to State
contributions refer only to employer |
6 | | contributions and do not include employee
contributions that |
7 | | are picked up or otherwise paid by the State or a
department on |
8 | | behalf of the employee.
|
9 | | (b) The Board shall determine the total amount of State |
10 | | contributions
required for each fiscal year on the basis of the |
11 | | actuarial tables and other
assumptions adopted by the Board, |
12 | | using the formula in subsection (e).
|
13 | | The Board shall also determine a State contribution rate |
14 | | for each fiscal
year, expressed as a percentage of payroll, |
15 | | based on the total required State
contribution for that fiscal |
16 | | year (less the amount received by the System from
|
17 | | appropriations under Section 8.12 of the State Finance Act and |
18 | | Section 1 of the
State Pension Funds Continuing Appropriation |
19 | | Act, if any, for the fiscal year
ending on the June 30 |
20 | | immediately preceding the applicable November 15
certification |
21 | | deadline), the estimated payroll (including all forms of
|
22 | | compensation) for personal services rendered by eligible |
23 | | employees, and the
recommendations of the actuary.
|
24 | | For the purposes of this Section and Section 14.1 of the |
25 | | State Finance Act,
the term "eligible employees" includes |
26 | | employees who participate in the System,
persons who may elect |
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1 | | to participate in the System but have not so elected,
persons |
2 | | who are serving a qualifying period that is required for |
3 | | participation,
and annuitants employed by a department as |
4 | | described in subdivision (a)(1) or
(a)(2) of Section 14-111.
|
5 | | (c) Contributions shall be made by the several departments |
6 | | for each pay
period by warrants drawn by the State Comptroller |
7 | | against their respective
funds or appropriations based upon |
8 | | vouchers stating the amount to be so
contributed. These amounts |
9 | | shall be based on the full rate certified by the
Board under |
10 | | Section 14-135.08 for that fiscal year.
From the effective date |
11 | | of this amendatory Act of the 93rd General
Assembly through the |
12 | | payment of the final payroll from fiscal year 2004
|
13 | | appropriations, the several departments shall not make |
14 | | contributions
for the remainder of fiscal year 2004 but shall |
15 | | instead make payments
as required under subsection (a-1) of |
16 | | Section 14.1 of the State Finance Act.
The several departments |
17 | | shall resume those contributions at the commencement of
fiscal |
18 | | year 2005.
|
19 | | (c-1) Notwithstanding subsection (c) of this Section, for |
20 | | fiscal years 2010, 2012, and 2013 only, contributions by the |
21 | | several departments are not required to be made for General |
22 | | Revenue Funds payrolls processed by the Comptroller. Payrolls |
23 | | paid by the several departments from all other State funds must |
24 | | continue to be processed pursuant to subsection (c) of this |
25 | | Section. |
26 | | (c-2) For State fiscal years 2010, 2012, and 2013 only, on |
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1 | | or as soon as possible after the 15th day of each month, the |
2 | | Board shall submit vouchers for payment of State contributions |
3 | | to the System, in a total monthly amount of one-twelfth of the |
4 | | fiscal year General Revenue Fund contribution as certified by |
5 | | the System pursuant to Section 14-135.08 of the Illinois |
6 | | Pension Code. |
7 | | (d) If an employee is paid from trust funds or federal |
8 | | funds, the
department or other employer shall pay employer |
9 | | contributions from those funds
to the System at the certified |
10 | | rate, unless the terms of the trust or the
federal-State |
11 | | agreement preclude the use of the funds for that purpose, in
|
12 | | which case the required employer contributions shall be paid by |
13 | | the State.
From the effective date of this amendatory
Act of |
14 | | the 93rd General Assembly through the payment of the final
|
15 | | payroll from fiscal year 2004 appropriations, the department or |
16 | | other
employer shall not pay contributions for the remainder of |
17 | | fiscal year
2004 but shall instead make payments as required |
18 | | under subsection (a-1) of
Section 14.1 of the State Finance |
19 | | Act. The department or other employer shall
resume payment of
|
20 | | contributions at the commencement of fiscal year 2005.
|
21 | | (e) For State fiscal years 2014 through 2043, the minimum |
22 | | contribution
to the System to be made by the State for each |
23 | | fiscal year shall be an amount
determined by the System to be |
24 | | equal to the sum of (1) the State's portion of the projected |
25 | | normal cost for that fiscal year, plus (2) an amount sufficient |
26 | | to bring the total assets of the
System up to 100% of the total |
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1 | | actuarial liabilities of the System by the end of
State fiscal |
2 | | year 2043. In making these determinations, the required State
|
3 | | contribution shall be calculated each year as a level |
4 | | percentage of payroll
over the years remaining to and including |
5 | | fiscal year 2043 and shall be
determined under the projected |
6 | | unit credit actuarial cost method. |
7 | | For State fiscal years 2012 and 2013 through 2045 , the minimum |
8 | | contribution
to the System to be made by the State for each |
9 | | fiscal year shall be an amount
determined by the System to be |
10 | | sufficient to bring the total assets of the
System up to 90% of |
11 | | the total actuarial liabilities of the System by the end
of |
12 | | State fiscal year 2045. In making these determinations, the |
13 | | required State
contribution shall be calculated each year as a |
14 | | level percentage of payroll
over the years remaining to and |
15 | | including fiscal year 2045 and shall be
determined under the |
16 | | projected unit credit actuarial cost method.
|
17 | | For State fiscal years 1996 through 2005, the State |
18 | | contribution to
the System, as a percentage of the applicable |
19 | | employee payroll, shall be
increased in equal annual increments |
20 | | so that by State fiscal year 2011, the
State is contributing at |
21 | | the rate required under this Section; except that
(i) for State |
22 | | fiscal year 1998, for all purposes of this Code and any other
|
23 | | law of this State, the certified percentage of the applicable |
24 | | employee payroll
shall be 5.052% for employees earning eligible |
25 | | creditable service under Section
14-110 and 6.500% for all |
26 | | other employees, notwithstanding any contrary
certification |
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1 | | made under Section 14-135.08 before the effective date of this
|
2 | | amendatory Act of 1997, and (ii)
in the following specified |
3 | | State fiscal years, the State contribution to
the System shall |
4 | | not be less than the following indicated percentages of the
|
5 | | applicable employee payroll, even if the indicated percentage |
6 | | will produce a
State contribution in excess of the amount |
7 | | otherwise required under this
subsection and subsection (a):
|
8 | | 9.8% in FY 1999;
10.0% in FY 2000;
10.2% in FY 2001;
10.4% in FY |
9 | | 2002;
10.6% in FY 2003; and
10.8% in FY 2004.
|
10 | | Notwithstanding any other provision of this Article, the |
11 | | total required State
contribution to the System for State |
12 | | fiscal year 2006 is $203,783,900.
|
13 | | Notwithstanding any other provision of this Article, the |
14 | | total required State
contribution to the System for State |
15 | | fiscal year 2007 is $344,164,400.
|
16 | | For each of State fiscal years 2008 through 2009, the State |
17 | | contribution to
the System, as a percentage of the applicable |
18 | | employee payroll, shall be
increased in equal annual increments |
19 | | from the required State contribution for State fiscal year |
20 | | 2007, so that by State fiscal year 2011, the
State is |
21 | | contributing at the rate otherwise required under this Section.
|
22 | | Notwithstanding any other provision of this Article, the |
23 | | total required State General Revenue Fund contribution for |
24 | | State fiscal year 2010 is $723,703,100 and shall be made from |
25 | | the proceeds of bonds sold in fiscal year 2010 pursuant to |
26 | | Section 7.2 of the General Obligation Bond Act, less (i) the |
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1 | | pro rata share of bond sale expenses determined by the System's |
2 | | share of total bond proceeds, (ii) any amounts received from |
3 | | the General Revenue Fund in fiscal year 2010, and (iii) any |
4 | | reduction in bond proceeds due to the issuance of discounted |
5 | | bonds, if applicable. |
6 | | Notwithstanding any other provision of this Article, the
|
7 | | total required State General Revenue Fund contribution for
|
8 | | State fiscal year 2011 is the amount recertified by the System |
9 | | on or before April 1, 2011 pursuant to Section 14-135.08 and |
10 | | shall be made from
the proceeds of bonds sold in fiscal year |
11 | | 2011 pursuant to
Section 7.2 of the General Obligation Bond |
12 | | Act, less (i) the
pro rata share of bond sale expenses |
13 | | determined by the System's
share of total bond proceeds, (ii) |
14 | | any amounts received from
the General Revenue Fund in fiscal |
15 | | year 2011, and (iii) any
reduction in bond proceeds due to the |
16 | | issuance of discounted
bonds, if applicable. |
17 | | Beginning in State fiscal year 2044, the minimum State |
18 | | contribution for each fiscal year shall be the amount needed to |
19 | | maintain the total assets of the System at 100% of the total |
20 | | actuarial liabilities of the System. |
21 | | Beginning in State fiscal year 2046, the minimum State |
22 | | contribution for
each fiscal year shall be the amount needed to |
23 | | maintain the total assets of
the System at 90% of the total |
24 | | actuarial liabilities of the System.
|
25 | | Amounts received by the System pursuant to Section 25 of |
26 | | the Budget Stabilization Act or Section 8.12 of the State |
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1 | | Finance Act in any fiscal year do not reduce and do not |
2 | | constitute payment of any portion of the minimum State |
3 | | contribution required under this Article in that fiscal year. |
4 | | Such amounts shall not reduce, and shall not be included in the |
5 | | calculation of, the required State contributions under this |
6 | | Article in any future year until the System has reached a |
7 | | funding ratio of at least 100% 90% . A reference in this Article |
8 | | to the "required State contribution" or any substantially |
9 | | similar term does not include or apply to any amounts payable |
10 | | to the System under Section 25 of the Budget Stabilization Act.
|
11 | | Notwithstanding any other provision of this Section, the |
12 | | required State
contribution for State fiscal year 2005 and for |
13 | | fiscal year 2008 and each fiscal year thereafter through State |
14 | | fiscal year 2013 , as
calculated under this Section and
|
15 | | certified under Section 14-135.08, shall not exceed an amount |
16 | | equal to (i) the
amount of the required State contribution that |
17 | | would have been calculated under
this Section for that fiscal |
18 | | year if the System had not received any payments
under |
19 | | subsection (d) of Section 7.2 of the General Obligation Bond |
20 | | Act, minus
(ii) the portion of the State's total debt service |
21 | | payments for that fiscal
year on the bonds issued in fiscal |
22 | | year 2003 for the purposes of that Section 7.2, as determined
|
23 | | and certified by the Comptroller, that is the same as the |
24 | | System's portion of
the total moneys distributed under |
25 | | subsection (d) of Section 7.2 of the General
Obligation Bond |
26 | | Act. In determining this maximum for State fiscal years 2008 |
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1 | | through 2010, however, the amount referred to in item (i) shall |
2 | | be increased, as a percentage of the applicable employee |
3 | | payroll, in equal increments calculated from the sum of the |
4 | | required State contribution for State fiscal year 2007 plus the |
5 | | applicable portion of the State's total debt service payments |
6 | | for fiscal year 2007 on the bonds issued in fiscal year 2003 |
7 | | for the purposes of Section 7.2 of the General
Obligation Bond |
8 | | Act, so that, by State fiscal year 2011, the
State is |
9 | | contributing at the rate otherwise required under this Section.
|
10 | | (f) After the submission of all payments for eligible |
11 | | employees
from personal services line items in fiscal year 2004 |
12 | | have been made,
the Comptroller shall provide to the System a |
13 | | certification of the sum
of all fiscal year 2004 expenditures |
14 | | for personal services that would
have been covered by payments |
15 | | to the System under this Section if the
provisions of this |
16 | | amendatory Act of the 93rd General Assembly had not been
|
17 | | enacted. Upon
receipt of the certification, the System shall |
18 | | determine the amount
due to the System based on the full rate |
19 | | certified by the Board under
Section 14-135.08 for fiscal year |
20 | | 2004 in order to meet the State's
obligation under this |
21 | | Section. The System shall compare this amount
due to the amount |
22 | | received by the System in fiscal year 2004 through
payments |
23 | | under this Section and under Section 6z-61 of the State Finance |
24 | | Act.
If the amount
due is more than the amount received, the |
25 | | difference shall be termed the
"Fiscal Year 2004 Shortfall" for |
26 | | purposes of this Section, and the
Fiscal Year 2004 Shortfall |
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1 | | shall be satisfied under Section 1.2 of the State
Pension Funds |
2 | | Continuing Appropriation Act. If the amount due is less than |
3 | | the
amount received, the
difference shall be termed the "Fiscal |
4 | | Year 2004 Overpayment" for purposes of
this Section, and the |
5 | | Fiscal Year 2004 Overpayment shall be repaid by
the System to |
6 | | the Pension Contribution Fund as soon as practicable
after the |
7 | | certification.
|
8 | | (g) For purposes of determining the required State |
9 | | contribution to the System, the value of the System's assets |
10 | | shall be equal to the actuarial value of the System's assets, |
11 | | which shall be calculated as follows: |
12 | | As of June 30, 2008, the actuarial value of the System's |
13 | | assets shall be equal to the market value of the assets as of |
14 | | that date. In determining the actuarial value of the System's |
15 | | assets for fiscal years after June 30, 2008, any actuarial |
16 | | gains or losses from investment return incurred in a fiscal |
17 | | year shall be recognized in equal annual amounts over the |
18 | | 5-year period following that fiscal year. |
19 | | (h) For purposes of determining the required State |
20 | | contribution to the System for a particular year, the actuarial |
21 | | value of assets shall be assumed to earn a rate of return equal |
22 | | to the System's actuarially assumed rate of return. |
23 | | (i) After the submission of all payments for eligible |
24 | | employees from personal services line items paid from the |
25 | | General Revenue Fund in fiscal year 2010 have been made, the |
26 | | Comptroller shall provide to the System a certification of the |
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1 | | sum of all fiscal year 2010 expenditures for personal services |
2 | | that would have been covered by payments to the System under |
3 | | this Section if the provisions of this amendatory Act of the |
4 | | 96th General Assembly had not been enacted. Upon receipt of the |
5 | | certification, the System shall determine the amount due to the |
6 | | System based on the full rate certified by the Board under |
7 | | Section 14-135.08 for fiscal year 2010 in order to meet the |
8 | | State's obligation under this Section. The System shall compare |
9 | | this amount due to the amount received by the System in fiscal |
10 | | year 2010 through payments under this Section. If the amount |
11 | | due is more than the amount received, the difference shall be |
12 | | termed the "Fiscal Year 2010 Shortfall" for purposes of this |
13 | | Section, and the Fiscal Year 2010 Shortfall shall be satisfied |
14 | | under Section 1.2 of the State Pension Funds Continuing |
15 | | Appropriation Act. If the amount due is less than the amount |
16 | | received, the difference shall be termed the "Fiscal Year 2010 |
17 | | Overpayment" for purposes of this Section, and the Fiscal Year |
18 | | 2010 Overpayment shall be repaid by the System to the General |
19 | | Revenue Fund as soon as practicable after the certification. |
20 | | (j) After the submission of all payments for eligible |
21 | | employees from personal services line items paid from the |
22 | | General Revenue Fund in fiscal year 2011 have been made, the |
23 | | Comptroller shall provide to the System a certification of the |
24 | | sum of all fiscal year 2011 expenditures for personal services |
25 | | that would have been covered by payments to the System under |
26 | | this Section if the provisions of this amendatory Act of the |
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1 | | 96th General Assembly had not been enacted. Upon receipt of the |
2 | | certification, the System shall determine the amount due to the |
3 | | System based on the full rate certified by the Board under |
4 | | Section 14-135.08 for fiscal year 2011 in order to meet the |
5 | | State's obligation under this Section. The System shall compare |
6 | | this amount due to the amount received by the System in fiscal |
7 | | year 2011 through payments under this Section. If the amount |
8 | | due is more than the amount received, the difference shall be |
9 | | termed the "Fiscal Year 2011 Shortfall" for purposes of this |
10 | | Section, and the Fiscal Year 2011 Shortfall shall be satisfied |
11 | | under Section 1.2 of the State Pension Funds Continuing |
12 | | Appropriation Act. If the amount due is less than the amount |
13 | | received, the difference shall be termed the "Fiscal Year 2011 |
14 | | Overpayment" for purposes of this Section, and the Fiscal Year |
15 | | 2011 Overpayment shall be repaid by the System to the General |
16 | | Revenue Fund as soon as practicable after the certification. |
17 | | (k) For fiscal years 2012 and 2013 only, after the |
18 | | submission of all payments for eligible employees from personal |
19 | | services line items paid from the General Revenue Fund in the |
20 | | fiscal year have been made, the Comptroller shall provide to |
21 | | the System a certification of the sum of all expenditures in |
22 | | the fiscal year for personal services. Upon receipt of the |
23 | | certification, the System shall determine the amount due to the |
24 | | System based on the full rate certified by the Board under |
25 | | Section 14-135.08 for the fiscal year in order to meet the |
26 | | State's obligation under this Section. The System shall compare |
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1 | | this amount due to the amount received by the System for the |
2 | | fiscal year. If the amount due is more than the amount |
3 | | received, the difference shall be termed the "Prior Fiscal Year |
4 | | Shortfall" for purposes of this Section, and the Prior Fiscal |
5 | | Year Shortfall shall be satisfied under Section 1.2 of the |
6 | | State Pension Funds Continuing Appropriation Act. If the amount |
7 | | due is less than the amount received, the difference shall be |
8 | | termed the "Prior Fiscal Year Overpayment" for purposes of this |
9 | | Section, and the Prior Fiscal Year Overpayment shall be repaid |
10 | | by the System to the General Revenue Fund as soon as |
11 | | practicable after the certification. |
12 | | (Source: P.A. 96-43, eff. 7-15-09; 96-45, eff. 7-15-09; |
13 | | 96-1000, eff. 7-2-10; 96-1497, eff. 1-14-11; 96-1511, eff. |
14 | | 1-27-11; 96-1554, eff. 3-18-11; 97-72, eff. 7-1-11; 97-732, |
15 | | eff. 6-30-12.)
|
16 | | (40 ILCS 5/14-132) (from Ch. 108 1/2, par. 14-132)
|
17 | | Sec. 14-132. Obligations of State ; funding guarantee . |
18 | | (a) The payment of the required department
contributions, |
19 | | all allowances,
annuities, benefits granted under this |
20 | | Article, and all expenses of
administration of the system are |
21 | | obligations of the State of Illinois to
the extent specified in |
22 | | this Article.
|
23 | | (b) All income of the system
shall be credited to a |
24 | | separate account for this system in the State
treasury and |
25 | | shall be used to pay allowances, annuities, benefits and
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1 | | administration expense.
|
2 | | (c) Beginning July 1, 2013, the State shall be |
3 | | contractually obligated to contribute to the System under |
4 | | Section 14-131 in each State fiscal year an amount not less |
5 | | than the sum of (i) the State's normal cost for that year and
|
6 | | (ii) the portion of the unfunded accrued liability assigned to |
7 | | that year by law in accordance with a schedule that distributes |
8 | | payments equitably over a reasonable period of time and in |
9 | | accordance with accepted actuarial practices. The obligations |
10 | | created under this subsection (c) are contractual obligations |
11 | | protected and enforceable under Article I, Section 16 and |
12 | | Article XIII, Section 5 of the Illinois Constitution. |
13 | | Notwithstanding any other provision of law, if the State |
14 | | fails to pay in a State fiscal year the amount guaranteed under |
15 | | this subsection, the System may bring a mandamus action in the |
16 | | Circuit Court of Sangamon County to compel the State to make |
17 | | that payment, irrespective of other remedies that
may be |
18 | | available to the System. In ordering the State to make the |
19 | | required payment, the court may order a reasonable payment |
20 | | schedule to enable the State to make the required payment |
21 | | without significantly imperiling the public health, safety, or |
22 | | welfare. |
23 | | (Source: P.A. 80-841.)
|
24 | | (40 ILCS 5/14-133) (from Ch. 108 1/2, par. 14-133)
|
25 | | Sec. 14-133. Contributions on behalf of members.
|
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1 | | (a) Each participating employee shall make contributions |
2 | | to the System,
based on the employee's compensation, as |
3 | | follows:
|
4 | | (1) Covered employees, except as indicated below, 3.5% |
5 | | for
retirement annuity, and 0.5% for a widow or survivors
|
6 | | annuity;
|
7 | | (2) Noncovered employees, except as indicated below, |
8 | | 7% for retirement
annuity and 1% for a widow or survivors |
9 | | annuity;
|
10 | | (3) Noncovered employees serving in a position in which |
11 | | "eligible
creditable service" as defined in Section 14-110 |
12 | | may be earned, 1% for a widow
or survivors annuity
plus the |
13 | | following amount for retirement annuity: 8.5% through |
14 | | December 31,
2001; 9.5% in 2002; 10.5% in 2003; and 11.5% |
15 | | in 2004 and thereafter;
|
16 | | (4) Covered employees serving in a position in which |
17 | | "eligible creditable
service" as defined in Section 14-110 |
18 | | may be earned, 0.5% for a widow or survivors annuity
plus |
19 | | the following amount for retirement annuity: 5% through |
20 | | December 31,
2001; 6% in 2002; 7% in 2003; and 8% in 2004 |
21 | | and thereafter;
|
22 | | (5) Each security employee of the Department of |
23 | | Corrections
or of the Department of Human Services who is a |
24 | | covered employee, 0.5% for a widow or survivors annuity
|
25 | | plus the following amount for retirement annuity: 5% |
26 | | through December 31,
2001; 6% in 2002; 7% in 2003; and 8% |
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1 | | in 2004 and thereafter;
|
2 | | (6) Each security employee of the Department of |
3 | | Corrections
or of the Department of Human Services who is |
4 | | not a covered employee, 1% for a widow or survivors annuity
|
5 | | plus the following amount for retirement annuity: 8.5% |
6 | | through December 31,
2001; 9.5% in 2002; 10.5% in 2003; and |
7 | | 11.5% in 2004 and thereafter.
|
8 | | (a-5) In addition to the contributions otherwise required |
9 | | under this Article, each Tier I member shall also make the |
10 | | following contributions for retirement annuity from each |
11 | | payment
of compensation: |
12 | | (1) beginning July 1, 2013 and through June 30, 2014, |
13 | | 1% of compensation; and |
14 | | (2) beginning on July 1, 2014, 2% of compensation. |
15 | | (b) Contributions shall be in the form of a deduction from
|
16 | | compensation and shall be made notwithstanding that the |
17 | | compensation
paid in cash to the employee shall be reduced |
18 | | thereby below the minimum
prescribed by law or regulation. Each |
19 | | member is deemed to consent and
agree to the deductions from |
20 | | compensation provided for in this Article,
and shall receipt in |
21 | | full for salary or compensation.
|
22 | | (Source: P.A. 92-14, eff. 6-28-01.)
|
23 | | (40 ILCS 5/14-135.08) (from Ch. 108 1/2, par. 14-135.08)
|
24 | | Sec. 14-135.08. To certify required State contributions. |
25 | | (a)
To certify to the Governor and to each department, on |
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1 | | or before
November 15 of each year through until November 15, |
2 | | 2011, the required rate for State contributions to the
System |
3 | | for the next State fiscal year, as determined under subsection |
4 | | (b) of
Section 14-131. The certification to the Governor under |
5 | | this subsection (a) shall include a copy of the
actuarial |
6 | | recommendations upon which the rate is based and shall |
7 | | specifically identify the System's projected State normal cost |
8 | | for that fiscal year .
