Section 1540.266  Unconditional Discharge other than by Dishonorable Discharge

 

a)         For purposes of Section 14-105(b)(2) of the Pension Code, “unconditional discharge other than by dishonorable discharge”, means:

 

1)         the member has not been discharged dishonorably from active-duty military service; and

 

2)         has either voluntarily separated from the military by completing their service obligation; or

 

3)         has been discharged due to their acceptance of a reserve commission enlistment; or

 

4)         has involuntarily separated from the military. 

 

b)         In the case of a service member’s discharge due to acceptance of a reserve commission enlistment, the date of discharge is the date such service member would have otherwise qualified to voluntarily separate from the military due to completing their regular service commission enlistment obligation.

 

c)         This term shall not include discharges from service in a reserve commission enlistment.

 

(Source:  Added at 47 Ill. Reg. 8026, effective May 24, 2023)

 

Section 1540.270  Written Appeals and Hearings

 

a)         Definition of Terms

 

"Authorized Representative" – a person representing a Petitioner in a written appeal or hearing.

 

"Executive Committee" – a committee consisting of one member of the Board of Trustees, the Chairperson of the Board or the Chairperson's designee, and the Executive Secretary of SERS or the Secretary's designee, which shall meet periodically for the purpose of hearing all administrative contested matters and making recommendations to the Board of Trustees who shall make the final decision.  At any time, the Chairperson of the Board or the Executive Secretary of SERS may appoint an alternate designee to serve on the committee in place of the designee that the Chairperson or Secretary has previously appointed.

 

"Executive Secretary" – the person designated as the official custodian of all papers and documents filed in proceedings before the Executive Committee.

 

"Hearing" – the reconsideration by the Executive Committee of the initial disposition of a claim, at which the Petitioner appears in person or by an Authorized Representative, either at the hearing or by video or audio conference.

 

"Hearing Officer" − a member of the Executive Committee or an attorney retained by the Executive Committee for the purpose of conducting hearings and communicating the Executive Committee's findings of fact, conclusions of law, and recommendation to the Board of Trustees.

 

"Legal Action" − any action, following the final denial by the Board of Trustees, in which a member is seeking relief in State or federal court for a disputed claim.

 

"Petition" – a written request made by a Petitioner or Authorized Representative for a hearing, a written appeal, a rehearing, or a written reappeal before the Executive Committee.

 

"Petitioner" – an individual who requests by Petition:

 

a hearing or a written appeal before the Executive Committee for reconsideration of the initial disposition of a claim; or

 

a rehearing or written reappeal before the Executive Committee for reconsideration of the disposition of a hearing or written appeal.

 

"Rehearing" – the reconsideration by the Executive Committee of the disposition of a hearing or written appeal, at which the Petitioner appears in person or by an Authorized Representative, either at the hearing or by video or audio conference.

 

"System" – the State Employees' Retirement System of Illinois.

 

"Video or Audio Conference" − hearing or rehearing before the Executive Committee for which the Petitioner or Authorized Representative is not physically present and the proceeding before the Executive Committee is conducted through video and audio technology.

 

"Written Appeal" – the reconsideration by the Executive Committee, based upon written evidence, of the initial disposition of a Petitioner's claim, at which the Petitioner does not appear either in person or by an Authorized Representative.

 

"Written Reappeal" – the reconsideration by the Executive Committee, based upon written evidence, of the disposition of a hearing or written appeal, at which the Petitioner does not appear either in person or by an Authorized Representative.

 

b)         Administrative Determination

The administrative staff of the System shall be responsible for the daily functioning of the System, including the processing of all claims for benefits payable by the System, all claims for service credits granted by the System, and all claims against or relating to the System.

 

c)         Right of Appeal

Any member, annuitant or beneficiary adversely affected by the initial disposition of a claim by the System's staff may have the disposition of the claim reconsidered either at a hearing before the Executive Committee or by filing a Written Appeal with the Executive Committee.

 

d)         Written Appeals to Executive Committee

 

1)         Communication to Executive Committee

All Petitions for Written Appeal shall be directed to the Executive Secretary of SERS at its Springfield Office and must be received within 30 days following the notification of the initial disposition of the claim.

 

2)         Form of Written Appeal

A Petition for a Written Appeal shall set forth the name and address of the Petitioner, the name and address of the Petitioner's Authorized Representative if applicable, a brief statement of the facts forming the basis of the written appeal, which must include any new or additional evidence, and the relief sought.

 

3)         Disposition of Written Appeal

 

A)        The Executive Committee shall consider a Petition for Written Appeal at the next regular meeting of the Executive Committee more than 15 days after the receipt of the Petition.

 

B)        Following the written appeal and the receipt of all supplemental material requested, the recommendation of the Executive Committee shall be communicated in writing to the Petitioner and Authorized Representative, if applicable, and the appropriate action shall be implemented by the Executive Committee subject to the approval of the Board of Trustees.

 

4)         Continuances and Extensions of Time

Continuances and extensions of time shall be granted by the Executive Committee when it is demonstrated that obtaining and presenting additional evidence is necessary to render a fair and equitable decision on the written appeal before the Committee.

 

5)         Minutes and Records of Written Appeals

 

A)        Minutes of every meeting of the Executive Committee and a record of all written appeals before the Executive Committee shall be kept by the Executive Secretary of SERS at its Springfield Office.

 

B)        The Executive Secretary of SERS shall be the official custodian of all papers and documents filed in proceedings before the Executive Committee.

 

e)         Hearings Before the Executive Committee

 

1)         Communication to the Executive Committee

All Petitions for Hearings shall be made to the Executive Secretary of SERS at its Springfield Office and must be received within 30 days following the notification of the initial disposition of the claim.

 

2)         Appearance

Any Petitioner or Authorized Representative may appear at a hearing before the Executive Committee, either in person or by video or audio conference.

 

3)         Form of Petition

Petitions may be informal or formal and shall be presented by letter or other writing.  A petition shall set forth the name and address of the Petitioner, the name and address of the Authorized Representative, if applicable, a brief statement of the facts forming the basis of the petition, which must include any new or additional evidence and the relief sought.

 

4)         Notice of Hearing

Upon scheduling of a hearing before the Executive Committee, a Petitioner shall be provided with written notice of: the date, time and place of the hearing; the subject matter of the hearing; and relevant procedural and substantive statutory and regulatory provisions.  Notice of the hearing shall also inform the Petitioner that the Petitioner will be afforded the opportunity to provide a statement of the Petitioner's position, present oral evidence, and conduct examination and cross-examination of witnesses as necessary for full and true disclosure of the facts.  In the absence of the Petitioner, the Executive Committee will consider the Petitioner's Petition and such other matters as may be properly brought before it at the hearing.

 

5)         Prehearing Conferences

 

A)        Upon written request by the Executive Committee or a Petitioner or Authorized Representative, a conference shall be conducted for the purpose of formulating issues and considering:

 

i)          The simplification of issues;

 

ii)         The amendment of pleadings;

 

iii)        The making of admissions of facts or stipulations for the purpose of avoiding the unnecessary introduction of evidence;

 

iv)        The procedure at the hearing;

 

v)         The limitation of the number of witnesses; and

 

vi)        Such other matters as may aid in the simplification of the evidence and disposition of the proceeding.

 

B)        The persons attending the prehearing conference may enter into a written stipulation as to matters decided in the prehearing conference.

 

C)        No minutes shall be kept of the prehearing conference.  Facts disclosed in the course of the prehearing conferences are privileged and, except by agreement, shall not be used against the Petitioner or any other party attending the prehearing conference either before the Executive Committee or elsewhere unless fully substantiated by other evidence.

 

6)         Conduct of Hearings

 

A)        Hearings shall be conducted before the Executive Committee by the Hearing Officer and shall be of an informal nature.

 

B)        The Hearing Officer shall direct all parties to enter their appearances on the record.  The Hearing Officer shall conduct a full and fair hearing, receive testimony of the claimant and admit exhibits into evidence, avoid delay, maintain order and make a sufficient record for a full and true disclosure of the facts and issues.  To accomplish these ends, the Hearing Officer shall make all procedural and evidentiary rulings necessary for the conduct of the hearing.

 

C)        Parties may, by written stipulation, agree upon any facts involved in the proceeding.  The facts stipulated shall be considered as evidence in the proceeding.

 

D)        Irrelevant material or unduly repetitious evidence shall be excluded.

 

7)         Documentary Evidence

Whenever possible, documents and exhibits shall be introduced by stipulation of the parties.  Originals of documents shall be introduced into evidence with leave of the Hearing Officer to substitute the originals with copies.  Whenever possible, the parties shall interchange copies of exhibits or other pertinent material before the hearing at which they are to be offered.

 

8)         Briefs and Oral Arguments

Written briefs and oral arguments shall be allowed at the request of the Petitioner.  The time limitations upon the oral argument shall be determined by the Hearing Officer having regard to the magnitude and complexity of the issues involved and the other business of the Executive Committee.  All testimony shall be taken under oath before an officer authorized to administer oaths by the laws of this State or of the United States or of the place where the testimony is to be given.

 

9)         Disposition of Hearing

Following the hearing and receipt of all supplemental material requested, the Executive Committee, following its next scheduled meeting, shall communicate its recommendation in writing to the Petitioner and Authorized Representative, if applicable.  The recommendation shall contain a sufficient statement of the facts, all necessary findings of fact and conclusions of law, and a suggested decision or decisions of the Board of Trustees.  The appropriate action shall be implemented by the Executive Committee subject to the approval of the Board of Trustees.

 

10)        Continuances and Extensions of Time

Continuances and extensions of time shall be granted by the Executive Committee or the Hearing Officer when it is demonstrated that obtaining and presenting additional evidence or witnesses is necessary to render a fair and equitable decision on the hearing before the Executive Committee.

 

11)        Minutes and Record of Hearing

 

A)        Minutes of every meeting of the Executive Committee and a record of all hearings before the Executive Committee shall be kept by the Executive Secretary of SERS at its Springfield Office.

 

B)        Two records of proceedings shall be kept that shall be in the form of a non-verbatim bystander's record of the proceedings and either a stenographic transcription or a tape recording. The record shall be available to the Petitioner or Authorized Representative prior to the Executive Committee making its recommendations.

 

C)        The Executive Secretary of SERS shall be the official custodian of all papers and documents filed in proceedings before the Executive Committee.

