093_SB0588
LRB093 07910 EFG 08101 b
1 AN ACT in relation to public employee benefits.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Illinois Pension Code is amended by
5 changing Sections 15-136, 15-136.3, 15-145, 15-155, and
6 15-165 and adding Section 15-137.1 as follows:
7 (40 ILCS 5/15-136) (from Ch. 108 1/2, par. 15-136)
8 Sec. 15-136. Retirement annuities - Amount. The
9 provisions of this Section 15-136 apply only to those
10 participants who are participating in the traditional benefit
11 package or the portable benefit package and do not apply to
12 participants who are participating in the self-managed plan.
13 (a) The amount of a participant's retirement annuity,
14 expressed in the form of a single-life annuity, shall be
15 determined by whichever of the following rules is applicable
16 and provides the largest annuity:
17 Rule 1: The retirement annuity shall be 1.67% of final
18 rate of earnings for each of the first 10 years of service,
19 1.90% for each of the next 10 years of service, 2.10% for
20 each year of service in excess of 20 but not exceeding 30,
21 and 2.30% for each year in excess of 30; or for persons who
22 retire on or after January 1, 1998, 2.2% of the final rate of
23 earnings for each year of service.
24 Rule 2: The retirement annuity shall be the sum of the
25 following, determined from amounts credited to the
26 participant in accordance with the actuarial tables and the
27 prescribed rate of interest in effect at the time the
28 retirement annuity begins:
29 (i) the normal annuity which can be provided on an
30 actuarially equivalent basis, by the accumulated normal
31 contributions as of the date the annuity begins; and
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1 (ii) an annuity from employer contributions of an
2 amount equal to that which can be provided on an
3 actuarially equivalent basis from the accumulated normal
4 contributions made by the participant under Section
5 15-113.6 and Section 15-113.7 plus 1.4 times all other
6 accumulated normal contributions made by the participant.
7 With respect to a police officer or firefighter who
8 retires on or after August 14, 1998, the accumulated normal
9 contributions taken into account under clauses (i) and (ii)
10 of this Rule 2 shall include the additional normal
11 contributions made by the police officer or firefighter under
12 Section 15-157(a).
13 The amount of a retirement annuity calculated under this
14 Rule 2 shall be computed solely on the basis of the
15 participant's accumulated normal contributions, as specified
16 in this Rule and defined in Section 15-116. Neither an
17 employee or employer contribution for early retirement under
18 Section 15-136.2 nor any other employer contribution shall be
19 used in the calculation of the amount of a retirement annuity
20 under this Rule 2.
21 This amendatory Act of the 91st General Assembly is a
22 clarification of existing law and applies to every
23 participant and annuitant without regard to whether status as
24 an employee terminates before the effective date of this
25 amendatory Act.
26 Rule 3: The retirement annuity of a participant who is
27 employed at least one-half time during the period on which
28 his or her final rate of earnings is based, shall be equal to
29 the participant's years of service not to exceed 30,
30 multiplied by (1) $96 if the participant's final rate of
31 earnings is less than $3,500, (2) $108 if the final rate of
32 earnings is at least $3,500 but less than $4,500, (3) $120 if
33 the final rate of earnings is at least $4,500 but less than
34 $5,500, (4) $132 if the final rate of earnings is at least
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1 $5,500 but less than $6,500, (5) $144 if the final rate of
2 earnings is at least $6,500 but less than $7,500, (6) $156 if
3 the final rate of earnings is at least $7,500 but less than
4 $8,500, (7) $168 if the final rate of earnings is at least
5 $8,500 but less than $9,500, and (8) $180 if the final rate
6 of earnings is $9,500 or more, except that the annuity for
7 those persons having made an election under Section
8 15-154(a-1) shall be calculated and payable under the
9 portable retirement benefit program pursuant to the
10 provisions of Section 15-136.4.
11 Rule 4: A participant who is at least age 50 and has 25
12 or more years of service as a police officer or firefighter,
13 and a participant who is age 55 or over and has at least 20
14 but less than 25 years of service as a police officer or
15 firefighter, shall be entitled to a retirement annuity of
16 2 1/4% of the final rate of earnings for each of the first 10
17 years of service as a police officer or firefighter, 2 1/2%
18 for each of the next 10 years of service as a police officer
19 or firefighter, and 2 3/4% for each year of service as a
20 police officer or firefighter in excess of 20. The
21 retirement annuity for all other service shall be computed
22 under Rule 1.
