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Full Text of SB0550  96th General Assembly

SB0550ham002 96TH GENERAL ASSEMBLY

Rep. Kevin A. McCarthy

Filed: 11/23/2010

 

 


 

 


 
09600SB0550ham002LRB096 06603 JDS 44071 a

1
AMENDMENT TO SENATE BILL 550

2    AMENDMENT NO. ______. Amend Senate Bill 550, AS AMENDED, by
3replacing everything after the enacting clause with the
4following:
 
5    "Section 5. The Illinois Pension Code is amended by
6changing Sections 1-160, 2-108.1, 2-119, 2-119.01, 2-119.1,
72-121.1, 2-122, 2-126, 8-168, 9-164, 9-220, 11-164, 13-601,
814-103.05, 14-103.10, 15-112, 15-113.6, 15-134, 15-136.3,
915-146, 18-115, 18-125, 18-125.1, 18-127, 18-128.01, and
1018-133 as follows:
 
11    (40 ILCS 5/1-160)
12    Sec. 1-160. Provisions applicable to new hires.
13    (a) The provisions of this Section apply to a person who,
14on or after January 1, 2011, first becomes a member or an
15employee and a participant under any reciprocal retirement
16system or pension fund established under this Code, other than

 

 

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1a retirement system or pension fund established under Article
22, 3, 4, 5, 6, or 18 of this Code, on or after the effective
3date of this amendatory Act of the 96th General Assembly
4notwithstanding any other provision of this Code to the
5contrary, but do not apply to any self-managed plan established
6under this Code, to any person with respect to service as a
7sheriff's law enforcement employee under Article 7, or to any
8participant of the retirement plan established under Section
922-101.
10    (b) "Final average salary" means the average monthly (or
11annual) salary obtained by dividing the total salary or
12earnings calculated under the Article applicable to of the
13member or participant during the 96 consecutive months (or 8
14consecutive years) of service within the last 120 months (or 10
15years) of service in which the total salary or earnings
16calculated under the applicable Article was the highest by the
17number of months (or years) of service in that period; however,
18the annual final average salary may not exceed $106,800, as
19automatically increased by the lesser of 3% or one-half of the
20annual increase in the consumer price index-u during the
21preceding 12-month calendar year. For the purposes of a person
22who first becomes a member or participant an employee of any
23retirement system or pension fund to which this Section applies
24on or after January 1, 2011 the effective date of this
25amendatory Act of the 96th General Assembly, in this Code,
26"final average salary" shall be substituted for the following:

 

 

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1        (1) In Articles 7 (except for service as sheriff's law
2    enforcement employees) and 15, "final rate of earnings".
3        (2) In Articles 8, 9, 10, 11, and 12, "highest average
4    annual salary for any 4 consecutive years within the last
5    10 years of service immediately preceding the date of
6    withdrawal".
7        (3) In Article 13, "average final salary".
8        (4) In Article 14, "final average compensation".
9        (5) In Article 17, "average salary".
10        (6) In Section 22-207, "wages or salary received by him
11    at the date of retirement or discharge".
12    (b-5) Beginning on January 1, 2011, for all purposes under
13this Code (including without limitation the calculation of
14benefits and employee contributions), the annual earnings,
15salary, or wages (based on the plan year) of a member or
16participant to whom this Section applies shall not exceed
17$106,800; however, that amount shall annually thereafter be
18increased by the lesser of (i) 3% of that amount, including all
19previous adjustments, or (ii) one-half the annual unadjusted
20percentage increase (but not less than zero) in the consumer
21price index-u for the 12 months ending with the September
22preceding each November 1, including all previous adjustments.
23    For the purposes of this Section, "consumer price index-u"
24means the index published by the Bureau of Labor Statistics of
25the United States Department of Labor that measures the average
26change in prices of goods and services purchased by all urban

 

 

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1consumers, United States city average, all items, 1982-84 =
2100. The new amount resulting from each annual adjustment shall
3be determined by the Public Pension Division of the Department
4of Insurance and made available to the boards of the retirement
5systems and pension funds by November 1 of each year.
6    (c) A member or participant is entitled to a retirement
7annuity upon beginning on the date specified by the participant
8in a written application only if, on that specified date, he or
9she has attained age 67 and has at least 10 years of service
10credit and is otherwise eligible under the requirements of the
11applicable Article.
12    A member or participant who has attained age 62 and has at
13least 10 years of service credit and is otherwise eligible
14under the requirements of the applicable Article may elect to
15receive the lower retirement annuity provided in subsection (d)
16of this Section.
17    (d) The retirement annuity of a member or participant who
18is retiring after attaining age 62 with at least 10 years of
19service credit shall be reduced by one-half of 1% for each full
20month that the member's age is under age 67.
21    (e) Any retirement annuity or supplemental annuity shall be
22subject to annual increases on the January 1 occurring either
23on or after the attainment of age 67 or the first anniversary
24of the annuity start date, whichever is later upon (1)
25attainment of age 67 or (2) the first anniversary of the
26commencement of the annuity, whichever occurs later. Each

 

 

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1annual increase shall be calculated at 3% or one-half the
2annual unadjusted percentage increase (but not less than zero)
3in the consumer price index-u for the 12 months ending with the
4September preceding each November 1 for the preceding calendar
5year, whichever is less, of the originally granted retirement
6annuity. If the annual unadjusted percentage change increase in
7the consumer price index-u for the 12 months ending with the
8September preceding each November 1 calendar year is zero or
9there is a decrease, then the annuity shall not be increased.
10    (f) The initial survivor's or widow's annuity of an
11otherwise eligible survivor or widow of a retired member or
12participant who first became a member or becomes a participant
13on or after January 1, 2011 the effective date of this
14amendatory Act of the 96th General Assembly shall be in the
15amount of 66 2/3% of the retired member's or participant's
16earned retirement annuity at the date of death. In the case of
17the death of a member or participant who has not retired and
18who first became a member or participant on or after January 1,
192011, eligibility for a survivor's or widow's annuity shall be
20determined by the applicable Article of this Code. The initial
21benefit shall be 66 2/3% of the earned annuity without a
22reduction due to age. A child's annuity of an otherwise
23eligible child shall be in the amount prescribed under each
24Article if applicable. Any survivor's or widow's annuity and
25shall be increased (1) on each January 1 occurring on or after
26the commencement of the annuity if the deceased member died

 

 

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1while receiving a retirement annuity or (2) in other cases, on
2each January 1 occurring after the first anniversary of the
3commencement of the annuity. Each annual increase shall be
4calculated at 3% or one-half the annual unadjusted percentage
5increase (but not less than zero) in the consumer price index-u
6for the 12 months ending with the September preceding each
7November 1 for the preceding calendar year, whichever is less,
8of the originally granted survivor's annuity. If the annual
9unadjusted percentage change increase in the consumer price
10index-u for the 12 months ending with the September preceding
11each November 1 calendar year is zero or there is a decrease,
12then the annuity shall not be increased.
13    (g) The benefits in Section 14-110 apply only if the person
14is a State policeman, a fire fighter in the fire protection
15service of a department, or a security employee of the
16Department of Corrections or the Department of Juvenile
17Justice, as those terms are defined in subsection (b) of
18Section 14-110. A person who meets the requirements of this
19Section is entitled to an annuity calculated under the
20provisions of Section 14-110, in lieu of the regular or minimum
21retirement annuity, only if the person has withdrawn from
22service with not less than 20 years of eligible creditable
23service and has attained age 60, regardless of whether the
24attainment of age 60 occurs while the person is still in
25service.
26    (h) If a person who first becomes a member or a participant

 

 

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1of a retirement system or pension fund subject to this Section
2on or after January 1, 2011 the effective date of this
3amendatory Act of the 96th General Assembly is receiving a
4retirement annuity or retirement pension under that system or
5fund and becomes a member or participant under accepts
6employment in a position covered under the same Article or any
7other system or fund created by Article of this Code and is
8employed on a full-time basis, except for those members or
9participants exempted from the provisions of this Section under
10subsection (a) of this Section, then the person's retirement
11annuity or retirement pension under that system or fund shall
12be suspended during that employment. Upon termination of that
13employment, the person's retirement annuity or retirement
14pension payments shall resume and, if appropriate, be
15recalculated if recalculation is provided for under the
16applicable Article provisions of this Code.
17    (i) Notwithstanding any other provision of this Section, a
18person who first becomes a participant of the retirement system
19established under Article 15 on or after January 1, 2011 the
20effective date of this amendatory Act of the 96th General
21Assembly shall have the option to enroll in the self-managed
22plan created under Section 15-158.2 of this Code.
23    (j) In the case of a conflict between the provisions of
24this Section and any other provision of this Code, the
25provisions of this Section shall control.
26(Source: P.A. 96-889, eff. 1-1-11.)
 

 

 

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1    (40 ILCS 5/2-108.1)  (from Ch. 108 1/2, par. 2-108.1)
2    (Text of Section after amendment by P.A. 96-889)
3    Sec. 2-108.1. Highest salary for annuity purposes.
4    (a) "Highest salary for annuity purposes" means whichever
5of the following is applicable to the participant:
6    For a participant who first becomes a participant of this
7System before August 10, 2009 (the effective date of Public Act
896-207):
9        (1) For a participant who is a member of the General
10    Assembly on his or her last day of service: the highest
11    salary that is prescribed by law, on the participant's last
12    day of service, for a member of the General Assembly who is
13    not an officer; plus, if the participant was elected or
14    appointed to serve as an officer of the General Assembly
15    for 2 or more years and has made contributions as required
16    under subsection (d) of Section 2-126, the highest
17    additional amount of compensation prescribed by law, at the
18    time of the participant's service as an officer, for
19    members of the General Assembly who serve in that office.
20        (2) For a participant who holds one of the State
21    executive offices specified in Section 2-105 on his or her
22    last day of service: the highest salary prescribed by law
23    for service in that office on the participant's last day of
24    service.
25        (3) For a participant who is Clerk or Assistant Clerk

 

 

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1    of the House of Representatives or Secretary or Assistant
2    Secretary of the Senate on his or her last day of service:
3    the salary received for service in that capacity on the
4    last day of service, but not to exceed the highest salary
5    (including additional compensation for service as an
6    officer) that is prescribed by law on the participant's
7    last day of service for the highest paid officer of the
8    General Assembly.
9        (4) For a participant who is a continuing participant
10    under Section 2-117.1 on his or her last day of service:
11    the salary received for service in that capacity on the
12    last day of service, but not to exceed the highest salary
13    (including additional compensation for service as an
14    officer) that is prescribed by law on the participant's
15    last day of service for the highest paid officer of the
16    General Assembly.
17    For a participant who first becomes a participant of this
18System on or after August 10, 2009 (the effective date of
19Public Act 96-207) and before January 1, 2011 (the effective
20date of Public Act 96-889) this amendatory Act of the 96th
21General Assembly, the average monthly salary obtained by
22dividing the total salary of the participant during the period
23of: (1) the 48 consecutive months of service within the last
24120 months of service in which the total compensation was the
25highest, or (2) the total period of service, if less than 48
26months, by the number of months of service in that period.

