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Illinois Compiled Statutes
Information maintained by the Legislative Reference Bureau Updating the database of the Illinois Compiled Statutes (ILCS) is an ongoing process. Recent laws may not yet be included in the ILCS database, but they are found on this site as Public Acts soon after they become law. For information concerning the relationship between statutes and Public Acts, refer to the Guide. Because the statute database is maintained primarily for legislative drafting purposes, statutory changes are sometimes included in the statute database before they take effect. If the source note at the end of a Section of the statutes includes a Public Act that has not yet taken effect, the version of the law that is currently in effect may have already been removed from the database and you should refer to that Public Act to see the changes made to the current law.
PENSIONS (40 ILCS 5/) Illinois Pension Code. 40 ILCS 5/Art. 13 Pt. IV
(40 ILCS 5/Art. 13 Pt. IV heading)
Part IV.
Computation of Service.
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40 ILCS 5/13-401
(40 ILCS 5/13-401) (from Ch. 108 1/2, par. 13-401)
Sec. 13-401.
Term of service.
(a) In computing the term of service, the following periods of time shall
be counted as periods of service for annuity purposes only:
(1) the time during which the employee performs | | services required by the Employer.
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(2) approved vacations or leaves of absence with
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(3) any period for which the employee receives a
| | disability benefit payable under this Article.
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(4) leaves of absence for military service as
| | provided in Section 13-403(a), and military service as provided in Section 13-403(b).
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(b) In computing the term of service for the ordinary disability benefit,
the following periods of time shall be counted as periods of service:
(1) the time during which the employee performs
| | services required by the Employer.
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(2) approved vacations or leaves of absence with
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(3) any period for which the employee receives a duty
| | disability benefit under this Article.
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(c) Any employee who first enters service before the effective date
of this amendatory Act of 1997 may, during any period of approved leave of
absence without pay, continue to make contributions for the retirement and
surviving spouse's annuities for a total period not to exceed one year during
the employee's entire aggregate service with the Employer. Upon making these
contributions, the employee shall receive credit in terms of length of service
for the retirement and surviving spouse's annuities. Concurrent Employer's
contributions shall be provided by the District.
(d) An employee may establish credit for periods of approved leave of
absence without pay, not to exceed a total of one year during the employee's
aggregate service with the employer. To establish this credit, the employee
must either continue to remain on approved leave of absence, return to service
with the employer, or in the case of an employee who first enters service on or
after the effective date of this amendatory Act of 1997, return to service with
the employer for at least one calendar year. The employee must pay to the Fund
the corresponding employee contributions, plus interest at the annual rate from
time to time determined by the Board, compounded annually from the date of
service to the date of payment. The corresponding employer contributions shall
be provided by the District. Upon making the required contributions, the
employee shall receive credit in terms of length of service for the retirement
and surviving spouse's annuity in proportion to the number of pay periods or
portion thereof for which contributions were made relative to 26 pay periods.
(e) Overtime or extra service shall not be included in computing any
service. Not more than one year of service credit shall be allowed
for service rendered during any calendar year.
(Source: P.A. 93-334, eff. 7-24-03.)
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40 ILCS 5/13-402
(40 ILCS 5/13-402) (from Ch. 108 1/2, par. 13-402)
Sec. 13-402. Length of service. For the purpose of computing the length
of service for the retirement annuity, surviving spouse's annuity, and
child's annuity, and calculating the minimum service requirement for
payment of military service under subsection (b) of Section 13-403,
service of 120 days in any one calendar year shall constitute one year
of service and service for any fractional part thereof shall constitute an
equal fractional part of one year of service unless specifically provided
otherwise. For all other purposes under this Article, including but not
limited to the optional plans of additional benefits and contributions provided
under Sections 13-304, 13-304.1, and 13-314 of this Article, 26 pay periods of service
during any 12 consecutive months shall constitute a year of service, and
service rendered for 50% or more of a single pay period shall constitute
service for the full pay period. Service of less than 50% of a single pay
period shall not be counted.
(Source: P.A. 93-334, eff. 7-24-03; 94-621, eff. 8-18-05.)
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40 ILCS 5/13-403
(40 ILCS 5/13-403) (from Ch. 108 1/2, par. 13-403)
Sec. 13-403. Military service.