23 For purposes of this Rule 4, a participant's service as a
24 firefighter shall also include the following:
25 (i) service that is performed while the person is
26 an employee under subsection (h) of Section 15-107; and
27 (ii) in the case of an individual who was a
28 participating employee employed in the fire department of
29 the University of Illinois's Champaign-Urbana campus
30 immediately prior to the elimination of that fire
31 department and who immediately after the elimination of
32 that fire department transferred to another job with the
33 University of Illinois, service performed as an employee
34 of the University of Illinois in a position other than
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1 police officer or firefighter, from the date of that
2 transfer until the employee's next termination of service
3 with the University of Illinois.
4 Rule 5: The retirement annuity of a participant who
5 elected early retirement under the provisions of Section
6 15-136.2 and who, on or before February 16, 1995, brought
7 administrative proceedings pursuant to the administrative
8 rules adopted by the System to challenge the calculation of
9 his or her retirement annuity shall be the sum of the
10 following, determined from amounts credited to the
11 participant in accordance with the actuarial tables and the
12 prescribed rate of interest in effect at the time the
13 retirement annuity begins:
14 (i) the normal annuity which can be provided on an
15 actuarially equivalent basis, by the accumulated normal
16 contributions as of the date the annuity begins; and
17 (ii) an annuity from employer contributions of an
18 amount equal to that which can be provided on an
19 actuarially equivalent basis from the accumulated normal
20 contributions made by the participant under Section
21 15-113.6 and Section 15-113.7 plus 1.4 times all other
22 accumulated normal contributions made by the participant;
23 and
24 (iii) an annuity which can be provided on an
25 actuarially equivalent basis from the employee
26 contribution for early retirement under Section 15-136.2,
27 and an annuity from employer contributions of an amount
28 equal to that which can be provided on an actuarially
29 equivalent basis from the employee contribution for early
30 retirement under Section 15-136.2.
31 In no event shall a retirement annuity under this Rule 5
32 be lower than the amount obtained by adding (1) the monthly
33 amount obtained by dividing the combined employee and
34 employer contributions made under Section 15-136.2 by the
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1 System's annuity factor for the age of the participant at the
2 beginning of the annuity payment period and (2) the amount
3 equal to the participant's annuity if calculated under Rule
4 1, reduced under Section 15-136(b) as if no contributions had
5 been made under Section 15-136.2.
6 With respect to a participant who is qualified for a
7 retirement annuity under this Rule 5 whose retirement annuity
8 began before the effective date of this amendatory Act of the
9 91st General Assembly, and for whom an employee contribution
10 was made under Section 15-136.2, the System shall recalculate
11 the retirement annuity under this Rule 5 and shall pay any
12 additional amounts due in the manner provided in Section
13 15-186.1 for benefits mistakenly set too low.
14 The amount of a retirement annuity calculated under this
15 Rule 5 shall be computed solely on the basis of those
16 contributions specifically set forth in this Rule 5. Except
17 as provided in clause (iii) of this Rule 5, neither an
18 employee nor employer contribution for early retirement under
19 Section 15-136.2, nor any other employer contribution, shall
20 be used in the calculation of the amount of a retirement
21 annuity under this Rule 5.
22 The General Assembly has adopted the changes set forth in
23 Section 25 of this amendatory Act of the 91st General
24 Assembly in recognition that the decision of the Appellate
25 Court for the Fourth District in Mattis v. State Universities
26 Retirement System et al. might be deemed to give some right
27 to the plaintiff in that case. The changes made by Section
28 25 of this amendatory Act of the 91st General Assembly are a
29 legislative implementation of the decision of the Appellate
30 Court for the Fourth District in Mattis v. State Universities
31 Retirement System et al. with respect to that plaintiff.
32 The changes made by Section 25 of this amendatory Act of
33 the 91st General Assembly apply without regard to whether the
34 person is in service as an employee on or after its effective
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1 date.
2 (b) The retirement annuity provided under Rules 1 and 3
3 above shall be reduced by 1/2 of 1% for each month the
4 participant is under age 60 at the time of retirement.
5 However, this reduction shall not apply in the following
6 cases:
7 (1) For a disabled participant whose disability
8 benefits have been discontinued because he or she has
9 exhausted eligibility for disability benefits under
10 clause (6) of Section 15-152;
11 (2) For a participant who has at least the number
12 of years of service required to retire at any age under
13 subsection (a) of Section 15-135; or
14 (3) For that portion of a retirement annuity which
15 has been provided on account of service of the
16 participant during periods when he or she performed the
17 duties of a police officer or firefighter, if these
18 duties were performed for at least 5 years immediately
19 preceding the date the retirement annuity is to begin.
