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91_HB1583enr
HB1583 Enrolled LRB9101658EGfg
1 AN ACT in relation to public employee benefits.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The State Employees Group Insurance Act of
5 1971 is amended by changing Section 6.10 as follows:
6 (5 ILCS 375/6.10)
7 Sec. 6.10. Contributions to the Community College Health
8 Insurance Security Fund.
9 (a) Beginning January 1, 1999, every active contributor
10 of the State Universities Retirement System (established
11 under Article 15 of the Illinois Pension Code) who (1) is a
12 full-time employee of a community college district (other
13 than a community college district subject to Article VII of
14 the Public Community College Act) or an association of
15 community college boards and (2) is not an employee as
16 defined in Section 3 of this Act shall make contributions
17 toward the cost of community college annuitant and survivor
18 health benefits at the rate of 0.50% of salary.
19 These contributions shall be deducted by the employer and
20 paid to the State Universities Retirement System as service
21 agent for the Department of Central Management Services. The
22 System may use the same processes for collecting the
23 contributions required by this subsection that it uses to
24 collect the contributions received from those employees under
25 Section 15-157 of the Illinois Pension Code. An employer may
26 agree to pick up or pay the contributions required under this
27 subsection on behalf of the employee; such contributions
28 shall be deemed to have been paid by the employee.
29 A person required to make contributions under this
30 subsection (a) who purchases optional service credit under
31 Article 15 of the Illinois Pension Code must also pay the
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1 contribution required under this subsection (a) with respect
2 to that optional service credit. This contribution must be
3 received by the System before that optional service credit is
4 granted.
5 The State Universities Retirement System shall promptly
6 deposit all moneys collected under this subsection (a) into
7 the Community College Health Insurance Security Fund created
8 in Section 6.9 of this Act. The moneys collected under this
9 Section shall be used only for the purposes authorized in
10 Section 6.9 of this Act and shall not be considered to be
11 assets of the State Universities Retirement System.
12 Contributions made under this Section are not transferable to
13 other pension funds or retirement systems and are not
14 refundable upon termination of service.
15 (b) Beginning January 1, 1999, every community college
16 district (other than a community college district subject to
17 Article VII of the Public Community College Act) or
18 association of community college boards that is an employer
19 under the State Universities Retirement System shall
20 contribute toward the cost of the community college health
21 benefits provided under Section 6.9 of this Act an amount
22 equal to 0.50% of the salary paid to its full-time employees
23 who participate in the State Universities Retirement System
24 and are not members as defined in Section 3 of this Act.
25 These contributions shall be paid by the employer to the
26 State Universities Retirement System as service agent for the
27 Department of Central Management Services. The System may
28 use the same processes for collecting the contributions
29 required by this subsection that it uses to collect the
30 contributions received from those employers under Section
31 15-155 of the Illinois Pension Code.
32 The State Universities Retirement System shall promptly
33 deposit all moneys collected under this subsection (b) into
34 the Community College Health Insurance Security Fund created
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1 in Section 6.9 of this Act. The moneys collected under this
2 Section shall be used only for the purposes authorized in
3 Section 6.9 of this Act and shall not be considered to be
4 assets of the State Universities Retirement System.
5 Contributions made under this Section are not transferable to
6 other pension funds or retirement systems and are not
7 refundable upon termination of service.
8 (c) On or before November 15 of each year, the Board of
9 Trustees of the State Universities Retirement System shall
10 certify to the Governor, the Director of Central Management
11 Services, and the State Comptroller its estimate of the total
12 amount of contributions to be paid under subsection (a) of
13 this Section for the next fiscal year. The certification
14 shall include a detailed explanation of the methods and
15 information that the Board relied upon in preparing its
16 estimate. As soon as possible after the effective date of
17 this Section, the Board shall submit its estimate for fiscal
18 year 1999.
19 (d) Beginning in fiscal year 1999, on the first day of
20 each month, or as soon thereafter as may be practical, the
21 State Treasurer and the State Comptroller shall transfer from
22 the General Revenue Fund to the Community College Health
23 Insurance Security Fund 1/12 of the annual amount
24 appropriated for that fiscal year to the State Comptroller
25 for deposit into the Community College Health Insurance
26 Security Fund under Section 1.4 of the State Pension Funds
27 Continuing Appropriation Act.
28 (e) Except where otherwise specified in this Section,
29 the definitions that apply to Article 15 of the Illinois
30 Pension Code apply to this Section.
31 (Source: P.A. 90-497, eff. 8-18-97.)
32 Section 10. The Illinois Pension Code is amended by
33 changing Sections 1-113.2, 1-116, 2-121, 2-121.1, 3-110,
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1 7-139, 7-141, 7-141.1, 7-145.1, 7-157, 7-164, 7-166, 7-167,
2 7-184, 7-211, 8-125, 8-139, 8-153, 8-171, 8-244, 9-149,
3 9-194, 11-124, 11-134.2, 11-148, 11-167, 11-181, 11-182,
4 11-223, 13-303, 13-309, 13-310, 13-311, 13-314, 13-603,
5 14-118, 14-120, 14-128, 14-130, 15-107, 15-111, 15-112,
6 15-120, 15-134.5, 15-136.4, 15-139, 15-140, 15-141, 15-142,
7 15-144, 15-145, 15-154, 15-158.2, 15-181, 16-133, 16-135,
8 16-136.4, 16-138, 16-140, 16-143, 16-149.4, 16-184, 17-106,
9 17-117, 17-133, 17-150, 18-128, 20-121, 20-123, 20-124,
10 20-125, and 20-131 and adding Sections 1-120, 7-224, and
11 15-132.2 as follows:
12 (40 ILCS 5/1-113.2)
13 Sec. 1-113.2. List of permitted investments for all
14 Article 3 or 4 pension funds. Any pension fund established
15 under Article 3 or 4 may invest in the following items:
16 (1) Interest bearing direct obligations of the United
17 States of America.
18 (2) Interest bearing obligations to the extent that they
19 are fully guaranteed or insured as to payment of principal
20 and interest by the United States of America.
21 (3) Interest bearing bonds, notes, debentures, or other
22 similar obligations of agencies of the United States of
23 America. For the purposes of this Section, "agencies of the
24 United States of America" includes: (i) the Federal National
25 Mortgage Association and the Student Loan Marketing
26 Association; (ii) federal land banks, federal intermediate
27 credit banks, federal farm credit banks, and any other entity
28 authorized to issue direct debt obligations of the United
29 States of America under the Farm Credit Act of 1971 or
30 amendments to that Act; (iii) federal home loan banks and the
31 Federal Home Loan Mortgage Corporation; and (iv) any agency
32 created by Act of Congress that is authorized to issue direct
33 debt obligations of the United States of America.
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1 (4) Interest bearing savings accounts or certificates of
2 deposit, issued by federally chartered banks or savings and
3 loan associations, to the extent that the deposits are
4 insured by agencies or instrumentalities of the federal
5 government.
6 (5) Interest bearing savings accounts or certificates of
7 deposit, issued by State of Illinois chartered banks or
8 savings and loan associations, to the extent that the
9 deposits are insured by agencies or instrumentalities of the
10 federal government.
11 (6) Investments in credit unions, to the extent that the
12 investments are insured by agencies or instrumentalities of
13 the federal government.
14 (7) Interest bearing bonds of the State of Illinois.
15 (8) Pooled interest bearing accounts managed by the
16 Illinois Public Treasurer's Investment Pool in accordance
17 with the Deposit of State Moneys Act and interest bearing
18 funds or pooled accounts managed, operated, and administered
19 by banks, subsidiaries of banks, or subsidiaries of bank
20 holding companies in accordance with the laws of the State of
21 Illinois.
22 (9) Interest bearing bonds or tax anticipation warrants
23 of any county, township, or municipal corporation of the
24 State of Illinois.
25 (10) Direct obligations of the State of Israel, subject
26 to the conditions and limitations of item (5.1) of Section
27 1-113.
28 (11) Money market mutual funds managed by investment
29 companies that are registered under the federal Investment
30 Company Act of 1940 and the Illinois Securities Law of 1953
31 and are diversified, open-ended management investment
32 companies; provided that the portfolio of the money market
33 mutual fund is limited to the following:
34 (i) bonds, notes, certificates of indebtedness,
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1 treasury bills, or other securities that are guaranteed
2 by the full faith and credit of the United States of
3 America as to principal and interest;
4 (ii) bonds, notes, debentures, or other similar
5 obligations of the United States of America or its
6 agencies; and
7 (iii) short term obligations of corporations
8 organized in the United States with assets exceeding
9 $400,000,000, provided that (A) the obligations mature no
10 later than 180 days from the date of purchase, (B) at the
11 time of purchase, the obligations are rated by at least 2
12 standard national rating services at one of their 3
13 highest classifications, and (C) the obligations held by
14 the mutual fund do not exceed 10% of the corporation's
15 outstanding obligations.
16 (12) General accounts of life insurance companies
17 authorized to transact business in Illinois.
18 (13) Any combination of the following, not to exceed 10%
19 of the pension fund's net assets:
20 (i) separate accounts that are managed by life
21 insurance companies authorized to transact business in
22 Illinois and are comprised of diversified portfolios
23 consisting of common or preferred stocks, bonds, or money
24 market instruments; and
25 (ii) separate accounts that are managed by
26 insurance companies authorized to transact business in
27 Illinois, and are comprised of real estate or loans upon
28 real estate secured by first or second mortgages; and
29 (iii) mutual funds that meet the following
30 requirements:
31 (A) the mutual fund is managed by an
32 investment company as defined and registered under
33 the federal Investment Company Act of 1940 and
34 registered under the Illinois Securities Law of
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1 1953;
2 (B) the mutual fund has been in operation for
3 at least 5 years;
4 (C) the mutual fund has total net assets of
5 $250 million or more; and
6 (D) the mutual fund is comprised of
7 diversified portfolios of common or preferred
8 stocks, bonds, or money market instruments.
9 (Source: P.A. 90-507, eff. 8-22-97.)
10 (40 ILCS 5/1-116) (from Ch. 108 1/2, par. 1-116)
11 Sec. 1-116. Federal contribution and benefit limitations
12 limitation.
13 (a) This Section applies to all pension funds and
14 retirement systems established under this Code.
15 (a-5) All pension funds and retirement systems
16 established under this Code shall comply with the applicable
17 contribution and benefit limitations imposed by Section 415
18 of the U.S. Internal Revenue Code of 1986 for tax qualified
19 plans under Section 401(a) of that Code.
20 (b) If any benefit payable by a pension fund or
21 retirement system subject to this Section exceeds the
22 applicable benefit limits set by Section 415 of the U.S.
23 Internal Revenue Code of 1986 for tax qualified plans under
24 Section 401(a) of that Code, the excess shall be payable only
25 from an excess benefit fund established under this Section in
26 accordance with federal law.
27 (c) An excess benefit fund shall be established by any
28 pension fund or retirement system subject to this Section
29 that has any member eligible to receive a benefit that
30 exceeds the applicable benefit limits set by Section 415 of
31 the U.S. Internal Revenue Code of 1986 for tax qualified
32 plans under Section 401(a) of that Code. Amounts shall be
33 credited to the excess benefit fund, and payments for excess
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1 benefits made from the excess benefit fund, in a manner
2 consistent with the applicable federal law.
3 (d) For purposes of matters relating to the benefit
4 limits set by Section 415 of the U.S. Internal Revenue Code
5 of 1986, the limitation year may be defined by each affected
6 pension fund or retirement system for that fund or system.
7 (Source: P.A. 90-19, eff. 6-20-97.)
8 (40 ILCS 5/1-120 new)
9 Sec. 1-120. Payment to trust.
10 (a) If a person is a minor or has been determined by a
11 court to be under a legal disability, any benefits payable to
12 that person under this Code may be paid to the trustee of a
13 trust created for the sole benefit of that person while the
14 person is living, if the trustee of the trust has advised the
15 board of trustees of the pension fund or retirement system in
16 writing that the benefits will be held or used for the sole
17 benefit of that person. The pension fund or retirement
18 system shall not be required to determine the validity of the
19 trust or of any of the terms of the trust. The
20 representation of the trustee that the trust meets the
21 requirements of this Section shall be conclusive as to the
22 pension fund or retirement system. Payment of benefits to
23 the trust shall be an absolute discharge of the pension fund
24 or retirement system's liability with respect to the amounts
25 so paid.
26 (b) For purposes of this Section, "minor" means an
27 unmarried person under the age of 18.
28 (c) This Section is not a limitation on any other power
29 to pay benefits to or on behalf of a minor or person under
30 legal disability that is granted under this Code or other
31 applicable law.
32 (40 ILCS 5/2-121) (from Ch. 108 1/2, par. 2-121)
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1 Sec. 2-121. Survivor's annuity - conditions for payment.
2 (a) A survivor's annuity shall be payable to a surviving
3 spouse or eligible child (1) upon the death in service of a
4 participant with at least 2 years of service credit, or (2)
5 upon the death of an annuitant in receipt of a retirement
6 annuity, or (3) upon the death of a participant who
7 terminated service with at least 4 years of service credit.
8 The change in this subsection (a) made by this amendatory
9 Act of 1995 applies to survivors of participants who die on
10 or after December 1, 1994, without regard to whether or not
11 the participant was in service on or after the effective date
12 of this amendatory Act of 1995.
13 (b) To be eligible for the survivor's annuity, the
14 spouse and the participant or annuitant must have been
15 married for a continuous period of at least one year
16 immediately preceding the date of death, but need not have
17 been married on the day of the participant's last termination
18 of service, regardless of whether such termination occurred
19 prior to the effective date of this amendatory Act of 1985.
20 (c) The annuity shall be payable beginning on the date
21 of a participant's death, or the first of the month following
22 an annuitant's death, if the spouse is then age 50 or over,
23 or beginning at age 50 if the spouse is then under age 50.
24 If an eligible child or children of the participant or
25 annuitant (or a child or children of the eligible spouse
26 meeting the criteria of item (1), (2), or (3) of subsection
27 (d) of this Section) also survive, and the child or children
28 are under the care of the eligible spouse, the annuity shall
29 begin as of the date of a participant's death, or the first
30 of the month following an annuitant's death, without regard
31 to the spouse's age.
32 The change to this subsection made by this amendatory Act
33 of 1998 (relating to children of an eligible spouse) applies
34 to the eligible spouse of a participant or annuitant who dies
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1 on or after the effective date of this amendatory Act,
2 without regard to whether the participant or annuitant is in
3 service on or after that effective date.
4 (d) For the purposes of this Section and Section
5 2-121.1, "eligible child" means a child of the deceased
6 participant or annuitant who is at least one of the
7 following:
8 (1) unmarried and under the age of 18;
9 (2) unmarried, a full-time student, and under the
10 age of 22;
11 (3) dependent by reason of physical or mental
12 disability.
13 The inclusion of unmarried students under age 22 in the
14 calculation of survivor's annuities by this amendatory Act of
15 1991 shall apply to all eligible students beginning January
16 1, 1992, without regard to whether the deceased participant
17 or annuitant was in service on or after the effective date of
18 this amendatory Act of 1991.
19 Adopted children shall have the same status as children
20 of the participant or annuitant, but only if the proceedings
21 for adoption are commenced at least one year prior to the
22 date of the participant's or annuitant's death.
23 (e) Remarriage of a surviving spouse prior to attainment
24 of age 55 shall disqualify the surviving spouse from the
25 receipt of a survivor's annuity, if the remarriage occurs
26 before the effective date of this amendatory Act of the 91st
27 General Assembly.
28 The changes made to this subsection by this amendatory
29 Act of the 91st General Assembly (pertaining to remarriage
30 prior to age 55) apply without regard to whether the deceased
31 participant or annuitant was in service on or after the
32 effective date of this amendatory Act.
33 (Source: P.A. 89-136, eff. 7-14-95; 90-766, eff. 8-14-98.)
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1 (40 ILCS 5/2-121.1) (from Ch. 108 1/2, par. 2-121.1)
2 Sec. 2-121.1. Survivor's annuity - amount.
3 (a) A surviving spouse shall be entitled to 66 2/3% of
4 the amount of retirement annuity to which the participant or
5 annuitant was entitled on the date of death, without regard
6 to whether the participant had attained age 55 prior to his
7 or her death, subject to a minimum payment of 10% of salary.
8 If a surviving spouse, regardless of age, has in his or her
9 care at the date of death any eligible child or children of
10 the participant, the survivor's annuity shall be the greater
11 of the following: (1) 66 2/3% of the amount of retirement
12 annuity to which the participant or annuitant was entitled on
13 the date of death, or (2) 30% of the participant's salary
14 increased by 10% of salary on account of each such child,
15 subject to a total payment for the surviving spouse and
16 children of 50% of salary. If eligible children survive but
17 there is no surviving spouse, or if the surviving spouse
18 remarries or dies or becomes disqualified by remarriage while
19 eligible children survive, each eligible child shall be
20 entitled to an annuity of 20% of salary, subject to a maximum
21 total payment for all such children of 50% of salary.
22 However, the survivor's annuity payable under this
23 Section shall not be less than 100% of the amount of
24 retirement annuity to which the participant or annuitant was
25 entitled on the date of death, if he or she is survived by a
26 dependent disabled child.
27 The salary to be used for determining these benefits
28 shall be the salary used for determining the amount of
29 retirement annuity as provided in Section 2-119.01.
30 (b) Upon the death of a participant after the
31 termination of service or upon death of an annuitant, the
32 maximum total payment to a surviving spouse and eligible
33 children, or to eligible children alone if there is no
34 surviving spouse, shall be 75% of the retirement annuity to
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1 which the participant or annuitant was entitled, unless there
2 is a dependent disabled child among the survivors.
3 (c) When a child ceases to be an eligible child, the
4 annuity to that child, or to the surviving spouse on account
5 of that child, shall thereupon cease, and the annuity payable
6 to the surviving spouse or other eligible children shall be
7 recalculated if necessary.
8 Upon the ineligibility of the last eligible child, the
9 annuity shall immediately revert to the amount payable upon
10 death of a participant or annuitant who leaves no eligible
11 children. If the surviving spouse is then under age 50, the
12 annuity as revised shall be deferred until the attainment of
13 age 50.
14 (d) Beginning January 1, 1990, every survivor's annuity
15 shall be increased (1) on each January 1 occurring on or
16 after the commencement of the annuity if the deceased member
17 died while receiving a retirement annuity, or (2) in other
18 cases, on each January 1 occurring on or after the first
19 anniversary of the commencement of the annuity, by an amount
20 equal to 3% of the current amount of the annuity, including
21 any previous increases under this Article. Such increases
22 shall apply without regard to whether the deceased member was
23 in service on or after the effective date of this amendatory
24 Act of 1991, but shall not accrue for any period prior to
25 January 1, 1990.
26 (e) Notwithstanding any other provision of this Article,
27 beginning January 1, 1990, the minimum survivor's annuity
28 payable to any person who is entitled to receive a survivor's
29 annuity under this Article shall be $300 per month, without
30 regard to whether or not the deceased participant was in
31 service on the effective date of this amendatory Act of 1989.
32 (f) In the case of a proportional survivor's annuity
33 arising under the Retirement Systems Reciprocal Act where the
34 amount payable by the System on January 1, 1993 is less than
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1 $300 per month, the amount payable by the System shall be
2 increased beginning on that date by a monthly amount equal to
3 $2 for each full year that has expired since the annuity
4 began.
5 (Source: P.A. 86-273; 86-1488; 87-794; 87-1265.)
6 (40 ILCS 5/3-110) (from Ch. 108 1/2, par. 3-110)
7 Sec. 3-110. Creditable service.
8 (a) "Creditable service" is the time served by a police
9 officer as a member of a regularly constituted police force
10 of a municipality. In computing creditable service furloughs
11 without pay exceeding 30 days shall not be counted, but all
12 leaves of absence for illness or accident, regardless of
13 length, and all periods of disability retirement for which a
14 police officer has received no disability pension payments
15 under this Article shall be counted.
16 (b) Creditable service includes all periods of service
17 in the military, naval or air forces of the United States
18 entered upon while an active police officer of a
19 municipality, provided that upon applying for a permanent
20 pension, and in accordance with the rules of the board, the
21 police officer pays into the fund the amount the officer
22 would have contributed if he or she had been a regular
23 contributor during such period, to the extent that the
24 municipality which the police officer served has not made
25 such contributions in the officer's behalf. The total amount
26 of such creditable service shall not exceed 5 years, except
27 that any police officer who on July 1, 1973 had more than 5
28 years of such creditable service shall receive the total
29 amount thereof.
30 (c) Creditable service also includes service rendered by
31 a police officer while on leave of absence from a police
32 department to serve as an executive of an organization whose
33 membership consists of members of a police department,
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1 subject to the following conditions: (i) the police officer
2 is a participant of a fund established under this Article
3 with at least 10 years of service as a police officer; (ii)
4 the police officer received no credit for such service under
5 any other retirement system, pension fund, or annuity and
6 benefit fund included in this Code; (iii) pursuant to the
7 rules of the board the police officer pays to the fund the
8 amount he or she would have contributed had the officer been
9 an active member of the police department; and (iv) the
10 organization pays a contribution equal to the municipality's
11 normal cost for that period of service.
12 (d)(1) Creditable service also includes periods of
13 service originally established in another police pension fund
14 under this Article or in the Fund established under Article 7
15 of this Code for which (i) the contributions have been
16 transferred under Section 3-110.7 or Section 7-139.9 and (ii)
17 any additional contribution required under paragraph (2) of
18 this subsection has been paid in full in accordance with the
19 requirements of this subsection (d).
20 (2) If the board of the pension fund to which creditable
21 service and related contributions are transferred under
22 Section 3-110.7 or 7-139.9 determines that the amount
23 transferred is less than the true cost to the pension fund of
24 allowing that creditable service to be established, then in
25 order to establish that creditable service the police officer
26 must pay to the pension fund, within the payment period
27 specified in paragraph (3) of this subsection, an additional
28 contribution equal to the difference, as determined by the
29 board in accordance with the rules and procedures adopted
30 under paragraph (6) of this subsection.
31 (3) Except as provided in paragraph (4), the additional
32 contribution must be paid to the board (i) within 5 years
33 from the date of the transfer of contributions under Section
34 3-110.7 or 7-139.9 and (ii) before the police officer
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1 terminates service with the fund. The additional
2 contribution may be paid in a lump sum or in accordance with
3 a schedule of installment payments authorized by the board.
4 (4) If the police officer dies in service before payment
5 in full has been made and before the expiration of the 5-year
6 payment period, the surviving spouse of the officer may elect
7 to pay the unpaid amount on the officer's behalf within 6
8 months after the date of death, in which case the creditable
9 service shall be granted as though the deceased police
10 officer had paid the remaining balance on the day before the
11 date of death.
12 (5) If the additional contribution is not paid in full
13 within the required time, the creditable service shall not be
14 granted and the police officer (or the officer's surviving
15 spouse or estate) shall be entitled to receive a refund of
16 (i) any partial payment of the additional contribution that
17 has been made by the police officer and (ii) those portions
18 of the amounts transferred under subdivision (a)(1) of
19 Section 3-110.7 or subdivisions (a)(1) and (a)(3) of Section
20 7-139.9 that represent employee contributions paid by the
21 police officer (but not the accumulated interest on those
22 contributions) and interest paid by the police officer to the
23 prior pension fund in order to reinstate service terminated
24 by acceptance of a refund.
25 At the time of paying a refund under this item (5), the
26 pension fund shall also repay to the pension fund from which
27 the contributions were transferred under Section 3-110.7 or
28 7-139.9 the amount originally transferred under subdivision
29 (a)(2) of that Section, plus interest at the rate of 6% per
30 year, compounded annually, from the date of the original
31 transfer to the date of repayment. Amounts repaid to the
32 Article 7 fund under this provision shall be credited to the
33 appropriate municipality.
34 Transferred credit that is not granted due to failure to
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1 pay the additional contribution within the required time is
2 lost; it may not be transferred to another pension fund and
3 may not be reinstated in the pension fund from which it was
4 transferred.
5 (6) The Public Employee Pension Fund Division of the
6 Department of Insurance shall establish by rule the manner of
7 making the calculation required under paragraph (2) of this
8 subsection, taking into account the appropriate actuarial
9 assumptions; the police officer's service, age, and salary
10 history; the level of funding of the pension fund to which
11 the credits are being transferred; and any other factors that
12 the Division determines to be relevant. The rules may
13 require that all calculations made under paragraph (2) be
14 reported to the Division by the board performing the
15 calculation, together with documentation of the creditable
16 service to be transferred, the amounts of contributions and
17 interest to be transferred, the manner in which the
18 calculation was performed, the numbers relied upon in making
19 the calculation, the results of the calculation, and any
20 other information the Division may deem useful.
21 (Source: P.A. 89-52, eff. 6-30-95; 90-460, eff. 8-17-97.)
22 (40 ILCS 5/7-139) (from Ch. 108 1/2, par. 7-139)
23 Sec. 7-139. Credits and creditable service to employees.
24 (a) Each participating employee shall be granted credits
25 and creditable service, for purposes of determining the
26 amount of any annuity or benefit to which he or a beneficiary
27 is entitled, as follows:
28 1. For prior service: Each participating employee
29 who is an employee of a participating municipality or
30 participating instrumentality on the effective date shall
31 be granted creditable service, but no credits under
32 paragraph 2 of this subsection (a), for periods of prior
33 service for which credit has not been received under any
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1 other pension fund or retirement system established under
2 this Code, as follows:
3 If the effective date of participation for the
4 participating municipality or participating
5 instrumentality is on or before January 1, 1998,
6 creditable service shall be granted for the entire period
7 of prior service with that employer without any employee
8 contribution.
9 If the effective date of participation for the
10 participating municipality or participating
11 instrumentality is after January 1, 1998, creditable
12 service shall be granted for the last 20% of the period
13 of prior service with that employer, but no more than 5
14 years, without any employee contribution. A
15 participating employee may establish creditable service
16 for the remainder of the period of prior service with
17 that employer by making an application in writing,
18 accompanied by payment of an employee contribution in an
19 amount determined by the Fund, based on the employee
20 contribution rates in effect at the time of application
21 for the creditable service and the employee's salary rate
22 on the effective date of participation for that employer,
23 plus interest at the effective rate from the date of the
24 prior service to the date of payment. Application for
25 this creditable service may be made at any time while the
26 employee is still in service.
27 Any person who has withdrawn from the service of a
28 participating municipality or participating
29 instrumentality prior to the effective date, who reenters
30 the service of the same municipality or participating
31 instrumentality after the effective date and becomes a
32 participating employee is entitled to creditable service
33 for prior service as otherwise provided in this
34 subdivision (a)(1) only if he or she renders 2 years of
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1 service as a participating employee after the effective
2 date. Application for such service must be made while in
3 a participating status. The salary rate to be used in
4 the calculation of the required employee contribution, if
5 any, shall be the employee's salary rate at the time of
6 first reentering service with the employer after the
7 employer's effective date of participation.
8 2. For current service, each participating employee
9 shall be credited with:
10 a. Additional credits of amounts equal to each
11 payment of additional contributions received from
12 him under Section 7-173, as of the date the
13 corresponding payment of earnings is payable to him.
14 b. Normal credits of amounts equal to each
15 payment of normal contributions received from him,
16 as of the date the corresponding payment of earnings
17 is payable to him, and normal contributions made for
18 the purpose of establishing out-of-state service
19 credits as permitted under the conditions set forth
20 in paragraph 6 of this subsection (a).
21 c. Municipality credits in an amount equal to
22 1.4 times the normal credits, except those
23 established by out-of-state service credits, as of
24 the date of computation of any benefit if these
25 credits would increase the benefit.
26 d. Survivor credits equal to each payment of
27 survivor contributions received from the
28 participating employee as of the date the
29 corresponding payment of earnings is payable, and
30 survivor contributions made for the purpose of
31 establishing out-of-state service credits.
32 3. For periods of temporary and total and permanent
33 disability benefits, each employee receiving disability
34 benefits shall be granted creditable service for the
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1 period during which disability benefits are payable.
2 Normal and survivor credits, based upon the rate of
3 earnings applied for disability benefits, shall also be
4 granted if such credits would result in a higher benefit
5 to any such employee or his beneficiary.
6 4. For authorized leave of absence without pay: A
7 participating employee shall be granted credits and
8 creditable service for periods of authorized leave of
9 absence without pay under the following conditions:
10 a. An application for credits and creditable
11 service is submitted to the board while the employee
12 is in a status of active employment, and within 2
13 years after termination of the leave of absence
14 period for which credits and creditable service are
15 sought.
16 b. Not more than 12 complete months of
17 creditable service for authorized leave of absence
18 without pay shall be counted for purposes of
19 determining any benefits payable under this Article.
20 c. Credits and creditable service shall be
21 granted for leave of absence only if such leave is
22 approved by the governing body of the municipality,
23 including approval of the estimated cost thereof to
24 the municipality as determined by the fund, and
25 employee contributions, plus interest at the
26 effective rate applicable for each year from the end
27 of the period of leave to date of payment, have been
28 paid to the fund in accordance with Section 7-173.
29 The contributions shall be computed upon the
30 assumption earnings continued during the period of
31 leave at the rate in effect when the leave began.
32 d. Benefits under the provisions of Sections
33 7-141, 7-146, 7-150 and 7-163 shall become payable
34 to employees on authorized leave of absence, or
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1 their designated beneficiary, only if such leave of
2 absence is creditable hereunder, and if the employee
3 has at least one year of creditable service other
4 than the service granted for leave of absence. Any
5 employee contributions due may be deducted from any
6 benefits payable.
7 e. No credits or creditable service shall be
8 allowed for leave of absence without pay during any
9 period of prior service.
10 5. For military service: The governing body of a
11 municipality or participating instrumentality may elect
12 to allow creditable service to participating employees
13 who leave their employment to serve in the armed forces
14 of the United States for all periods of such service,
15 provided that the person returns to active employment
16 within 90 days after completion of full time active duty,
17 but no creditable service shall be allowed such person
18 for any period that can be used in the computation of a
19 pension or any other pay or benefit, other than pay for
20 active duty, for service in any branch of the armed
21 forces of the United States. If necessary to the
22 computation of any benefit, the board shall establish
23 municipality credits for participating employees under
24 this paragraph on the assumption that the employee
25 received earnings at the rate received at the time he
26 left the employment to enter the armed forces. A
27 participating employee in the armed forces shall not be
28 considered an employee during such period of service and
29 no additional death and no disability benefits are
30 payable for death or disability during such period.
31 Any participating employee who left his employment
32 with a municipality or participating instrumentality to
33 serve in the armed forces of the United States and who
34 again became a participating employee within 90 days
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1 after completion of full time active duty by entering the
2 service of a different municipality or participating
3 instrumentality, which has elected to allow creditable
4 service for periods of military service under the
5 preceding paragraph, shall also be allowed creditable
6 service for his period of military service on the same
7 terms that would apply if he had been employed, before
8 entering military service, by the municipality or
9 instrumentality which employed him after he left the
10 military service and the employer costs arising in
11 relation to such grant of creditable service shall be
12 charged to and paid by that municipality or
13 instrumentality.
14 Notwithstanding the foregoing, any participating
15 employee shall be entitled to creditable service as
16 required by any federal law relating to re-employment
17 rights of persons who served in the United States Armed
18 Services. Such creditable service shall be granted upon
19 payment by the member of an amount equal to the employee
20 contributions which would have been required had the
21 employee continued in service at the same rate of
22 earnings during the military leave period, plus interest
23 at the effective rate.
24 5.1. In addition to any creditable service
25 established under paragraph 5 of this subsection (a),
26 creditable service may be granted for up to 24 months of
27 service in the armed forces of the United States.
28 In order to receive creditable service for military
29 service under this paragraph 5.1, a participating
30 employee must (1) apply to the Fund in writing and
31 provide evidence of the military service that is
32 satisfactory to the Board; (2) obtain the written
33 approval of the current employer; and (3) make
34 contributions to the Fund equal to (i) the employee
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1 contributions that would have been required had the
2 service been rendered as a member, plus (ii) an amount
3 determined by the board to be equal to the employer's
4 normal cost of the benefits accrued for that military
5 service, plus (iii) interest on items (i) and (ii) from
6 the date of first membership in the Fund to the date of
7 payment. If payment is made during the 6-month period
8 that begins 3 months after the effective date of this
9 amendatory Act of 1997, the required interest shall be at
10 the rate of 2.5% per year, compounded annually;
11 otherwise, the required interest shall be calculated at
12 the regular interest rate.