(a) Any employee who, after commencement of
service with the Employer, enlisted, was inducted or was otherwise ordered
to serve in the military forces of the United States pursuant to any law,
shall receive full service credit for the various purposes of this Article
as though the employee were in the active service of the Employer during
the period of military service provided that:
(1) such service credit shall be granted for military | | service for which the employee volunteers or is inducted or called into military service pursuant to a call of a duly constituted authority or a law of the United States declaring a national emergency;
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(2) the employee returns to the employ of the
| | Employer within 90 days after the termination of the national emergency; and
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(3) the total service credit for such military
| | service shall not exceed 5 years except that any employee who on July 1, 1963 had accrued more than 5 years of such credit shall be entitled to the total amount thereof.
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(b) For a ten-year period following July 24, 2003, a contributing employee or commissioner
meeting the minimum service requirements provided under this subsection may
establish additional service credit for a period of up to 2 years of active
military service in the United States Armed Forces for which he or she does not
qualify for credit under subsection (a), provided that (1) the person was not
dishonorably discharged from the military service, and (2) the amount of
service credit established by the person under this subsection (b), when added
to the amount of any military service credit granted to the person under
subsection (a), shall not exceed 5 years.
The minimum service requirement for a contributing employee is 10 years of
service credit as provided in Sections 13-401 and 13-402 of this Article and
exclusive of Article 20. The minimum service requirement for a contributing
commissioner is 5 years of service credit as provided in Sections 13-401 and
13-402 of this Article and
exclusive of Article 20.
In order to establish military service credit under this subsection (b),
the applicant must submit a written application to the Fund, including the
applicant's discharge papers from military service, and pay to the Fund (i)
employee contributions at the rates provided in this Article, based upon the
person's salary on the last date as a participating employee prior to the
military service or on the first date as a participating employee after the
military service, whichever is greater, plus (ii) the current amount determined
by the board to be equal to the employer's normal cost of the benefits accrued
for such military service, plus (iii) regular interest of 3% compounded
annually on items (i) and (ii) from the date of entry or re-entry as a
participating employee following the military service to the date of payment.
Contributions must be paid in full before the credit is granted. Credit
established under this subsection may be used for pension purposes only.
Notwithstanding any other provision of this Section, a person may not
establish creditable service under this Section for any period for which the
person receives credit under any other public employee retirement system,
unless the credit under that other retirement system has been irrevocably
relinquished.
(Source: P.A. 93-334, eff. 7-24-03; 94-621, eff. 8-18-05.)
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40 ILCS 5/Art. 13 Pt. V
(40 ILCS 5/Art. 13 Pt. V heading)
Part V.
Contributions and Tax Levy
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40 ILCS 5/13-501
(40 ILCS 5/13-501) (from Ch. 108 1/2, par. 13-501)
Sec. 13-501.
Contributions computed on actuarially funded basis.
The
obligations of the various annuities and benefits provided by this Article
shall be financed by contributions by employees, contributions by the Water
Reclamation District, income from investments and other income that may
accrue to the Fund during the course of its operations. The amount to be
contributed by the District for any calendar year shall be computed on an
actuarially funded basis and shall be equal to the sum of the following:
(1) For retirement and surviving spouse's annuities | | and annual increases therefore, and child's annuities, the amount determined by the Retirement Board upon recommendation of the actuary which, when added to the amounts held by the Fund to cover liabilities for such annuities and annual increases, shall be equal to the present value, according to actuarial tables in use by the Fund, of the aggregate liability of the Fund with respect to such annuities and annual increases credited or to be credited on account of service rendered or to be rendered to the end of such calendar year, after applying as a credit against such liability the accumulated employee contributions for such service.
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(2) For the current annual cash requirements covering
| | administration expense, duty disability benefits and ordinary disability benefits, the amounts to be contributed by the District shall be equal to the actual payments by the Fund for these purposes.
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The District contributions provided in this Section shall be allocated
for the purposes for which contributions have been made, and credited to
appropriate reserve accounts established by the Board.
(Source: P.A. 87-794.)
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40 ILCS 5/13-502 (40 ILCS 5/13-502) (from Ch. 108 1/2, par. 13-502)
Sec. 13-502. Employee contributions; deductions from salary.
(a) Retirement annuity and child's annuity. Except as otherwise provided in this Section, there shall be deducted
from each payment of salary an amount equal to 7% of salary as the
employee's contribution for the retirement annuity, including
child's annuity, and 0.5% of salary as the employee's contribution for annual increases to the retirement annuity.