 

12)        Disqualification; Ex Parte Communications

 

A)        Disqualification

 

i)          A Hearing Officer or other member of the Executive Committee may be disqualified on grounds of bias or conflict of interest. A motion to disqualify a Hearing Officer or other member of the Executive Committee for bias or conflict of interest should be made to the Hearing Officer by any party to the hearing at least one week prior to the commencement of the hearing. The motion shall be heard, considered, and ruled upon by the Hearing Officer or, when necessary, by the Executive Committee at or prior to the commencement of the hearing. The movant shall have the burden of proof with respect to the motion to disqualify. Either an adverse ruling or the fact that a Hearing Officer or other member of the Executive Committee is an employee of the System or has a contract with the System, standing alone, shall not constitute bias or conflict of interest.

 

ii)         The Executive Director may not be called as a witness unless it is demonstrated that the Executive Director has relevant noncumulative personal knowledge of facts bearing upon the claim. The Executive Director may not be disqualified as a member of the Executive Committee on the basis that the Executive Director is responsible for the overall administration of the System.

 

iii)        In the event that the Executive Committee is reduced to fewer than two members, the Board President may appoint another person to the Executive Committee. 

 

B)        Ex Parte Communications Prohibited. Except in the disposition of matters that the System is authorized by law to entertain or dispose of on an ex parte basis, employees of the System and the members of the Executive Committee shall not, after receiving notice of a hearing in a contested matter, communicate, directly or indirectly, in connection with any issue of fact, with any party, or in connection with any other issue with any party, or the representative of any party, except upon notice and opportunity for all parties to participate. However, an employee of the System may communicate with other employees of the System and an employee of the System or member of the Executive Committee may have the aid and advice of one or more assistants. An ex parte communication received by any employee of the System and member of the Executive Committee shall be made a part of the record of the pending matter, including all written communications, all written responses to the communications, and a memorandum stating the substance of all oral communications and all responses made and the identity of each person from whom the ex parte communication was received. Communications regarding matters of procedure and practice, such as the format of pleadings, number of copies required, manner of service, and status of proceedings, are not considered ex parte communications. [5 ILCS 100/10-60] 

 

f)         Rehearings and Written Reappeals

 

1)         Purpose of Rehearing and Written Reappeal

The Executive Committee will grant a rehearing or written reappeal by majority approval only for the purpose of considering new or additional evidence not previously available.

 

2)         Procedures for Rehearing

The procedures set forth in subsection (e) (Hearings Before the Executive Committee) shall apply to rehearings, except that a Petition for a Rehearing must be received within 90 days following the notification of the final decision of the Board of Trustees with respect to the recommendation of the Executive Committee.

 

3)         Procedures for Written Reappeal

The procedures set forth in subsection (d) (Written Appeals to Executive Committee) shall apply to written reappeals, except that a Petition for a Written Reappeal must be received within 90 days following the notification of the final decision of the Board of Trustees with respect to the recommendation of the Executive Committee.

 

g)         Decisions of Board of Trustees

 

1)         Decisions of the Board of Trustees shall be final administrative decisions subject to the provisions of the Administrative Review Law [735 ILCS 5/Art. III].

 

2)         Communication to Petitioner

The decision of the Board of Trustees shall be communicated in writing to the Petitioner and Authorized Representative, if applicable.

 

h)         A request for a retirement annuity or a refund of contributions shall be granted when legal action is pending on a disputed disability claim.  Should the member receive a favorable decision on the legal action against the System and request additional disability benefits with regard to the disputed claim for a period beyond the effective date the retirement annuity or refund of contributions, the member must repay all retirement benefits or refund of contributions within 30 days after notification by the System of the amount due.

 

(Source:  Amended at 47 Ill. Reg. 16043, effective October 26, 2023)

 

Section 1540.280  Availability for Public Inspection (Recodified)

 

(Source:  Recodified to 2 Ill. Adm. Code 2375.10 at 8 Ill. Reg. 15902)

 

Section 1540.290  Procedure for Submission, Consideration and Disposition of Petitions Seeking the Promulgation, Amendment or Repeal of these Rules and Regulations (Recodified)

 

(Source:  Recodified to 2 Ill. Adm. Code 2375.110 at 8 Ill. Reg. 15902)

 

Section 1540.300  Organization of the State Employees' Retirement System (Recodified)

 

(Source:  Recodified to 2 Ill. Adm. Code 2375.210 at 8 Ill. Reg. 15902)

 

Section 1540.310  Amendments

 

This Part may be changed or amended at any regular or special meeting of the Board by a majority vote of the membership of the Board.

 

Section 1540.320  Optional Forms of Benefits - Basis of Computation

 

For purposes of computing optional forms of benefit provided in the Retirement Act, the interest used shall be 8.50% per annum and the mortality rate shall be 52% of the rate in Table A, column A plus 48% of the rate in Table A, column B for members and 48% of the rate in Table A, column A plus 52% of the rate in Table A, column B for surviving beneficiaries of members.

 

(Source:  Amended at 23 Ill. Reg. 3824, effective March 9, 1999)

 

Section 1540.330  Board Elections

 

In accordance with the Illinois Pension Code, an election for 2 trustees, one contributing member with at least 8 years of creditable service and one annuitant who has been an annuitant for at least one full year, will be held every 5 years beginning in 1986 and an election for 4 trustees, three contributing members with at least 8 years of creditable service and one annuitant who has been an annuitant for at least one full year, will be held every 5 years beginning in 2009.

 

a)         Definitions of Terms

For purposes of this Section, the following definitions shall apply:

 

"Annuitant" − Any annuitant, as defined in Section 14-103.07 of the Code.

 

"Annuitant who has been an annuitant for at least one full year" means an annuitant who has received at least 12 monthly installments of their retirement annuity on or before the date upon which the annuitant is sworn into office as a trustee.

 

"Code" means the Illinois Pension Code [40 ILCS 5].

 

"Contributing member " − Any member of the System, as defined in Section 14-103.06 of the Code  who is currently contributing to the System.

 

"Contributing member with at least 8 years of creditable service" – Any contributing member who, on or before the date upon which they are sworn into office as a trustee, has obtained at least 8 years of creditable service, as defined in Section 14-103.15 of the Code.

 

b)         Nominations

Qualified persons for the position of Contributing Member Trustee or Annuitant Trustee shall file a Statement of Candidacy and a trustee petition on a form prescribed by the Board, in accordance with the Code.  Petitions shall be signed by not fewer than 400 contributing members for a Contributing Member Trustee candidate and by not fewer than 100 annuitants for an Annuitant Trustee candidate and indicate the addresses of the signators opposite their names. Nominating petitions shall be circulated and certified only by contributing members or annuitants for each respective trustee candidate.  Forms shall be secured from the Executive Secretary and filed in accordance with the Calendar (see subsections (f) and (i)).  Trustee petitions and the Statement of Candidacy must be filed at the System's Springfield office, 2101 South Veterans Parkway, Springfield, Illinois, in person or by mail during the office hours of 8:00 a.m. to 4:30 p.m.

 

c)         Lottery for Ballot Position

All petitions filed on or before the first day for filing shall be deemed filed as of 8:00 a.m. on the first day.  All petitions received thereafter shall be deemed as filed in the order of actual receipt.  Where 2 or more petitions are received simultaneously for the same office, the State Employees' Retirement Board, with whom petitions are filed, shall break ties and determine the order of filing, by means of a lottery.

 

d)         Procedures on Objections

The Board of Trustees of the System shall review and rule on all written petitions filed objecting to any candidate's qualifications as outlined in Section 14-134 of the Code. Petitions objecting shall be made in accordance with 80 Ill. Adm. Code 1540.270(d)(3). Nomination papers shall be deemed valid unless objections are received by the System in writing within 5 days after the last day for filing nomination papers.  Not later than 12:00 noon on the next business day, after receipt of the objector's petition, the Executive Secretary shall deliver or transmit the nomination papers and original objector's petition to the Chairman of the Board and a copy of the objector's petition to the candidate whose nomination papers are the subject of the objection.  Not later than 12:00 noon on the second business day after receipt of the objector's petition, the Chairman of the Board shall call for a meeting to consider the petition by giving notice to each of the members of the Board, the objector and candidate.  The meeting of the Board shall not be less than 3 nor more than 5 days after receipt of objector's petition by the Chairman of the Board.

 

e)         Elections

After the Executive Secretary has certified the candidates, separate ballots shall be prepared for the Contributing Member Trustee and for the Annuitant Trustee.  Candidate position shall be in the order that the petitions are filed, or as determined by the lottery.  Ballots will be mailed on election day to all qualified Contributing Members and Annuitants.  All ballots must be returned, sealed in the envelope provided, so as to be received by May 30 of the election year.  In order to be eligible to vote, a contributing member must make contributions during the first payroll period in March of the election year.  In order to be eligible to vote, an annuitant must receive a retirement annuity for March of each election year.

 

f)         Calendar of Events

 

1)         Beginning in 1986 and every 5 years thereafter, and in 2014 and every 5 years thereafter, the following timelines shall apply:

 

A)        JANUARY 2 − Forms available from the Executive Secretary for Statement of Candidacy and petitions.

 

B)        JANUARY 15 − Last day Executive Secretary shall publish in a newsletter the dates and times when candidates may receive petitions.  The pre-filing notice must also include the time and location of the filing period for nominating petitions.

 

C)        FEBRUARY 11 − First day for candidates to file nomination papers for trustee offices in the office of the Executive Secretary.

 

D)        FEBRUARY 19 − Last day for candidates to file nomination papers for trustee offices in the office of the Executive Secretary.

 

E)        FEBRUARY 24 −

 

i)          Last day for filing objections to the nomination papers of candidates for the office of trustees in the office of the Executive Secretary.

 

ii)         Notice shall be given by telephone, facsimile or electronically of the time and place for conducting a lottery when 2 or more petitions are received simultaneously for the same office. Notice shall be given by the Executive Secretary to all candidates involved in the lottery.

 

F)         FEBRUARY 28 − Lottery shall be conducted by the Executive Secretary when 2 or more petitions are received simultaneously for the same office.

 

G)        MARCH 1 − Last day for candidates to withdraw their candidacy in the office of the Executive Secretary.

 

H)        MAY 1 − or, if Sunday, then May 2 − Election

 

I)         MAY 30 − Last day all voted ballots shall be received by the Board or its designate.

 

J)         JUNE 6 − Last day for canvassing of election results by the Board or its designated agent.

 

K)        JUNE 18 − Last day for the Board to proclaim the results of the election and to issue the certificates of election to the winners.

 

2)         If any of these dates falls on a Saturday, Sunday or holiday, the next succeeding business day for the System shall be the effective date.