13 6. For out-of-state service: Creditable service
14 shall be granted for service rendered to an out-of-state
15 local governmental body under the following conditions:
16 The employee had participated and has irrevocably
17 forfeited all rights to benefits in the out-of-state
18 public employees pension system; the governing body of
19 his participating municipality or instrumentality
20 authorizes the employee to establish such service; the
21 employee has 2 years current service with this
22 municipality or participating instrumentality; the
23 employee makes a payment of contributions, which shall be
24 computed at 8% (normal) plus 2% (survivor) times length
25 of service purchased times the average rate of earnings
26 for the first 2 years of service with the municipality or
27 participating instrumentality whose governing body
28 authorizes the service established plus interest at the
29 effective rate on the date such credits are established,
30 payable from the date the employee completes the required
31 2 years of current service to date of payment. In no
32 case shall more than 120 months of creditable service be
33 granted under this provision.
34 7. For retroactive service: Any employee who could
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1 have but did not elect to become a participating
2 employee, or who should have been a participant in the
3 Municipal Public Utilities Annuity and Benefit Fund
4 before that fund was superseded, may receive creditable
5 service for the period of service not to exceed 50
6 months; however, a current or former county board member
7 may establish credit under this paragraph 7 for more than
8 50 months of service as a member of the county board if
9 the excess over 50 months is approved by resolution of
10 the affected county board filed with the Fund before
11 January 1, 1999.
12 Any employee who is a participating employee on or
13 after September 24, 1981 and who was excluded from
14 participation by the age restrictions removed by Public
15 Act 82-596 may receive creditable service for the period,
16 on or after January 1, 1979, excluded by the age
17 restriction and, in addition, if the governing body of
18 the participating municipality or participating
19 instrumentality elects to allow creditable service for
20 all employees excluded by the age restriction prior to
21 January 1, 1979, for service during the period prior to
22 that date excluded by the age restriction. Any employee
23 who was excluded from participation by the age
24 restriction removed by Public Act 82-596 and who is not a
25 participating employee on or after September 24, 1981 may
26 receive creditable service for service after January 1,
27 1979. Creditable service under this paragraph shall be
28 granted upon payment of the employee contributions which
29 would have been required had he participated, with
30 interest at the effective rate for each year from the end
31 of the period of service established to date of payment.
32 8. For accumulated unused sick leave: A
33 participating employee who is applying for a retirement
34 annuity shall be entitled to creditable service for that
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1 portion of the employee's accumulated unused sick leave
2 for which payment is not received, as follows:
3 a. Sick leave days shall be limited to those
4 accumulated under a sick leave plan established by a
5 participating municipality or participating
6 instrumentality which is available to all employees
7 or a class of employees.
8 b. Only sick leave days accumulated with a
9 participating municipality or participating
10 instrumentality with which the employee was in
11 service within 60 days of the effective date of his
12 retirement annuity shall be credited; If the
13 employee was in service with more than one employer
14 during this period only the sick leave days with the
15 employer with which the employee has the greatest
16 number of unpaid sick leave days shall be
17 considered.
18 c. The creditable service granted shall be
19 considered solely for the purpose of computing the
20 amount of the retirement annuity and shall not be
21 used to establish any minimum service period
22 required by any provision of the Illinois Pension
23 Code, the effective date of the retirement annuity,
24 or the final rate of earnings.
25 d. The creditable service shall be at the rate
26 of 1/20 of a month for each full sick day, provided
27 that no more than 12 months may be credited under
28 this subdivision 8.
29 e. Employee contributions shall not be
30 required for creditable service under this
31 subdivision 8.
32 f. Each participating municipality and
33 participating instrumentality with which an employee
34 has service within 60 days of the effective date of
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1 his retirement annuity shall certify to the board
2 the number of accumulated unpaid sick leave days
3 credited to the employee at the time of termination
4 of service.
5 9. For service transferred from another system:
6 Credits and creditable service shall be granted for
7 service under Article 3, 4, 5, 14 or 16 of this Act, to
8 any active member of this Fund, and to any inactive
9 member who has been a county sheriff, upon transfer of
10 such credits pursuant to Section 3-110.3, 4-108.3, 5-235,
11 14-105.6 or 16-131.4, and payment by the member of the
12 amount by which (1) the employer and employee
13 contributions that would have been required if he had
14 participated in this Fund as a sheriff's law enforcement
15 employee during the period for which credit is being
16 transferred, plus interest thereon at the effective rate
17 for each year, compounded annually, from the date of
18 termination of the service for which credit is being
19 transferred to the date of payment, exceeds (2) the
20 amount actually transferred to the Fund. Such transferred
21 service shall be deemed to be service as a sheriff's law
22 enforcement employee for the purposes of Section 7-142.1.
23 (b) Creditable service - amount:
24 1. One month of creditable service shall be allowed
25 for each month for which a participating employee made
26 contributions as required under Section 7-173, or for
27 which creditable service is otherwise granted hereunder.
28 Not more than 1 month of service shall be credited and
29 counted for 1 calendar month, and not more than 1 year of
30 service shall be credited and counted for any calendar
31 year. A calendar month means a nominal month beginning
32 on the first day thereof, and a calendar year means a
33 year beginning January 1 and ending December 31.
34 2. A seasonal employee shall be given 12 months of
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1 creditable service if he renders the number of months of
2 service normally required by the position in a 12-month
3 period and he remains in service for the entire 12-month
4 period. Otherwise a fractional year of service in the
5 number of months of service rendered shall be credited.
6 3. An intermittent employee shall be given
7 creditable service for only those months in which a
8 contribution is made under Section 7-173.
9 (c) No application for correction of credits or
10 creditable service shall be considered unless the board
11 receives an application for correction while (1) the
12 applicant is a participating employee and in active
13 employment with a participating municipality or
14 instrumentality, or (2) while the applicant is actively
15 participating in a pension fund or retirement system which is
16 a participating system under the Retirement Systems
17 Reciprocal Act. A participating employee or other applicant
18 shall not be entitled to credits or creditable service unless
19 the required employee contributions are made in a lump sum or
20 in installments made in accordance with board rule.
21 (d) Upon the granting of a retirement, surviving spouse
22 or child annuity, a death benefit or a separation benefit, on
23 account of any employee, all individual accumulated credits
24 shall thereupon terminate. Upon the withdrawal of additional
25 contributions, the credits applicable thereto shall thereupon
26 terminate. Terminated credits shall not be applied to
27 increase the benefits any remaining employee would otherwise
28 receive under this Article.
29 (Source: P.A. 90-448, eff. 8-16-97.)
30 (40 ILCS 5/7-141) (from Ch. 108 1/2, par. 7-141)
31 Sec. 7-141. Retirement annuities - Conditions.
32 Retirement annuities shall be payable as hereinafter set
33 forth:
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1 (a) A participating employee who, regardless of cause,
2 is separated from the service of all participating
3 municipalities and instrumentalities thereof and
4 participating instrumentalities shall be entitled to a
5 retirement annuity provided:
6 1. He is at least age 55, or in the case of a person who
7 is eligible to have his annuity calculated under Section
8 7-142.1, he is at least age 50;
9 2. He is (i) an employee who was employed by any
10 participating municipality or participating instrumentality
11 which had not elected to exclude persons employed in
12 positions normally requiring performance of duty for less
13 than 1000 hours per year or was employed in a position
14 normally requiring performance of duty for 600 hours or more
15 per year prior to such election by any participating
16 municipality or participating instrumentality included in and
17 subject to this Article on or before the effective date of
18 this amendatory Act of 1981 which made such election and is
19 not entitled to receive earnings for employment in a position
20 normally requiring performance of duty for 600 hours or more
21 per year for any participating municipality and
22 instrumentalities thereof and participating instrumentality;
23 or (ii) an employee who was employed only by a participating
24 municipality or participating instrumentality, or
25 participating municipalities or participating
26 instrumentalities, which have elected to exclude persons in
27 positions normally requiring performance of duty for less
28 than 1000 hours per year after the effective date of such
29 exclusion or which are included under and subject to the
30 Article after the effective date of this amendatory Act of
31 1981 and elects to exclude persons in such positions, and is
32 not entitled to receive earnings for employment in a position
33 normally requiring performance of duty for 1000 hours or more
34 per year by such a participating municipality or
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1 participating instrumentality;
2 3. The amount of his annuity, before the application of
3 paragraph (b) of Section 7-142 is at least $10 per month;
4 4. If he first became a participating employee after
5 December 31, 1961, he has at least 8 years of service. This
6 service requirement shall not apply to any participating
7 employee, regardless of participation date, if the General
8 Assembly terminates the Fund.
9 (b) Retirement annuities shall be payable:
10 1. As provided in Section 7-119;
11 2. Except as provided in item 3, upon receipt by the
12 fund of a written application by the board. The effective
13 date may be not more than one year prior to the date of the
14 receipt by the fund of the application;
15 3. Upon attainment of age 70 1/2 if (i) the member (i)
16 has not submitted an application for the annuity, (ii) the
17 member has at least 8 years of service credit and is no
18 longer in service, and (ii) is otherwise entitled to an
19 annuity under this Article (iii) the pension amount is at
20 least $30 per month, and (iv) the Fund is able to locate the
21 member;
22 4. To the beneficiary of the deceased annuitant for the
23 unpaid amount accrued to date of death, if any.
24 (Source: P.A. 87-740.)
25 (40 ILCS 5/7-141.1)
26 Sec. 7-141.1. Early retirement incentive.
27 (a) The General Assembly finds and declares that:
28 (1) Units of local government across the State have
29 been functioning under a financial crisis.
30 (2) This financial crisis is expected to continue.
31 (3) Units of local government must depend on
32 additional sources of revenue and, when those sources are
33 not forthcoming, must establish cost-saving programs.
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1 (4) An early retirement incentive designed
2 specifically to target highly-paid senior employees could
3 result in significant annual cost savings.
4 (5) The early retirement incentive should be made
5 available only to those units of local government that
6 determine that an early retirement incentive is in their
7 best interest.
8 (6) A unit of local government adopting a program
9 of early retirement incentives under this Section is
10 encouraged to implement personnel procedures to prohibit,
11 for at least 5 years, the rehiring (whether on payroll or
12 by independent contract) of employees who receive early
13 retirement incentives.
14 (7) A unit of local government adopting a program
15 of early retirement incentives under this Section is also
16 encouraged to replace as few of the participating
17 employees as possible and to hire replacement employees
18 for salaries totaling no more than 80% of the total
19 salaries formerly paid to the employees who participate
20 in the early retirement program.
21 It is the primary purpose of this Section to encourage
22 units of local government that can realize true cost savings,
23 or have determined that an early retirement program is in
24 their best interest, to implement an early retirement
25 program.
26 (b) Until the effective date of this amendatory Act of
27 1997, this Section does not apply to any employer that is a
28 city, village, or incorporated town, nor to the employees of
29 any such employer. Beginning on the effective date of this
30 amendatory Act of 1997, any employer under this Article,
31 including an employer that is a city, village, or
32 incorporated town, may establish an early retirement
33 incentive program for its employees under this Section. The
34 decision of a city, village, or incorporated town to consider
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1 or establish an early retirement program is at the sole
2 discretion of that city, village, or incorporated town, and
3 nothing in this amendatory Act of 1997 limits or otherwise
4 diminishes this discretion. Nothing contained in this
5 Section shall be construed to require a city, village, or
6 incorporated town to establish an early retirement program
7 and no city, village, or incorporated town may be compelled
8 to implement such a program.
9 The benefits provided in this Section are available only
10 to members employed by a participating employer that has
11 filed with the Board of the Fund a resolution or ordinance
12 expressly providing for the creation of an early retirement
13 incentive program under this Section for its employees and
14 specifying the effective date of the early retirement
15 incentive program. Subject to the limitation in subsection
16 (h), an employer may adopt a resolution or ordinance
17 providing a program of early retirement incentives under this
18 Section at any time.
19 The resolution or ordinance shall be in substantially the
20 following form:
21 RESOLUTION (ORDINANCE) NO. ....
22 A RESOLUTION (ORDINANCE) ADOPTING AN EARLY
23 RETIREMENT INCENTIVE PROGRAM FOR EMPLOYEES
24 IN THE ILLINOIS MUNICIPAL RETIREMENT FUND
25 WHEREAS, Section 7-141.1 of the Illinois Pension Code
26 provides that a participating employer may elect to adopt an
27 early retirement incentive program offered by the Illinois
28 Municipal Retirement Fund by adopting a resolution or
29 ordinance; and
30 WHEREAS, The goal of adopting an early retirement program
31 is to realize a substantial savings in personnel costs by
32 offering early retirement incentives to employees who have
33 accumulated many years of service credit; and
34 WHEREAS, Implementation of the early retirement program
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1 will provide a budgeting tool to aid in controlling payroll
2 costs; and
3 WHEREAS, The (name of governing body) has determined that
4 the adoption of an early retirement incentive program is in
5 the best interests of the (name of participating employer);
6 therefore be it
7 RESOLVED (ORDAINED) by the (name of governing body) of
8 (name of participating employer) that:
9 (1) The (name of participating employer) does hereby
10 adopt the Illinois Municipal Retirement Fund early retirement
11 incentive program as provided in Section 7-141.1 of the
12 Illinois Pension Code. The early retirement incentive
13 program shall take effect on (date).
14 (2) In order to help achieve a true cost savings, a
15 person who retires under the early retirement incentive
16 program shall lose those incentives if he or she later
17 accepts employment with any IMRF employer in a position for
18 which participation in IMRF is required or is elected by the
19 employee.
20 (3) In order to utilize an early retirement incentive as
21 a budgeting tool, the (name of participating employer) will
22 use its best efforts either to limit the number of employees
23 who replace the employees who retire under the early
24 retirement program or to limit the salaries paid to the
25 employees who replace the employees who retire under the
26 early retirement program.
27 (4) The effective date of each employee's retirement
28 under this early retirement program shall be set by (name of
29 employer) and shall be no earlier than the effective date of
30 the program and no later than one year after that effective
31 date; except that the employee may require that the
32 retirement date set by the employer be no later than the June
33 30 next occurring after the effective date of the program and
34 no earlier than the date upon which the employee qualifies
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1 for retirement.
2 (5) To be eligible for the early retirement incentive
3 under this Section, the employee must have attained age 50
4 and have at least 20 years of creditable service by his or
5 her retirement date.
6 (6) The (clerk or secretary) shall promptly file a
7 certified copy of this resolution (ordinance) with the Board
8 of Trustees of the Illinois Municipal Retirement Fund.
9 CERTIFICATION
10 I, (name), the (clerk or secretary) of the (name of
11 participating employer) of the County of (name), State of
12 Illinois, do hereby certify that I am the keeper of the books
13 and records of the (name of employer) and that the foregoing
14 is a true and correct copy of a resolution (ordinance) duly
15 adopted by the (governing body) at a meeting duly convened
16 and held on (date).
17 SEAL
18 (Signature of clerk or secretary)
19 (c) To be eligible for the benefits provided under an
20 early retirement incentive program adopted under this
21 Section, a member must:
22 (1) be a participating employee of this Fund who,
23 on the effective date of the program, (i) is in active
24 payroll status as an employee of a participating employer
25 that has filed the required ordinance or resolution with
26 the Board, (ii) is on layoff status from such a position
27 with a right of re-employment or recall to service, (iii)
28 is on a leave of absence from such a position, or (iv) is
29 on disability but has not been receiving benefits under
30 Section 7-146 or 7-150 for a period of more than 2 years
31 from the date of application;
32 (2) have never previously received a retirement
33 annuity under this Article or under the Retirement
34 Systems Reciprocal Act using service credit established
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1 under this Article;
2 (3) (blank); file with the Board within 60 days of
3 the effective date of the program an application
4 requesting the benefits provided in this Section;
5 (4) have at least 20 years of creditable service in
6 the Fund by the date of retirement, without the use of
7 any creditable service established under this Section;
8 (5) have attained age 50 by the date of retirement,
9 without the use of any age enhancement received under
10 this Section; and
11 (6) be eligible to receive a retirement annuity
12 under this Article by the date of retirement, for which
13 purpose the age enhancement and creditable service
14 established under this Section may be considered.
15 (d) The employer shall determine the retirement date for
16 each employee participating in the early retirement program
17 adopted under this Section. The retirement date shall be no
18 earlier than the effective date of the program and no later
19 than one year after that effective date, except that the
20 employee may require that the retirement date set by the
21 employer be no later than the June 30 next occurring after
22 the effective date of the program and no earlier than the
23 date upon which the employee qualifies for retirement. The
24 employer shall give each employee participating in the early
25 retirement program at least 30 days written notice of the
26 employee's designated retirement date, unless the employee
27 waives this notice requirement.
28 (e) An eligible person may establish up to 5 years of
29 creditable service under this Section. In addition, for each
30 period of creditable service established under this Section,
31 a person shall have his or her age at retirement deemed
32 enhanced by an equivalent period.
33 The creditable service established under this Section may
34 be used for all purposes under this Article and the
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1 Retirement Systems Reciprocal Act, except for the computation
2 of final rate of earnings and the determination of earnings,
3 salary, or compensation under this or any other Article of
4 the Code.
5 The age enhancement established under this Section may be
6 used for all purposes under this Article (including
7 calculation of the reduction imposed under subdivision
8 (a)1b(iv) of Section 7-142), except for purposes of a
9 reversionary annuity under Section 7-145 and any
10 distributions required because of age. The age enhancement
11 established under this Section may be used in calculating a
12 proportionate annuity payable by this Fund under the
13 Retirement Systems Reciprocal Act, but shall not be used in
14 determining benefits payable under other Articles of this
15 Code under the Retirement Systems Reciprocal Act.
16 (f) For all creditable service established under this
17 Section, the member must pay to the Fund an employee
18 contribution consisting of 4.5% of the member's highest
19 annual salary rate used in the determination of the final
20 rate of earnings for retirement annuity purposes for each
21 year of creditable service granted under this Section. For
22 creditable service established under this Section by a person
23 who is a sheriff's law enforcement employee to be deemed
24 service as a sheriff's law enforcement employee, the employee
25 contribution shall be at the rate of 6.5% of highest annual
26 salary per year of creditable service granted. Contributions
27 for fractions of a year of service shall be prorated. Any
28 amounts that are disregarded in determining the final rate of
29 earnings under subdivision (d)(5) of Section 7-116 (the 125%
30 rule) shall also be disregarded in determining the required
31 contribution under this subsection (f).
32 The employee contribution shall be paid to the Fund as
33 follows: If the member is entitled to a lump sum payment for
34 accumulated vacation, sick leave, or personal leave upon
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1 withdrawal from service, the employer shall deduct the
2 employee contribution from that lump sum and pay the deducted
3 amount directly to the Fund. If there is no such lump sum
4 payment or the required employee contribution exceeds the net
5 amount of the lump sum payment, then the remaining amount
6 due, at the option of the employee, may either be paid to the
7 Fund before the annuity commences or deducted from the
8 retirement annuity in 24 equal monthly installments.
9 (g) An annuitant who has received any age enhancement or
10 creditable service under this Section and thereafter accepts
11 employment with or enters into a personal services contract
12 with an employer under this Article thereby forfeits that age
13 enhancement and creditable service. A person forfeiting
14 early retirement incentives under this subsection (i) must
15 repay to the Fund that portion of the retirement annuity
16 already received which is attributable to the early
17 retirement incentives that are being forfeited, (ii) shall
18 not be eligible to participate in any future early retirement
19 program adopted under this Section, and (iii) is entitled to
20 a refund of the employee contribution paid under subsection
21 (f). The Board shall deduct the required repayment from the
22 refund and may impose a reasonable payment schedule for
23 repaying the amount, if any, by which the required repayment
24 exceeds the refund amount.
25 (h) The additional unfunded liability accruing as a
26 result of the adoption of a program of early retirement
27 incentives under this Section by an employer shall be
28 amortized over a period of 10 years beginning on January 1 of
29 the second calendar year following the calendar year in which
30 the latest date for beginning to receive a retirement annuity
31 under the program (as determined by the employer under
32 subsection (d) of this Section) occurs; except that the
33 employer may provide for a shorter amortization period (of no
34 less than 5 years) by adopting an ordinance or resolution
HB1583 Enrolled -36- LRB9101658EGfg
1 specifying the length of the amortization period and
2 submitting a certified copy of the ordinance or resolution to
3 the Fund no later than 6 months after the effective date of
4 the program. An employer, at its discretion, may accelerate
5 payments to the Fund.
6 An employer may provide more than one early retirement
7 incentive program for its employees under this Section.
8 However, an employer that has provided an early retirement
9 incentive program for its employees under this Section may
10 not provide another early retirement incentive program under
11 this Section until the liability arising from the earlier
12 program has been fully paid to the Fund.
13 (Source: P.A. 89-329, eff. 8-17-95; 90-32, eff. 6-27-97.)
14 (40 ILCS 5/7-145.1)
15 Sec. 7-145.1. Alternative annuity for county officers.
16 (a) The benefits provided in this Section and Section
17 7-145.2 are available only if the county board has filed with
18 the Board of the Fund a resolution or ordinance expressly
19 consenting to the availability of these benefits for its
20 elected county officers. The county board's consent is
21 irrevocable with respect to persons participating in the
22 program, but may be revoked at any time with respect to
23 persons who have not paid an additional optional contribution
24 under this Section before the date of revocation.
25 An elected county officer may elect to establish
26 alternative credits for an alternative annuity by electing in
27 writing to make additional optional contributions in
28 accordance with this Section and procedures established by
29 the board. These alternative credits are available only for
30 periods of service as an elected county officer. The elected
31 county officer may discontinue making the additional optional
32 contributions by notifying the Fund in writing in accordance
33 with this Section and procedures established by the board.
HB1583 Enrolled -37- LRB9101658EGfg
1 Additional optional contributions for the alternative
2 annuity shall be as follows:
3 (1) For service as an elected county officer after
4 the option is elected, an additional contribution of 3%
5 of salary shall be contributed to the Fund on the same
6 basis and under the same conditions as contributions
7 required under Section 7-173.
8 (2) For service as an elected county officer before
9 the option is elected, an additional contribution of 3%
10 of the salary for the applicable period of service, plus
11 interest at the effective rate from the date of service
12 to the date of payment, plus any additional amount
13 required by the county board under paragraph (3). All
14 payments for past service must be paid in full before
15 credit is given.
16 (3) With respect to service as an elected county
17 officer before the option is elected, if payment is made
18 after the county board has filed with the Board of the
19 Fund a resolution or ordinance requiring an additional
20 contribution under this paragraph, then the contribution
21 required under paragraph (2) shall include an amount to
22 be determined by the Fund, equal to the actuarial present
23 value of the additional employer cost that would
24 otherwise result from the alternative credits being
25 established for that service. A county board's
26 resolution or ordinance requiring additional
27 contributions under this paragraph (3) is irrevocable.
28 No additional optional contributions may be made for any
29 period of service for which credit has been previously
30 forfeited by acceptance of a refund, unless the refund is
31 repaid in full with interest at the effective rate from the
32 date of refund to the date of repayment.
33 (b) In lieu of the retirement annuity otherwise payable
34 under this Article, an elected county officer who (1) has
HB1583 Enrolled -38- LRB9101658EGfg
1 elected to participate in the Fund and make additional
2 optional contributions in accordance with this Section, (2)
3 has held and made additional optional contributions with
4 respect to the same elected county office for at least 8
5 years, and (3) has attained age 55 with at least 8 years of
6 service credit (or has attained age 50 with at least 20 years
7 of service as a sheriff's law enforcement employee) may elect
8 to have his retirement annuity computed as follows: 3% of
9 the participant's salary for each of the first 8 years of
10 service credit, plus 4% of that salary for each of the next 4
11 years of service credit, plus 5% of that salary for each year
12 of service credit in excess of 12 years, subject to a maximum
13 of 80% of that salary.
14 This formula applies only to service in an elected county
15 office that the officer held for at least 8 years, and only
16 to service for which additional optional contributions have
17 been paid under this Section. If an elected county officer
18 qualifies to have this formula applied to service in more
19 than one elected county office, the qualifying service shall
20 be accumulated for purposes of determining the applicable
21 accrual percentages, but the salary used for each office
22 shall be the separate salary calculated for that office, as
23 defined in subsection (g).
24 To the extent that the elected county officer has service
25 credit that does not qualify for this formula, his retirement
26 annuity will first be determined in accordance with this
27 formula with respect to the service to which this formula
28 applies, and then in accordance with the remaining Sections
29 of this Article with respect to the service to which this
30 formula does not apply.
31 (c) In lieu of the disability benefits otherwise payable
32 under this Article, an elected county officer who (1) has
33 elected to participate in the Fund, and (2) has become
34 permanently disabled and as a consequence is unable to
HB1583 Enrolled -39- LRB9101658EGfg
1 perform the duties of his office, and (3) was making optional
2 contributions in accordance with this Section at the time the
3 disability was incurred, may elect to receive a disability
4 annuity calculated in accordance with the formula in
5 subsection (b). For the purposes of this subsection, an
6 elected county officer shall be considered permanently
7 disabled only if: (i) disability occurs while in service as
8 an elected county officer and is of such a nature as to
9 prevent him from reasonably performing the duties of his
10 office at the time; and (ii) the board has received a written
11 certification by at least 2 licensed physicians appointed by
12 it stating that the officer is disabled and that the
13 disability is likely to be permanent.
14 (d) Refunds of additional optional contributions shall
15 be made on the same basis and under the same conditions as
16 provided under Section 7-166, 7-167 and 7-168. Interest
17 shall be credited at the effective rate on the same basis and
18 under the same conditions as for other contributions.
19 If an elected county officer fails to hold that same
20 elected county office for at least 8 years, he or she shall
21 be entitled after leaving office to receive a refund of the
22 additional optional contributions made with respect to that
23 office, plus interest at the effective rate.
24 (e) The plan of optional alternative benefits and
25 contributions shall be available to persons who are elected
26 county officers and active contributors to the Fund on or
27 after November 15, 1994. A person who was an elected county
28 officer and an active contributor to the Fund on November 15,
29 1994 but is no longer an active contributor may apply to make
30 additional optional contributions under this Section at any
31 time within 90 days after the effective date of this
32 amendatory Act of 1997; if the person is an annuitant, the
33 resulting increase in annuity shall begin to accrue on the
34 first day of the month following the month in which the
HB1583 Enrolled -40- LRB9101658EGfg
1 required payment is received by the Fund.
2 (f) For the purposes of this Section and Section
3 7-145.2, the terms "elected county officer" and "elected
4 county office" include, but are not limited to: (1) the
5 county clerk, recorder, treasurer, coroner, assessor (if
6 elected), auditor, sheriff, and State's Attorney; members of
7 the county board; and the clerk of the circuit court; and (2)
8 a person who has been appointed to fill a vacancy in an
9 office that is normally filled by election on a countywide
10 basis, for the duration of his or her service in that office.
11 The terms "elected county officer" and "elected county
12 office" do not include any officer or office of a county that
13 has not consented to the availability of benefits under this
14 Section and Section 7-145.2.
15 (g) For the purposes of this Section and Section
16 7-145.2, the term "salary" means the final rate of earnings
17 for the elected county office held, calculated in a manner
18 consistent with Section 7-116, but for that office only. If
19 an elected county officer qualifies to have the formula in
20 subsection (b) applied to service in more than one elected
21 county office, a separate salary shall be calculated and
22 applied with respect to each such office.
23 (h) The changes to this Section made by this amendatory
24 Act of the 91st General Assembly apply to persons who first
25 make an additional optional contribution under this Section
26 on or after the effective date of this amendatory Act.
27 (Source: P.A. 90-32, eff. 6-27-97; 91-685, eff. 1-26-00.)
28 (40 ILCS 5/7-157) (from Ch. 108 1/2, par. 7-157)
29 Sec. 7-157. Surviving spouse annuities - marriage to
30 terminate. If a any surviving spouse annuitant marries,
31 before reaching age 55, the annuity shall be terminated as of
32 the end of the calendar month following the month in which
33 the marriage occurs, unless the marriage occurs after
HB1583 Enrolled -41- LRB9101658EGfg
1 December 31, 2000.
2 (Source: P.A. 81-618.)
3 (40 ILCS 5/7-164) (from Ch. 108 1/2, par. 7-164)
4 Sec. 7-164. Death benefits - Amount. The amount of the
5 death benefit shall be:
6 1. Upon the death of an employee with at least one year
7 of service occurring while in an employment relationship
8 (including employees drawing disability benefits) with a
9 participating municipality or participating instrumentality,
10 an amount equal to the sum of:
11 (a) The employee's normal, additional and survivor
12 credits, including interest credited thereto through the
13 end of the preceding calendar year, but excluding credits
14 and interest thereon allowed for periods of disability.
15 (b) An amount equal to the employee's annual final
16 rate of earnings. An employee who dies as a result of
17 injuries connected with his duties shall be considered to
18 have a year of service for purposes of this benefit.
19 2. Upon the death of an employee with less than 1 year
20 of service occurring while in the service of any
21 participating municipality or instrumentality, an amount
22 equal to the sum of his accumulated normal, additional and
23 survivor credits on the date of death, excluding those
24 credits and interest thereon allowed during periods of
25 disability.
26 3. Upon the death of an employee who has separated from
27 service and was not entitled to a retirement annuity on the
28 date of death, an amount equal to the sum of his accumulated
29 normal, survivor and additional credits on the date of death
30 excluding those credits and interest thereon allowed during
31 periods of disability.
32 4. Upon the death of an employee in an employment
33 relationship, or an employee who has service and was entitled
HB1583 Enrolled -42- LRB9101658EGfg
1 to a retirement annuity on the date of death, when a
2 surviving spouse or child annuity is awarded, $3,000.
3 5. Upon the death of an employee, who has separated from
4 service and was entitled to a retirement annuity on the date
5 of death, and no surviving spouse or child annuity is
6 awarded, $3,000 plus an amount equal to his accumulated
7 normal, survivor and additional credits on the date of death,
8 excluding those credits and interest earned thereon allowed
9 during periods of disability.
10 6. Upon the death of an employee annuitant, $3,000 and,
11 unless a surviving spouse, child or reversionary annuity is
12 payable, the sum of (i) the excess of the normal and survivor
13 credits, excluding those allowed during periods of
14 disability, which the annuitant had as of the effective date
15 of his annuity over the total annuities paid pursuant to
16 paragraph (a) 1 of Section 7-142 to the date of death, plus
17 (ii) the excess of the additional credits, excluding any such
18 credits used to create a reversionary annuity, used to
19 provide the annuity granted pursuant to paragraph (a) 2 of
20 Section 7-142 over the total annuity payments made pursuant
21 thereto to the time of death.
22 7. Upon the death of an annuitant receiving a
23 reversionary annuity or of a person designated to receive a
24 reversionary annuity prior to the receipt of such annuity the
25 sum of the additional credits of the person creating the
26 reversionary annuity as of the effective date of his own
27 retirement annuity over the reversionary annuity payments, if
28 any, made prior to the date of death of such annuitant or
29 person designated to receive the reversionary annuity.
30 8. Upon the death of an annuitant receiving a
31 beneficiary annuity which was effective before January 1,
32 1986, the excess of the death benefit which was used to
33 provide the annuity, over the sum of all annuity payments
34 made to the beneficiary. Upon the death of an annuitant
HB1583 Enrolled -43- LRB9101658EGfg
1 receiving a beneficiary annuity effective January 1, 1986 or
2 thereafter, the sum of (i) the excess of the normal and
3 survivor credits, excluding those allowed during periods of
4 disability, which the annuitant had as of the effective date
5 of his annuity over the total annuities paid pursuant to
6 paragraph (c) of Section 7-165, to date of death, plus (ii)
7 the excess of the additional credits, excluding any such
8 credits used to create a reversionary annuity, used to
9 provide the annuity granted pursuant to paragraph (d) of
10 Section 7-165 over the total annuity payments made pursuant
11 thereto to the time of death.
12 9. Upon the marriage prior to reaching age 55 (except
13 for a surviving spouse who remarries after December 31, 2000)
14 or death of a person receiving a surviving spouse annuity,
15 unless a child annuity is payable, the sum of (i) the excess
16 of the normal and survivor credits, excluding those credits
17 and interest thereon allowed during periods of disability,
18 attributable to the employee at the effective date of the
19 annuity or date of death, whichever first occurred, over the
20 total of all annuity payments attributable to paragraph (a) 1
21 of Section 7-142 made to the employee or surviving spouse
22 plus (ii) the excess of the additional credits, excluding any
23 such credits used to create a reversionary annuity or used to
24 provide the annuity attributable to paragraph (a) 2 of
25 Section 7-142 over the total of such payments.
26 10. Upon the marriage, death or attainment of age 18 of
27 a child receiving a child annuity, if no other child
28 annuities are payable, the sum of (i) the excess of the
29 normal and survivor credits excluding those credits and
30 interest thereon allowed during periods of disability, of the
31 employee at the effective date of the annuity or date of
32 death, whichever first occurred, over the total annuity
33 payments attributable to paragraph (a) 1 of Section 7-142
34 made to the employee, surviving spouse and children plus (ii)
HB1583 Enrolled -44- LRB9101658EGfg
1 the excess of the additional credits, excluding any such
2 credits used to create a reversionary annuity, used to
3 provide the annuity attributable to paragraph (a) 2 of
4 Section 7-142 over the total annuity payments made to the
5 employee, surviving spouse and children, pursuant thereto.