(a-1) For employees who first became a member or participant before January 1, 2011 under any reciprocal retirement system or pension fund established under this Code other than a retirement system or pension fund established under Article 2, 3, 4, 5, 6, or 18 of this Code: (1) beginning with the first pay period paid on or | | after January 1, 2013 and ending with the last pay period paid on or before December 31, 2013, employee contributions shall be 7.5% for the retirement annuity and 1.0% for annual increases for a total of 8.5%;
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| (2) beginning with the first pay period paid on or
| | after January 1, 2014 and ending with the last pay period paid on or before December 31, 2014, employee contributions shall be 8.0% for the retirement annuity and 1.5% for annual increases for a total of 9.5%;
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| (3) beginning with the first pay period paid on or
| | after January 1, 2015 and ending with the last pay period paid on or before the date when the funded ratio of the Fund is first determined to have reached the 90% funding goal, employee contributions shall be 8.5% for the retirement annuity and 1.5% for annual increases for a total of 10.0%; and
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| (4) beginning with the first pay period paid on or
| | after the date when the funded ratio of the Fund is first determined to have reached the 90% funding goal, and each pay period paid thereafter, employee contributions shall be 7.0% for the retirement annuity and 0.5% for annual increases for a total of 7.5%.
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| (b) Surviving spouse's annuity. There shall be deducted from each
payment of salary an amount equal to 1 1/2% of salary as the employee's
contribution for the surviving spouse's annuity and annual increases therefor. For employees that first became a member or a participant before January 1, 2011 under any reciprocal retirement system or pension fund established under this Code other than a retirement system or pension fund established under Article 2, 3, 4, 5, 6, or 18 of this Code, beginning with the first pay period paid on or after January 1, 2015 and ending with the last pay period paid on or before the date when the funded ratio of the Fund is first determined to have reached the 90% funding goal, there shall be deducted an additional 0.5% of salary for a total of 2.0% for the surviving spouse's annuity and annual increases.
(c) Pickup of employee contributions. The Employer may pick up employee
contributions required under subsections (a) and (b) of this Section. If
contributions are picked up they shall be treated as Employer contributions
in determining tax treatment under the United States Internal Revenue Code,
and shall not be included as gross income of the employee until such time
as they are distributed. The Employer shall pay these employee
contributions from the same source of funds used in paying salary to the
employee. The Employer may pick up these contributions by a reduction in
the cash salary of the employee or by an offset against a future salary
increase or by a combination of a reduction in salary and offset against a
future salary increase. If employee contributions are picked up they shall be
treated for all purposes of this Article 13, including Sections 13-503 and
13-601, in the same manner and to the same extent as employee contributions
made prior to the date picked up.
(d) Subject to the requirements of federal law, the Employer shall
pick up optional contributions that the employee has elected to pay to the
Fund under Section 13-304.1, and the contributions so picked up
shall be treated as employer contributions for the purposes of determining
federal tax treatment. The Employer shall pick up the contributions by a
reduction in the cash salary of the employee and shall pay the contributions
from the same fund that is used to pay earnings to the employee. The Employer
shall, however, continue to withhold federal and State income taxes based upon
contributions made under Section 13-304.1 until the Internal Revenue Service or
the federal courts rule that pursuant to Section 414(h) of the U.S. Internal
Revenue Code of 1986, as amended, these contributions shall not be included as
gross income of the employee until such time as they are distributed or made
available.
(e) Each employee is deemed to consent and agree to the deductions from
compensation provided for in this Article.
(f) Subject to the requirements of federal law, the Employer shall pick up
contributions that a commissioner has elected to pay to the Fund under Section
13-314, and the contributions so picked up shall be treated as Employer
contributions for the purposes of determining federal tax treatment. The
Employer shall pick up the contributions by a reduction in the cash salary of
the commissioner and shall pay the contributions from the same fund as is
used to pay earnings to the commissioner. The Employer shall, however,
continue to withhold federal and State income taxes based upon contributions
made under Section 13-314 until the U.S. Internal Revenue Service or the
federal courts rule that pursuant to Section 414(h) of the Internal Revenue
Code of 1986, as amended, these contributions shall not be included as gross
income of the employee until such time as they are distributed or made
available.
(Source: P.A. 97-894, eff. 8-3-12.)