|
9 | | (a-5) On or before November 1 of each year, beginning |
10 | | November 1, 2012, the Board shall submit to the State Actuary, |
11 | | the Governor, and the General Assembly a proposed certification |
12 | | of the amount of the required State contribution to the System |
13 | | for the next fiscal year, along with all of the actuarial |
14 | | assumptions, calculations, and data upon which that proposed |
15 | | certification is based. On or before January 1 of each year , |
16 | | beginning January 1, 2013, the State Actuary shall issue a |
17 | | preliminary report concerning the proposed certification and |
18 | | identifying, if necessary, recommended changes in actuarial |
19 | | assumptions that the Board must consider before finalizing its |
20 | | certification of the required State contributions. |
21 | | On or before January 15, 2013 and each January 15 |
22 | | thereafter, the Board shall certify to the Governor and the |
23 | | General Assembly the amount of the required State contribution |
24 | | for the next fiscal year. The certification shall include a |
25 | | copy of the actuarial
recommendations upon which it is based |
26 | | and shall specifically identify the System's projected State |
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1 | | normal cost for that fiscal year. The Board's certification |
2 | | must note any deviations from the State Actuary's recommended |
3 | | changes, the reason or reasons for not following the State |
4 | | Actuary's recommended changes, and the fiscal impact of not |
5 | | following the State Actuary's recommended changes on the |
6 | | required State contribution. |
7 | | (b) The certifications under subsections (a) and (a-5) |
8 | | shall include an additional amount necessary to pay all |
9 | | principal of and interest on those general obligation bonds due |
10 | | the next fiscal year authorized by Section 7.2(a) of the |
11 | | General Obligation Bond Act and issued to provide the proceeds |
12 | | deposited by the State with the System in July 2003, |
13 | | representing deposits other than amounts reserved under |
14 | | Section 7.2(c) of the General Obligation Bond Act. For State |
15 | | fiscal year 2005, the Board shall make a supplemental |
16 | | certification of the additional amount necessary to pay all |
17 | | principal of and interest on those general obligation bonds due |
18 | | in State fiscal years 2004 and 2005 authorized by Section |
19 | | 7.2(a) of the General Obligation Bond Act and issued to provide |
20 | | the proceeds deposited by the State with the System in July |
21 | | 2003, representing deposits other than amounts reserved under |
22 | | Section 7.2(c) of the General Obligation Bond Act, as soon as |
23 | | practical after the effective date of this amendatory Act of |
24 | | the 93rd General Assembly.
|
25 | | On or before May 1, 2004, the Board shall recalculate and |
26 | | recertify
to the Governor and to each department the amount of |
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1 | | the required State
contribution to the System and the required |
2 | | rates for State contributions
to the System for State fiscal |
3 | | year 2005, taking into account the amounts
appropriated to and |
4 | | received by the System under subsection (d) of Section
7.2 of |
5 | | the General Obligation Bond Act.
|
6 | | On or before July 1, 2005, the Board shall recalculate and |
7 | | recertify
to the Governor and to each department the amount of |
8 | | the required State
contribution to the System and the required |
9 | | rates for State contributions
to the System for State fiscal |
10 | | year 2006, taking into account the changes in required State |
11 | | contributions made by this amendatory Act of the 94th General |
12 | | Assembly.
|
13 | | On or before April 1, 2011, the Board shall recalculate and |
14 | | recertify to the Governor and to each department the amount of |
15 | | the required State contribution to the System for State fiscal |
16 | | year 2011, applying the changes made by Public Act 96-889 to |
17 | | the System's assets and liabilities as of June 30, 2009 as |
18 | | though Public Act 96-889 was approved on that date. |
19 | | On or before July 1, 2013, the Board shall, if necessary, |
20 | | recalculate and recertify
to the Governor the amount of the |
21 | | required State
contribution to the System for State fiscal year |
22 | | 2014, taking into account the changes in required State |
23 | | contributions made by this amendatory Act of the 97th General |
24 | | Assembly. |
25 | | (Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11; |
26 | | 97-694, eff. 6-18-12.)
|
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1 | | (40 ILCS 5/14-152.1)
|
2 | | Sec. 14-152.1. Application and expiration of new benefit |
3 | | increases. |
4 | | (a) As used in this Section, "new benefit increase" means |
5 | | an increase in the amount of any benefit provided under this |
6 | | Article, or an expansion of the conditions of eligibility for |
7 | | any benefit under this Article, that results from an amendment |
8 | | to this Code that takes effect after June 1, 2005 (the |
9 | | effective date of Public Act 94-4). "New benefit increase", |
10 | | however, does not include any benefit increase resulting from |
11 | | the changes made to this Article by Public Act 96-37 or by this |
12 | | amendatory Act of the 97th 96th General Assembly.
|
13 | | (b) Notwithstanding any other provision of this Code or any |
14 | | subsequent amendment to this Code, every new benefit increase |
15 | | is subject to this Section and shall be deemed to be granted |
16 | | only in conformance with and contingent upon compliance with |
17 | | the provisions of this Section.
|
18 | | (c) The Public Act enacting a new benefit increase must |
19 | | identify and provide for payment to the System of additional |
20 | | funding at least sufficient to fund the resulting annual |
21 | | increase in cost to the System as it accrues. |
22 | | Every new benefit increase is contingent upon the General |
23 | | Assembly providing the additional funding required under this |
24 | | subsection. The Commission on Government Forecasting and |
25 | | Accountability shall analyze whether adequate additional |
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1 | | funding has been provided for the new benefit increase and |
2 | | shall report its analysis to the Public Pension Division of the |
3 | | Department of Financial and Professional Regulation. A new |
4 | | benefit increase created by a Public Act that does not include |
5 | | the additional funding required under this subsection is null |
6 | | and void. If the Public Pension Division determines that the |
7 | | additional funding provided for a new benefit increase under |
8 | | this subsection is or has become inadequate, it may so certify |
9 | | to the Governor and the State Comptroller and, in the absence |
10 | | of corrective action by the General Assembly, the new benefit |
11 | | increase shall expire at the end of the fiscal year in which |
12 | | the certification is made.
|
13 | | (d) Every new benefit increase shall expire 5 years after |
14 | | its effective date or on such earlier date as may be specified |
15 | | in the language enacting the new benefit increase or provided |
16 | | under subsection (c). This does not prevent the General |
17 | | Assembly from extending or re-creating a new benefit increase |
18 | | by law. |
19 | | (e) Except as otherwise provided in the language creating |
20 | | the new benefit increase, a new benefit increase that expires |
21 | | under this Section continues to apply to persons who applied |
22 | | and qualified for the affected benefit while the new benefit |
23 | | increase was in effect and to the affected beneficiaries and |
24 | | alternate payees of such persons, but does not apply to any |
25 | | other person, including without limitation a person who |
26 | | continues in service after the expiration date and did not |
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1 | | apply and qualify for the affected benefit while the new |
2 | | benefit increase was in effect.
|
3 | | (Source: P.A. 96-37, eff. 7-13-09.) |
4 | | (40 ILCS 5/15-107.1 new) |
5 | | Sec. 15-107.1. Tier I participant. "Tier I participant": A |
6 | | participant under this Article, other than a participant in the |
7 | | self-managed plan under Section 15-158.2, who first became a |
8 | | member or participant before January 1, 2011 under any |
9 | | reciprocal retirement system or pension fund established under |
10 | | this Code other than a retirement system or pension fund |
11 | | established under Article 2, 3, 4, 5, 6, or 18 of this Code. |
12 | | (40 ILCS 5/15-107.2 new) |
13 | | Sec. 15-107.2. Tier I retiree. "Tier I retiree": A former |
14 | | Tier I participant who is receiving a retirement annuity. |
15 | | A person does not become a Tier I retiree by virtue of |
16 | | receiving a reversionary, survivors, beneficiary, or |
17 | | disability annuity.
|
18 | | (40 ILCS 5/15-111) (from Ch. 108 1/2, par. 15-111)
|
19 | | Sec. 15-111. Earnings.
"Earnings": An amount paid for |
20 | | personal services equal to the sum of
the basic compensation |
21 | | plus extra compensation for summer teaching,
overtime or other |
22 | | extra service. For periods for which an employee receives
|
23 | | service credit under subsection (c) of Section 15-113.1 or |
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1 | | Section 15-113.2,
earnings are equal to the basic compensation |
2 | | on which contributions are
paid by the employee during such |
3 | | periods. Compensation for employment which is
irregular, |
4 | | intermittent and temporary shall not be considered earnings, |
5 | | unless
the participant is also receiving earnings from the |
6 | | employer as an employee
under Section 15-107.
|
7 | | With respect to transition pay paid by the University of |
8 | | Illinois to a
person who was a participating employee employed |
9 | | in the fire department of
the University of Illinois's |
10 | | Champaign-Urbana campus immediately prior to
the elimination |
11 | | of that fire department:
|
12 | | (1) "Earnings" includes transition pay paid to the |
13 | | employee on or after
the effective date of this amendatory |
14 | | Act of the 91st General Assembly.
|
15 | | (2) "Earnings" includes transition pay paid to the |
16 | | employee before the
effective date of this amendatory Act |
17 | | of the 91st General Assembly only if (i)
employee |
18 | | contributions under Section 15-157 have been withheld from |
19 | | that
transition pay or (ii) the employee pays to the System |
20 | | before January 1, 2001
an amount representing employee |
21 | | contributions under Section 15-157 on that
transition pay. |
22 | | Employee contributions under item (ii) may be paid in a |
23 | | lump
sum, by withholding from additional transition pay |
24 | | accruing before January 1,
2001, or in any other manner |
25 | | approved by the System. Upon payment of the
employee |
26 | | contributions on transition pay, the corresponding |
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1 | | employer
contributions become an obligation of the State.
|
2 | | Notwithstanding any other provision of this Code, the |
3 | | earnings of a Tier I participant for the purposes of this Code |
4 | | shall not exceed, for periods of service on or after the |
5 | | effective date of this amendatory Act of the 97th General |
6 | | Assembly, the annual contribution and benefit base established |
7 | | for the applicable year by the Commissioner of Social Security |
8 | | under the federal Social Security Act; except that this |
9 | | limitation does not apply to a participant's earnings that are |
10 | | determined under an employment contract or collective |
11 | | bargaining agreement that is in effect on the effective date of |
12 | | this amendatory Act of the 97th General Assembly and has not |
13 | | been amended or renewed after that date. |
14 | | (Source: P.A. 91-887, eff. 7-6-00.)
|
15 | | (40 ILCS 5/15-113.6) (from Ch. 108 1/2, par. 15-113.6)
|
16 | | Sec. 15-113.6. Service for employment in public schools. |
17 | | "Service for
employment in public schools": Includes
those |
18 | | periods not exceeding the lesser of 10 years or 2/3 of the |
19 | | service
granted under other Sections of this Article dealing |
20 | | with service credit,
during which a person who entered the |
21 | | system after September 1, 1974 was
employed full time by a |
22 | | public common school, public college and public
university, or |
23 | | by an agency or instrumentality of any of the foregoing,
of any |
24 | | state, territory, dependency or possession of the United States |
25 | | of
America, including the Philippine Islands, or a school
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1 | | operated by or under
the auspices of any agency or department |
2 | | of any other state, if the person
(1) cannot qualify for a |
3 | | retirement pension or other benefit based upon
employer
|
4 | | contributions from another retirement system, exclusive of |
5 | | federal social
security, based in whole or in part upon this |
6 | | employment, and (2) pays the
lesser of (A) an amount equal to |
7 | | 8% of his or her annual basic compensation
on the date of |
8 | | becoming a participating employee subsequent to this service
|
9 | | multiplied by the number of years of such service, together |
10 | | with compound
interest from the date participation begins to |
11 | | the date payment is received
by the board at the rate of 6% per |
12 | | annum through August 31, 1982, and at
the effective rates after |
13 | | that date, and (B) 50% of the actuarial value
of the increase |
14 | | in the retirement annuity provided by this service, and
(3) |
15 | | contributes for at least 5 years subsequent to this employment |
16 | | to one
or more of the following systems: the State Universities |
17 | | Retirement System,
the Teachers' Retirement System of the State |
18 | | of Illinois, and the Public
School Teachers' Pension and |
19 | | Retirement Fund of Chicago.
|
20 | | The service granted under this Section shall not be |
21 | | considered in determining
whether the person has the minimum |
22 | | number of 8 years of service required to qualify
for a |
23 | | retirement annuity at age 55 or the 5 years of service required |
24 | | to
qualify for a retirement annuity at age 62, as provided in |
25 | | Section 15-135, or the 10 years required by subsection (c) of |
26 | | Section 1-160 for a person who first becomes a participant on |
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1 | | or after January 1, 2011 .
The maximum allowable service of 10 |
2 | | years for this governmental employment
shall be reduced by the |
3 | | service credit which is validated under paragraph
(2) of |
4 | | subsection (b) of Section 16-127 and paragraph 1 of Section |
5 | | 17-133.
|
6 | | (Source: P.A. 95-83, eff. 8-13-07; 96-1490, eff. 1-1-11.)
|
7 | | (40 ILCS 5/15-113.7) (from Ch. 108 1/2, par. 15-113.7)
|
8 | | Sec. 15-113.7. Service for other public employment. |
9 | | "Service for
other public employment": Includes those periods |
10 | | not exceeding the lesser of
10 years or 2/3 of the service |
11 | | granted under other Sections of this Article
dealing with |
12 | | service credit, during which a person was employed full time by
|
13 | | the United States government, or by the government of a state, |
14 | | or by a
political subdivision of a state, or by an agency or |
15 | | instrumentality of any of
the foregoing, if the person (1) |
16 | | cannot qualify for a retirement pension or
other benefit based |
17 | | upon employer contributions from another retirement system,
|
18 | | exclusive of federal social security, based in whole or in part |
19 | | upon this
employment, and (2) pays the lesser of (A) an amount |
20 | | equal to 8% of his or her
annual basic compensation on the date |
21 | | of becoming a participating employee
subsequent to this service |
22 | | multiplied by the number of years of such service,
together |
23 | | with compound interest from the date participation begins to |
24 | | the date
payment is received by the board at the rate of 6% per |
25 | | annum through August 31,
1982, and at the effective rates after |
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1 | | that date, and (B) 50% of the actuarial
value of the increase |
2 | | in the retirement annuity provided by this service, and
(3) |
3 | | contributes for at least 5 years subsequent to this employment |
4 | | to one or
more of the following systems: the State Universities |
5 | | Retirement System, the
Teachers' Retirement System of the State |
6 | | of Illinois, and the Public School
Teachers' Pension and |
7 | | Retirement Fund of Chicago. If a function of a
governmental |
8 | | unit as defined by Section 20-107 is transferred by law, in |
9 | | whole
or in part to an employer, and an employee transfers |
10 | | employment from this
governmental unit to such employer within |
11 | | 6 months of the transfer of the
function, the payment for |
12 | | service authorized under this Section shall not
exceed the |
13 | | amount which would have been payable for this service to the
|
14 | | retirement system covering the governmental unit from which the |
15 | | function was
transferred.
|
16 | | The service granted under this Section shall not be |
17 | | considered in determining
whether the person has the minimum |
18 | | number of 8 years of service required to qualify
for a |
19 | | retirement annuity at age 55 or the 5 years of service required |
20 | | to
qualify for a retirement annuity at age 62, as provided in |
21 | | Section 15-135 .
The maximum allowable service of 10 years for |
22 | | this governmental employment
shall be reduced by the service |
23 | | credit which is validated under paragraph
(2) of subsection (b) |
24 | | of Section 16-127 and paragraph one of Section 17-133.
|
25 | | Except as hereinafter provided, this Section shall not |
26 | | apply to
persons who become participants in the system after |
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1 | | September 1, 1974.
|
2 | | (Source: P.A. 95-83, eff. 8-13-07.)
|
3 | | (40 ILCS 5/15-134.5)
|
4 | | Sec. 15-134.5. Retirement program elections.
|
5 | | (a) All participating employees are participants under the |
6 | | traditional
benefit package prior to January 1, 1998.
|
7 | | Effective as of the date that an employer elects, as |
8 | | described in Section
15-158.2, to offer to its employees the |
9 | | portable benefit package and the
self-managed plan as |
10 | | alternatives to the traditional benefit package, each of
that |
11 | | employer's eligible employees (as defined in subsection (b)) |
12 | | shall be
given the choice to elect which retirement program he |
13 | | or she wishes to
participate in with respect to all periods of |
14 | | covered employment occurring on
and after the effective date of |
15 | | the employee's election. The retirement
program election made |
16 | | by an eligible employee must be made in writing, in the
manner |
17 | | prescribed by the System, and within the time period described |
18 | | in
subsection (d) or (d-1).
|
19 | | The employee election authorized by this Section is a |
20 | | one-time, irrevocable
election. If an employee terminates |
21 | | employment after making the election
provided under this |
22 | | subsection (a), then upon his or her subsequent
re-employment |
23 | | with an employer the original election shall automatically |
24 | | apply
to him or her, provided that the employer is then a |
25 | | participating employer as
described in Section 15-158.2.
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1 | | An eligible employee who fails to make this election shall, |
2 | | by default,
participate in the traditional benefit package.
|
3 | | (b) "Eligible employee" means an employee (as defined in |
4 | | Section
15-107) who is either a currently eligible employee or |
5 | | a newly eligible
employee. For purposes of this Section, a |
6 | | "currently eligible employee"
is an employee who is employed by |
7 | | an employer on the effective date on which
the employer offers |
8 | | to its employees the portable benefit package and the
|
9 | | self-managed plan as alternatives to the traditional benefit |
10 | | package. A "newly
eligible employee" is an employee who first |
11 | | becomes employed by an employer
after the effective date on |
12 | | which the employer offers its employees the
portable benefit |
13 | | package and the self-managed plan as alternatives to the
|
14 | | traditional benefit package.
A newly eligible employee |
15 | | participates in the traditional benefit package
until he or she |
16 | | makes an election to participate in the portable benefit
|
17 | | package or the self-managed plan. If an employee does not elect |
18 | | to participate
in the portable benefit package or the |
19 | | self-managed plan, he or she shall
continue to participate in |
20 | | the
traditional benefit package by default.
|
21 | | (c) An eligible employee who at the time he or she is first |
22 | | eligible to
make the election described in subsection (a) does |
23 | | not have sufficient age and
service to qualify for a retirement |
24 | | annuity under Section 15-135 may elect to
participate in the |
25 | | traditional benefit package, the portable benefit package,
or |
26 | | the self-managed plan. An eligible employee who has sufficient |
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1 | | age and
service to qualify for a retirement annuity under |
2 | | Section 15-135 at the time he
or she is first eligible to make |
3 | | the election described in subsection (a) may
elect to |
4 | | participate in the traditional benefit package or the portable |
5 | | benefit
package, but may not elect to participate in the |
6 | | self-managed plan.
|
7 | | (d) A currently eligible employee must make this election |
8 | | within one year
after the effective date of the employer's |
9 | | adoption of the self-managed plan.
|
10 | | A newly eligible employee must make this election within
6 |
11 | | months after the date on which the System receives the report |
12 | | of status
certification from the employer.
If an employee |
13 | | elects to participate in the self-managed plan, no employer
|
14 | | contributions shall be remitted to the self-managed plan when |
15 | | the employee's
account balance transfer is made. Employer |
16 | | contributions to the self-managed
plan shall commence as of the |
17 | | first pay period that begins after the System
receives the |
18 | | employee's election.
|
19 | | (d-1) A newly eligible employee who, prior to the effective |
20 | | date of this
amendatory Act of the 91st General Assembly, fails |
21 | | to make the election within
the period provided under |
22 | | subsection (d) and participates by default in the
traditional |
23 | | benefit package may make a late election to participate in the
|
24 | | portable benefit package or the self-managed plan instead of |
25 | | the traditional
benefit package at any time within 6 months |
26 | | after the effective date of this
amendatory Act of the 91st |
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1 | | General Assembly.
|
2 | | (e) If a currently eligible employee elects the portable |
3 | | benefit
package, that
election shall not become effective until |
4 | | the one-year anniversary of the date
on which the election is |
5 | | filed with the System, provided the employee remains
|
6 | | continuously employed by the employer throughout the one-year |
7 | | waiting period,
and any benefits payable to or on account of |
8 | | the employee before such one-year
waiting period has ended |
9 | | shall not be determined under the provisions
applicable to the |
10 | | portable benefit package but shall instead be determined in
|
11 | | accordance with the traditional benefit package. If a currently
|
12 | | eligible employee who
has elected the portable benefit package |
13 | | terminates employment covered by the
System before the one-year |
14 | | waiting period has ended, then no
benefits shall be determined |
15 | | under the portable benefit package provisions
while he or she |
16 | | is inactive in the System and upon re-employment with an
|
17 | | employer covered by the System he or she shall begin a new |
18 | | one-year waiting
period before the provisions of the portable |
19 | | benefit
package become effective.
|
20 | | (f) An eligible employee shall be provided with written |
21 | | information prepared
or prescribed by the System which |
22 | | describes the employee's retirement program
choices. The |
23 | | eligible employee shall be offered an opportunity to
receive |
24 | | counseling from the System prior to making his or her election. |
25 | | This
counseling may consist of videotaped materials, group |
26 | | presentations, individual
consultation with an employee or |
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1 | | authorized representative of the System in
person or by |
2 | | telephone or other electronic means, or any combination of |
3 | | these
methods.
|
4 | | (g) Notwithstanding any other provision of this Section, a |
5 | | person may not elect to participate or begin participation in |
6 | | the self-managed plan established under Section 15-158.2 on or |
7 | | after the effective date of this amendatory Act of the 97th |
8 | | General Assembly. |
9 | | (Source: P.A. 90-766, eff. 8-14-98; 91-887, eff. 7-6-00.)
|
10 | | (40 ILCS 5/15-135) (from Ch. 108 1/2, par. 15-135)
|
11 | | Sec. 15-135. Retirement annuities - Conditions.
|
12 | | (a) A participant who retires in one of the following |
13 | | specified years with
the specified amount of service is |
14 | | entitled to a retirement annuity at any age
under the |
15 | | retirement program applicable to the participant:
|
16 | | 35 years if retirement is in 1997 or before;
|
17 | | 34 years if retirement is in 1998;
|
18 | | 33 years if retirement is in 1999;
|
19 | | 32 years if retirement is in 2000;
|
20 | | 31 years if retirement is in 2001;
|
21 | | 30 years if retirement is in 2002 or later.
|
22 | | A participant with 8 or more years of service after |
23 | | September 1, 1941, is
entitled to a retirement annuity on or |
24 | | after attainment of age 55.
|
25 | | A participant with at least 5 but less than 8 years
of |
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1 | | service after September 1, 1941, is entitled to a retirement |
2 | | annuity on
or after attainment of age 62.
|
3 | | A participant who has at least 25 years of service in this |
4 | | system as a
police officer or firefighter is entitled to a |
5 | | retirement
annuity on or after the attainment of age 50, if |
6 | | Rule 4 of Section
15-136 is applicable to the participant.
|
7 | | (a-5) Notwithstanding subsection (a) of this Section, for a |
8 | | Tier I participant who begins receiving a retirement annuity |
9 | | under this Article after July 1, 2013: |
10 | | (1) If the Tier I participant is at least 45 years old |
11 | | on the effective date of this amendatory Act of the 97th |
12 | | General Assembly, then the references to age 50, 55, and 62 |
13 | | in subsection (a) of this Section remain unchanged. |
14 | | (2) If the Tier I participant is at least 40 but less |
15 | | than 45 years old on the effective date of this amendatory |
16 | | Act of the 97th General Assembly, then the references to |
17 | | age 50, 55, and 62 in subsection (a) of this Section are |
18 | | increased by one year. |
19 | | (3) If the Tier I participant is at least 35 but less |
20 | | than 40 years old on the effective date of this amendatory |
21 | | Act of the 97th General Assembly, then the references to |
22 | | age 50, 55, and 62 in subsection (a) of this Section are |
23 | | increased by 3 years. |
24 | | (4) If the Tier I participant is less than 35 years old |
25 | | on the effective date of this amendatory Act of the 97th |
26 | | General Assembly, then the references to age 50, 55, and 62 |
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1 | | in subsection (a) of this Section are increased by 5 years. |
2 | | Notwithstanding Section 1-103.1, this subsection (a-5) |
3 | | applies without regard to whether or not the Tier I participant |
4 | | is in active service under this Article on or after the |
5 | | effective date of this amendatory Act of the 97th General |
6 | | Assembly. |
7 | | (b) The annuity payment period shall begin on the date |
8 | | specified by the
participant or the recipient of a disability |
9 | | retirement annuity submitting a written application, which |
10 | | date shall not be prior
to termination of employment or more |
11 | | than one year before the application is
received by the board; |
12 | | however, if the participant is not an employee of an
employer |
13 | | participating in this System or in a participating system as |
14 | | defined
in Article 20 of this Code on April 1 of the calendar |
15 | | year next following
the calendar year in which the participant |
16 | | attains age 70 1/2, the annuity
payment period shall begin on |
17 | | that date regardless of whether an application
has been filed.