 

 

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1    For a participant who first becomes a participant of this
2System on or after January 1, 2011 (the effective date of
3Public Act 96-889) this amendatory Act of the 96th General
4Assembly, the average monthly salary obtained by dividing the
5total salary of the participant during the 96 consecutive
6months of service within the last 120 months of service in
7which the total compensation was the highest by the number of
8months of service in that period; however, beginning January 1,
92011, the highest salary for annuity purposes may not exceed
10$106,800, except that that amount shall annually thereafter be
11increased by the lesser of (i) 3% of that amount, including all
12previous adjustments, or (ii) the annual unadjusted percentage
13increase (but not less than zero) the Social Security Covered
14Wage Base for 2010, and shall automatically be increased or
15decreased, as applicable, by a percentage equal to the
16percentage change in the consumer price index-u for the 12
17months ending with the September preceding each November 1
18during the preceding 12-month calendar year. "Consumer price
19index-u" means the index published by the Bureau of Labor
20Statistics of the United States Department of Labor that
21measures the average change in prices of goods and services
22purchased by all urban consumers, United States city average,
23all items, 1982-84 = 100. The new amount resulting from each
24annual adjustment shall be determined by the Public Pension
25Division of the Department of Insurance and made available to
26the Board by November 1 of each year.

 

 

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1    (b) The earnings limitations of subsection (a) apply to
2earnings under any other participating system under the
3Retirement Systems Reciprocal Act that are considered in
4calculating a proportional annuity under this Article, except
5in the case of a person who first became a member of this
6System before August 22, 1994.
7    (c) In calculating the subsection (a) earnings limitation
8to be applied to earnings under any other participating system
9under the Retirement Systems Reciprocal Act for the purpose of
10calculating a proportional annuity under this Article, the
11participant's last day of service shall be deemed to mean the
12last day of service in any participating system from which the
13person has applied for a proportional annuity under the
14Retirement Systems Reciprocal Act.
15(Source: P.A. 96-207, eff. 8-10-09; 96-889, eff. 1-1-11.)
 
16    (40 ILCS 5/2-119)  (from Ch. 108 1/2, par. 2-119)
17    (Text of Section after amendment by P.A. 96-889)
18    Sec. 2-119. Retirement annuity - conditions for
19eligibility.
20    (a) A participant whose service as a member is terminated,
21regardless of age or cause, is entitled to a retirement annuity
22beginning on the date specified by the participant in a written
23application subject to the following conditions:
24        1. The date the annuity begins does not precede the
25    date of final termination of service, or is not more than

 

 

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1    30 days before the receipt of the application by the board
2    in the case of annuities based on disability or one year
3    before the receipt of the application in the case of
4    annuities based on attained age;
5        2. The participant meets one of the following
6    eligibility requirements:
7        For a participant who first becomes a participant of
8    this System before January 1, 2011 (the effective date of
9    Public Act 96-889) this amendatory Act of the 96th General
10    Assembly:
11            (A) He or she has attained age 55 and has at least
12        8 years of service credit;
13            (B) He or she has attained age 62 and terminated
14        service after July 1, 1971 with at least 4 years of
15        service credit; or
16            (C) He or she has completed 8 years of service and
17        has become permanently disabled and as a consequence,
18        is unable to perform the duties of his or her office.
19        For a participant who first becomes a participant of
20    this System on or after January 1, 2011 (the effective date
21    of Public Act 96-889) this amendatory Act of the 96th
22    General Assembly, he or she has attained age 67 and has at
23    least 8 years of service credit.
24    (a-5) A participant who first becomes a participant of this
25System on or after January 1, 2011 (the effective date of
26Public Act 96-889) this amendatory Act of the 96th General

 

 

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1Assembly who has attained age 62 and has at least 8 years of
2service credit may elect to receive the lower retirement
3annuity provided in paragraph (c) of Section 2-119.01 of this
4Code.
5    (b) A participant shall be considered permanently disabled
6only if: (1) disability occurs while in service and is of such
7a nature as to prevent him or her from reasonably performing
8the duties of his or her office at the time; and (2) the board
9has received a written certificate by at least 2 licensed
10physicians appointed by the board stating that the member is
11disabled and that the disability is likely to be permanent.
12(Source: P.A. 96-889, eff. 1-1-11.)
 
13    (40 ILCS 5/2-119.01)  (from Ch. 108 1/2, par. 2-119.01)
14    (Text of Section after amendment by P.A. 96-889)
15    Sec. 2-119.01. Retirement annuities - Amount.
16    (a) For a participant in service after June 30, 1977 who
17has not made contributions to this System after January 1,
181982, the annual retirement annuity is 3% for each of the first
198 years of service, plus 4% for each of the next 4 years of
20service, plus 5% for each year of service in excess of 12
21years, based on the participant's highest salary for annuity
22purposes. The maximum retirement annuity payable shall be 80%
23of the participant's highest salary for annuity purposes.
24    (b) For a participant in service after June 30, 1977 who
25has made contributions to this System on or after January 1,

 

 

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11982, the annual retirement annuity is 3% for each of the first
24 years of service, plus 3 1/2% for each of the next 2 years of
3service, plus 4% for each of the next 2 years of service, plus
44 1/2% for each of the next 4 years of service, plus 5% for each
5year of service in excess of 12 years, of the participant's
6highest salary for annuity purposes. The maximum retirement
7annuity payable shall be 85% of the participant's highest
8salary for annuity purposes.
9    (c) Notwithstanding any other provision of this Article,
10for a participant who first becomes a participant on or after
11January 1, 2011 (the effective date of Public Act 96-889) this
12amendatory Act of the 96th General Assembly, the annual
13retirement annuity is 3% of the participant's highest salary
14for annuity purposes for each year of service. The maximum
15retirement annuity payable shall be 60% of the participant's
16highest salary for annuity purposes.
17    (d) Notwithstanding any other provision of this Article,
18for a participant who first becomes a participant on or after
19January 1, 2011 (the effective date of Public Act 96-889) this
20amendatory Act of the 96th General Assembly and who is retiring
21after attaining age 62 with at least 8 years of service credit,
22the retirement annuity shall be reduced by one-half of 1% for
23each month that the member's age is under age 67.
24(Source: P.A. 96-889, eff. 1-1-11.)
 
25    (40 ILCS 5/2-119.1)  (from Ch. 108 1/2, par. 2-119.1)

 

 

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1    (Text of Section after amendment by P.A. 96-889)
2    Sec. 2-119.1. Automatic increase in retirement annuity.
3    (a) A participant who retires after June 30, 1967, and who
4has not received an initial increase under this Section before
5the effective date of this amendatory Act of 1991, shall, in
6January or July next following the first anniversary of
7retirement, whichever occurs first, and in the same month of
8each year thereafter, but in no event prior to age 60, have the
9amount of the originally granted retirement annuity increased
10as follows: for each year through 1971, 1 1/2%; for each year
11from 1972 through 1979, 2%; and for 1980 and each year
12thereafter, 3%. Annuitants who have received an initial
13increase under this subsection prior to the effective date of
14this amendatory Act of 1991 shall continue to receive their
15annual increases in the same month as the initial increase.
16    (b) Beginning January 1, 1990, for eligible participants
17who remain in service after attaining 20 years of creditable
18service, the 3% increases provided under subsection (a) shall
19begin to accrue on the January 1 next following the date upon
20which the participant (1) attains age 55, or (2) attains 20
21years of creditable service, whichever occurs later, and shall
22continue to accrue while the participant remains in service;
23such increases shall become payable on January 1 or July 1,
24whichever occurs first, next following the first anniversary of
25retirement. For any person who has service credit in the System
26for the entire period from January 15, 1969 through December

 

 

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131, 1992, regardless of the date of termination of service, the
2reference to age 55 in clause (1) of this subsection (b) shall
3be deemed to mean age 50.
4    This subsection (b) does not apply to any person who first
5becomes a member of the System after the effective date of this
6amendatory Act of the 93rd General Assembly.
7    (b-5) Notwithstanding any other provision of this Article,
8a participant who first becomes a participant on or after
9January 1, 2011 (the effective date of Public Act 96-889) this
10amendatory Act of the 96th General Assembly shall, in January
11or July next following the first anniversary of retirement,
12whichever occurs first, and in the same month of each year
13thereafter, but in no event prior to age 67, have the amount of
14the retirement annuity then being paid increased by 3% or the
15annual unadjusted percentage increase change in the Consumer
16Price Index for All Urban Consumers as determined by the Public
17Pension Division of the Department of Insurance under
18subsection (a) of Section 2-108.1, whichever is less.
19    (c) The foregoing provisions relating to automatic
20increases are not applicable to a participant who retires
21before having made contributions (at the rate prescribed in
22Section 2-126) for automatic increases for less than the
23equivalent of one full year. However, in order to be eligible
24for the automatic increases, such a participant may make
25arrangements to pay to the system the amount required to bring
26the total contributions for the automatic increase to the

 

 

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1equivalent of one year's contributions based upon his or her
2last salary.
3    (d) A participant who terminated service prior to July 1,
41967, with at least 14 years of service is entitled to an
5increase in retirement annuity beginning January, 1976, and to
6additional increases in January of each year thereafter.
7    The initial increase shall be 1 1/2% of the originally
8granted retirement annuity multiplied by the number of full
9years that the annuitant was in receipt of such annuity prior
10to January 1, 1972, plus 2% of the originally granted
11retirement annuity for each year after that date. The
12subsequent annual increases shall be at the rate of 2% of the
13originally granted retirement annuity for each year through
141979 and at the rate of 3% for 1980 and thereafter.
15    (e) Beginning January 1, 1990, all automatic annual
16increases payable under this Section shall be calculated as a
17percentage of the total annuity payable at the time of the
18increase, including previous increases granted under this
19Article.
20(Source: P.A. 96-889, eff. 1-1-11.)
 