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40 ILCS 5/13-503
(40 ILCS 5/13-503) (from Ch. 108 1/2, par. 13-503)
Sec. 13-503. Tax levy. Until fiscal year 2013, the Water Reclamation District shall annually
levy a tax upon all the taxable real property within the District at a rate
which, when extended, will produce a sum that (i) when added to the amounts
deducted from the salaries of employees, interest income on investments, and
other income, will be sufficient to meet the requirements of the Fund on an
actuarially funded basis, but (ii) shall not exceed an amount equal to the
total amount of contributions by the employees to the Fund made in the
calendar year 2 years prior to the year for which the tax is levied,
multiplied by 2.19, except that the amount of employee contributions made on
or after January 1, 2003 towards the purchase of additional optional benefits
under Section 13-304.1 shall only be multiplied by 1.00. Beginning in fiscal year 2013, the District shall annually
levy a tax upon all the taxable real property within the District at a rate
which, when extended, will produce a sum that (i) will be sufficient to meet the Fund's actuarially determined contribution requirement, but (ii) shall not exceed an amount equal to the total employee contributions 2 years prior multiplied by 4.19. The actuarially determined contribution requirement is equal to the employer's normal cost plus the annual amount needed to amortize the unfunded liability by the year 2050 as a level percent of payroll. The funding goal is to attain a funded ratio of 100% by the year 2050, with the funded ratio being the ratio of the actuarial value of assets to the total actuarial liability. The tax shall be
levied and collected in the same manner as the general taxes of the District.
The tax shall be exclusive of and in addition to the amount of tax the
District is now or may hereafter be authorized to levy for general purposes
under the Metropolitan Water Reclamation District Act or under any other
laws which may limit the amount of tax for general purposes. The county
clerk of any county, in reducing tax levies as may be authorized by law,
shall not consider any such tax as a part of the general tax levy for
District purposes, and shall not include the same in any limitation of the
percent of the assessed valuation upon which taxes are required to be extended.
Revenues derived from the tax shall be paid to the Fund for the benefit
of the Fund, except for the amount of revenue to be retained by the District and used to pay principal and interest on bonds issued for the sole purpose of making contributions to the Fund as set forth in Section 9.6a of the Metropolitan Water Reclamation District Act.
If the funds available for the purposes of this Article are insufficient
during any year to meet the requirements of this Article, the District may
issue tax anticipation warrants or notes, as provided by law, against the
current tax levy.
The Board shall submit annually to the Board of Commissioners of the
District an estimate of the amount required to be raised by taxation for
the purposes of the Fund. The Board of Commissioners shall review the
estimate and determine the tax to be levied for such purposes.
(Source: P.A. 102-707, eff. 4-22-22.)
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40 ILCS 5/13-503.5 (40 ILCS 5/13-503.5) Sec. 13-503.5. Delinquent contributions; deduction from payments of State funds to the employer. If the employer fails to transmit to the Fund contributions required of it under this Article by December 31st of the year in which such contributions are due, the Fund may, after giving notice to the employer, certify to the State Comptroller the amounts of the delinquent payments in accordance with any applicable rules of the Comptroller, and the Comptroller must, beginning in payment year 2016, deduct and remit to the Fund the certified amounts from payments of State funds to the employer. The State Comptroller may not deduct from any payments of State funds to the employer more than the amount of delinquent payments certified to the State Comptroller by the Fund.
(Source: P.A. 99-8, eff. 7-9-15.) |
40 ILCS 5/13-504
(40 ILCS 5/13-504) (from Ch. 108 1/2, par. 13-504)
Sec. 13-504.
Mortality tables and interest rates.
All reserves and
liabilities for annuities under this Article shall be computed according to
actuarial tables adopted by the Board.
At least once every 5 years a valuation shall be made by the actuary of
the liabilities and reserves of the Fund, including a general investigation
of the mortality, retirement, employment turnover, interest, and earnable
compensation experience of the Fund, and a report thereon shall be made to
the Board. The actuary shall recommend to the Board such actuarial tables
and rates of interest as are required in the operation of the Fund.
For computing retirement and surviving spouse's annuities, all employee
contributions in the form of salary deductions or otherwise, and all
concurrent contributions by the District shall be improved in an amount
equal to 3% per annum from the date contributions become due or have
accrued to the date an annuity is applied for and becomes payable.
(Source: P.A. 87-794.)
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40 ILCS 5/Art. 13 Pt. VI
(40 ILCS 5/Art. 13 Pt. VI heading)
Part VI.
Refunds, Re-entry and Restoration of Rights.
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40 ILCS 5/13-601 (40 ILCS 5/13-601) (from Ch. 108 1/2, par. 13-601)
Sec. 13-601. Refunds.
(a) Withdrawal from service. Upon withdrawal from service, an employee
who first became a member before January 1, 2011, who is under age 55 (age 50 if the employee first entered service before June
13, 1997), or an employee age 55 (age 50 if the employee first entered
service before June 13, 1997) or over but less than age 60 having less
than 20 years of service, or an employee age 60 or over having less than 5
years of service shall be entitled, upon application, to a refund of total
contributions from salary deductions or amounts otherwise paid under this
Article by the employee. An employee who first becomes a member on or after January 1, 2011, who withdraws before age 62 regardless of length of service, or who withdraws with less than 10 years of service regardless of age is entitled to a refund of total contributions from salary deductions or amounts otherwise paid under this Article by the employee. The refund shall not include interest credited to
the contributions. The Board may, in its discretion, withhold payment of a
refund for a period not to exceed one year from the date of filing an
application for refund.