|
18 | | (c) An annuity is not payable if the amount provided under |
19 | | Section
15-136 is less than $10 per month.
|
20 | | (Source: P.A. 97-933, eff. 8-10-12; 97-968, eff. 8-16-12.)
|
21 | | (40 ILCS 5/15-136) (from Ch. 108 1/2, par. 15-136)
|
22 | | Sec. 15-136. Retirement annuities - Amount. The provisions |
23 | | of this
Section 15-136 apply only to those participants who are |
24 | | participating in the
traditional benefit package or the |
25 | | portable benefit package and do not
apply to participants who |
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1 | | are participating in the self-managed plan.
|
2 | | (a) The amount of a participant's retirement annuity, |
3 | | expressed in the form
of a single-life annuity, shall be |
4 | | determined by whichever of the following
rules is applicable |
5 | | and provides the largest annuity:
|
6 | | Rule 1: The retirement annuity shall be 1.67% of final rate |
7 | | of earnings for
each of the first 10 years of service, 1.90% |
8 | | for each of the next 10 years of
service, 2.10% for each year |
9 | | of service in excess of 20 but not exceeding 30,
and 2.30% for |
10 | | each year in excess of 30; or for persons who retire on or
|
11 | | after January 1, 1998, 2.2% of the final rate of earnings for |
12 | | each year of
service.
|
13 | | Rule 2: The retirement annuity shall be the sum of the |
14 | | following,
determined from amounts credited to the participant |
15 | | in accordance with the
actuarial tables and the effective rate |
16 | | of interest in effect at the
time the retirement annuity |
17 | | begins:
|
18 | | (i) the normal annuity which can be provided on an |
19 | | actuarially
equivalent basis, by the accumulated normal |
20 | | contributions as of
the date the annuity begins;
|
21 | | (ii) an annuity from employer contributions of an |
22 | | amount equal to that
which can be provided on an |
23 | | actuarially equivalent basis from the accumulated
normal |
24 | | contributions made by the participant under Section |
25 | | 15-113.6 and Section
15-113.7 plus 1.4 times all other |
26 | | accumulated normal contributions made by
the participant; |
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1 | | and
|
2 | | (iii) the annuity that can be provided on an |
3 | | actuarially equivalent basis
from the entire contribution |
4 | | made by the participant under Section 15-113.3.
|
5 | | For the purpose of calculating an annuity under this Rule |
6 | | 2, the contribution required under subsection (c-5) of Section |
7 | | 15-157 shall not be considered when determining the |
8 | | participant's accumulated normal contributions under clause |
9 | | (i) or the employer contribution under clause (ii). |
10 | | With respect to a police officer or firefighter who retires |
11 | | on or after
August 14, 1998, the accumulated normal |
12 | | contributions taken into account under
clauses (i) and (ii) of |
13 | | this Rule 2 shall include the additional normal
contributions |
14 | | made by the police officer or firefighter under Section
|
15 | | 15-157(a).
|
16 | | The amount of a retirement annuity calculated under this |
17 | | Rule 2 shall
be computed solely on the basis of the |
18 | | participant's accumulated normal
contributions, as specified |
19 | | in this Rule and defined in Section 15-116.
Neither an employee |
20 | | or employer contribution for early retirement under
Section |
21 | | 15-136.2 nor any other employer contribution shall be used in |
22 | | the
calculation of the amount of a retirement annuity under |
23 | | this Rule 2.
|
24 | | This amendatory Act of the 91st General Assembly is a |
25 | | clarification of
existing law and applies to every participant |
26 | | and annuitant without regard to
whether status as an employee |
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1 | | terminates before the effective date of this
amendatory Act.
|
2 | | This Rule 2 does not apply to a person who first becomes an |
3 | | employee under this Article on or after July 1, 2005.
|
4 | | Rule 3: The retirement annuity of a participant who is |
5 | | employed
at least one-half time during the period on which his |
6 | | or her final rate of
earnings is based, shall be equal to the |
7 | | participant's years of service
not to exceed 30, multiplied by |
8 | | (1) $96 if the participant's final rate
of earnings is less |
9 | | than $3,500, (2) $108 if the final rate of earnings is
at least |
10 | | $3,500 but less than $4,500, (3) $120 if the final rate of |
11 | | earnings
is at least $4,500 but less than $5,500, (4) $132 if |
12 | | the final rate
of earnings is at least $5,500 but less than |
13 | | $6,500, (5)
$144 if the final rate of earnings is at least |
14 | | $6,500 but less than
$7,500, (6) $156 if the final rate of |
15 | | earnings is at least $7,500 but less
than $8,500, (7) $168 if |
16 | | the final rate of earnings is at least $8,500 but
less than |
17 | | $9,500, and (8) $180 if the final rate of earnings is $9,500 or
|
18 | | more, except that the annuity for those persons having made an |
19 | | election under
Section 15-154(a-1) shall be calculated and |
20 | | payable under the portable
retirement benefit program pursuant |
21 | | to the provisions of Section 15-136.4.
|
22 | | Rule 4: A participant who is at least age 50 and has 25 or |
23 | | more years of
service as a police officer or firefighter, and a |
24 | | participant who is age 55 or
over and has at least 20 but less |
25 | | than 25 years of service as a police officer
or firefighter, |
26 | | shall be entitled to a retirement annuity of 2 1/4% of the
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1 | | final rate of earnings for each of the first 10 years of |
2 | | service as a police
officer or firefighter, 2 1/2% for each of |
3 | | the next 10 years of service as a
police officer or |
4 | | firefighter, and 2 3/4% for each year of service as a police
|
5 | | officer or firefighter in excess of 20. The retirement annuity |
6 | | for all other
service shall be computed under Rule 1.
|
7 | | For purposes of this Rule 4, a participant's service as a |
8 | | firefighter
shall also include the following:
|
9 | | (i) service that is performed while the person is an |
10 | | employee under
subsection (h) of Section 15-107; and
|
11 | | (ii) in the case of an individual who was a |
12 | | participating employee
employed in the fire department of |
13 | | the University of Illinois's
Champaign-Urbana campus |
14 | | immediately prior to the elimination of that fire
|
15 | | department and who immediately after the elimination of |
16 | | that fire department
transferred to another job with the |
17 | | University of Illinois, service performed
as an employee of |
18 | | the University of Illinois in a position other than police
|
19 | | officer or firefighter, from the date of that transfer |
20 | | until the employee's
next termination of service with the |
21 | | University of Illinois.
|
22 | | Rule 5: The retirement annuity of a participant who elected |
23 | | early
retirement under the provisions of Section 15-136.2 and |
24 | | who, on or before
February 16, 1995, brought administrative |
25 | | proceedings pursuant to the
administrative rules adopted by the |
26 | | System to challenge the calculation of his
or her retirement |
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1 | | annuity shall be the sum of the following, determined from
|
2 | | amounts credited to the participant in accordance with the |
3 | | actuarial tables and
the prescribed rate of interest in effect |
4 | | at the time the retirement annuity
begins:
|
5 | | (i) the normal annuity which can be provided on an |
6 | | actuarially equivalent
basis, by the accumulated normal |
7 | | contributions as of the date the annuity
begins; and
|
8 | | (ii) an annuity from employer contributions of an |
9 | | amount equal to that
which can be provided on an |
10 | | actuarially equivalent basis from the accumulated
normal |
11 | | contributions made by the participant under Section |
12 | | 15-113.6 and Section
15-113.7 plus 1.4 times all other |
13 | | accumulated normal contributions made by the
participant; |
14 | | and
|
15 | | (iii) an annuity which can be provided on an |
16 | | actuarially equivalent basis
from the employee |
17 | | contribution for early retirement under Section 15-136.2, |
18 | | and
an annuity from employer contributions of an amount |
19 | | equal to that which can be
provided on an actuarially |
20 | | equivalent basis from the employee contribution for
early |
21 | | retirement under Section 15-136.2.
|
22 | | In no event shall a retirement annuity under this Rule 5 be |
23 | | lower than the
amount obtained by adding (1) the monthly amount |
24 | | obtained by dividing the
combined employee and employer |
25 | | contributions made under Section 15-136.2 by the
System's |
26 | | annuity factor for the age of the participant at the beginning |
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1 | | of the
annuity payment period and (2) the amount equal to the |
2 | | participant's annuity if
calculated under Rule 1, reduced under |
3 | | Section 15-136(b) as if no
contributions had been made under |
4 | | Section 15-136.2.
|
5 | | With respect to a participant who is qualified for a |
6 | | retirement annuity under
this Rule 5 whose retirement annuity |
7 | | began before the effective date of this
amendatory Act of the |
8 | | 91st General Assembly, and for whom an employee
contribution |
9 | | was made under Section 15-136.2, the System shall recalculate |
10 | | the
retirement annuity under this Rule 5 and shall pay any |
11 | | additional amounts due
in the manner provided in Section |
12 | | 15-186.1 for benefits mistakenly set too low.
|
13 | | The amount of a retirement annuity calculated under this |
14 | | Rule 5 shall be
computed solely on the basis of those |
15 | | contributions specifically set forth in
this Rule 5. Except as |
16 | | provided in clause (iii) of this Rule 5, neither an
employee |
17 | | nor employer contribution for early retirement under Section |
18 | | 15-136.2,
nor any other employer contribution, shall be used in |
19 | | the calculation of the
amount of a retirement annuity under |
20 | | this Rule 5.
|
21 | | The General Assembly has adopted the changes set forth in |
22 | | Section 25 of this
amendatory Act of the 91st General Assembly |
23 | | in recognition that the decision of
the Appellate Court for the |
24 | | Fourth District in Mattis v. State Universities
Retirement |
25 | | System et al. might be deemed to give some right to the |
26 | | plaintiff in
that case. The changes made by Section 25 of this |
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1 | | amendatory Act of the 91st
General Assembly are a legislative |
2 | | implementation of the decision of the
Appellate Court for the |
3 | | Fourth District in Mattis v. State Universities
Retirement |
4 | | System et al. with respect to that plaintiff.
|
5 | | The changes made by Section 25 of this amendatory Act of |
6 | | the 91st General
Assembly apply without regard to whether the |
7 | | person is in service as an
employee on or after its effective |
8 | | date.
|
9 | | (b) The retirement annuity provided under Rules 1 and 3 |
10 | | above shall be
reduced by 1/2 of 1% for each month the |
11 | | participant is under age 60 at the
time of retirement. However, |
12 | | this reduction shall not apply in the following
cases:
|
13 | | (1) For a disabled participant whose disability |
14 | | benefits have been
discontinued because he or she has |
15 | | exhausted eligibility for disability
benefits under clause |
16 | | (6) of Section 15-152;
|
17 | | (2) For a participant who has at least the number of |
18 | | years of service
required to retire at any age under |
19 | | subsection (a) of Section 15-135; or
|
20 | | (3) For that portion of a retirement annuity which has |
21 | | been provided on
account of service of the participant |
22 | | during periods when he or she performed
the duties of a |
23 | | police officer or firefighter, if these duties were |
24 | | performed
for at least 5 years immediately preceding the |
25 | | date the retirement annuity
is to begin.
|
26 | | (c) The maximum retirement annuity provided under Rules 1, |
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1 | | 2, 4,
and 5
shall be the lesser of (1) the annual limit of |
2 | | benefits as specified in
Section 415 of the Internal Revenue |
3 | | Code of 1986, as such Section may be
amended from time to time |
4 | | and as such benefit limits shall be adjusted by
the |
5 | | Commissioner of Internal Revenue, and (2) 80% of final rate of
|
6 | | earnings.
|
7 | | (d) Subject to the provisions of subsections (d-1) and |
8 | | (d-2), an An annuitant whose status as an employee terminates |
9 | | after August 14,
1969 shall receive automatic increases in his |
10 | | or her retirement annuity as
follows:
|
11 | | Effective January 1 immediately following the date the |
12 | | retirement annuity
begins, the annuitant shall receive an |
13 | | increase in his or her monthly
retirement annuity of 0.125% of |
14 | | the monthly retirement annuity provided under
Rule 1, Rule 2, |
15 | | Rule 3, Rule 4, or Rule 5, contained in this
Section, |
16 | | multiplied by
the number of full months which elapsed from the |
17 | | date the retirement annuity
payments began to January 1, 1972, |
18 | | plus 0.1667% of such annuity, multiplied by
the number of full |
19 | | months which elapsed from January 1, 1972, or the date the
|
20 | | retirement annuity payments began, whichever is later, to |
21 | | January 1, 1978, plus
0.25% of such annuity multiplied by the |
22 | | number of full months which elapsed
from January 1, 1978, or |
23 | | the date the retirement annuity payments began,
whichever is |
24 | | later, to the effective date of the increase.
|
25 | | The annuitant shall receive an increase in his or her |
26 | | monthly retirement
annuity on each January 1 thereafter during |
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1 | | the annuitant's life of 3% of
the monthly annuity provided |
2 | | under Rule 1, Rule 2, Rule 3, Rule 4, or
Rule 5 contained
in |
3 | | this Section. The change made under this subsection by P.A. |
4 | | 81-970 is
effective January 1, 1980 and applies to each |
5 | | annuitant whose status as
an employee terminates before or |
6 | | after that date.
|
7 | | Beginning January 1, 1990 and except as provided in |
8 | | subsections (d-1) and (d-2) , all automatic annual increases |
9 | | payable under
this Section shall be calculated as a percentage |
10 | | of the total annuity
payable at the time of the increase, |
11 | | including all increases previously
granted under this Article.
|
12 | | The change made in this subsection by P.A. 85-1008 is |
13 | | effective January
26, 1988, and is applicable without regard to |
14 | | whether status as an employee
terminated before that date.
|
15 | | (d-1) Notwithstanding any other provision of this Article, |
16 | | for a Tier I retiree, the amount of each automatic annual |
17 | | increase in retirement annuity occurring on or after the |
18 | | effective date of this amendatory Act of the 97th General |
19 | | Assembly shall be the lesser of $750 or 3% of the total annuity
|
20 | | payable at the time of the increase, including previous |
21 | | increases granted. |
22 | | (d-2) Notwithstanding any other provision of this Article, |
23 | | for a Tier I retiree, the monthly retirement annuity shall |
24 | | first be subject to annual increases on the January 1 occurring |
25 | | on or next after the attainment of age 67 or the January 1 |
26 | | occurring on or next after the fifth anniversary of the annuity |
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1 | | start date, whichever occurs earlier. If on the effective date |
2 | | of this amendatory Act of the 97th General Assembly a Tier I |
3 | | retiree has already received an annual increase under this |
4 | | Section but does not yet meet the new eligibility requirements |
5 | | of this subsection, the annual increases already received shall |
6 | | continue in force, but no additional annual increase shall be |
7 | | granted until the Tier I retiree meets the new eligibility |
8 | | requirements. |
9 | | (d-3) Notwithstanding Section 1-103.1, subsections (d-1) |
10 | | and (d-2) apply without regard to whether or not the Tier I |
11 | | retiree is in active service under this Article on or after the |
12 | | effective date of this amendatory Act of the 97th General |
13 | | Assembly. |
14 | | (e) If, on January 1, 1987, or the date the retirement |
15 | | annuity payment
period begins, whichever is later, the sum of |
16 | | the retirement annuity
provided under Rule 1 or Rule 2 of this |
17 | | Section
and the automatic annual increases provided under the |
18 | | preceding subsection
or Section 15-136.1, amounts to less than |
19 | | the retirement
annuity which would be provided by Rule 3, the |
20 | | retirement
annuity shall be increased as of January 1, 1987, or |
21 | | the date the
retirement annuity payment period begins, |
22 | | whichever is later, to the amount
which would be provided by |
23 | | Rule 3 of this Section. Such increased
amount shall be |
24 | | considered as the retirement annuity in determining
benefits |
25 | | provided under other Sections of this Article. This paragraph
|
26 | | applies without regard to whether status as an employee |
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1 | | terminated before the
effective date of this amendatory Act of |
2 | | 1987, provided that the annuitant was
employed at least |
3 | | one-half time during the period on which the final rate of
|
4 | | earnings was based.
|
5 | | (f) A participant is entitled to such additional annuity as |
6 | | may be provided
on an actuarially equivalent basis, by any |
7 | | accumulated
additional contributions to his or her credit. |
8 | | However,
the additional contributions made by the participant |
9 | | toward the automatic
increases in annuity provided under this |
10 | | Section and the contributions made under subsection (c-5) of |
11 | | Section 15-157 by this amendatory Act of the 97th General |
12 | | Assembly shall not be taken into
account in determining the |
13 | | amount of such additional annuity.
|
14 | | (g) If, (1) by law, a function of a governmental unit, as |
15 | | defined by Section
20-107 of this Code, is transferred in whole |
16 | | or in part to an employer, and (2)
a participant transfers |
17 | | employment from such governmental unit to such employer
within |
18 | | 6 months after the transfer of the function, and (3) the sum of |
19 | | (A) the
annuity payable to the participant under Rule 1, 2, or |
20 | | 3 of this Section (B)
all proportional annuities payable to the |
21 | | participant by all other retirement
systems covered by Article |
22 | | 20, and (C) the initial primary insurance amount to
which the |
23 | | participant is entitled under the Social Security Act, is less |
24 | | than
the retirement annuity which would have been payable if |
25 | | all of the
participant's pension credits validated under |
26 | | Section 20-109 had been validated
under this system, a |
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1 | | supplemental annuity equal to the difference in such
amounts |
2 | | shall be payable to the participant.
|
3 | | (h) On January 1, 1981, an annuitant who was receiving
a |
4 | | retirement annuity on or before January 1, 1971 shall have his |
5 | | or her
retirement annuity then being paid increased $1 per |
6 | | month for
each year of creditable service. On January 1, 1982, |
7 | | an annuitant whose
retirement annuity began on or before |
8 | | January 1, 1977, shall have his or her
retirement annuity then |
9 | | being paid increased $1 per month for each year of
creditable |
10 | | service.
|
11 | | (i) On January 1, 1987, any annuitant whose retirement |
12 | | annuity began on or
before January 1, 1977, shall have the |
13 | | monthly retirement annuity increased by
an amount equal to 8¢ |
14 | | per year of creditable service times the number of years
that |
15 | | have elapsed since the annuity began.
|
16 | | (j) For participants to whom subsection (a-5) of Section |
17 | | 15-135 applies, the references to age 50, 55, and 62 in this |
18 | | Section are increased as provided in subsection (a-5) of |
19 | | Section 15-135. |
20 | | (Source: P.A. 97-933, eff. 8-10-12; 97-968, eff. 8-16-12.)
|
21 | | (40 ILCS 5/15-155) (from Ch. 108 1/2, par. 15-155)
|
22 | | Sec. 15-155. Employer contributions.
|
23 | | (a) The State of Illinois shall make contributions by |
24 | | appropriations of
amounts which, together with the other |
25 | | employer contributions from trust,
federal, and other funds , |
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1 | | employee contributions, income from investments,
and other |
2 | | income of this System, will be sufficient to meet the cost of
|
3 | | maintaining and administering the System on a 100% 90% funded |
4 | | basis in accordance
with actuarial recommendations by the end |
5 | | of State fiscal year 2043 .
|
6 | | Beginning with State fiscal year 2014, the State's required |
7 | | contributions to the System under subsection (a-1) shall be |
8 | | limited to the amounts required to amortize the total cost of |
9 | | the benefits of the System arising before July 1, 2013. The |
10 | | State shall also pay any employer contributions required from |
11 | | the State as the actual employer of participants under this |
12 | | Article and any contribution required under subsection (a-20). |
13 | | The Board shall determine the amount of State and employer |
14 | | contributions required for
each fiscal year on the basis of the |
15 | | actuarial tables and other assumptions
adopted by the Board and |
16 | | the recommendations of the actuary, using the formulas provided |
17 | | in this Section formula
in subsection (a-1) .
|
18 | | (a-1) For State fiscal years 2014 through 2043, the minimum |
19 | | contribution to the System to be made by the State under this |
20 | | subsection (a-1) for each fiscal year shall be an amount |
21 | | determined by the Board to be sufficient to amortize the |
22 | | unfunded accrued liability that is attributable to benefits |
23 | | that accrued before July 1, 2013 as a level percentage of |
24 | | payroll over the years remaining to and including fiscal year |
25 | | 2043, determined under the projected unit credit actuarial cost |
26 | | method. |
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1 | | For State fiscal year 2044 and thereafter, the minimum |
2 | | contribution to the System to be made by the State under this |
3 | | subsection (a-1) for each fiscal year shall be an amount |
4 | | determined by the Board to be sufficient to amortize, over a |
5 | | 30-year rolling amortization period, any unfunded liability |
6 | | arising on or after July 1, 2043 that is attributable to |
7 | | benefits that accrued before July 1, 2013. |
8 | | For State fiscal years 2012 and 2013 through 2045 , the |
9 | | minimum contribution
to the System to be made by the State for |
10 | | each fiscal year shall be an amount
determined by the System to |
11 | | be sufficient to bring the total assets of the
System up to 90% |
12 | | of the total actuarial liabilities of the System by the end of
|
13 | | State fiscal year 2045. In making these determinations, the |
14 | | required State
contribution shall be calculated each year as a |
15 | | level percentage of payroll
over the years remaining to and |
16 | | including fiscal year 2045 and shall be
determined under the |
17 | | projected unit credit actuarial cost method.
|
18 | | For State fiscal years 1996 through 2005, the State |
19 | | contribution to
the System, as a percentage of the applicable |
20 | | employee payroll, shall be
increased in equal annual increments |
21 | | so that by State fiscal year 2011, the
State is contributing at |
22 | | the rate required under this Section.
|
23 | | Notwithstanding any other provision of this Article, the |
24 | | total required State
contribution for State fiscal year 2006 is |
25 | | $166,641,900.
|
26 | | Notwithstanding any other provision of this Article, the |
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1 | | total required State
contribution for State fiscal year 2007 is |
2 | | $252,064,100.
|
3 | | For each of State fiscal years 2008 through 2009, the State |
4 | | contribution to
the System, as a percentage of the applicable |
5 | | employee payroll, shall be
increased in equal annual increments |
6 | | from the required State contribution for State fiscal year |
7 | | 2007, so that by State fiscal year 2011, the
State is |
8 | | contributing at the rate otherwise required under this Section.
|
9 | | Notwithstanding any other provision of this Article, the |
10 | | total required State contribution for State fiscal year 2010 is |
11 | | $702,514,000 and shall be made from the State Pensions Fund and |
12 | | proceeds of bonds sold in fiscal year 2010 pursuant to Section |
13 | | 7.2 of the General Obligation Bond Act, less (i) the pro rata |
14 | | share of bond sale expenses determined by the System's share of |
15 | | total bond proceeds, (ii) any amounts received from the General |
16 | | Revenue Fund in fiscal year 2010, (iii) any reduction in bond |
17 | | proceeds due to the issuance of discounted bonds, if |
18 | | applicable. |
19 | | Notwithstanding any other provision of this Article, the
|
20 | | total required State contribution for State fiscal year 2011 is
|
21 | | the amount recertified by the System on or before April 1, 2011 |
22 | | pursuant to Section 15-165 and shall be made from the State |
23 | | Pensions Fund and
proceeds of bonds sold in fiscal year 2011 |
24 | | pursuant to Section
7.2 of the General Obligation Bond Act, |
25 | | less (i) the pro rata
share of bond sale expenses determined by |
26 | | the System's share of
total bond proceeds, (ii) any amounts |
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1 | | received from the General
Revenue Fund in fiscal year 2011, and |
2 | | (iii) any reduction in bond
proceeds due to the issuance of |
3 | | discounted bonds, if
applicable. |
4 | | Beginning in State fiscal year 2046, the minimum State |
5 | | contribution for
each fiscal year shall be the amount needed to |
6 | | maintain the total assets of
the System at 90% of the total |
7 | | actuarial liabilities of the System.