6 11. Upon the death of the participating employee whose
7 annuity was suspended upon his return to employment:
8 a. If a surviving spouse or child annuity is
9 awarded, $3,000;
10 b. If no surviving spouse or child annuity is
11 awarded and he had less than one year's service upon
12 return, $3,000 plus the excess of the normal, survivor
13 and additional credits, including interest thereon, but
14 excluding those allowed during a period of disability, at
15 the effective date of the suspended annuity, plus those
16 allowed after his return, over all annuity payments made
17 to the employee;
18 c. If no surviving spouse or child annuity is
19 awarded and he has one year or more of service upon
20 return, the higher of (a) the payment under subparagraph
21 b of this paragraph or (b) the payment under paragraph 1
22 of this Section, taking into consideration only the
23 service and credits allowed after his return, plus the
24 excess of the normal, survivor and additional credits,
25 including interest thereon, excluding those allowed
26 during periods of disability, at the effective date of
27 his suspended annuity over all annuity payments made to
28 the employee.
29 12. The $3,000 death benefit provided in paragraphs 4
30 and 6 shall not be payable to beneficiaries of persons who
31 terminated service prior to September 8, 1971, unless the
32 payment or agreement for payment provided by Section 7-144.2
33 of this Article is made prior to the date of death.
34 13. The increase in certain death benefits from $1,000
HB1583 Enrolled -45- LRB9101658EGfg
1 to $3,000 provided by this amendatory Act of 1987 shall apply
2 only to deaths occurring on or after January 1, 1988.
3 (Source: P.A. 85-941.)
4 (40 ILCS 5/7-166) (from Ch. 108 1/2, par. 7-166)
5 Sec. 7-166. Separation benefits - Eligibility.
6 Separation benefits shall be payable as hereinafter set
7 forth:
8 1. Upon separation from the service of all participating
9 municipalities and instrumentalities thereof and
10 participating instrumentalities, any participating employee
11 upon the termination of his participation as a participating
12 employee who, on the date of application for such benefit, is
13 not entitled to a retirement annuity shall be entitled to a
14 separation benefit;
15 2. Upon separation from the service of all participating
16 municipalities and instrumentalities thereof and
17 participating instrumentalities, any participating employee
18 upon the termination of his participation as a participating
19 employee who, on the date of application for such benefit, is
20 entitled to a retirement annuity of less than $30 per month
21 for life may elect to take a separation benefit in lieu of
22 the retirement annuity.
23 (Source: Laws 1963, p. 161.)
24 (40 ILCS 5/7-167) (from Ch. 108 1/2, par. 7-167)
25 Sec. 7-167. Separation benefits - Payment. Separation
26 benefits shall be paid in the form of a single cash sum as
27 soon as practicable after receipt by the board of:
28 1. a written application by the employee for such
29 benefits; and
30 2. written notice from the last employing
31 participating municipality or instrumentality thereof or
32 participating instrumentality, certifying that such
HB1583 Enrolled -46- LRB9101658EGfg
1 participating employee has separated from service
2 terminated his participation.
3 (Source: Laws 1963, p. 161.)
4 (40 ILCS 5/7-184) (from Ch. 108 1/2, par. 7-184)
5 Sec. 7-184. To determine prior service.
6 To determine the length of prior service from such
7 information as is available. Any such determination shall be
8 conclusive as to any such period of service, unless within 2
9 years of the issuance of the first individual statement to an
10 employee, the board reconsiders the case and changes the
11 determination.
12 The change to this Section made by this amendatory Act of
13 the 91st General Assembly applies without regard to whether
14 the individual is in service on or after the effective date
15 of this amendatory Act.
16 (Source: Laws 1963, p. 161.)
17 (40 ILCS 5/7-211) (from Ch. 108 1/2, par. 7-211)
18 Sec. 7-211. Authorizations.
19 (a) Each participating municipality and instrumentality
20 thereof and each participating instrumentality shall:
21 1. Deduct all normal and additional contributions
22 and contributions for federal Social Security taxes as
23 required by the Social Security Enabling Act from each
24 payment of earnings payable to each participating
25 employee who is entitled to any earnings from such
26 municipality or instrumentality thereof or participating
27 instrumentality, and to remit all such contributions
28 immediately to the board; and
29 2. Pay to the board contributions required by this
30 Article.
31 (b) Each participating employee shall, by virtue of the
32 payment of contributions to this fund, receive a vested
HB1583 Enrolled -47- LRB9101658EGfg
1 interest in the annuities and benefits provided in this
2 Article and in consideration of such vested interest shall be
3 deemed to have agreed and authorized the deduction from
4 earnings of all contributions payable to this fund in
5 accordance with this Article.
6 (c) Payment of earnings less the amounts of
7 contributions provided in this Article and in the Social
8 Security Enabling Act shall be a full and complete discharge
9 of all claims for payment for services rendered by any
10 employee during the period covered by any such payment.
11 (d) Any covered annuitant may authorize the withholding
12 of all or a portion of his or her annuity, for the payment of
13 premiums on group accident and health insurance provided
14 pursuant to Section 7-199.1. The annuitant may revoke this
15 authorization at any time.
16 (Source: P.A. 84-812.)
17 (40 ILCS 5/7-224 new)
18 Sec. 7-224. Section 415 limitations. Notwithstanding
19 any other provisions of this Article, the combined benefits
20 and contributions provided to any participating employee by
21 all plans of any participating municipality and its
22 instrumentalities and any participating instrumentality shall
23 not exceed the limitations specified in Section 415(b), (c),
24 and (e) of the Internal Revenue Code of 1986. If a
25 participating employee's benefits or contributions under this
26 Article, combined with those under any other plan of the
27 participating municipality and its instrumentalities or
28 participating instrumentality, would otherwise violate those
29 limitations, the benefits and contributions under the other
30 plan shall be reduced, rather than the benefits and
31 contributions provided under this Article. To the extent
32 that the other plan fails to limit such benefits and
33 contributions, that plan shall be disqualified.
HB1583 Enrolled -48- LRB9101658EGfg
1 (40 ILCS 5/8-125) (from Ch. 108 1/2, par. 8-125)
2 Sec. 8-125. Annuity.
3 "Annuity": Equal monthly payments for life, unless
4 otherwise specified.
5 For annuities taking effect before January 1, 1998, the
6 first payment shall be due and payable one month after the
7 occurrence of the event upon which payment of the annuity
8 depends, and the last payment shall be due and payable as of
9 the date of the annuitant's death and shall be prorated from
10 the date of the last preceding payment to the date of death
11 for deaths that occur on or before March 31, 2000. All
12 payments made on or after April 1, 2000 shall be made on the
13 first day of the calendar month and the last payment shall be
14 made on the first day of the calendar month in which the
15 annuity payment period ends. All payments for months
16 beginning with April of 2000 shall be for the entire calendar
17 month, without proration. A pro rata amount shall be paid for
18 that part of the month from the March 2000 annuity payment
19 date through March 31, 2000.
20 For annuities taking effect on or after January 1, 1998,
21 payments shall be made as of the first day of the calendar
22 month, with the first payment to be made as of the first day
23 of the calendar month coincidental with or next following the
24 first day of the annuity payment period, and the last payment
25 to be made as of the first day of the calendar month in which
26 the annuity payment period ends. For annuities taking effect
27 on or after January 1, 1998, all payments shall be for the
28 entire calendar month, without proration.
29 For the purposes of this Section, the "annuity payment
30 period" means the period beginning on the day after the
31 occurrence of the event upon which payment of the annuity
32 depends, and ending on the day upon which the death of the
33 annuitant or other event terminating the annuity occurs.
34 (Source: P.A. 90-31, eff. 6-27-97.)
HB1583 Enrolled -49- LRB9101658EGfg
1 (40 ILCS 5/8-139) (from Ch. 108 1/2, par. 8-139)
2 Sec. 8-139. Reversionary annuity.
3 (a) An employee, prior to retirement on annuity, may
4 elect to take a lesser amount of annuity and provide, with
5 the actuarial value of the amount by which his annuity is
6 reduced, a reversionary annuity for a wife, husband, parent,
7 child, brother or sister. The option shall be exercised by
8 filing a written designation with the board prior to
9 retirement, and may be revoked by the employee at any time
10 before retirement. The death of the employee prior to his
11 retirement shall automatically void the option.
12 (b) The death of the designated reversionary annuitant
13 prior to the employee's retirement shall automatically void
14 the option. If the reversionary annuitant dies after the
15 employee's retirement, and before the death of the employee
16 annuitant, the reduced annuity being paid to the retired
17 employee annuitant shall be increased to the amount of
18 annuity before reduction for the reversionary annuity and no
19 reversionary annuity shall be payable.
20 The option is subject to the further condition that no
21 reversionary annuity shall be paid to a parent, child,
22 brother, or sister if the employee dies before the expiration
23 of 365 days from the date his written designation was filed
24 with the board, even though he has retired and is receiving a
25 reduced annuity.
26 (c) The employee exercising this option shall not reduce
27 his retirement annuity by more than $400 a month, or elect to
28 provide a reversionary annuity of less than $50 per month.
29 No option shall be permitted if the reversionary annuity for
30 a widow, when added to the widow's annuity payable under this
31 Article, exceeds 100% of the reduced annuity payable to the
32 employee.
33 (d) A reversionary annuity shall begin on the day
34 following the death of the annuitant and shall be paid as
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1 provided in Section 8-125.
2 (e) The increases in annuity provided in Section 8-137
3 of this Article shall, as to an employee so electing a
4 reduced annuity relate to the amount of the original annuity,
5 and such amount shall constitute the annuity on which such
6 automatic increases shall be based.
7 (f) For annuities elected after June 30, 1983, the
8 amount of the monthly reversionary annuity shall be
9 determined by multiplying the amount of the monthly reduction
10 in the employee's annuity by the factor in the following
11 table based on the age of the employee and the difference in
12 the age of the employee and the age of the reversionary
13 annuitant at the starting date of the employee's annuity:
14 Employee's Age
15 Reversionary
16 Annuitant's
17 Age 50-51 52-54 55-57 58-60 61-63 64-66 67-69 70 &
18 Over
19 30 or
20 more
21 years
22 younger 3.03 2.56 2.18 1.84 1.55 1.29 1.08 0.91
23 25-29
24 years
25 younger 3.16 2.68 2.29 1.94 1.63 1.37 1.15 0.97
26 20-24
27 years
28 younger 3.35 2.85 2.44 2.07 1.75 1.48 1.25 1.06
29 15-19
30 years
31 younger 3.60 3.08 2.65 2.26 1.92 1.63 1.39 1.19
32 10-14
33 years
34 younger 3.96 3.40 2.94 2.53 2.16 1.85 1.59 1.37
HB1583 Enrolled -51- LRB9101658EGfg
1 5-9
2 years
3 younger 4.46 3.84 3.35 2.90 2.51 2.16 1.88 1.64
4 0-4
5 years
6 younger 5.15 4.47 3.93 3.44 3.00 2.61 2.29 2.02
7 1-5
8 years
9 older 6.12 5.36 4.76 4.21 3.71 3.26 2.88 2.56
10 6-10
11 years
12 older 7.48 6.61 5.93 5.30 4.71 4.16 3.70 3.29
13 11-15
14 years
15 older 9.37 8.35 7.58 6.83 6.11 5.40 4.82 4.32
16 16-20
17 years
18 older 11.99 10.78 9.84 8.93 8.02 7.13 6.43 5.87
19 21-25
20 years
21 older 15.59 14.06 12.91 11.82 10.73 9.66 8.88 8.35
22 26-30
23 years
24 older 20.42 18.49 17.15 15.96 14.80 13.65 12.97 12.82
25 31 or
26 more
27 years
28 older 27.07 24.72 23.34 22.32 21.45 20.62 20.85 23.28
29 (Source: P.A. 90-31, eff. 6-27-97; 90-766, eff. 8-14-98.)
30 (40 ILCS 5/8-153) (from Ch. 108 1/2, par. 8-153)
31 Sec. 8-153. Widow's remarriage marriage to terminate
32 annuity. A widow's annuity shall terminate when she remarries
33 if the marriage takes place before the date 60 days after the
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1 effective date of this amendatory Act of the 91st General
2 Assembly. If a widow remarries 60 or more days after the
3 effective date of this amendatory Act of the 91st General
4 Assembly, the widow's annuity shall continue without
5 interruption.
6 When a widow dies, if she has not received, in the form
7 of an annuity, an amount equal to the total credited from
8 employee's contributions and applied for the widow's annuity,
9 the difference between such annuity credits and the amount
10 received by her shall be refunded to her, provided, that if a
11 reversionary annuity is payable to her, or to any other
12 person designated by the employee, such amount shall not be
13 refunded but the reversionary annuity shall be payable. If
14 there is any child of the employee who is under 18 years of
15 age, the part of any such amount that is required to pay an
16 annuity to the child shall be transferred to the child's
17 annuity reserve. In making refunds under this Section, no
18 interest shall be paid upon either the total of annuity
19 payments made or the amounts subject to refund. Any refund
20 shall be paid according to the provisions of Section 8-170.
21 A subsequent change in marital status of the widow shall
22 not effect any restoration of any rights under this Article
23 except in the case of declaration of invalidity of a
24 subsequent marriage wherein the declaration of invalidity is
25 based upon charges of bigamy by the subsequent husband or the
26 legal disability of the subsequent husband to enter into a
27 marriage.
28 (Source: P.A. 83-706.)
29 (40 ILCS 5/8-171) (from Ch. 108 1/2, par. 8-171)
30 Sec. 8-171. Refund in lieu of annuity. In lieu of an
31 annuity, an employee who withdraws and whose annuity would
32 amount to less than $800 $300 a month for life, may elect to
33 receive a refund of his accumulated contributions for annuity
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1 purposes, based on the amounts contributed by him.
2 The widow of any employee, eligible for annuity upon the
3 death of her husband, whose widow's annuity would amount to
4 less than $800 $300 a month for life, may, in lieu of widow's
5 annuity, elect to receive a refund of the accumulated
6 contributions for annuity purposes, based on the amounts
7 contributed by her deceased employee husband, but reduced by
8 any amounts theretofore paid to him in the form of an annuity
9 or refund out of such accumulated contributions.
10 Accumulated contributions shall mean the amounts -
11 including the interest credited thereon - contributed by the
12 employee for age and service and widow's annuity to the date
13 of his withdrawal or death, whichever first occurs, including
14 any amounts contributed for him as salary deductions while
15 receiving duty disability benefits, and, if not otherwise
16 included, any accumulations from sums contributed by him and
17 applied to any pension fund superseded by this fund.
18 The acceptance of such refund in lieu of widow's annuity,
19 on the part of a widow, shall not deprive a child or children
20 of the right to receive a child's annuity as provided for in
21 Sections 8-158 and 8-159 of this Article, and neither shall
22 the payment of a child's annuity in the case of such refund
23 to a widow reduce the amount herein set forth as refundable
24 to such widow electing a refund in lieu of widow's annuity.
25 (Source: P.A. 86-1488.)
26 (40 ILCS 5/8-244) (from Ch. 108 1/2, par. 8-244)
27 Sec. 8-244. Annuities, etc., exempt.
28 (a) All annuities, refunds, pensions, and disability
29 benefits granted under this Article, shall be exempt from
30 attachment or garnishment process and shall not be seized,
31 taken, subjected to, detained, or levied upon by virtue of
32 any judgment, or any process or proceeding whatsoever issued
33 out of or by any court in this State, for the payment and
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1 satisfaction in whole or in part of any debt, damage, claim,
2 demand, or judgment against any annuitant, pensioner,
3 participant, refund applicant, or other beneficiary
4 hereunder.
5 (b) No annuitant, pensioner, refund applicant, or other
6 beneficiary shall have any right to transfer or assign his
7 annuity, refund, or disability benefit or any part thereof by
8 way of mortgage or otherwise, except that:
9 (1) an annuitant or pensioner who elects or has
10 elected to participate in a non-profit group hospital
11 care plan or group medical surgical plan may with the
12 approval of the board and in conformity with its
13 regulations authorize the board to withhold from the
14 pension or annuity the current premium for such coverage
15 and pay such premium to the organization underwriting
16 such plan;
17 (2) in the case of refunds, a participant may
18 pledge by assignment, power of attorney, or otherwise, as
19 security for a loan from a legally operating credit union
20 making loans only to participants in certain public
21 employee pension funds described in the Illinois Pension
22 Code, all or part of any refund which may become payable
23 to him in the event of his separation from service; and
24 (3) the board, in its discretion, may pay to the
25 wife of any annuitant, pensioner, refund applicant, or
26 disability beneficiary, such an amount out of her
27 husband's annuity pension, refund, or disability benefit
28 as any court of competent jurisdiction may order, or such
29 an amount as the board may consider necessary for the
30 support of his wife or children, or both in the event of
31 his disappearance or unexplained absence or of his
32 failure to support such wife or children.
33 (c) The board may retain out of any future annuity,
34 pension, refund or disability benefit payments, such amount,
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1 or amounts, as it may require for the repayment of any moneys
2 paid to any annuitant, pensioner, refund applicant, or
3 disability beneficiary through misrepresentation, fraud or
4 error. Any such action of the board shall relieve and
5 release the board and the fund from any liability for any
6 moneys so withheld.
7 (d) Whenever an annuity or disability benefit is payable
8 to a minor or to a person certified by a medical doctor
9 adjudged to be under legal disability, the board, in its
10 discretion and when it is in to the best interest of the
11 person concerned, may waive guardianship proceedings and pay
12 the annuity or benefit to the person providing or caring for
13 the minor or and to the wife, parent or blood relative
14 providing or caring for the person under legal disability.
15 In the event that a person certified by a medical doctor
16 to be under legal disability (i) has no spouse, blood
17 relative, or other person providing or caring for him or
18 her, (ii) has no guardian of his or her estate, and (iii) is
19 confined to a Medicare approved, State certified nursing home
20 or to a publicly owned and operated nursing home, hospital,
21 or mental institution, the Board may pay any benefit due that
22 person to the nursing home, hospital, or mental institution,
23 to be used for the sole benefit of the person under legal
24 disability.
25 Payment in accordance with this subsection to a person,
26 nursing home, hospital, or mental institution for the benefit
27 of a minor or person under legal disability shall be an
28 absolute discharge of the Fund's liability with respect to
29 the amount so paid. Any person, nursing home, hospital, or
30 mental institution accepting payment under this subsection
31 shall notify the Fund of the death or any other relevant
32 change in the status of the minor or person under legal
33 disability.
34 (Source: P.A. 86-1488.)
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1 (40 ILCS 5/9-149) (from Ch. 108 1/2, par. 9-149)
2 Sec. 9-149. Widow's remarriage marriage to terminate
3 annuity. A widow's annuity shall terminate when she
4 remarries if the marriage takes place before the date 60 days
5 after the effective date of this amendatory Act of the 91st
6 General Assembly. If a widow remarries 60 or more days after
7 the effective date of this amendatory Act of the 91st General
8 Assembly, the widow's annuity shall continue without
9 interruption.
10 When a widow dies, if she has not received, in the form
11 of an annuity, an amount equal to the total sums accumulated
12 and credited from the employee's contributions and applied
13 for the widow's annuity, the difference between such
14 accumulated annuity credits and the amount received by her in
15 annuity payments shall be refunded to her; provided that if a
16 reversionary annuity is payable to her or to any other person
17 designated by the employee, this such aforesaid amount shall
18 not be refunded, but the reversionary annuity shall be
19 payable.
20 (Source: P.A. 81-1536.)
21 (40 ILCS 5/9-194) (from Ch. 108 1/2, par. 9-194)
22 Sec. 9-194. To invest the reserves. To invest the
23 reserves of the fund in accordance with Sections 1-109,
24 1-109.1, 1-109.2, 1-110, 1-111, 1-114, and 1-115 of this Act.
25 Investments made in accordance with Section 1-113 shall be
26 deemed to be prudent the provisions set forth in Section
27 1-113 of this Act.
28 The retirement board may sell any security held by it at
29 any time it deems it desirable.
30 The board may enter into agreements and execute documents
31 that it determines to be necessary to complete any investment
32 transaction.
33 All investments shall be clearly held and accounted for
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1 to indicate ownership by the board. The board may direct the
2 registration of securities in its own name or in the name of
3 a nominee created for the express purpose of registration of
4 securities by a savings and loan association or national or
5 State bank or trust company authorized to conduct a trust
6 business in the State of Illinois.
7 Investments shall be carried at cost or at a value
8 determined in accordance with generally accepted accounting
9 principles.
10 (Source: P.A. 82-960.)
11 (40 ILCS 5/11-124) (from Ch. 108 1/2, par. 11-124)
12 Sec. 11-124. Annuity.
13 "Annuity": Equal monthly payments for life, unless
14 terminated earlier under Section 11-148, 11-152, 11-153, or
15 11-230.
16 For annuities taking effect before January 1, 1998, the
17 first payment shall be due and payable one month after the
18 occurrence of the event upon which payment of the annuity
19 depends. Until August 1, 1999, and payment shall be made
20 for any part of a monthly period in which death of the
21 annuitant occurs. Beginning August 1, 1999, all payments
22 shall be made on the first day of the calendar month and
23 shall be for the entire calendar month, without proration.
24 The last payment shall be made on the first day of the
25 calendar month in which the annuity payment period ends. A
26 pro rata amount shall be paid for that part of the month from
27 the July 1999 annuity payment date through July 31, 1999.
28 For annuities taking effect on or after January 1, 1998,
29 payments shall be made as of the first day of the calendar
30 month, with the first payment to be made as of the first day
31 of the calendar month coincidental with or next following the
32 first day of the annuity payment period, and the last payment
33 to be made as of the first day of the calendar month in which
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1 the annuity payment period ends. For annuities taking effect
2 on or after January 1, 1998, all payments shall be for the
3 entire calendar month, without proration.
4 For the purposes of this Section, the "annuity payment
5 period" means the period beginning on the day after the
6 occurrence of the event upon which payment of the annuity
7 depends, and ending on the day upon which the death of the
8 annuitant or other event terminating the annuity occurs.
9 (Source: P.A. 90-31, eff. 6-27-97.)
10 (40 ILCS 5/11-134.2) (from Ch. 108 1/2, par. 11-134.2)
11 Sec. 11-134.2. Reversionary annuity.
12 (a) An employee, prior to retirement on annuity, may
13 elect to take a lesser amount of annuity and provide, with
14 the actuarial value of the amount by which his annuity is
15 reduced, a reversionary annuity for a wife, husband, parent,
16 child, brother or sister. The option shall be exercised by
17 filing a written designation with the board prior to
18 retirement, and may be revoked by the employee at any time
19 before retirement. The death of the employee prior to his
20 retirement shall automatically void the option.
21 (b) The death of the designated reversionary annuitant
22 prior to the employee's retirement shall automatically void
23 the option. If the reversionary annuitant dies after the
24 employee's retirement, and before the death of the employee
25 annuitant, the reduced annuity being paid to the retired
26 employee annuitant shall be increased to the amount of
27 annuity before reduction for the reversionary annuity and no
28 reversionary annuity shall be payable.
29 The option is subject to the further condition that no
30 reversionary annuity shall be paid to a parent, child,
31 brother, or sister if the employee dies before the expiration
32 of 365 days from the date his written designation was filed
33 with the board, even though he has retired and is receiving a
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1 reduced annuity.
2 (c) The employee exercising this option shall not reduce
3 his retirement annuity by more than $400 per month, or elect
4 to provide a reversionary annuity of less than $50 per month.
5 No option shall be permitted if the reversionary annuity for
6 a widow, when added to the widow's annuity payable under this
7 Article, exceeds 100% of the reduced annuity payable to the
8 employee.
9 (d) A reversionary annuity shall begin on the day
10 following the death of the annuitant and shall be paid as
11 provided in Section 11-124.
12 (e) The increases in annuity provided in Section
13 11-134.1 of this Article shall, as to an employee so electing
14 a reduced annuity, relate to the amount of the original
15 annuity, and such amount shall constitute the annuity on
16 which such increases shall be based.
17 (f) For annuities elected after June 30, 1983, the
18 amount of the monthly reversionary annuity shall be
19 determined by multiplying the amount of the monthly reduction
20 in the employee's annuity by the factor in the following
21 table based on the age of the employee and the difference in
22 the age of the employee and the age of the reversionary
23 annuitant at the starting date of the employee's annuity:
24 Employee's Age
25 Reversionary
26 Annuitant's
27 Age 50-51 52-54 55-57 58-60 61-63 64-66 67-69 70 &
28 Over
29 30 or
30 more
31 years
32 younger 3.03 2.56 2.18 1.84 1.55 1.29 1.08 0.91
33 25-29
34 years
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1 younger 3.16 2.68 2.29 1.94 1.63 1.37 1.15 0.97
2 20-24
3 years
4 younger 3.35 2.85 2.44 2.07 1.75 1.48 1.25 1.06
5 15-19
6 years
7 younger 3.60 3.08 2.65 2.26 1.92 1.63 1.39 1.19
8 10-14
9 years
10 younger 3.96 3.40 2.94 2.53 2.16 1.85 1.59 1.37
11 5-9
12 years
13 younger 4.46 3.84 3.35 2.90 2.51 2.16 1.88 1.64
14 0-4
15 years
16 younger 5.15 4.47 3.93 3.44 3.00 2.61 2.29 2.02
17 1-5
18 years
19 older 6.12 5.36 4.76 4.21 3.71 3.26 2.88 2.56
20 6-10
21 years
22 older 7.48 6.61 5.93 5.30 4.71 4.16 3.70 3.29
23 11-15
24 years
25 older 9.37 8.35 7.58 6.83 6.11 5.40 4.82 4.32
26 16-20
27 years
28 older 11.99 10.78 9.84 8.93 8.02 7.13 6.43 5.87
29 21-25
30 years
31 older 15.59 14.06 12.91 11.82 10.73 9.66 8.88 8.35
32 26-30
33 years
34 older 20.42 18.49 17.15 15.96 14.80 13.65 12.97 12.82
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1 31 or
2 more
3 years
4 older 27.07 24.72 23.34 22.32 21.45 20.62 20.85 23.28
5 (Source: P.A. 90-31, eff. 6-27-97; 90-766, eff. 8-14-98.)
6 (40 ILCS 5/11-148) (from Ch. 108 1/2, par. 11-148)
7 Sec. 11-148. Widow's remarriage to terminate annuity. A
8 widow's annuity shall terminate when she remarries if the
9 marriage takes place before the date 60 days after the
10 effective date of this amendatory Act of the 91st General
11 Assembly. If a widow remarries 60 or more days after the
12 effective date of this amendatory Act of the 91st General
13 Assembly, the widow's annuity shall continue without
14 interruption.
15 When a widow dies, if she has not received, in the form
16 of an annuity, an amount equal to the total sum accumulated
17 to his credit from employee's contributions and applied for
18 the widow's annuity, the difference between such accumulated
19 annuity credits and the amount received by her in annuity
20 payments shall be refunded to her, provided, that if a
21 reversionary annuity is payable if to her, or to any other
22 person designated by the employee, such aforesaid amount
23 shall not be refunded but the reversionary annuity shall be
24 payable. If there is any child of the employee who is under
25 18 years of age, the part of any such amount that is required
26 to pay an annuity to the child shall be transferred to the
27 child's annuity reserve. In making refunds under this
28 Section, no interest shall be paid upon either the total of
29 annuity payments made or the amounts subject to refund. Any
30 refund shall be paid according to the provisions of Section
31 11-166.
32 A subsequent change in marital status of the widow shall
33 not affect any restoration of any rights under this Article
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1 except in the case of declaration of invalidity of a
2 subsequent marriage wherein the declaration of invalidity is
3 based upon charges of bigamy by the subsequent husband or the
4 legal disability of the subsequent husband to enter into a
5 marriage.
6 (Source: P.A. 83-706.)
7 (40 ILCS 5/11-167) (from Ch. 108 1/2, par. 11-167)
8 Sec. 11-167. Refunds in lieu of annuity. In lieu of an
9 annuity, an employee who withdraws, and whose annuity would
10 amount to less than $800 $300 a month for life may elect to
11 receive a refund of the total sum accumulated to his credit
12 from employee contributions for annuity purposes.
13 The widow of any employee, eligible for annuity upon the
14 death of her husband, whose annuity would amount to less than
15 $800 $300 a month for life, may, in lieu of a widow's
16 annuity, elect to receive a refund of the accumulated
17 contributions for annuity purposes, based on the amounts
18 contributed by her deceased employee husband, but reduced by
19 any amounts theretofore paid to him in the form of an annuity
20 or refund out of such accumulated contributions.
21 Accumulated contributions shall mean the amounts
22 including interest credited thereon contributed by the
23 employee for age and service and widow's annuity to the date
24 of his withdrawal or death, whichever first occurs, and
25 including the accumulations from any amounts contributed for
26 him as salary deductions while receiving duty disability
27 benefits; provided that such amounts contributed by the city
28 after December 31, 1983 while the employee is receiving duty
29 disability benefits.
30 The acceptance of such refund in lieu of widow's annuity,
31 on the part of a widow, shall not deprive a child or children
32 of the right to receive a child's annuity as provided for in
33 Sections 11-153 and 11-154 of this Article, and neither shall
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1 the payment of a child's annuity in the case of such refund
2 to a widow reduce the amount herein set forth as refundable
3 to such widow electing a refund in lieu of widow's annuity.
4 (Source: P.A. 90-655, eff. 7-30-98.)
5 (40 ILCS 5/11-181) (from Ch. 108 1/2, par. 11-181)
6 Sec. 11-181. Board created. A board of 8 members shall
7 constitute the board of trustees authorized to carry out the
8 provisions of this Article. The board shall be known as the
9 Retirement Board of the Laborers' and Retirement Board
10 Employees' Annuity and Benefit Fund of the city. The board
11 shall consist of 5 persons appointed and 2 employees and one
12 annuitant elected in the manner hereinafter prescribed.
13 The appointed members of the board shall be appointed as
14 follows:
15 One member shall be appointed by the comptroller of the
16 city, who may be himself or anyone chosen from among
17 employees of the city who are versed in the affairs of the
18 comptroller's office; one member shall be appointed by the
19 City Treasurer of the city, who may be himself or a person
20 chosen from among employees of the city who are versed in the
21 affairs of the City Treasurer's office; one member shall be
22 an employee of the city appointed by the president of the
23 local labor organization representing a majority of the
24 employees participating in the Fund; and 2 members shall be
25 appointed by the civil service commission or the Department
26 of Personnel of the city from among employees of the city who
27 are versed in the affairs of the civil service commission's
28 office or the Department of Personnel.
29 The member appointed by the comptroller shall hold office
30 for a term ending on December 1st of the first year following
31 the year of appointment. The member appointed by the City
32 Treasurer shall hold office for a term ending on December 1st
33 of the second year following the year of appointment. The
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1 member appointed by the civil service commission shall hold
2 office for a term ending on the first day in the month of
3 December of the third year following the year of appointment.
4 The additional member appointed by the civil service
5 commission under this amendatory Act of 1998 shall hold
6 office for an initial term ending on December 1, 2000, and
7 the member appointed by the labor organization president
8 shall hold office for an initial term ending on December 1,
9 2001. Thereafter each appointive member shall be appointed
10 by the officer or body that appointed his predecessor, for a
11 term of 3 years.
12 The 2 employee members of the board shall be elected as
13 follows:
14 Within 30 days from and after the appointive members have
15 been appointed and have qualified, the appointive members
16 shall arrange for and hold an election.
17 One employee shall be elected for a term ending on
18 December 1st of the first year next following the effective
19 date; one for a term ending on December 1st of the following
20 year.
21 The initial annuitant member shall be appointed by the
22 other members of the board for an initial term ending on
23 December 1, 1999. Thereafter, The annuitant member elected
24 in 1999 shall be deemed to have been elected for a 3-year
25 2-year term ending on December 1, 2002. Thereafter, the
26 annuitant member shall be elected for a 3-year term ending on
27 December 1st of the third year following the election 1st of
28 the next odd-numbered year.
29 (Source: P.A. 90-766, eff. 8-14-98.)
30 (40 ILCS 5/11-182) (from Ch. 108 1/2, par. 11-182)
31 Sec. 11-182. Board elections; qualification; oath.
32 (a) In each year, the board shall conduct a regular
33 election, under rules adopted by it, at least 30 days prior
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1 to the expiration of the term of the employee member whose
2 term next expires, for the election of a successor for a term
3 of 3 2 years. Each employee member and his or her successor
4 shall be an employee who holds a position by certification
5 and appointment as a result of competitive civil service
6 examination as distinguished from temporary appointment, or
7 so holds a position which is not exempt from the classified
8 service or the personnel ordinance of a city that has adopted
9 a career service ordinance, for a period of not less than 5
10 years prior to date of election. At any such election, all
11 persons who are employees at the time such election is held
12 shall have a right to vote. The ballot shall be of secret
13 character.