 

g)         Ballot Security

Upon receiving the official voted ballots, they shall be secured in a locked location until the canvassing begins.

 

h)         Board Notification

 

1)         The Board or its designated agent shall canvass the ballots and certify the results.  Each candidate may have two observers present during the ballot canvassing.

 

2)         The candidate or candidates receiving the most votes for the office of Contributing Member Trustee will be declared the winner.  The candidate receiving the most votes for the office of the Annuitant Trustee will be declared the winner.

 

3)         If a candidate should become ineligible for office after the submission of the Statement of Candidacy and petitions, but before the election, the Board shall notify the candidate of the ineligibility and remove the candidate's name from the ballot.  If a candidate should become ineligible for office after the mailing of ballots, the candidate's votes will not be counted and the eligible candidate receiving the most votes shall be declared the winner.

 

4)         Ballots will be retained for 60 days following the certification.  The ballots can then be destroyed, unless litigation is pending.

 

5)         In case of a tie vote between 2 or more candidates, the Board shall determine the winner by means of a lottery to break the tie.

 

6)         The Board will proclaim the results of the election and issue Certificates of Election to the winners.

 

i)          Special Election Calendar of Events

The special election to be held in 2009 to fill the 4 new elected trustee positions shall be subject to the same procedures outlined in this Section, except as may need to be modified to comply with the following calendar for the special election:

 

1)         APRIL 16 − First day for candidates to file nomination papers for trustees offices in the office of the Executive Secretary.

 

2)         MAY 11 − Last day for candidates to file nomination papers for trustees offices in the office of the Executive Secretary.

 

3)         MAY 15 − Lottery shall be conducted by the Executive Secretary when 2 or more petitions are received simultaneously for the same office.

 

4)         JUNE 1 − Election

 

5)         JUNE 26 − Last day all voted ballots shall be received by the Board or its designate.

 

6)         JULY 2 − Last day for canvassing of election results by the Board or its designated agent and for the Board to proclaim the results of the election and to issue the certificates of election to the winners.

 

(Source:  Amended at 45 Ill. Reg. 6848, effective May 24, 2021)

 

Section 1540.331  Board Vacancies

 

When a vacancy occurs for an active or retired elected trustee position, the Board shall appoint a qualifying member to fill the vacancy for the remainder of that term.  The announcement of the vacancy and the process to fill such vacancy shall be published on the System's website no less than 45 days before the vacancy will be filled.

 

a)         If the vacancy is an active member trustee position, an email shall be sent to each active member's email address on file notifying such members of the vacancy as prescribed under Section 14-134 of the Illinois Pension Code, the eligibility criteria to fill such vacancy, as described in the Act and this Section, and a summary of the process to fill such vacancy.  An active member is eligible to fill a vacancy to the position of an active contributing member trustee provided that the member has at least eight years of creditable service, supplies a resume and statement that summarizes their interest in filling the vacancy, and provides a petition of no less than 250 signatures of active contributing members in support of their candidacy. 

 

b)         If the vacancy is a retired member trustee position, an email shall be sent to each retired member's email address on file notifying each retried member of the vacancy, the eligibility criteria to fill such vacancy as described in the Act and this Section, and a summary of the process to fill such vacancy.  A retired member is eligible to fill such vacancy if the member supplies a resume and statement that summarizes their interest in filling the vacancy, and provides a petition of no less than 100 signatures of retired members in support of their candidacy.

 

c)         A candidate must deliver the documentation and petition requirements of this Section to the System's primary office at least 10 days before the Board meeting in which such vacancy is to be filled.

 

d)         At the next scheduled meeting of the Board, eligible members who submit the required documents will be considered by the Board for appointment. The affirmative votes of seven trustees are required to appoint a candidate. The Board appointment will be valid for the remainder of that term.

 

(Source:  Added at 48 Ill. Reg. 13838, effective August 27, 2024)

 

Section 1540.340  Excess Benefit Arrangement

 

a)         Adoption and Nature of the Arrangement.

 

1)         The Arrangement.  The State Employees' Retirement System of Illinois, pursuant to the authority granted to it by 40 ILCS 5/1-116, hereby adopts the State Employees' Retirement System of Illinois Excess Benefit Arrangement effective January 1, 1997.

 

2)         Nature of the Arrangement.  This Arrangement is a portion of a governmental plan (as that term is defined in section 414(d) of the Internal Revenue code of 1986, as amended, and section 3(32) of the Employee Retirement Income Security Act of 1974, as amended) and is administered as a qualified governmental excess benefit arrangement pursuant to the provisions of Code section 415(m).

 

3)         Limitation Year.  The System adopts the calendar year as the limitation year for the purpose of this Arrangement and Code Section 415.

 

b)         Definitions.  Each word or phrase defined in this subsection (b) shall have the following meaning whenever such word or phrase is capitalized and used herein unless a different meaning is clearly required by the context of the Arrangement.  The definition of any term in the singular may also include the plural.

 

1)         "Arrangement" shall mean the State Employees' Retirement System of Illinois Excess Benefit Arrangement as from time to time amended or restated.

 

2)         "Code" shall mean the Internal Revenue Code of 1986, as amended.

 

3)         "Effective Date" shall mean January 1, 1997.

 

4)         "Limitation Year" shall mean that period for which all calculations and determinations of benefits and contribution limits will be made under Code Section 415 and this Arrangement.

 

5)         "Maximum Benefit" shall mean the monthly equivalent of the maximum benefit permitted by Code section 415 to be paid a Participant under the Retirement Plan.

 

6)         "Participant" shall mean a person who is an "annuitant" as that term is defined in [40 ILCS 5/14-103.07] or a "beneficiary" as that term is defined in [40 ILCS 5/14-103.08].

 

7)         "Retirement Plan" shall mean the retirement plan administered by the State Employees' Retirement System of Illinois pursuant to [40 ILCS 5/14-101].

 

8)         "System" shall mean the State Employees' Retirement System of Illinois.

 

9)         "Unrestricted Benefit" shall mean the maximum monthly Normal or Early Retirement Benefit or Disability Benefit payable under Article 14 of the Illinois Pension Code [40 ILCS 5/14] determined without regard to the limitation imposed under section 415 of the Code.

 

c)         Benefits.

 

1)         Retirement Benefit.  Upon the Normal retirement date of a Participant, as provided under the Retirement Plan, such Participant shall be entitled to a monthly benefit equal in amount to his or her Unrestricted Benefit less the Maximum Benefit.

 

2)         Early Retirement Benefit.  Upon the early retirement of a Participant, as provided under the Retirement Plan, such Participant shall be entitled to a monthly benefit equal in amount to his or her Unrestricted Benefit less the Maximum Benefit.

 

3)         Disability Benefit.  If a Participant is unable to work because of an illness or injury with an employer that participates in the Retirement Plan and as a result is entitled to a disability benefit provided under the Retirement Plan, such a Participant shall be entitled to a monthly benefit equal to his or her Unrestricted Benefit less the Maximum Benefit.

 

4)         Spouse's Pension Benefit.  Subject to subsection (c)(5) of this Section, upon the death of a Participant whose spouse is eligible for a pre- or post- retirement surviving spouse benefit under the Retirement Plan, the Participant's surviving spouse shall be entitled to a monthly benefit equal to the surviving spouse benefit determined in accordance with the provisions of the Retirement Plan without regard to the limitations under Code section 415 less the Maximum Benefit.

 

5)         Benefit Payment.  A retirement benefit payable under this subsection shall be paid at such time or times and in such form to the Participant as the benefit under the Retirement Plan would be paid.

 

d)         Administration of the Arrangement.

 

1)         Administrator.  The Arrangement shall be administered by the System which shall have the authority to interpret the Arrangement and issue such policies as it deems appropriate. All provisions set forth in the Retirement Plan with respect to the Administrative powers and duties of the System, expenses of administration, and procedures for filing claims shall also be applicable with respect to the Arrangement.  The System shall have the duty and responsibility to maintain records making the requisite calculations and disbursing the payments hereunder through the Comptroller of the State of Illinois.  The System's interpretations, determinations, regulations, and calculations shall be final and binding on all persons and parties concerned.

 

2)         Amendment and Termination.  The System may amend or terminate the Arrangement at any time, provided, however, that no such amendment or termination shall adversely affect a benefit to which a terminated or retired Participant or his or her beneficiary is entitled under subsection (c) of this Section prior to the date of such amendment or termination unless the Participant becomes entitled to an amount equal to such benefit under another arrangement plan or practice adopted by the System.

 

3)         Funding.  The System will pay all benefits arising under this Arrangement and all costs, charges and expenses relating thereto through appropriations received from the State of Illinois, and miscellaneous income of the System, except those costs normally borne by other agencies or offices of the State of Illinois.  No provision shall at any time be made with respect to segregating any assets of the System, or of any employer for payment of any benefits hereunder.  No Participant, or any other person, shall have any interest in any assets or miscellaneous income of the System, the State, or of any employer by reason of the right to receive a benefit under the Arrangement.

 

4)         Non-assignability of Benefits.  The benefits payable hereunder or the right to receive future benefits under the Arrangement shall not be subject to judgment, execution, garnishment, attachment or other seizure by process, in bankruptcy or otherwise, nor to sale, pledge, mortgage or other alienation, and shall not be assignable to the same extent as provided for in [40 ILCS 5/14-147].

 

5)         Terms of Arrangement.  Nothing contained herein shall be construed as providing for assets to be held in trust or escrow or any other form of asset segregation for the Participant or for any other person or persons to whom benefits are to be paid pursuant to the terms of this Arrangement, the Participant's only interest hereunder being the right to receive the benefits set forth herein.  To the extent the Participant or any other person acquires a right to receive benefits under this Arrangement, such right shall be no greater than the right of any unsecured, general creditor of the State of Illinois.

 

6)         Applicable Law.  All questions pertaining to the construction, validity, and effect of this Arrangement shall be determined in accordance with the laws of the State of Illinois and, unless inconsistent, with the laws of the United States.

 

7)         Forfeiture Provisions.  All rights to any benefits payable under this Arrangement, including the payment of any benefit installments, shall be immediately forfeited if the Participant's right to receive an annuity benefit under the Retirement Plan is terminated in accordance with [40 ILCS 5/14-149].

 

(Source:  Added at 21 Ill. Reg. 4992, effective April 1, 1997)

 

Section 1540.350  Qualified Illinois Domestic Relations Orders (QILDRO)

 

a)         Definitions

 

1)         The definitions in Section 1-119(a) of the Illinois Pension Code (Code) [40 ILCS 5] shall apply to this Section.