|
8 | | Amounts received by the System pursuant to Section 25 of |
9 | | the Budget Stabilization Act or Section 8.12 of the State |
10 | | Finance Act in any fiscal year do not reduce and do not |
11 | | constitute payment of any portion of the minimum State |
12 | | contribution required under this Article in that fiscal year. |
13 | | Such amounts shall not reduce, and shall not be included in the |
14 | | calculation of, the required State contributions under this |
15 | | Article in any future year until the System has reached a |
16 | | funding ratio of at least 100% 90% . A reference in this Article |
17 | | to the "required State contribution" or any substantially |
18 | | similar term does not include or apply to any amounts payable |
19 | | to the System under Section 25 of the Budget Stabilization Act. |
20 | | Notwithstanding any other provision of this Section, the |
21 | | required State
contribution for State fiscal year 2005 and for |
22 | | fiscal year 2008 and each fiscal year thereafter through State |
23 | | fiscal year 2013 , as
calculated under this Section and
|
24 | | certified under Section 15-165, shall not exceed an amount |
25 | | equal to (i) the
amount of the required State contribution that |
26 | | would have been calculated under
this Section for that fiscal |
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1 | | year if the System had not received any payments
under |
2 | | subsection (d) of Section 7.2 of the General Obligation Bond |
3 | | Act, minus
(ii) the portion of the State's total debt service |
4 | | payments for that fiscal
year on the bonds issued in fiscal |
5 | | year 2003 for the purposes of that Section 7.2, as determined
|
6 | | and certified by the Comptroller, that is the same as the |
7 | | System's portion of
the total moneys distributed under |
8 | | subsection (d) of Section 7.2 of the General
Obligation Bond |
9 | | Act. In determining this maximum for State fiscal years 2008 |
10 | | through 2010, however, the amount referred to in item (i) shall |
11 | | be increased, as a percentage of the applicable employee |
12 | | payroll, in equal increments calculated from the sum of the |
13 | | required State contribution for State fiscal year 2007 plus the |
14 | | applicable portion of the State's total debt service payments |
15 | | for fiscal year 2007 on the bonds issued in fiscal year 2003 |
16 | | for the purposes of Section 7.2 of the General
Obligation Bond |
17 | | Act, so that, by State fiscal year 2011, the
State is |
18 | | contributing at the rate otherwise required under this Section.
|
19 | | (a-10) Subject to the limitations provided in subsection |
20 | | (a-15), beginning with State fiscal year 2014, the minimum |
21 | | required contribution of each employer under this Article shall |
22 | | be sufficient to produce an annual amount equal to: |
23 | | (i) the employer's normal cost for that fiscal year, |
24 | | exclusive of the employer's normal cost that arises from |
25 | | optional employer contributions agreed to by that employer |
26 | | for that fiscal year under Section 1-161; plus |
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1 | | (ii) the employer's normal cost for that fiscal year |
2 | | that arises from optional employer contributions agreed to |
3 | | by that employer for that fiscal year under Section 1-161; |
4 | | plus |
5 | | (iii) the amount required for that fiscal year to |
6 | | amortize that employer's portion of the unfunded accrued |
7 | | liability associated with the cost of benefits accrued on |
8 | | or after July 1, 2013 as a level percentage of payroll over |
9 | | a 30-year rolling amortization period, as determined for |
10 | | each employer by the Board. |
11 | | Each employer under this Article shall make these |
12 | | contributions in the amounts determined and the manner |
13 | | prescribed from time to time by the Board. |
14 | | (a-15) The System shall determine the employer's normal |
15 | | cost under item (i) of subsection (a-10) as a percentage of |
16 | | projected payroll applicable to all employers, based on |
17 | | actuarial assumptions applicable to the System as a whole. The |
18 | | required employer contribution under item (i) in a fiscal year |
19 | | shall not exceed a percentage of payroll determined by |
20 | | subtracting 2013 from the applicable fiscal year and |
21 | | multiplying the result by 0.5%. |
22 | | The System shall determine the employer's normal cost under |
23 | | item (ii) of subsection (a-10) as an additional percentage of |
24 | | projected payroll payable by a specific employer, based on the |
25 | | optional employer contributions agreed to by that employer for |
26 | | that fiscal year under Section 1-161 and the actuarial |
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1 | | assumptions applicable to the System as a whole. |
2 | | The System shall determine the employer's portion of the |
3 | | unfunded accrued liability under item (iii) of subsection |
4 | | (a-10) separately for each employer, as a percentage of that |
5 | | employer's projected payroll, based on the liabilities |
6 | | attributable to that employer arising on or after July 1, 2013 |
7 | | and the actuarial assumptions applicable to the System as a |
8 | | whole. |
9 | | For use in determining the employer's contribution for |
10 | | unfunded accrued liability under item (iii), the System shall |
11 | | maintain a separate account for each employer. The separate |
12 | | account shall be maintained in such form and detail as the |
13 | | System determines to be appropriate. The separate account shall |
14 | | reflect the following items to the extent that they are |
15 | | attributable to that employer and arise on or after July 1, |
16 | | 2013: employer contributions, State contributions under |
17 | | subsection (a-20), employee contributions, investment returns, |
18 | | payments of benefits, and that employer's proportionate share |
19 | | of the System's administrative expenses. |
20 | | In the event that the Board determines that there is a |
21 | | deficiency or surplus in the account of an employer with |
22 | | respect to the , the Board shall determine the employer's |
23 | | contribution rate under item (iii) of subsection (a-10) so as |
24 | | to address that deficiency or surplus over a reasonable period |
25 | | of time as determined by the Board. |
26 | | (a-20) Beginning in State fiscal year 2014, for any fiscal |
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1 | | year in which (1) the System's normal cost for all employers |
2 | | for that fiscal year, exclusive of the normal cost that arises |
3 | | from optional employer contributions agreed to by employers for |
4 | | that fiscal year under Section 1-161, exceeds (2) the total |
5 | | contribution calculated under item (i) of subsection (a-10) for |
6 | | all employers for that fiscal year, the State shall make an |
7 | | additional contribution to the System for that fiscal year |
8 | | equal to the difference. |
9 | | The State contribution under this subsection (a-20) is in |
10 | | addition to the State contributions required under subsection |
11 | | (a-1) and any contributions required to be paid by the State as |
12 | | an employer under subsection (a-10) of this Section. |
13 | | (b) If an employee is paid from trust or federal funds, the |
14 | | employer
shall pay to the Board contributions from those funds |
15 | | which are
sufficient to cover the accruing normal costs on |
16 | | behalf of the employee.
However, universities having employees |
17 | | who are compensated out of local
auxiliary funds, income funds, |
18 | | or service enterprise funds are not required
to pay such |
19 | | contributions on behalf of those employees. The local auxiliary
|
20 | | funds, income funds, and service enterprise funds of |
21 | | universities shall not be
considered trust funds for the |
22 | | purpose of this Article, but funds of alumni
associations, |
23 | | foundations, and athletic associations which are affiliated |
24 | | with
the universities included as employers under this Article |
25 | | and other employers
which do not receive State appropriations |
26 | | are considered to be trust funds for
the purpose of this |
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1 | | Article.
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2 | | (b-1) The City of Urbana and the City of Champaign shall |
3 | | each make
employer contributions to this System for their |
4 | | respective firefighter
employees who participate in this |
5 | | System pursuant to subsection (h) of Section
15-107. The rate |
6 | | of contributions to be made by those municipalities shall
be |
7 | | determined annually by the Board on the basis of the actuarial |
8 | | assumptions
adopted by the Board and the recommendations of the |
9 | | actuary, and shall be
expressed as a percentage of salary for |
10 | | each such employee. The Board shall
certify the rate to the |
11 | | affected municipalities as soon as may be practical.
The |
12 | | employer contributions required under this subsection shall be |
13 | | remitted by
the municipality to the System at the same time and |
14 | | in the same manner as
employee contributions.
|
15 | | (c) Through State fiscal year 1995: The total employer |
16 | | contribution shall
be apportioned among the various funds of |
17 | | the State and other employers,
whether trust, federal, or other |
18 | | funds, in accordance with actuarial procedures
approved by the |
19 | | Board. State of Illinois contributions for employers receiving
|
20 | | State appropriations for personal services shall be payable |
21 | | from appropriations
made to the employers or to the System. The |
22 | | contributions for Class I
community colleges covering earnings |
23 | | other than those paid from trust and
federal funds, shall be |
24 | | payable solely from appropriations to the Illinois
Community |
25 | | College Board or the System for employer contributions.
|
26 | | (d) Beginning in State fiscal year 1996, the required State |
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1 | | contributions
to the System shall be appropriated directly to |
2 | | the System and shall be payable
through vouchers issued in |
3 | | accordance with subsection (c) of Section 15-165, except as |
4 | | provided in subsection (g).
|
5 | | (e) The State Comptroller shall draw warrants payable to |
6 | | the System upon
proper certification by the System or by the |
7 | | employer in accordance with the
appropriation laws and this |
8 | | Code.
|
9 | | (f) Normal costs under this Section means liability for
|
10 | | pensions and other benefits which accrues to the System because |
11 | | of the
credits earned for service rendered by the participants |
12 | | during the
fiscal year and expenses of administering the |
13 | | System, but shall not
include the principal of or any |
14 | | redemption premium or interest on any bonds
issued by the Board |
15 | | or any expenses incurred or deposits required in
connection |
16 | | therewith.
|
17 | | (g) The employer contributions under this subsection (g) |
18 | | are no longer required after June 30, 2013. |
19 | | If the amount of a participant's earnings for any academic |
20 | | year used to determine the final rate of earnings, determined |
21 | | on a full-time equivalent basis, exceeds the amount of his or |
22 | | her earnings with the same employer for the previous academic |
23 | | year, determined on a full-time equivalent basis, by more than |
24 | | 6%, the participant's employer shall pay to the System, in |
25 | | addition to all other payments required under this Section and |
26 | | in accordance with guidelines established by the System, the |
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1 | | present value of the increase in benefits resulting from the |
2 | | portion of the increase in earnings that is in excess of 6%. |
3 | | This present value shall be computed by the System on the basis |
4 | | of the actuarial assumptions and tables used in the most recent |
5 | | actuarial valuation of the System that is available at the time |
6 | | of the computation. The System may require the employer to |
7 | | provide any pertinent information or documentation. |
8 | | Whenever it determines that a payment is or may be required |
9 | | under this subsection (g), the System shall calculate the |
10 | | amount of the payment and bill the employer for that amount. |
11 | | The bill shall specify the calculations used to determine the |
12 | | amount due. If the employer disputes the amount of the bill, it |
13 | | may, within 30 days after receipt of the bill, apply to the |
14 | | System in writing for a recalculation. The application must |
15 | | specify in detail the grounds of the dispute and, if the |
16 | | employer asserts that the calculation is subject to subsection |
17 | | (h) or (i) of this Section, must include an affidavit setting |
18 | | forth and attesting to all facts within the employer's |
19 | | knowledge that are pertinent to the applicability of subsection |
20 | | (h) or (i). Upon receiving a timely application for |
21 | | recalculation, the System shall review the application and, if |
22 | | appropriate, recalculate the amount due.
|
23 | | The employer contributions required under this subsection |
24 | | (g) (f) may be paid in the form of a lump sum within 90 days |
25 | | after receipt of the bill. If the employer contributions are |
26 | | not paid within 90 days after receipt of the bill, then |
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1 | | interest will be charged at a rate equal to the System's annual |
2 | | actuarially assumed rate of return on investment compounded |
3 | | annually from the 91st day after receipt of the bill. Payments |
4 | | must be concluded within 3 years after the employer's receipt |
5 | | of the bill. |
6 | | (h) This subsection (h) applies only to payments made or |
7 | | salary increases given on or after June 1, 2005 but before July |
8 | | 1, 2011. The changes made by Public Act 94-1057 shall not |
9 | | require the System to refund any payments received before July |
10 | | 31, 2006 (the effective date of Public Act 94-1057). |
11 | | When assessing payment for any amount due under subsection |
12 | | (g), the System shall exclude earnings increases paid to |
13 | | participants under contracts or collective bargaining |
14 | | agreements entered into, amended, or renewed before June 1, |
15 | | 2005.
|
16 | | When assessing payment for any amount due under subsection |
17 | | (g), the System shall exclude earnings increases paid to a |
18 | | participant at a time when the participant is 10 or more years |
19 | | from retirement eligibility under Section 15-135.
|
20 | | When assessing payment for any amount due under subsection |
21 | | (g), the System shall exclude earnings increases resulting from |
22 | | overload work, including a contract for summer teaching, or |
23 | | overtime when the employer has certified to the System, and the |
24 | | System has approved the certification, that: (i) in the case of |
25 | | overloads (A) the overload work is for the sole purpose of |
26 | | academic instruction in excess of the standard number of |
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1 | | instruction hours for a full-time employee occurring during the |
2 | | academic year that the overload is paid and (B) the earnings |
3 | | increases are equal to or less than the rate of pay for |
4 | | academic instruction computed using the participant's current |
5 | | salary rate and work schedule; and (ii) in the case of |
6 | | overtime, the overtime was necessary for the educational |
7 | | mission. |
8 | | When assessing payment for any amount due under subsection |
9 | | (g), the System shall exclude any earnings increase resulting |
10 | | from (i) a promotion for which the employee moves from one |
11 | | classification to a higher classification under the State |
12 | | Universities Civil Service System, (ii) a promotion in academic |
13 | | rank for a tenured or tenure-track faculty position, or (iii) a |
14 | | promotion that the Illinois Community College Board has |
15 | | recommended in accordance with subsection (k) of this Section. |
16 | | These earnings increases shall be excluded only if the |
17 | | promotion is to a position that has existed and been filled by |
18 | | a member for no less than one complete academic year and the |
19 | | earnings increase as a result of the promotion is an increase |
20 | | that results in an amount no greater than the average salary |
21 | | paid for other similar positions. |
22 | | (i) When assessing payment for any amount due under |
23 | | subsection (g), the System shall exclude any salary increase |
24 | | described in subsection (h) of this Section given on or after |
25 | | July 1, 2011 but before July 1, 2014 under a contract or |
26 | | collective bargaining agreement entered into, amended, or |
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1 | | renewed on or after June 1, 2005 but before July 1, 2011. |
2 | | Notwithstanding any other provision of this Section, any |
3 | | payments made or salary increases given after June 30, 2014 |
4 | | shall be used in assessing payment for any amount due under |
5 | | subsection (g) of this Section.
|
6 | | (j) The System shall prepare a report and file copies of |
7 | | the report with the Governor and the General Assembly by |
8 | | January 1, 2007 that contains all of the following information: |
9 | | (1) The number of recalculations required by the |
10 | | changes made to this Section by Public Act 94-1057 for each |
11 | | employer. |
12 | | (2) The dollar amount by which each employer's |
13 | | contribution to the System was changed due to |
14 | | recalculations required by Public Act 94-1057. |
15 | | (3) The total amount the System received from each |
16 | | employer as a result of the changes made to this Section by |
17 | | Public Act 94-4. |
18 | | (4) The increase in the required State contribution |
19 | | resulting from the changes made to this Section by Public |
20 | | Act 94-1057. |
21 | | (k) The Illinois Community College Board shall adopt rules |
22 | | for recommending lists of promotional positions submitted to |
23 | | the Board by community colleges and for reviewing the |
24 | | promotional lists on an annual basis. When recommending |
25 | | promotional lists, the Board shall consider the similarity of |
26 | | the positions submitted to those positions recognized for State |
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1 | | universities by the State Universities Civil Service System. |
2 | | The Illinois Community College Board shall file a copy of its |
3 | | findings with the System. The System shall consider the |
4 | | findings of the Illinois Community College Board when making |
5 | | determinations under this Section. The System shall not exclude |
6 | | any earnings increases resulting from a promotion when the |
7 | | promotion was not submitted by a community college. Nothing in |
8 | | this subsection (k) shall require any community college to |
9 | | submit any information to the Community College Board.
|
10 | | (l) For purposes of determining the required State |
11 | | contribution to the System, the value of the System's assets |
12 | | shall be equal to the actuarial value of the System's assets, |
13 | | which shall be calculated as follows: |
14 | | As of June 30, 2008, the actuarial value of the System's |
15 | | assets shall be equal to the market value of the assets as of |
16 | | that date. In determining the actuarial value of the System's |
17 | | assets for fiscal years after June 30, 2008, any actuarial |
18 | | gains or losses from investment return incurred in a fiscal |
19 | | year shall be recognized in equal annual amounts over the |
20 | | 5-year period following that fiscal year. |
21 | | (m) For purposes of determining the required State |
22 | | contribution to the system for a particular year, the actuarial |
23 | | value of assets shall be assumed to earn a rate of return equal |
24 | | to the system's actuarially assumed rate of return. |
25 | | (Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11; |
26 | | 96-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-813, eff. |
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1 | | 7-13-12; revised 10-17-12.)
|
2 | | (40 ILCS 5/15-155.1 new) |
3 | | Sec. 15-155.1. Actions to enforce payments by employers |
4 | | other than the State. Any employer, other than the State, that |
5 | | fails to transmit to the System contributions required of
it |
6 | | under this Article or contributions required of employees, for |
7 | | more
than 90 days after such contributions are due, is subject |
8 | | to the following:
after giving notice to the employer, the |
9 | | System may certify
to the State Comptroller or the Illinois |
10 | | Community College Board, whichever is applicable, the
amounts |
11 | | of such delinquent payments and the State Comptroller or the |
12 | | Illinois Community College Board, whichever is applicable, |
13 | | shall deduct the amounts so certified
or any part thereof from |
14 | | any State funds to be remitted
to the employer and shall
pay |
15 | | the amount so deducted to the System. If State funds from which
|
16 | | such deductions may be made are not available, the System may |
17 | | proceed
against the employer to recover the
amounts of such |
18 | | delinquent payments in the appropriate circuit court. |
19 | | The System may provide for an
audit of the records of an |
20 | | employer, other than the State, as
may be required to establish |
21 | | the amounts of required contributions.
The employer shall make |
22 | | its records
available to the System for the purpose of such |
23 | | audit. The cost of such
audit shall be added to the amount of |
24 | | the delinquent payments and may
be recovered by the System from |
25 | | the employer at the same time and in the same manner as the |
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1 | | delinquent payments
are recovered.
|
2 | | (40 ILCS 5/15-156) (from Ch. 108 1/2, par. 15-156)
|
3 | | Sec. 15-156. Obligations of State ; funding guarantees . |
4 | | (a) The payment of (1) the
required State contributions, |
5 | | (2) all benefits
granted under this system and (3) all expenses |
6 | | in connection with the
administration and operation thereof are |
7 | | obligations of the State of
Illinois to the extent specified in |
8 | | this Article. The accumulated
employee normal, additional and |
9 | | survivors insurance contributions
credited to the accounts of |
10 | | active and inactive participants
shall not be used to pay the |
11 | | State's share of the obligations.
|
12 | | (b) Beginning July 1, 2013, the State shall be |
13 | | contractually obligated to contribute to the System under |
14 | | Section 15-155 in each State fiscal year an amount not less |
15 | | than the sum of (i) the State's required contribution under |
16 | | subsections (a-10) and (a-20) of Section 15-155 and
(ii) the |
17 | | portion of the total cost of the benefits of the System arising |
18 | | before July 1, 2013 assigned to that State fiscal year by law |
19 | | in accordance with a schedule that distributes payments |
20 | | equitably over a reasonable period of time and in accordance |
21 | | with accepted actuarial practices. The obligations created |
22 | | under this subsection (b) are contractual obligations |
23 | | protected and enforceable under Article I, Section 16 and |
24 | | Article XIII, Section 5 of the Illinois Constitution. |
25 | | Notwithstanding any other provision of law, if the State |
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1 | | fails to pay in a State fiscal year the amount guaranteed under |
2 | | this subsection, the System may bring a mandamus action in the |
3 | | circuit court of Champaign or Sangamon County to compel the |
4 | | State to make that payment, irrespective of other remedies that
|
5 | | may be available to the System. In ordering the State to make |
6 | | the required payment, the court may order a reasonable payment |
7 | | schedule to enable the State to make the required payment |
8 | | without significantly imperiling the public health, safety, or |
9 | | welfare. |
10 | | (Source: P.A. 83-1440.)
|
11 | | (40 ILCS 5/15-157) (from Ch. 108 1/2, par. 15-157)
|
12 | | Sec. 15-157. Employee Contributions.
|
13 | | (a) Each participating employee
shall make contributions |
14 | | towards the retirement
benefits payable under the retirement |
15 | | program applicable to the
employee from each payment
of |
16 | | earnings applicable to employment under this system on and |
17 | | after the
date of becoming a participant as follows: Prior to |
18 | | September 1, 1949,
3 1/2% of earnings; from September 1, 1949 |
19 | | to August 31, 1955, 5%; from
September 1, 1955 to August 31, |
20 | | 1969, 6%; from September 1, 1969, 6 1/2%.
These contributions |
21 | | are to be considered as normal contributions for purposes
of |
22 | | this Article.
|
23 | | Each participant who is a police officer or firefighter |
24 | | shall make normal
contributions of 8% of each payment of |
25 | | earnings applicable to employment as a
police officer or |
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1 | | firefighter under this system on or after September 1, 1981,
|
2 | | unless he or she files with the board within 60 days after the |
3 | | effective date
of this amendatory Act of 1991 or 60 days after |
4 | | the board receives notice that
he or she is employed as a |
5 | | police officer or firefighter, whichever is later,
a written |
6 | | notice waiving the retirement formula provided by Rule 4 of |
7 | | Section
15-136. This waiver shall be irrevocable. If a |
8 | | participant had met the
conditions set forth in Section |
9 | | 15-132.1 prior to the effective date of this
amendatory Act of |
10 | | 1991 but failed to make the additional normal contributions
|
11 | | required by this paragraph, he or she may elect to pay the |
12 | | additional
contributions plus compound interest at the |
13 | | effective rate. If such payment
is received by the board, the |
14 | | service shall be considered as police officer
service in |
15 | | calculating the retirement annuity under Rule 4 of Section |
16 | | 15-136.