21    (40 ILCS 5/2-121.1)  (from Ch. 108 1/2, par. 2-121.1)
22    (Text of Section after amendment by P.A. 96-889)
23    Sec. 2-121.1. Survivor's annuity - amount.
24    (a) A surviving spouse shall be entitled to 66 2/3% of the
25amount of retirement annuity to which the participant or

 

 

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1annuitant was entitled on the date of death, without regard to
2whether the participant had attained age 55 prior to his or her
3death, subject to a minimum payment of 10% of salary. If a
4surviving spouse, regardless of age, has in his or her care at
5the date of death any eligible child or children of the
6participant, the survivor's annuity shall be the greater of the
7following: (1) 66 2/3% of the amount of retirement annuity to
8which the participant or annuitant was entitled on the date of
9death, or (2) 30% of the participant's salary increased by 10%
10of salary on account of each such child, subject to a total
11payment for the surviving spouse and children of 50% of salary.
12If eligible children survive but there is no surviving spouse,
13or if the surviving spouse dies or becomes disqualified by
14remarriage while eligible children survive, each eligible
15child shall be entitled to an annuity of 20% of salary, subject
16to a maximum total payment for all such children of 50% of
17salary.
18    However, the survivor's annuity payable under this Section
19shall not be less than 100% of the amount of retirement annuity
20to which the participant or annuitant was entitled on the date
21of death, if he or she is survived by a dependent disabled
22child.
23    The salary to be used for determining these benefits shall
24be the salary used for determining the amount of retirement
25annuity as provided in Section 2-119.01.
26    (b) Upon the death of a participant after the termination

 

 

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1of service or upon death of an annuitant, the maximum total
2payment to a surviving spouse and eligible children, or to
3eligible children alone if there is no surviving spouse, shall
4be 75% of the retirement annuity to which the participant or
5annuitant was entitled, unless there is a dependent disabled
6child among the survivors.
7    (c) When a child ceases to be an eligible child, the
8annuity to that child, or to the surviving spouse on account of
9that child, shall thereupon cease, and the annuity payable to
10the surviving spouse or other eligible children shall be
11recalculated if necessary.
12    Upon the ineligibility of the last eligible child, the
13annuity shall immediately revert to the amount payable upon
14death of a participant or annuitant who leaves no eligible
15children. If the surviving spouse is then under age 50, the
16annuity as revised shall be deferred until the attainment of
17age 50.
18    (d) Beginning January 1, 1990, every survivor's annuity
19shall be increased (1) on each January 1 occurring on or after
20the commencement of the annuity if the deceased member died
21while receiving a retirement annuity, or (2) in other cases, on
22each January 1 occurring on or after the first anniversary of
23the commencement of the annuity, by an amount equal to 3% of
24the current amount of the annuity, including any previous
25increases under this Article. Such increases shall apply
26without regard to whether the deceased member was in service on

 

 

09600SB0550ham002- 20 -LRB096 06603 JDS 44071 a

1or after the effective date of this amendatory Act of 1991, but
2shall not accrue for any period prior to January 1, 1990.
3    (d-5) Notwithstanding any other provision of this Article,
4the initial survivor's annuity of a survivor of a participant
5who first becomes a participant on or after January 1, 2011
6(the effective date of Public Act 96-889) this amendatory Act
7of the 96th General Assembly shall be in the amount of 66 2/3%
8of the amount of the retirement annuity to which the
9participant or annuitant was entitled on the date of death and
10shall be increased (1) on each January 1 occurring on or after
11the commencement of the annuity if the deceased member died
12while receiving a retirement annuity or (2) in other cases, on
13each January 1 occurring on or after the first anniversary of
14the commencement of the annuity, by an amount equal to 3% or
15the annual unadjusted percentage increase change in the
16Consumer Price Index for All Urban Consumers as determined by
17the Public Pension Division of the Department of Insurance
18under subsection (a) of Section 2-108.1, whichever is less, of
19the survivor's annuity then being paid.
20    (e) Notwithstanding any other provision of this Article,
21beginning January 1, 1990, the minimum survivor's annuity
22payable to any person who is entitled to receive a survivor's
23annuity under this Article shall be $300 per month, without
24regard to whether or not the deceased participant was in
25service on the effective date of this amendatory Act of 1989.
26    (f) In the case of a proportional survivor's annuity

 

 

09600SB0550ham002- 21 -LRB096 06603 JDS 44071 a

1arising under the Retirement Systems Reciprocal Act where the
2amount payable by the System on January 1, 1993 is less than
3$300 per month, the amount payable by the System shall be
4increased beginning on that date by a monthly amount equal to
5$2 for each full year that has expired since the annuity began.
6(Source: P.A. 96-889, eff. 1-1-11.)
 
7    (40 ILCS 5/2-122)  (from Ch. 108 1/2, par. 2-122)
8    (Text of Section after amendment by P.A. 96-889)
9    Sec. 2-122. Re-entry after retirement. An annuitant who
10re-enters service as a member shall become a participant on the
11date of re-entry and retirement annuity payments shall cease at
12that time. The participant shall resume contributions to the
13system on the date of re-entry at the rates then in effect and
14shall begin to accrue additional service credit. He or she
15shall be entitled to all rights and privileges in the system,
16including death and disability benefits, subject to the
17limitations herein provided, except refund of retirement
18annuity contributions.
19    Upon subsequent retirement, the participant shall be
20entitled to a retirement annuity consisting of: (1) the amount
21of retirement annuity previously granted and terminated by
22re-entry into service; and (2) the amount of additional
23retirement annuity earned during the additional service based
24on the provisions in effect at the date of such subsequent
25retirement. However, the total retirement annuity shall not

 

 

09600SB0550ham002- 22 -LRB096 06603 JDS 44071 a

1exceed the maximum retirement annuity applicable at the date of
2the participant's last retirement. If the salary of the
3participant following the latest re-entry into service is
4higher than that in effect at the date of the previous
5retirement and the participant restores to the system all
6amounts previously received as retirement annuity payments,
7upon subsequent retirement, the retirement annuity shall be
8recalculated for all service credited under the system as
9though the participant had not previously retired.
10    The repayment of retirement annuity payments must be made
11by the participant in a single sum or by a withholding from
12salary within a period of 6 years from date of re-entry and in
13any event before subsequent retirement. If previous annuity
14payments have not been repaid to the system at the date of
15death of the participant, any remaining balance must be fully
16repaid to the system before any further annuity shall be
17payable.
18    Such member, if unmarried at date of his last retirement,
19shall also be entitled to a refund of widow's and widower's
20annuity contributions, without interest, covering the period
21from the date of re-entry into service to the date of last
22retirement.
23    Notwithstanding any other provision of this Article, if a
24person who first becomes a participant under this System on or
25after January 1, 2011 (the effective date of Public Act 96-889)
26this amendatory Act of the 96th General Assembly is receiving a

 

 

09600SB0550ham002- 23 -LRB096 06603 JDS 44071 a

1retirement annuity under this Article and becomes a member or
2participant accepts employment in a position covered under this
3Article or any other Article of this Code and is employed on a
4full-time basis, then the person's retirement annuity under
5this System shall be suspended during that employment. Upon
6termination of that employment, the person's retirement
7annuity shall resume and, if appropriate, be recalculated under
8the applicable provisions of this Article.
9(Source: P.A. 96-889, eff. 1-1-11.)
 
10    (40 ILCS 5/2-126)  (from Ch. 108 1/2, par. 2-126)
11    Sec. 2-126. Contributions by participants.
12    (a) Each participant shall contribute toward the cost of
13his or her retirement annuity a percentage of each payment of
14salary received by him or her for service as a member as
15follows: for service between October 31, 1947 and January 1,
161959, 5%; for service between January 1, 1959 and June 30,
171969, 6%; for service between July 1, 1969 and January 10,
181973, 6 1/2%; for service after January 10, 1973, 7%; for
19service after December 31, 1981, 8 1/2%.
20    (b) Beginning August 2, 1949, each male participant, and
21from July 1, 1971, each female participant shall contribute
22towards the cost of the survivor's annuity 2% of salary.
23    A participant who has no eligible survivor's annuity
24beneficiary may elect to cease making contributions for
25survivor's annuity under this subsection. A survivor's annuity

 

 

09600SB0550ham002- 24 -LRB096 06603 JDS 44071 a

1shall not be payable upon the death of a person who has made
2this election, unless prior to that death the election has been
3revoked and the amount of the contributions that would have
4been paid under this subsection in the absence of the election
5is paid to the System, together with interest at the rate of 4%
6per year from the date the contributions would have been made
7to the date of payment.
8    (c) Beginning July 1, 1967, each participant shall
9contribute 1% of salary towards the cost of automatic increase
10in annuity provided in Section 2-119.1. These contributions
11shall be made concurrently with contributions for retirement
12annuity purposes.
13    (d) In addition, each participant serving as an officer of
14the General Assembly shall contribute, for the same purposes
15and at the same rates as are required of a regular participant,
16on each additional payment received as an officer. If the
17participant serves as an officer for at least 2 but less than 4
18years, he or she shall contribute an amount equal to the amount
19that would have been contributed had the participant served as
20an officer for 4 years. Persons who serve as officers in the
2187th General Assembly but cannot receive the additional payment
22to officers because of the ban on increases in salary during
23their terms may nonetheless make contributions based on those
24additional payments for the purpose of having the additional
25payments included in their highest salary for annuity purposes;
26however, persons electing to make these additional

 

 

09600SB0550ham002- 25 -LRB096 06603 JDS 44071 a

1contributions must also pay an amount representing the
2corresponding employer contributions, as calculated by the
3System.
4    (e) Notwithstanding any other provision of this Article,
5the required contribution of a participant who first becomes a
6participant on or after January 1, 2011 shall not exceed the
7contribution that would be due under this Article if that
8participant's highest salary for annuity purposes were
9$106,800, plus any increases in that amount under Section
102-108.1.
11(Source: P.A. 90-766, eff. 8-14-98.)
 
12    (40 ILCS 5/8-168)  (from Ch. 108 1/2, par. 8-168)
13    Sec. 8-168. Refunds - Withdrawal before age 55 or age 62 or
14with less than 10 years of service.
15    1. An employee who first became a member before January 1,
162011, without regard to length of service, who withdraws before
17age 55, and any employee with less than 10 years of service who
18withdraws before age 60, shall be entitled to a refund of the
19accumulated sums to his credit, as of the date of withdrawal,
20for age and service annuity and widow's annuity from amounts
21contributed by him, including interest credited and including
22amounts contributed for him for age and service and widow's
23annuity purposes by the city while receiving duty disability
24benefits; provided that such amounts contributed by the city
25after December 31, 1981, while the employee is receiving duty

 

 

09600SB0550ham002- 26 -LRB096 06603 JDS 44071 a

1disability benefits, and amounts credited to the employee for
2annuity purposes by the fund after December 31, 2000, while the
3employee is receiving ordinary disability benefits, shall not
4be credited for refund purposes. If he is a present employee he
5shall also be entitled to a refund of the accumulations from
6any sums contributed by him, and applied to any municipal
7pension fund superseded by this fund.
8    An employee who first becomes a member on or after January
91, 2011 who withdraws before age 62 without regard to length of
10service, or who withdraws with less than 10 years of service
11regardless of age, shall be entitled to a refund of the total
12sum accumulated to his credit as of date of withdrawal for age
13and service annuity and widow's annuity provided that such
14amounts contributed by the city while the employee is receiving
15duty disability benefits and amounts credited to the employee
16for annuity purposes by the fund while the employee is
17receiving ordinary disability benefits shall not be credited
18for refund purposes.
19    2. Upon receipt of the refund, the employee surrenders and
20forfeits all rights to any annuity or other benefits, for
21himself and for any other persons who might have benefited
22through him; provided that he may have such period of service
23counted in computing the term of his service if he becomes an
24employee before age 65, excepting as limited by the provisions
25of paragraph (a) (3) of Section 8-232 of this Article relating
26to the basis of computing the term of service.