20 (c) The maximum retirement annuity provided under Rules
21 1, 2, 4, and 5 shall be the lesser of (1) the annual limit of
22 benefits as specified in Section 415 of the Internal Revenue
23 Code of 1986, as such Section may be amended from time to
24 time and as such benefit limits shall be adjusted by the
25 Commissioner of Internal Revenue, and (2) 80% of final rate
26 of earnings.
27 (d) An annuitant whose status as an employee terminates
28 after August 14, 1969 shall receive automatic increases in
29 his or her retirement annuity as follows:
30 Effective January 1 immediately following the date the
31 retirement annuity begins, the annuitant shall receive an
32 increase in his or her monthly retirement annuity of 0.125%
33 of the monthly retirement annuity provided under Rule 1, Rule
34 2, Rule 3, Rule 4, or Rule 5, contained in this Section,
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1 multiplied by the number of full months which elapsed from
2 the date the retirement annuity payments began to January 1,
3 1972, plus 0.1667% of such annuity, multiplied by the number
4 of full months which elapsed from January 1, 1972, or the
5 date the retirement annuity payments began, whichever is
6 later, to January 1, 1978, plus 0.25% of such annuity
7 multiplied by the number of full months which elapsed from
8 January 1, 1978, or the date the retirement annuity payments
9 began, whichever is later, to the effective date of the
10 increase.
11 The annuitant shall receive an increase in his or her
12 monthly retirement annuity on each January 1 thereafter
13 during the annuitant's life of 3% of the monthly annuity
14 provided under Rule 1, Rule 2, Rule 3, Rule 4, or Rule 5
15 contained in this Section. The change made under this
16 subsection by P.A. 81-970 is effective January 1, 1980 and
17 applies to each annuitant whose status as an employee
18 terminates before or after that date.
19 Beginning January 1, 1990, all automatic annual increases
20 payable under this Section shall be calculated as a
21 percentage of the total annuity payable at the time of the
22 increase, including all increases previously granted under
23 this Article.
24 The change made in this subsection by P.A. 85-1008 is
25 effective January 26, 1988, and is applicable without regard
26 to whether status as an employee terminated before that date.
27 (e) If, on January 1, 1987, or the date the retirement
28 annuity payment period begins, whichever is later, the sum of
29 the retirement annuity provided under Rule 1 or Rule 2 of
30 this Section and the automatic annual increases provided
31 under the preceding subsection or Section 15-136.1, amounts
32 to less than the retirement annuity which would be provided
33 by Rule 3, the retirement annuity shall be increased as of
34 January 1, 1987, or the date the retirement annuity payment
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1 period begins, whichever is later, to the amount which would
2 be provided by Rule 3 of this Section. Such increased amount
3 shall be considered as the retirement annuity in determining
4 benefits provided under other Sections of this Article. This
5 paragraph applies without regard to whether status as an
6 employee terminated before the effective date of this
7 amendatory Act of 1987, provided that the annuitant was
8 employed at least one-half time during the period on which
9 the final rate of earnings was based.
10 (f) A participant is entitled to such additional annuity
11 as may be provided on an actuarially equivalent basis, by any
12 accumulated additional contributions to his or her credit.
13 However, the additional contributions made by the participant
14 toward the automatic increases in annuity provided under this
15 Section shall not be taken into account in determining the
16 amount of such additional annuity.
17 (g) If, (1) by law, a function of a governmental unit,
18 as defined by Section 20-107 of this Code, is transferred in
19 whole or in part to an employer, and (2) a participant
20 transfers employment from such governmental unit to such
21 employer within 6 months after the transfer of the function,
22 and (3) the sum of (A) the annuity payable to the participant
23 under Rule 1, 2, or 3 of this Section (B) all proportional
24 annuities payable to the participant by all other retirement
25 systems covered by Article 20, and (C) the initial primary
26 insurance amount to which the participant is entitled under
27 the Social Security Act, is less than the retirement annuity
28 which would have been payable if all of the participant's
29 pension credits validated under Section 20-109 had been
30 validated under this system, a supplemental annuity equal to
31 the difference in such amounts shall be payable to the
32 participant.
33 (h) On January 1, 1981, an annuitant who was receiving a
34 retirement annuity on or before January 1, 1971 shall have
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1 his or her retirement annuity then being paid increased $1
2 per month for each year of creditable service. On January 1,
3 1982, an annuitant whose retirement annuity began on or
4 before January 1, 1977, shall have his or her retirement
5 annuity then being paid increased $1 per month for each year
6 of creditable service.