14 (b) In each odd-numbered year, The board shall conduct a
15 regular election, under rules adopted by it, at least 30 days
16 prior to the expiration of the term of the annuitant member,
17 for the election of a successor for a term of 3 2 years.
18 Each annuitant member and his or her successor shall be a
19 former employee receiving a retirement (age and service or
20 prior service) annuity from the Fund. At any such election,
21 all persons who are receiving a retirement (age and service
22 or prior service) annuity from the Fund at the time the
23 election is held have a right to vote. The ballot shall be
24 of secret character.
25 (c) Any appointive or elective member of the board shall
26 hold office until his or her successor is elected and
27 qualified.
28 Any person elected or appointed as a member of the board
29 shall qualify for the office by taking an oath of office to
30 be administered by the city clerk or any person designated by
31 the city clerk. A copy thereof shall be kept in the office
32 of the city clerk.
33 Any appointment shall be in writing and the written
34 instrument shall be filed with the oath.
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1 (Source: P.A. 90-766, eff. 8-14-98.)
2 (40 ILCS 5/11-223) (from Ch. 108 1/2, par. 11-223)
3 Sec. 11-223. Annuities, etc., exempt.
4 (a) All annuities, refunds, pensions, and disability
5 benefits granted under this Article shall be exempt from
6 attachment or garnishment process and shall not be seized,
7 taken, subjected to, detained, or levied upon by virtue of
8 any judgment, or any process or proceeding whatsoever issued
9 out of or by any court in this State, for the payment and
10 satisfaction in whole or in part of any debt, damage, claim,
11 demand, or judgment against any annuitant, participant,
12 refund applicant, or other beneficiary hereunder.
13 No annuitant, refund applicant, or other beneficiary may
14 transfer or assign his annuity, refund, or disability benefit
15 or any part thereof by way of mortgage or otherwise, except
16 as provided in Section 11-223.1, and except in the case of
17 refunds, when a participant has pledged by assignment, power
18 of attorney, or otherwise, as security for a loan from a
19 legally operating credit union making loans only to
20 participants in certain public employee pension funds
21 described in the Illinois Pension Code, all or part of any
22 refund which may become payable to him in the event of his
23 separation from service. The board in its discretion may,
24 however, pay to the wife or to the unmarried child under 18
25 years of age of any annuitant, refund applicant, or
26 disability beneficiary, such an amount out of her husband's
27 annuity refund, or disability benefit as any court may order,
28 or such an amount as the board may consider necessary for the
29 support of his wife or children or both in the event of his
30 disappearance or unexplained absence or of his failure to
31 support such wife or children.
32 (b) The board may retain out of any future annuity,
33 refund, or disability benefit payments, such amount, or
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1 amounts as it may require for the repayment of any moneys
2 paid to any annuitant, pensioner, refund applicant, or
3 disability beneficiary through misrepresentation, fraud or
4 error. Any such action of the board shall relieve and
5 release the board and the fund from any liability for any
6 moneys so withheld.
7 (c) Whenever an annuity or disability benefit is payable
8 to a minor or to a person certified by a medical doctor
9 adjudged to be under legal disability, the board, in its
10 discretion and when it is in to the best interest of the
11 person concerned, may waive guardianship or conservatorship
12 proceedings and pay the annuity or benefit to the person
13 providing or caring for the minor or and to the wife, parent
14 or blood relative providing or caring for the person under
15 legal disability.
16 In the event that a person certified by a medical doctor
17 to be under legal disability (i) has no spouse, blood
18 relative, or other person providing or caring for him or
19 her, (ii) has no guardian of his or her estate, and (iii) is
20 confined to a Medicare approved, State certified nursing home
21 or to a publicly owned and operated nursing home, hospital,
22 or mental institution, the Board may pay any benefit due that
23 person to the nursing home, hospital, or mental institution,
24 to be used for the sole benefit of the person under legal
25 disability.
26 Payment in accordance with this subsection to a person,
27 nursing home, hospital, or mental institution for the benefit
28 of a minor or person under legal disability shall be an
29 absolute discharge of the Fund's liability with respect to
30 the amount so paid. Any person, nursing home, hospital, or
31 mental institution accepting payment under this subsection
32 shall notify the Fund of the death or any other relevant
33 change in the status of the minor or person under legal
34 disability.
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1 (d) Whenever an annuitant, applicant for refund or
2 disability beneficiary disappears and his whereabouts are
3 unknown, and it cannot be ascertained that he is alive, there
4 shall be paid to his wife or children or both such amount as
5 will not be in excess of the amount payable to them in the
6 event such annuitant, applicant for refund or disability
7 beneficiary had died on the date of disappearance. If he
8 returns, or upon satisfactory proof of his being alive, the
9 amount theretofore paid to such beneficiaries shall be
10 charged against any moneys payable to him under this Article
11 as though such payment to such beneficiaries had been an
12 allowance to them out of the moneys payable to the employee
13 as an annuitant, applicant for refund or disability
14 beneficiary.
15 (Source: P.A. 83-706.)
16 (40 ILCS 5/13-303) (from Ch. 108 1/2, par. 13-303)
17 Sec. 13-303. Reversionary annuity.
18 (a) An employee, prior to retirement on annuity, may
19 elect a lesser amount of annuity and provide, with the
20 actuarial value of the amount by which his annuity is
21 reduced, a reversionary annuity for a wife, husband, parents,
22 children, brothers or sisters. The election may be exercised
23 by filing a written designation with the Board prior to
24 retirement, and may be revoked by the employee at any time
25 before retirement. The death of the employee prior to
26 retirement shall automatically void the election.
27 (b) The death of the designated reversionary annuitant
28 prior to the employee's retirement shall automatically void
29 the election, but, if death of the designated reversionary
30 annuitant occurs after retirement, the reduced annuity being
31 paid to the retired employee annuitant shall remain unchanged
32 and no reversionary annuity shall be payable.
33 No reversionary annuity shall be paid if the employee
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1 dies before the expiration of 730 days from the date the
2 written designation was filed with the board, even though the
3 employee retired and was receiving a reduced annuity.
4 (c) An employee exercising this option shall not reduce
5 the annuity by more than 25%, nor elect to provide a
6 reversionary annuity of less than $100 per month. No such
7 option shall be permitted if the reversionary annuity for a
8 surviving spouse, when added to the surviving spouse's
9 annuity payable under this Article, exceeds 85% of the
10 reduced annuity payable to the employee.
11 (d) A reversionary annuity shall begin on the day
12 following the death of the annuitant, with the first payment
13 due and payable one month later, and shall continue monthly
14 thereafter until the death of the reversionary annuitant.
15 (e) The increases in annuity provided in Section
16 13-302(d) shall, as to an employee so electing a reduced
17 annuity, relate to the amount of reduced annuity, and such
18 lesser amount shall constitute the annuity on which such
19 increases shall be based.
20 (f) For determining the actuarial value under this
21 option of the employee's annuity and the reversionary
22 annuity, the Fund shall use an actuarial table recommended by
23 the Fund's actuarial consultant and approved by the Board of
24 Trustees the following actuarial table shall be used: "1951
25 Group Annuity Male Table of Mortality," set back 5 years for
26 employees, with 3% interest.
27 (Source: P.A. 87-794.)
28 (40 ILCS 5/13-309) (from Ch. 108 1/2, par. 13-309)
29 Sec. 13-309. Duty disability benefit.
30 (a) Any employee who becomes disabled, which disability
31 is the result of an injury or illness compensable under the
32 Illinois Workers' Compensation Act or the Illinois Workers'
33 Occupational Diseases Act, is entitled to a duty disability
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1 benefit during the period of disability for which the
2 employee does not receive any part of salary, or any part of
3 a retirement annuity under this Article; except that in the
4 case of an employee who first enters service on or after the
5 effective date of this amendatory Act of 1997, a duty
6 disability benefit is not payable for the first 3 days of
7 disability that would otherwise be payable under this Section
8 if the disability does not continue for at least 11
9 additional days. This benefit shall be 75% of salary at the
10 date disability begins. However, if the disability in any
11 measure resulted from any physical defect or disease which
12 existed at the time such injury was sustained or such illness
13 commenced, the duty disability benefit shall be 50% of
14 salary.
15 Unless the employer acknowledges that the disability is a
16 result of injury or illness compensable under the Workers'
17 Compensation Act or the Workers' Occupational Diseases Act,
18 the duty disability benefit shall not be payable until the
19 issue of compensability under those Acts is finally
20 adjudicated. The period of disability shall be as determined
21 by the Illinois Industrial Commission or acknowledged by the
22 employer.
23 The first payment shall be made not later than one month
24 after the benefit is granted, and subsequent payments shall
25 be made at least monthly. The Board shall by rule prescribe
26 for the payment of such benefits on the basis of the amount
27 of salary lost during the period of disability.
28 (b) The benefit shall be allowed only if the following
29 requirements are met by the employee:
30 (1) Application is made to the Board within 90 days
31 from the date disability begins;
32 (2) A medical report is submitted by at least one
33 licensed and practicing physician as part of the
34 employee's application; and
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1 (3) The employee is examined by at least one
2 licensed and practicing physician appointed by the Board
3 and found to be in a disabled physical condition, and
4 shall be re-examined at least annually thereafter during
5 the continuance of disability. The employee need not be
6 re-examined by a licensed and practicing physician if the
7 attorney for the district certifies in writing that the
8 employee is entitled to receive compensation under the
9 Workers' Compensation Act or the Workers' Occupational
10 Diseases Act.
11 (c) The benefit shall terminate when:
12 (1) The employee returns to work or receives a
13 retirement annuity paid wholly or in part under this
14 Article;
15 (2) The disability ceases;
16 (3) The employee attains age 65, but if the
17 employee becomes disabled at age 60 or later, benefits
18 may be extended for a period of no more than 5 years
19 after disablement;
20 (4) The employee (i) refuses to submit to
21 reasonable examinations by physicians or other health
22 professionals appointed by the Board, (ii) fails or
23 refuses to consent to and sign an authorization allowing
24 the Board to receive copies of or to examine the
25 employee's medical and hospital records, or (iii) fails
26 or refuses to provide complete information regarding any
27 other employment for compensation he or she has received
28 since becoming disabled; or
29 (5) The employee willfully and continuously refuses
30 to follow accept medical advice and treatment to enable
31 the employee to return to work. However this provision
32 does not apply to an employee who relies in good faith on
33 treatment by prayer through spiritual means alone in
34 accordance with the tenets and practice of a recognized
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1 church or religious denomination, by a duly accredited
2 practitioner thereof.
3 In the case of a duty disability recipient who returns to
4 work, the employee must make application to the Retirement
5 Board within 2 years from the date the employee last received
6 duty disability benefits in order to become again entitled to
7 duty disability benefits based on the injury for which a duty
8 disability benefit was theretofore paid.
9 (Source: P.A. 90-12, eff. 6-13-97.)
10 (40 ILCS 5/13-310) (from Ch. 108 1/2, par. 13-310)
11 Sec. 13-310. Ordinary disability benefit.
12 (a) Any employee who becomes disabled as the result of
13 any cause other than injury or illness incurred in the
14 performance of duty for the employer or any other employer,
15 or while engaged in self-employment activities, shall be
16 entitled to an ordinary disability benefit. The eligible
17 period for this benefit shall be 25% of the employee's total
18 actual service prior to the date of disability with a
19 cumulative maximum period of 5 years.
20 (b) The benefit shall be allowed only if the employee
21 files an application in writing with the Board, and a medical
22 report is submitted by at least one licensed and practicing
23 physician as part of the employee's application.
24 The benefit is not payable for any disability which
25 begins during any period of unpaid leave of absence. No
26 benefit shall be allowed for any period of disability prior
27 to 30 days before application is made, unless the Board finds
28 good cause for the delay in filing the application. The
29 benefit shall not be paid during any period for which the
30 employee receives or is entitled to receive any part of
31 salary.
32 The benefit is not payable for any disability which
33 begins during any period of absence from duty other than
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1 allowable vacation time in any calendar year. An employee
2 whose disability begins during any such ineligible period of
3 absence from service may not receive benefits until the
4 employee recovers from the disability and is in service for
5 at least 15 consecutive working days after such recovery.
6 In the case of an employee who first enters service on or
7 after the effective date of this amendatory Act of 1997, an
8 ordinary disability benefit is not payable for the first 3
9 days of disability that would otherwise be payable under this
10 Section if the disability does not continue for at least 11
11 additional days.
12 (c) The benefit shall be 50% of the employee's salary at
13 the date of disability, and shall terminate when the earliest
14 of the following occurs:
15 (1) The employee returns to work or receives a
16 retirement annuity paid wholly or in part under this
17 Article;
18 (2) The disability ceases;
19 (3) The employee willfully and continuously refuses
20 to follow medical advice and treatment to enable the
21 employee to return to work. However this provision does
22 not apply to an employee who relies in good faith on
23 treatment by prayer through spiritual means alone in
24 accordance with the tenets and practice of a recognized
25 church or religious denomination, by a duly accredited
26 practitioner thereof (Blank);
27 (4) The employee (i) refuses to submit to a
28 reasonable physical examination within 30 days of
29 application by a physician appointed by the Board, (ii)
30 or in the case of chronic alcoholism, the employee
31 refuses to join a rehabilitation program licensed by the
32 Department of Public Health of the State of Illinois, and
33 certified by the Joint Commission on the Accreditation of
34 Hospitals, (iii) fails or refuses to consent to and sign
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1 an authorization allowing the Board to receive copies of
2 or to examine the employee's medical and hospital
3 records, or (iv) fails or refuses to provide complete
4 information regarding any other employment for
5 compensation he or she has received since becoming
6 disabled; or
7 (5) The eligible period for this benefit has been
8 exhausted.
9 The first payment of the benefit shall be made not later
10 than one month after the same has been granted, and
11 subsequent payments shall be made at intervals of not more
12 than 30 days.
13 (Source: P.A. 90-12, eff. 6-13-97.)
14 (40 ILCS 5/13-311) (from Ch. 108 1/2, par. 13-311)
15 Sec. 13-311. Credit for Workers' Compensation payments.
16 If an employee, or an employee's spouse or children, receives
17 compensation under any workers' compensation or occupational
18 diseases law, the surviving spouse's or child's annuity or
19 the disability benefit payable under this Article shall be
20 reduced by the amount of the compensation so received if the
21 amount is less than the annuity or benefit. If the
22 compensation exceeds the annuity or benefit, no payment of
23 annuity or benefit shall be made until the period of time has
24 elapsed when the annuity or benefit payable at the rates
25 provided in this Article equals the amount of such
26 compensation. However, the commutation of compensation to a
27 lump sum basis as provided in the workers' compensation or
28 occupational diseases law shall not increase the annuity or
29 benefit provided under this Article; the annuity or benefit
30 to be paid hereunder shall be based on the amount of
31 compensation awarded under such laws prior to commutation of
32 such compensation. No interest shall be considered in these
33 calculations.
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1 (Source: P.A. 87-794.)
2 (40 ILCS 5/13-314) (from Ch. 108 1/2, par. 13-314)
3 Sec. 13-314. Alternative provisions for Water
4 Reclamation District commissioners.
5 (a) Transfer of credits. Any Water Reclamation District
6 commissioner elected by vote of the people and who has
7 elected to participate in this Fund may transfer to this Fund
8 credits and creditable service accumulated under any other
9 pension fund or retirement system established under Articles
10 2 through 18 of this Code, upon payment to the Fund of (1)
11 the amount by which the employer and employee contributions
12 that would have been required if he had participated in this
13 Fund during the period for which credit is being transferred,
14 plus interest, exceeds the amounts actually transferred from
15 such other fund or system to this Fund, plus (2) interest
16 thereon at 6% per year compounded annually from the date of
17 transfer to the date of payment.
18 (b) Alternative annuity. Any participant commissioner
19 may elect to establish alternative credits for an alternative
20 annuity by electing in writing to make additional optional
21 contributions in accordance with this Section and procedures
22 established by the Board. Such commissioner may discontinue
23 making the additional optional contributions by notifying the
24 fund in writing in accordance with this Section and
25 procedures established by the Board.
26 Additional optional contributions for the alternative
27 annuity shall be as follows:
28 (1) For service after the option is elected, an
29 additional contribution of 3% of salary shall be
30 contributed to the Fund on the same basis and under the
31 same conditions as contributions required under Section
32 13-502.
33 (2) For contributions on past service before the
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1 option is elected, the additional contribution shall be
2 3% of the salary for the applicable period of service,
3 plus interest at the annual rate from time to time as
4 determined by the Board, compounded annually from the
5 date of service to the date of payment. Contributions
6 for service before the option is elected may be made in a
7 lump sum payment to the Fund or by contributing to the
8 Fund on the same basis and under the same conditions as
9 contributions required under Section 13-502. All
10 payments for past service must be paid in full before
11 credit is given. No additional optional contributions
12 may be made for any period of service for which credit
13 has been previously forfeited by acceptance of a refund,
14 unless the refund is repaid in full with interest at the
15 rate specified in Section 13-603, from the date of refund
16 to the date of repayment.
17 In lieu of the retirement annuity otherwise payable under
18 this Article, any commissioner who has elected to participate
19 in the Fund and make additional optional contributions in
20 accordance with this Section, has attained age 55, and has at
21 least 6 years of service credit, may elect to have the
22 retirement annuity computed as follows: 3% of the
23 participant's average final salary as a commissioner for each
24 of the first 8 years of service credit, plus 4% of such
25 salary for each of the next 4 years of service credit, plus
26 5% of such salary for each year of service credit in excess
27 of 12 years, subject to a maximum of 80% of such salary. To
28 the extent such commissioner has made additional optional
29 contributions with respect to only a portion of years of
30 service credit, the retirement annuity will first be
31 determined in accordance with this Section to the extent such
32 additional optional contributions were made, and then in
33 accordance with the remaining Sections of this Article to the
34 extent of years of service credit with respect to which
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1 additional optional contributions were not made. The change
2 in minimum retirement age (from 60 to 55) made by this
3 amendatory Act of 1993 applies to persons who begin receiving
4 a retirement annuity under this Section on or after the
5 effective date of this amendatory Act, without regard to
6 whether they are in service on or after that date.
7 (c) Disability benefits. In lieu of the disability
8 benefits otherwise payable under this Article, any
9 commissioner who (1) has elected to participate in the Fund,
10 and (2) has become permanently disabled and as a consequence
11 is unable to perform the duties of office, and (3) was making
12 optional contributions in accordance with this Section at the
13 time the disability was incurred, may elect to receive a
14 disability annuity calculated in accordance with the formula
15 in subsection (b). For the purposes of this subsection, such
16 commissioner shall be considered permanently disabled only
17 if: (i) disability occurs while in service as a commissioner
18 and is of such a nature as to prevent the reasonable
19 performance of the duties of office at the time; and (ii) the
20 Board has received a written certification by at least 2
21 licensed physicians appointed by it stating that such
22 commissioner is disabled and that the disability is likely to
23 be permanent.
24 (d) Alternative survivor's benefits. In lieu of the
25 survivor's benefits otherwise payable under this Article, the
26 spouse or eligible child of any deceased commissioner who (1)
27 had elected to participate in the Fund, and (2) was either
28 making additional optional contributions on the date of
29 death, or was receiving an annuity calculated under this
30 Section at the time of death, may elect to receive an annuity
31 beginning on the date of the commissioner's death, provided
32 that the spouse and commissioner must have been married on
33 the date of the last termination of a service as commissioner
34 and for a continuous period of at least one year immediately
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1 preceding death.
2 The annuity shall be payable beginning on the date of the
3 commissioner's death if the spouse is then age 50 or over, or
4 beginning at age 50 if the age of the spouse is less than 50
5 years. If a minor unmarried child or children of the
6 commissioner, under age 18, also survive, and the child or
7 children are under the care of the eligible spouse, the
8 annuity shall begin as of the date of death of the
9 commissioner without regard to the spouse's age.
10 The annuity to a spouse shall be 66 2/3% of the amount of
11 retirement annuity earned by the commissioner on the date of
12 death, subject to a minimum payment of 10% of salary,
13 provided that if an eligible spouse, regardless of age, has
14 in his or her care at the date of death of the commissioner
15 any unmarried child or children of the commissioner under age
16 18, the minimum annuity shall be 30% of the commissioner's
17 salary, plus 10% of salary on account of each minor child of
18 the commissioner, subject to a combined total payment on
19 account of a spouse and minor children not to exceed 50% of
20 the deceased commissioner's salary. In the event there shall
21 be no spouse of the commissioner surviving, or should a
22 spouse die while eligible minor children still survive the
23 commissioner, each such child shall be entitled to an annuity
24 equal to 20% of salary of the commissioner subject to a
25 combined total payment on account of all such children not to
26 exceed 50% of salary of the commissioner. The salary to be
27 used in the calculation of these benefits shall be the same
28 as that prescribed for determining a retirement annuity as
29 provided in subsection (b) of this Section.
30 Upon the death of a commissioner occurring after
31 termination of a service or while in receipt of a retirement
32 annuity, the combined total payment to a spouse and minor
33 children, or to minor children alone if no eligible spouse
34 survives, shall be limited to 75% of the amount of retirement
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1 annuity earned by the commissioner.
2 Adopted children shall have status as natural children of
3 the commissioner only if the proceedings for adoption were
4 commenced at least one year prior to the date of the
5 commissioner's death.
6 Marriage of a child or attainment of age 18, whichever
7 first occurs, shall render the child ineligible for further
8 consideration in the payment of annuity to a spouse or in the
9 increase in the amount thereof. Upon attainment of
10 ineligibility of the youngest minor child of the
11 commissioner, the annuity shall immediately revert to the
12 amount payable upon death of a commissioner leaving no minor
13 children surviving. If the spouse is under age 50 at such
14 time, the annuity as revised shall be deferred until such age
15 is attained.
16 (e) Refunds. Refunds of additional optional
17 contributions shall be made on the same basis and under the
18 same conditions as provided under Section 13-601. Interest
19 shall be credited on the same basis and under the same
20 conditions as for other contributions.
21 Optional contributions shall be accounted for in a
22 separate Commission's Optional Contribution Reserve.
23 Optional contributions under this Section shall be included
24 in the amount of employee contributions used to compute the
25 tax levy under Section 13-503.
26 (f) Effective date. The effective date of this plan of
27 optional alternative benefits and contributions shall be the
28 date upon which approval was received from the U.S. Internal
29 Revenue Service. The plan of optional alternative benefits
30 and contributions shall not be available to any former
31 employee receiving an annuity from the Fund on the effective
32 date, unless said former employee re-enters service and
33 renders at least 3 years of additional service after the date
34 of re-entry as a commissioner.
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1 (Source: P.A. 90-12, eff. 6-13-97.)
2 (40 ILCS 5/13-603) (from Ch. 108 1/2, par. 13-603)
3 Sec. 13-603. Restoration of rights. If an employee who
4 has received a refund subsequently re-enters the service and
5 renders one year of contributing service from the date of
6 such re-entry, the employee shall be entitled to have
7 restored all accumulation and service credits previously
8 forfeited by making a repayment of the refund, including
9 interest of 8% per annum from the date of the refund to the
10 date of repayment at a rate equal to the higher of 8% per
11 annum or the actuarial investment return assumption used in
12 the Fund's most recent Annual Actuarial Statement. Repayment
13 may be made either directly to the Fund or in a manner
14 similar to that provided for the contributions required under
15 Section 13-502. The repayment must be made in a lump sum.
16 The service credits represented thereby, or any part thereof,
17 shall not become effective unless the full amount due has
18 been paid by the employee, including interest. If the
19 employee fails to make a full repayment, any partial amounts
20 paid by the employee shall be refunded without interest if
21 the employee dies in service or withdraws.
22 (Source: P.A. 87-794.)
23 (40 ILCS 5/14-118) (from Ch. 108 1/2, par. 14-118)
24 Sec. 14-118. Widow's annuity - Conditions for payment.
25 A widow who exercises the right of election to receive an
26 annuity pursuant to this Section is entitled to a lump sum
27 payment of $500 plus a widow's annuity, if:
28 (1) she was married to the deceased member:
29 (i) in the case of a member who dies before
30 the effective date of this amendatory Act of the
31 91st General Assembly, for at least one 1 year prior
32 to his death or retirement, whichever first occurs,
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1 and also on the day of the last termination of his
2 service as a State employee; or
3 (ii) in the case of a member who dies on or
4 after the effective date of this amendatory Act of
5 the 91st General Assembly, for at least one year
6 immediately prior to the date of death, regardless
7 of the date of withdrawal;
8 (2) the deceased member had at least 8 years of
9 creditable service if death occurred while in service, or
10 while on leave of absence from service, or while in
11 receipt of a nonoccupational disability or occupational
12 disability benefit, or after retirement;
13 (3) she was nominated exclusively to receive the
14 entire death benefit payable under this Article;
15 (4) death of the member occurred after withdrawal,
16 and he had fulfilled the prescribed age and service
17 conditions for establishing a right in a retirement
18 annuity; and
19 (5) she elected to receive the widow's annuity
20 within 6 months from the date of death of the employee,
21 otherwise the survivors annuity if applicable, shall be
22 payable.
23 If a widow's annuity beneficiary becomes entitled to a
24 survivors annuity and a widow's annuity, she shall elect to
25 receive only one of such annuities.
26 The surviving spouse of a person who (1) died on or after
27 January 1, 1985, (2) withdrew from service prior to August 1,
28 1953, (3) was receiving an annuity from the system at the
29 time of death, and (4) meets all other requirements of this
30 Section, shall be entitled to the benefits provided under
31 this Section.
32 A widow's annuity shall be payable beginning on the first
33 of the month following the date of death of the member if the
34 widow has then attained age 50 or, if she is under age 50 on
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1 such date, on the first of the month following her attainment
2 of such age; provided, that if an unmarried child or children
3 of the member under age 18 (or under age 22 if a full-time
4 student) also survive him, and the child or children are
5 under the care of the eligible widow, the widow's annuity
6 shall begin on the first of the month following the member's
7 death without regard to the age of the widow. If she is
8 under age 50 at the death of the member and she qualifies for
9 a widow's annuity, she is entitled to receive the lump sum
10 payment immediately upon application, but payment of the
11 widow's annuity shall be deferred as provided above.
12 The provision for a widow's annuity shall not be
13 construed to affect the payment of a reversionary annuity.
14 If a widow qualifies for more than one widow's annuity, or
15 for a widow's annuity and a survivors annuity, she shall
16 elect to receive only one of such annuities.
17 This Section shall not apply to the widow of any male
18 person who first became a member after July 19, 1961.
19 (Source: P.A. 90-448, eff. 8-16-97.)
20 (40 ILCS 5/14-120) (from Ch. 108 1/2, par. 14-120)
21 Sec. 14-120. Survivors annuities - Conditions for
22 payments. A survivors annuity is established for all members
23 of the System. Upon the death of any male person who was a
24 member on July 19, 1961, however, his widow may have the
25 option of receiving the widow's annuity provided in this
26 Article, in lieu of the survivors annuity.
27 (a) A survivors annuity beneficiary, as herein defined,
28 is eligible for a survivors annuity if the deceased member
29 had completed at least 1 1/2 years of contributing creditable
30 service if death occurred:
31 (1) while in service;
32 (2) while on an approved or authorized leave of
33 absence from service, not exceeding one year
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1 continuously; or
2 (3) while in receipt of a non-occupational
3 disability or an occupational disability benefit.
4 (b) If death of the member occurs after withdrawal, the
5 survivors annuity beneficiary is eligible for such annuity
6 only if the member had fulfilled at the date of withdrawal
7 the prescribed service conditions for establishing a right in
8 a retirement annuity.
9 (c) Payment of the survivors annuity shall begin
10 immediately if the beneficiary is 50 years or over, or upon
11 attainment of age 50 if the beneficiary is under that age at
12 the date of the member's death. In the case of survivors of a
13 member whose death occurred between November 1, 1970 and July
14 15, 1971, the payment of the survivors annuity shall begin
15 upon October 1, 1977, if the beneficiary is then 50 years of
16 age or older, or upon the attainment of age 50 if the
17 beneficiary is under that age on October 1, 1977.
18 If an eligible child or children, under the care of the
19 spouse also survive the member, the survivors annuity shall
20 begin immediately without regard to whether the beneficiary
21 has attained age 50.
22 Benefits under this Section shall accrue and be payable
23 for whole calendar months, beginning on the first day of the
24 month after the initiating event occurs and ending on the
25 last day of the month in which the terminating event occurs.
26 (d) A survivor annuity beneficiary means:
27 (1) A spouse of a member or annuitant if:
28 (i) in the case of a member or annuitant who
29 dies before the effective date of this amendatory
30 Act of the 91st General Assembly, the current
31 marriage with the member or annuitant was in effect
32 for at least one year at the date of the member or
33 annuitant's death or withdrawal, whichever first
34 occurs; or
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1 (ii) in the case of a member or annuitant who
2 dies on or after the effective date of this
3 amendatory Act of the 91st General Assembly, the
4 current marriage with the member or annuitant was in
5 effect for at least one year immediately prior to
6 the date of death, regardless of the date of
7 withdrawal.
8 (2) An unmarried child under age 18 (under age 22
9 if a full-time student) of the member or annuitant; an
10 unmarried stepchild under age 18 (under age 22 if a
11 full-time student) who has been such for at least one
12 year at the date of the member's death or at least one
13 year at the date of withdrawal, whichever first occurs;
14 an unmarried adopted child under age 18 (under age 22 if
15 a full-time student) if the adoption proceedings were
16 initiated at least one year prior to the death or
17 withdrawal of the member or annuitant, whichever first
18 occurs; and an unmarried child over age 18 if he or she
19 is dependent by reason of a physical or mental
20 disability, so long as the physical or mental disability
21 continues. For purposes of this subsection, disability
22 means inability to engage in any substantial gainful
23 activity by reason of any medically determinable physical
24 or mental impairment which can be expected to result in
25 death or which has lasted or can be expected to last for
26 a continuous period of not less than 12 months.
27 (3) A dependent parent of the member or annuitant;
28 a dependent step-parent by a marriage contracted before
29 the member or annuitant attained age 18; or a dependent
30 adopting parent by whom the member or annuitant was
31 adopted before he or she attained age 18.
32 (e) Payment of a survivors annuity to a beneficiary
33 terminates upon: (1) remarriage before age 55 that occurs
34 before the effective date of this amendatory Act of the 91st
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1 General Assembly or death, if the beneficiary is a spouse;
2 (2) marriage or death, if the beneficiary is a child; or (3)
3 remarriage before age 55 or death, if the beneficiary is a
4 parent. Remarriage of a prospective beneficiary prior to the
5 attainment of age 50 disqualifies the beneficiary for the
6 annuity expectancy hereunder, if the remarriage occurs before
7 the effective date of this amendatory Act of the 91st General
8 Assembly. Termination due to a marriage or remarriage shall
9 be permanent, regardless of any future changes in marital
10 status.
11 The substantive changes made to this subsection by this
12 amendatory Act of the 91st General Assembly (pertaining to
13 remarriage prior to age 55 or 50) apply without regard to
14 whether the deceased participant or annuitant was in service
15 on or after the effective date of this amendatory Act.
16 Any person whose survivors annuity was terminated during
17 1978 or 1979 due to remarriage at age 55 or over shall be
18 eligible to apply, not later than July 1, 1990, for a
19 resumption of that annuity, to begin on July 1, 1990.
20 (f) The term "dependent" relating to a survivors annuity
21 means a beneficiary of a survivors annuity who was receiving
22 from the member at the date of the member's death at least
23 1/2 of the support for maintenance including board, lodging,
24 medical care and like living costs.
25 (g) If there is no eligible spouse surviving the member,
26 or if a survivors annuity beneficiary includes a spouse who
27 dies or is disqualified by remarriage remarries, the annuity
28 is payable to an unmarried child or children. If at the date
29 of death of the member there is no spouse or unmarried child,
30 payments shall be made to a dependent parent or parents. If
31 no eligible survivors annuity beneficiary survives the
32 member, the non-occupational death benefit is payable in the
33 manner provided in this Article.
34 (h) Survivor benefits do not affect any reversionary
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1 annuity.
2 (i) If a survivors annuity beneficiary becomes entitled
3 to a widow's annuity or one or more survivors annuities or
4 both such annuities, the beneficiary shall elect to receive
5 only one of such annuities.
6 (j) Contributing creditable service under the State
7 Universities Retirement System and the Teachers' Retirement
8 System of the State of Illinois shall be considered in
9 determining whether the member has met the contributing
10 service requirements of this Section.
11 (k) In lieu of the Survivor's Annuity described in this
12 Section, the spouse of the member has the option to select
13 the Nonoccupational Death Benefit described in this Article,
14 provided the spouse is the sole survivor and the sole
15 nominated beneficiary of the member.