 

 

09600SB0550ham002- 27 -LRB096 06603 JDS 44071 a

1    3. Any such employee shall retain such right to a refund of
2such amounts when he shall apply for same until he re-enters
3the service or until the amount of annuity shall have been
4fixed as provided in this Article. Thereafter, no such right
5shall exist in the case of any such employee.
6    4. Any such municipal employee who shall have served 10 or
7more years and who shall not withdraw the amounts aforesaid to
8which he shall have a right of refund shall have a right to
9annuity as stated in this Article.
10    5. Any such municipal employee who shall have served less
11than 10 years and who shall not withdraw the amounts to which
12he shall have a right to refund shall have a right to have all
13such amounts and all other amounts to his credit for annuity
14purposes on date of his withdrawal from service retained to his
15credit and improved by interest while he shall be out of the
16service at the rate of 3 1/2% or 3% per annum (whichever rate
17shall apply under the provisions of Section 8-155 of this
18Article) and used for annuity purposes for his benefit and the
19benefit of any person who may have any right to annuity through
20him because of his service, according to the provisions of this
21Article in the event that he shall subsequently re-enter the
22service and complete the number of years of service necessary
23to attain a right to annuity; but such sum shall be improved by
24interest to his credit while he shall be out of the service
25only until he shall have become 65 years of age.
26(Source: P.A. 92-599, eff. 6-28-02.)
 

 

 

09600SB0550ham002- 28 -LRB096 06603 JDS 44071 a

1    (40 ILCS 5/9-164)  (from Ch. 108 1/2, par. 9-164)
2    Sec. 9-164. Refunds - Withdrawal before age 55 or with less
3than 10 years of service.
4    (1) An employee, without regard to length of service, who
5withdraws before age 55 (age 62 for an employee who first
6becomes a member on or after January 1, 2011), and any employee
7with less than 10 years of service who withdraws before age 60,
8and any employee who first becomes a member on or after January
91, 2011 who withdraws with less than 10 years of service, shall
10be entitled to a refund of the total sums accumulated to his
11credit as of date of withdrawal for age and service annuity and
12widow's annuity resulting from amounts contributed by him or by
13the county in lieu of employee contributions during duty
14disability. If he is a present employee he shall also be
15entitled to a refund of the total sum accumulated from any sums
16contributed by him and applied to any county pension fund
17superseded by this fund. An employee withdrawing on or after
18January 1, 1984 may receive a refund only after he has been off
19the payroll for at least 30 days during which time he has
20received no salary.
21    (2) Upon receipt of the refund, the employee surrenders and
22forfeits all rights to any annuity or other benefits for
23himself and for any other persons who might have benefited
24through him; provided that he may have any such period of
25service counted in computing the term of his service - for age

 

 

09600SB0550ham002- 29 -LRB096 06603 JDS 44071 a

1and service annuity purposes only - if he becomes an employee
2before age 65, excepting as limited by the provisions of this
3Article relating to the basis of computing the term of service.
4    (3) An employee who does not receive a refund shall have
5all amounts to his credit for annuity purposes on the date of
6his withdrawal improved by interest only until he becomes 65
7while out of service at the effective rate for his benefit and
8the benefit of any person who may have any right to annuity
9through him if he re-enters service and attains a right to
10annuity.
11    (4) Any such employee shall retain such right to a refund
12of such amounts when he shall apply for same until he re-enters
13the service or until the amount of annuity shall have been
14fixed as provided in this Article. Thereafter, no such right
15shall exist in the case of any such employee.
16(Source: P.A. 83-869.)
 
17    (40 ILCS 5/9-220)  (from Ch. 108 1/2, par. 9-220)
18    Sec. 9-220. Basis of service credit.
19    (a) In computing the period of service of any employee for
20annuity purposes under Section 9-134, the following provisions
21shall govern:
22        (1) All periods prior to the effective date shall be
23    computed in accordance with the provisions governing the
24    computation of such service.
25        (2) Service on or after the effective date shall

 

 

09600SB0550ham002- 30 -LRB096 06603 JDS 44071 a

1    include:
2            (i) The actual period of time the employee
3        contributes or has contributed to the fund for service
4        rendered to age 65 plus the actual period of time after
5        age 65 for which the employee performs the duties of
6        his position or performs such duties and is given a
7        county contribution for age and service annuity or
8        minimum annuity purposes.
9            (ii) Leaves of absence from duty, or vacation, for
10        which an employee receives all or part of his salary.
11            (iii) Accumulated vacation or other time for which
12        an employee who retires on or after November 1, 1990
13        receives a lump sum payment at the time of retirement,
14        provided that contributions were made to the fund at
15        the time such lump sum payment was received. The
16        service granted for the lump sum payment shall not
17        change the employee's date of withdrawal for computing
18        the effective date of the annuity.
19            (iv) Accumulated sick leave as of the date of the
20        employee's withdrawal from service, not to exceed a
21        total of 180 days, provided that the amount of such
22        accumulated sick leave is certified by the County
23        Comptroller to the Board and the employee pays an
24        amount equal to 8.5% (9% for members of the County
25        Police Department who are eligible to receive an
26        annuity under Section 9-128.1) of the amount that would

 

 

09600SB0550ham002- 31 -LRB096 06603 JDS 44071 a

1        have been paid had such accumulated sick leave been
2        paid at the employee's final rate of salary. Such
3        payment shall be made within 30 days after the date of
4        withdrawal and prior to receipt of the first annuity
5        check. The service credit granted for such accumulated
6        sick leave shall not change the employee's date of
7        withdrawal for the purpose of computing the effective
8        date of the annuity.
9            (v) Periods during which the employee has had
10        contributions for annuity purposes made for him in
11        accordance with law while on military leave of absence
12        during World War II.
13            (vi) Periods during which the employee receives a
14        disability benefit under this Article.
15            (vii) For any person who first becomes a member on
16        or after January 1, 2011, the actual period of time the
17        employee contributes or has contributed to the fund for
18        service rendered up to the limitation on salary in
19        subsection (b-5) of Section 1-160 plus the actual
20        period of time thereafter for which the employee
21        performs the duties of his position and ceased
22        contributing due to the salary limitation in
23        subsection (b-5) of Section 1-160.
24        (3) The right to have certain periods of time
25    considered as service as stated in paragraph (2) of Section
26    9-164 shall not apply for annuity purposes unless the

 

 

09600SB0550ham002- 32 -LRB096 06603 JDS 44071 a

1    refunds shall have been repaid in accordance with this
2    Article.
3        (4) All service shall be computed in whole calendar
4    months, and at least 15 days of service in any one calendar
5    month shall constitute one calendar month of service, and 1
6    year of service shall be equal to the number of months,
7    days or hours for which an appropriation was made in the
8    annual appropriation ordinance for the position held by the
9    employee.
10    (b) For all other annuity purposes of this Article the
11following schedule shall govern the computation of a year of
12service of an employee whose salary or wages is on the basis
13stated, and any fractional part of a year of service shall be
14determined according to said schedule:
15    Annual or Monthly Basis: Service during 4 months in any 1
16calendar year;
17    Weekly Basis: Service during any 17 weeks of any 1 calendar
18year, and service during any week shall constitute a week of
19service;
20    Daily Basis: Service during 100 days in any 1 calendar
21year, and service during any day shall constitute a day of
22service;
23    Hourly Basis: Service during 800 hours in any 1 calendar
24year, and service during any hour shall constitute an hour of
25service.
26(Source: P.A. 86-1488; 87-794.)
 

 

 

09600SB0550ham002- 33 -LRB096 06603 JDS 44071 a

1    (40 ILCS 5/11-164)  (from Ch. 108 1/2, par. 11-164)
2    Sec. 11-164. Refunds - Withdrawal before age 55 or age 62
3or with less than 10 years of service.
4    (1) An employee who first became a member before January 1,
52011, without regard to length of service, who withdraws before
6age 55, and any employee with less than 10 years of service who
7withdraws before age 60, shall be entitled to a refund of the
8total sum accumulated to his credit as of date of withdrawal
9for age and service annuity and widow's annuity from amounts
10contributed by him or by the City in lieu of employee
11contributions during duty disability; provided that such
12amounts contributed by the city after December 31, 1983 while
13the employee is receiving duty disability benefits and amounts
14credited to the employee for annuity purposes by the fund after
15December 31, 2000 while the employee is receiving ordinary
16disability benefits shall not be credited for refund purposes.
17    An employee who first becomes a member on or after January
181, 2011 who withdraws before age 62 without regard to length of
19service, or who withdraws with less than 10 years of service
20regardless of age, shall be entitled to a refund of the total
21sum accumulated to his credit as of date of withdrawal for age
22and service annuity and widow's annuity provided that such
23amounts contributed by the city while the employee is receiving
24duty disability benefits and amounts credited to the employee
25for annuity purposes by the fund while the employee is

 

 

09600SB0550ham002- 34 -LRB096 06603 JDS 44071 a

1receiving ordinary disability benefits shall not be credited
2for refund purposes.
3    The board may in its discretion withhold payment of refund
4for a period not to exceed 6 months from the date of
5withdrawal. Interest at the effective rate shall be paid on any
6such refund withheld during such withheld period not to exceed
76 months.
8    (2) Upon receipt of the refund, the employee surrenders and
9forfeits all rights to any annuity or other benefits, for
10himself and for any other persons who might have benefited
11through him; provided that he may have such period of service
12counted in computing the term of his service for age and
13service annuity purposes only if he becomes an employee before
14age 65.
15    (3) An employee who does not receive a refund shall have
16all amounts to his credit for annuity purposes on the date of
17his withdrawal improved by interest only until he becomes age
1865, while out of service, at the effective rate, for his
19benefit and the benefit of any person who may have any right to
20annuity through him if he re-enters the service and attains a
21right to annuity.
22    (4) Any such employee shall retain such right to refund of
23such amounts when he shall apply for same, until he re-enters
24the service or until the amount of annuity to which he shall
25have a right shall have been fixed as provided in this Article.
26Thereafter, no such right shall exist in the case of any such

 

 

09600SB0550ham002- 35 -LRB096 06603 JDS 44071 a

1employee.
2(Source: P.A. 92-599, eff. 6-28-02.)
 