7 (i) On January 1, 1987, any annuitant whose retirement
8 annuity began on or before January 1, 1977, shall have the
9 monthly retirement annuity increased by an amount equal to 8¢
10 per year of creditable service times the number of years that
11 have elapsed since the annuity began.
12 (j) On July 1, 2003, every annuitant who began receiving
13 a retirement annuity before January 1, 1980 shall have the
14 monthly retirement annuity increased by whichever of the
15 following percentages is applicable:
16 5% if the annuity began in 1979;
17 10% if the annuity began in 1978;
18 14% if the annuity began in 1977;
19 14% if the annuity began in 1976;
20 18% if the annuity began in 1975;
21 23% if the annuity began in 1974;
22 32% if the annuity began in 1973 or before.
23 The increase under this subsection shall be calculated as
24 a percentage of the amount of the retirement annuity payable
25 on June 30, 2003, including any increases previously received
26 under this Article, and shall be included in the calculation
27 of increases granted thereafter under subsection (d).
28 (Source: P.A. 91-887 (Sections 20 and 25), eff. 7-6-00;
29 92-16, eff. 6-28-01.)
30 (40 ILCS 5/15-136.3)
31 Sec. 15-136.3. Minimum retirement annuity.
32 (a) Beginning January 1, 1997, any person who is
33 receiving a monthly retirement annuity under this Article
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1 which, after inclusion of (1) all one-time and automatic
2 annual increases to which the person is entitled, (2) any
3 supplemental annuity payable under Section 15-136.1, and (3)
4 any amount deducted under Section 15-138 or 15-140 to provide
5 a reversionary annuity, is less than the minimum monthly
6 retirement benefit amount specified in subsection (b) of this
7 Section, shall be entitled to a monthly supplemental payment
8 equal to the difference.
9 (b) For purposes of the calculation in subsection (a),
10 the minimum monthly retirement benefit amount is the sum of
11 $25 for each year of service credit, up to a maximum of 30
12 years of service, plus the amount of the increase received by
13 the annuitant under subsection (j) of Section 15-136, if any.
14 (c) This Section applies to all persons receiving a
15 retirement annuity under this Article, without regard to
16 whether or not employment terminated prior to the effective
17 date of this Section.
18 (Source: P.A. 89-616, eff. 8-9-96.)
19 (40 ILCS 5/15-137.1 new)
20 Sec. 15-137.1. Reduction of purchasing power; policy;
21 report; increase.
22 (a) The General Assembly finds and declares that:
23 (1) The purchasing power of a fixed annuity can be
24 eroded over time by the effects of inflation and
25 increases in the general cost of living.
26 (2) For a person whose income consists primarily of
27 a fixed annuity, the reduction in purchasing power
28 resulting from increases in the cost of living can become
29 catastrophic over time, transforming a once-comfortable
30 retirement into a time of poverty and need.
31 (3) The State of Illinois is concerned about the
32 effects that a significant reduction in purchasing power
33 can have on the quality of life of retired employees and
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1 their survivors.
2 (4) The General Assembly has previously addressed
3 this concern by providing for automatic annual increases
4 in retirement and survivor's annuities under this
5 Article. Recognizing that these automatic annual
6 increases, by themselves, are not a complete answer in
7 times of high inflation, the General Assembly has also,
8 from time to time, provided specific one-time increases
9 in annuities for certain categories of annuitants.
10 (b) It is the public policy of this State and the
11 intention of the General Assembly to protect annuitants
12 against significant decreases in the purchasing power of the
13 retirement and survivor's annuities granted under this
14 Article.
15 (c) The System shall regularly review the changes that
16 have occurred in the purchasing power of the retirement and
17 survivor's annuities being paid under this Article, and it
18 shall report to the General Assembly, the Governor, and the
19 Pension Laws Commission whenever it determines that the
20 original purchasing power of those annuities has been reduced
21 by 20% or more for any category or group of annuitants. The
22 System may include in the report its recommendations, if any,
23 for legislative action to address its findings.
24 (d) As used in this Section, the term "retirement and
25 survivor's annuities" means all retirement annuities and
26 those survivors insurance benefits payable in the form of an
27 annuity.
28 (e) This Section does not apply to any benefits under
29 the self-managed plan.
30 (40 ILCS 5/15-145) (from Ch. 108 1/2, par. 15-145)
31 Sec. 15-145. Survivors insurance benefits; conditions
32 and amounts.
33 (a) The survivors insurance benefits provided under this
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1 Section shall be payable to the eligible survivors of a
2 participant covered under the traditional benefit package
3 upon the death of (1) a participating employee with at least
4 1 1/2 years of service, (2) a participant who terminated
5 employment with at least 10 years of service, and (3) an
6 annuitant in receipt of a retirement annuity or disability
7 retirement annuity under this Article.