While performing service described in clause (i) or |
17 | | (ii) of Rule 4 of Section
15-136, a participating employee |
18 | | shall be deemed to be employed as a
firefighter for the purpose |
19 | | of determining the rate of employee contributions
under this |
20 | | Section.
|
21 | | (b) Starting September 1, 1969, each participating |
22 | | employee shall make
additional contributions of 1/2 of 1% of |
23 | | earnings to finance a portion
of the cost of the annual |
24 | | increases in retirement annuity provided under
Section 15-136, |
25 | | except that with respect to participants in the
self-managed |
26 | | plan this additional contribution shall be used to finance the
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1 | | benefits obtained under that retirement program.
|
2 | | (c) In addition to the amounts described in subsections (a) |
3 | | and (b) of this
Section, each participating employee shall make |
4 | | contributions of 1% of earnings
applicable under this system on |
5 | | and after August 1, 1959. The contributions
made under this |
6 | | subsection (c) shall be considered as survivor's insurance
|
7 | | contributions for purposes of this Article if the employee is |
8 | | covered under
the traditional benefit package, and such |
9 | | contributions shall be considered
as additional contributions |
10 | | for purposes of this Article if the employee is
participating |
11 | | in the self-managed plan or has elected to participate in the
|
12 | | portable benefit package and has completed the applicable |
13 | | one-year waiting
period. Contributions in excess of $80 during |
14 | | any fiscal year beginning before
August 31, 1969 and in excess |
15 | | of $120 during any fiscal year thereafter until
September 1, |
16 | | 1971 shall be considered as additional contributions for |
17 | | purposes
of this Article.
|
18 | | (c-5) In addition to the contributions otherwise required |
19 | | under this Article, each Tier I participant shall also make the |
20 | | following contributions toward the retirement
benefits payable |
21 | | under the retirement program applicable to the
employee from |
22 | | each payment
of earnings applicable to employment under this |
23 | | system: |
24 | | (1) beginning July 1, 2013 and through June 30, 2014, |
25 | | 1% of earnings; and |
26 | | (2) beginning on July 1, 2014, 2% of earnings. |
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1 | | Except as otherwise specified, these contributions are to |
2 | | be considered as normal contributions for purposes
of this |
3 | | Article. |
4 | | (d) If the board by board rule so permits and subject to |
5 | | such conditions
and limitations as may be specified in its |
6 | | rules, a participant may make
other additional contributions of |
7 | | such percentage of earnings or amounts as
the participant shall |
8 | | elect in a written notice thereof received by the board.
|
9 | | (e) That fraction of a participant's total accumulated |
10 | | normal
contributions, the numerator of which is equal to the |
11 | | number of years of
service in excess of that which is required |
12 | | to qualify for the maximum
retirement annuity, and the |
13 | | denominator of which is equal to the total
service of the |
14 | | participant, shall be considered as accumulated additional
|
15 | | contributions. The determination of the applicable maximum |
16 | | annuity and
the adjustment in contributions required by this |
17 | | provision shall be made
as of the date of the participant's |
18 | | retirement.
|
19 | | (f) Notwithstanding the foregoing, a participating |
20 | | employee shall not
be required to make contributions under this |
21 | | Section after the date upon
which continuance of such |
22 | | contributions would otherwise cause his or her
retirement |
23 | | annuity to exceed the maximum retirement annuity as specified |
24 | | in
clause (1) of subsection (c) of Section 15-136.
|
25 | | (g) A participating employee may make contributions for the |
26 | | purchase of
service credit under this Article.
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1 | | (Source: P.A. 90-32, eff. 6-27-97; 90-65, eff. 7-7-97; 90-448, |
2 | | eff. 8-16-97;
90-511, eff. 8-22-97; 90-576, eff. 3-31-98; |
3 | | 90-655, eff. 7-30-98; 90-766, eff.
8-14-98.)
|
4 | | (40 ILCS 5/15-158.2)
|
5 | | Sec. 15-158.2. Self-managed plan.
|
6 | | (a) Purpose. The General Assembly finds that it is |
7 | | important for colleges
and universities to be able to attract |
8 | | and retain the most qualified employees
and that in order to |
9 | | attract and retain these employees, colleges and
universities |
10 | | should have the flexibility to provide a defined contribution
|
11 | | plan as an alternative for eligible employees who elect not to |
12 | | participate
in a defined benefit retirement program provided |
13 | | under this Article.
Accordingly, the State Universities |
14 | | Retirement System is hereby authorized to
establish and |
15 | | administer a self-managed plan, which shall offer |
16 | | participating
employees who became participating employees |
17 | | before the effective date of this amendatory Act of the 97th |
18 | | General Assembly the opportunity to accumulate assets for |
19 | | retirement through a
combination of employee and employer |
20 | | contributions that may be invested in
mutual funds, collective |
21 | | investment funds, or other investment products and
used to |
22 | | purchase annuity contracts, either fixed or variable or a |
23 | | combination
thereof. The plan must be qualified under the |
24 | | Internal Revenue Code of 1986.
|
25 | | (b) Adoption by employers. Until the effective date of this |
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1 | | amendatory Act of the 97th General Assembly, each Each employer |
2 | | subject to this Article may
elect to adopt the self-managed |
3 | | plan established under this Section; this
election is |
4 | | irrevocable. An employer's election to adopt the self-managed
|
5 | | plan makes available to the eligible employees of that employer |
6 | | the elections
described in Section 15-134.5.
|
7 | | The State Universities Retirement System shall be the plan |
8 | | sponsor for the
self-managed plan and shall prepare a plan |
9 | | document and prescribe such rules
and procedures as are |
10 | | considered necessary or desirable for the administration
of the |
11 | | self-managed plan. Consistent with its fiduciary duty to the
|
12 | | participants and beneficiaries of the self-managed plan, the |
13 | | Board of Trustees
of the System may delegate aspects of plan |
14 | | administration as it sees fit to
companies authorized to do |
15 | | business in this State, to the employers, or to a
combination |
16 | | of both.
|
17 | | (c) Selection of service providers and funding vehicles. |
18 | | The System, in
consultation with the employers, shall solicit |
19 | | proposals to provide
administrative services and funding |
20 | | vehicles for the self-managed plan from
insurance and annuity |
21 | | companies and mutual fund companies, banks, trust
companies, or |
22 | | other financial institutions authorized to do business in this
|
23 | | State. In reviewing the proposals received and approving and |
24 | | contracting with
no fewer than 2 and no more than 7 companies, |
25 | | the Board of Trustees of the System shall
consider, among other |
26 | | things, the following criteria:
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1 | | (1) the nature and extent of the benefits that would be |
2 | | provided
to the participants;
|
3 | | (2) the reasonableness of the benefits in relation to |
4 | | the premium
charged;
|
5 | | (3) the suitability of the benefits to the needs and
|
6 | | interests of the participating employees and the employer;
|
7 | | (4) the ability of the company to provide benefits |
8 | | under the contract and
the financial stability of the |
9 | | company; and
|
10 | | (5) the efficacy of the contract in the recruitment and |
11 | | retention of
employees.
|
12 | | The System, in consultation with the employers, shall |
13 | | periodically review
each approved company. A company may |
14 | | continue to provide administrative
services and funding |
15 | | vehicles for the self-managed plan only so long as
it continues |
16 | | to be an approved company under contract with the Board.
|
17 | | (d) Employee Direction. Employees who are participating in |
18 | | the program
must be allowed to direct the transfer of their |
19 | | account balances among the
various investment options offered, |
20 | | subject to applicable contractual
provisions.
The participant |
21 | | shall not be deemed a fiduciary by reason of providing such
|
22 | | investment direction. A person who is a fiduciary shall not be |
23 | | liable for any
loss resulting from such investment direction |
24 | | and shall not be deemed to have
breached any fiduciary duty by |
25 | | acting in accordance with that direction.
Neither the System |
26 | | nor the employer guarantees any of the investments in the
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1 | | employee's account balances.
|
2 | | (e) Participation. An employee eligible to participate in |
3 | | the
self-managed plan must make a written election in |
4 | | accordance with the
provisions of Section 15-134.5 and the |
5 | | procedures established by the System.
Participation in the |
6 | | self-managed plan by an electing employee shall begin
on the |
7 | | first day of the first pay period following the later of the |
8 | | date the
employee's election is filed with the System or the |
9 | | effective date as of
which the employee's employer begins to |
10 | | offer participation in the self-managed
plan. Employers may not |
11 | | make the self-managed plan available earlier than
January 1, |
12 | | 1998. An employee's participation in any other retirement |
13 | | program
administered by the System under this Article shall |
14 | | terminate on the date that
participation in the self-managed |
15 | | plan begins.
|
16 | | An employee who has elected to participate in the |
17 | | self-managed plan under
this Section must continue |
18 | | participation while employed in an eligible
position, and may |
19 | | not participate in any other retirement program administered
by |
20 | | the System under this Article while employed by that employer |
21 | | or any other
employer that has adopted the self-managed plan, |
22 | | unless the self-managed plan
is terminated in accordance with |
23 | | subsection (i).
|
24 | | Participation in the self-managed plan under this Section |
25 | | shall constitute
membership in the State Universities |
26 | | Retirement System.
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1 | | A participant under this Section shall be entitled to the |
2 | | benefits of
Article 20 of this Code.
|
3 | | (f) Establishment of Initial Account Balance. If at the |
4 | | time an employee
elects to participate in the self-managed plan |
5 | | he or she has rights and credits
in the System due to previous |
6 | | participation in the traditional benefit package,
the System |
7 | | shall establish for the employee an opening account balance in |
8 | | the
self-managed plan, equal to the amount of contribution |
9 | | refund that the employee
would be eligible to receive under |
10 | | Section 15-154 if the employee terminated
employment on that |
11 | | date and elected a refund of contributions, except that this
|
12 | | hypothetical refund shall include interest at the effective |
13 | | rate for the
respective years. The System shall transfer assets |
14 | | from the defined benefit
retirement program to the self-managed |
15 | | plan, as a tax free transfer in
accordance with Internal |
16 | | Revenue Service guidelines, for purposes of funding
the |
17 | | employee's opening account balance.
|
18 | | (g) No Duplication of Service Credit. Notwithstanding any |
19 | | other provision
of this Article, an employee may not purchase |
20 | | or receive service or service
credit applicable to any other |
21 | | retirement program administered by the System
under this |
22 | | Article for any period during which the employee was a |
23 | | participant
in the self-managed plan established under this |
24 | | Section.
|
25 | | (h) Contributions. The self-managed plan shall be funded by |
26 | | contributions
from employees participating in the self-managed |
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1 | | plan and employer
contributions as provided in this Section.
|
2 | | The contribution rate for employees participating in the |
3 | | self-managed plan
under this Section shall be equal to the |
4 | | employee contribution rate for other
participants in the |
5 | | System, as provided in Section 15-157. This required
|
6 | | contribution shall be made as an "employer pick-up" under |
7 | | Section 414(h) of the
Internal Revenue Code of 1986 or any |
8 | | successor Section thereof. Any employee
participating in the |
9 | | System's traditional benefit package prior to his or her
|
10 | | election to participate in the self-managed plan shall continue |
11 | | to have the
employer pick up the contributions required under |
12 | | Section 15-157. However, the
amounts picked up after the |
13 | | election of the self-managed plan shall be remitted
to and |
14 | | treated as assets of the self-managed plan. In no event shall |
15 | | an
employee have an option of receiving these amounts in cash. |
16 | | Employees may make
additional contributions to the
|
17 | | self-managed plan in accordance with procedures prescribed by |
18 | | the System, to
the extent permitted under rules prescribed by |
19 | | the System.
|
20 | | The program shall provide for employer contributions to be |
21 | | credited to each
self-managed plan participant at a rate of |
22 | | 7.6%
of the participating employee's salary, less the amount |
23 | | used by
the System to provide disability benefits for the |
24 | | employee.
The amounts so credited
shall be paid into the |
25 | | participant's self-managed plan accounts in a manner
to be |
26 | | prescribed by the System.
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1 | | An amount of employer contribution, not exceeding 1% of the |
2 | | participating
employee's salary, shall be used for the purpose |
3 | | of providing the disability
benefits of the System to the |
4 | | employee. Prior to the beginning of each plan
year under the |
5 | | self-managed plan, the Board of Trustees shall determine, as a
|
6 | | percentage of salary, the amount of employer contributions to |
7 | | be allocated
during that plan year for providing disability |
8 | | benefits for employees in the
self-managed plan.
|
9 | | The State of Illinois shall make contributions by |
10 | | appropriations to the
System of the employer contributions |
11 | | required for employees who participate in
the self-managed plan |
12 | | under this Section.
The amount required shall
be certified by |
13 | | the Board of Trustees of the System and paid by the State in
|
14 | | accordance with Section 15-165. The System shall not be |
15 | | obligated to remit the
required employer contributions to any |
16 | | of the insurance and annuity
companies, mutual fund
companies, |
17 | | banks, trust companies, financial institutions, or other |
18 | | sponsors
of any of the funding vehicles offered under the |
19 | | self-managed plan
until it has received the required employer |
20 | | contributions from the State. In
the event of a deficiency in |
21 | | the amount of State contributions, the System
shall implement |
22 | | those procedures described in subsection (c) of Section 15-165
|
23 | | to obtain the required funding from the General Revenue
Fund.
|
24 | | (i) Termination. The self-managed plan authorized under |
25 | | this
Section may be terminated by the System, subject to the |
26 | | terms
of any relevant
contracts, and the System shall have no |
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1 | | obligation to
reestablish the self-managed plan under this |
2 | | Section. This Section does not
create a right
to continued |
3 | | participation in any self-managed plan set up by the System |
4 | | under
this Section. If the self-managed plan is terminated,
the |
5 | | participants shall have the right to participate in one of the |
6 | | other
retirement programs offered by the System and receive |
7 | | service credit in such
other retirement program for any years |
8 | | of employment following the termination.
|
9 | | (j) Vesting; Withdrawal; Return to Service. A participant |
10 | | in the
self-managed plan becomes vested in the employer |
11 | | contributions credited to his
or her accounts in the |
12 | | self-managed plan on the earliest to occur of the
following: |
13 | | (1) completion of 5 years of service with an employer described |
14 | | in
Section 15-106; (2) the death of the participating employee |
15 | | while employed by
an employer described in Section 15-106, if |
16 | | the participant has completed at
least 1 1/2 years of service; |
17 | | or (3) the participant's election to retire and
apply the |
18 | | reciprocal provisions of Article 20 of this Code.
|
19 | | A participant in the self-managed plan who receives a |
20 | | distribution of his or
her vested amounts from the self-managed |
21 | | plan
while not yet eligible for retirement under this Article
|
22 | | (and Article 20, if applicable) shall forfeit all service |
23 | | credit
and accrued rights in the System; if subsequently |
24 | | re-employed, the participant
shall be considered a new
|
25 | | employee. If a former participant again becomes a participating |
26 | | employee (or
becomes employed by a participating system under |
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1 | | Article 20 of this Code) and
continues as such for at least 2 |
2 | | years, all such rights, service credits, and
previous status as |
3 | | a participant shall be restored upon repayment of the amount
of |
4 | | the distribution, without interest.
|
5 | | (k) Benefit amounts. If an employee who is vested in |
6 | | employer
contributions terminates employment, the employee |
7 | | shall be entitled to a
benefit which is based on the
account |
8 | | values attributable to both employer and
employee |
9 | | contributions and any
investment return thereon.
|
10 | | If an employee who is not vested in employer contributions |
11 | | terminates
employment, the employee shall be entitled to a |
12 | | benefit based solely on the
account values attributable to the |
13 | | employee's contributions and any investment
return thereon, |
14 | | and the employer contributions and any investment return
|
15 | | thereon shall be forfeited. Any employer contributions which |
16 | | are forfeited
shall be held in escrow by the
company investing |
17 | | those contributions and shall be used as directed by the
System |
18 | | for future allocations of employer contributions or for the |
19 | | restoration
of amounts previously forfeited by former |
20 | | participants who again become
participating employees.
|
21 | | (l) Notwithstanding any other provision of this Section, a |
22 | | person may not elect to participate or begin participation in |
23 | | the self-managed plan established under this Section on or |
24 | | after the effective date of this amendatory Act of the 97th |
25 | | General Assembly. |
26 | | (Source: P.A. 93-347, eff. 7-24-03.)
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1 | | (40 ILCS 5/15-165)
(from Ch. 108 1/2, par. 15-165)
|
2 | | Sec. 15-165. To certify amounts and submit vouchers.
|
3 | | (a) The Board shall certify to the Governor on or before |
4 | | November 15 of each
year through until November 15, 2011 the |
5 | | appropriation required from State funds for the purposes of |
6 | | this
System for the following fiscal year. The certification |
7 | | under this subsection (a) shall include a copy
of the actuarial |
8 | | recommendations upon which it is based and shall specifically |
9 | | identify the System's projected State normal cost for that |
10 | | fiscal year and the projected State cost for the self-managed |
11 | | plan for that fiscal year .
|
12 | | On or before May 1, 2004, the Board shall recalculate and |
13 | | recertify to
the Governor the amount of the required State |
14 | | contribution to the System for
State fiscal year 2005, taking |
15 | | into account the amounts appropriated to and
received by the |
16 | | System under subsection (d) of Section 7.2 of the General
|
17 | | Obligation Bond Act.
|
18 | | On or before July 1, 2005, the Board shall recalculate and |
19 | | recertify
to the Governor the amount of the required State
|
20 | | contribution to the System for State fiscal year 2006, taking |
21 | | into account the changes in required State contributions made |
22 | | by this amendatory Act of the 94th General Assembly.
|
23 | | On or before April 1, 2011, the Board shall recalculate and |
24 | | recertify to the Governor the amount of the required State |
25 | | contribution to the System for State fiscal year 2011, applying |
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1 | | the changes made by Public Act 96-889 to the System's assets |
2 | | and liabilities as of June 30, 2009 as though Public Act 96-889 |
3 | | was approved on that date. |
4 | | On or before July 1, 2013, the Board shall, if necessary, |
5 | | recalculate and recertify
to the Governor the amount of the |
6 | | required State
contribution to the System for State fiscal year |
7 | | 2014, taking into account the changes in required State |
8 | | contributions made by this amendatory Act of the 97th General |
9 | | Assembly. |
10 | | (a-5) On or before November 1 of each year, beginning |
11 | | November 1, 2012, the Board shall submit to the State Actuary, |
12 | | the Governor, and the General Assembly a proposed certification |
13 | | of the amount of the required State contribution to the System |
14 | | for the next fiscal year, along with all of the actuarial |
15 | | assumptions, calculations, and data upon which that proposed |
16 | | certification is based. On or before January 1 of each year, |
17 | | beginning January 1, 2013, the State Actuary shall issue a |
18 | | preliminary report concerning the proposed certification and |
19 | | identifying, if necessary, recommended changes in actuarial |
20 | | assumptions that the Board must consider before finalizing its |
21 | | certification of the required State contributions. |
22 | | On or before January 15, 2013 and each January 15 |
23 | | thereafter, the Board shall certify to the Governor and the |
24 | | General Assembly the amount of the required State contribution |
25 | | for the next fiscal year. The certification shall include a |
26 | | copy of the actuarial
recommendations upon which it is based |
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1 | | and shall specifically identify the System's projected State |
2 | | normal cost for that fiscal year and the projected State cost |
3 | | for the self-managed plan for that fiscal year. The Board's |
4 | | certification must note, in a written response to the State |
5 | | Actuary, any deviations from the State Actuary's recommended |
6 | | changes, the reason or reasons for not following the State |
7 | | Actuary's recommended changes, and the fiscal impact of not |
8 | | following the State Actuary's recommended changes on the |
9 | | required State contribution. |
10 | | (b) The Board shall certify to the State Comptroller or |
11 | | employer, as the
case may be, from time to time, by its |
12 | | president and secretary, with its seal
attached, the amounts |
13 | | payable to the System from the various funds.
|
14 | | (c) Beginning in State fiscal year 1996, on or as soon as |
15 | | possible after the
15th day of each month the Board shall |
16 | | submit vouchers for payment of State
contributions to the |
17 | | System, in a total monthly amount of one-twelfth of the
|
18 | | required annual State contribution certified under subsection |
19 | | (a).
From the effective date of this amendatory Act
of the 93rd |
20 | | General Assembly through June 30, 2004, the Board shall not
|
21 | | submit vouchers for the remainder of fiscal year 2004 in excess |
22 | | of the
fiscal year 2004 certified contribution amount |
23 | | determined
under this Section after taking into consideration |
24 | | the transfer to the
System under subsection (b) of Section |
25 | | 6z-61 of the State Finance Act.
These
vouchers shall be paid by |
26 | | the State Comptroller and Treasurer by warrants drawn
on the |
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1 | | funds appropriated to the System for that fiscal year.
|
2 | | If in any month the amount remaining unexpended from all |
3 | | other
appropriations to the System for the applicable fiscal |
4 | | year (including the
appropriations to the System under Section |
5 | | 8.12 of the State Finance Act and
Section 1 of the State |
6 | | Pension Funds Continuing Appropriation Act) is less than
the |
7 | | amount lawfully vouchered under this Section, the difference |
8 | | shall be paid
from the General Revenue Fund under the |
9 | | continuing appropriation authority
provided in Section 1.1 of |
10 | | the State Pension Funds Continuing Appropriation
Act.
|
11 | | (d) So long as the payments received are the full amount |
12 | | lawfully
vouchered under this Section, payments received by the |
13 | | System under this
Section shall be applied first toward the |
14 | | employer contribution to the
self-managed plan established |
15 | | under Section 15-158.2. Payments shall be
applied second toward |
16 | | the employer's portion of the normal costs of the System,
as |
17 | | defined in subsection (f) of Section 15-155. The balance shall |
18 | | be applied
toward the unfunded actuarial liabilities of the |
19 | | System.
|
20 | | (e) In the event that the System does not receive, as a |
21 | | result of
legislative enactment or otherwise, payments |
22 | | sufficient to
fully fund the employer contribution to the |
23 | | self-managed plan
established under Section 15-158.2 and to |
24 | | fully fund that portion of the
employer's portion of the normal |
25 | | costs of the System, as calculated in
accordance with Section |
26 | | 15-155(a-1), then any payments received shall be
applied |
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1 | | proportionately to the optional retirement program established |
2 | | under
Section 15-158.2 and to the employer's portion of the |
3 | | normal costs of the
System, as calculated in accordance with |
4 | | Section 15-155(a-1).
|
5 | | (Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11; |
6 | | 97-694, eff. 6-18-12.)
|
7 | | (40 ILCS 5/15-198)
|
8 | | Sec. 15-198. Application and expiration of new benefit |
9 | | increases. |
10 | | (a) As used in this Section, "new benefit increase" means |
11 | | an increase in the amount of any benefit provided under this |
12 | | Article, or an expansion of the conditions of eligibility for |
13 | | any benefit under this Article or Article 1 , that results from |
14 | | an amendment to this Code that takes effect after the effective |
15 | | date of this amendatory Act of the 94th General Assembly. "New |
16 | | benefit increase", however, does not include any benefit |
17 | | increase resulting from the changes made to this Article or |
18 | | Article 1 by this amendatory Act of the 97th General Assembly. |
19 | | (b) Notwithstanding any other provision of this Code or any |
20 | | subsequent amendment to this Code, every new benefit increase |
21 | | is subject to this Section and shall be deemed to be granted |
22 | | only in conformance with and contingent upon compliance with |
23 | | the provisions of this Section.
|
24 | | (c) The Public Act enacting a new benefit increase must |
25 | | identify and provide for payment to the System of additional |
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1 | | funding at least sufficient to fund the resulting annual |
2 | | increase in cost to the System as it accrues. |
3 | | Every new benefit increase is contingent upon the General |
4 | | Assembly providing the additional funding required under this |
5 | | subsection. The Commission on Government Forecasting and |
6 | | Accountability shall analyze whether adequate additional |
7 | | funding has been provided for the new benefit increase and |
8 | | shall report its analysis to the Public Pension Division of the |
9 | | Department of Financial and Professional Regulation. A new |
10 | | benefit increase created by a Public Act that does not include |
11 | | the additional funding required under this subsection is null |
12 | | and void. If the Public Pension Division determines that the |
13 | | additional funding provided for a new benefit increase under |
14 | | this subsection is or has become inadequate, it may so certify |
15 | | to the Governor and the State Comptroller and, in the absence |
16 | | of corrective action by the General Assembly, the new benefit |
17 | | increase shall expire at the end of the fiscal year in which |
18 | | the certification is made.
|
19 | | (d) Every new benefit increase shall expire 5 years after |
20 | | its effective date or on such earlier date as may be specified |
21 | | in the language enacting the new benefit increase or provided |
22 | | under subsection (c). This does not prevent the General |
23 | | Assembly from extending or re-creating a new benefit increase |
24 | | by law. |
25 | | (e) Except as otherwise provided in the language creating |
26 | | the new benefit increase, a new benefit increase that expires |
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1 | | under this Section continues to apply to persons who applied |
2 | | and qualified for the affected benefit while the new benefit |
3 | | increase was in effect and to the affected beneficiaries and |
4 | | alternate payees of such persons, but does not apply to any |
5 | | other person, including without limitation a person who |
6 | | continues in service after the expiration date and did not |
7 | | apply and qualify for the affected benefit while the new |
8 | | benefit increase was in effect.
|
9 | | (Source: P.A. 94-4, eff. 6-1-05.) |
10 | | (40 ILCS 5/16-106.4 new) |
11 | | Sec. 16-106.4. Tier I member. "Tier I member": A member |
12 | | under this Article who first became a member or participant |
13 | | before January 1, 2011 under any reciprocal retirement system |
14 | | or pension fund established under this Code other than a |
15 | | retirement system or pension fund established under Article 2, |
16 | | 3, 4, 5, 6, or 18 of this Code. |
17 | | (40 ILCS 5/16-106.5 new) |
18 | | Sec. 16-106.5. Tier I retiree. "Tier I retiree": A former |
19 | | Tier I member who is receiving a retirement annuity.
|
20 | | (40 ILCS 5/16-121) (from Ch. 108 1/2, par. 16-121)
|
21 | | Sec. 16-121. Salary. "Salary": The actual compensation |
22 | | received by a teacher during any
school year and recognized by |
23 | | the system in accordance with
rules of the board. For purposes |
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1 | | of this Section, "school year" includes
the regular school term |
2 | | plus any additional period for which a teacher is
compensated |
3 | | and such compensation is recognized by the rules of the board.
|
4 | | Notwithstanding any other provision of this Code, the |
5 | | salary of a Tier I member for the purposes of this Code shall |
6 | | not exceed, for periods of service on or after the effective |
7 | | date of this amendatory Act of the 97th General Assembly, the |
8 | | annual contribution and benefit base established for the |
9 | | applicable year by the Commissioner of Social Security under |
10 | | the federal Social Security Act; except that this limitation |
11 | | does not apply to a member's salary that is determined under an |
12 | | employment contract or collective bargaining agreement that is |
13 | | in effect on the effective date of this amendatory Act of the |
14 | | 97th General Assembly and has not been amended or renewed after |
15 | | that date. |
16 | | (Source: P.A. 84-1028.)
|
17 | | (40 ILCS 5/16-132) (from Ch. 108 1/2, par. 16-132)
|
18 | | Sec. 16-132. Retirement annuity eligibility. |
19 | | (a) A member who has at least 20 years of creditable |
20 | | service is entitled to a
retirement annuity upon or after |
21 | | attainment of age 55.