3    (40 ILCS 5/13-601)  (from Ch. 108 1/2, par. 13-601)
4    Sec. 13-601. Refunds.
5    (a) Withdrawal from service. Upon withdrawal from service,
6an employee who first became a member before January 1, 2011,
7who is under age 55 (age 50 if the employee first entered
8service before June 13, 1997), or an employee age 55 (age 50 if
9the employee first entered service before June 13, 1997) or
10over but less than age 60 having less than 20 years of service,
11or an employee age 60 or over having less than 5 years of
12service shall be entitled, upon application, to a refund of
13total contributions from salary deductions or amounts
14otherwise paid under this Article by the employee. An employee
15who first becomes a member on or after January 1, 2011, who
16withdraws before age 62 regardless of length of service, or who
17withdraws with less than 10 years of service regardless of age
18is entitled to a refund of total contributions from salary
19deductions or amounts otherwise paid under this Article by the
20employee. The refund shall not include interest credited to the
21contributions. The Board may, in its discretion, withhold
22payment of a refund for a period not to exceed one year from
23the date of filing an application for refund.
24    (b) Surviving spouse's annuity contributions. A refund of
25all amounts deducted from salary or otherwise contributed by an

 

 

09600SB0550ham002- 36 -LRB096 06603 JDS 44071 a

1employee for the surviving spouse's annuity shall be paid upon
2retirement to any employee who on the date of retirement is
3either not married or is married but whose spouse is not
4eligible for a surviving spouse's annuity paid wholly or in
5part under this Article. The refund shall include interest on
6each contribution at the rate of 3% per annum compounded
7annually from the date of the contribution to the date of the
8refund.
9    (c) Payment of Refunds After Death. Whenever any refund is
10payable after the death of the employee or annuitant as
11provided for in this Article, the refund shall be paid as
12follows: to the employee's surviving spouse, but if there is no
13surviving spouse then in accordance with the employee's written
14designation of beneficiary filed with the Board on the
15prescribed form before the employee's death. If there is no
16such designation of beneficiary, then to the employee's
17surviving children in equal parts to each. If there are no such
18children, the refund shall be paid to the heirs of the employee
19according to the law of descent and distribution of the State
20of Illinois.
21    If a personal representative of the estate has not been
22appointed within 90 days from the date on which a refund became
23payable, the refund may be applied, in the discretion of the
24Board, toward the payment of the employee's or the surviving
25spouse's burial expenses. Any remaining balance shall be paid
26to the heirs of the employee according to the law of descent

 

 

09600SB0550ham002- 37 -LRB096 06603 JDS 44071 a

1and distribution of the State of Illinois.
2    Whenever the total accumulations to the account of an
3employee from employee contributions other than the
4contribution for the cost of living increase, including
5interest to the employee's date of withdrawal, have not been
6paid to the employee and surviving spouse as a retirement or
7spouse's annuity before the death of the employee and spouse, a
8refund shall be paid as follows: an amount equal to the excess
9of such amounts over the amounts paid on such annuities without
10interest on either such amount.
11    If a reversionary annuity becomes payable under Section
1213-303, the refund provided in this section shall not be paid
13until the death of the reversionary annuitant and the refund
14otherwise payable under this section shall be then further
15reduced by the amount of the reversionary annuity paid.
16    (d) In lieu of annuity. Notwithstanding the provisions set
17forth in subsection (a) of this section, whenever an employee's
18or surviving spouse's annuity will be less than $200 per month,
19the employee or surviving spouse, as the case may be, may elect
20to receive a refund of accumulated employee contributions;
21provided, however, that if the election is made by a surviving
22spouse the refund shall be reduced by any amounts theretofore
23paid to the employee in the form of an annuity.
24    (e) Forfeiture of rights. An employee or surviving spouse
25who receives a refund forfeits the right to receive an annuity
26or any other benefit payable under this Article except that if

 

 

09600SB0550ham002- 38 -LRB096 06603 JDS 44071 a

1the refund is to a surviving spouse, any child or children of
2the employee shall not be deprived of the right to receive a
3child's annuity as provided in Section 13-308 of this Article,
4and the payment of a child's annuity shall not reduce the
5amount refundable to the surviving spouse.
6(Source: P.A. 95-586, eff. 8-31-07; 96-251, eff. 8-11-09.)
 
7    (40 ILCS 5/14-103.05)  (from Ch. 108 1/2, par. 14-103.05)
8    Sec. 14-103.05. Employee.
9    (a) Any person employed by a Department who receives salary
10for personal services rendered to the Department on a warrant
11issued pursuant to a payroll voucher certified by a Department
12and drawn by the State Comptroller upon the State Treasurer,
13including an elected official described in subparagraph (d) of
14Section 14-104, shall become an employee for purpose of
15membership in the Retirement System on the first day of such
16employment.
17    A person entering service on or after January 1, 1972 and
18prior to January 1, 1984 shall become a member as a condition
19of employment and shall begin making contributions as of the
20first day of employment.
21    A person entering service on or after January 1, 1984
22shall, upon completion of 6 months of continuous service which
23is not interrupted by a break of more than 2 months, become a
24member as a condition of employment. Contributions shall begin
25the first of the month after completion of the qualifying

 

 

09600SB0550ham002- 39 -LRB096 06603 JDS 44071 a

1period.
2    A person employed by the Chicago Metropolitan Agency for
3Planning on the effective date of this amendatory Act of the
495th General Assembly who was a member of this System as an
5employee of the Chicago Area Transportation Study and makes an
6election under Section 14-104.13 to participate in this System
7for his or her employment with the Chicago Metropolitan Agency
8for Planning.
9    The qualifying period of 6 months of service is not
10applicable to: (1) a person who has been granted credit for
11service in a position covered by the State Universities
12Retirement System, the Teachers' Retirement System of the State
13of Illinois, the General Assembly Retirement System, or the
14Judges Retirement System of Illinois unless that service has
15been forfeited under the laws of those systems; (2) a person
16entering service on or after July 1, 1991 in a noncovered
17position; or (3) a person to whom Section 14-108.2a or
1814-108.2b applies; or (4) a person to whom subsection (a-5) of
19this Section applies.
20    (a-5) A person entering service on or after December 1,
212010 shall become a member as a condition of employment and
22shall begin making contributions as of the first day of
23employment. A person serving in the qualifying period on
24December 1, 2010 will become a member on December 1, 2010 and
25shall begin making contributions as of December 1, 2010.
26    (b) The term "employee" does not include the following:

 

 

09600SB0550ham002- 40 -LRB096 06603 JDS 44071 a

1        (1) members of the State Legislature, and persons
2    electing to become members of the General Assembly
3    Retirement System pursuant to Section 2-105;
4        (2) incumbents of offices normally filled by vote of
5    the people;
6        (3) except as otherwise provided in this Section, any
7    person appointed by the Governor with the advice and
8    consent of the Senate unless that person elects to
9    participate in this system;
10        (3.1) any person serving as a commissioner of an ethics
11    commission created under the State Officials and Employees
12    Ethics Act unless that person elects to participate in this
13    system with respect to that service as a commissioner;
14        (3.2) any person serving as a part-time employee in any
15    of the following positions: Legislative Inspector General,
16    Special Legislative Inspector General, employee of the
17    Office of the Legislative Inspector General, Executive
18    Director of the Legislative Ethics Commission, or staff of
19    the Legislative Ethics Commission, regardless of whether
20    he or she is in active service on or after July 8, 2004
21    (the effective date of Public Act 93-685), unless that
22    person elects to participate in this System with respect to
23    that service; in this item (3.2), a "part-time employee" is
24    a person who is not required to work at least 35 hours per
25    week;
26        (3.3) any person who has made an election under Section

 

 

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1    1-123 and who is serving either as legal counsel in the
2    Office of the Governor or as Chief Deputy Attorney General;
3        (4) except as provided in Section 14-108.2 or
4    14-108.2c, any person who is covered or eligible to be
5    covered by the Teachers' Retirement System of the State of
6    Illinois, the State Universities Retirement System, or the
7    Judges Retirement System of Illinois;
8        (5) an employee of a municipality or any other
9    political subdivision of the State;
10        (6) any person who becomes an employee after June 30,
11    1979 as a public service employment program participant
12    under the Federal Comprehensive Employment and Training
13    Act and whose wages or fringe benefits are paid in whole or
14    in part by funds provided under such Act;
15        (7) enrollees of the Illinois Young Adult Conservation
16    Corps program, administered by the Department of Natural
17    Resources, authorized grantee pursuant to Title VIII of the
18    "Comprehensive Employment and Training Act of 1973", 29 USC
19    993, as now or hereafter amended;
20        (8) enrollees and temporary staff of programs
21    administered by the Department of Natural Resources under
22    the Youth Conservation Corps Act of 1970;
23        (9) any person who is a member of any professional
24    licensing or disciplinary board created under an Act
25    administered by the Department of Professional Regulation
26    or a successor agency or created or re-created after the

 

 

09600SB0550ham002- 42 -LRB096 06603 JDS 44071 a

1    effective date of this amendatory Act of 1997, and who
2    receives per diem compensation rather than a salary,
3    notwithstanding that such per diem compensation is paid by
4    warrant issued pursuant to a payroll voucher; such persons
5    have never been included in the membership of this System,
6    and this amendatory Act of 1987 (P.A. 84-1472) is not
7    intended to effect any change in the status of such
8    persons;
9        (10) any person who is a member of the Illinois Health
10    Care Cost Containment Council, and receives per diem
11    compensation rather than a salary, notwithstanding that
12    such per diem compensation is paid by warrant issued
13    pursuant to a payroll voucher; such persons have never been
14    included in the membership of this System, and this
15    amendatory Act of 1987 is not intended to effect any change
16    in the status of such persons;
17        (11) any person who is a member of the Oil and Gas
18    Board created by Section 1.2 of the Illinois Oil and Gas
19    Act, and receives per diem compensation rather than a
20    salary, notwithstanding that such per diem compensation is
21    paid by warrant issued pursuant to a payroll voucher; or
22        (12) a person employed by the State Board of Higher
23    Education in a position with the Illinois Century Network
24    as of June 30, 2004, who remains continuously employed
25    after that date by the Department of Central Management
26    Services in a position with the Illinois Century Network

 

 

09600SB0550ham002- 43 -LRB096 06603 JDS 44071 a

1    and participates in the Article 15 system with respect to
2    that employment.
3    (c) An individual who represents or is employed as an
4officer or employee of a statewide labor organization that
5represents members of this System may participate in the System
6and shall be deemed an employee, provided that (1) the
7individual has previously earned creditable service under this
8Article, (2) the individual files with the System an
9irrevocable election to become a participant within 6 months
10after the effective date of this amendatory Act of the 94th
11General Assembly, and (3) the individual does not receive
12credit for that employment under any other provisions of this
13Code. An employee under this subsection (c) is responsible for
14paying to the System both (i) employee contributions based on
15the actual compensation received for service with the labor
16organization and (ii) employer contributions based on the
17percentage of payroll certified by the board; all or any part
18of these contributions may be paid on the employee's behalf or
19picked up for tax purposes (if authorized under federal law) by
20the labor organization.
21    A person who is an employee as defined in this subsection
22(c) may establish service credit for similar employment prior
23to becoming an employee under this subsection by paying to the
24System for that employment the contributions specified in this
25subsection, plus interest at the effective rate from the date
26of service to the date of payment. However, credit shall not be

 

 

09600SB0550ham002- 44 -LRB096 06603 JDS 44071 a

1granted under this subsection (c) for any such prior employment
2for which the applicant received credit under any other
3provision of this Code or during which the applicant was on a
4leave of absence.
5(Source: P.A. 94-1111, eff. 2-27-07; 95-677, eff. 10-11-07.)
 