8 Service under the State Employees' Retirement System of
9 Illinois, the Teachers' Retirement System of the State of
10 Illinois and the Public School Teachers' Pension and
11 Retirement Fund of Chicago shall be considered in determining
12 eligibility for survivors benefits under this Section.
13 If by law, a function of a governmental unit, as defined
14 by Section 20-107, is transferred in whole or in part to an
15 employer, and an employee transfers employment from this
16 governmental unit to such employer within 6 months after the
17 transfer of this function, the service credits in the
18 governmental unit's retirement system which have been
19 validated under Section 20-109 shall be considered in
20 determining eligibility for survivors benefits under this
21 Section.
22 (b) A surviving spouse of a deceased participant, or of
23 a deceased annuitant who did not take a refund or additional
24 annuity consisting of accumulated survivors insurance
25 contributions, shall receive a survivors annuity of 30% of
26 the final rate of earnings. Payments shall begin on the day
27 following the participant's or annuitant's death or the date
28 the surviving spouse attains age 50, whichever is later, and
29 continue until the death of the surviving spouse. The
30 annuity shall be payable to the surviving spouse prior to
31 attainment of age 50 if the surviving spouse has in his or
32 her care a deceased participant's or annuitant's dependent
33 unmarried child under age 18 (under age 22 if a full-time
34 student) who is eligible for a survivors annuity.
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1 Remarriage of a surviving spouse prior to attainment of
2 age 55 that occurs before the effective date of this
3 amendatory Act of the 91st General Assembly shall disqualify
4 him or her for the receipt of a survivors annuity until July
5 6, 2000.
6 A surviving spouse whose survivors annuity has been
7 terminated due to remarriage may apply for reinstatement of
8 that annuity. The reinstated annuity shall begin to accrue
9 on July 6, 2000, except that if, on July 6, 2000, the annuity
10 is payable to an eligible surviving child or parent, payment
11 of the annuity to the surviving spouse shall not be
12 reinstated until the annuity is no longer payable to any
13 eligible surviving child or parent. The reinstated annuity
14 shall include any one-time or annual increases received prior
15 to the date of termination, as well as any increases that
16 would otherwise have accrued from the date of termination to
17 the date of reinstatement. An eligible surviving spouse
18 whose expectation of receiving a survivors annuity was lost
19 due to remarriage before attainment of age 50 shall also be
20 entitled to reinstatement under this subsection, but the
21 resulting survivors annuity shall not begin to accrue sooner
22 than upon the surviving spouse's attainment of age 50.
23 The changes made to this subsection by this amendatory
24 Act of the 92nd General Assembly (pertaining to remarriage
25 prior to age 55 or 50) apply without regard to whether the
26 deceased participant or annuitant was in service on or after
27 the effective date of this amendatory Act.
28 (c) Each dependent unmarried child under age 18 (under
29 age 22 if a full-time student) of a deceased participant, or
30 of a deceased annuitant who did not take a refund or
31 additional annuity consisting of accumulated survivors
32 insurance contributions, shall receive a survivors annuity
33 equal to the sum of (1) 20% of the final rate of earnings,
34 and (2) 10% of the final rate of earnings divided by the
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1 number of children entitled to this benefit. Payments shall
2 begin on the day following the participant's or annuitant's
3 death and continue until the child marries, dies, or attains
4 age 18 (age 22 if a full-time student). If the child is in
5 the care of a surviving spouse who is eligible for survivors
6 insurance benefits, the child's benefit shall be paid to the
7 surviving spouse.
8 Each unmarried child over age 18 of a deceased
9 participant or of a deceased annuitant who had a survivor's
10 insurance beneficiary at the time of his or her retirement,
11 and who was dependent upon the participant or annuitant by
12 reason of a physical or mental disability which began prior
13 to the date the child attained age 18 (age 22 if a full-time
14 student), shall receive a survivor's annuity equal to the sum
15 of (1) 20% of the final rate of earnings, and (2) 10% of the
16 final rate of earnings divided by the number of children
17 entitled to survivors benefits. Payments shall begin on the
18 day following the participant's or annuitant's death and
19 continue until the child marries, dies, or is no longer
20 disabled. If the child is in the care of a surviving spouse
21 who is eligible for survivors insurance benefits, the child's
22 benefit may be paid to the surviving spouse. For the
23 purposes of this Section, disability means inability to
24 engage in any substantial gainful activity by reason of any
25 medically determinable physical or mental impairment that can
26 be expected to result in death or that has lasted or can be
27 expected to last for a continuous period of at least one
28 year.