A member who has at least 10 but less |
22 | | than 20 years of creditable service is
entitled to a retirement |
23 | | annuity upon or after attainment of age 60.
A member who has at |
24 | | least 5 but less than 10 years of creditable service is
|
25 | | entitled to a retirement annuity upon or after attainment of |
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1 | | age 62.
A member who (i) has earned during the period |
2 | | immediately preceding the last
day of service at least one year |
3 | | of contributing creditable service as an
employee of a |
4 | | department as defined in Section 14-103.04, (ii) has earned at
|
5 | | least 5 years of contributing creditable service as an employee |
6 | | of a department
as defined in Section 14-103.04, and (iii) |
7 | | retires on or after January 1, 2001
is entitled to a retirement |
8 | | annuity upon or after attainment of an age which,
when added to |
9 | | the number of years of his or her total creditable service,
|
10 | | equals at least 85. Portions of years shall be counted as |
11 | | decimal equivalents.
|
12 | | A member who is eligible to receive a retirement annuity of |
13 | | at least 74.6% of
final average salary and will attain age 55 |
14 | | on or before December 31 during the
year which commences on |
15 | | July 1 shall be deemed to attain age 55 on the
preceding June |
16 | | 1.
|
17 | | (b) Notwithstanding subsection (a) of this Section, for a |
18 | | Tier I member who begins receiving a retirement annuity under |
19 | | this Article after July 1, 2013: |
20 | | (1) If the Tier I member is at least 45 years old on |
21 | | the effective date of this amendatory Act of the 97th |
22 | | General Assembly, then the references to age 55, 60, and 62 |
23 | | in subsection (a) of this Section remain unchanged and the |
24 | | reference to 85 in subsection (a) of this Section remains |
25 | | unchanged. |
26 | | (2) If the Tier I member is at least 40 but less than |
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1 | | 45 years old on the effective date of this amendatory Act |
2 | | of the 97th General Assembly, then the references to age |
3 | | 55, 60, and 62 in subsection (a) of this Section are |
4 | | increased by one year and the reference to 85 in subsection |
5 | | (a) is increased to 87. |
6 | | (3) If the Tier I member is at least 35 but less than |
7 | | 40 years old on the effective date of this amendatory Act |
8 | | of the 97th General Assembly, then the references to age |
9 | | 55, 60, and 62 in subsection (a) of this Section are |
10 | | increased by 3 years and the reference to 85 in subsection |
11 | | (a) is increased to 91. |
12 | | (4) If the Tier I member is less than 35 years old on |
13 | | the effective date of this amendatory Act of the 97th |
14 | | General Assembly, then the references to age 55, 60, and 62 |
15 | | in subsection (a) of this Section are increased by 5 years |
16 | | and the reference to 85 in subsection (a) is increased to |
17 | | 95. |
18 | | Notwithstanding Section 1-103.1, this subsection (b) |
19 | | applies without regard to whether or not the Tier I member is |
20 | | in active service under this Article on or after the effective |
21 | | date of this amendatory Act of the 97th General Assembly. |
22 | | (c) A member meeting the above eligibility conditions is |
23 | | entitled to a retirement
annuity upon written application to |
24 | | the board setting forth the date the member
wishes the |
25 | | retirement annuity to commence. However, the effective date of |
26 | | the
retirement annuity shall be no earlier than the day |
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1 | | following the last day of
creditable service, regardless of the |
2 | | date of official termination of
employment.
|
3 | | (d) To be eligible for a retirement annuity, a member shall |
4 | | not be employed
as a teacher in the schools included under this |
5 | | System or under Article 17,
except (i) as provided in Section |
6 | | 16-118 or 16-150.1, (ii) if
the member is disabled (in which |
7 | | event, eligibility for salary must cease),
or (iii) if the |
8 | | System is required by federal law to commence
payment due to |
9 | | the member's age; the changes to this sentence made by Public |
10 | | Act 93-320 this
amendatory Act of the 93rd General Assembly |
11 | | apply without
regard to whether the member terminated |
12 | | employment before or after its
effective date.
|
13 | | (Source: P.A. 93-320, eff. 7-23-03.)
|
14 | | (40 ILCS 5/16-133) (from Ch. 108 1/2, par. 16-133)
|
15 | | Sec. 16-133. Retirement annuity; amount.
|
16 | | (a) The amount of the retirement annuity shall be (i) in |
17 | | the case of a person who first became a teacher under this |
18 | | Article before July 1, 2005, the larger of the
amounts |
19 | | determined under paragraphs (A) and (B) below, or (ii) in the |
20 | | case of a person who first becomes a teacher under this Article |
21 | | on or after July 1, 2005, the amount determined under the |
22 | | applicable provisions of paragraph (B):
|
23 | | (A) An amount consisting of the sum of the following:
|
24 | | (1) An amount that can be provided on an |
25 | | actuarially equivalent basis
by the member's |
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1 | | accumulated contributions at the time of retirement; |
2 | | and
|
3 | | (2) The sum of (i) the amount that can be provided |
4 | | on an actuarially
equivalent basis by the member's |
5 | | accumulated contributions representing
service prior |
6 | | to July 1, 1947, and (ii) the amount that can be |
7 | | provided on
an actuarially equivalent basis by the |
8 | | amount obtained by multiplying 1.4
times the member's |
9 | | accumulated contributions covering service subsequent |
10 | | to
June 30, 1947; and
|
11 | | (3) If there is prior service, 2 times the amount |
12 | | that would have been
determined under subparagraph (2) |
13 | | of paragraph (A) above on account of
contributions |
14 | | which would have been made during the period of prior |
15 | | service
creditable to the member had the System been in |
16 | | operation and had the
member made contributions at the |
17 | | contribution rate in effect prior to
July 1, 1947.
|
18 | | For the purpose of calculating the sum provided under |
19 | | this paragraph (A), the contribution required under |
20 | | subsection (a-5) of Section 16-152 shall not be considered |
21 | | when determining the amount of the member's accumulated |
22 | | contributions under subparagraph (1) or (2). |
23 | | This paragraph (A) does not apply to a person who first |
24 | | becomes a teacher under this Article on or after July 1, |
25 | | 2005.
|
26 | | (B) An amount consisting of the greater of the |
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1 | | following:
|
2 | | (1) For creditable service earned before July 1, |
3 | | 1998 that has not
been augmented under Section |
4 | | 16-129.1: 1.67% of final average salary for
each of the |
5 | | first 10 years of creditable service, 1.90% of final |
6 | | average salary
for each year in excess of 10 but not |
7 | | exceeding 20, 2.10% of final average
salary for each |
8 | | year in excess of 20 but not exceeding 30, and 2.30% of |
9 | | final
average salary for each year in excess of 30; and
|
10 | | For creditable service earned on or after July 1, |
11 | | 1998 by a member who
has at least 24 years of |
12 | | creditable service on July 1, 1998 and who
does not |
13 | | elect to augment service under Section 16-129.1: 2.2% |
14 | | of final
average salary for each year of creditable |
15 | | service earned on or after July 1,
1998 but before the |
16 | | member reaches a total of 30 years of creditable |
17 | | service
and 2.3% of final average salary for each year |
18 | | of creditable service earned
on or after July 1, 1998 |
19 | | and after the member reaches a total of 30 years of
|
20 | | creditable service; and
|
21 | | For all other creditable service: 2.2% of final |
22 | | average salary
for each year of creditable service; or
|
23 | | (2) 1.5% of final average salary for each year of
|
24 | | creditable service plus the sum $7.50 for each of the |
25 | | first 20 years of
creditable service.
|
26 | | The amount of the retirement annuity determined under this |
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1 | | paragraph (B)
shall be reduced by 1/2 of 1% for each month |
2 | | that the member is less than
age 60 at the time the |
3 | | retirement annuity begins. However, this reduction
shall |
4 | | not apply (i) if the member has at least 35 years of |
5 | | creditable service,
or (ii) if the member retires on |
6 | | account of disability under Section 16-149.2
of this |
7 | | Article with at least 20 years of creditable service, or |
8 | | (iii) if
the member (1) has earned during the period |
9 | | immediately preceding the last
day of service at least one |
10 | | year of contributing creditable service as an
employee of a |
11 | | department as defined in Section 14-103.04, (2) has earned |
12 | | at
least 5 years of contributing creditable service as an |
13 | | employee of a department
as defined in Section 14-103.04, |
14 | | (3) retires on or after January 1, 2001, and
(4) retires |
15 | | having attained an age which, when added to the number of |
16 | | years of
his or her total creditable service, equals at |
17 | | least 85. Portions of years
shall be counted as decimal |
18 | | equivalents. For participants to whom subsection (b) of |
19 | | Section 16-132 applies, the reference to age 60 in this |
20 | | paragraph and the reference to 85 in this paragraph are |
21 | | increased as provided in subsection (b) of Section 16-132.
|
22 | | (b) For purposes of this Section, final average salary |
23 | | shall be the
average salary for the highest 4 consecutive years |
24 | | within the last 10 years
of creditable service as determined |
25 | | under rules of the board. The minimum
final average salary |
26 | | shall be considered to be $2,400 per year.
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1 | | In the determination of final average salary for members |
2 | | other than
elected officials and their appointees when such |
3 | | appointees are allowed by
statute, that part of a member's |
4 | | salary for any year beginning after June
30, 1979 which exceeds |
5 | | the member's annual full-time salary rate with the
same |
6 | | employer for the preceding year by more than 20% shall be |
7 | | excluded.
The exclusion shall not apply in any year in which |
8 | | the member's creditable
earnings are less than 50% of the |
9 | | preceding year's mean salary for downstate
teachers as |
10 | | determined by the survey of school district salaries provided |
11 | | in
Section 2-3.103 of the School Code.
|
12 | | (c) In determining the amount of the retirement annuity |
13 | | under paragraph
(B) of this Section, a fractional year shall be |
14 | | granted proportional credit.
|
15 | | (d) The retirement annuity determined under paragraph (B) |
16 | | of this Section
shall be available only to members who render |
17 | | teaching service after July
1, 1947 for which member |
18 | | contributions are required, and to annuitants who
re-enter |
19 | | under the provisions of Section 16-150.
|
20 | | (e) The maximum retirement annuity provided under |
21 | | paragraph (B) of this
Section shall be 75% of final average |
22 | | salary.
|
23 | | (f) A member retiring after the effective date of this |
24 | | amendatory Act
of 1998 shall receive a pension equal to 75% of |
25 | | final average salary if the
member is qualified to receive a |
26 | | retirement annuity equal to at least 74.6%
of final average |
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1 | | salary under this Article or as proportional annuities under
|
2 | | Article 20 of this Code.
|
3 | | (Source: P.A. 94-4, eff. 6-1-05.)
|
4 | | (40 ILCS 5/16-133.1) (from Ch. 108 1/2, par. 16-133.1)
|
5 | | Sec. 16-133.1. Automatic annual increase in annuity.
|
6 | | (a) Each member with creditable service and retiring on or |
7 | | after August 26,
1969 is entitled to the automatic annual |
8 | | increases in annuity provided under
this Section while |
9 | | receiving a retirement annuity or disability retirement
|
10 | | annuity from the system.
|
11 | | An annuitant shall first be entitled to an initial increase |
12 | | under this
Section on the January 1 next following the first |
13 | | anniversary of retirement,
or January 1 of the year next |
14 | | following attainment of age 61, whichever is
later. At such |
15 | | time, the system shall pay an initial increase determined as
|
16 | | follows or as provided in subsections (a-1) and (a-2) :
|
17 | | (1) 1.5% of the originally granted retirement annuity |
18 | | or disability
retirement annuity multiplied by the number |
19 | | of years elapsed, if any, from the date of retirement
until |
20 | | January 1, 1972, plus
|
21 | | (2) 2% of the originally granted annuity multiplied by |
22 | | the number of
years elapsed, if any, from the date of |
23 | | retirement or January
1, 1972, whichever is later, until |
24 | | January 1, 1978, plus
|
25 | | (3) 3% of the originally granted annuity multiplied by |
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1 | | the number
of years elapsed from the date of retirement or |
2 | | January 1,
1978, whichever is later, until the effective |
3 | | date of the initial
increase.
|
4 | | However, the initial annual increase calculated under this |
5 | | Section for the
recipient of a disability retirement annuity |
6 | | granted under Section 16-149.2
shall be reduced by an amount |
7 | | equal to the total of all increases in that
annuity received |
8 | | under Section 16-149.5 (but not exceeding 100% of the amount
of |
9 | | the initial increase otherwise provided under this Section).
|
10 | | Following the initial increase, automatic annual increases |
11 | | in annuity shall
be payable on each January 1 thereafter during |
12 | | the lifetime of the annuitant,
determined as a percentage of |
13 | | the originally granted retirement annuity
or disability |
14 | | retirement annuity for increases granted prior to January
1, |
15 | | 1990, and calculated as a percentage of the total amount of |
16 | | annuity,
including previous increases under this Section, for |
17 | | increases granted on
or after January 1, 1990, as follows: 1.5% |
18 | | for periods prior to January 1,
1972, 2% for periods after |
19 | | December 31, 1971 and prior to January 1, 1978,
and 3% for |
20 | | periods after December 31, 1977 , or as provided in subsections |
21 | | (a-1) and (a-2) .
|
22 | | (a-1) Notwithstanding any other provision of this Article, |
23 | | for a Tier I retiree, the amount of each automatic annual |
24 | | increase in retirement annuity occurring on or after the |
25 | | effective date of this amendatory Act of the 97th General |
26 | | Assembly shall be the lesser of $750 or 3% of the total annuity
|
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1 | | payable at the time of the increase, including previous |
2 | | increases granted. |
3 | | (a-2) Notwithstanding any other provision of this Article, |
4 | | for a Tier I retiree, the monthly retirement annuity shall |
5 | | first be subject to annual increases on the January 1 occurring |
6 | | on or next after the attainment of age 67 or the January 1 |
7 | | occurring on or next after the fifth anniversary of the annuity |
8 | | start date, whichever occurs earlier. If on the effective date |
9 | | of this amendatory Act of the 97th General Assembly a Tier I |
10 | | retiree has already received an annual increase under this |
11 | | Section but does not yet meet the new eligibility requirements |
12 | | of this subsection, the annual increases already received shall |
13 | | continue in force, but no additional annual increase shall be |
14 | | granted until the Tier I retiree meets the new eligibility |
15 | | requirements. |
16 | | (a-3) Notwithstanding Section 1-103.1, subsections (a-1) |
17 | | and (a-2) apply without regard to whether or not the Tier I |
18 | | retiree is in active service under this Article on or after the |
19 | | effective date of this amendatory Act of the 97th General |
20 | | Assembly. |
21 | | (b) The automatic annual increases in annuity provided |
22 | | under this Section
shall not be applicable unless a member has |
23 | | made contributions toward such
increases for a period |
24 | | equivalent to one full year of creditable service.
If a member |
25 | | contributes for service performed after August 26, 1969 but
the |
26 | | member becomes an annuitant before such contributions amount to |
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1 | | one
full year's contributions based on the salary at the date |
2 | | of retirement,
he or she may pay the necessary balance of the |
3 | | contributions to the system
and be eligible for the automatic |
4 | | annual increases in annuity provided under
this Section.
|
5 | | (c) Each member shall make contributions toward the cost of |
6 | | the automatic
annual increases in annuity as provided under |
7 | | Section 16-152.
|
8 | | (d) An annuitant receiving a retirement annuity or |
9 | | disability retirement
annuity on July 1, 1969, who subsequently |
10 | | re-enters service as a teacher
is eligible for the automatic |
11 | | annual increases in annuity provided under
this Section if he |
12 | | or she renders at least one year of creditable service
|
13 | | following the latest re-entry.
|
14 | | (e) In addition to the automatic annual increases in |
15 | | annuity provided
under this Section, an annuitant who meets the |
16 | | service requirements of this
Section and whose retirement |
17 | | annuity or disability retirement annuity began
on or before |
18 | | January 1, 1971 shall receive, on January 1, 1981, an increase
|
19 | | in the annuity then being paid of one dollar per month for each |
20 | | year of
creditable service. On January 1, 1982, an annuitant |
21 | | whose retirement
annuity or disability retirement annuity |
22 | | began on or before January 1, 1977
shall receive an increase in |
23 | | the annuity then being paid of one dollar per
month for each |
24 | | year of creditable service.
|
25 | | On January 1, 1987, any annuitant whose retirement annuity |
26 | | began
on or before January 1, 1977, shall receive an increase |
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1 | | in the monthly
retirement annuity equal to 8¢ per year of |
2 | | creditable service times the
number of years that have elapsed |
3 | | since the annuity began.
|
4 | | (Source: P.A. 91-927, eff. 12-14-00.)
|
5 | | (40 ILCS 5/16-152) (from Ch. 108 1/2, par. 16-152)
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6 | | Sec. 16-152. Contributions by members.
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7 | | (a) Each member shall make contributions for membership |
8 | | service to this
System as follows:
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9 | | (1) Effective July 1, 1998, contributions of 7.50% of |
10 | | salary towards the
cost of the retirement annuity. Such |
11 | | contributions shall be deemed "normal
contributions".
|
12 | | (2) Effective July 1, 1969, contributions of 1/2 of 1% |
13 | | of salary toward
the cost of the automatic annual increase |
14 | | in retirement annuity provided
under Section 16-133.1.
|
15 | | (3) Effective July 24, 1959, contributions of 1% of |
16 | | salary towards the
cost of survivor benefits. Such |
17 | | contributions shall not be credited to
the individual |
18 | | account of the member and shall not be subject to refund
|
19 | | except as provided under Section 16-143.2.
|
20 | | (4) Effective July 1, 2005, contributions of 0.40% of |
21 | | salary toward the cost of the early retirement without |
22 | | discount option provided under Section 16-133.2. This |
23 | | contribution shall cease upon termination of the early |
24 | | retirement without discount option as provided in Section |
25 | | 16-176.
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1 | | (a-5) In addition to the contributions otherwise required |
2 | | under this Article, each Tier I member shall also make the |
3 | | following contributions toward the cost of the retirement |
4 | | annuity from each payment
of salary: |
5 | | (1) beginning July 1, 2013 and through June 30, 2014, |
6 | | 1% of salary; and |
7 | | (2) beginning on July 1, 2014, 2% of salary. |
8 | | Except as otherwise specified, these contributions are to |
9 | | be considered as normal contributions for purposes
of this |
10 | | Article. |
11 | | (b) The minimum required contribution for any year of |
12 | | full-time
teaching service shall be $192.
|
13 | | (c) Contributions shall not be required of any annuitant |
14 | | receiving
a retirement annuity who is given employment as |
15 | | permitted under Section 16-118 or 16-150.1.
|
16 | | (d) A person who (i) was a member before July 1, 1998, (ii) |
17 | | retires with
more than 34 years of creditable service, and |
18 | | (iii) does not elect to qualify
for the augmented rate under |
19 | | Section 16-129.1 shall be entitled, at the time
of retirement, |
20 | | to receive a partial refund of contributions made under this
|
21 | | Section for service occurring after the later of June 30, 1998 |
22 | | or attainment
of 34 years of creditable service, in an amount |
23 | | equal to 1.00% of the salary
upon which those contributions |
24 | | were based.
|
25 | | (e) A member's contributions toward the cost of early |
26 | | retirement without discount made under item (a)(4) of this |
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1 | | Section shall not be refunded if the member has elected early |
2 | | retirement without discount under Section 16-133.2 and has |
3 | | begun to receive a retirement annuity under this Article |
4 | | calculated in accordance with that election. Otherwise, a |
5 | | member's contributions toward the cost of early retirement |
6 | | without discount made under item (a)(4) of this Section shall |
7 | | be refunded according to whichever one of the following |
8 | | circumstances occurs first: |
9 | | (1) The contributions shall be refunded to the member, |
10 | | without interest, within 120 days after the member's |
11 | | retirement annuity commences, if the member does not elect |
12 | | early retirement without discount under Section 16-133.2. |
13 | | (2) The contributions shall be included, without |
14 | | interest, in any refund claimed by the member under Section |
15 | | 16-151. |
16 | | (3) The contributions shall be refunded to the member's |
17 | | designated beneficiary (or if there is no beneficiary, to |
18 | | the member's estate), without interest, if the member dies |
19 | | without having begun to receive a retirement annuity under |
20 | | this Article. |
21 | | (4) The contributions shall be refunded to the member, |
22 | | without interest, within 120 days after the early |
23 | | retirement without discount option provided under Section |
24 | | 16-133.2 is terminated under Section 16-176.
|
25 | | (Source: P.A. 93-320, eff. 7-23-03; 94-4, eff. 6-1-05.)
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1 | | (40 ILCS 5/16-158)
(from Ch. 108 1/2, par. 16-158)
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2 | | Sec. 16-158. Contributions by State and other employing |
3 | | units ; funding guarantee .