6    (40 ILCS 5/14-103.10)  (from Ch. 108 1/2, par. 14-103.10)
7    Sec. 14-103.10. Compensation.
8    (a) For periods of service prior to January 1, 1978, the
9full rate of salary or wages payable to an employee for
10personal services performed if he worked the full normal
11working period for his position, subject to the following
12maximum amounts: (1) prior to July 1, 1951, $400 per month or
13$4,800 per year; (2) between July 1, 1951 and June 30, 1957
14inclusive, $625 per month or $7,500 per year; (3) beginning
15July 1, 1957, no limitation.
16    In the case of service of an employee in a position
17involving part-time employment, compensation shall be
18determined according to the employees' earnings record.
19    (b) For periods of service on and after January 1, 1978,
20all remuneration for personal services performed defined as
21"wages" under the Social Security Enabling Act, including that
22part of such remuneration which is in excess of any maximum
23limitation provided in such Act, and including any benefits
24received by an employee under a sick pay plan in effect before
25January 1, 1981, but excluding lump sum salary payments:

 

 

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1        (1) for vacation,
2        (2) for accumulated unused sick leave,
3        (3) upon discharge or dismissal,
4        (4) for approved holidays.
5    (c) For periods of service on or after December 16, 1978,
6compensation also includes any benefits, other than lump sum
7salary payments made at termination of employment, which an
8employee receives or is eligible to receive under a sick pay
9plan authorized by law.
10    (d) For periods of service after September 30, 1985,
11compensation also includes any remuneration for personal
12services not included as "wages" under the Social Security
13Enabling Act, which is deducted for purposes of participation
14in a program established pursuant to Section 125 of the
15Internal Revenue Code or its successor laws.
16    (e) For members for which Section 1-160 applies for periods
17of service on and after January 1, 2011, all remuneration for
18personal services performed defined as "wages" under the Social
19Security Enabling Act, excluding remuneration that is in excess
20of the annual earnings, salary, or wages of a member or
21participant, as provided in subsection (b-5) of Section 1-160,
22but including any benefits received by an employee under a sick
23pay plan in effect before January 1, 1981. Compensation shall
24exclude lump sum salary payments:
25        (1) for vacation;
26        (2) for accumulated unused sick leave;

 

 

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1        (3) upon discharge or dismissal; and
2        (4) for approved holidays.
3(Source: P.A. 87-1265.)
 
4    (40 ILCS 5/15-112)  (from Ch. 108 1/2, par. 15-112)
5    Sec. 15-112. Final rate of earnings.
6    "Final rate of earnings":
7    (a) This subsection (a) applies only to a person who first
8becomes a participant of any system before January 1, 2011.
9     For an employee who is paid on an hourly basis or who
10receives an annual salary in installments during 12 months of
11each academic year, the average annual earnings during the 48
12consecutive calendar month period ending with the last day of
13final termination of employment or the 4 consecutive academic
14years of service in which the employee's earnings were the
15highest, whichever is greater. For any other employee, the
16average annual earnings during the 4 consecutive academic years
17of service in which his or her earnings were the highest. For
18an employee with less than 48 months or 4 consecutive academic
19years of service, the average earnings during his or her entire
20period of service. The earnings of an employee with more than
2136 months of service prior to the date of becoming a
22participant are, for such period, considered equal to the
23average earnings during the last 36 months of such service.
24    (b) This subsection (b) applies to a person to whom
25subsection (a) does not apply.

 

 

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1    For an employee who is paid on an hourly basis or who
2receives an annual salary in installments during 12 months of
3each academic year, the average annual earnings obtained by
4dividing by 8 the total earnings of the employee during the 96
5consecutive months in which the total earnings were the highest
6within the last 120 months prior to termination.
7    For any other employee, the average annual earnings during
8the 8 consecutive academic years within the 10 years prior to
9termination in which the employee's earnings were the highest.
10For an employee with less than 96 consecutive months or 8
11consecutive academic years of service, whichever is necessary,
12the average earnings during his or her entire period of
13service.
14    (c) For an employee on leave of absence with pay, or on
15leave of absence without pay who makes contributions during
16such leave, earnings are assumed to be equal to the basic
17compensation on the date the leave began.
18    (d) For an employee on disability leave, earnings are
19assumed to be equal to the basic compensation on the date
20disability occurs or the average earnings during the 24 months
21immediately preceding the month in which disability occurs,
22whichever is greater.
23    (e) For a participant who retires on or after the effective
24date of this amendatory Act of 1997 with at least 20 years of
25service as a firefighter or police officer under this Article,
26the final rate of earnings shall be the annual rate of earnings

 

 

09600SB0550ham002- 48 -LRB096 06603 JDS 44071 a

1received by the participant on his or her last day as a
2firefighter or police officer under this Article, if that is
3greater than the final rate of earnings as calculated under the
4other provisions of this Section.
5    (f) If a participant to whom subsection (a) of this Section
6applies is an employee for at least 6 months during the
7academic year in which his or her employment is terminated, the
8annual final rate of earnings shall be 25% of the sum of (1)
9the annual basic compensation for that year, and (2) the amount
10earned during the 36 months immediately preceding that year, if
11this is greater than the final rate of earnings as calculated
12under the other provisions of this Section.
13    (g) In the determination of the final rate of earnings for
14an employee, that part of an employee's earnings for any
15academic year beginning after June 30, 1997, which exceeds the
16employee's earnings with that employer for the preceding year
17by more than 20 percent shall be excluded; in the event that an
18employee has more than one employer this limitation shall be
19calculated separately for the earnings with each employer. In
20making such calculation, only the basic compensation of
21employees shall be considered, without regard to vacation or
22overtime or to contracts for summer employment.
23    (h) The following are not considered as earnings in
24determining final rate of earnings: (1) severance or separation
25pay, (2) retirement pay, (3) payment for unused sick leave, and
26(4) payments from an employer for the period used in

 

 

09600SB0550ham002- 49 -LRB096 06603 JDS 44071 a

1determining final rate of earnings for any purpose other than
2(i) services rendered, (ii) leave of absence or vacation
3granted during that period, and (iii) vacation of up to 56 work
4days allowed upon termination of employment; except that, if
5the benefit has been collectively bargained between the
6employer and the recognized collective bargaining agent
7pursuant to the Illinois Educational Labor Relations Act,
8payment received during a period of up to 2 academic years for
9unused sick leave may be considered as earnings in accordance
10with the applicable collective bargaining agreement, subject
11to the 20% increase limitation of this Section. Any unused sick
12leave considered as earnings under this Section shall not be
13taken into account in calculating service credit under Section
1415-113.4.
15    (i) Intermittent periods of service shall be considered as
16consecutive in determining final rate of earnings.
17(Source: P.A. 92-599, eff. 6-28-02; 93-347, eff. 7-24-03.)
 
18    (40 ILCS 5/15-113.6)  (from Ch. 108 1/2, par. 15-113.6)
19    Sec. 15-113.6. Service for employment in public schools.
20"Service for employment in public schools": Includes those
21periods not exceeding the lesser of 10 years or 2/3 of the
22service granted under other Sections of this Article dealing
23with service credit, during which a person who entered the
24system after September 1, 1974 was employed full time by a
25public common school, public college and public university, or

 

 

09600SB0550ham002- 50 -LRB096 06603 JDS 44071 a

1by an agency or instrumentality of any of the foregoing, of any
2state, territory, dependency or possession of the United States
3of America, including the Philippine Islands, or a school
4operated by or under the auspices of any agency or department
5of any other state, if the person (1) cannot qualify for a
6retirement pension or other benefit based upon employer
7contributions from another retirement system, exclusive of
8federal social security, based in whole or in part upon this
9employment, and (2) pays the lesser of (A) an amount equal to
108% of his or her annual basic compensation on the date of
11becoming a participating employee subsequent to this service
12multiplied by the number of years of such service, together
13with compound interest from the date participation begins to
14the date payment is received by the board at the rate of 6% per
15annum through August 31, 1982, and at the effective rates after
16that date, and (B) 50% of the actuarial value of the increase
17in the retirement annuity provided by this service, and (3)
18contributes for at least 5 years subsequent to this employment
19to one or more of the following systems: the State Universities
20Retirement System, the Teachers' Retirement System of the State
21of Illinois, and the Public School Teachers' Pension and
22Retirement Fund of Chicago.
23    The service granted under this Section shall not be
24considered in determining whether the person has the minimum of
258 years of service required to qualify for a retirement annuity
26at age 55 or the 5 years of service required to qualify for a

 

 

09600SB0550ham002- 51 -LRB096 06603 JDS 44071 a

1retirement annuity at age 62, as provided in Section 15-135, or
2the 10 years required by subsection (c) of Section 1-160 for a
3person who first becomes a participant on or after January 1,
42011. The maximum allowable service of 10 years for this
5governmental employment shall be reduced by the service credit
6which is validated under paragraph (2) of subsection (b) of
7Section 16-127 and paragraph 1 of Section 17-133.
8(Source: P.A. 95-83, eff. 8-13-07.)
 
9    (40 ILCS 5/15-134)  (from Ch. 108 1/2, par. 15-134)
10    Sec. 15-134. Participant.
11    (a) Each person shall, as a condition of employment, become
12a participant and be subject to this Article on the date that
13he or she becomes an employee, makes an election to participate
14in, or otherwise becomes a participant in one of the retirement
15programs offered under this Article, whichever date is later.
16    An employee who becomes a participant shall continue to be
17a participant until he or she becomes an annuitant, dies or
18accepts a refund of contributions. For purposes of subsection
19(f) of Section 1-160, the term "participant" shall include a
20person receiving a retirement annuity.
21    (b) A person employed concurrently by 2 or more employers
22is eligible to participate in the system on compensation
23received from all employers.
24(Source: P.A. 93-347, eff. 7-24-03.)
 

 

 

09600SB0550ham002- 52 -LRB096 06603 JDS 44071 a

1    (40 ILCS 5/15-136.3)
2    Sec. 15-136.3. Minimum retirement annuity.
3    (a) Beginning January 1, 1997, any person who is receiving
4a monthly retirement annuity under this Article which, after
5inclusion of (1) all one-time and automatic annual increases to
6which the person is entitled, (2) any supplemental annuity
7payable under Section 15-136.1, and (3) any amount deducted
8under Section 15-138 or 15-140 to provide a reversionary
9annuity, is less than the minimum monthly retirement benefit
10amount specified in subsection (b) of this Section, shall be
11entitled to a monthly supplemental payment equal to the
12difference.
13    (b) For purposes of the calculation in subsection (a), the
14minimum monthly retirement benefit amount is the sum of $25 for
15each year of service credit, up to a maximum of 30 years of
16service.
17    (c) This Section applies to all persons receiving a
18retirement annuity under this Article, without regard to
19whether or not employment terminated prior to the effective
20date of this Section. The annual increase provided in
21subsection (e) of Section 1-160 does not apply to any benefit
22provided under this Section.
23(Source: P.A. 89-616, eff. 8-9-96.)
 