29 (d) Each dependent parent of a deceased participant, or
30 of a deceased annuitant who did not take a refund or
31 additional annuity consisting of accumulated survivors
32 insurance contributions, shall receive a survivors annuity
33 equal to the sum of (1) 20% of final rate of earnings, and
34 (2) 10% of final rate of earnings divided by the number of
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1 parents who qualify for the benefit. Payments shall begin
2 when the parent reaches age 55 or the day following the
3 participant's or annuitant's death, whichever is later, and
4 continue until the parent dies. Remarriage of a parent prior
5 to attainment of age 55 shall disqualify the parent for the
6 receipt of a survivors annuity.
7 (e) In addition to the survivors annuity provided above,
8 each survivors insurance beneficiary shall, upon death of the
9 participant or annuitant, receive a lump sum payment of
10 $1,000 divided by the number of such beneficiaries.
11 (f) The changes made in this Section by Public Act
12 81-712 pertaining to survivors annuities in cases of
13 remarriage prior to age 55 shall apply to each survivors
14 insurance beneficiary who remarries after June 30, 1979,
15 regardless of the date that the participant or annuitant
16 terminated his employment or died.
17 The change made to this Section by this amendatory Act of
18 the 91st General Assembly, pertaining to remarriage prior to
19 age 55, applies without regard to whether the deceased
20 participant or annuitant was in service on or after the
21 effective date of this amendatory Act of the 91st General
22 Assembly.
23 (g) On January 1, 1981, any person who was receiving a
24 survivors annuity on or before January 1, 1971 shall have the
25 survivors annuity then being paid increased by 1% for each
26 full year which has elapsed from the date the annuity began.
27 On January 1, 1982, any survivor whose annuity began after
28 January 1, 1971, but before January 1, 1981, shall have the
29 survivor's annuity then being paid increased by 1% for each
30 year which has elapsed from the date the survivor's annuity
31 began. On January 1, 1987, any survivor who began receiving a
32 survivor's annuity on or before January 1, 1977, shall have
33 the monthly survivor's annuity increased by $1 for each full
34 year which has elapsed since the date the survivor's annuity
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1 began.
2 (g-1) On July 1, 2003, every recipient of a survivor's
3 annuity whose original annuity began before January 1, 1980
4 shall have the monthly survivor's annuity increased by
5 whichever of the following percentages is applicable:
6 5% if the original annuity began in 1979;
7 10% if the original annuity began in 1978;
8 14% if the original annuity began in 1977;
9 14% if the original annuity began in 1976;
10 18% if the original annuity began in 1975;
11 23% if the original annuity began in 1974;
12 32% if the original annuity began in 1973 or before.
13 In the case of the survivor of a deceased annuitant who
14 died while receiving a retirement annuity, "original annuity"
15 means the deceased annuitant's retirement annuity; in all
16 other cases, "original annuity" means the survivor's annuity.
17 The increase under this subsection shall be calculated as
18 a percentage of the amount of the survivor's annuity payable
19 on June 30, 2003, including any increases previously received
20 under this Article, and shall be included in the calculation
21 of increases granted thereafter under subsection (j).
22 (h) If the sum of the lump sum and total monthly
23 survivor benefits payable under this Section upon the death
24 of a participant amounts to less than the sum of the death
25 benefits payable under items (2) and (3) of Section 15-141,
26 the difference shall be paid in a lump sum to the beneficiary
27 of the participant who is living on the date that this
28 additional amount becomes payable.
29 (i) If the sum of the lump sum and total monthly
30 survivor benefits payable under this Section upon the death
31 of an annuitant receiving a retirement annuity or disability
32 retirement annuity amounts to less than the death benefit
33 payable under Section 15-142, the difference shall be paid to
34 the beneficiary of the annuitant who is living on the date
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1 that this additional amount becomes payable.
2 (j) Effective on the later of (1) January 1, 1990, or
3 (2) the January 1 on or next after the date on which the
4 survivor annuity begins, if the deceased member died while
5 receiving a retirement annuity, or in all other cases the
6 January 1 nearest the first anniversary of the date the
7 survivor annuity payments begin, every survivors insurance
8 beneficiary shall receive an increase in his or her monthly
9 survivors annuity of 3%. On each January 1 after the initial
10 increase, the monthly survivors annuity shall be increased by
11 3% of the total survivors annuity provided under this
12 Article, including previous increases provided by this
13 subsection. Such increases shall apply to the survivors
14 insurance beneficiaries of each participant and annuitant,
15 whether or not the employment status of the participant or
16 annuitant terminates before the effective date of this
17 amendatory Act of 1990. This subsection (j) also applies to
18 persons receiving a survivor annuity under the portable
19 benefit package.