16 (l) The changes made to this Section and Sections
17 14-118, 14-119, and 14-128 by this amendatory Act of 1997,
18 relating to benefits for certain unmarried children who are
19 full-time students under age 22, apply without regard to
20 whether the deceased member was in service on or after the
21 effective date of this amendatory Act of 1997. These changes
22 do not authorize the repayment of a refund or a re-election
23 of benefits, and any benefit or increase in benefits
24 resulting from these changes is not payable retroactively for
25 any period before the effective date of this amendatory Act
26 of 1997.
27 (Source: P.A. 90-448, eff. 8-16-97; 91-357, eff. 7-29-99.)
28 (40 ILCS 5/14-128) (from Ch. 108 1/2, par. 14-128)
29 Sec. 14-128. Occupational death benefit. An
30 occupational death benefit is provided for a member of the
31 System whose death, prior to retirement, is the proximate
32 result of bodily injuries sustained or a hazard undergone
33 while in the performance and within the scope of the member's
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1 duties.
2 (a) Conditions for payment.
3 Exclusive of the lump sum payment provided for herein,
4 all annuities under this Section shall accrue and be payable
5 for complete calendar months, beginning on the first day of
6 the month next following the month in which the initiating
7 event occurs and ending on the last day of the month in which
8 the terminating event occurs.
9 The following named survivors of the member may be
10 eligible for an annuity under this Section:
11 (i) The member's spouse.
12 (ii) An unmarried child of the member under age 18
13 (under age 22 if a full-time student); an unmarried
14 stepchild under age 18 (under age 22 if a full-time
15 student) who has been such for at least one year at the
16 date of the member's death; an unmarried adopted child
17 under age 18 (under age 22 if a full-time student) if the
18 adoption proceedings were initiated at least one year
19 prior to the death of the member; and an unmarried child
20 over age 18 who is dependent by reason of a physical or
21 mental disability, for so long as such physical or mental
22 disability continues. For the purposes of this Section
23 disability means inability to engage in any substantial
24 gainful activity by reason of any medically determinable
25 physical or mental impairment which can be expected to
26 result in death or which has lasted or can be expected to
27 last for a continuous period of not less than 12 months.
28 (iii) If no spouse or eligible children survive: a
29 dependent parent of the member; a dependent step-parent
30 by a marriage contracted before the member attained age
31 18; or a dependent adopting parent by whom the member was
32 adopted before he or she attained age 18.
33 The term "dependent" relating to an occupational death
34 benefit means a survivor of the member who was receiving from
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1 the member at the date of the member's death at least 1/2 of
2 the support for maintenance including board, lodging, medical
3 care and like living costs.
4 Payment of the annuity shall continue until the
5 occurrence of the following:
6 (1) remarriage before age 55 that occurs before the
7 effective date of this amendatory Act of the 91st General
8 Assembly or death, in the case of a surviving spouse;
9 (2) attainment of age 18 or termination of
10 disability, death, or marriage, in the case of an
11 eligible child;
12 (3) remarriage before age 55 or death, in the case
13 of a dependent parent.
14 If none of the aforementioned beneficiaries is living at
15 the date of death of the member, no occupational death
16 benefit shall be payable, but the nonoccupational death
17 benefit shall be payable as provided in this Article.
18 The change made to this subsection by this amendatory Act
19 of the 91st General Assembly (pertaining to remarriage prior
20 to age 55) applies without regard to whether the deceased
21 member was in service on or after the effective date of this
22 amendatory Act.
23 (b) Amount of benefit.
24 The member's accumulated contributions plus credited
25 interest shall be payable in a lump sum to such person as the
26 member has nominated by written direction, duly acknowledged
27 and filed with the Board, or if no such nomination to the
28 estate of the member. When an annuitant is re-employed by a
29 Department, the accumulated contributions plus credited
30 interest payable on the member's account shall, if the member
31 has not previously elected a reversionary annuity, consist of
32 the excess, if any, of the member's total accumulated
33 contributions plus credited interest for all creditable
34 service over the total amount of all retirement annuity
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1 payments received by the member prior to death.
2 In addition to the foregoing payment, an annuity is
3 provided for eligible survivors as follows:
4 (1) If the survivor is a spouse only, the annuity
5 shall be 50% of the member's final average compensation.
6 (2) If the spouse has in his or her care an
7 eligible child or children, the annuity shall be
8 increased by an amount equal to 15% of the final average
9 compensation on account of each such child, subject to a
10 limitation on the combined annuities to a surviving
11 spouse and children of 75% of final average compensation.
12 (3) If there is no surviving spouse, or if the
13 surviving spouse dies or remarries while a child remains
14 eligible, then each such child shall be entitled to an
15 annuity of 15% of the deceased member's final average
16 compensation, subject to a limitation of 50% of final
17 average compensation to all such children.
18 (4) If there is no surviving spouse or eligible
19 children, then an annuity shall be payable to the
20 member's dependent parents, equal to 25% of final average
21 compensation to each such beneficiary.
22 If any annuity payable under this Section is less than
23 the corresponding survivors annuity, the beneficiary or
24 beneficiaries of the annuity under this Section may elect to
25 receive the survivors annuity and the nonoccupational death
26 benefit provided for in this Article in lieu of the annuity
27 provided under this Section.
28 (c) Occupational death claims pending adjudication by
29 the Industrial Commission or a ruling by the agency
30 responsible for determining the liability of the State under
31 the "Workers' Compensation Act" or "Workers' Occupational
32 Diseases Act" shall be payable under Sections 14-120 and
33 14-121 the Survivor's Annuity Section of this Article until a
34 ruling or adjudication occurs, if the beneficiary or
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1 beneficiaries: (1) meet all conditions for payment as
2 prescribed in this Article; and (2) execute an assignment of
3 benefits payable as a result of adjudication by the
4 Industrial Commission or a ruling by the agency responsible
5 for determining the liability of the State under such Acts.
6 The assignment shall be made to the System and shall be for
7 an amount equal to the excess of benefits paid under Sections
8 14-120 and 14-121 the Survivor's Annuity Section of this
9 Article over benefits payable as a result of adjudication of
10 the workers' compensation claim computed from the date of
11 death of the member.
12 (d) Every occupational death annuity payable under this
13 Section shall be increased on each January 1 occurring on or
14 after (i) January 1, 1990, or (ii) the first anniversary of
15 the commencement of the annuity, whichever occurs later, by
16 an amount equal to 3% of the current amount of the annuity,
17 including any previous increases under this Article, without
18 regard to whether the deceased member was in service on the
19 effective date of this amendatory Act of 1991.
20 (Source: P.A. 90-448, eff. 8-16-97.)
21 (40 ILCS 5/14-130) (from Ch. 108 1/2, par. 14-130)
22 Sec. 14-130. Refunds; rules.
23 (a) Upon withdrawal a member is entitled to receive,
24 upon written request, a refund of the member's contributions,
25 including credits granted while in receipt of disability
26 benefits, without credited interest. The board, in its
27 discretion may withhold payment of the refund of a member's
28 contributions for a period not to exceed 1 year after the
29 member has ceased to be an employee.
30 For purposes of this Section, a member will be considered
31 to have withdrawn from service if a change in, or transfer
32 of, his position results in his becoming ineligible for
33 continued membership in this System and eligible for
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1 membership in another public retirement system under this
2 Act.
3 (b) A member receiving a refund forfeits and
4 relinquishes all accrued rights in the System, including all
5 accumulated creditable service. If the person again becomes
6 a member of the System and establishes at least 2 years of
7 creditable service, the member may repay the moneys
8 previously refunded. However, a former member may restore
9 credits previously forfeited by acceptance of a refund
10 without returning to service by applying in writing and
11 repaying to the System, by April 1, 1993, the amount of the
12 refund plus regular interest calculated from the date of
13 refund to the date of repayment.
14 The repayment of refunds issued prior to January 1, 1984
15 shall consist of the amount refunded plus 5% interest per
16 annum compounded annually for the period from the date of the
17 refund to the end of the month in which repayment is made.
18 The repayment of refunds issued after January 1, 1984 shall
19 consist of the amount refunded plus regular interest for the
20 period from the date of refund to the end of the month in
21 which repayment is made. However, in the case of a refund
22 that is repaid in a lump sum between January 1, 1991 and July
23 1, 1991, repayment shall consist of the amount refunded plus
24 interest at the rate of 2.5% per annum compounded annually
25 from the date of the refund to the end of the month in which
26 repayment is made.
27 Upon repayment, the member shall receive credit for the
28 service, member contributions and regular interest that was
29 forfeited by acceptance of the refund as well as regular
30 interest for the period of non-membership. Such repayment
31 shall be made in full before retirement either in a lump sum
32 or in installment payments in accordance with such rules as
33 may be adopted by the board.
34 (b-5) The Board may adopt rules governing the repayment
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1 of refunds and establishment of credits in cases involving
2 awards of back pay or reinstatement. The rules may authorize
3 repayment of a refund in installment payments and may waive
4 the payment of interest on refund amounts repaid in full
5 within a specified period.
6 (c) A member no longer in service who is unmarried and
7 on the date of retirement or who does not have an eligible
8 survivors annuity beneficiary on the at that date of
9 application therefor is entitled to a refund of contributions
10 for widow's annuity or survivors annuity purposes, or both,
11 as the case may be, without interest. A widow's annuity or
12 survivors annuity shall not be payable upon the death of a
13 person who has received this refund, unless prior to that
14 death the amount of the refund has been repaid to the System,
15 together with regular interest from the date of the refund to
16 the date of repayment.
17 (d) Any member who has service credit in any position
18 for which an alternative retirement annuity is provided and
19 in relation to which an increase in the rate of employee
20 contribution is required, shall be entitled to a refund,
21 without interest, of that part of the member's employee
22 contribution which results from that increase in the employee
23 rate if the member does not qualify for that alternative
24 retirement annuity at the time of retirement.
25 (Source: P.A. 90-448, eff. 8-16-97.)
26 (40 ILCS 5/15-107) (from Ch. 108 1/2, par. 15-107)
27 Sec. 15-107. Employee.
28 (a) "Employee" means any member of the educational,
29 administrative, secretarial, clerical, mechanical, labor or
30 other staff of an employer whose employment is permanent and
31 continuous or who is employed in a position in which services
32 are expected to be rendered on a continuous basis for at
33 least 4 months or one academic term, whichever is less, who
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1 (A) receives payment for personal services on a warrant
2 issued pursuant to a payroll voucher certified by an employer
3 and drawn by the State Comptroller upon the State Treasurer
4 or by an employer upon trust, federal or other funds, or (B)
5 is on a leave of absence without pay. Employment which is
6 irregular, intermittent or temporary shall not be considered
7 continuous for purposes of this paragraph.
8 However, a person is not an "employee" if he or she:
9 (1) is a student enrolled in and regularly
10 attending classes in a college or university which is an
11 employer, and is employed on a temporary basis at less
12 than full time;
13 (2) is currently receiving a retirement annuity or
14 a disability retirement annuity under Section 15-153.2
15 from this System;
16 (3) is on a military leave of absence;
17 (4) is eligible to participate in the Federal Civil
18 Service Retirement System and is currently making
19 contributions to that system based upon earnings paid by
20 an employer;
21 (5) is on leave of absence without pay for more
22 than 60 days immediately following termination of
23 disability benefits under this Article;
24 (6) is hired after June 30, 1979 as a public
25 service employment program participant under the Federal
26 Comprehensive Employment and Training Act and receives
27 earnings in whole or in part from funds provided under
28 that Act;
29 (7) is employed on or after July 1, 1991 to perform
30 services that are excluded by subdivision (a)(7)(f) or
31 (a)(19) of Section 210 of the federal Social Security Act
32 from the definition of employment given in that Section
33 (42 U.S.C. 410); or
34 (8) participates in an optional program for
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1 part-time workers under Section 15-158.1.
2 (b) Any employer may, by filing a written notice with
3 the board, exclude from the definition of "employee" all
4 persons employed pursuant to a federally funded contract
5 entered into after July 1, 1982 with a federal military
6 department in a program providing training in military
7 courses to federal military personnel on a military site
8 owned by the United States Government, if this exclusion is
9 not prohibited by the federally funded contract or federal
10 laws or rules governing the administration of the contract.
11 (c) Any person appointed by the Governor under the Civil
12 Administrative Code of the State is an employee, if he or she
13 is a participant in this system on the effective date of the
14 appointment.
15 (d) A participant on lay-off status under civil service
16 rules is considered an employee for not more than 120 days
17 from the date of the lay-off.
18 (e) A participant is considered an employee during (1)
19 the first 60 days of disability leave, (2) the period, not to
20 exceed one year, in which his or her eligibility for
21 disability benefits is being considered by the board or
22 reviewed by the courts, and (3) the period he or she receives
23 disability benefits under the provisions of Section 15-152,
24 workers' compensation or occupational disease benefits, or
25 disability income under an insurance contract financed wholly
26 or partially by the employer.
27 (f) Absences without pay, other than formal leaves of
28 absence, of less than 30 calendar days, are not considered as
29 an interruption of a person's status as an employee. If such
30 absences during any period of 12 months exceed 30 work days,
31 the employee status of the person is considered as
32 interrupted as of the 31st work day.
33 (g) A staff member whose employment contract requires
34 services during an academic term is to be considered an
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1 employee during the summer and other vacation periods, unless
2 he or she declines an employment contract for the succeeding
3 academic term or his or her employment status is otherwise
4 terminated, and he or she receives no earnings during these
5 periods.
6 (h) An individual who was a participating employee
7 employed in the fire department of the University of
8 Illinois's Champaign-Urbana campus immediately prior to the
9 elimination of that fire department and who immediately after
10 the elimination of that fire department became employed by
11 the fire department of the City of Urbana or the City of
12 Champaign shall continue to be considered as an employee for
13 purposes of this Article for so long as the individual
14 remains employed as a firefighter by the City of Urbana or
15 the City of Champaign. The individual shall cease to be
16 considered an employee under this subsection (h) upon the
17 first termination of the individual's employment as a
18 firefighter by the City of Urbana or the City of Champaign.
19 (i) An individual who is employed on a full-time basis
20 as an officer or employee of a statewide teacher organization
21 that serves System participants or an officer of a national
22 teacher organization that serves System participants may
23 participate in the System and shall be deemed an employee,
24 provided that (1) the individual has previously earned
25 creditable service under this Article, (2) the individual
26 files with the System an irrevocable election to become a
27 participant, and (3) the individual does not receive credit
28 for that employment under any other Article of this Code. An
29 employee under this subsection (i) is responsible for paying
30 to the System both (A) employee contributions based on the
31 actual compensation received for service with the teacher
32 organization and (B) employer contributions equal to the
33 normal costs (as defined in Section 15-155) resulting from
34 that service; all or any part of these contributions may be
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1 paid on the employee's behalf or picked up for tax purposes
2 (if authorized under federal law) by the teacher
3 organization.
4 A person who is an employee as defined in this subsection
5 (i) may establish service credit for similar employment prior
6 to becoming an employee under this subsection by paying to
7 the System for that employment the contributions specified in
8 this subsection, plus interest at the effective rate from the
9 date of service to the date of payment. However, credit
10 shall not be granted under this subsection for any such prior
11 employment for which the applicant received credit under any
12 other provision of this Code, or during which the applicant
13 was on a leave of absence under Section 15-113.2.
14 (Source: P.A. 89-430, eff. 12-15-95; 90-448, eff. 8-16-97;
15 90-576, eff. 3-31-98; 90-766, eff. 8-14-98.)
16 (40 ILCS 5/15-111) (from Ch. 108 1/2, par. 15-111)
17 Sec. 15-111. Earnings. "Earnings": An amount paid for
18 personal services equal to the sum of the basic compensation
19 plus extra compensation for summer teaching, overtime or
20 other extra service. For periods for which an employee
21 receives service credit under subsection (c) of Section
22 15-113.1 or Section 15-113.2, earnings are equal to the basic
23 compensation on which contributions are paid by the employee
24 during such periods. Compensation for employment which is
25 irregular, intermittent and temporary shall not be considered
26 earnings, unless the participant is also receiving earnings
27 from the employer as an employee under Section 15-107.
28 With respect to transition pay paid by the University of
29 Illinois to a person who was a participating employee
30 employed in the fire department of the University of
31 Illinois's Champaign-Urbana campus immediately prior to the
32 elimination of that fire department:
33 (1) "Earnings" includes transition pay paid to the
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1 employee on or after the effective date of this
2 amendatory Act of the 91st General Assembly.
3 (2) "Earnings" includes transition pay paid to the
4 employee before the effective date of this amendatory Act
5 of the 91st General Assembly only if (i) employee
6 contributions under Section 15-157 have been withheld
7 from that transition pay or (ii) the employee pays to the
8 System before January 1, 2001 an amount representing
9 employee contributions under Section 15-157 on that
10 transition pay. Employee contributions under item (ii)
11 may be paid in a lump sum, by withholding from additional
12 transition pay accruing before January 1, 2001, or in any
13 other manner approved by the System. Upon payment of the
14 employee contributions on transition pay, the
15 corresponding employer contributions become an obligation
16 of the State.
17 (Source: P.A. 87-8.)
18 (40 ILCS 5/15-112) (from Ch. 108 1/2, par. 15-112)
19 Sec. 15-112. Final rate of earnings. "Final rate of
20 earnings": For an employee who is paid on an hourly basis or
21 who receives an annual salary in installments during 12
22 months of each academic year, the average annual earnings
23 during the 48 consecutive calendar month period ending with
24 the last day of final termination of employment or the 4
25 consecutive academic years of service in which the employee's
26 earnings were the highest, whichever is greater. For any
27 other employee, the average annual earnings during the 4
28 consecutive academic years of service in which his or her
29 earnings were the highest. For an employee with less than 48
30 months or 4 consecutive academic years of service, the
31 average earnings during his or her entire period of service.
32 The earnings of an employee with more than 36 months of
33 service prior to the date of becoming a participant are, for
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1 such period, considered equal to the average earnings during
2 the last 36 months of such service. For an employee on leave
3 of absence with pay, or on leave of absence without pay who
4 makes contributions during such leave, earnings are assumed
5 to be equal to the basic compensation on the date the leave
6 began. For an employee on disability leave, earnings are
7 assumed to be equal to the basic compensation on the date
8 disability occurs or the average earnings during the 24
9 months immediately preceding the month in which disability
10 occurs, whichever is greater.
11 For a participant who retires on or after the effective
12 date of this amendatory Act of 1997 with at least 20 years of
13 service as a firefighter or police officer under this
14 Article, the final rate of earnings shall be the annual rate
15 of earnings received by the participant on his or her last
16 day as a firefighter or police officer under this Article, if
17 that is greater than the final rate of earnings as calculated
18 under the other provisions of this Section.
19 If a participant is an employee for at least 6 months
20 during the academic year in which his or her employment is
21 terminated, the annual final rate of earnings shall be 25% of
22 the sum of (1) the annual basic compensation for that year,
23 and (2) the amount earned during the 36 months immediately
24 preceding that year, if this is greater than the final rate
25 of earnings as calculated under the other provisions of this
26 Section.
27 In the determination of the final rate of earnings for an
28 employee, that part of an employee's earnings for any
29 academic year beginning after June 30, 1997, which exceeds
30 the employee's earnings with that employer for the preceding
31 year by more than 20 percent shall be excluded; in the event
32 that an employee has more than one employer this limitation
33 shall be calculated separately for the earnings with each
34 employer. In making such calculation, only the basic
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1 compensation of employees shall be considered, without regard
2 to vacation or overtime or to contracts for summer
3 employment.
4 The following are not considered as earnings in
5 determining final rate of earnings: severance or separation
6 pay, retirement pay, payment in lieu of unused sick leave and
7 payments from an employer for the period used in determining
8 final rate of earnings for any purpose other than services
9 rendered, leave of absence or vacation granted during that
10 period, and vacation of up to 56 work days allowed upon
11 termination of employment under a vacation policy of an
12 employer which was in effect on or before January 1, 1977.
13 Intermittent periods of service shall be considered as
14 consecutive in determining final rate of earnings.
15 (Source: P.A. 90-65, eff. 7-7-97; 90-511, eff. 8-22-97.)
16 (40 ILCS 5/15-120) (from Ch. 108 1/2, par. 15-120)
17 Sec. 15-120. Beneficiary; survivor annuitant under
18 portable benefit package. "Beneficiary": The person or
19 persons designated by the participant or annuitant in the
20 last written designation on file with the board; or if no
21 person so designated survives, or if no designation is on
22 file, the estate of the participant or annuitant. Acceptance
23 by the participant of a refund of accumulated contributions
24 shall result in cancellation of all beneficiary designations
25 previously filed. A spouse whose marriage was dissolved shall
26 be disqualified as beneficiary unless the spouse was
27 designated as beneficiary after the effective date of the
28 dissolution of marriage.
29 After a joint and survivor annuity commences under the
30 portable benefit package, the survivor annuitant of a joint
31 and survivor annuity is not disqualified, and may not be
32 removed, as the survivor annuitant by a dissolution of the
33 survivor's marriage with the participant or annuitant.
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1 (Source: P.A. 83-1440.)
2 (40 ILCS 5/15-132.2 new)
3 Sec. 15-132.2. Retire and retirement. A participant
4 "retires", and his or her "retirement" begins, when his or
5 her annuity payment period begins.
6 (40 ILCS 5/15-134.5)
7 Sec. 15-134.5. Retirement program elections.
8 (a) All participating employees are participants under
9 the traditional benefit package prior to January 1, 1998.
10 Effective as of the date that an employer elects, as
11 described in Section 15-158.2, to offer to its employees the
12 portable benefit package and the self-managed plan as
13 alternatives to the traditional benefit package, each of that
14 employer's eligible employees (as defined in subsection (b))
15 shall be given the choice to elect which retirement program
16 he or she wishes to participate in with respect to all
17 periods of covered employment occurring on and after the
18 effective date of the employee's election. The retirement
19 program election made by an eligible employee must be made in
20 writing, in the manner prescribed by the System, and within
21 the time period described in subsection (d) or (d-1).
22 The employee election authorized by this Section is a
23 one-time, irrevocable election. If an employee terminates
24 employment after making the election provided under this
25 subsection (a), then upon his or her subsequent re-employment
26 with an employer the original election shall automatically
27 apply to him or her, provided that the employer is then a
28 participating employer as described in Section 15-158.2.
29 An eligible employee who fails to make this election
30 shall, by default, participate in the traditional benefit
31 package.
32 (b) "Eligible employee" means an employee (as defined in
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1 Section 15-107) who is either a currently eligible employee
2 or a newly eligible employee. For purposes of this Section,
3 a "currently eligible employee" is an employee who is
4 employed by an employer on the effective date on which the
5 employer offers to its employees the portable benefit package
6 and the self-managed plan as alternatives to the traditional
7 benefit package. A "newly eligible employee" is an employee
8 who first becomes employed by an employer after the effective
9 date on which the employer offers its employees the portable
10 benefit package and the self-managed plan as alternatives to
11 the traditional benefit package. A newly eligible employee
12 participates in the traditional benefit package until he or
13 she makes an election to participate in the portable benefit
14 package or the self-managed plan. If an employee does not
15 elect to participate in the portable benefit package or the
16 self-managed plan, he or she shall continue to participate in
17 the traditional benefit package by default.
18 (c) An eligible employee who at the time he or she is
19 first eligible to make the election described in subsection
20 (a) does not have sufficient age and service to qualify for a
21 retirement annuity under Section 15-135 may elect to
22 participate in the traditional benefit package, the portable
23 benefit package, or the self-managed plan. An eligible
24 employee who has sufficient age and service to qualify for a
25 retirement annuity under Section 15-135 at the time he or she
26 is first eligible to make the election described in
27 subsection (a) may elect to participate in the traditional
28 benefit package or the portable benefit package, but may not
29 elect to participate in the self-managed plan.
30 (d) A currently eligible employee must make this
31 election within one year after the effective date of the
32 employer's adoption of the self-managed plan.
33 A newly eligible employee must make this election within
34 6 months after the date on which the System receives the
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1 report of status certification from the employer 60 days
2 after becoming an eligible employee. If an employee elects to
3 participate in the self-managed plan, no employer
4 contributions shall be remitted to the self-managed plan when
5 the employee's account balance transfer is made. Employer
6 contributions to the self-managed plan shall commence as of
7 the first pay period that begins after the System receives
8 the employee's election.
9 (d-1) A newly eligible employee who, prior to the
10 effective date of this amendatory Act of the 91st General
11 Assembly, fails to make the election within the period
12 provided under subsection (d) and participates by default in
13 the traditional benefit package may make a late election to
14 participate in the portable benefit package or the
15 self-managed plan instead of the traditional benefit package
16 at any time within 6 months after the effective date of this
17 amendatory Act of the 91st General Assembly. The employer
18 shall not remit contributions to the System on behalf of a
19 newly eligible employee until the earlier of the expiration
20 of the employee's 60-day election period or the date on which
21 the employee submits a properly completed election to the
22 employer or to the System.
23 (e) If a currently an eligible employee elects the
24 portable benefit package, that election shall not become
25 effective until the one-year anniversary of the date on which
26 the election is filed with the System, provided the employee
27 remains continuously employed by the employer throughout the
28 one-year waiting period, and any benefits payable to or on
29 account of the employee before such one-year waiting period
30 has ended shall not be determined under the provisions
31 applicable to the portable benefit package but shall instead
32 be determined in accordance with the traditional benefit
33 package. If a currently an eligible employee who has elected
34 the portable benefit package terminates employment covered by
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1 the System before the one-year waiting period has ended, then
2 no benefits shall be determined under the portable benefit
3 package provisions while he or she is inactive in the System
4 and upon re-employment with an employer covered by the System
5 he or she shall begin a new one-year waiting period before
6 the provisions of the portable benefit package become
7 effective.
8 (f) An eligible employee shall be provided with written
9 information prepared or prescribed by the System which
10 describes the employee's retirement program choices. The
11 eligible employee shall be offered an opportunity to receive
12 counseling from the System prior to making his or her
13 election. This counseling may consist of videotaped
14 materials, group presentations, individual consultation with
15 an employee or authorized representative of the System in
16 person or by telephone or other electronic means, or any
17 combination of these methods.
18 (Source: P.A. 90-766, eff. 8-14-98.)
19 (40 ILCS 5/15-136.4)
20 Sec. 15-136.4. Retirement and Survivor Benefits Under
21 Portable Benefit Package.
22 (a) This Section 15-136.4 describes the form of annuity
23 and survivor benefits available to a participant who has
24 elected the portable benefit package and has completed the
25 one-year waiting period required under subsection (e) of
26 Section 15-134.5. For purposes of this Section, the term
27 "eligible spouse" means the husband or wife of a participant
28 to whom the participant is married on the date the
29 participant's retirement annuity begins, provided however,
30 that if the participant should die prior to the commencement
31 of retirement annuity benefits, then "eligible spouse" means
32 the husband or wife, if any, to whom the participant was
33 married throughout the one-year period preceding the date of
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1 his or her death.
2 (b) This subsection (b) describes the normal form of
3 annuity payable to a participant subject to this Section
4 15-136.4. If the participant is unmarried on the date his or
5 her annuity payments commence, then the annuity payments
6 shall be made in the form of a single-life annuity as
7 described in Section 15-118. If the participant is married
8 on the date his or her annuity payments commence, then the
9 annuity payments shall be paid in the form of a qualified
10 joint and survivor annuity that is the actuarial equivalent
11 of the single-life annuity. Under the "qualified joint and
12 survivor annuity", a reduced amount shall be paid to the
13 participant for his or her lifetime and his or her eligible
14 spouse, if surviving at the participant's death, shall be
15 entitled to receive thereafter a lifetime survivorship
16 annuity in a monthly amount equal to 50% of the reduced
17 monthly amount that was payable to the participant. The last
18 payment of a qualified joint and survivor annuity shall be
19 made as of the first day of the month in which the death of
20 the survivor occurs.
21 (c) Instead of the normal form of annuity that would be
22 paid under subsection (b), a participant may elect in writing
23 within the 90-day period prior to the date his or her annuity
24 payments commence to waive the normal form of annuity payment
25 and receive an optional form of annuity as described in
26 subsection (h). If the participant is married and elects an
27 optional form of annuity under subsection (h) other than a
28 joint and survivor annuity with the eligible spouse
29 designated as the contingent annuitant, then such election
30 shall require the consent of his or her eligible spouse in
31 the manner described in subsection (d). At any time during
32 the 90-day period preceding the date the participant's
33 annuity commences, the participant may revoke the optional
34 form elected under this subsection (c) and reinstate coverage
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1 under the qualified joint and survivor annuity without the
2 spouse's consent, but an election to revoke the optional form
3 elected and elect a new optional form or designate a
4 different contingent annuitant shall not be effective without
5 the eligible spouse's consent.
6 (d) The eligible spouse's consent to any election made
7 pursuant to this Section that requires the eligible spouse's
8 consent shall be in writing and shall acknowledge the effect
9 of the consent. In addition, the eligible spouse's signature
10 on the written consent must be witnessed by a notary public.
11 The eligible spouse's consent need not be obtained if the
12 system is satisfied that there is no eligible spouse, that
13 the eligible spouse cannot be located, or because of any
14 other relevant circumstances. An eligible spouse's consent
15 under this Section is valid only with respect to the
16 specified optional form of payment and, if applicable,
17 contingent annuitant designated by the participant. If the
18 optional form of payment or the contingent annuitant is
19 subsequently changed (other than by a revocation of the
20 optional form and reinstatement of the qualified joint and
21 survivor annuity), a new consent by the eligible spouse is
22 required. The eligible spouse's consent to an election made
23 by a participant pursuant to this Section, once made, may not
24 be revoked by the eligible spouse.
25 (e) Within a reasonable period of time preceding the
26 date a participant's annuity commences, a participant shall
27 be supplied with a written explanation of (1) the terms and
28 conditions of the normal form single-life annuity and
29 qualified joint and survivor annuity, (2) the participant's
30 right to elect a single-life annuity or an optional form of
31 payment under subsection (h) subject to his or her eligible
32 spouse's consent, if applicable, and (3) the participant's
33 right to reinstate coverage under the qualified joint and
34 survivor annuity prior to his or her annuity commencement
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1 date by revoking an election of an optional form of benefit
2 under subsection (h).
3 (f) If a married participant with at least 1.5 years 5
4 years of service dies prior to commencing retirement annuity
5 payments and prior to taking a refund under Section 15-154,
6 his or her eligible spouse is entitled to receive a
7 pre-retirement survivor annuity, if there is not then in
8 effect a waiver of the pre-retirement survivor annuity. The
9 pre-retirement survivor annuity payable under this subsection
10 shall be a monthly annuity payable for the eligible spouse's
11 life, commencing as of the beginning of the month next
12 following the later of the date of the participant's death or
13 the date the participant would have first met the eligibility
14 requirements for retirement, and continuing through the
15 beginning of the month in which the death of the eligible
16 spouse occurs. The monthly amount payable to the spouse
17 under the pre-retirement survivor annuity shall be equal to
18 the monthly amount that would be payable as a survivor
19 annuity under the qualified joint and survivor annuity
20 described in subsection (b) if: (1) in the case of a
21 participant who dies on or after the date on which the
22 participant has met the eligibility requirements for
23 retirement, the participant had retired with an immediate
24 qualified joint and survivor annuity on the day before the
25 participant's date of death; or (2) in the case of a
26 participant who dies before the earliest date on which the
27 participant would have met the eligibility requirements for
28 retirement age, the participant had separated from service on
29 the date of death, survived to the earliest retirement age
30 based on service prior to his or her death, retired with an
31 immediate qualified joint and survivor annuity at the
32 earliest retirement age, and died on the day after the day on
33 which the participant would have attained the earliest
34 retirement age.
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1 (g) A married participant who has not retired may elect
2 at any time to waive the pre-retirement survivor annuity
3 described in subsection (f). Any such election shall require
4 the consent of the participant's eligible spouse in the
5 manner described in subsection (e). A waiver of the
6 pre-retirement survivor annuity shall increase the lump sum
7 death benefit payable under subsection (b) of Section 15-141.
8 Prior to electing any waiver of the pre-retirement survivor
9 annuity, the participant shall be provided with a written
10 explanation of (1) the terms and conditions of the
11 pre-retirement survivor annuity and the death benefits
12 payable from the system both with and without the
13 pre-retirement survivor annuity, (2) the participant's right
14 to elect a waiver of the pre-retirement survivor annuity
15 coverage subject to his or her spouse's consent, and (3) the
16 participant's right to reinstate pre-retirement survivor
17 annuity coverage at any time by revoking a prior waiver of
18 such coverage.