 

2)         "Death Benefit" in Section 1-119(a)(2) of the Code includes a lump sum payment described in Sections 14-116, 14-117 and 14-128 of the Code.

 

3)         "Member's Refund" in Section 1-119(a)(5) of the Code does not include an error refund as defined in subsection (a)(4) of this Section.

 

4)         "Error Refund" as used in this Section includes:

 

A)        a refund paid to a member as the result of an error in a payment to the System;

 

B)        an interest rebate; or

 

C)        a refund paid to a member as the result of the member's failing to complete the required contributions necessary to purchase or reinstate  service credit.

 

5)         "Disability Benefit" in Section 1-119(a)(3) of the Code includes:

 

A)        an occupational disability benefit under Section 14-123 of the Code;

 

B)        a temporary disability benefit under Section 14-123.1 of the Code; or

 

C)        a nonoccupational disability benefit under Section 14-124 of the Code.

 

6)         "Member's Retirement Benefit" as used in this Section means the total amount of the retirement benefit as defined in Section 1-119(a)(8) of the Code that would be payable to the member in the absence of a QILDRO.

 

7)         "Partial Member's Refund" as used in this Section includes:

 

A)        a refund of widow/survivor benefit contributions;

 

B)        a refund of alternative formula contributions as a result of the member not completing sufficient service to qualify for the alternative formula retirement benefit; or

 

C)        a refund of early retirement contributions.

 

8)         "Permissive Service" in Section 1-119(a)(5.5) of the Code includes credit purchased by the member for military service, leaves of absence, early retirement incentives, contractual service, federal or out-of-state service, visually handicapped service, legislative staff intern service and unused sick and vacation time.

 

9)         "Regular Service" in Section 1-119(a)(7.5) of the Code includes service for which compensation was paid on a State payroll and purchased by the member for a qualifying period, short periods of employment, full or partial refund, emergency or temporary employment, and service credit where the member previously opted not to participate in the System and subsequently opted to purchase the service credit for the participation.

 

10)        "Accelerated Retirement Benefit" means an accelerated pension benefit payment under Sections 14-147.5 and 14-147.6 of the Code.

 

b)         Requirements for a Valid Qualified Illinois Domestic Relations Order

The System will accept a court order as a valid Qualified Illinois Domestic Relations Order, or QILDRO, that meets all of the following requirements:

 

1)         The order must be accompanied by a $50 non-refundable processing fee, by check payable to the State Employees' Retirement System.

 

2)         If the order applies to a person who became a member of the System before July 1, 1999, the order must be accompanied by the original Consent to Issuance of QILDRO signed by the member.

 

3)         The order must be a certified copy of an original order dated on or after July 1, 1999.

 

4)         The order must have been issued by an Illinois court of competent jurisdiction in a proceeding for declaration of invalidity of marriage, legal separation, or dissolution of marriage that provides for the distribution of property, or any proceeding to amend or enforce such a property distribution, prior to the death of the member.

 

5)         The order must contain the name, residence address, and Social Security number of the member.

 

6)         The order must contain the name, residence address, and Social Security number of the alternate payee.

 

7)         The order must identify the State Employees' Retirement System as the retirement system to which it is directed.

 

8)         The order must express any amount to be paid to the alternate payee from a member's retirement benefit as a dollar amount per month or as a percentage per month.

 

9)         The order must express any amount to be paid to the alternate payee from a member's refund or partial refund as a dollar amount or as a percentage of the refund.

 

10)         The order must express any amount to be paid to the alternate payee from a member's death benefit as a dollar amount or as a percentage of the death benefit.

 

11)         The order must apply only to benefits that are statutorily subject to QILDROs as provided in Section 1-119(b)(1) of the Code.

 

12)         The order and, if applicable, the Consent to Issuance of QILDRO must be in the form adopted by the System.

 

13)         No language may be added to, or omitted from, the QILDRO form or the consent form adopted by the System.

 

c)         Requirement for a Valid QILDRO Calculation Court Order

The System will accept a court order as a valid QILDRO Calculation Court Order or as a QILDRO Calculation Court Order that meets all of the following requirements:

 

1)         The order must be accompanied by a $50 non-refundable processing fee, with the check made payable to the State Employees' Retirement System.

 

2)         The order must be a certified copy of an original order dated on or after July 1, 2006.

 

3)         The order must have been issued by an Illinois court of competent jurisdiction in a proceeding for declaration of invalidity of marriage, legal separation, or dissolution of marriage that provides for the distribution of property, or any proceeding to amend or enforce such a property distribution.

 

4)         The order must contain the name, residence address, and Social Security number of the member.

 

5)         The order must contain the name, residence address, and Social Security number of the alternate payee.

 

6)         The order must identify the State Employees' Retirement System as the retirement system to which it is directed.

 

7)         The order must apply only to benefits that are statutorily subject to QILDRO Calculation Court Orders as provided in Section 1-119(b)(1) of the Code.

 

8)         The order must be in the form directed by Section 1-119 of the Code.

 

9)         No language may be added to, or omitted from, the QILDRO Calculation Court Order form adopted by the System.

 

10)         The QILDRO Calculation Court Order must not be completed in a manner that changes the intent of the QILDRO to which it relates.

 

d)         Required Form

 

1)         A QILDRO/QILDRO Calculation Court Order must be in the form directed by Section 1-119 of the Code.  The required QILDRO/QILDRO Calculation Court Order form is available from the System upon request or in PDF at www.state.il.us/srs.

 

2)         A QILDRO/QILDRO Calculation Court Order that is not in the form adopted by the System is invalid.

 

3)         A Consent to Issuance of QILDRO must be in the form adopted by the System as of the date that the QILDRO is received.  The required consent form is available from the System upon request or in PDF at www.state.il.us/srs.

 

4)         A consent form that is not in the form adopted by the System is invalid.

 

e)         Filing a QILDRO with the System

 

1)         A QILDRO should be sent to the System's Springfield Office, accompanied by the consent form, if applicable, and a $50 non-refundable processing fee.

 

2)         A QILDRO will be deemed received by the System on the date that it is received in the System's Springfield Office.

 

3)         Within 45 calendar days after receipt of a QILDRO, the System will review the order and notify the member and each alternate payee by first class mail that it has received the order, and whether the order is a valid QILDRO.  If the System determines that the order is not a valid QILDRO, the notice will specify the reason or reasons.

 

4)         A QILDRO that has been modified by the issuing court should be submitted in the same manner as the original QILDRO.  A separate $50 non-refundable processing fee is required for each modified QILDRO.

 

f)         Filing a QILDRO Calculation Court Order with the System

 

1)         A QILDRO Calculation Court Order should be sent to the System's Springfield Office, accompanied by a $50 non-refundable processing fee.

 

2)         A QILDRO Calculation Court Order will be deemed received by the System on the date that it is received in the System's Springfield Office.

 

3)         Within 45 calendar days after receipt of a QILDRO Calculation Court Order, the System will review the order and notify the member and each alternate payee by first class mail that it has received the order, and whether the order is a valid QILDRO Calculation Court Order. If the System determines that the order is not a valid QILDRO Calculation Court Order, the notice will specify the reason or reasons.

 

4)         A QILDRO Calculation Court Order that has been modified by the issuing court should be submitted in the same manner as the original QILDRO Calculation Court Order. A separate $50 non-refundable processing fee is required for each modified QILDRO Calculation Court Order.  A modified QILDRO Calculation Court Order will not affect the priority of the QILDROs on file.

 

g)         Benefits Affected by a QILDRO

 

1)         A QILDRO may apply only to the following benefits administered by the System:

 

A)        a monthly retirement benefit;

 

B)        a member's termination refund;

 

C)        a member's partial refund;

 

D)        a member's death benefit; and

 

E)        a member's accelerated retirement benefit.

 

2)         If a QILDRO specifies a dollar amount or percentage payable to an alternate payee from any partial member's refund that becomes payable, the aggregate amount paid to the alternate payee from all partial member's refunds shall not exceed the dollar amount or percentage specified in the QILDRO.

 

3)         A QILDRO shall not apply to any of the following: 

 

A)        a reversionary annuity that becomes payable following the death of the member;

 

B)        a survivor benefit;

 

C)        any disability benefit;

 

D)        an error refund; and

 

E)        any other benefit paid under Article 14 of the Code not specifically listed in subsection (g)(1) of this Section.

 

4)         If the space provided on the QILDRO form for the dollar amount or percentage the alternate payee is to receive from the member's retirement benefit, member's refund, partial member's refund or death benefit is left blank, then the alternate payee will receive no portion of the benefit or refund for which the space is left blank.

 

h)         Effect of a Valid QILDRO

 

1)         Retirement Benefit

 

A)        After the System has determined that a QILDRO applying to a retirement benefit on a dollar basis is valid, one of the following will occur:

 

i)          If the member has not yet started receiving benefits, the QILDRO will be placed in the member's file and will be implemented when the first affected benefit payment commences; or

 

ii)         If the member is already receiving benefits subject to the QILDRO, payment to the alternate payee will begin with the first payment to the member occurring at least 30 days after the QILDRO is received.

 

B)        After the System has determined that a QILDRO applying to a retirement benefit on a percentage basis is valid, that the member has not retired, and that a QILDRO Calculation Court Order will be needed, the following will occur:

 

i)          Within 45 days, the System will provide the information required in Section 1-119(h)(1.5)(B) of the Code;

 

ii)         When the member requests a retirement benefit, within 45 days after the System receives all information necessary to determine the actual benefit payable, the System will provide the information required in Section 1-119(h)(1.5)(C) of the Code; and

 

iii)        When the member requests a retirement benefit and there is no QILDRO Calculation Court Order on file, the System will advise the member and alternate payee of the need for a QILDRO Calculation Court Order. The System will determine an anticipated payment to the alternate payee based on information in the QILDRO, if it is possible to do so. The System will hold the alternate payee's anticipated payment and pay the member's monthly retirement benefit, less the amount held for the alternate payee, pending receipt of the QILDRO Calculation Court Order. Once the QILDRO Calculation Court Order is received, the System will adjust the amounts payable in accordance with the QILDRO Calculation Court Order and begin paying the alternate payee. However, if it is not possible for the System to determine an anticipated payment based only on the QILDRO, then neither the member nor the alternate payee will be paid until the QILDRO Calculation Court Order is received.