20 (k) If the Internal Revenue Code of 1986, as amended,
21 requires that the survivors benefits be payable at an age
22 earlier than that specified in this Section the benefits
23 shall begin at the earlier age, in which event, the
24 survivor's beneficiary shall be entitled only to that amount
25 which is equal to the actuarial equivalent of the benefits
26 provided by this Section.
27 (l) The changes made to this Section and Section 15-131
28 by this amendatory Act of 1997, relating to benefits for
29 certain unmarried children who are full-time students under
30 age 22, apply without regard to whether the deceased member
31 was in service on or after the effective date of this
32 amendatory Act of 1997. These changes do not authorize the
33 repayment of a refund or a re-election of benefits, and any
34 benefit or increase in benefits resulting from these changes
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1 is not payable retroactively for any period before the
2 effective date of this amendatory Act of 1997.
3 (Source: P.A. 91-887, eff. 7-6-00; 92-749, eff. 8-2-02.)
4 (40 ILCS 5/15-155) (from Ch. 108 1/2, par. 15-155)
5 Sec. 15-155. Employer contributions.
6 (a) The State of Illinois shall make contributions by
7 appropriations of amounts which, together with the other
8 employer contributions from trust, federal, and other funds,
9 employee contributions, income from investments, and other
10 income of this System, will be sufficient to meet the cost of
11 maintaining and administering the System on a 90% funded
12 basis in accordance with actuarial recommendations.
13 The Board shall determine the amount of State
14 contributions required for each fiscal year on the basis of
15 the actuarial tables and other assumptions adopted by the
16 Board and the recommendations of the actuary, using the
17 formulaeformula in subsection (a-1) and subsection (a-2).
18 The minimum contribution to the System to be made by the
19 State for each fiscal year shall be the sum of the amount
20 determined under subsection (a-1) and the amount determined
21 under subsection (a-2).
22 (a-1) For State fiscal years 2011 through 2045, the
23 minimum contribution to the System to be made by the State
24 for each fiscal year shall be an amount determined by the
25 System to be sufficient to bring the total assets of the
26 System up to 90% of the total actuarial liabilities of the
27 System (other than the liabilities described in subsection
28 (a-2) of this Section) by the end of State fiscal year 2045.
29 In making these determinations, the required State
30 contribution shall be calculated each year as a level
31 percentage of payroll over the years remaining to and
32 including fiscal year 2045 and shall be determined under the
33 projected unit credit actuarial cost method.
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1 For State fiscal years 1996 through 2010, the State
2 contribution to the System, as a percentage of the applicable
3 employee payroll, shall be increased in equal annual
4 increments so that by State fiscal year 2011, the State is
5 contributing at the rate required under this Section.
6 Beginning in State fiscal year 2046, the minimum State
7 contribution for each fiscal year shall be the amount needed
8 to maintain the total assets of the System at 90% of the
9 total actuarial liabilities of the System.
10 (a-2) The cost of the one-time increases granted by this
11 amendatory Act of the 93rd General Assembly under subsection
12 (j) of Section 15-136, subsection (b) of Section 15-136.3
13 (insofar as it derives from that subsection (j) increase),
14 and subsection (g-1) of Section 15-145 shall be paid by the
15 State on a level dollar basis over a period of 10 years
16 beginning July 1, 2005. These contributions are in addition
17 to, and shall not be included in the calculation of, the
18 State contribution required under subsection (a-1).
19 (b) If an employee is paid from trust or federal funds,
20 the employer shall pay to the Board contributions from those
21 funds which are sufficient to cover the accruing normal costs
22 on behalf of the employee. However, universities having
23 employees who are compensated out of local auxiliary funds,
24 income funds, or service enterprise funds are not required to
25 pay such contributions on behalf of those employees. The
26 local auxiliary funds, income funds, and service enterprise
27 funds of universities shall not be considered trust funds for
28 the purpose of this Article, but funds of alumni
29 associations, foundations, and athletic associations which
30 are affiliated with the universities included as employers
31 under this Article and other employers which do not receive
32 State appropriations are considered to be trust funds for the
33 purpose of this Article.