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4 | | (a) The State shall make contributions to the System by |
5 | | means of
appropriations from the Common School Fund and other |
6 | | State funds of amounts
which, together with other employer |
7 | | contributions, employee contributions,
investment income, and |
8 | | other income, will be sufficient to meet the cost of
|
9 | | maintaining and administering the System on a 100% 90% funded |
10 | | basis in accordance
with actuarial recommendations by the end |
11 | | of State fiscal year 2043 .
|
12 | | Beginning with State fiscal year 2014, the State's required |
13 | | contributions to the System under subsection (b-3) shall be |
14 | | limited to the amounts required to amortize the total cost of |
15 | | the benefits of the System arising before July 1, 2013. The |
16 | | State shall also pay any employer contributions required from |
17 | | the State as the actual employer of participants under this |
18 | | Article and any contribution required under subsection (b-20). |
19 | | The Board shall determine the amount of State and employer |
20 | | contributions required for
each fiscal year on the basis of the |
21 | | actuarial tables and other assumptions
adopted by the Board and |
22 | | the recommendations of the actuary, using the formulas provided |
23 | | in this Section formula
in subsection (b-3) .
|
24 | | (a-1) Annually, on or before November 15 through until |
25 | | November 15, 2011, the Board shall certify to the
Governor the |
26 | | amount of the required State contribution for the coming fiscal
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1 | | year. The certification under this subsection (a-1) shall |
2 | | include a copy of the actuarial recommendations
upon which it |
3 | | is based and shall specifically identify the System's projected |
4 | | State normal cost for that fiscal year .
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5 | | On or before May 1, 2004, the Board shall recalculate and |
6 | | recertify to
the Governor the amount of the required State |
7 | | contribution to the System for
State fiscal year 2005, taking |
8 | | into account the amounts appropriated to and
received by the |
9 | | System under subsection (d) of Section 7.2 of the General
|
10 | | Obligation Bond Act.
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11 | | On or before July 1, 2005, the Board shall recalculate and |
12 | | recertify
to the Governor the amount of the required State
|
13 | | contribution to the System for State fiscal year 2006, taking |
14 | | into account the changes in required State contributions made |
15 | | by this amendatory Act of the 94th General Assembly.
|
16 | | On or before April 1, 2011, the Board shall recalculate and |
17 | | recertify to the Governor the amount of the required State |
18 | | contribution to the System for State fiscal year 2011, applying |
19 | | the changes made by Public Act 96-889 to the System's assets |
20 | | and liabilities as of June 30, 2009 as though Public Act 96-889 |
21 | | was approved on that date. |
22 | | On or before July 1, 2013, the Board shall, if necessary, |
23 | | recalculate and recertify
to the Governor the amount of the |
24 | | required State
contribution to the System for State fiscal year |
25 | | 2014, taking into account the changes in required State |
26 | | contributions made by this amendatory Act of the 97th General |
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1 | | Assembly. |
2 | | (a-5) On or before November 1 of each year, beginning |
3 | | November 1, 2012, the Board shall submit to the State Actuary, |
4 | | the Governor, and the General Assembly a proposed certification |
5 | | of the amount of the required State contribution to the System |
6 | | for the next fiscal year, along with all of the actuarial |
7 | | assumptions, calculations, and data upon which that proposed |
8 | | certification is based. On or before January 1 of each year, |
9 | | beginning January 1, 2013, the State Actuary shall issue a |
10 | | preliminary report concerning the proposed certification and |
11 | | identifying, if necessary, recommended changes in actuarial |
12 | | assumptions that the Board must consider before finalizing its |
13 | | certification of the required State contributions. |
14 | | On or before January 15, 2013 and each January 15 |
15 | | thereafter, the Board shall certify to the Governor and the |
16 | | General Assembly the amount of the required State contribution |
17 | | for the next fiscal year. The certification shall include a |
18 | | copy of the actuarial
recommendations upon which it is based |
19 | | and shall specifically identify the System's projected State |
20 | | normal cost for that fiscal year. The Board's certification |
21 | | must note any deviations from the State Actuary's recommended |
22 | | changes, the reason or reasons for not following the State |
23 | | Actuary's recommended changes, and the fiscal impact of not |
24 | | following the State Actuary's recommended changes on the |
25 | | required State contribution. |
26 | | (b) Through State fiscal year 1995, the State contributions |
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1 | | shall be
paid to the System in accordance with Section 18-7 of |
2 | | the School Code.
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3 | | (b-1) Beginning in State fiscal year 1996, on the 15th day |
4 | | of each month,
or as soon thereafter as may be practicable, the |
5 | | Board shall submit vouchers
for payment of State contributions |
6 | | to the System, in a total monthly amount of
one-twelfth of the |
7 | | required annual State contribution certified under
subsection |
8 | | (a-1).
From the
effective date of this amendatory Act of the |
9 | | 93rd General Assembly
through June 30, 2004, the Board shall |
10 | | not submit vouchers for the
remainder of fiscal year 2004 in |
11 | | excess of the fiscal year 2004
certified contribution amount |
12 | | determined under this Section
after taking into consideration |
13 | | the transfer to the System
under subsection (a) of Section |
14 | | 6z-61 of the State Finance Act.
These vouchers shall be paid by |
15 | | the State Comptroller and
Treasurer by warrants drawn on the |
16 | | funds appropriated to the System for that
fiscal year.
|
17 | | If in any month the amount remaining unexpended from all |
18 | | other appropriations
to the System for the applicable fiscal |
19 | | year (including the appropriations to
the System under Section |
20 | | 8.12 of the State Finance Act and Section 1 of the
State |
21 | | Pension Funds Continuing Appropriation Act) is less than the |
22 | | amount
lawfully vouchered under this subsection, the |
23 | | difference shall be paid from the
Common School Fund under the |
24 | | continuing appropriation authority provided in
Section 1.1 of |
25 | | the State Pension Funds Continuing Appropriation Act.
|
26 | | (b-2) Allocations from the Common School Fund apportioned |
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1 | | to school
districts not coming under this System shall not be |
2 | | diminished or affected by
the provisions of this Article.
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3 | | (b-3) For State fiscal years 2014 through 2043, the minimum |
4 | | contribution to the System to be made by the State under this |
5 | | subsection (b-3) for each fiscal year shall be an amount |
6 | | determined by the Board to be sufficient to amortize the |
7 | | unfunded accrued liability that is attributable to benefits |
8 | | that accrued before July 1, 2013 as a level percentage of |
9 | | payroll over the years remaining to and including fiscal year |
10 | | 2043, determined under the projected unit credit actuarial cost |
11 | | method. |
12 | | For State fiscal year 2044 and thereafter, the minimum |
13 | | contribution to the System to be made by the State under this |
14 | | subsection (b-3) for each fiscal year shall be an amount |
15 | | determined by the Board to be sufficient to amortize, over a |
16 | | 30-year rolling amortization period, any unfunded liability |
17 | | arising on or after July 1, 2043 that is attributable to |
18 | | benefits that accrued before July 1, 2013. |
19 | | For State fiscal years 2012 and 2013 through 2045 , the |
20 | | minimum contribution
to the System to be made by the State for |
21 | | each fiscal year shall be an amount
determined by the System to |
22 | | be sufficient to bring the total assets of the
System up to 90% |
23 | | of the total actuarial liabilities of the System by the end of
|
24 | | State fiscal year 2045. In making these determinations, the |
25 | | required State
contribution shall be calculated each year as a |
26 | | level percentage of payroll
over the years remaining to and |
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1 | | including fiscal year 2045 and shall be
determined under the |
2 | | projected unit credit actuarial cost method.
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3 | | For State fiscal years 1996 through 2005, the State |
4 | | contribution to the
System, as a percentage of the applicable |
5 | | employee payroll, shall be increased
in equal annual increments |
6 | | so that by State fiscal year 2011, the State is
contributing at |
7 | | the rate required under this Section; except that in the
|
8 | | following specified State fiscal years, the State contribution |
9 | | to the System
shall not be less than the following indicated |
10 | | percentages of the applicable
employee payroll, even if the |
11 | | indicated percentage will produce a State
contribution in |
12 | | excess of the amount otherwise required under this subsection
|
13 | | and subsection (a), and notwithstanding any contrary |
14 | | certification made under
subsection (a-1) before the effective |
15 | | date of this amendatory Act of 1998:
10.02% in FY 1999;
10.77% |
16 | | in FY 2000;
11.47% in FY 2001;
12.16% in FY 2002;
12.86% in FY |
17 | | 2003; and
13.56% in FY 2004.
|
18 | | Notwithstanding any other provision of this Article, the |
19 | | total required State
contribution for State fiscal year 2006 is |
20 | | $534,627,700.
|
21 | | Notwithstanding any other provision of this Article, the |
22 | | total required State
contribution for State fiscal year 2007 is |
23 | | $738,014,500.
|
24 | | For each of State fiscal years 2008 through 2009, the State |
25 | | contribution to
the System, as a percentage of the applicable |
26 | | employee payroll, shall be
increased in equal annual increments |
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1 | | from the required State contribution for State fiscal year |
2 | | 2007, so that by State fiscal year 2011, the
State is |
3 | | contributing at the rate otherwise required under this Section.
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4 | | Notwithstanding any other provision of this Article, the |
5 | | total required State contribution for State fiscal year 2010 is |
6 | | $2,089,268,000 and shall be made from the proceeds of bonds |
7 | | sold in fiscal year 2010 pursuant to Section 7.2 of the General |
8 | | Obligation Bond Act, less (i) the pro rata share of bond sale |
9 | | expenses determined by the System's share of total bond |
10 | | proceeds, (ii) any amounts received from the Common School Fund |
11 | | in fiscal year 2010, and (iii) any reduction in bond proceeds |
12 | | due to the issuance of discounted bonds, if applicable. |
13 | | Notwithstanding any other provision of this Article, the
|
14 | | total required State contribution for State fiscal year 2011 is
|
15 | | the amount recertified by the System on or before April 1, 2011 |
16 | | pursuant to subsection (a-1) of this Section and shall be made |
17 | | from the proceeds of bonds
sold in fiscal year 2011 pursuant to |
18 | | Section 7.2 of the General
Obligation Bond Act, less (i) the |
19 | | pro rata share of bond sale
expenses determined by the System's |
20 | | share of total bond
proceeds, (ii) any amounts received from |
21 | | the Common School Fund
in fiscal year 2011, and (iii) any |
22 | | reduction in bond proceeds
due to the issuance of discounted |
23 | | bonds, if applicable. This amount shall include, in addition to |
24 | | the amount certified by the System, an amount necessary to meet |
25 | | employer contributions required by the State as an employer |
26 | | under paragraph (e) of this Section, which may also be used by |
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1 | | the System for contributions required by paragraph (a) of |
2 | | Section 16-127. |
3 | | Beginning in State fiscal year 2046, the minimum State |
4 | | contribution for
each fiscal year shall be the amount needed to |
5 | | maintain the total assets of
the System at 90% of the total |
6 | | actuarial liabilities of the System.
|
7 | | Amounts received by the System pursuant to Section 25 of |
8 | | the Budget Stabilization Act or Section 8.12 of the State |
9 | | Finance Act in any fiscal year do not reduce and do not |
10 | | constitute payment of any portion of the minimum State |
11 | | contribution required under this Article in that fiscal year. |
12 | | Such amounts shall not reduce, and shall not be included in the |
13 | | calculation of, the required State contributions under this |
14 | | Article in any future year until the System has reached a |
15 | | funding ratio of at least 100% 90% . A reference in this Article |
16 | | to the "required State contribution" or any substantially |
17 | | similar term does not include or apply to any amounts payable |
18 | | to the System under Section 25 of the Budget Stabilization Act. |
19 | | Notwithstanding any other provision of this Section, the |
20 | | required State
contribution for State fiscal year 2005 and for |
21 | | fiscal year 2008 and each fiscal year thereafter through State |
22 | | fiscal year 2013 , as
calculated under this Section and
|
23 | | certified under subsection (a-1), shall not exceed an amount |
24 | | equal to (i) the
amount of the required State contribution that |
25 | | would have been calculated under
this Section for that fiscal |
26 | | year if the System had not received any payments
under |
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1 | | subsection (d) of Section 7.2 of the General Obligation Bond |
2 | | Act, minus
(ii) the portion of the State's total debt service |
3 | | payments for that fiscal
year on the bonds issued in fiscal |
4 | | year 2003 for the purposes of that Section 7.2, as determined
|
5 | | and certified by the Comptroller, that is the same as the |
6 | | System's portion of
the total moneys distributed under |
7 | | subsection (d) of Section 7.2 of the General
Obligation Bond |
8 | | Act. In determining this maximum for State fiscal years 2008 |
9 | | through 2010, however, the amount referred to in item (i) shall |
10 | | be increased, as a percentage of the applicable employee |
11 | | payroll, in equal increments calculated from the sum of the |
12 | | required State contribution for State fiscal year 2007 plus the |
13 | | applicable portion of the State's total debt service payments |
14 | | for fiscal year 2007 on the bonds issued in fiscal year 2003 |
15 | | for the purposes of Section 7.2 of the General
Obligation Bond |
16 | | Act, so that, by State fiscal year 2011, the
State is |
17 | | contributing at the rate otherwise required under this Section.
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18 | | (b-10) Subject to the limitations provided in subsection |
19 | | (b-15), beginning with State fiscal year 2014, the minimum |
20 | | required contribution of each employer under this Article shall |
21 | | be sufficient to produce an annual amount equal to: |
22 | | (i) the employer's normal cost for that fiscal year, |
23 | | exclusive of the employer's normal cost that arises from |
24 | | optional employer contributions agreed to by that employer |
25 | | for that fiscal year under Section 1-161; plus |
26 | | (ii) the employer's normal cost for that fiscal year |
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1 | | that arises from optional employer contributions agreed to |
2 | | by that employer for that fiscal year under Section 1-161; |
3 | | plus |
4 | | (iii) the amount required for that fiscal year to |
5 | | amortize that employer's portion of the unfunded accrued |
6 | | liability associated with the cost of benefits accrued on |
7 | | or after July 1, 2013 as a level percentage of payroll over |
8 | | a 30-year rolling amortization period, as determined for |
9 | | each employer by the Board. |
10 | | Each employer under this Article shall make these |
11 | | contributions in the amounts determined and the manner |
12 | | prescribed from time to time by the Board. |
13 | | (b-15) The System shall determine the employer's normal |
14 | | cost under item (i) of subsection (b-10) as a percentage of |
15 | | projected payroll applicable to all employers, based on |
16 | | actuarial assumptions applicable to the System as a whole. The |
17 | | required employer contribution under item (i) in a fiscal year |
18 | | shall not exceed a percentage of payroll determined by |
19 | | subtracting 2013 from the applicable fiscal year and |
20 | | multiplying the result by 0.5%. |
21 | | The System shall determine the employer's normal cost under |
22 | | item (ii) of subsection (b-10) as an additional percentage of |
23 | | projected payroll payable by a specific employer, based on the |
24 | | optional employer contributions agreed to by that employer for |
25 | | that fiscal year under Section 1-161 and the actuarial |
26 | | assumptions applicable to the System as a whole. |
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1 | | The System shall determine the employer's portion of the |
2 | | unfunded accrued liability under item (iii) of subsection |
3 | | (b-10) separately for each employer, as a percentage of that |
4 | | employer's projected payroll, based on the liabilities |
5 | | attributable to that employer and the actuarial assumptions |
6 | | applicable to the System as a whole. |
7 | | For use in determining the employer's contribution for |
8 | | unfunded accrued liability under item (iii), the System shall |
9 | | maintain a separate account for each employer. The separate |
10 | | account shall be maintained in such form and detail as the |
11 | | System determines to be appropriate. The separate account shall |
12 | | reflect the following items to the extent that they are |
13 | | attributable to that employer and arise on or after July 1, |
14 | | 2013: employer contributions, State contributions under |
15 | | subsection (b-20), employee contributions, investment returns, |
16 | | payments of benefits, and that employer's proportionate share |
17 | | of the System's administrative expenses. |
18 | | In the event that the Board determines that there is a |
19 | | deficiency or surplus in the account of an employer with |
20 | | respect to the projected liabilities attributable to that |
21 | | employer arising on or after July 1, 2013, the Board shall |
22 | | determine the employer's contribution rate under item (iii) of |
23 | | subsection (b-10) so as to address that deficiency or surplus |
24 | | over a reasonable period of time as determined by the Board. |
25 | | (b-20) Beginning in State fiscal year 2014, for any fiscal |
26 | | year in which (1) the System's normal cost for all employers |
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1 | | for that fiscal year, exclusive of the normal cost that arises |
2 | | from optional employer contributions agreed to by employers for |
3 | | that fiscal year under Section 1-161, exceeds (2) the total |
4 | | contribution calculated under item (i) of subsection (b-10) for |
5 | | all employers for that fiscal year, the State shall make an |
6 | | additional contribution to the System for that fiscal year |
7 | | equal to the difference. |
8 | | The State contribution under this subsection (b-20) is in |
9 | | addition to the State contributions required under subsection |
10 | | (b-1) and any contributions required to be paid by the State as |
11 | | an employer under subsection (b-10) of this Section. |
12 | | (c) Payment of the required State contributions and of all |
13 | | pensions,
retirement annuities, death benefits, refunds, and |
14 | | other benefits granted
under or assumed by this System, and all |
15 | | expenses in connection with the
administration and operation |
16 | | thereof, are obligations of the State.
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17 | | If members are paid from special trust or federal funds |
18 | | which are
administered by the employing unit, whether school |
19 | | district or other
unit, the employing unit shall pay to the |
20 | | System from such
funds the full accruing retirement costs based |
21 | | upon that
service, as determined by the System. Employer |
22 | | contributions, based on
salary paid to members from federal |
23 | | funds, may be forwarded by the distributing
agency of the State |
24 | | of Illinois to the System prior to allocation, in an
amount |
25 | | determined in accordance with guidelines established by such
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26 | | agency and the System.
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1 | | (d) Effective July 1, 1986, any employer of a teacher as |
2 | | defined in
paragraph (8) of Section 16-106 shall pay the |
3 | | employer's normal cost
of benefits based upon the teacher's |
4 | | service, in addition to
employee contributions, as determined |
5 | | by the System. Such employer
contributions shall be forwarded |
6 | | monthly in accordance with guidelines
established by the |
7 | | System.
|
8 | | However, with respect to benefits granted under Section |
9 | | 16-133.4 or
16-133.5 to a teacher as defined in paragraph (8) |
10 | | of Section 16-106, the
employer's contribution shall be 12% |
11 | | (rather than 20%) of the member's
highest annual salary rate |
12 | | for each year of creditable service granted, and
the employer |
13 | | shall also pay the required employee contribution on behalf of
|
14 | | the teacher. For the purposes of Sections 16-133.4 and |
15 | | 16-133.5, a teacher
as defined in paragraph (8) of Section |
16 | | 16-106 who is serving in that capacity
while on leave of |
17 | | absence from another employer under this Article shall not
be |
18 | | considered an employee of the employer from which the teacher |
19 | | is on leave.
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20 | | (e) Beginning July 1, 1998, every employer of a teacher
|
21 | | shall pay to the System an employer contribution computed as |
22 | | follows:
|
23 | | (1) Beginning July 1, 1998 through June 30, 1999, the |
24 | | employer
contribution shall be equal to 0.3% of each |
25 | | teacher's salary.
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26 | | (2) Beginning July 1, 1999 and thereafter, the employer
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1 | | contribution shall be equal to 0.58% of each teacher's |
2 | | salary.
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3 | | The school district or other employing unit may pay these |
4 | | employer
contributions out of any source of funding available |
5 | | for that purpose and
shall forward the contributions to the |
6 | | System on the schedule established
for the payment of member |
7 | | contributions.
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8 | | These employer contributions are intended to offset a |
9 | | portion of the cost
to the System of the increases in |
10 | | retirement benefits resulting from this
amendatory Act of 1998.
|
11 | | Each employer of teachers is entitled to a credit against |
12 | | the contributions
required under this subsection (e) with |
13 | | respect to salaries paid to teachers
for the period January 1, |
14 | | 2002 through June 30, 2003, equal to the amount paid
by that |
15 | | employer under subsection (a-5) of Section 6.6 of the State |
16 | | Employees
Group Insurance Act of 1971 with respect to salaries |
17 | | paid to teachers for that
period.
|
18 | | The additional 1% employee contribution required under |
19 | | Section 16-152 by
this amendatory Act of 1998 is the |
20 | | responsibility of the teacher and not the
teacher's employer, |
21 | | unless the employer agrees, through collective bargaining
or |
22 | | otherwise, to make the contribution on behalf of the teacher.
|
23 | | If an employer is required by a contract in effect on May |
24 | | 1, 1998 between the
employer and an employee organization to |
25 | | pay, on behalf of all its full-time
employees
covered by this |
26 | | Article, all mandatory employee contributions required under
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1 | | this Article, then the employer shall be excused from paying |
2 | | the employer
contribution required under this subsection (e) |
3 | | for the balance of the term
of that contract. The employer and |
4 | | the employee organization shall jointly
certify to the System |
5 | | the existence of the contractual requirement, in such
form as |
6 | | the System may prescribe. This exclusion shall cease upon the
|
7 | | termination, extension, or renewal of the contract at any time |
8 | | after May 1,
1998.
|
9 | | (f) The employer contributions under this subsection (f) |
10 | | are no longer required after June 30, 2013. |
11 | | If the amount of a teacher's salary for any school year |
12 | | used to determine final average salary exceeds the member's |
13 | | annual full-time salary rate with the same employer for the |
14 | | previous school year by more than 6%, the teacher's employer |
15 | | shall pay to the System, in addition to all other payments |
16 | | required under this Section and in accordance with guidelines |
17 | | established by the System, the present value of the increase in |
18 | | benefits resulting from the portion of the increase in salary |
19 | | that is in excess of 6%. This present value shall be computed |
20 | | by the System on the basis of the actuarial assumptions and |
21 | | tables used in the most recent actuarial valuation of the |
22 | | System that is available at the time of the computation. If a |
23 | | teacher's salary for the 2005-2006 school year is used to |
24 | | determine final average salary under this subsection (f), then |
25 | | the changes made to this subsection (f) by Public Act 94-1057 |
26 | | shall apply in calculating whether the increase in his or her |
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1 | | salary is in excess of 6%. For the purposes of this Section, |
2 | | change in employment under Section 10-21.12 of the School Code |
3 | | on or after June 1, 2005 shall constitute a change in employer. |
4 | | The System may require the employer to provide any pertinent |
5 | | information or documentation.