 

C)        After the System has determined that a QILDRO applying to a retirement benefit on a percentage basis is valid, and that the member is receiving a retirement benefit, the following will occur:

 

i)          Within 45 days, the System will provide the information required in Section 1-119 (h)(1.5)(C) of the Code; and

 

ii)         If there is no QILDRO Calculation Court Order on file, the System will advise the member and alternate payee of the need for a QILDRO Calculation Court Order. The System will determine an anticipated payment to the alternate payee based on information in the QILDRO, if it is possible to do so. The System will hold the alternate payee's anticipated payment and pay the member's monthly retirement benefit, less the amount held for the alternate payee, pending receipt of the QILDRO Calculation Court Order. Once the QILDRO Calculation Court Order is received, the System will adjust the amounts payable in accordance with the QILDRO Calculation Court Order and begin paying the alternate payee. However, if it is not possible for the System to determine an anticipated payment based only on the QILDRO, then neither the member nor the alternate payee will be paid until the QILDRO Calculation Court Order is received.

 

2)         Refund or Partial Refund

 

A)        After the System has determined that a QILDRO applicable to a member's refund or partial member's refund is valid, one of the following will occur:

 

i)          If the QILDRO provides that the refund or partial refund will be allocated on a dollar amount basis and the member has not applied for a refund or partial refund, the QILDRO will be placed in the member's file and will be implemented when payment of the affected refund or partial refund is made;

 

ii)         If the QILDRO provides that the refund or partial refund will be allocated on a percentage basis and a QILDRO Calculation Court Order is not on file when the member requests a refund or partial refund, the System will provide the refund or partial refund amount to the member and alternate payee and will advise of the need for a QILDRO Calculation Court Order. The System will hold the refund or partial refund until the QILDRO Calculation Court Order is received;

 

iii)        If a refund application is pending when the System receives a QILDRO that purports to apply to the refund but the refund payment has not yet been vouchered, the System will hold the portion of the refund that would be payable to the alternate payee until it receives clarification from the court as to whether the QILDRO is effective against that pending refund. It is the member's or alternate payee's responsibility to obtain clarification from the court and to notify the System of the court's clarification; or

 

iv)        If a refund payment has already been vouchered when the System receives a QILDRO that purports to apply to the refund, the QILDRO shall not be effective against that refund.

 

B)        "Vouchered", as used in subsection (h)(2)(A), means that the

voucher has been signed and dated, even though the warrant has not been issued by the Office of the State Comptroller.

 

3)         Death Benefit

 

A)        After the System has determined that a QILDRO applicable to a member's death benefit is valid, one of the following will occur:

 

i)          If the QILDRO provides that the death benefit will be allocated on a dollar amount basis and if the System has not received notice of the member’s death, the QILDRO will be placed in the member's file and will be implemented when payment of the affected death benefit is made;

 

ii)         If the QILDRO provides that the death benefit will be allocated on a percentage basis and a QILDRO Calculation Court Order is not on file when the System is notified of the death of the member, the System will provide the death benefit amount to the beneficiary on file and the alternate payee and will advise of the need for a QILDRO Calculation Court Order.  The System will hold the death benefit until the QILDRO Calculation Court Order is received.

 

•           If a death benefit application is pending when the System receives a QILDRO that purports to apply to the death benefit but the death benefit payment has not yet been vouchered, the System will hold the portion of the death benefit that would be payable to the alternate payee until it receives clarification from the court as to whether the QILDRO is effective against that pending death benefit. It is the alternate payee's responsibility to obtain clarification from the court and to notify the System of the court's clarification;

 

•           If a death benefit payment has already been vouchered when the System receives a QILDRO that purports to apply to the death benefit, the QILDRO shall not be effective against that death benefit;

 

B)        "Vouchered", as used in subsection (h)(3)(A), means that the voucher has been signed and dated, even though the warrant has not been issued by the Office of the State Comptroller.

 

4)         Accelerated Retirement Benefit

 

A)        For cases in which a valid QILDRO filed with the System grants prospective automatic annual increases to benefits of an alternate payee and the member subject to that QILDRO elects the accelerated retirement benefit under Section 14-147.6 of the Code, a supplemental order clarifying how the payment option is to be divided must be accepted before any of the retirement benefits payable to the member and alternative payee are vouchered.  If no supplemental order was provided by or on behalf of the member subject to the QILDRO at the time he or she applies for the accelerated retirement benefit under Section 14-147.6, the System will advise of the need for a supplemental order.  It is the member's or alternate payee's responsibility to obtain the supplemental order. 

 

B)        If a member subject to a valid QILDRO elects the accelerated retirement benefit under Section 14-147.5 of the Illinois Pension Code, a supplemental order clarifying how the accelerated retirement benefit is to be divided must be accepted by the System before any benefits payable to the member or the alternate payee may be vouchered.  If no supplemental order was provided by or on behalf of the member subject to the QILDRO at the time he or she applies for the accelerated retirement benefit under Section 14-147.5, the System will advise of the need for a supplemental order.  It is the member's or alternate payee's responsibility to obtain a supplemental order. 

 

C)        "Vouchered", as used in this subsection (h)(4), means that the voucher has been signed and dated, even though the warrant has not been issued by the Office of the State Comptroller.

 

i)          Termination of QILDRO

The System will consider a QILDRO as having been terminated in any of the following situations:

 

1)         Upon receipt of a certified copy of a court order terminating the QILDRO;

 

2)         Upon payment of all amounts provided for in the QILDRO; or

 

3)         When the person to whom the QILDRO applies ceases to be a member or annuitant of the System.

 

j)          QILDROs Against Persons Who Became Members Prior to July 1, 1999

 

1)         A QILDRO that applies to a person who became a member of the System prior to July 1, 1999, must be accompanied by the original Consent to Issuance of QILDRO signed by the member.  If the original is unavailable, a certified copy of the consent form filed with the court that issued the QILDRO is acceptable in lieu of the original.

 

2)         The Consent to Issuance of QILDRO must be in the form adopted by the System (including judicial district and county, case number and caption, member's name and SSN, alternate payee's name and SSN, member's signature and date) as of the date the QILDRO is received.  A consent form that is not in the form adopted by the System is invalid.

 

3)         In accordance with Section 1-119(m)(1) of the Code, a consent form must be signed by the member to whom the QILDRO applies.  A consent form signed by a judge in lieu of the member is invalid.

 

k)         Alternate Payee's Address

 

1)         An alternate payee is responsible to report to the System in writing and in the form and manner prescribed by the System each change in their name and mailing address.

 

2)         When a member's retirement benefit, refund or death benefit subject to a QILDRO becomes payable, the System will send notice to the last address of the alternate payee reported to the System that the benefit, refund or death benefit is payable.  Other than sending such notice, the System shall have no duty to take any other action to locate an alternate payee.

 

3)         The 180-day period during which the System will hold the retirement benefit, refund, or death benefit as provided in Section 1-119(e)(2) of the Code begins on the date that the notice described in subsection (j)(2) of this Section is sent to the last address of the alternate payee reported to the System, or on the date that the retirement benefit, refund, or death benefit becomes payable, whichever is later.

 

4)         If the System does not receive written confirmation of the alternate payee’s current mailing address in the form and manner prescribed by the System within the 180-day period, then the System will pay the amounts held under Section 1-119(e)(2) of the Code to the regular payee.

 

5)         If the System receives written confirmation of the alternate payee’s current mailing address in the form and manner prescribed by the System after the 180-day period, then the System will begin issuing applicable recurring benefit payments to the alternate payee in accordance with the QILDRO and QILDRO Calculation Court Orders on file with the System, but the alternate payee will have no right to any amounts already paid to the member.

 

l)          Electing Form of Payment

 

1)         A member's election either to receive or forego a proportional annuity under the Retirement Systems Reciprocal Act [40 ILCS 5/20] is not a prohibited election under Section 1-119(j)(1) of the Code.

 

2)         A member's election to take a refund is not a prohibited election under Section 1-119(j)(1) of the Code.

 

3)         A member's election of a form of payment of annuity that reduces the member's total benefit, while still allowing full payment to the alternate payee under a QILDRO at the date of the election, is not a prohibited election under Section 1-119(j)(1) of the Code.

 

m)        Automatic Annual Increases

 

1)         The alternate payee will or will not receive a proportionate share of any automatic annual increase in the member's retirement benefit under Section 14-114 or 14-115 of the Code, according to the designation in the QILDRO.  If the QILDRO fails to designate whether the alternate payee is intended to receive a proportionate share of the automatic annual increase, then the System will presume that the alternate payee is not entitled to a proportionate share of the automatic annual increase in the member's share.

 

2)         The initial increase in the amount due the alternate payee under the QILDRO is payable with the next succeeding increase due the member after the date the QILDRO first took effect.

 

3)         The System will calculate the amount of any increase payable to the alternate payee under the QILDRO.

 

4)         The amount of any increase payable to the alternate payee is the percentage of increase due the member under Sections 14-114 or 14-115 of the Code, multiplied by the alternate payee's monthly benefit as of the date of the increase.

 

n)         Providing Benefit Information for Divorce Purposes

 

1)         Within 45 days after receiving a subpoena or request from a member, the System will provide the information required in Section 1-119(h)(1) of the Code.

 

2)         Information provided by the System for divorce purposes does not include the amount of a member's retirement benefit for which no information is yet on file with the System.  The System will not provide a retirement benefit amount if the member is not vested. The System will not project earnings or future service. The System will not assume future eligibility for special formula employees or elections by members.

 

3)         Information provided by the System for divorce purposes does not reflect an actuarial opinion as to the present value of a member's retirement benefit, refund, death benefits or other interests.

 

4)         Except as otherwise indicated by the System in a statement regarding a member's benefits, information provided by the System for divorce purposes reflects the member's total service career for which service credit in the System has accrued, and is not isolated as to the marital period only.  The System will not provide benefit information for the marital period or specific years.

 

5)         The System does not calculate the amount of a member's retirement benefit, refund or death benefit that would be payable to a former spouse pursuant to a divorce decree or dissolution judgment.

 

6)         While the System makes every effort to provide accurate information for divorce purposes, benefit estimates are by their nature approximate and subject to revision due to errors, omissions, erroneous assumptions, or future changes in the rules and laws governing the System.

 

7)         The System does not disclose information for divorce purposes to spouses, former spouses, relatives, or other third parties including the member's attorney, except in response to the member's written authorization to release such information, or in response to a subpoena.