24    (40 ILCS 5/15-146)  (from Ch. 108 1/2, par. 15-146)
25    Sec. 15-146. Survivors insurance benefits - Minimum

 

 

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1amounts.
2    (a) The minimum total survivors annuity payable on account
3of the death of a participant shall be 50% of the retirement
4annuity which would have been provided under Rule 1, Rule 2,
5Rule 3, or Rule 5 of Section 15-136 upon the participant's
6attainment of the minimum age at which the penalty for early
7retirement would not be applicable or the date of the
8participant's death, whichever is later, on the basis of
9credits earned prior to the time of death.
10    (b) The minimum total survivors annuity payable on account
11of the death of an annuitant shall be 50% of the retirement
12annuity which is payable under Section 15-136 at the time of
13death or 50% of the disability retirement annuity payable under
14Section 15-153.2. This minimum survivors annuity shall apply to
15each participant and annuitant who dies after September 16,
161979, whether or not his or her employee status terminates
17before or after that date.
18    (c) If an annuitant has elected a reversionary annuity, the
19retirement annuity referred to in this Section is that which
20would have been payable had such election not been filed.
21    (d) Beginning January 1, 2002, any person who is receiving
22a survivors annuity under this Article which, after inclusion
23of all one-time and automatic annual increases to which the
24person is entitled, is less than the sum of $17.50 for each
25year (up to a maximum of 30 years) of the deceased member's
26service credit, shall be entitled to a monthly supplemental

 

 

09600SB0550ham002- 54 -LRB096 06603 JDS 44071 a

1payment equal to the difference.
2    If 2 or more persons are receiving survivors annuities
3based on the same deceased member, the calculation of the
4supplemental payment under this subsection shall be based on
5the total of those annuities and divided pro rata. The
6supplemental payment is not subject to any limitation on the
7maximum amount of the annuity and shall not be included in the
8calculation of any automatic annual increase under Section
915-145. The annual increase provided in subsection (f) of
10Section 1-160 does not apply to any benefit provided under this
11subsection.
12(Source: P.A. 91-887, eff. 7-6-00; 92-749, eff. 8-2-02.)
 
13    (40 ILCS 5/18-115)  (from Ch. 108 1/2, par. 18-115)
14    Sec. 18-115. Beneficiary. "Beneficiary": A surviving
15spouse or children eligible for an annuity; or, if no eligible
16surviving spouse or children survives, the person or persons
17designated by the participant or annuitant in the last written
18designation on file with the Board; or, if no person so
19designated survives, or if no designation is on file, the
20estate of the participant or annuitant. If a special needs
21trust as described in Section 1396p(d)(4) of Title 42 of the
22United States Code, as amended from time to time, has been
23established for a disabled child, then the special needs trust
24may stand in lieu of the disabled adult child as a beneficiary
25for the purposes of this Article.

 

 

09600SB0550ham002- 55 -LRB096 06603 JDS 44071 a

1(Source: P.A. 83-1440.)
 
2    (40 ILCS 5/18-125)  (from Ch. 108 1/2, par. 18-125)
3    Sec. 18-125. Retirement annuity amount.
4    (a) The annual retirement annuity for a participant who
5terminated service as a judge prior to July 1, 1971 shall be
6based on the law in effect at the time of termination of
7service.
8    (b) Except as provided in subsection (b-5), effective July
91, 1971, the retirement annuity for any participant in service
10on or after such date shall be 3 1/2% of final average salary,
11as defined in this Section, for each of the first 10 years of
12service, and 5% of such final average salary for each year of
13service on excess of 10.
14    For purposes of this Section, final average salary for a
15participant who first serves as a judge before August 10, 2009
16(the effective date of Public Act 96-207) shall be:
17        (1) the average salary for the last 4 years of credited
18    service as a judge for a participant who terminates service
19    before July 1, 1975.
20        (2) for a participant who terminates service after June
21    30, 1975 and before July 1, 1982, the salary on the last
22    day of employment as a judge.
23        (3) for any participant who terminates service after
24    June 30, 1982 and before January 1, 1990, the average
25    salary for the final year of service as a judge.

 

 

09600SB0550ham002- 56 -LRB096 06603 JDS 44071 a

1        (4) for a participant who terminates service on or
2    after January 1, 1990 but before the effective date of this
3    amendatory Act of 1995, the salary on the last day of
4    employment as a judge.
5        (5) for a participant who terminates service on or
6    after the effective date of this amendatory Act of 1995,
7    the salary on the last day of employment as a judge, or the
8    highest salary received by the participant for employment
9    as a judge in a position held by the participant for at
10    least 4 consecutive years, whichever is greater.
11    However, in the case of a participant who elects to
12discontinue contributions as provided in subdivision (a)(2) of
13Section 18-133, the time of such election shall be considered
14the last day of employment in the determination of final
15average salary under this subsection.
16    For a participant who first serves as a judge on or after
17August 10, 2009 (the effective date of Public Act 96-207) and
18before January 1, 2011 (the effective date of Public Act
1996-889) this amendatory Act of the 96th General Assembly, final
20average salary shall be the average monthly salary obtained by
21dividing the total salary of the participant during the period
22of: (1) the 48 consecutive months of service within the last
23120 months of service in which the total compensation was the
24highest, or (2) the total period of service, if less than 48
25months, by the number of months of service in that period.
26    The maximum retirement annuity for any participant shall be

 

 

09600SB0550ham002- 57 -LRB096 06603 JDS 44071 a

185% of final average salary.
2    (b-5) Notwithstanding any other provision of this Article,
3for a participant who first serves as a judge on or after
4January 1, 2011 (the effective date of Public Act 96-889) this
5amendatory Act of the 96th General Assembly, the annual
6retirement annuity is 3% of the participant's final average
7salary for each year of service. The maximum retirement annuity
8payable shall be 60% of the participant's final average salary.
9    For a participant who first serves as a judge on or after
10January 1, 2011 (the effective date of Public Act 96-889) this
11amendatory Act of the 96th General Assembly, final average
12salary shall be the average monthly salary obtained by dividing
13the total salary of the judge during the 96 consecutive months
14of service within the last 120 months of service in which the
15total salary was the highest by the number of months of service
16in that period; however, beginning January 1, 2011, the annual
17final average salary may not exceed $106,800, except that that
18amount shall annually thereafter be increased by the lesser of
19(i) 3% of that amount, including all previous adjustments, or
20(ii) the annual unadjusted percentage increase (but not less
21than zero) the Social Security Covered Wage Base for 2010, and
22shall automatically be increased or decreased, as applicable,
23by a percentage equal to the percentage change in the consumer
24price index-u for the 12 months ending with the September
25preceding each November 1 during the preceding 12-month
26calendar year. "Consumer price index-u" means the index

 

 

09600SB0550ham002- 58 -LRB096 06603 JDS 44071 a

1published by the Bureau of Labor Statistics of the United
2States Department of Labor that measures the average change in
3prices of goods and services purchased by all urban consumers,
4United States city average, all items, 1982-84 = 100. The new
5amount resulting from each annual adjustment shall be
6determined by the Public Pension Division of the Department of
7Insurance and made available to the Board by November 1st of
8each year.
9    (c) The retirement annuity for a participant who retires
10prior to age 60 with less than 28 years of service in the
11System shall be reduced 1/2 of 1% for each month that the
12participant's age is under 60 years at the time the annuity
13commences. However, for a participant who retires on or after
14the effective date of this amendatory Act of the 91st General
15Assembly, the percentage reduction in retirement annuity
16imposed under this subsection shall be reduced by 5/12 of 1%
17for every month of service in this System in excess of 20
18years, and therefore a participant with at least 26 years of
19service in this System may retire at age 55 without any
20reduction in annuity.
21    The reduction in retirement annuity imposed by this
22subsection shall not apply in the case of retirement on account
23of disability.
24    (d) Notwithstanding any other provision of this Article,
25for a participant who first serves as a judge on or after
26January 1, 2011 (the effective date of Public Act 96-889) this

 

 

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1amendatory Act of the 96th General Assembly and who is retiring
2after attaining age 62, the retirement annuity shall be reduced
3by 1/2 of 1% for each month that the participant's age is under
4age 67 at the time the annuity commences.
5(Source: P.A. 96-207, eff. 8-10-09; 96-889, eff. 1-1-11;
696-1000, eff. 7-2-10.)
 
7    (40 ILCS 5/18-125.1)  (from Ch. 108 1/2, par. 18-125.1)
8    (Text of Section after amendment by P.A. 96-889)
9    Sec. 18-125.1. Automatic increase in retirement annuity. A
10participant who retires from service after June 30, 1969,
11shall, in January of the year next following the year in which
12the first anniversary of retirement occurs, and in January of
13each year thereafter, have the amount of his or her originally
14granted retirement annuity increased as follows: for each year
15up to and including 1971, 1 1/2%; for each year from 1972
16through 1979 inclusive, 2%; and for 1980 and each year
17thereafter, 3%.
18    Notwithstanding any other provision of this Article, a
19retirement annuity for a participant who first serves as a
20judge on or after January 1, 2011 (the effective date of Public
21Act 96-889) this amendatory Act of the 96th General Assembly
22shall be increased in January of the year next following the
23year in which the first anniversary of retirement occurs, but
24in no event prior to age 67, and in January of each year
25thereafter, by an amount equal to 3% or the annual percentage

 

 

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1increase change in the consumer price index-u as determined by
2the Public Pension Division of the Department of Insurance
3under subsection (b-5) of Section 18-125 Consumer Price Index
4for All Urban Consumers, whichever is less, of the retirement
5annuity then being paid.
6    This Section is not applicable to a participant who retires
7before he or she has made contributions at the rate prescribed
8in Section 18-133 for automatic increases for not less than the
9equivalent of one full year, unless such a participant arranges
10to pay the system the amount required to bring the total
11contributions for the automatic increase to the equivalent of
12one year's contribution based upon his or her last year's
13salary.
14    This Section is applicable to all participants in service
15after June 30, 1969 unless a participant has elected, prior to
16September 1, 1969, in a written direction filed with the board
17not to be subject to the provisions of this Section. Any
18participant in service on or after July 1, 1992 shall have the
19option of electing prior to April 1, 1993, in a written
20direction filed with the board, to be covered by the provisions
21of the 1969 amendatory Act. Such participant shall be required
22to make the aforesaid additional contributions with compound
23interest at 4% per annum.
24    Any participant who has become eligible to receive the
25maximum rate of annuity and who resumes service as a judge
26after receiving a retirement annuity under this Article shall

 

 

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1have the amount of his or her retirement annuity increased by
23% of the originally granted annuity amount for each year of
3such resumed service, beginning in January of the year next
4following the date of such resumed service, upon subsequent
5termination of such resumed service.
6    Beginning January 1, 1990, all automatic annual increases
7payable under this Section shall be calculated as a percentage
8of the total annuity payable at the time of the increase,
9including previous increases granted under this Article.
10(Source: P.A. 96-889, eff. 1-1-11.)
 