19 (h) By filing a timely election with the system, a
20 participant who will be eligible to receive a retirement
21 annuity under this Section may waive the normal form of
22 annuity payment described in subsection (b), subject to
23 obtaining the consent of his or her eligible spouse, if
24 applicable, and elect to receive any one of the following
25 optional annuity forms:
26 (1) Joint and Survivor Annuity Options: The
27 participant may elect to receive a reduced annuity
28 payable for his or her life and to have a lifetime
29 survivorship annuity in a monthly amount equal to 50%,
30 75%, or 100% (as elected by the participant) of that
31 reduced monthly amount, to be paid after the
32 participant's death to his or her contingent annuitant,
33 if the contingent annuitant is alive at the time of the
34 participant's death.
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1 (2) Single-Life Annuity Option (optional for
2 married participants). The participant may elect to
3 receive a single-life annuity payable for his or her life
4 only.
5 (3) Lump sum retirement benefit. The participant
6 may elect to receive a lump sum retirement benefit that
7 is equal to the amount of a refund payable under Section
8 15-154(a-2).
9 All optional annuity forms shall be in an amount that is the
10 actuarial equivalent of the single-life annuity.
11 For the purposes of this Section, the term "contingent
12 annuitant" means the beneficiary who is designated by a
13 participant at the time the participant elects a joint and
14 survivor annuity to receive the lifetime survivorship annuity
15 in the event the beneficiary survives the participant at the
16 participant's death.
17 (i) Under no circumstances may an option be elected,
18 changed, or revoked after the date the participant's
19 retirement annuity commences.
20 (j) An election made pursuant to subsection (h) shall
21 become inoperative if the participant or the contingent
22 annuitant dies before the date the participant's annuity
23 payments commence, or if the eligible spouse's consent is
24 required and not given.
25 (k) (Blank). For purposes of applying the provisions of
26 Section 20-123 of this Code, the portable benefit package
27 shall be treated as if it were provided by a participating
28 system that has no survivor's annuity benefit.
29 (l) The automatic annual increases described in
30 subsection (d) of Section 15-136 shall apply to retirement
31 benefits under the portable benefit package and the automatic
32 annual increases described in subsection (j) of Section
33 15-145 shall apply to survivor benefits under the portable
34 benefit package.
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1 (Source: P.A. 90-448, eff. 8-16-97; 90-766, eff. 8-14-98.)
2 (40 ILCS 5/15-139) (from Ch. 108 1/2, par. 15-139)
3 Sec. 15-139. Retirement annuities; cancellation;
4 suspended during employment.
5 (a) If an annuitant returns to employment for an
6 employer within 60 days after the beginning of the retirement
7 annuity payment period, the retirement annuity shall be
8 cancelled, and the annuitant shall refund to the System the
9 total amount of the retirement annuity payments which he or
10 she received. If the retirement annuity is cancelled, the
11 participant shall continue to participate in the System.
12 (b) If an annuitant retires prior to age 60 and receives
13 or becomes entitled to receive during any month compensation
14 in excess of the monthly retirement annuity (including any
15 automatic annual increases) for services performed after the
16 date of retirement for any employer under this System, the
17 State Employees' Retirement System of Illinois, or the
18 Teachers' Retirement System of the State of Illinois, that
19 portion of the monthly retirement annuity provided by
20 employer contributions shall not be payable.
21 If an annuitant retires at age 60 or over and receives or
22 becomes entitled to receive during any academic year
23 compensation in excess of the difference between his or her
24 highest annual earnings prior to retirement and his or her
25 annual retirement annuity computed under Rule 1, Rule 2, Rule
26 3 or Rule 4 of Section 15-136, or under Section 15-136.4, for
27 services performed after the date of retirement for any
28 employer under this System, that portion of the monthly
29 retirement annuity provided by employer contributions shall
30 be reduced by an amount equal to the compensation that
31 exceeds such difference.
32 However, any remuneration received for serving as a
33 member of the Illinois Educational Labor Relations Board
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1 shall be excluded from "compensation" for the purposes of
2 this subsection (b), and serving as a member of the Illinois
3 Educational Labor Relations Board shall not be deemed to be a
4 return to employment for the purposes of this Section. This
5 provision applies without regard to whether service was
6 terminated prior to the effective date of this amendatory Act
7 of 1991.
8 (c) If an employer certifies that an annuitant has been
9 reemployed on a permanent and continuous basis or in a
10 position in which the annuitant is expected to serve for at
11 least 9 months, the annuitant shall resume his or her status
12 as a participating employee and shall be entitled to all
13 rights applicable to participating employees upon filing with
14 the board an election to forego all annuity payments during
15 the period of reemployment. Upon subsequent retirement, the
16 retirement annuity shall consist of the annuity which was
17 terminated by the reemployment, plus the additional
18 retirement annuity based upon service granted during the
19 period of reemployment, but the combined retirement annuity
20 shall not exceed the maximum annuity applicable on the date
21 of the last retirement.
22 The total service and earnings credited before and after
23 the initial date of retirement shall be considered in
24 determining eligibility of the employee or the employee's
25 beneficiary to benefits under this Article, and in
26 calculating final rate of earnings.
27 In determining the death benefit payable to a beneficiary
28 of an annuitant who again becomes a participating employee
29 under this Section, accumulated normal and additional
30 contributions shall be considered as the sum of the
31 accumulated normal and additional contributions at the date
32 of initial retirement and the accumulated normal and
33 additional contributions credited after that date, less the
34 sum of the annuity payments received by the annuitant.
HB1583 Enrolled -111- LRB9101658EGfg
1 The survivors insurance benefits provided under Section
2 15-145 shall not be applicable to an annuitant who resumes
3 his or her status as a participating employee, unless the
4 annuitant, at the time of initial retirement, has a survivors
5 insurance beneficiary who could qualify for such benefits.
6 If the annuitant's employment is terminated because of
7 circumstances other than death before 9 months from the date
8 of reemployment, the provisions of this Section regarding
9 resumption of status as a participating employee shall not
10 apply. The normal and survivors insurance contributions which
11 are deducted during this period shall be refunded to the
12 annuitant without interest, and subsequent benefits under
13 this Article shall be the same as those which were applicable
14 prior to the date the annuitant resumed employment.
15 The amendments made to this Section by this amendatory
16 Act of the 91st General Assembly apply without regard to
17 whether the annuitant was in service on or after the
18 effective date of this amendatory Act.
19 (Source: P.A. 86-1488.)
20 (40 ILCS 5/15-140) (from Ch. 108 1/2, par. 15-140)
21 Sec. 15-140. Reversionary annuities. A participant in
22 the traditional benefit package entitled to a retirement
23 annuity may, prior to retirement, elect to take a reduced
24 retirement annuity and provide with the actuarial value of
25 the reduction, a reversionary annuity to a dependent
26 beneficiary, subject to the following conditions: (1) the
27 participant's written notice of election to provide such
28 annuity is received by the board at least 30 days before the
29 retirement annuity payment period begins, and (2) the amount
30 of the reversionary annuity is not less than $10 per month,
31 and (3) the reversionary annuity is payable only if the
32 participant dies after retirement.
33 The participant may revoke the election by filing a
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1 written notice of revocation with the board. The
2 beneficiary's death prior to retirement of the participant
3 shall constitute a revocation of the election.
4 The amount of the reversionary annuity shall be that
5 specified in the participant's notice of election, but not
6 more than the amount which when added to the survivors
7 annuity payable to the dependent beneficiary, would equal the
8 participant's reduced retirement annuity. The participant
9 shall specify in the notice of election whether the full
10 retirement annuity is to be resumed or the reduced retirement
11 annuity is to be continued, in the event the beneficiary
12 predeceases the annuitant.
13 The reversionary annuity payment period shall begin on
14 the day following the annuitant's death. A reversionary
15 annuity shall not be payable if the beneficiary predeceases
16 the annuitant.
17 (Source: P.A. 84-1028.)
18 (40 ILCS 5/15-141) (from Ch. 108 1/2, par. 15-141)
19 Sec. 15-141. Death benefits - Death of participant.
20 (a) The beneficiary of a participant under the
21 traditional benefit package is entitled to a death benefit
22 equal to the sum of (1) the employee's accumulated normal and
23 additional contributions on the date of death, (2) the
24 employee's accumulated survivors insurance contributions on
25 the date of death, if a survivors insurance benefit is not
26 payable, (3) an amount equal to the employee's final rate of
27 earnings, but not more than $5,000 if (i) the beneficiary,
28 under rules of the board, was dependent upon the participant,
29 (ii) the participant was a participating employee immediately
30 prior to his or her death, and (iii) a survivors insurance
31 benefit is not payable, and (4) $2,500 if (i) the beneficiary
32 was not dependent upon the participant, (ii) the participant
33 was a participating employee immediately prior to his or her
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1 death, and (iii) a survivors insurance benefit is not
2 payable.
3 (b) If the participant has elected to participate in the
4 portable benefit package and has completed the one-year
5 waiting period required under subsection (e) of Section
6 15-134.5, the death benefit shall be equal to the employee's
7 accumulated normal and additional contributions on the date
8 of death plus, if the employee died with 1.5 or 5 or more
9 years of service for employment as defined in Section
10 15-113.1, employer contributions in an amount equal to the
11 sum of the accumulated normal and additional contributions;
12 except that if a pre-retirement survivor annuity is payable
13 under Section 15-136.4, the death benefit payable under this
14 paragraph shall be reduced, but to not less than zero, by the
15 actuarial value of the benefit payable to the surviving
16 spouse. If the recipient of a pre-retirement survivor
17 annuity dies before an amount equal to all accumulated normal
18 and additional contributions as of the date of death have
19 been paid out, the remaining difference shall be paid to the
20 member's beneficiary. The primary beneficiary of the
21 participant must be his or her spouse unless the spouse has
22 consented to the designation of another beneficiary in the
23 manner described in subsection (d) of Section 15-136.4.
24 (c) If payments are made under any State or federal
25 workers' compensation or occupational diseases law because of
26 the death of an employee, the portion of the death benefit
27 payable from employer contributions shall be reduced by the
28 total amount of the payments.
29 (Source: P.A. 90-448, eff. 8-16-97; 90-766, eff. 8-14-98.)
30 (40 ILCS 5/15-142) (from Ch. 108 1/2, par. 15-142)
31 Sec. 15-142. Death benefits - Death of annuitant. Upon
32 the death of an annuitant receiving a retirement annuity or
33 disability retirement annuity, the annuitant's beneficiary
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1 shall, if a survivor's insurance benefit is not payable under
2 Section 15-145 and an a pre-retirement survivor annuity is
3 not payable under Section 15-136.4, be entitled to a death
4 benefit equal to the greater of the following: (1) the
5 excess, if any, of the sum of the accumulated normal,
6 survivors insurance, and additional contributions as of the
7 date of retirement or the date the disability retirement
8 annuity began, whichever is earlier, over the sum of all
9 annuity payments made prior to the date of death, or (2)
10 $1,000.
11 (Source: P.A. 90-448, eff. 8-16-97; 90-766, eff. 8-14-98.)
12 (40 ILCS 5/15-144) (from Ch. 108 1/2, par. 15-144)
13 Sec. 15-144. Beneficiary annuities. This Section
14 applies only to the death benefits of persons who became
15 participants before August 22, 1997 (the effective date of
16 Public Act 90-511).
17 If a deceased participant has specified in a written
18 notice on file with the board prior to his or her death, or
19 if the participant has not so specified, but the beneficiary
20 specifies in the application for the death benefit that the
21 benefit be paid as an annuity or as a designated cash payment
22 plus an annuity, it shall be paid in the manner thus
23 specified, unless the annuity is less than $10 per month, in
24 which case the death benefit shall be paid in a single cash
25 sum. If the death benefit is paid as an annuity, the
26 beneficiary may elect to take an amount not in excess of $500
27 in a single cash sum. The annuity payable to a beneficiary
28 shall be the actuarial equivalent of the death benefit,
29 determined as of the participant's date of death, on the
30 basis of the age of the beneficiary at that time.
31 The beneficiary annuity payment period shall begin on the
32 day following the death of the deceased and shall terminate
33 on the date of the beneficiary's death. If the beneficiary
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1 may receive the death benefit in a single cash sum, but
2 elects to receive an annuity, he or she may, within one year
3 after the death of the participant or annuitant, revoke this
4 election and receive in a single cash sum the excess of the
5 amount of the death benefit upon which the annuity was based
6 over the sum of the annuity payments received.
7 (Source: P.A. 83-1440.)
8 (40 ILCS 5/15-145) (from Ch. 108 1/2, par. 15-145)
9 Sec. 15-145. Survivors insurance benefits; conditions
10 and amounts.
11 (a) The survivors insurance benefits provided under this
12 Section shall be payable to the eligible survivors of a
13 participant covered under the traditional benefit package
14 upon the death of (1) a participating employee with at least
15 1 1/2 years of service, (2) a participant who terminated
16 employment with at least 10 years of service, and (3) an
17 annuitant in receipt of a retirement annuity or disability
18 retirement annuity under this Article.
19 Service under the State Employees' Retirement System of
20 Illinois, the Teachers' Retirement System of the State of
21 Illinois and the Public School Teachers' Pension and
22 Retirement Fund of Chicago shall be considered in determining
23 eligibility for survivors benefits under this Section.
24 If by law, a function of a governmental unit, as defined
25 by Section 20-107, is transferred in whole or in part to an
26 employer, and an employee transfers employment from this
27 governmental unit to such employer within 6 months after the
28 transfer of this function, the service credits in the
29 governmental unit's retirement system which have been
30 validated under Section 20-109 shall be considered in
31 determining eligibility for survivors benefits under this
32 Section.
33 (b) A surviving spouse of a deceased participant, or of
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1 a deceased annuitant who did not take a refund or additional
2 annuity consisting of accumulated survivors insurance
3 contributions who had a survivors insurance beneficiary at
4 the time of retirement, shall receive a survivors annuity of
5 30% of the final rate of earnings. Payments shall begin on
6 the day following the participant's or annuitant's death or
7 the date the surviving spouse attains age 50, whichever is
8 later, and continue until the death of the surviving spouse.
9 The annuity shall be payable to the surviving spouse prior to
10 attainment of age 50 if the surviving spouse has in his or
11 her care a deceased participant's or annuitant's dependent
12 unmarried child under age 18 (under age 22 if a full-time
13 student) who is eligible for a survivors annuity. Remarriage
14 of a surviving spouse prior to attainment of age 55 that
15 occurs before the effective date of this amendatory Act of
16 the 91st General Assembly shall disqualify him or her for the
17 receipt of a survivors annuity.
18 (c) Each dependent unmarried child under age 18 (under
19 age 22 if a full-time student) of a deceased participant, or
20 of a deceased annuitant who did not take a refund or
21 additional annuity consisting of accumulated survivors
22 insurance contributions who had a survivors insurance
23 beneficiary at the time of his or her retirement, shall
24 receive a survivors annuity equal to the sum of (1) 20% of
25 the final rate of earnings, and (2) 10% of the final rate of
26 earnings divided by the number of children entitled to this
27 benefit. Payments shall begin on the day following the
28 participant's or annuitant's death and continue until the
29 child marries, dies, or attains age 18 (age 22 if a full-time
30 student). If the child is in the care of a surviving spouse
31 who is eligible for survivors insurance benefits, the child's
32 benefit shall be paid to the surviving spouse.
33 Each unmarried child over age 18 of a deceased
34 participant or of a deceased annuitant who had a survivor's
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1 insurance beneficiary at the time of his or her retirement,
2 and who was dependent upon the participant or annuitant by
3 reason of a physical or mental disability which began prior
4 to the date the child attained age 18 (age 22 if a full-time
5 student), shall receive a survivor's annuity equal to the sum
6 of (1) 20% of the final rate of earnings, and (2) 10% of the
7 final rate of earnings divided by the number of children
8 entitled to survivors benefits. Payments shall begin on the
9 day following the participant's or annuitant's death and
10 continue until the child marries, dies, or is no longer
11 disabled. If the child is in the care of a surviving spouse
12 who is eligible for survivors insurance benefits, the child's
13 benefit may be paid to the surviving spouse. For the
14 purposes of this Section, disability means inability to
15 engage in any substantial gainful activity by reason of any
16 medically determinable physical or mental impairment that can
17 be expected to result in death or that has lasted or can be
18 expected to last for a continuous period of at least one
19 year.
20 (d) Each dependent parent of a deceased participant, or
21 of a deceased annuitant who did not take a refund or
22 additional annuity consisting of accumulated survivors
23 insurance contributions who had a survivors insurance
24 beneficiary at the time of his or her retirement, shall
25 receive a survivors annuity equal to the sum of (1) 20% of
26 final rate of earnings, and (2) 10% of final rate of earnings
27 divided by the number of parents who qualify for the benefit.
28 Payments shall begin when the parent reaches age 55 or the
29 day following the participant's or annuitant's death,
30 whichever is later, and continue until the parent dies.
31 Remarriage of a parent prior to attainment of age 55 shall
32 disqualify the parent for the receipt of a survivors annuity.
33 (e) In addition to the survivors annuity provided above,
34 each survivors insurance beneficiary shall, upon death of the
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1 participant or annuitant, receive a lump sum payment of
2 $1,000 divided by the number of such beneficiaries.
3 (f) The changes made in this Section by Public Act
4 81-712 pertaining to survivors annuities in cases of
5 remarriage prior to age 55 shall apply to each survivors
6 insurance beneficiary who remarries after June 30, 1979,
7 regardless of the date that the participant or annuitant
8 terminated his employment or died.
9 The change made to this Section by this amendatory Act of
10 the 91st General Assembly, pertaining to remarriage prior to
11 age 55, applies without regard to whether the deceased
12 participant or annuitant was in service on or after the
13 effective date of this amendatory Act of the 91st General
14 Assembly.
15 (g) On January 1, 1981, any person who was receiving a
16 survivors annuity on or before January 1, 1971 shall have the
17 survivors annuity then being paid increased by 1% for each
18 full year which has elapsed from the date the annuity began.
19 On January 1, 1982, any survivor whose annuity began after
20 January 1, 1971, but before January 1, 1981, shall have the
21 survivor's annuity then being paid increased by 1% for each
22 year which has elapsed from the date the survivor's annuity
23 began. On January 1, 1987, any survivor who began receiving a
24 survivor's annuity on or before January 1, 1977, shall have
25 the monthly survivor's annuity increased by $1 for each full
26 year which has elapsed since the date the survivor's annuity
27 began.
28 (h) If the sum of the lump sum and total monthly
29 survivor benefits payable under this Section upon the death
30 of a participant amounts to less than the sum of the death
31 benefits payable under items (2) and (3) of Section 15-141,
32 the difference shall be paid in a lump sum to the beneficiary
33 of the participant who is living on the date that this
34 additional amount becomes payable.
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1 (i) If the sum of the lump sum and total monthly
2 survivor benefits payable under this Section upon the death
3 of an annuitant receiving a retirement annuity or disability
4 retirement annuity amounts to less than the death benefit
5 payable under Section 15-142, the difference shall be paid to
6 the beneficiary of the annuitant who is living on the date
7 that this additional amount becomes payable.
8 (j) Effective on the later of (1) January 1, 1990, or
9 (2) the January 1 on or next after the date on which the
10 survivor annuity begins, if the deceased member died while
11 receiving a retirement annuity, or in all other cases the
12 January 1 nearest the first anniversary of the date the
13 survivor annuity payments begin, every survivors insurance
14 beneficiary shall receive an increase in his or her monthly
15 survivors annuity of 3%. On each January 1 after the initial
16 increase, the monthly survivors annuity shall be increased by
17 3% of the total survivors annuity provided under this
18 Article, including previous increases provided by this
19 subsection. Such increases shall apply to the survivors
20 insurance beneficiaries of each participant and annuitant,
21 whether or not the employment status of the participant or
22 annuitant terminates before the effective date of this
23 amendatory Act of 1990. This subsection (j) also applies to
24 persons receiving a survivor annuity under the portable
25 benefit package.
26 (k) If the Internal Revenue Code of 1986, as amended,
27 requires that the survivors benefits be payable at an age
28 earlier than that specified in this Section the benefits
29 shall begin at the earlier age, in which event, the
30 survivor's beneficiary shall be entitled only to that amount
31 which is equal to the actuarial equivalent of the benefits
32 provided by this Section.
33 (l) The changes made to this Section and Section 15-131
34 by this amendatory Act of 1997, relating to benefits for
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1 certain unmarried children who are full-time students under
2 age 22, apply without regard to whether the deceased member
3 was in service on or after the effective date of this
4 amendatory Act of 1997. These changes do not authorize the
5 repayment of a refund or a re-election of benefits, and any
6 benefit or increase in benefits resulting from these changes
7 is not payable retroactively for any period before the
8 effective date of this amendatory Act of 1997.
9 (Source: P.A. 90-448, eff. 8-16-97; 90-766, eff. 8-14-98.)
10 (40 ILCS 5/15-154) (from Ch. 108 1/2, par. 15-154)
11 Sec. 15-154. Refunds.
12 (a) A participant whose status as an employee is
13 terminated, regardless of cause, or who has been on lay off
14 status for more than 120 days, and who is not on leave of
15 absence, is entitled to a refund of contributions upon
16 application; except that not more than one such refund
17 application may be made during any academic year.
18 Except as set forth in subsections (a-1) and (a-2), the
19 refund shall be the sum of the accumulated normal, additional
20 and survivors insurance contributions, less the amount of
21 interest credited on these contributions each year in excess
22 of 4 1/2% of the amount on which interest was calculated.
23 (a-1) A person who elects, in accordance with the
24 requirements of Section 15-134.5, to participate in the
25 portable benefit package and who becomes a participating
26 employee under that retirement program upon the conclusion of
27 the one-year waiting period applicable to the portable
28 benefit package election shall have his or her refund
29 calculated in accordance with the provisions of subsection
30 (a-2).
31 (a-2) The refund payable to a participant described in
32 subsection (a-1) shall be the sum of the participant's
33 accumulated normal and additional contributions, as defined
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1 in Sections 15-116 and 15-117. If the participant terminates
2 with 5 or more years of service for employment as defined in
3 Section 15-113.1, he or she shall also be entitled to a
4 distribution of employer contributions in an amount equal to
5 the sum of the accumulated normal and additional
6 contributions, as defined in Sections 15-116 and 15-117.
7 (b) Upon acceptance of a refund, the participant
8 forfeits all accrued rights and credits in the System, and if
9 subsequently reemployed, the participant shall be considered
10 a new employee subject to all the qualifying conditions for
11 participation and eligibility for benefits applicable to new
12 employees. If such person again becomes a participating
13 employee and continues as such for 2 years, or is employed by
14 an employer and participates for at least 2 years in the
15 Federal Civil Service Retirement System, all such rights,
16 credits, and previous status as a participant shall be
17 restored upon repayment of the amount of the refund, together
18 with compound interest thereon from the date the refund was
19 received to the date of repayment at the rate of 6% per annum
20 through August 31, 1982, and at the effective rates after
21 that date.
22 (c) If a participant covered under the traditional
23 transitional benefit package has made survivors insurance
24 contributions, but has no survivors insurance beneficiary
25 upon retirement, he or she shall be entitled to elect a
26 refund of the accumulated survivors insurance contributions,
27 or to elect an additional annuity the value of which is equal
28 to the accumulated survivors insurance contributions. This
29 election must be made prior to the date the person's
30 retirement annuity is approved by the Board of Trustees.
31 (d) A participant, upon application, is entitled to a
32 refund of his or her accumulated additional contributions
33 attributable to the additional contributions described in the
34 last sentence of subsection (c) of Section 15-157. Upon the
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1 acceptance of such a refund of accumulated additional
2 contributions, the participant forfeits all rights and
3 credits which may have accrued because of such contributions.
4 (e) A participant who terminates his or her employee
5 status and elects to waive service credit under Section
6 15-154.2, is entitled to a refund of the accumulated normal,
7 additional and survivors insurance contributions, if any,
8 which were credited the participant for this service, or to
9 an additional annuity the value of which is equal to the
10 accumulated normal, additional and survivors insurance
11 contributions, if any; except that not more than one such
12 refund application may be made during any academic year. Upon
13 acceptance of this refund, the participant forfeits all
14 rights and credits accrued because of this service.
15 (f) If a police officer or firefighter receives a
16 retirement annuity under Rule 1 or 3 of Section 15-136, he or
17 she shall be entitled at retirement to a refund of the
18 difference between his or her accumulated normal
19 contributions and the normal contributions which would have
20 accumulated had such person filed a waiver of the retirement
21 formula provided by Rule 4 of Section 15-136.
22 (g) If, at the time of retirement, a participant would
23 be entitled to a retirement annuity under Rule 1, 2, 3 or 4
24 of Section 15-136, or under Section 15-136.4, that exceeds
25 the maximum specified in clause (1) of subsection (c) of
26 Section 15-136, he or she shall be entitled to a refund of
27 the employee contributions, if any, paid under Section 15-157
28 after the date upon which continuance of such contributions
29 would have otherwise caused the retirement annuity to exceed
30 this maximum, plus compound interest at the effective rates.
31 (Source: P.A. 90-448, eff. 8-16-97; 90-576, eff. 3-31-98;
32 90-766, eff. 8-14-98.)
33 (40 ILCS 5/15-158.2)
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1 Sec. 15-158.2. Self-managed plan.
2 (a) Purpose. The General Assembly finds that it is
3 important for colleges and universities to be able to attract
4 and retain the most qualified employees and that in order to
5 attract and retain these employees, colleges and universities
6 should have the flexibility to provide a defined contribution
7 plan as an alternative for eligible employees who elect not
8 to participate in a defined benefit retirement program
9 provided under this Article. Accordingly, the State
10 Universities Retirement System is hereby authorized to
11 establish and administer a self-managed plan, which shall
12 offer participating employees the opportunity to accumulate
13 assets for retirement through a combination of employee and
14 employer contributions that may be invested in mutual funds,
15 collective investment funds, or other investment products and
16 used to purchase annuity contracts, either fixed or variable
17 or a combination thereof. The plan must be qualified under
18 the Internal Revenue Code of 1986.
19 (b) Adoption by employers. Each employer subject to
20 this Article may elect to adopt the self-managed plan
21 established under this Section; this election is irrevocable.
22 An employer's election to adopt the self-managed plan makes
23 available to the eligible employees of that employer the
24 elections described in Section 15-134.5.
25 The State Universities Retirement System shall be the
26 plan sponsor for the self-managed plan and shall prepare a
27 plan document and prescribe such rules and procedures as are
28 considered necessary or desirable for the administration of
29 the self-managed plan. Consistent with its fiduciary duty to
30 the participants and beneficiaries of the self-managed plan,
31 the Board of Trustees of the System may delegate aspects of
32 plan administration as it sees fit to companies authorized to
33 do business in this State, to the employers, or to a
34 combination of both.
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1 (c) Selection of service providers and funding vehicles.
2 The System, in consultation with the employers, shall solicit
3 proposals to provide administrative services and funding
4 vehicles for the self-managed plan from insurance and annuity
5 companies and mutual fund companies, banks, trust companies,
6 or other financial institutions authorized to do business in
7 this State. In reviewing the proposals received and
8 approving and contracting with no fewer than 2 and no more
9 than 7 companies, at least 2 of which must be insurance and
10 annuity companies, the Board of Trustees of the System shall
11 consider, among other things, the following criteria:
12 (1) the nature and extent of the benefits that
13 would be provided to the participants;
14 (2) the reasonableness of the benefits in relation
15 to the premium charged;
16 (3) the suitability of the benefits to the needs
17 and interests of the participating employees and the
18 employer;
19 (4) the ability of the company to provide benefits
20 under the contract and the financial stability of the
21 company; and
22 (5) the efficacy of the contract in the recruitment
23 and retention of employees.
24 The System, in consultation with the employers, shall
25 periodically review each approved company. A company may
26 continue to provide administrative services and funding
27 vehicles for the self-managed plan only so long as it
28 continues to be an approved company under contract with the
29 Board.
30 (d) Employee Direction. Employees who are participating
31 in the program must be allowed to direct the transfer of
32 their account balances among the various investment options
33 offered, subject to applicable contractual provisions. The
34 participant shall not be deemed a fiduciary by reason of
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1 providing such investment direction. A person who is a
2 fiduciary shall not be liable for any loss resulting from
3 such investment direction and shall not be deemed to have
4 breached any fiduciary duty by acting in accordance with that
5 direction. Neither the System nor the employer guarantees
6 any of the investments in the employee's account balances.
7 (e) Participation. An employee eligible to participate
8 in the self-managed plan must make a written election in
9 accordance with the provisions of Section 15-134.5 and the
10 procedures established by the System. Participation in the
11 self-managed plan by an electing employee shall begin on the
12 first day of the first pay period following the later of the
13 date the employee's election is filed with the System or the
14 effective date as of which the employee's employer begins to
15 offer participation in the self-managed plan. Employers may
16 not make the self-managed plan available earlier than January
17 1, 1998. An employee's participation in any other retirement
18 program administered by the System under this Article shall
19 terminate on the date that participation in the self-managed
20 plan begins.
21 An employee who has elected to participate in the
22 self-managed plan under this Section must continue
23 participation while employed in an eligible position, and may
24 not participate in any other retirement program administered
25 by the System under this Article while employed by that
26 employer or any other employer that has adopted the
27 self-managed plan, unless the self-managed plan is terminated
28 in accordance with subsection (i).
29 Participation in the self-managed plan under this Section
30 shall constitute membership in the State Universities
31 Retirement System.
32 A participant under this Section shall be entitled to the
33 benefits of Article 20 of this Code. modified to reflect the
34 following principles:
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1 (1) The amount of any retirement annuities payable
2 under this Section depend solely on the value of the
3 participant's vested account balances and are not subject
4 to a maximum annuity benefit limitation or any adjustment
5 pursuant to the proportional retirement annuity
6 provisions of Article 20. If a participant in the
7 self-managed plan under this Section elects to apply the
8 provisions of Article 20, the dollar amount of the
9 proportional retirement annuity payable from the System
10 shall be deemed to be zero and the provisions of the
11 second paragraph of Section 20-131 shall not apply with
12 respect to the retirement annuity benefits payable to the
13 participant under this Section.
14 (2) For purposes of Section 20-123 of this Code,
15 the self-managed plan shall be treated as if it were
16 provided by a participating system that has no survivor's
17 annuity benefit.
18 (3) Notwithstanding Section 20-125 of this Code,
19 upon reemployment by a participating system of a retired
20 participant in the self-managed plan, the retirement
21 annuity payment made to such participant from any annuity
22 contracts acquired from the participant's self-managed
23 plan account balances shall not be suspended.
24 (f) Establishment of Initial Account Balance. If at the
25 time an employee elects to participate in the self-managed
26 plan he or she has rights and credits in the System due to
27 previous participation in the traditional benefit package,
28 the System shall establish for the employee an opening
29 account balance in the self-managed plan, equal to the amount
30 of contribution refund that the employee would be eligible to
31 receive under Section 15-154 if the employee terminated
32 employment on that date and elected a refund of
33 contributions, except that this hypothetical refund shall
34 include interest at the effective rate for the respective
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1 years. The System shall transfer assets from the defined
2 benefit retirement program to the self-managed plan, as a tax
3 free transfer in accordance with Internal Revenue Service
4 guidelines, for purposes of funding the employee's opening
5 account balance.
6 (g) No Duplication of Service Credit. Notwithstanding
7 any other provision of this Article, an employee may not
8 purchase or receive service or service credit applicable to
9 any other retirement program administered by the System under
10 this Article for any period during which the employee was a
11 participant in the self-managed plan established under this
12 Section.
13 (h) Contributions. The self-managed plan shall be
14 funded by contributions from employees participating in the
15 self-managed plan and employer contributions as provided in
16 this Section.
17 The contribution rate for employees participating in the
18 self-managed plan under this Section shall be equal to the
19 employee contribution rate for other participants in the
20 System, as provided in Section 15-157. This required
21 contribution shall be made as an "employer pick-up" under
22 Section 414(h) of the Internal Revenue Code of 1986 or any
23 successor Section thereof. Any employee participating in the
24 System's traditional benefit package prior to his or her
25 election to participate in the self-managed plan shall
26 continue to have the employer pick up the contributions
27 required under Section 15-157. However, the amounts picked
28 up after the election of the self-managed plan shall be
29 remitted to and treated as assets of the self-managed plan.
30 In no event shall an employee have an option of receiving
31 these amounts in cash. Employees may make additional
32 contributions to the self-managed plan in accordance with
33 procedures prescribed by the System, to the extent permitted
34 under rules prescribed by the System.
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1 The program shall provide for employer contributions to
2 be credited to each self-managed plan participant at a rate
3 of 7.6% of the participating employee's salary, less the
4 amount used by the System to provide disability benefits for
5 the employee. The amounts so credited shall be paid into the
6 participant's self-managed plan accounts in a manner to be
7 prescribed by the System.
8 An amount of employer contribution, not exceeding 1% of
9 the participating employee's salary, shall be used for the
10 purpose of providing the disability benefits of the System to
11 the employee. Prior to the beginning of each plan year under
12 the self-managed plan, the Board of Trustees shall determine,
13 as a percentage of salary, the amount of employer
14 contributions to be allocated during that plan year for
15 providing disability benefits for employees in the
16 self-managed plan.