 

o)         Member’s Death before Entry of QILDRO Calculation Court Order

 

1)         If the System has on file a valid QILDRO that allocates a System-provided benefit on a percentage basis and if the member named in the QILDRO dies before the associated QILDRO Calculation Court Order has been entered, then the System shall send a written notice to the alternate payee’s last known address to advise the alternate payee that a valid QILDRO Calculation Court Order is needed and that it is the alternate payee’s responsibility to have the required calculations performed and to file that order with the System.

 

2)         If the alternate payee does not respond to the System’s written notice by filing a valid QILDRO Calculation Court Order for the underlying QILDRO within 180 days after the System sends the written notice and, as a result, the alternate payee to whom benefits are to be directed under the QILDRO Calculation Court Order has not been located, then the System shall pay the System-provided benefits that would otherwise be distributed under the QILDRO to the regular payee’s beneficiaries or estate as is provided in Article 14 of the Code.

 

3)         The System has no duty or obligation to assist in performing calculations required for the entry of a QILDRO Calculation Court Order or in completing the QILDRO Calculation Court Order form. 

 

p)         Nontaxable Funds

 

1)         Unless otherwise specified in a supplemental order, the nontaxable portion of a payment divided under Section 1-119 of the Code shall be paid solely to the member, or, when applicable, the member's named beneficiaries or estate. 

 

2)         Notwithstanding subsection (p)(1), nontaxable funds may be payable to an alternate payee if those funds are needed to fulfill the amount due to that alternate payee as ordered by a court in accordance with Section 1-119 of the Code.

 

(Source:  Amended at 46 Ill. Reg. 6945, effective April 21, 2022)

 

Section 1540.360  Election to be an Employee under Section 14-103.05(b)(3) of the Illinois Pension Code

 

An election to be considered an "employee" under Section 14-103.05(b)(3) of the Illinois Pension Code is an irrevocable election for all periods during which the person is serving at the appointment of the Governor with the advice and consent of the Senate.  The election is valid and irrevocable for the entire period spent in a position, even upon reappointment to the same position. Appointment to a different position under Section 14-103.05(b)(3) requires the employee to complete a new election form.

 

(Source:  Added at 34 Ill. Reg. 285, effective December 15, 2009)

 

Section 1540.370  Americans With Disabilities Act

 

a)         Purpose

 

1)         This grievance procedure is established pursuant to the Americans With Disabilities Act of 1990 (ADA) (42 USC 12101 et seq.) and specifically Section 35.107 of the Title II regulations (28 CFR 35.107), requiring the adoption of a procedure to resolve grievances asserted by qualified individuals with disabilities. Interested parties may contact the ADA Coordinator to review the ADA or its regulations to understand the rights, privileges and remedies afforded by them.

 

2)         In general, the ADA requires that each program, service and activity offered by the State Employees' Retirement System (System), when viewed in its entirety, be readily accessible to and usable by qualified individuals with disabilities.

 

3)         It is the intention of the System to foster open communication with all individuals requesting readily accessible programs, services and activities. The System encourages supervisors of programs, services and activities to respond to requests for modifications before they become grievances.

 

b)         Definitions

 

"ADA" means the Americans With Disabilities Act of 1990 (42 USC 12101 et seq.).

 

"ADA Coordinator" means the person appointed by the Executive Secretary of the System to coordinate the System's efforts to comply with and carry out its responsibilities under Title II of the ADA, including any investigation and prompt equitable resolution of grievances filed by complainants. The ADA Coordinator may be contacted at State Employees' Retirement System, ADA Coordinator, 2101 S. Veterans Parkway, Springfield IL 62704. (See 28 CFR 35.107.)

 

"Complainant" means a qualified individual with a disability who files a Grievance Form provided by the System.

 

"Disability" shall have the same meaning as set forth in the ADA.

 

"Executive Secretary" means the Executive Secretary of the System or a duly authorized designee.

 

"Grievance" means any written complaint under the ADA by an individual with a disability who meets the eligibility requirements for participation in, or receipt of, the benefits of a program, activity or service offered by the System and who believes he or she has been excluded from participation in, or denied the benefits of, any program, service or activity of the System, or who has been subject to discrimination by the System.

 

"Grievance Form" means the form prescribed for the purpose of filing a grievance under this Part and includes information such as name, address, telephone number, and nature of the grievance, with specificity, including date of incident, time, place and witnesses if applicable.

 

"Major Life Activities" means functions such as caring for one's self, performing manual tasks, walking, seeing, hearing, speaking, breathing, learning or working.

 

"Qualified Individual with a Disability" means an individual with a disability who, with or without reasonable modifications to rules, policies or practices, the removal of architectural, communication or transportation barriers, or the provision of auxiliary aids and services, meets the essential eligibility requirements for the receipt of services or the participation in programs or activities provided by the System.

 

"Reasonable Modification" means modifications or adjustments to services, programs or activities that enable a qualified individual with a disability to participate in, or enjoy the benefits of the service, program or activity.

 

"System" means the State Employees' Retirement System of Illinois.

 

c)         Procedures

 

1)         The ADA Coordinator will endeavor to respond to and resolve grievances without the need to resort to the formal grievance procedure established by this Part. A person who wishes to avail himself or herself of the formal procedure, however, may do so only by filing a grievance within 180 calendar days after the alleged discrimination in the form and manner prescribed in this Section.

 

2)         The ADA Coordinator shall provide a copy of the grievance procedure and the required complaint form to anyone who requests it or expresses a desire to file a formal grievance.

 

3)         Grievances must be submitted in accordance with procedures established in this Section. It is mutually desirable and beneficial that grievances be satisfactorily resolved in a prompt manner. Time limits established in this procedure are in calendar days, unless otherwise stated, and may be extended by mutual agreement, in writing, by the complainant and the reviewer, at the reviews described in subsections (d) and (e).

 

4)         A complainant's failure to submit a Grievance Form, or to submit or appeal it to the next level of review within the specified time limits, shall mean that the complainant has withdrawn the grievance or has accepted the System's last response as given in the grievance procedure.

 

5)         A complainant must exhaust the remedies provided under this Part as a prerequisite for filing any action before a court or other administrative body.

 

6)         The System shall, upon being informed of an individual's desire to file a formal grievance, instruct the individual how to receive a copy of this procedure and the Grievance Form.

 

d)         ADA Coordinator Review

 

1)         If an individual desires to file a grievance, the individual shall promptly, but no later than 180 days after the date of the alleged discrimination, submit a grievance to the ADA Coordinator on the Grievance Form prescribed for that purpose. The Grievance Form must be completed in full in order to receive proper consideration by the ADA Coordinator.

 

2)         Upon request, the System shall assist an individual in completing the Grievance Form.

 

3)         The grievance shall contain the following information:

 

A)        The complainant's name, address and telephone number.

 

B)        Information as to the best time and means for contacting the complainant.

 

C)        The program, activity or service that was denied the complainant, or in which alleged discrimination occurred.

 

D)        The date and nature of the denial or alleged discrimination.

 

E)        An explanation of why the complainant believes he or she is a qualified individual with a disability.

 

F)         The signature or execution of or on behalf of the complainant.

 

4)         The complainant shall attach copies of any documents received from or submitted to the System that pertain to the program, activity or service referred to in the grievance.

 

5)         The ADA Coordinator, or his/her representative, shall investigate the grievance and, if the grievance is found to be valid, shall make reasonable efforts to resolve it. The ADA Coordinator shall provide a written response to the complainant and Executive Secretary within 15 business days after receipt of the Grievance Form.

 

e)         Final Review

 

1)         If the grievance is not resolved pursuant to this Section to the satisfaction of the complainant, the complainant may submit a copy of the Grievance Form and ADA coordinator's response to the Executive Secretary for final review. The complainant shall submit these documents to the Executive Secretary, together with a short written statement explaining the reasons for dissatisfaction with the ADA Coordinator's written response, within 10 business days after service of the ADA Coordinator's response. Service is deemed complete five business days after mailing.

 

2)         Within 15 business days after receipt of the complainant's request to the Executive Secretary for final review, the Executive Secretary shall appoint a three-member panel to evaluate the grievance. The Executive Secretary shall designate one panel member as chairman. The panel shall schedule a review of the grievance, which shall commence no later than 15 business days after the last panel member is appointed. 

 

3)         Complainant shall be afforded an opportunity to appear before the panel. Complainant shall have the right to appoint a representative to appear on his or her behalf. The panel shall review the complainant's Grievance Form and the ADA Coordinator's written response and may conduct interviews and seek advice as it deems appropriate.

 

4)         Upon agreement of at least two of the panel members, but not later than 15 business days after the review described in subsection (b), the panel shall make written recommendations to the Executive Secretary regarding the proper resolution of the grievance. All recommendations shall include reasons for the recommendation and shall bear the signatures of the concurring panel members. A dissenting member of the panel may make a recommendation to the Executive Secretary in writing and shall sign his or her recommendation.

 

5)         Within 15 business days after receipt of the panel's recommendations, the Executive Secretary shall approve, disapprove or modify the panel recommendations; shall render a decision on those recommendations in writing; shall state the basis for his or her decision; and shall cause a copy of the decision to be served on the parties. The Executive Secretary's decision shall be final. If the Executive Secretary disapproves or modifies the panel's recommendations, the Executive Secretary shall include written reasons for the disapproval or modification.

 

6)         The Grievance Form, the ADA Coordinator's response, the complainant's statement of the reasons for dissatisfaction, the panel's recommendations, and the Executive Secretary's decision shall be maintained in accordance with the State Records Act [5 ILCS 160] or as otherwise required by law.

 

f)         Accessibility

The System shall ensure that all stages of the grievance procedure are readily accessible and usable by individuals with disabilities.

 

g)         Case-By-Case Resolution

Each grievance involves a unique set of factors that includes but is not limited to: the specific nature of the disability; the essential eligibility requirements, the benefits to be derived, and the nature of the service, program or activity at issue; the health and safety of others; and whether an accommodation would constitute a fundamental alteration to the program, service or activity, or cause undue hardship for the System. Accordingly, termination of a grievance at any level, whether through the granting of relief or otherwise, shall not constitute a precedent on which any other Complainants should rely.

 

(Source:  Added at 34 Ill. Reg. 8313, effective June 10, 2010)

 

Section 1540.380  Correction of Mistakes in Benefit Payments

 

a)         If SERS mistakenly sets any benefit at an incorrect amount, it will recalculate the benefit as soon as may be practicable after the mistake is discovered. 