(b) Surviving spouse's annuity contributions. A refund of all amounts
deducted from salary or otherwise contributed by an employee for the
surviving spouse's annuity shall be paid upon retirement to any employee
who on the date of retirement is either not married or is married but whose
spouse is not eligible for a surviving spouse's annuity paid wholly or in
part under this Article. The refund shall include interest on
each contribution at the rate of 3% per annum compounded annually from the
date of the contribution to the date of the refund.
(b-5) An annuitant who (i) retired prior to June 1, 2011, (ii) received a refund of surviving spouse's annuity contributions under subsection (b), and (iii) thereafter became and remains a party to a civil union or marriage, as described in Section 13-305, may, within a period of one year beginning 5 months after the effective date of this amendatory Act of the 100th General Assembly, and in accordance with any rules adopted by the Board and consents required by the Board, make an irrevocable election to re-establish rights to a surviving spouse annuity under Sections 13-305 and 13-306 or to alternative survivor's benefits under subsection (d) of Section 13-314, whichever is applicable, by paying to the Fund: (1) the total amount of the refund received for surviving spouse's annuity contributions; and (2) interest thereon at the actuarially assumed rate of return at the time of the election from the date of the refund to the date of repayment in full. Such election may only be made by the annuitant. The Fund shall allow the annuitant to repay the total amount of the refund, plus interest, over a period not to exceed 24 months. To the extent permitted by the Internal Revenue Code of 1986, as amended, and for federal and State tax purposes, if a member pays in monthly installments by reducing the monthly annuity by the amount of the otherwise applicable contribution, the monthly amount by which the annuitant's benefit is reduced shall not be treated as a contribution by the annuitant, but rather as a reduction of the annuitant's monthly annuity. In the event of the death of the annuitant prior to repayment of the total amount of the refund, plus interest, the amount owed as of the date of death shall be deducted from the spouse annuity by a reduction in the surviving spouse's monthly annuity. The death of the spouse or civil union partner prior to the annuitant's death shall not void the election. (c) Payment of Refunds After Death. Whenever any refund is payable after the death of the employee or annuitant as provided for in this Article, the refund shall be paid as follows: to the employee's surviving spouse, but if there is no surviving spouse then in accordance with the employee's written designation of beneficiary filed with the Board on the prescribed form before the employee's death. If there is no such designation of beneficiary, then to the employee's surviving children in equal parts to each. If there are no such children, the refund shall be paid to the heirs of the employee according to the law of descent and distribution of the State of Illinois.
If a personal representative of the estate has not been appointed within
90 days from the date on which a refund became payable, the refund may be
applied, in the discretion of the Board, toward the payment of the
employee's or the surviving spouse's burial expenses. Any remaining
balance shall be paid to the heirs of the employee according to the law of
descent and distribution of the State of Illinois.
Whenever the total accumulations to the account of an employee from employee contributions other than the contribution for the cost of living increase, including interest to the employee's date of withdrawal, have not been paid to the employee and surviving spouse as a retirement or spouse's annuity before the death of the employee and spouse, a refund shall be paid as follows: an amount equal to the excess of such amounts over the amounts paid on such annuities without interest on either such amount.
If a reversionary annuity becomes payable under Section 13-303, the
refund provided in this section shall not be paid until the death of the
reversionary annuitant and the refund otherwise payable under this section
shall be then further reduced by the amount of the reversionary annuity paid.
(d) In lieu of annuity. Notwithstanding the provisions set forth in
subsection (a) of this section, whenever an employee's or surviving
spouse's annuity will be less than $200 per month, the employee or
surviving spouse, as the case may be, may elect to receive a refund of
accumulated employee contributions; provided, however, that if the election
is made by a surviving spouse the refund shall be reduced by any amounts
theretofore paid to the employee in the form of an annuity.
(e) Forfeiture of rights. An employee or surviving spouse who receives
a refund forfeits the right to receive an annuity or any other benefit
payable under this Article except that if the refund is to a surviving
spouse, any child or children of the employee shall not be deprived of the
right to receive a child's annuity as provided in Section 13-308 of this
Article, and the payment of a child's annuity shall not reduce the amount
refundable to the surviving spouse.
(Source: P.A. 100-244, eff. 8-22-17.)
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