11    (40 ILCS 5/18-127)  (from Ch. 108 1/2, par. 18-127)
12    (Text of Section after amendment by P.A. 96-889)
13    Sec. 18-127. Retirement annuity - suspension on
14reemployment.
15    (a) A participant receiving a retirement annuity who is
16regularly employed for compensation by an employer other than a
17county, in any capacity, shall have his or her retirement
18annuity payments suspended during such employment. Upon
19termination of such employment, retirement annuity payments at
20the previous rate shall be resumed.
21    If such a participant resumes service as a judge, he or she
22shall receive credit for any additional service. Upon
23subsequent retirement, his or her retirement annuity shall be
24the amount previously granted, plus the amount earned by the
25additional judicial service under the provisions in effect

 

 

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1during the period of such additional service. However, if the
2participant was receiving the maximum rate of annuity at the
3time of re-employment, he or she may elect, in a written
4direction filed with the board, not to receive any additional
5service credit during the period of re-employment. In such
6case, contributions shall not be required during the period of
7re-employment. Any such election shall be irrevocable.
8    (b) Beginning January 1, 1991, any participant receiving a
9retirement annuity who accepts temporary employment from an
10employer other than a county for a period not exceeding 75
11working days in any calendar year shall not be deemed to be
12regularly employed for compensation or to have resumed service
13as a judge for the purposes of this Article. A day shall be
14considered a working day if the annuitant performs on it any of
15his duties under the temporary employment agreement.
16    (c) Except as provided in subsection (a), beginning January
171, 1993, retirement annuities shall not be subject to
18suspension upon resumption of employment for an employer, and
19any retirement annuity that is then so suspended shall be
20reinstated on that date.
21    (d) The changes made in this Section by this amendatory Act
22of 1993 shall apply to judges no longer in service on its
23effective date, as well as to judges serving on or after that
24date.
25    (e) A participant receiving a retirement annuity under this
26Article who serves as a part-time employee in any of the

 

 

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1following positions: Legislative Inspector General, Special
2Legislative Inspector General, employee of the Office of the
3Legislative Inspector General, Executive Director of the
4Legislative Ethics Commission, or staff of the Legislative
5Ethics Commission, but has not elected to participate in the
6Article 14 System with respect to that service, shall not be
7deemed to be regularly employed for compensation by an employer
8other than a county, nor to have resumed service as a judge, on
9the basis of that service, and the retirement annuity payments
10and other benefits of that person under this Code shall not be
11suspended, diminished, or otherwise impaired solely as a
12consequence of that service. This subsection (e) applies
13without regard to whether the person is in service as a judge
14under this Article on or after the effective date of this
15amendatory Act of the 93rd General Assembly. In this
16subsection, a "part-time employee" is a person who is not
17required to work at least 35 hours per week.
18    (f) A participant receiving a retirement annuity under this
19Article who has made an election under Section 1-123 and who is
20serving either as legal counsel in the Office of the Governor
21or as Chief Deputy Attorney General shall not be deemed to be
22regularly employed for compensation by an employer other than a
23county, nor to have resumed service as a judge, on the basis of
24that service, and the retirement annuity payments and other
25benefits of that person under this Code shall not be suspended,
26diminished, or otherwise impaired solely as a consequence of

 

 

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1that service. This subsection (f) applies without regard to
2whether the person is in service as a judge under this Article
3on or after the effective date of this amendatory Act of the
493rd General Assembly.
5    (g) Notwithstanding any other provision of this Article, if
6a person who first becomes a participant under this System on
7or after January 1, 2011 (the effective date of this amendatory
8Act of the 96th General Assembly) is receiving a retirement
9annuity under this Article and becomes a member or participant
10accepts employment in a position covered under this Article or
11any other Article of this Code and is employed on a full-time
12basis, then the person's retirement annuity under this System
13shall be suspended during that employment. Upon termination of
14that employment, the person's retirement annuity shall resume
15and, if appropriate, be recalculated under the applicable
16provisions of this Article.
17(Source: P.A. 96-889, eff. 1-1-11.)
 
18    (40 ILCS 5/18-128.01)  (from Ch. 108 1/2, par. 18-128.01)
19    (Text of Section after amendment by P.A. 96-889)
20    Sec. 18-128.01. Amount of survivor's annuity.
21    (a) Upon the death of an annuitant, his or her surviving
22spouse shall be entitled to a survivor's annuity of 66 2/3% of
23the annuity the annuitant was receiving immediately prior to
24his or her death, inclusive of annual increases in the
25retirement annuity to the date of death.

 

 

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1    (b) Upon the death of an active participant, his or her
2surviving spouse shall receive a survivor's annuity of 66 2/3%
3of the annuity earned by the participant as of the date of his
4or her death, determined without regard to whether the
5participant had attained age 60 as of that time, or 7 1/2% of
6the last salary of the decedent, whichever is greater.
7    (c) Upon the death of a participant who had terminated
8service with at least 10 years of service, his or her surviving
9spouse shall be entitled to a survivor's annuity of 66 2/3% of
10the annuity earned by the deceased participant at the date of
11death.
12    (d) Upon the death of an annuitant, active participant, or
13participant who had terminated service with at least 10 years
14of service, each surviving child under the age of 18 or
15disabled as defined in Section 18-128 shall be entitled to a
16child's annuity in an amount equal to 5% of the decedent's
17final salary, not to exceed in total for all such children the
18greater of 20% of the decedent's last salary or 66 2/3% of the
19annuity received or earned by the decedent as provided under
20subsections (a) and (b) of this Section. This child's annuity
21shall be paid whether or not a survivor's annuity was elected
22under Section 18-123.
23    (e) The changes made in the survivor's annuity provisions
24by Public Act 82-306 shall apply to the survivors of a deceased
25participant or annuitant whose death occurs on or after August
2621, 1981.

 

 

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1    (f) Beginning January 1, 1990, every survivor's annuity
2shall be increased (1) on each January 1 occurring on or after
3the commencement of the annuity if the deceased member died
4while receiving a retirement annuity, or (2) in other cases, on
5each January 1 occurring on or after the first anniversary of
6the commencement of the annuity, by an amount equal to 3% of
7the current amount of the annuity, including any previous
8increases under this Article. Such increases shall apply
9without regard to whether the deceased member was in service on
10or after the effective date of this amendatory Act of 1991, but
11shall not accrue for any period prior to January 1, 1990.
12    (g) Notwithstanding any other provision of this Article,
13the initial survivor's annuity for a survivor of a participant
14who first serves as a judge after January 1, 2011 (the
15effective date of Public Act 96-889) this amendatory Act of the
1696th General Assembly shall be in the amount of 66 2/3% of the
17annuity received or earned by the decedent, and shall be
18increased (1) on each January 1 occurring on or after the
19commencement of the annuity if the deceased participant died
20while receiving a retirement annuity, or (2) in other cases, on
21each January 1 occurring on or after the first anniversary of
22the commencement of the annuity, but in no event prior to age
2367, by an amount equal to 3% or the annual unadjusted
24percentage increase change in the consumer price index-u as
25determined by the Public Pension Division of the Department of
26Insurance under subsection (b-5) of Section 18-125 Consumer

 

 

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1Price Index for All Urban Consumers, whichever is less, of the
2survivor's annuity then being paid.
3(Source: P.A. 96-889, eff. 1-1-11.)
 
4    (40 ILCS 5/18-133)  (from Ch. 108 1/2, par. 18-133)
5    Sec. 18-133. Financing; employee contributions.
6    (a) Effective July 1, 1967, each participant is required to
7contribute 7 1/2% of each payment of salary toward the
8retirement annuity. Such contributions shall continue during
9the entire time the participant is in service, with the
10following exceptions:
11        (1) Contributions for the retirement annuity are not
12    required on salary received after 18 years of service by
13    persons who were participants before January 2, 1954.
14        (2) A participant who continues to serve as a judge
15    after becoming eligible to receive the maximum rate of
16    annuity may elect, through a written direction filed with
17    the Board, to discontinue contributing to the System. Any
18    such option elected by a judge shall be irrevocable unless
19    prior to January 1, 2000, and while continuing to serve as
20    judge, the judge (A) files with the Board a letter
21    cancelling the direction to discontinue contributing to
22    the System and requesting that such contributing resume,
23    and (B) pays into the System an amount equal to the total
24    of the discontinued contributions plus interest thereon at
25    5% per annum. Service credits earned in any other

 

 

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1    "participating system" as defined in Article 20 of this
2    Code shall be considered for purposes of determining a
3    judge's eligibility to discontinue contributions under
4    this subdivision (a)(2).
5        (3) A participant who (i) has attained age 60, (ii)
6    continues to serve as a judge after becoming eligible to
7    receive the maximum rate of annuity, and (iii) has not
8    elected to discontinue contributing to the System under
9    subdivision (a)(2) of this Section (or has revoked any such
10    election) may elect, through a written direction filed with
11    the Board, to make contributions to the System based only
12    on the amount of the increases in salary received by the
13    judge on or after the date of the election, rather than the
14    total salary received. If a judge who is making
15    contributions to the System on the effective date of this
16    amendatory Act of the 91st General Assembly makes an
17    election to limit contributions under this subdivision
18    (a)(3) within 90 days after that effective date, the
19    election shall be deemed to become effective on that
20    effective date and the judge shall be entitled to receive a
21    refund of any excess contributions paid to the System
22    during that 90-day period; any other election under this
23    subdivision (a)(3) becomes effective on the first of the
24    month following the date of the election. An election to
25    limit contributions under this subdivision (a)(3) is
26    irrevocable. Service credits earned in any other

 

 

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1    participating system as defined in Article 20 of this Code
2    shall be considered for purposes of determining a judge's
3    eligibility to make an election under this subdivision
4    (a)(3).
5    (b) Beginning July 1, 1969, each participant is required to
6contribute 1% of each payment of salary towards the automatic
7increase in annuity provided in Section 18-125.1. However, such
8contributions need not be made by any participant who has
9elected prior to September 15, 1969, not to be subject to the
10automatic increase in annuity provisions.
11    (c) Effective July 13, 1953, each married participant
12subject to the survivor's annuity provisions is required to
13contribute 2 1/2% of each payment of salary, whether or not he
14or she is required to make any other contributions under this
15Section. Such contributions shall be made concurrently with the
16contributions made for annuity purposes.
17    (d) Notwithstanding any other provision of this Article,
18the required contributions for a participant who first becomes
19a participant on or after January 1, 2011 shall not exceed the
20contributions that would be due under this Article if that
21participant's highest salary for annuity purposes were
22$106,800, plus any increase in that amount under Section
2318-125.
24(Source: P.A. 91-653, eff. 12-10-99.)
 
25    Section 95. No acceleration or delay. Where this Act makes

 

 

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1changes in a statute that is represented in this Act by text
2that is not yet or no longer in effect (for example, a Section
3represented by multiple versions), the use of that text does
4not accelerate or delay the taking effect of (i) the changes
5made by this Act or (ii) provisions derived from any other
6Public Act.
 
7    Section 99. Effective date. This Act takes effect January
81, 2011.".