 

b)         If the recalculation results in a determination by SERS that it has overpaid a benefit and, if that benefit overpayment either was undiscovered for less than 3 years or resulted from incorrect information supplied by the affected member or beneficiary, then SERS will adjust the benefit to the correct level and notify the benefit recipient in writing.  The written notice will indicate the correct amount of the benefit, the amount of the overpayment that must be recovered by the System, and the procedure for appealing the determination.  If the affected member or beneficiary does not appeal the determination within 30 days after the postmark date of the written notice or, if, upon appeal, the Executive Committee affirms the System's determination, then SERS will make arrangements for collection of the amount of the overpayment.  The overpayment can be repaid by:

 

1)         reductions in any subsequent benefit payment due to the recipient or their survivors and beneficiaries;

 

2)         repayment of the overpayment by the recipient to SERS;

 

3)         other arrangement SERS makes with the recipient; or

 

4)         any other means legally available to the System.

 

c)         If the recalculation results in a determination by SERS that it has overpaid a benefit and, if that benefit overpayment was undiscovered for 3 or more years and did not result from incorrect information supplied by the affected member or beneficiary, then SERS will adjust the benefit to the correct level and notify the benefit recipient in writing. The written notice will indicate the correct amount of the benefit, describe the procedure for appealing the determination, and inform the benefit recipient that they are not required to repay SERS for the excess amounts received in error.

 

d)         If the recalculation results in a determination by SERS that it has underpaid a benefit, then SERS will notify the benefit recipient, adjust the benefit to the correct level, and pay a lump sum amount to the recipient in the amount necessary to make the recipient whole as to the amounts that should have been paid to the recipient by SERS under the Code.  The amount payable under this subsection (d) on account of an underpayment of an accelerated pension benefit payment shall be distributed from the State Pension Obligation Acceleration Bond Fund.

 

e)         A benefit underpayment that arises from a back pay award may be acted upon under subsection (d) and is not required to be passed upon by the Board under Section 14-135.04 of the Code. However, if a member believes that the System has incorrectly adjusted the benefit or incorrectly calculated the amount of the underpayment, the member may appeal those calculations in the same manner as the appeal of an initial claim under Section 1540.270.

 

f)         Amounts collected under subsection (b) on account of the overpayment of accelerated pension benefit payments shall be remitted to the State Pension Obligation Acceleration Bond Fund.

 

g)         Nothing in this Section prevents SERS from referring any debt due SERS to the Attorney General, the Debt Collection Board, the Comptroller's Offset System, or private collection agencies at any time it deems appropriate.

 

h)         Definitions

As used in this Section:

 

"Accelerated Pension Benefit Payment" means any accelerated pension benefit payment provided under Section 14-147.5 or 14-147.6 of the Code.

 

"Benefit" means any retirement annuity, widow's annuity, survivor's annuity, occupational disability benefit, temporary disability benefit, nonoccupational disability benefit, death benefit, accelerated pension benefit payment, or other benefit payable under Article 14 of the Code or any portion of any proportional annuity or survivor's annuity that is payable by SERS under Article 20 of the Code. 

 

"Code" means the Illinois Pension Code [40 ILCS 5].

 

"State Pension Obligation Acceleration Bond Fund" means the bond fund created by Section 7.7(d) of the General Obligation Bond Act [30 ILCS 330].

 

"SERS" means the State Employees' Retirement System of Illinois.

 

(Source:  Amended at 45 Ill. Reg. 6848, effective May 24, 2021)

 

Section 1540.385  Suspension of Benefits from Uncashed Warrants

 

a)         Monthly benefit payments to annuitants may be suspended when four monthly warrants remain uncashed.  The System shall inquire as to the cause for the uncashed warrants.  These and subsequent payments shall be made upon learning the circumstances or whereabouts of the warrants, or upon prompt compliance in cashing the warrants.

 

b)         Any member that has his or her benefit suspended under this Section shall be required to register for direct deposit as a condition for resuming benefit payments. 

 

(Source:  Added at 41 Ill. Reg. 4217, effective March 22, 2017)

 

Section 1540.390  Freedom of Information Act

 

a)         Purpose.  This Section establishes policies and procedures specific to SERS concerning requests for information made under FOIA [5 ILCS 140].

 

b)         Freedom of Information Officer.  The Freedom of Information Officer is the staff member at SERS responsible for responding to all requests for information on behalf of SERS as the "public body" under FOIA and is also responsible for maintaining all records required to be kept under FOIA and this Section.  The Freedom of Information Officer shall be the SERS Executive Secretary or a designee of the SERS Executive Secretary. Denials issued by the Freedom of Information Officer shall inform the requester of the right of review by the Public Access Counselor under Section 9.5 of FOIA or by a court under Section 11 of FOIA.

 

c)         Time and Place for Requests or Inspection. Records subject to FOIA shall be made available for inspection and copying at SERS principal office on weekdays between the hours of 8:00 a.m. and 4:30 p.m., excluding days during which the office is closed to the public.  Written requests shall be mailed to the Freedom of Information Officer or a designee in the SERS Executive Department at 2101 S. Veterans Pkwy., P.O. Box 19255, Springfield IL 62794-9255. FOIA requests may also be submitted by facsimile (217-557-3943) or by email (SERS@srs.illinois.gov).  Oral requests for inspection or copying may be made in person or by phone at 217-785-7016.

 

d)         Fees.  Unless a fee is waived or reduced under Section 6 of FOIA, fees may be imposed on the requester to recover costs of document production or reproduction according to the following schedule:

 

1)         Photostatic copying of paper documents:

 

A)        Black and white copies shall be charged after the first 50 pages at $0.05 per page;

 

B)        Color copies shall be charged at $0.13 per page.

 

2)         Printing of electronic documents or microfilmed/microfiched documents shall be charged at $0.05 per page.

 

3)         Physical storage on electronic, tape or other media, shipping and facsimile transmission costs shall be charged to the extent those costs are incurred. Electronic transmission via e-mail shall be provided at no charge.

 

e)         Exemptions.  Records exempted under Section 7 or 7.5 of FOIA shall be exempt from inspection and copying.

 

(Source:  Added at 41 Ill. Reg. 4217, effective March 22, 2017)

 

Section 1540.395  Accelerated Pension Benefit Payment Program

 

a)         Purpose. This Section establishes policies specific to SERS concerning the Accelerated Pension Benefit Payment Options authorized by Sections 14‑147.5 and 14‑147.6 of the Illinois Pension Code (Code) [40 ILCS 5].

 

b)         Payment Option Limitations

 

1)         A member needs to be an eligible person on or before June 1, 2026 in order to elect an accelerated pension benefit payment.

 

2)         A member who elects the Level Income Option is ineligible to elect an accelerated pension benefit payment.

 

3)         A member who elects the Social Security Offset Removal is ineligible to elect an accelerated pension benefit payment.

 

4)         A member who elects a reversionary annuity is ineligible to elect an accelerated pension benefit payment.

 

5)         A member subject to a mandatory distribution pursuant to section 401(a)(9) of the Internal Revenue Code (26 CFR 1) is ineligible to elect an accelerated pension benefit payment at least 30 days prior to the date the mandatory distribution must be paid. The election form of such a member must be received by SERS at least 30 days prior to the date the mandatory distribution must be paid.

 

6)         A member who is indebted to SERS because of an overpayment is ineligible to elect the accelerated pension benefit payment under Section 14‑147.5 of the Code. That member may qualify for an accelerated pension benefit payment upon repaying the debt in full.

 

7)         An election for an accelerated pension benefit payment under Section 14-147.5 of the Code that is submitted by a member that received disability benefits and has a pending claim for either Social Security disability benefits or benefits payable under the Workers' Compensation Act [820 ILCS 305] or Workers' Occupational Diseases Act [820 ILCS 310], shall not be processed until a determination has been made on that claim.

 

8)         A member who cashed or deposited the payment of a proportional annuity from another participating system prior to December 1, 2018, when creditable service or earnings credit established under Article 14 of the Code was used to calculate a proportional annuity or to qualify the member for a proportional annuity, is ineligible to elect an accelerated pension benefit payment.

 

9)         A member who cashed or deposited the payment of a proportional annuity from another participating system prior to December 1, 2018, when creditable service or earnings credit established under another participating system was used to calculate the proportional annuity payable by SERS established under Article 14 of the Code or to qualify the member for the proportional annuity payable by SERS established under Article 14 of the Code is ineligible to elect an accelerated pension benefit payment.

 

c)         The present value of pension benefits calculation, as determined by Section 14‑147.5(b) of the Code, shall not include any earnings credits under another participating system.

 

d)         For a member who elects the accelerated pension benefit payment prescribed under Section 14‑147.5 of the Code, the effective date of that accelerated pension benefit payment shall not be before April 1, 2019. Furthermore, the effective date of the payment shall not be before the first of the month immediately following the date in which a valid application is received by SERS.

 

e)         The effective date for accelerated pension benefit payment prescribed under Section 14‑147.6 of the Code:

 

1)         shall not be before December 1, 2018; and

 

2)         shall not be before the effective date of the member's retirement annuity.

 

f)         The accelerated pension benefit payment shall not be transferred to the member's eligible account prior to the effective date of the member's retirement annuity.

 

g)         A valid application for an accelerated pension benefit must be received by SERS before June 1, 2026 in order to qualify a member for an accelerated pension benefit.

 

h)         The election to receive an accelerated pension benefit payment under Section 14‑147.6 of the Code becomes irrevocable on either the date the member cashes or deposits the first retirement annuity payment, or the date on which the accelerated pension benefit payment is vouchered, whichever occurs earlier.

 

i)          The election to receive an accelerated pension benefit payment under Section 14‑147.5 of the Code becomes irrevocable on the date the accelerated pension benefit payment is vouchered.

 

j)          Accelerated pension benefit payments shall be paid solely from the amounts transferred to SERS from the State Pension Obligation Acceleration Bond Fund. Under no circumstance will other SERS assets be used to pay accelerated pension benefit payments. All elections for an accelerated pension benefit payment that will not be paid from amounts transferred to SERS from the State Pension Obligation Acceleration Bond Fund shall be null and void.

 

k)         For cases in which a member is charged with a felony related to, arising out of, or in connection with his or her service as an employee and elects an accelerated pension benefit payment, the adjudication process related to the charges must be completed before the accelerated pension benefit payment is vouchered. If the member is convicted and sentenced of a felony related to, arising out of, or in connection with his or her service as an employee, the payment shall not be vouchered.

 

l)          A member who elects the accelerated pension benefit payment under Section 14‑147.5 of the Code is ineligible to receive a refund under Section 14‑130(c) of the Code.