17 The State of Illinois shall make contributions by
18 appropriations to the System of the employer contributions
19 required for employees who participate in the self-managed
20 plan under this Section. The amount required shall be
21 certified by the Board of Trustees of the System and paid by
22 the State in accordance with Section 15-165. The System
23 shall not be obligated to remit the required employer
24 contributions to any of the insurance and annuity companies,
25 mutual fund companies, banks, trust companies, financial
26 institutions, or other sponsors of any of the funding
27 vehicles offered under the self-managed plan until it has
28 received the required employer contributions from the State.
29 In the event of a deficiency in the amount of State
30 contributions, the System shall implement those procedures
31 described in subsection (c) of Section 15-165 to obtain the
32 required funding from the General Revenue Fund.
33 (i) Termination. The self-managed plan authorized under
34 this Section may be terminated by the System, subject to the
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1 terms of any relevant contracts, and the System shall have no
2 obligation to reestablish the self-managed plan under this
3 Section. This Section does not create a right to continued
4 participation in any self-managed plan set up by the System
5 under this Section. If the self-managed plan is terminated,
6 the participants shall have the right to participate in one
7 of the other retirement programs offered by the System and
8 receive service credit in such other retirement program for
9 any years of employment following the termination.
10 (j) Vesting; Withdrawal; Return to Service. A
11 participant in the self-managed plan becomes vested in the
12 employer contributions credited to his or her accounts in the
13 self-managed plan on the earliest to occur of the following:
14 (1) completion of 5 years of service with an employer
15 described in Section 15-106; (2) the death of the
16 participating employee while employed by an employer
17 described in Section 15-106, if the participant has completed
18 at least 1 1/2 years of service; or (3) the participant's
19 election to retire and apply the reciprocal provisions of
20 Article 20 of this Code.
21 A participant in the self-managed plan who receives a
22 distribution of his or her vested amounts from the
23 self-managed plan while not yet eligible for retirement under
24 this Article (and Article 20, if applicable) upon or after
25 termination of employment shall forfeit all service credit
26 and accrued rights in the System; if subsequently
27 re-employed, the participant shall be considered a new
28 employee. If a former participant again becomes a
29 participating employee (or becomes employed by a
30 participating system under Article 20 of this Code) and
31 continues as such for at least 2 years, all such rights,
32 service credits, and previous status as a participant shall
33 be restored upon repayment of the amount of the distribution,
34 without interest.
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1 (k) Benefit amounts. If an employee who is vested in
2 employer contributions terminates employment, the employee
3 shall be entitled to a benefit which is based on the account
4 values attributable to both employer and employee
5 contributions and any investment return thereon.
6 If an employee who is not vested in employer
7 contributions terminates employment, the employee shall be
8 entitled to a benefit based solely on the account values
9 attributable to the employee's contributions and any
10 investment return thereon, and the employer contributions and
11 any investment return thereon shall be forfeited. Any
12 employer contributions which are forfeited shall be held in
13 escrow by the company investing those contributions and shall
14 be used as directed by the System for future allocations of
15 employer contributions or for the restoration of amounts
16 previously forfeited by former participants who again become
17 participating employees.
18 (Source: P.A. 89-430, eff. 12-15-95; 90-448, eff. 8-16-97;
19 90-576, eff. 3-31-98; 90-766, eff. 8-14-98.)
20 (40 ILCS 5/15-181) (from Ch. 108 1/2, par. 15-181)
21 Sec. 15-181. Duties of employers.
22 (a) Each employer, in preparing payroll vouchers for
23 participating employees, shall indicate, in addition to other
24 information: (1) the amount of employee contributions and
25 survivors insurance contributions required under Section
26 15-157, (2) the gross earnings payable to each employee, and
27 (3) the total of all contributions required under Section
28 15-157. An additional certified copy of each payroll
29 certified by each employer shall be forwarded along with the
30 original payroll to the Director of Central Management
31 Services, State Comptroller, and other officer receiving the
32 original certified payroll for transmittal to the board.
33 (b) Each employer, in drawing warrants or checks against
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1 trust or federal funds for items of salary on payroll
2 vouchers certified by employers, shall draw such warrants or
3 checks to participating employees for the amount of cash
4 salary or wages specified for the period, and shall draw a
5 warrant or check to this system for the total of the
6 contributions required under Section 15-157. The warrant or
7 check drawn to this system, together with the additional copy
8 of the payroll supplied by the employer, shall be transmitted
9 immediately to the board.
10 (c) The City of Champaign and the City of Urbana, as
11 employers of persons who participate in this System pursuant
12 to subsection (h) of Section 15-107, shall each collect and
13 transmit to the System from each payroll the employee
14 contributions required under Section 15-157, together with
15 such payroll documentation as the Board may require, at the
16 time that the payroll is paid.
17 (Source: P.A. 90-576, eff. 3-31-98.).
18 (40 ILCS 5/16-133) (from Ch. 108 1/2, par. 16-133)
19 Sec. 16-133. Retirement annuity; amount.
20 (a) The amount of the retirement annuity shall be the
21 larger of the amounts determined under paragraphs (A) and (B)
22 below:
23 (A) An amount consisting of the sum of the
24 following:
25 (1) An amount that can be provided on an
26 actuarially equivalent basis by the member's
27 accumulated contributions at the time of retirement;
28 and
29 (2) The sum of (i) the amount that can be
30 provided on an actuarially equivalent basis by the
31 member's accumulated contributions representing
32 service prior to July 1, 1947, and (ii) the amount
33 that can be provided on an actuarially equivalent
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1 basis by the amount obtained by multiplying 1.4
2 times the member's accumulated contributions
3 covering service subsequent to June 30, 1947; and
4 (3) If there is prior service, 2 times the
5 amount that would have been determined under
6 subparagraph (2) of paragraph (A) above on account
7 of contributions which would have been made during
8 the period of prior service creditable to the member
9 had the System been in operation and had the member
10 made contributions at the contribution rate in
11 effect prior to July 1, 1947.
12 (B) An amount consisting of the greater of the
13 following:
14 (1) For creditable service earned before July
15 1, 1998 that has not been augmented under Section
16 16-129.1: 1.67% of final average salary for each of
17 the first 10 years of creditable service, 1.90% of
18 final average salary for each year in excess of 10
19 but not exceeding 20, 2.10% of final average salary
20 for each year in excess of 20 but not exceeding 30,
21 and 2.30% of final average salary for each year in
22 excess of 30; and
23 For creditable service earned on or after July
24 1, 1998 by a member who has at least 24 years of
25 creditable service on July 1, 1998 and who does not
26 elect to augment service under Section 16-129.1:
27 2.2% of final average salary for each year of
28 creditable service earned on or after July 1, 1998
29 but before the member reaches a total of 30 years of
30 creditable service and 2.3% of final average salary
31 for each year of creditable service earned on or
32 after July 1, 1998 and after the member reaches a
33 total of 30 years of creditable service; and
34 For all other creditable service: 2.2% of
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1 final average salary for each year of creditable
2 service; or
3 (2) 1.5% of final average salary for each year
4 of creditable service plus the sum $7.50 for each of
5 the first 20 years of creditable service.
6 The amount of the retirement annuity determined under
7 this paragraph (B) shall be reduced by 1/2 of 1% for each
8 month that the member is less than age 60 at the time the
9 retirement annuity begins. However, this reduction shall
10 not apply (i) if the member has at least 35 years of
11 creditable service, or (ii) if the member retires on
12 account of disability under Section 16-149.2 of this
13 Article with at least 20 years of creditable service.
14 (b) For purposes of this Section, final average salary
15 shall be the average salary for the highest 4 consecutive
16 years within the last 10 years of creditable service as
17 determined under rules of the board. The minimum final
18 average salary shall be considered to be $2,400 per year.
19 In the determination of final average salary for members
20 other than elected officials and their appointees when such
21 appointees are allowed by statute, that part of a member's
22 salary for any year beginning after June 30, 1979 which
23 exceeds the member's annual full-time salary rate with the
24 same employer for the preceding year by more than 20% shall
25 be excluded. The exclusion shall not apply in any year in
26 which the member's creditable earnings are less than 50% of
27 the preceding year's mean salary for downstate teachers as
28 determined by the survey of school district salaries provided
29 in Section 2-3.103 of the School Code.
30 (c) In determining the amount of the retirement annuity
31 under paragraph (B) of this Section, a fractional year shall
32 be granted proportional credit.
33 (d) The retirement annuity determined under paragraph
34 (B) of this Section shall be available only to members who
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1 render teaching service after July 1, 1947 for which member
2 contributions are required, and to annuitants who re-enter
3 under the provisions of Section 16-150.
4 (e) The maximum retirement annuity provided under
5 paragraph (B) of this Section shall be 75% of final average
6 salary.
7 (f) A member retiring after the effective date of this
8 amendatory Act of 1998 shall receive a pension equal to 75%
9 of final average salary if the member is qualified to receive
10 a retirement annuity equal to at least 74.6% of final average
11 salary under this Article or as proportional annuities under
12 Article 20 of this Code.
13 (Source: P.A. 90-582, eff. 5-27-98; 91-17, eff. 6-4-99.)
14 (40 ILCS 5/16-135) (from Ch. 108 1/2, par. 16-135)
15 Sec. 16-135. Supplementary retirement annuity.
16 (a) An annuitant who is receiving a retirement annuity
17 on June 30, 1961 of less than $50 for each year of creditable
18 service forming the basis of the retirement annuity shall
19 have his or her retirement annuity increased to $50 per year
20 for each year of such creditable service, but not exceeding a
21 total annual retirement annuity of $2,250.
22 (b) In order to be entitled to the increase in
23 retirement annuity provided under this Section, an annuitant
24 is required to make an additional contribution of $5 for each
25 year of creditable service, not to exceed 45 years together
26 with interest at the rate of 3% per annum from August 25,
27 1961.
28 (c) The supplementary retirement annuity provided under
29 this Section shall begin to accrue on the first of the month
30 following receipt of the required contribution from the
31 annuitant and shall continue to be paid only to the extent
32 that funds are available in the Supplementary Annuity Reserve
33 established under Section 16-184.
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1 (Source: P.A. 83-1440.)
2 (40 ILCS 5/16-136.4) (from Ch. 108 1/2, par. 16-136.4)
3 Sec. 16-136.4. Single-sum retirement benefit.
4 (a) A member who has less than 5 years of creditable
5 service shall be entitled, upon written application to the
6 board, to receive a retirement benefit payable in a single
7 sum upon or after the member's attainment of age 65.
8 However, the benefit shall not be paid while the member is
9 employed as a teacher in the schools included under this
10 Article or Article 17, unless the System is required by
11 federal law to make payment due to the member's age.
12 (b) The retirement benefit shall consist of a single sum
13 that is the actuarial equivalent of a life annuity consisting
14 of 1.67% of the member's final average salary for each year
15 of creditable service. In determining the amount of the
16 benefit, a fractional year shall be granted proportional
17 credit.
18 For the purposes of this Section, final average salary
19 shall be the average salary of the member's highest 4
20 consecutive years of service as determined under rules of the
21 board. For a member with less than 4 consecutive years of
22 service, final average salary shall be the average salary
23 during the member's entire period of service. In the
24 determination of final average salary for members other than
25 elected officials and their appointees when such appointees
26 are allowed by statute, that part of a member's salary which
27 exceeds the member's annual full-time salary rate with the
28 same employer for the preceding year by more than 20% shall
29 be excluded. The exclusion shall not apply in any year in
30 which the member's creditable earnings are less than 50% of
31 the preceding year's mean salary for downstate teachers as
32 determined by the survey of school district salaries provided
33 in Section 2-3.103 of the School Code.
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1 (c) The retirement benefit determined under this Section
2 shall be available to all members who render teaching service
3 after July 1, 1947 for which member contributions are
4 required.
5 (d) Upon acceptance of the retirement benefit, all of
6 the member's accrued rights and credits in the System are
7 forfeited. Receipt of a single-sum retirement benefit under
8 this Section does not make a person an "annuitant" for the
9 purposes of this Article, nor a "benefit recipient" for the
10 purposes of Sections 16-153.1 through 16-153.4.
11 (Source: P.A. 87-11.)
12 (40 ILCS 5/16-138) (from Ch. 108 1/2, par. 16-138)
13 Sec. 16-138. Refund of contributions upon death of
14 member or annuitant. Upon the death of a member or
15 annuitant, the following amount shall be payable (i) to a
16 beneficiary, nominated by written designation of the member
17 or annuitant filed with the system, or (ii) if no beneficiary
18 is nominated, to the surviving spouse, or (iii) if no
19 beneficiary is nominated and there is no surviving spouse, to
20 the decedent's estate, upon receipt of proper proof of death:
21 (1) Upon the death of a member, an amount consisting of
22 the sum of the following: (A) the member's accumulated
23 contributions; (B) the sum of the contributions made by the
24 member toward the cost of the automatic increase in annuity
25 under Section 16-152, without interest thereon; and (C)
26 contributions made by the member toward prior service,
27 without interest thereon.
28 (2) Upon the death of an annuitant, unless a
29 reversionary annuity is payable under Section 16-136, an
30 amount determined by subtracting the total amount of monthly
31 annuity payments received as a result of the deceased
32 annuitant's retirement from the sum of: (A) the accumulated
33 contributions at retirement; (B) the sum of the contributions
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1 made by the deceased toward the cost of the automatic
2 increase in annuity under Section 16-151, without interest
3 thereon; and (C) any contributions made by the deceased for
4 prior service or other purposes, exclusive of contributions
5 toward the cost of the automatic increase in annuity, without
6 interest thereon.
7 (Source: P.A. 83-1440.)
8 (40 ILCS 5/16-140) (from Ch. 108 1/2, par. 16-140)
9 Sec. 16-140. Survivors' benefits - definitions.
10 (a) For the purpose of Sections 16-138 through 16-143.2,
11 the following terms shall have the following meanings, unless
12 the context otherwise requires:
13 (1) "Average salary": the average salary for the
14 highest 4 consecutive years within the last 10 years of
15 creditable service immediately preceding date of death or
16 retirement, whichever is applicable, or the average
17 salary for the total creditable service if service is
18 less than 4 years.
19 (2) "Member": any teacher included in the
20 membership of the system. However, a teacher who becomes
21 an annuitant of the system or a teacher whose services
22 terminate after 20 years of service from any cause other
23 than retirement is considered a member, subject to the
24 conditions and limitations stated in this Article.
25 (3) "Dependent beneficiary": (A) a surviving spouse
26 of a member or annuitant who was married to the member or
27 annuitant for the 12 month period immediately preceding
28 and on the date of death of such member or annuitant,
29 except where a child is born of such marriage, in which
30 case the qualifying period shall not be applicable; (A-1)
31 a surviving spouse of a member or annuitant who (i) was
32 married to the member or annuitant on the date of the
33 member or annuitant's death, (ii) was married to the
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1 member or annuitant for a period of at least 12 months
2 (but not necessarily the 12 months immediately preceding
3 the member or annuitant's death), and (iii) first applied
4 for a survivor's benefit before April 1, 1997, and (iv)
5 has not received a benefit under subsection (a) of
6 Section 16-141 or paragraph (1) of Section 16-142; (B) an
7 eligible child of a member or annuitant; and (C) a
8 dependent parent.
9 Unless otherwise designated by the member,
10 eligibility for benefits shall be in the order named,
11 except that a dependent parent shall be eligible only if
12 there is no other dependent beneficiary. Any benefit to
13 be received by or paid to a dependent beneficiary to be
14 determined under this paragraph as provided in Sections
15 16-141 and 16-142 may be received by or paid to a trust
16 established for such dependent beneficiary if such
17 dependent beneficiary is living at the time such benefit
18 would be received by or paid to such trust.
19 (4) "Eligible child": an unmarried natural or
20 adopted child of the member or annuitant under age 18
21 (age 22 if a full-time student). An unmarried natural or
22 adopted child, regardless of age, who is dependent by
23 reason of a physical or mental disability, except any
24 such child receiving benefits under Article III of the
25 Illinois Public Aid Code, is eligible for so long as such
26 physical or mental disability continues. An adopted
27 child, however, is eligible only if the proceedings for
28 adoption were finalized while the child was a minor.
29 For purposes of this subsection, "disability" means
30 an inability to engage in any substantial gainful
31 activity by reason of any medically determinable physical
32 or mental impairment which can be expected to result in
33 death or which has lasted or can be expected to last for
34 a continuous period of not less than 12 months.
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1 The changes made to this Section by Public Act
2 90-448, relating to benefits for certain unmarried
3 children who are full-time students under age 22, apply
4 without regard to whether the deceased member was in
5 service on or after the effective date of that Act.
6 These changes do not authorize the repayment of a refund
7 or a re-election of benefits, and any benefit or increase
8 in benefits resulting from these changes is not payable
9 retroactively for any period before the effective date of
10 that Act.
11 (5) "Dependent parent": a parent who was receiving
12 at least 1/2 of his or her support from a member or
13 annuitant for the 12-month period immediately preceding
14 and on the date of such member's or annuitant's death,
15 provided however, that such dependent status terminates
16 upon a member's acceptance of a refund for survivor
17 benefit contributions as provided under Section 16-142.
18 (6) "Non-dependent beneficiary": any person,
19 organization or other entity designated by the member who
20 does not qualify as a dependent beneficiary.
21 (7) "In service": the condition of a member being
22 in receipt of salary as a teacher at any time within 12
23 months immediately before his or her death, being on
24 leave of absence for which the member, upon return to
25 teaching, would be eligible to purchase service credit
26 under subsection (b)(5) of Section 16-127, or being in
27 receipt of a disability or occupational disability
28 benefit. This term does not include any annuitant or
29 member who previously accepted a refund of survivor
30 benefit contributions under paragraph (1) of Section
31 16-142 unless the conditions specified in subsection (b)
32 of Section 16-143.2 are met.
33 (b) The change to this Section made by Public Act 90-511
34 applies without regard to whether the deceased member or
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1 annuitant was in service on or after the effective date of
2 that Act.
3 The change to this Section made by this amendatory Act of
4 the 91st General Assembly applies without regard to whether
5 the deceased member or annuitant was in service on or after
6 the effective date of this amendatory Act.
7 (Source: P.A. 89-430, eff. 12-15-95; 90-448, eff. 8-16-97;
8 90-511, eff. 8-22-97; 90-655, eff. 7-30-98.)
9 (40 ILCS 5/16-143) (from Ch. 108 1/2, par. 16-143)
10 Sec. 16-143. Survivors' benefits - other conditions and
11 limitations. The benefits provided under Sections 16-141 and
12 16-142, shall be subject to the following further conditions
13 and limitations:
14 (1) The period during which a member was in receipt of a
15 disability or occupational disability benefit shall be
16 considered as creditable service at the annual salary rate on
17 which the member last made contributions.
18 (2) All service prior to July 24, 1959, for which
19 creditable service is granted towards a retirement annuity
20 shall be considered as creditable service.
21 (3) No benefits shall be payable unless a member, or a
22 disabled member, returning to service, has made contributions
23 to the system for at least one month after July 24, 1959,
24 except that an annuitant must have contributed to the system
25 for at least 1 year of creditable service after July 24,
26 1959.
27 (4) Creditable service under the State Employees'
28 Retirement System of Illinois, the State Universities
29 Retirement System and the Public School Teachers' Pension and
30 Retirement Fund of Chicago shall be considered in determining
31 whether the member has met the creditable service
32 requirement.
33 (5) If an eligible beneficiary qualifies for a
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1 survivors' benefit because of pension credits established by
2 the participant or annuitant in another system covered by
3 Article 20, and the combined survivors' benefits exceed the
4 highest survivors' benefit payable by either system based
5 upon the combined pension credits, the survivors' benefit
6 payable by this system shall be reduced to that amount which
7 when added to the survivors' benefit payable by the other
8 system would equal this highest survivors' benefit. If the
9 other system has a similar provision for adjustment of the
10 survivors' benefit, the respective proportional survivors'
11 benefits shall be reduced proportionately according to the
12 ratio which the amount of each proportional survivors'
13 benefit bears to the aggregate of all proportional survivors'
14 benefits. If a survivors' benefit is payable by another
15 system covered by Article 20, and the survivor elects to
16 waive the monthly survivors' benefit and accept a lump sum
17 payment or death benefit in lieu of the monthly survivors'
18 benefit, this system shall, for the purpose of adjusting the
19 monthly survivors' benefit under this paragraph, assume that
20 the survivor had been entitled to a monthly survivors'
21 benefit which, in accordance with actuarial tables of this
22 system, is the actuarial equivalent of the amount of the lump
23 sum payment or death benefit.
24 (6) Remarriage of a surviving spouse prior to attainment
25 of age 55 that occurs before the effective date of this
26 amendatory Act of the 91st General Assembly shall terminate
27 his or her survivors' benefits.
28 The change made to this item (6) by this amendatory Act
29 of the 91st General Assembly applies without regard to
30 whether the deceased member or annuitant was in service on or
31 after the effective date of this amendatory Act of the 91st
32 General Assembly.
33 (7) The benefits payable to an eligible child shall
34 terminate when the eligible child marries, dies, or attains
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1 age 18 (age 22 if a full-time student); except that benefits
2 payable to a dependent disabled eligible child shall
3 terminate only when the eligible child dies or ceases to be
4 disabled.
5 (Source: P.A. 90-448, eff. 8-16-97.)
6 (40 ILCS 5/16-149.4) (from Ch. 108 1/2, par. 16-149.4)
7 Sec. 16-149.4. Supplementary disability retirement
8 annuity.
9 (a) An annuitant receiving a disability retirement
10 annuity on June 30, 1961 of less than $50 for each year of
11 creditable service forming the basis of the disability
12 retirement annuity shall have his or her disability
13 retirement annuity increased to $50 per year for each year of
14 such creditable service, with a minimum annuity of $1,000 per
15 year.
16 (b) In order to be entitled to the increase in
17 disability retirement annuity provided under this Section, an
18 annuitant is required to make an additional contribution of
19 $5 for each year of creditable service, together with
20 interest at the rate of 3% per annum from August 25, 1961.
21 (c) The supplementary retirement annuity provided under
22 this Section shall begin to accrue on the first of the month
23 following receipt of the required contributions from the
24 annuitant and shall continue to be paid only to the extent
25 that funds are available in the Supplementary Annuity Reserve
26 established under Section 16-184.
27 (Source: P.A. 83-1440.)
28 (40 ILCS 5/16-184) (from Ch. 108 1/2, par. 16-184)
29 Sec. 16-184. Supplementary Annuity Reserve.
30 (a) Except as provided in subsection (b), a reserve to
31 be known as the Supplementary Annuity Reserve is established
32 for the purpose of crediting funds received and charging
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1 disbursements made for supplementary annuities under Section
2 16-135 and Section 16-149.4.
3 This Reserve shall be credited with:
4 (1) The total of all contributions made by
5 annuitants to qualify for supplementary annuities.
6 (2) Amounts contributed to the System by the State
7 of Illinois that are sufficient to assure payment of the
8 supplementary annuities.
9 (3) Regular interest computed annually on the
10 average balance in this reserve.
11 This Reserve shall be charged with all supplemental
12 annuity payments under Section 16-135 and Section 16-149.4.
13 (b) On the July 1 next occurring after the effective
14 date of this amendatory Act of the 91st General Assembly, the
15 Supplemental Annuity Reserve is abolished and any remaining
16 balance After all supplementary annuity payments have been
17 completed, any remaining funds shall be transferred from that
18 this Reserve to the Employer's Contribution Reserve.
19 (Source: P.A. 88-593, eff. 8-22-94.)
20 (40 ILCS 5/17-106) (from Ch. 108 1/2, par. 17-106)
21 Sec. 17-106. Contributor, member or teacher.
22 "Contributor", "member" or "teacher": All members of the
23 teaching force of the city, including principals, assistant
24 principals, the general superintendent of schools, deputy
25 superintendents of schools, associate superintendents of
26 schools, assistant and district superintendents of schools,
27 members of the Board of Examiners, all other persons whose
28 employment requires a teaching certificate issued under the
29 laws governing the certification of teachers, any
30 educational, administrative, professional, or other staff
31 employed in a charter school operating in compliance with the
32 Charter Schools Law who is certified under the law governing
33 the certification of teachers, and employees of the Board,
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1 but excluding persons contributing concurrently to any other
2 public employee pension system in Illinois for the same
3 employment or receiving retirement pensions under another
4 Article of this Code for that same employment (unless the
5 person's eligibility to participate in that other pension
6 system arises from the holding of an elective public office,
7 and the person has held that public office for at least 10
8 years), persons employed on an hourly basis, and persons
9 receiving pensions from the Fund who are employed temporarily
10 by an Employer for 100 days or less in any school year and
11 not on an annual basis.
12 In the case of a person who has been making contributions
13 and otherwise participating in this Fund prior to the
14 effective date of this amendatory Act of the 91st General
15 Assembly 1991, and whose right to participate in the Fund is
16 established or confirmed by this amendatory Act, such prior
17 participation in the Fund, including all contributions
18 previously made and service credits previously earned by the
19 person, are hereby validated.
20 (Source: P.A. 89-450, eff. 4-10-96; 90-32, eff. 6-27-97;
21 90-566, eff. 1-2-98.)
22 (40 ILCS 5/17-117) (from Ch. 108 1/2, par. 17-117)
23 Sec. 17-117. Disability retirement pension.
24 (a) The conditions prescribed in items 1 and 2 in
25 Section 17-116 for computing service retirement pensions
26 shall apply in the computation of disability retirement
27 pensions.
28 (1) Each teacher retired or retiring after 10 years
29 of service and with less than 20 years of service because
30 of permanent disability not incurred as a proximate
31 result of the performance of duty shall receive a
32 disability retirement pension equal to 2.2% of average
33 salary for each year of service after June 30, 1998 and
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1 for each year of service on or before that date that has
2 been augmented under Section 17-119.1 and 1 2/3% of
3 average salary for each year of other service.
4 (2) If the total service is 20 years and less than
5 25 years and the teacher's age is under 55, the
6 disability retirement pension shall equal a service
7 retirement pension discounted 1/2 of 1% for each month
8 the age of the contributor is less than 55 down to a
9 minimum age of 50 years, provided the disability
10 retirement pension so computed shall not be less than the
11 amount payable under paragraph 1.
12 (3) If the total service is 20 years or more and
13 the teacher has attained age 55, and is under age 60, a
14 disability retirement pension shall equal a service
15 retirement pension without discount.
16 (4) If the total service is 25 years or more
17 regardless of age, a disability pension shall equal a
18 service retirement pension without discount.
19 (5) If the total service is 20 years or more and
20 the teacher is age 60 or over, a service retirement
21 pension shall be payable.
22 (b) For disability retirement pensions, the following
23 further conditions shall apply:
24 (1) Written application shall be submitted within 3
25 years from the date of separation.
26 (2) The applicant shall submit to examination by
27 physicians appointed by the Board within one year from
28 the date of their appointment.
29 (3) Two physicians, appointed by the Board, shall
30 declare the applicant to be suffering from a disability
31 which wholly and presumably permanently incapacitates him
32 for teaching or for service as an employee of the Board.
33 In the event of disagreement by the physicians, a third
34 physician, appointed by the Board, shall declare the
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1 applicant wholly and presumably permanently
2 incapacitated.
3 (c) Disability retirement pensions shall begin on the
4 effective date of resignation or the day following the close
5 of the payroll period for which credit was validated,
6 whichever is later.
7 (Source: P.A. 90-32; eff. 6-27-97; 90-566, eff. 1-2-98.)
8 (40 ILCS 5/17-133) (from Ch. 108 1/2, par. 17-133)
9 Sec. 17-133. Contributions for periods of outside and
10 other service. Regularly certified and appointed teachers
11 who desire to have the following described services credited
12 for pension purposes shall submit to the Board evidence
13 thereof and pay into the Fund the amounts prescribed herein:
14 1. For teaching service by a certified teacher in
15 the public schools of the several states or in schools
16 operated by or under the auspices of the United States, a
17 teacher shall pay the contributions at the rates in force
18 (a) on the date of appointment as a regularly certified
19 teacher after salary adjustments are completed, or (b) at
20 the time of reappointment after salary adjustments are
21 completed, whichever is later, but not less than $450 per
22 year of service. Upon the Board's approval of such
23 service and the payment of the required contributions,
24 service credit of not more than 10 years shall be
25 granted.
26 2. For service as a playground instructor in public
27 school playgrounds, teachers shall pay the contributions
28 prescribed in this Article (a) at the time of
29 appointment, as a regularly certified teacher after
30 salary adjustments are completed, or (b) on return to
31 service as a full time regularly certified teacher, as
32 the case may be, provided such rates or amounts shall not
33 be less than $450 per year.
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1 3. For service prior to September 1, 1955, in the
2 public schools of the City as a substitute, evening
3 school or temporary teacher, or for service as an
4 Americanization teacher prior to December 31, 1955,
5 teachers shall pay the contributions prescribed in this
6 Article (a) at the time of appointment, as a regularly
7 certified teacher after salary adjustments are completed,
8 (b) on return to service as a full time regularly
9 certified teacher, as the case may be, provided such
10 rates or amounts shall not be less than $450 per year;
11 and provided further that for teachers employed on or
12 after September 1, 1953, rates shall not include
13 contributions for widows' pensions if the service
14 described in this sub-paragraph 3 was rendered before
15 that date. Any teacher entitled to repay a refund of
16 contributions under Section 17-126 126 of this Article
17 may validate service described in this paragraph by
18 payment of the amounts prescribed herein, together with
19 the repayment of the refund, provided that if such
20 creditable service was the last service rendered in the
21 public schools of the City and is not automatically
22 reinstated by repayment of the refund, the rates or
23 amounts shall not be less than $450 per year.
24 4. For service after June 30, 1982 as a member of
25 the Board of Education, if required to resign from an
26 administrative or teaching position in order to qualify
27 as a member of the Board of Education.
28 5. For service during the 1986-87 school year as a
29 teacher on a special leave of absence with full loss of
30 salary, teaching for an agency under contract to the
31 Board of Education, if the teacher returned to employment
32 in September, 1987. For service under this item 5, the
33 teacher must pay the contributions at the rates in force
34 at the completion of the leave period.
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1 For service described in sub-paragraphs 1, 2 and 3 of
2 this Section, interest shall be charged beginning one year
3 after the effective date of appointment or reappointment.
4 Effective September 1, 1974, the interest rate to be
5 charged by the Fund on contributions provided in
6 sub-paragraphs 1, 2, 3 and 4 shall be 5% per annum compounded
7 annually.
8 (Source: P.A. 90-566, eff. 1-2-98.)
9 (40 ILCS 5/17-150) (from Ch. 108 1/2, par. 17-150)
10 Sec. 17-150. Suspension of pensions. Until July 1,
11 2000, pension payments, exclusive of those made to the
12 survivors of persons who were contributors, shall be
13 suspended while the recipient is employed in a teaching
14 capacity, outside the City in which the Fund exists, by any
15 public school or charter school in this State, unless the
16 recipient is so employed temporarily as a substitute teacher
17 for 100 days or less in a school year or on an hourly basis
18 with earnings not in excess of the sum payable for 100 days'
19 substitute service.
20 Beginning July 1, 2000, pension payments shall no longer
21 be suspended while the recipient is employed in a teaching
22 capacity, outside the City in which the Fund exists, by any
23 public school or charter school in this State, and any
24 pension that is in a state of suspension under this Section
25 on July 1, 2000 shall be reinstated on that date.
26 Notwithstanding Section 17-157, the change to this Section
27 made by this amendatory Act of the 91st General Assembly
28 applies without regard to whether or not the pensioner was in
29 service on or after the effective date of this amendatory
30 Act.
31 (Source: P.A. 90-566, eff. 1-2-98.)
32 (40 ILCS 5/18-128) (from Ch. 108 1/2, par. 18-128)
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1 Sec. 18-128. Survivor's annuities; Conditions for
2 payment.
3 (a) A survivor's annuity shall be payable upon the death
4 of a participant while in service after June 30, 1967 if the
5 participant had at least 1 1/2 years of service credit as a
6 judge, or upon death of an inactive participant who had
7 terminated service as a judge on or after June 30, 1967 with
8 at least 10 years of service credit, or upon the death of an
9 annuitant whose retirement becomes effective after June 30,
10 1967.
11 (b) The surviving spouse of a deceased participant or
12 annuitant is entitled to a survivor's annuity beginning at
13 the date of death if the surviving spouse (1) has been
14 married to the participant or annuitant for a continuous
15 period of at least one year immediately preceding the date of
16 death, and (2) has attained age 50, or, regardless of age,
17 has in his or her care an eligible child or children of the
18 decedent as provided under subsections (c) and (d) of this
19 Section. If the surviving spouse has no such child in his or
20 her care and has not attained age 50, the survivor's annuity
21 shall begin upon attainment of age 50. When all such
22 children of the deceased who are in the care of the surviving
23 spouse no longer qualify for benefits and the surviving
24 spouse is under 50 years of age, the surviving spouse's
25 annuity shall be suspended until he or she attains age 50.