The changes made to this |
6 | | subsection (f) by this amendatory Act of the 94th General |
7 | | Assembly apply without regard to whether the teacher was in |
8 | | service on or after its effective date.
|
9 | | Whenever it determines that a payment is or may be required |
10 | | under this subsection, the System shall calculate the amount of |
11 | | the payment and bill the employer for that amount. The bill |
12 | | shall specify the calculations used to determine the amount |
13 | | due. If the employer disputes the amount of the bill, it may, |
14 | | within 30 days after receipt of the bill, apply to the System |
15 | | in writing for a recalculation. The application must specify in |
16 | | detail the grounds of the dispute and, if the employer asserts |
17 | | that the calculation is subject to subsection (g) or (h) of |
18 | | this Section, must include an affidavit setting forth and |
19 | | attesting to all facts within the employer's knowledge that are |
20 | | pertinent to the applicability of that subsection. Upon |
21 | | receiving a timely application for recalculation, the System |
22 | | shall review the application and, if appropriate, recalculate |
23 | | the amount due.
|
24 | | The employer contributions required under this subsection |
25 | | (f) may be paid in the form of a lump sum within 90 days after |
26 | | receipt of the bill. If the employer contributions are not paid |
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1 | | within 90 days after receipt of the bill, then interest will be |
2 | | charged at a rate equal to the System's annual actuarially |
3 | | assumed rate of return on investment compounded annually from |
4 | | the 91st day after receipt of the bill. Payments must be |
5 | | concluded within 3 years after the employer's receipt of the |
6 | | bill.
|
7 | | (g) This subsection (g) applies only to payments made or |
8 | | salary increases given on or after June 1, 2005 but before July |
9 | | 1, 2011. The changes made by Public Act 94-1057 shall not |
10 | | require the System to refund any payments received before
July |
11 | | 31, 2006 (the effective date of Public Act 94-1057). |
12 | | When assessing payment for any amount due under subsection |
13 | | (f), the System shall exclude salary increases paid to teachers |
14 | | under contracts or collective bargaining agreements entered |
15 | | into, amended, or renewed before June 1, 2005.
|
16 | | When assessing payment for any amount due under subsection |
17 | | (f), the System shall exclude salary increases paid to a |
18 | | teacher at a time when the teacher is 10 or more years from |
19 | | retirement eligibility under Section 16-132 or 16-133.2.
|
20 | | When assessing payment for any amount due under subsection |
21 | | (f), the System shall exclude salary increases resulting from |
22 | | overload work, including summer school, when the school |
23 | | district has certified to the System, and the System has |
24 | | approved the certification, that (i) the overload work is for |
25 | | the sole purpose of classroom instruction in excess of the |
26 | | standard number of classes for a full-time teacher in a school |
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1 | | district during a school year and (ii) the salary increases are |
2 | | equal to or less than the rate of pay for classroom instruction |
3 | | computed on the teacher's current salary and work schedule.
|
4 | | When assessing payment for any amount due under subsection |
5 | | (f), the System shall exclude a salary increase resulting from |
6 | | a promotion (i) for which the employee is required to hold a |
7 | | certificate or supervisory endorsement issued by the State |
8 | | Teacher Certification Board that is a different certification |
9 | | or supervisory endorsement than is required for the teacher's |
10 | | previous position and (ii) to a position that has existed and |
11 | | been filled by a member for no less than one complete academic |
12 | | year and the salary increase from the promotion is an increase |
13 | | that results in an amount no greater than the lesser of the |
14 | | average salary paid for other similar positions in the district |
15 | | requiring the same certification or the amount stipulated in |
16 | | the collective bargaining agreement for a similar position |
17 | | requiring the same certification.
|
18 | | When assessing payment for any amount due under subsection |
19 | | (f), the System shall exclude any payment to the teacher from |
20 | | the State of Illinois or the State Board of Education over |
21 | | which the employer does not have discretion, notwithstanding |
22 | | that the payment is included in the computation of final |
23 | | average salary.
|
24 | | (h) When assessing payment for any amount due under |
25 | | subsection (f), the System shall exclude any salary increase |
26 | | described in subsection (g) of this Section given on or after |
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1 | | July 1, 2011 but before July 1, 2014 under a contract or |
2 | | collective bargaining agreement entered into, amended, or |
3 | | renewed on or after June 1, 2005 but before July 1, 2011. |
4 | | Notwithstanding any other provision of this Section, any |
5 | | payments made or salary increases given after June 30, 2014 |
6 | | shall be used in assessing payment for any amount due under |
7 | | subsection (f) of this Section.
|
8 | | (i) The System shall prepare a report and file copies of |
9 | | the report with the Governor and the General Assembly by |
10 | | January 1, 2007 that contains all of the following information: |
11 | | (1) The number of recalculations required by the |
12 | | changes made to this Section by Public Act 94-1057 for each |
13 | | employer. |
14 | | (2) The dollar amount by which each employer's |
15 | | contribution to the System was changed due to |
16 | | recalculations required by Public Act 94-1057. |
17 | | (3) The total amount the System received from each |
18 | | employer as a result of the changes made to this Section by |
19 | | Public Act 94-4. |
20 | | (4) The increase in the required State contribution |
21 | | resulting from the changes made to this Section by Public |
22 | | Act 94-1057.
|
23 | | (j) For purposes of determining the required State |
24 | | contribution to the System, the value of the System's assets |
25 | | shall be equal to the actuarial value of the System's assets, |
26 | | which shall be calculated as follows: |
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1 | | As of June 30, 2008, the actuarial value of the System's |
2 | | assets shall be equal to the market value of the assets as of |
3 | | that date. In determining the actuarial value of the System's |
4 | | assets for fiscal years after June 30, 2008, any actuarial |
5 | | gains or losses from investment return incurred in a fiscal |
6 | | year shall be recognized in equal annual amounts over the |
7 | | 5-year period following that fiscal year. |
8 | | (k) For purposes of determining the required State |
9 | | contribution to the system for a particular year, the actuarial |
10 | | value of assets shall be assumed to earn a rate of return equal |
11 | | to the system's actuarially assumed rate of return. |
12 | | (Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11; |
13 | | 96-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-694, eff. |
14 | | 6-18-12; 97-813, eff. 7-13-12.)
|
15 | | (40 ILCS 5/16-158.1) (from Ch. 108 1/2, par. 16-158.1)
|
16 | | Sec. 16-158.1. Actions to enforce payments by school |
17 | | districts and
other employing units other than the State . Any |
18 | | school district or other
employing unit , other than the State, |
19 | | that fails failing to transmit to the System contributions |
20 | | required of
it under this Article or contributions required of |
21 | | teachers, for more
than 90 days after such contributions are |
22 | | due is subject to the following:
after giving notice to the |
23 | | district or other unit, the System may certify
to the State |
24 | | Comptroller or the Regional Superintendent of Schools the
|
25 | | amounts of such delinquent payments and the State Comptroller |
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1 | | or the
Regional Superintendent of Schools shall deduct the |
2 | | amounts so certified
or any part thereof from any State funds |
3 | | to be remitted
to the school district or other employing unit |
4 | | involved and shall
pay the amount so deducted to the System. If |
5 | | State funds from which
such deductions may be made are not |
6 | | available, the System may proceed
against the school district |
7 | | or other employing unit to recover the
amounts of such |
8 | | delinquent payments in the appropriate circuit court.
|
9 | | The System may provide for an
audit of the records of a |
10 | | school district or other employing unit , other than the State, |
11 | | as
may be required to establish the amounts of required |
12 | | contributions.
The school district or other employing unit |
13 | | shall make its records
available to the System for the purpose |
14 | | of such audit. The cost of such
audit shall be added to the |
15 | | amount of the delinquent payments and shall
be recovered by the |
16 | | System from the school district or other employing
unit at the |
17 | | same time and in the same manner as the delinquent payments
are |
18 | | recovered.
|
19 | | (Source: P.A. 90-448, eff. 8-16-97.)
|
20 | | (40 ILCS 5/16-158.2 new) |
21 | | Sec. 16-158.2. Obligations of State; funding guarantee. |
22 | | (a) Payment of the required State contributions and of all |
23 | | pensions,
retirement annuities, death benefits, refunds, and |
24 | | other benefits granted
under or assumed by this System, and all |
25 | | expenses in connection with the
administration and operation |
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1 | | thereof, are obligations of the State. |
2 | | (b) Beginning July 1, 2013, the State shall be |
3 | | contractually obligated to contribute to the System under |
4 | | Section 16-158 in each State fiscal year an amount not less |
5 | | than the sum of (i) the State's required contribution under |
6 | | subsections (b-10) and (b-20) of Section 16-158 and
(ii) the |
7 | | portion of the total cost of the benefits of the System arising |
8 | | before July 1, 2013 assigned to that State fiscal year by law |
9 | | in accordance with a schedule that distributes payments |
10 | | equitably over a reasonable period of time and in accordance |
11 | | with accepted actuarial practices. The obligations created |
12 | | under this subsection (b) are contractual obligations |
13 | | protected and enforceable under Article I, Section 16 and |
14 | | Article XIII, Section 5 of the Illinois Constitution. |
15 | | Notwithstanding any other provision of law, if the State |
16 | | fails to pay in a State fiscal year the amount guaranteed under |
17 | | this subsection, the System may bring a mandamus action in the |
18 | | circuit court of Sangamon County to compel the State to make |
19 | | that payment, irrespective of other remedies that
may be |
20 | | available to the System. In ordering the State to make the |
21 | | required payment, the court may order a reasonable payment |
22 | | schedule to enable the State to make the required payment |
23 | | without significantly imperiling the public health, safety, or |
24 | | welfare. |
25 | | (40 ILCS 5/16-203)
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1 | | Sec. 16-203. Application and expiration of new benefit |
2 | | increases. |
3 | | (a) As used in this Section, "new benefit increase" means |
4 | | an increase in the amount of any benefit provided under this |
5 | | Article, or an expansion of the conditions of eligibility for |
6 | | any benefit under this Article, that results from an amendment |
7 | | to this Code that takes effect after June 1, 2005 (the |
8 | | effective date of Public Act 94-4). "New benefit increase", |
9 | | however, does not include any benefit increase resulting from |
10 | | the changes made to this Article or Article 1 by Public Act |
11 | | 95-910 or this amendatory Act of the 97th 95th General |
12 | | Assembly. |
13 | | (b) Notwithstanding any other provision of this Code or any |
14 | | subsequent amendment to this Code, every new benefit increase |
15 | | is subject to this Section and shall be deemed to be granted |
16 | | only in conformance with and contingent upon compliance with |
17 | | the provisions of this Section.
|
18 | | (c) The Public Act enacting a new benefit increase must |
19 | | identify and provide for payment to the System of additional |
20 | | funding at least sufficient to fund the resulting annual |
21 | | increase in cost to the System as it accrues. |
22 | | Every new benefit increase is contingent upon the General |
23 | | Assembly providing the additional funding required under this |
24 | | subsection. The Commission on Government Forecasting and |
25 | | Accountability shall analyze whether adequate additional |
26 | | funding has been provided for the new benefit increase and |
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1 | | shall report its analysis to the Public Pension Division of the |
2 | | Department of Financial and Professional Regulation. A new |
3 | | benefit increase created by a Public Act that does not include |
4 | | the additional funding required under this subsection is null |
5 | | and void. If the Public Pension Division determines that the |
6 | | additional funding provided for a new benefit increase under |
7 | | this subsection is or has become inadequate, it may so certify |
8 | | to the Governor and the State Comptroller and, in the absence |
9 | | of corrective action by the General Assembly, the new benefit |
10 | | increase shall expire at the end of the fiscal year in which |
11 | | the certification is made.
|
12 | | (d) Every new benefit increase shall expire 5 years after |
13 | | its effective date or on such earlier date as may be specified |
14 | | in the language enacting the new benefit increase or provided |
15 | | under subsection (c). This does not prevent the General |
16 | | Assembly from extending or re-creating a new benefit increase |
17 | | by law. |
18 | | (e) Except as otherwise provided in the language creating |
19 | | the new benefit increase, a new benefit increase that expires |
20 | | under this Section continues to apply to persons who applied |
21 | | and qualified for the affected benefit while the new benefit |
22 | | increase was in effect and to the affected beneficiaries and |
23 | | alternate payees of such persons, but does not apply to any |
24 | | other person, including without limitation a person who |
25 | | continues in service after the expiration date and did not |
26 | | apply and qualify for the affected benefit while the new |
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1 | | benefit increase was in effect.
|
2 | | (Source: P.A. 94-4, eff. 6-1-05; 95-910, eff. 8-26-08.)
|
3 | | (40 ILCS 5/20-121) (from Ch. 108 1/2, par. 20-121)
|
4 | | Sec. 20-121. Calculation of proportional retirement |
5 | | annuities. Upon
retirement of the employee, a proportional |
6 | | retirement annuity shall be computed
by each participating |
7 | | system in which pension credit has been established on
the |
8 | | basis of pension credits under each system. The computation |
9 | | shall be in
accordance with the formula or method prescribed by |
10 | | each participating system
which is in effect at the date of the |
11 | | employee's latest withdrawal from service
covered by any of the |
12 | | systems in which he has pension credits which he elects
to have |
13 | | considered under this Article. However, (1) the amount of any |
14 | | retirement
annuity payable under the self-managed plan |
15 | | established under Section 15-158.2
of this Code depends solely |
16 | | on the value of the participant's vested account
balances and |
17 | | is not subject to any proportional adjustment under this
|
18 | | Section , and (2) the amount of any retirement
annuity payable |
19 | | under the cash balance plan established under Section 1-161
of |
20 | | this Code shall be calculated solely in accordance with that |
21 | | Section and is not subject to any proportional adjustment under |
22 | | this
Section .
|
23 | | Combined pension credit under all retirement systems |
24 | | subject to this
Article shall be considered in determining |
25 | | whether the minimum qualification
has been met and the formula |
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1 | | or method of computation which shall be applied.
If a system |
2 | | has a step-rate formula for calculation of the retirement |
3 | | annuity,
pension credits covering previous service which have |
4 | | been established under
another system shall be considered in |
5 | | determining which range or ranges of
the step-rate formula are |
6 | | to be applicable to the employee.
|
7 | | Interest on pension credit shall continue to accumulate in |
8 | | accordance with
the provisions of the law governing the |
9 | | retirement system in which the same
has been established during |
10 | | the time an employee is in the service of another
employer, on |
11 | | the assumption such employee, for interest purposes for pension
|
12 | | credit, is continuing in the service covered by such retirement |
13 | | system.
|
14 | | (Source: P.A. 91-887, eff. 7-6-00.)
|
15 | | (40 ILCS 5/20-123) (from Ch. 108 1/2, par. 20-123)
|
16 | | Sec. 20-123. Survivor's annuity. The provisions governing |
17 | | a retirement
annuity shall be applicable to a survivor's |
18 | | annuity. Appropriate credits shall
be established for |
19 | | survivor's annuity purposes in those participating systems
|
20 | | which provide survivor's annuities, according to the same |
21 | | conditions and
subject to the same limitations and restrictions |
22 | | herein prescribed for a
retirement annuity. If a participating |
23 | | system has no survivor's annuity
benefit, or if the survivor's |
24 | | annuity benefit under that system is waived,
pension credit |
25 | | established in that system shall not be considered
in |
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1 | | determining eligibility for or the amount of the survivor's |
2 | | annuity which
may be payable by any other participating system.
|
3 | | For persons who participate in the self-managed plan |
4 | | established under
Section 15-158.2 or the portable benefit |
5 | | package established under Section
15-136.4, pension credit |
6 | | established under Article 15 may be considered in
determining |
7 | | eligibility for or the amount of the survivor's annuity that is
|
8 | | payable by any other participating system, but pension credit |
9 | | established in
any other system shall not result in any right |
10 | | to a survivor's annuity under
the Article 15 system.
|
11 | | For persons who participate in the cash balance plan |
12 | | established under
Section 1-161, pension credit established |
13 | | under the participating system with respect to which the person |
14 | | participates in the cash balance plan may be considered in
|
15 | | determining eligibility for or the amount of the survivor's |
16 | | annuity that is
payable by any other participating system with |
17 | | respect to which the person does not participate in the cash |
18 | | balance plan, but the amount of any survivor's
annuity payable |
19 | | under the cash balance plan established under Section 1-161 |
20 | | shall be calculated solely in accordance with that Section. |
21 | | (Source: P.A. 91-887, eff. 7-6-00.)
|
22 | | (40 ILCS 5/20-124) (from Ch. 108 1/2, par. 20-124)
|
23 | | Sec. 20-124. Maximum benefits. |
24 | | (a) In no event shall the combined retirement
or survivors |
25 | | annuities exceed the highest annuity which would have been |
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1 | | payable
by any participating system in which the employee has |
2 | | pension credits, if all
of his pension credits had been |
3 | | validated in that system.
|
4 | | If the combined annuities should exceed the highest maximum |
5 | | as determined
in accordance with this Section, the respective |
6 | | annuities shall be reduced
proportionately according to the |
7 | | ratio which the amount of each proportional
annuity bears to |
8 | | the aggregate of all such annuities ; except that benefits |
9 | | payable under the cash balance plan established under Section |
10 | | 1-161 are not subject to
proportionate reduction under this |
11 | | Section .
|
12 | | (b) In the case of a participant in the self-managed plan |
13 | | established under
Section 15-158.2 of this Code to whom the |
14 | | provisions of this Article apply:
|
15 | | (i) For purposes of calculating the combined |
16 | | retirement annuity and
the proportionate reduction, if |
17 | | any, in a retirement annuity other than one
payable under |
18 | | the self-managed plan, the amount of the Article 15 |
19 | | retirement
annuity shall be deemed to be the highest |
20 | | annuity to which the annuitant would
have been entitled if |
21 | | he or she had participated in the traditional benefit
|
22 | | package as defined in Section 15-103.1 rather than the |
23 | | self-managed plan.
|
24 | | (ii) For purposes of calculating the combined |
25 | | survivor's annuity and
the proportionate reduction, if |
26 | | any, in a survivor's annuity other than one
payable under |
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1 | | the self-managed plan, the amount of the Article 15 |
2 | | survivor's
annuity shall be deemed to be the highest |
3 | | survivor's annuity to which the
survivor would have been |
4 | | entitled if the deceased employee had participated in
the |
5 | | traditional benefit package as defined in Section 15-103.1 |
6 | | rather than the
self-managed plan.
|
7 | | (iii) Benefits payable under the self-managed plan are |
8 | | not subject to
proportionate reduction under this Section.
|
9 | | (Source: P.A. 91-887, eff. 7-6-00.)
|
10 | | (40 ILCS 5/20-125) (from Ch. 108 1/2, par. 20-125)
|
11 | | Sec. 20-125. Return to employment - suspension of benefits. |
12 | | If a retired
employee returns to employment which is covered by |
13 | | a system from which he is
receiving a proportional annuity |
14 | | under this Article, his proportional annuity
from all |
15 | | participating systems shall be suspended during the period of
|
16 | | re-employment, except that this suspension does not apply to |
17 | | any
distributions payable under the self-managed plan |
18 | | established under Section
15-158.2 of this Code.
|
19 | | The provisions of the Article under which such employment |
20 | | would be
covered (including Section 1-161 in the case of a |
21 | | participant in the cash balance plan) shall govern the |
22 | | determination of whether the employee has returned
to |
23 | | employment, and if applicable the exemption of temporary |
24 | | employment or
employment not exceeding a specified duration or |
25 | | frequency, for all
participating systems from which the retired |
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1 | | employee is receiving a
proportional annuity under this |
2 | | Article, notwithstanding any contrary
provisions in the other |
3 | | Articles governing such systems.
|
4 | | (Source: P.A. 91-887, eff. 7-6-00.)
|
5 | | Section 90. The State Mandates Act is amended by adding |
6 | | Section 8.36 as follows: |
7 | | (30 ILCS 805/8.36 new) |
8 | | Sec. 8.36. Exempt mandate. Notwithstanding Sections 6 and 8 |
9 | | of this Act, no reimbursement by the State is required for the |
10 | | implementation of any mandate created by this amendatory Act of |
11 | | the 97th General Assembly. |
12 | | Section 97. Inseverability. The provisions of this Act are |
13 | | inseverable. |
14 | | Section 99. Effective date. This Act takes effect upon |
15 | | becoming law. |
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| 1 | |
INDEX
| 2 | |
Statutes amended in order of appearance
| | 3 | | 20 ILCS 3005/7 | from Ch. 127, par. 417 | | 4 | | 20 ILCS 3005/8 | from Ch. 127, par. 418 | | 5 | | 30 ILCS 105/13 | from Ch. 127, par. 149 | | 6 | | 30 ILCS 105/24.12 new | | | 7 | | 30 ILCS 105/24.13 new | | | 8 | | 30 ILCS 122/20 | | | 9 | | 40 ILCS 5/1-103.3 | | | 10 | | 40 ILCS 5/1-160 | | | 11 | | 40 ILCS 5/1-161 new | | | 12 | | 40 ILCS 5/2-105.1 new | | | 13 | | 40 ILCS 5/2-105.2 new | | | 14 | | 40 ILCS 5/2-108 | from Ch. 108 1/2, par. 2-108 | | 15 | | 40 ILCS 5/2-119 | from Ch. 108 1/2, par. 2-119 | | 16 | | 40 ILCS 5/2-119.1 | from Ch. 108 1/2, par. 2-119.1 | | 17 | | 40 ILCS 5/2-121.1 | from Ch. 108 1/2, par. 2-121.1 | | 18 | | 40 ILCS 5/2-124 | from Ch. 108 1/2, par. 2-124 | | 19 | | 40 ILCS 5/2-125 | from Ch. 108 1/2, par. 2-125 | | 20 | | 40 ILCS 5/2-126 | from Ch. 108 1/2, par. 2-126 | | 21 | | 40 ILCS 5/2-134 | from Ch. 108 1/2, par. 2-134 | | 22 | | 40 ILCS 5/2-162 | | | 23 | | 40 ILCS 5/14-103.10 | from Ch. 108 1/2, par. 14-103.10 | | 24 | | 40 ILCS 5/14-103.40 new | | | 25 | | 40 ILCS 5/14-103.41 new | | |
| | | HB6258 | - 227 - | LRB097 23545 JDS 72554 b |
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| 1 | | 40 ILCS 5/14-107 | from Ch. 108 1/2, par. 14-107 | | 2 | | 40 ILCS 5/14-108 | from Ch. 108 1/2, par. 14-108 | | 3 | | 40 ILCS 5/14-110 | from Ch. 108 1/2, par. 14-110 | | 4 | | 40 ILCS 5/14-114 | from Ch. 108 1/2, par. 14-114 | | 5 | | 40 ILCS 5/14-131 | | | 6 | | 40 ILCS 5/14-132 | from Ch. 108 1/2, par. 14-132 | | 7 | | 40 ILCS 5/14-133 | from Ch. 108 1/2, par. 14-133 | | 8 | | 40 ILCS 5/14-135.08 | from Ch. 108 1/2, par. 14-135.08 | | 9 | | 40 ILCS 5/14-152.1 | | | 10 | | 40 ILCS 5/15-107.1 new | | | 11 | | 40 ILCS 5/15-107.2 new | | | 12 | | 40 ILCS 5/15-111 | from Ch. 108 1/2, par. 15-111 | | 13 | | 40 ILCS 5/15-113.6 | from Ch. 108 1/2, par. 15-113.6 | | 14 | | 40 ILCS 5/15-113.7 | from Ch. 108 1/2, par. 15-113.7 | | 15 | | 40 ILCS 5/15-134.5 | | | 16 | | 40 ILCS 5/15-135 | from Ch. 108 1/2, par. 15-135 | | 17 | | 40 ILCS 5/15-136 | from Ch. 108 1/2, par. 15-136 | | 18 | | 40 ILCS 5/15-155 | from Ch. 108 1/2, par. 15-155 | | 19 | | 40 ILCS 5/15-155.1 new | | | 20 | | 40 ILCS 5/15-156 | from Ch. 108 1/2, par. 15-156 | | 21 | | 40 ILCS 5/15-157 | from Ch. 108 1/2, par. 15-157 | | 22 | | 40 ILCS 5/15-158.2 | | | 23 | | 40 ILCS 5/15-165 | from Ch. 108 1/2, par. 15-165 | | 24 | | 40 ILCS 5/15-198 | | | 25 | | 40 ILCS 5/16-106.4 new | | | 26 | | 40 ILCS 5/16-106.5 new | | |
| | | HB6258 | - 228 - | LRB097 23545 JDS 72554 b |
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| 1 | | 40 ILCS 5/16-121 | from Ch. 108 1/2, par. 16-121 | | 2 | | 40 ILCS 5/16-132 | from Ch. 108 1/2, par. 16-132 | | 3 | | 40 ILCS 5/16-133 | from Ch. 108 1/2, par. 16-133 | | 4 | | 40 ILCS 5/16-133.1 | from Ch. 108 1/2, par. 16-133.1 | | 5 | | 40 ILCS 5/16-152 | from Ch. 108 1/2, par. 16-152 | | 6 | | 40 ILCS 5/16-158 | from Ch. 108 1/2, par. 16-158 | | 7 | | 40 ILCS 5/16-158.1 | from Ch. 108 1/2, par. 16-158.1 | | 8 | | 40 ILCS 5/16-158.2 new | | | 9 | | 40 ILCS 5/16-203 | | | 10 | | 40 ILCS 5/20-121 | from Ch. 108 1/2, par. 20-121 | | 11 | | 40 ILCS 5/20-123 | from Ch. 108 1/2, par. 20-123 | | 12 | | 40 ILCS 5/20-124 | from Ch. 108 1/2, par. 20-124 | | 13 | | 40 ILCS 5/20-125 | from Ch. 108 1/2, par. 20-125 | | 14 | | 30 ILCS 805/8.36 new | |
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