 

m)        A member with post-tax contributions on file with SERS, and who elects the accelerated pension benefit payment under Section 14‑147.5 of the Code, may not elect to transfer the payment into the pre-tax plan offered under the State Employees Deferred Compensation Plan.

 

n)         On or after the date that a member's accelerated pension benefit payment is vouchered, that member is ineligible to establish creditable service associated with employment before the date that the accelerated pension benefit payment is vouchered.

 

o)         If a member who elected the Early Retirement Incentive under Section 14-108.3 of the Code elects the accelerated pension benefit payment under Section 14‑147.5 of the Code, then the calculation of that payment shall exclude the creditable service and age enhancement components of the Early Retirement Incentive program unless the member has paid the necessary costs under Section 14-108.3(c) prior to the election of the accelerated pension benefit payment.

 

p)         If a member has irrevocably elected to receive an Accelerated Pension Benefit Payment and if the member's spouse dies after the date of that election but before the System has paid the Accelerated Pension Benefit Payment, then the amount to be paid as an Accelerated Pension Benefit Payment shall not be recalculated, reduced, or otherwise adjusted on account of the death of the member's spouse.

 

q)         Definitions

 

"Accelerated Pension Benefit Payment" means an accelerated pension benefit payment under Sections 14‑147.5 and 14‑147.6 of the Code.

 

"Accrued Sufficient Service Credit to be Eligible to Receive a Retirement Annuity Under this Article" means, for the purposes of Section 14‑147.5(a)(2) of the Code, that a member must have established sufficient creditable service to qualify for a retirement annuity under Article 14 of the Code. Service credit on file with another participating system at the time of the member's election for an accelerated pension benefit payment under Section 14‑147.5 shall be excluded for those purposes.

 

"Code" means the Illinois Pension Code [40 ILCS 5].

 

"Creditable Service" means service defined as "creditable service" under Section 14‑103.15 of the Code.

 

"Eligible Account" means a "tax qualified retirement plan or account" required by Sections 14‑147.5(e) and 14‑147.6(d) of the Code.

 

"Level Income Option" means a benefit payment option prescribed by Section 14‑112 of the Code.

 

"Participating System" means a retirement system defined as a "participating system" by Section 20‑108 of the Code.

 

"Proportional Annuity" means a retirement annuity paid in accordance with Section 20‑121 of the Code.

 

"Reversionary Annuity" means a reversionary annuity authorized by Section 14‑113 of the Code.

 

"Social Security Offset Removal" means the 3.825% reduction to a member's retirement annuity established by Sections 14‑119(d) and 14‑121(g) of the Code.

 

"State Employees Deferred Compensation Plan" means the plan described by Section 24‑104 of the Code.

 

"State Pension Obligation Acceleration Bond Fund" means the bond fund created by Section 7.7(d) of the General Obligation Bond Act [30 ILCS 330].

 

"Vouchered" means that the voucher has been signed and dated, even though the warrant has not been issued by the Office of the State Comptroller.

 

(Source:  Amended at 46 Ill. Reg. 19224, effective November 18, 2022)

 

Section 1540.400  Multiple Survivors of a Tier 2 Member

 

a)         If 2 or more persons are eligible to receive survivor's annuities, as provided under either Section 1-160(f) or 1-161(i) of the Code, based on the same deceased Tier 2 member, then the calculation of the survivors' annuities shall be based on the total amount of the survivors' annuity divided by the number of persons eligible to receive the benefit.

 

b)         For purposes of this Section, "Tier 2 Member" means a member of the System who is subject to the provisions of Sections 1-160 and 1-161 of the Illinois Pension Code.

 

(Source:  Added at 44 Ill. Reg. 534, effective December 27, 2019)

 

Section 1540.405  Tier 2 Member Final Average Compensation

 

a)         For purposes of calculating a retirement annuity of a Tier 2 member, the average compensation for the last 12 months of the 48-month period shall not exceed the final average compensation by more than 25%.  (See Section 14-103.12(a) of the Illinois Pension Code (Code) [40 ILCS 5].)

 

b)         For purposes of this Section, "Tier 2 Member" means a member of the System who is subject to the provisions of Section 1-160 of the Code.

 

(Source:  Added at 46 Ill. Reg. 6945, effective April 21, 2022)

 

Section 1540.406  Retirement Eligibility Criteria For Tier 2 Members Who Are Vested With Police Powers

 

a)         A Tier 2 member qualifies for a retirement annuity payable at age 55 provided that the member has attained at least 20 years of eligible creditable service for service as any of the following:  a State policeman, investigator for the Secretary of State, conservation police officer, investigator for the Department of Revenue or the Illinois Gaming Board, investigator for the Office of the Attorney General, Commerce Commission police officer, or arson investigator, as defined in subsection (b) and subsection (c) of Section 14-110 of the Illinois Pension Code [40 ILCS 5].

 

b)         For purposes of this Section, "Tier 2 Member" means a member of the System who is subject to the provisions of Section 1-160 of the Illinois Pension Code.

 

(Source:  Added at 48 Ill. Reg. 13838, effective August 27, 2024)

 

Section 1540.410  Final Average Compensation for Certain Alternative Retirement Annuity Recipients

 

For purposes of retirement and survivor annuities, in the case of a member who first became a member of the System prior to January 1, 1998 and who is eligible to receive an alternative retirement annuity under Section 14-110 of the Code on or after that date, "final average compensation" means final average compensation as defined by Section 14-103.12(a), (c) or (d) of the Code, whichever is greater.

 

(Source:  Added at 45 Ill. Reg. 3023, effective February 26, 2021)

 

Section 1540.415  Prohibited Transactions

 

The payment of any type of refund or any type of accelerated pension benefit payment provided under Article 14 of the Pension Code shall not be transferred to a Roth IRA or any other type of account in which a person can receive distributions on a tax-free basis.

 

(Source:  Added at 46 Ill. Reg. 14779, effective August 22, 2022)

Section 1540.APPENDIX A   Grievance Form

 

Grievance

Discrimination Based on Disability

 

It is the policy of the State Employees' Retirement System to provide assistance in filling out this form. If assistance is needed, please ask:

 

State Employees' Retirement System, ADA Coordinator

2101 S. Veterans Parkway, P. O. Box 19255

Springfield IL  62704

217-785-7444, 217-785-7218 (TDD)

 

Name:
Address:
City, State and Zip Code:
Telephone No.:
Program, Service or Activity to which Access was Denied or in which Alleged Discrimination
Occurred:
Date of Alleged Discrimination:
Nature of Alleged Discrimination:

 

(Attach additional sheets, if necessary, and copies of any documents received or submitted to the System that pertain to the program, activity or service referred to in this grievance. If the grievance is based on a denial of requested reasonable modification, please fill out the back of this form.)

 

I certify that I am qualified or otherwise eligible to participate in the program, service or activity and the above statements are true to the best of my knowledge and belief.

 

 

 

Signature		Date

 

Please give to the ADA Coordinator at the address listed above.

 

(Source:  Added at 34 Ill. Reg. 8313, effective June 10, 2010)

 

Section 1540.TABLE A  Optional Forms of Benefits - Basis of Computation

 

AGE		A		B
1	0.000342		0.000171
2	0.000342		0.000171
3	0.000342		0.000171
4	0.000342		0.000171
5	0.000342		0.000171
6	0.000342		0.000140
7	0.000318		0.000118
8	0.000302		0.000104
9	0.000294		0.000097
10	0.000292		0.000096
11	0.000293		0.000104
12	0.000298		0.000113
13	0.000304		0.000121
14	0.000310		0.000131
15	0.000317		0.000140
16	0.000325		0.000149
17	0.000333		0.000159
18	0.000343		0.000168
19	0.000353		0.000179
20	0.000365		0.000189
21	0.000377		0.000201
22	0.000392		0.000212
23	0.000408		0.000225
24	0.000424		0.000239
25	0.000444		0.000253
26	0.000464		0.000268
27	0.000488		0.000284
28	0.000513		0.000302
29	0.000542		0.000320
30	0.000572		0.000342
31	0.000607		0.000364
32	0.000645		0.000388
33	0.000687		0.000414
34	0.000734		0.000443
35	0.000785		0.000476
36	0.000860		0.000502
37	0.000907		0.000536
38	0.000966		0.000573
39	0.001039		0.000617
40	0.001128		0.000665
41	0.001238		0.000716
AGE		A		B
42	0.001370		0.000775
43	0.001527		0.000842
44	0.001715		0.000919
45	0.001932		0.001010
46	0.002183		0.001117
47	0.002471		0.001237
48	0.002790		0.001366
49	0.003138		0.001505
50	0.003513		0.001647
51	0.003909		0.001793
52	0.004324		0.001949
53	0.004755		0.002120
54	0.005200		0.002315
55	0.005660		0.002541
56	0.006131		0.002803
57	0.006618		0.003103
58	0.007139		0.003443
59	0.007719		0.003821
60	0.008384		0.004241
61	0.009158		0.004703
62	0.010064		0.005210
63	0.011133		0.005769
64	0.012391		0.006386
65	0.013868		0.007064
66	0.015592		0.007817
67	0.017579		0.008681
68	0.019804		0.009702
69	0.022229		0.010922
70	0.024817		0.012385
71	0.027530		0.014128
72	0.030354		0.016160
73	0.033370		0.018481
74	0.036680		0.021092
75	0.040388		0.023992
76	0.044597		0.027185
77	0.049388		0.030672
78	0.054758		0.034459
79	0.060678		0.038549
80	0.067125		0.042945
81	0.074070		0.047655
82	0.081484		0.052691
83	0.089320		0.058071
84	0.097525		0.063807
85	0.106047		0.069918
AGE		A		B
86	0.114836		0.076570
87	0.124170		0.083870
88	0.133870		0.091935
89	0.144073		0.101354
90	0.154859		0.111750
91	0.166307		0.123076
92	0.178214		0.135630
93	0.190460		0.149577
94	0.203007		0.165103
95	0.217904		0.182419
96	0.234086		0.201757
97	0.248436		0.222044
98	0.263954		0.243899
99	0.280803		0.268185
100	0.299154		0.295187
101	0.319185		0.325225
102	0.341086		0.358897
103	0.365052		0.395843
104	0.393102		0.438360
105	0.427255		0.487816
106	0.469531		0.545886
107	0.521945		0.614309
108	0.586518		0.694885
109	0.665268		0.789474
110	1.000000		1.000000

 

(Source:  Amended at 23 Ill. Reg. 3824, effective March 9, 1999)