34 (b-1) The City of Urbana and the City of Champaign shall
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1 each make employer contributions to this System for their
2 respective firefighter employees who participate in this
3 System pursuant to subsection (h) of Section 15-107. The
4 rate of contributions to be made by those municipalities
5 shall be determined annually by the Board on the basis of the
6 actuarial assumptions adopted by the Board and the
7 recommendations of the actuary, and shall be expressed as a
8 percentage of salary for each such employee. The Board shall
9 certify the rate to the affected municipalities as soon as
10 may be practical. The employer contributions required under
11 this subsection shall be remitted by the municipality to the
12 System at the same time and in the same manner as employee
13 contributions.
14 (c) Through State fiscal year 1995: The total employer
15 contribution shall be apportioned among the various funds of
16 the State and other employers, whether trust, federal, or
17 other funds, in accordance with actuarial procedures approved
18 by the board. State of Illinois contributions for employers
19 receiving State appropriations for personal services shall be
20 payable from appropriations made to the employers or to the
21 System. The contributions for Class I community colleges
22 covering earnings other than those paid from trust and
23 federal funds, shall be payable solely from appropriations to
24 the Illinois Community College Board or the System for
25 employer contributions.
26 (d) Beginning in State fiscal year 1996, the required
27 State contributions to the System shall be appropriated
28 directly to the System and shall be payable through vouchers
29 issued in accordance with subsection (c) of Section 15-165.
30 (e) The State Comptroller shall draw warrants payable to
31 the System upon proper certification by the System or by the
32 employer in accordance with the appropriation laws and this
33 Code.
34 (f) Normal costs under this Section means liability for
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1 pensions and other benefits which accrues to the System
2 because of the credits earned for service rendered by the
3 participants during the fiscal year and expenses of
4 administering the System, but shall not include the principal
5 of or any redemption premium or interest on any bonds issued
6 by the board or any expenses incurred or deposits required in
7 connection therewith.
8 (Source: P.A. 89-602, eff. 8-2-96; 90-576, eff. 3-31-98.)
9 (40 ILCS 5/15-165) (from Ch. 108 1/2, par. 15-165)
10 Sec. 15-165. To certify amounts and submit vouchers.
11 (a) The Board shall certify to the Governor on or before
12 November 15 of each year the appropriation required from
13 State funds for the purposes of this System for the following
14 fiscal year. The certification shall include a copy of the
15 actuarial recommendations upon which it is based.
16 (b) The Board shall certify to the State Comptroller or
17 employer, as the case may be, from time to time, by its
18 president and secretary, with its seal attached, the amounts
19 payable to the System from the various funds.
20 (c) Beginning in State fiscal year 1996, on or as soon
21 as possible after the 15th day of each month the Board shall
22 submit vouchers for payment of State contributions to the
23 System, in a total monthly amount of one-twelfth of the
24 required annual State contribution certified under subsection
25 (a). These vouchers shall be paid by the State Comptroller
26 and Treasurer by warrants drawn on the funds appropriated to
27 the System for that fiscal year.
28 If in any month the amount remaining unexpended from all
29 other appropriations to the System for the applicable fiscal
30 year (including the appropriations to the System under
31 Section 8.12 of the State Finance Act and Section 1 of the
32 State Pension Funds Continuing Appropriation Act) is less
33 than the amount lawfully vouchered under this Section, the
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1 difference shall be paid from the General Revenue Fund under
2 the continuing appropriation authority provided in Section
3 1.1 of the State Pension Funds Continuing Appropriation Act.
4 (d) So long as the payments received are the full amount
5 lawfully vouchered under this Section, payments received by
6 the System under this Section shall be applied first toward
7 the employer contribution to the self-managed plan
8 established under Section 15-158.2. Payments shall be
9 applied second toward the employer's portion of the normal
10 costs of the System, as defined in subsection (f) of Section
11 15-155. The balance shall be applied toward the unfunded
12 actuarial liabilities of the System.
13 (e) In the event that the System does not receive, as a
14 result of legislative enactment or otherwise, payments
15 sufficient to fully fund the employer contribution to the
16 self-managed plan established under Section 15-158.2 and to
17 fully fund that portion of the employer's portion of the
18 normal costs of the System, as calculated in accordance with
19 subsections (a-1) and (a-2) of Section 15-15515-155(a-1),
20 then any payments received shall be applied proportionately
21 to the optional retirement program established under Section
22 15-158.2 and to the employer's portion of the normal costs of
23 the System, as calculated in accordance with subsections
24 (a-1) and (a-2) of Section 15-15515-155(a-1).
25 (Source: P.A. 90-448, eff. 8-16-97; 90-766, eff. 8-14-98.)
26 Section 99. Effective date. This Act takes effect upon
27 becoming law.