26 (c) A child's annuity is payable for an unmarried child
27 of an annuitant or participant so long as the child is (i)
28 under age 18, (ii) under age 22 and a full time student, or
29 (iii) age 18 or over if dependent by reason of physical or
30 mental disability. Disability means inability to engage in
31 any substantial gainful activity by reason of any medically
32 determinable physical or mental impairment which can expected
33 to result in death or which has lasted or can be expected to
34 last for a continuous period of not less than 12 months.
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1 (d) Adopted children shall have the same status as
2 natural children, but only if the proceedings for adoption
3 were commenced at least 6 months prior to the death of the
4 annuitant or participant.
5 (e) Remarriage prior to attainment of age 50 that occurs
6 before the effective date of this amendatory Act of the 91st
7 General Assembly shall disqualify a surviving spouse for the
8 receipt of a survivor's annuity.
9 The change made to this subsection by this amendatory Act
10 of the 91st General Assembly applies without regard to
11 whether the deceased judge was in service on or after the
12 effective date of this amendatory Act of the 91st General
13 Assembly.
14 (f) The changes made in survivor's annuity provisions by
15 Public Act 82-306 shall apply to the survivors of a deceased
16 participant or annuitant whose death occurs on or after
17 August 21, 1981 and whose service as a judge terminates on or
18 after July 1, 1967.
19 The provision of child's annuities for dependent students
20 under age 22 by this amendatory Act of 1991 shall apply to
21 all eligible students beginning January 1, 1992, without
22 regard to whether the deceased judge was in service on or
23 after the effective date of this amendatory Act.
24 (Source: P.A. 87-794.)
25 (40 ILCS 5/20-121) (from Ch. 108 1/2, par. 20-121)
26 Sec. 20-121. Calculation of proportional retirement
27 annuities. Upon retirement of the employee, a proportional
28 retirement annuity shall be computed by each participating
29 system in which pension credit has been established on the
30 basis of pension credits under each system. The computation
31 shall be in accordance with the formula or method prescribed
32 by each participating system which is in effect at the date
33 of the employee's latest withdrawal from service covered by
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1 any of the systems in which he has pension credits which he
2 elects to have considered under this Article. However, the
3 amount of any retirement annuity payable under the
4 self-managed plan established under Section 15-158.2 of this
5 Code depends solely on the value of the participant's vested
6 account balances and is not subject to any proportional
7 adjustment under this Section.
8 Combined pension credit under all retirement systems
9 subject to this Article shall be considered in determining
10 whether the minimum qualification has been met and the
11 formula or method of computation which shall be applied. If
12 a system has a step-rate formula for calculation of the
13 retirement annuity, pension credits covering previous service
14 which have been established under another system shall be
15 considered in determining which range or ranges of the
16 step-rate formula are to be applicable to the employee.
17 Interest on pension credit shall continue to accumulate
18 in accordance with the provisions of the law governing the
19 retirement system in which the same has been established
20 during the time an employee is in the service of another
21 employer, on the assumption such employee, for interest
22 purposes for pension credit, is continuing in the service
23 covered by such retirement system.
24 (Source: P.A. 79-782.)
25 (40 ILCS 5/20-123) (from Ch. 108 1/2, par. 20-123)
26 Sec. 20-123. Survivor's annuity. The provisions
27 governing a retirement annuity shall be applicable to a
28 survivor's annuity. Appropriate credits shall be established
29 for survivor's annuity purposes in those participating
30 systems which provide survivor's annuities, according to the
31 same conditions and subject to the same limitations and
32 restrictions herein prescribed for a retirement annuity. If
33 a participating system has no survivor's annuity benefit, or
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1 if the survivor's annuity benefit under that system is
2 waived, pension credit established in that this system shall
3 not be considered in determining eligibility for or the
4 amount of the survivor's annuity which may be payable by any
5 other participating system.
6 For persons who participate in the self-managed plan
7 established under Section 15-158.2 or the portable benefit
8 package established under Section 15-136.4, pension credit
9 established under Article 15 may be considered in determining
10 eligibility for or the amount of the survivor's annuity that
11 is payable by any other participating system, but pension
12 credit established in any other system shall not result in
13 any right to a survivor's annuity under the Article 15
14 system.
15 (Source: P.A. 79-782.)
16 (40 ILCS 5/20-124) (from Ch. 108 1/2, par. 20-124)
17 Sec. 20-124. Maximum benefits. In no event shall the
18 combined retirement or survivors annuities exceed the highest
19 annuity which would have been payable by any participating
20 system in which the employee has pension credits, if all of
21 his pension credits had been validated in that system.
22 If the combined annuities should exceed the highest
23 maximum as determined in accordance with this Section, the
24 respective annuities shall be reduced proportionately
25 according to the ratio which the amount of each proportional
26 annuity bears to the aggregate of all such annuities.
27 In the case of a participant in the self-managed plan
28 established under Section 15-158.2 of this Code to whom the
29 provisions of this Article apply:
30 (i) For purposes of calculating the combined
31 retirement annuity and the proportionate reduction, if
32 any, in a retirement annuity other than one payable under
33 the self-managed plan, the amount of the Article 15
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1 retirement annuity shall be deemed to be the highest
2 annuity to which the annuitant would have been entitled
3 if he or she had participated in the traditional benefit
4 package as defined in Section 15-103.1 rather than the
5 self-managed plan.
6 (ii) For purposes of calculating the combined
7 survivor's annuity and the proportionate reduction, if
8 any, in a survivor's annuity other than one payable under
9 the self-managed plan, the amount of the Article 15
10 survivor's annuity shall be deemed to be the highest
11 survivor's annuity to which the survivor would have been
12 entitled if the deceased employee had participated in the
13 traditional benefit package as defined in Section
14 15-103.1 rather than the self-managed plan.
15 (iii) Benefits payable under the self-managed plan
16 are not subject to proportionate reduction under this
17 Section.
18 (Source: P.A. 79-782.)
19 (40 ILCS 5/20-125) (from Ch. 108 1/2, par. 20-125)
20 Sec. 20-125. Return to employment - suspension of
21 benefits. If a retired employee returns to employment which
22 is covered by a system from which he is receiving a
23 proportional annuity under this Article, his proportional
24 annuity from all participating systems shall be suspended
25 during the period of re-employment, except that this
26 suspension does not apply to any distributions payable under
27 the self-managed plan established under Section 15-158.2 of
28 this Code.
29 The provisions of the Article under which such employment
30 would be covered shall govern the determination of whether
31 the employee has returned to employment, and if applicable
32 the exemption of temporary employment or employment not
33 exceeding a specified duration or frequency, for all
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1 participating systems from which the retired employee is
2 receiving a proportional annuity under this Article,
3 notwithstanding any contrary provisions in the other Articles
4 governing such systems.
5 (Source: P.A. 85-1008.)
6 (40 ILCS 5/20-131) (from Ch. 108 1/2, par. 20-131)
7 Sec. 20-131. Retirement Annuities and Survivors
8 Annuities - Guarantees.
9 (a) This amendatory Act of 1975 (P.A. 79-782) shall not
10 be applied to deprive any person or his survivor of
11 eligibility for an annuity or to reduce the annuity or to
12 deprive such person of rights to which he or his survivor
13 would have been entitled under the provisions of Article 20
14 which were in effect immediately prior to September 5, 1975,
15 if he was an employee immediately prior to that date.
16 (b) If the combined retirement annuity benefits provided
17 under Public Act 79-782 are less than the combined retirement
18 annuity benefits that would have been payable under the
19 alternative formula of Section 20-122, the system under which
20 retirement would have occurred, as provided by Section
21 20-122, shall increase the proportional retirement annuity by
22 an amount equal to the difference.
23 (c) Subsection (b) of this Section does not apply to the
24 retirement annuity benefits payable under the self-managed
25 plan established under Section 15-158.2 of this Code.
26 (Source: P.A. 86-820.)
27 (40 ILCS 5/15-158.1 rep.)
28 Section 15. The Illinois Pension Code is amended by
29 repealing Section 15-158.1.
30 Section 20. The Illinois Pension Code is amended by
31 changing Sections 15-136, 15-136.2, and 15-185 as follows:
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1 (40 ILCS 5/15-136) (from Ch. 108 1/2, par. 15-136)
2 Sec. 15-136. Retirement annuities - Amount. The
3 provisions of this Section 15-136 apply only to those
4 participants who are participating in the traditional benefit
5 package or the portable benefit package and do not apply to
6 participants who are participating in the self-managed plan.
7 (a) The amount of a participant's retirement annuity,
8 expressed in the form of a single-life annuity, shall be
9 determined by whichever of the following rules is applicable
10 and provides the largest annuity:
11 Rule 1: The retirement annuity shall be 1.67% of final
12 rate of earnings for each of the first 10 years of service,
13 1.90% for each of the next 10 years of service, 2.10% for
14 each year of service in excess of 20 but not exceeding 30,
15 and 2.30% for each year in excess of 30; or for persons who
16 retire on or after January 1, 1998, 2.2% of the final rate of
17 earnings for each year of service.
18 Rule 2: The retirement annuity shall be the sum of the
19 following, determined from amounts credited to the
20 participant in accordance with the actuarial tables and the
21 prescribed rate of interest in effect at the time the
22 retirement annuity begins:
23 (i) the normal annuity which can be provided on an
24 actuarially equivalent basis, by the accumulated normal
25 contributions as of the date the annuity begins; and
26 (ii) an annuity from employer contributions of an
27 amount equal to that which can be provided on an
28 actuarially equivalent basis from the accumulated normal
29 contributions made by the participant under Section
30 15-113.6 and Section 15-113.7 plus 1.4 times all other
31 accumulated normal contributions made by the participant.
32 With respect to a police officer or firefighter who
33 retires on or after August 14, the effective date of this
34 amendatory Act of 1998, the accumulated normal contributions
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1 taken into account under clauses (i) and (ii) of this Rule 2
2 shall include the additional normal contributions made by the
3 police officer or firefighter under Section 15-157(a).
4 The amount of a retirement annuity calculated under this
5 Rule 2 shall be computed solely on the basis of the
6 participant's accumulated normal contributions, as specified
7 in this Rule and defined in Section 15-116. Neither an
8 employee or employer contribution for early retirement under
9 Section 15-136.2 nor any other employer contribution shall be
10 used in the calculation of the amount of a retirement annuity
11 under this Rule 2.
12 This amendatory Act of the 91st General Assembly is a
13 clarification of existing law and applies to every
14 participant and annuitant without regard to whether status as
15 an employee terminates before the effective date of this
16 amendatory Act.
17 Rule 3: The retirement annuity of a participant who is
18 employed at least one-half time during the period on which
19 his or her final rate of earnings is based, shall be equal to
20 the participant's years of service not to exceed 30,
21 multiplied by (1) $96 if the participant's final rate of
22 earnings is less than $3,500, (2) $108 if the final rate of
23 earnings is at least $3,500 but less than $4,500, (3) $120 if
24 the final rate of earnings is at least $4,500 but less than
25 $5,500, (4) $132 if the final rate of earnings is at least
26 $5,500 but less than $6,500, (5) $144 if the final rate of
27 earnings is at least $6,500 but less than $7,500, (6) $156 if
28 the final rate of earnings is at least $7,500 but less than
29 $8,500, (7) $168 if the final rate of earnings is at least
30 $8,500 but less than $9,500, and (8) $180 if the final rate
31 of earnings is $9,500 or more, except that the annuity for
32 those persons having made an election under Section
33 15-154(a-1) shall be calculated and payable under the
34 portable retirement benefit program pursuant to the
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1 provisions of Section 15-136.4.
2 Rule 4: A participant who is at least age 50 and has 25
3 or more years of service as a police officer or firefighter,
4 and a participant who is age 55 or over and has at least 20
5 but less than 25 years of service as a police officer or
6 firefighter, shall be entitled to a retirement annuity of
7 2 1/4% of the final rate of earnings for each of the first 10
8 years of service as a police officer or firefighter, 2 1/2%
9 for each of the next 10 years of service as a police officer
10 or firefighter, and 2 3/4% for each year of service as a
11 police officer or firefighter in excess of 20. The
12 retirement annuity for all other service shall be computed
13 under Rule 1.
14 For purposes of this Rule 4, a participant's service as a
15 firefighter shall also include the following:
16 (i) service that is performed while the person is
17 an employee under subsection (h) of Section 15-107; and
18 (ii) in the case of an individual who was a
19 participating employee employed in the fire department of
20 the University of Illinois's Champaign-Urbana campus
21 immediately prior to the elimination of that fire
22 department and who immediately after the elimination of
23 that fire department transferred to another job with the
24 University of Illinois, service performed as an employee
25 of the University of Illinois in a position other than
26 police officer or firefighter, from the date of that
27 transfer until the employee's next termination of service
28 with the University of Illinois.
29 (b) The retirement annuity provided under Rules 1 and 3
30 above shall be reduced by 1/2 of 1% for each month the
31 participant is under age 60 at the time of retirement.
32 However, this reduction shall not apply in the following
33 cases:
34 (1) For a disabled participant whose disability
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1 benefits have been discontinued because he or she has
2 exhausted eligibility for disability benefits under
3 clause (6) of Section 15-152;
4 (2) For a participant who has at least the number
5 of years of service required to retire at any age under
6 subsection (a) of Section 15-135; or
7 (3) For that portion of a retirement annuity which
8 has been provided on account of service of the
9 participant during periods when he or she performed the
10 duties of a police officer or firefighter, if these
11 duties were performed for at least 5 years immediately
12 preceding the date the retirement annuity is to begin.
13 (c) The maximum retirement annuity provided under Rules
14 1, 2, and 4 shall be the lesser of (1) the annual limit of
15 benefits as specified in Section 415 of the Internal Revenue
16 Code of 1986, as such Section may be amended from time to
17 time and as such benefit limits shall be adjusted by the
18 Commissioner of Internal Revenue, and (2) 80% of final rate
19 of earnings.
20 (d) An annuitant whose status as an employee terminates
21 after August 14, 1969 shall receive automatic increases in
22 his or her retirement annuity as follows:
23 Effective January 1 immediately following the date the
24 retirement annuity begins, the annuitant shall receive an
25 increase in his or her monthly retirement annuity of 0.125%
26 of the monthly retirement annuity provided under Rule 1, Rule
27 2, Rule 3, or Rule 4, contained in this Section, multiplied
28 by the number of full months which elapsed from the date the
29 retirement annuity payments began to January 1, 1972, plus
30 0.1667% of such annuity, multiplied by the number of full
31 months which elapsed from January 1, 1972, or the date the
32 retirement annuity payments began, whichever is later, to
33 January 1, 1978, plus 0.25% of such annuity multiplied by the
34 number of full months which elapsed from January 1, 1978, or
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1 the date the retirement annuity payments began, whichever is
2 later, to the effective date of the increase.
3 The annuitant shall receive an increase in his or her
4 monthly retirement annuity on each January 1 thereafter
5 during the annuitant's life of 3% of the monthly annuity
6 provided under Rule 1, Rule 2, Rule 3, or Rule 4 contained in
7 this Section. The change made under this subsection by P.A.
8 81-970 is effective January 1, 1980 and applies to each
9 annuitant whose status as an employee terminates before or
10 after that date.
11 Beginning January 1, 1990, all automatic annual increases
12 payable under this Section shall be calculated as a
13 percentage of the total annuity payable at the time of the
14 increase, including all increases previously granted under
15 this Article.
16 The change made in this subsection by P.A. 85-1008 is
17 effective January 26, 1988, and is applicable without regard
18 to whether status as an employee terminated before that date.
19 (e) If, on January 1, 1987, or the date the retirement
20 annuity payment period begins, whichever is later, the sum of
21 the retirement annuity provided under Rule 1 or Rule 2 of
22 this Section and the automatic annual increases provided
23 under the preceding subsection or Section 15-136.1, amounts
24 to less than the retirement annuity which would be provided
25 by Rule 3, the retirement annuity shall be increased as of
26 January 1, 1987, or the date the retirement annuity payment
27 period begins, whichever is later, to the amount which would
28 be provided by Rule 3 of this Section. Such increased amount
29 shall be considered as the retirement annuity in determining
30 benefits provided under other Sections of this Article. This
31 paragraph applies without regard to whether status as an
32 employee terminated before the effective date of this
33 amendatory Act of 1987, provided that the annuitant was
34 employed at least one-half time during the period on which
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1 the final rate of earnings was based.
2 (f) A participant is entitled to such additional annuity
3 as may be provided on an actuarially equivalent basis, by any
4 accumulated additional contributions to his or her credit.
5 However, the additional contributions made by the participant
6 toward the automatic increases in annuity provided under this
7 Section shall not be taken into account in determining the
8 amount of such additional annuity.
9 (g) If, (1) by law, a function of a governmental unit,
10 as defined by Section 20-107 of this Code, is transferred in
11 whole or in part to an employer, and (2) a participant
12 transfers employment from such governmental unit to such
13 employer within 6 months after the transfer of the function,
14 and (3) the sum of (A) the annuity payable to the participant
15 under Rule 1, 2, or 3 of this Section (B) all proportional
16 annuities payable to the participant by all other retirement
17 systems covered by Article 20, and (C) the initial primary
18 insurance amount to which the participant is entitled under
19 the Social Security Act, is less than the retirement annuity
20 which would have been payable if all of the participant's
21 pension credits validated under Section 20-109 had been
22 validated under this system, a supplemental annuity equal to
23 the difference in such amounts shall be payable to the
24 participant.
25 (h) On January 1, 1981, an annuitant who was receiving a
26 retirement annuity on or before January 1, 1971 shall have
27 his or her retirement annuity then being paid increased $1
28 per month for each year of creditable service. On January 1,
29 1982, an annuitant whose retirement annuity began on or
30 before January 1, 1977, shall have his or her retirement
31 annuity then being paid increased $1 per month for each year
32 of creditable service.
33 (i) On January 1, 1987, any annuitant whose retirement
34 annuity began on or before January 1, 1977, shall have the
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1 monthly retirement annuity increased by an amount equal to 8¢
2 per year of creditable service times the number of years that
3 have elapsed since the annuity began.
4 (Source: P.A. 90-14, eff. 7-1-97; 90-65, eff. 7-7-97; 90-448,
5 eff. 8-16-97; 90-576, eff. 3-31-98; 90-655, eff. 7-30-98;
6 90-766, eff. 8-14-98.)
7 (40 ILCS 5/15-136.2) (from Ch. 108 1/2, par. 15-136.2)
8 Sec. 15-136.2. Early retirement without discount. A
9 participant whose retirement annuity begins after June 1,
10 1981 and on or before September 1, 2002 and within six months
11 of the last day of employment for which retirement
12 contributions were required, may elect at the time of
13 application to make a one time employee contribution to the
14 System and thereby avoid the early retirement reduction in
15 retirement annuity specified under subsection (b) of Section
16 15-136. The exercise of the election shall obligate the last
17 employer to also make a one time non-refundable contribution
18 to the System.
19 The one time employee and employer contributions shall be
20 a percentage of the retiring participant's highest full time
21 annual salary rate during the academic years which were
22 considered in determining his or her final rate of earnings,
23 or if not full time then the full time equivalent. The
24 employee contribution rate shall be 7% multiplied by the
25 lesser of the following 2 sums: (1) the number of years that
26 the participant is less than age 60; or (2) the number of
27 years that the participant's creditable service is less than
28 35 years. The employer contribution shall be at the rate of
29 20% for each year the participant is less than age 60. The
30 employer shall pay the employer contribution from the same
31 source of funds which is used in paying earnings to
32 employees.
33 Upon receipt of the application and election, the System
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1 shall determine the one time employee and employer
2 contributions. The provisions of this Section shall not be
3 applicable until all the above outlined contributions have
4 been received by the System; however, the date such
5 contributions are received shall not be considered in
6 determining the effective date of retirement.
7 Employee and employer contributions under this Section
8 shall be used only to eliminate the reduction for early
9 retirement under Rules 1 and 3 of Section 15-136 and shall
10 not be used in calculating annuities under Rules 2 or 4 set
11 forth in Section 15-136. This amendatory Act of the 91st
12 General Assembly is a clarification of existing law and
13 applies to every participant and annuitant without regard to
14 whether status as an employee terminates before the effective
15 date of this amendatory Act.
16 For persons who apply to the Board after the effective
17 date of this amendatory Act of 1993 and before July 1, 1993,
18 requesting a retirement annuity to begin no earlier than July
19 1, 1993 and no later than June 30, 1994, the employer shall
20 pay both the employee and employer contributions required
21 under this Section.
22 The number of employees retiring under this Section in
23 any fiscal year may be limited at the option of the employer
24 to no less than 15% of those eligible. The right to elect
25 early retirement without discount shall be allocated among
26 those applying on the basis of seniority in the service of
27 the last employer.
28 (Source: P.A. 90-65, eff. 7-7-97; 90-511, eff. 8-22-97.)
29 (40 ILCS 5/15-185) (from Ch. 108 1/2, par. 15-185)
30 Sec. 15-185. Annuities, etc., exempt. The accumulated
31 employee and employer contributions shall be held in trust
32 for each participant and annuitant, and this trust shall be
33 treated as a spendthrift trust. Except as provided in this
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1 Article, all cash, securities and other property of this
2 system, all annuities and other benefits payable under this
3 Article and all accumulated credits of participants and
4 annuitants in this system and the right of any person to
5 receive an annuity or other benefit under this Article, or a
6 refund of contributions, shall not be subject to judgment,
7 execution, garnishment, attachment, or other seizure by
8 process, in bankruptcy or otherwise, nor to sale, pledge,
9 mortgage or other alienation, and shall not be assignable.
10 The board, however, may deduct from the benefits, refunds and
11 credits payable to the participant, annuitant or beneficiary,
12 amounts owed by the participant or annuitant to the system.
13 No attempted sale, transfer or assignment of any benefit,
14 refund or credit shall prevent the right of the board to make
15 the deduction and offset authorized in this Section. Any
16 participant or annuitant may authorize the board to deduct
17 from disability benefits or annuities, premiums due under any
18 group hospital-surgical insurance program which is sponsored
19 or approved by any employer; however, the deductions from
20 disability benefits may not begin prior to 6 months after the
21 disability occurs.
22 A person receiving an annuity or benefit under this
23 Article may also authorize withholding from that annuity or
24 benefit for the purposes enumerated in and in accordance with
25 the provisions of the State Salary and Annuity Withholding
26 Act.
27 This Section is not intended to, and does not, affect the
28 calculation of any benefit under this Article or dictate how
29 or to what extent employee or employer contributions are to
30 be taken into account in calculating benefits. This
31 amendatory Act of the 91st General Assembly is a
32 clarification of existing law and applies to every
33 participant and annuitant without regard to whether status as
34 an employee terminates before the effective date of this
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1 amendatory Act.
2 Public Act 86-273 is a clarification of existing law and
3 shall be applicable to every participant and annuitant
4 without regard to whether status as an employee terminates
5 before the effective date of that Act.
6 (Source: P.A. 90-65, eff. 7-7-97; 90-448, eff. 8-16-97;
7 90-511, eff. 8-22-97; 90-655, eff. 7-30-98.)
8 Section 25. The Illinois Pension Code is amended by
9 changing Sections 15-136, 15-139, 15-146, 15-146.1, and
10 15-154 as follows:
11 (40 ILCS 5/15-136) (from Ch. 108 1/2, par. 15-136)
12 Sec. 15-136. Retirement annuities - Amount. The
13 provisions of this Section 15-136 apply only to those
14 participants who are participating in the traditional benefit
15 package or the portable benefit package and do not apply to
16 participants who are participating in the self-managed plan.
17 (a) The amount of a participant's retirement annuity,
18 expressed in the form of a single-life annuity, shall be
19 determined by whichever of the following rules is applicable
20 and provides the largest annuity:
21 Rule 1: The retirement annuity shall be 1.67% of final
22 rate of earnings for each of the first 10 years of service,
23 1.90% for each of the next 10 years of service, 2.10% for
24 each year of service in excess of 20 but not exceeding 30,
25 and 2.30% for each year in excess of 30; or for persons who
26 retire on or after January 1, 1998, 2.2% of the final rate of
27 earnings for each year of service.
28 Rule 2: The retirement annuity shall be the sum of the
29 following, determined from amounts credited to the
30 participant in accordance with the actuarial tables and the
31 prescribed rate of interest in effect at the time the
32 retirement annuity begins:
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1 (i) the normal annuity which can be provided on an
2 actuarially equivalent basis, by the accumulated normal
3 contributions as of the date the annuity begins; and
4 (ii) an annuity from employer contributions of an
5 amount which can be provided on an actuarially equivalent
6 basis from the accumulated normal contributions made by
7 the participant under Section 15-113.6 and Section
8 15-113.7 plus 1.4 times all other accumulated normal
9 contributions made by the participant.
10 With respect to a police officer or firefighter who retires
11 on or after the effective date of this amendatory Act of
12 1998, the accumulated normal contributions taken into account
13 under clauses (i) and (ii) of this Rule 2 shall include the
14 additional normal contributions made by the police officer or
15 firefighter under Section 15-157(a).
16 Rule 3: The retirement annuity of a participant who is
17 employed at least one-half time during the period on which
18 his or her final rate of earnings is based, shall be equal to
19 the participant's years of service not to exceed 30,
20 multiplied by (1) $96 if the participant's final rate of
21 earnings is less than $3,500, (2) $108 if the final rate of
22 earnings is at least $3,500 but less than $4,500, (3) $120 if
23 the final rate of earnings is at least $4,500 but less than
24 $5,500, (4) $132 if the final rate of earnings is at least
25 $5,500 but less than $6,500, (5) $144 if the final rate of
26 earnings is at least $6,500 but less than $7,500, (6) $156 if
27 the final rate of earnings is at least $7,500 but less than
28 $8,500, (7) $168 if the final rate of earnings is at least
29 $8,500 but less than $9,500, and (8) $180 if the final rate
30 of earnings is $9,500 or more, except that the annuity for
31 those persons having made an election under Section
32 15-154(a-1) shall be calculated and payable under the
33 portable retirement benefit program pursuant to the
34 provisions of Section 15-136.4.
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1 Rule 4: A participant who is at least age 50 and has 25
2 or more years of service as a police officer or firefighter,
3 and a participant who is age 55 or over and has at least 20
4 but less than 25 years of service as a police officer or
5 firefighter, shall be entitled to a retirement annuity of
6 2 1/4% of the final rate of earnings for each of the first 10
7 years of service as a police officer or firefighter, 2 1/2%
8 for each of the next 10 years of service as a police officer
9 or firefighter, and 2 3/4% for each year of service as a
10 police officer or firefighter in excess of 20. The
11 retirement annuity for all other service shall be computed
12 under Rule 1.
13 For purposes of this Rule 4, a participant's service as a
14 firefighter shall also include the following:
15 (i) service that is performed while the person is
16 an employee under subsection (h) of Section 15-107; and
17 (ii) in the case of an individual who was a
18 participating employee employed in the fire department of
19 the University of Illinois's Champaign-Urbana campus
20 immediately prior to the elimination of that fire
21 department and who immediately after the elimination of
22 that fire department transferred to another job with the
23 University of Illinois, service performed as an employee
24 of the University of Illinois in a position other than
25 police officer or firefighter, from the date of that
26 transfer until the employee's next termination of service
27 with the University of Illinois.
28 Rule 5: The retirement annuity of a participant who
29 elected early retirement under the provisions of Section
30 15-136.2 and who, on or before February 16, 1995, brought
31 administrative proceedings pursuant to the administrative
32 rules adopted by the System to challenge the calculation of
33 his or her retirement annuity shall be the sum of the
34 following, determined from amounts credited to the
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1 participant in accordance with the actuarial tables and the
2 prescribed rate of interest in effect at the time the
3 retirement annuity begins:
4 (i) the normal annuity which can be provided on an
5 actuarially equivalent basis, by the accumulated normal
6 contributions as of the date the annuity begins; and
7 (ii) an annuity from employer contributions of an
8 amount equal to that which can be provided on an
9 actuarially equivalent basis from the accumulated normal
10 contributions made by the participant under Section
11 15-113.6 and Section 15-113.7 plus 1.4 times all other
12 accumulated normal contributions made by the participant;
13 and
14 (iii) an annuity which can be provided on an
15 actuarially equivalent basis from the employee
16 contribution for early retirement under Section 15-136.2,
17 and an annuity from employer contributions of an amount
18 equal to that which can be provided on an actuarially
19 equivalent basis from the employee contribution for early
20 retirement under Section 15-136.2.
21 In no event shall a retirement annuity under this Rule 5
22 be lower than the amount obtained by adding (1) the monthly
23 amount obtained by dividing the combined employee and
24 employer contributions made under Section 15-136.2 by the
25 System's annuity factor for the age of the participant at the
26 beginning of the annuity payment period and (2) the amount
27 equal to the participant's annuity if calculated under Rule
28 1, reduced under Section 15-136(b) as if no contributions had
29 been made under Section 15-136.2.
30 With respect to a participant who is qualified for a
31 retirement annuity under this Rule 5 whose retirement annuity
32 began before the effective date of this amendatory Act of the
33 91st General Assembly, and for whom an employee contribution
34 was made under Section 15-136.2, the System shall recalculate
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1 the retirement annuity under this Rule 5 and shall pay any
2 additional amounts due in the manner provided in Section
3 15-186.1 for benefits mistakenly set too low.
4 The amount of a retirement annuity calculated under this
5 Rule 5 shall be computed solely on the basis of those
6 contributions specifically set forth in this Rule 5. Except
7 as provided in clause (iii) of this Rule 5, neither an
8 employee nor employer contribution for early retirement under
9 Section 15-136.2, nor any other employer contribution, shall
10 be used in the calculation of the amount of a retirement
11 annuity under this Rule 5.
12 The General Assembly has adopted the changes set forth in
13 Section 25 of this amendatory Act of the 91st General
14 Assembly in recognition that the decision of the Appellate
15 Court for the Fourth District in Mattis v. State Universities
16 Retirement System et al. might be deemed to give some right
17 to the plaintiff in that case. The changes made by Section
18 25 of this amendatory Act of the 91st General Assembly are a
19 legislative implementation of the decision of the Appellate
20 Court for the Fourth District in Mattis v. State Universities
21 Retirement System et al. with respect to that plaintiff.
22 The changes made by Section 25 of this amendatory Act of
23 the 91st General Assembly apply without regard to whether the
24 person is in service as an employee on or after its effective
25 date.
26 (b) The retirement annuity provided under Rules 1 and 3
27 above shall be reduced by 1/2 of 1% for each month the
28 participant is under age 60 at the time of retirement.
29 However, this reduction shall not apply in the following
30 cases:
31 (1) For a disabled participant whose disability
32 benefits have been discontinued because he or she has
33 exhausted eligibility for disability benefits under
34 clause (6) of Section 15-152;
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1 (2) For a participant who has at least the number
2 of years of service required to retire at any age under
3 subsection (a) of Section 15-135; or
4 (3) For that portion of a retirement annuity which
5 has been provided on account of service of the
6 participant during periods when he or she performed the
7 duties of a police officer or firefighter, if these
8 duties were performed for at least 5 years immediately
9 preceding the date the retirement annuity is to begin.
10 (c) The maximum retirement annuity provided under Rules
11 1, 2, and 4, and 5 shall be the lesser of (1) the annual
12 limit of benefits as specified in Section 415 of the Internal
13 Revenue Code of 1986, as such Section may be amended from
14 time to time and as such benefit limits shall be adjusted by
15 the Commissioner of Internal Revenue, and (2) 80% of final
16 rate of earnings.
17 (d) An annuitant whose status as an employee terminates
18 after August 14, 1969 shall receive automatic increases in
19 his or her retirement annuity as follows:
20 Effective January 1 immediately following the date the
21 retirement annuity begins, the annuitant shall receive an
22 increase in his or her monthly retirement annuity of 0.125%
23 of the monthly retirement annuity provided under Rule 1, Rule
24 2, Rule 3, or Rule 4, or Rule 5, contained in this Section,
25 multiplied by the number of full months which elapsed from
26 the date the retirement annuity payments began to January 1,
27 1972, plus 0.1667% of such annuity, multiplied by the number
28 of full months which elapsed from January 1, 1972, or the
29 date the retirement annuity payments began, whichever is
30 later, to January 1, 1978, plus 0.25% of such annuity
31 multiplied by the number of full months which elapsed from
32 January 1, 1978, or the date the retirement annuity payments
33 began, whichever is later, to the effective date of the
34 increase.
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1 The annuitant shall receive an increase in his or her
2 monthly retirement annuity on each January 1 thereafter
3 during the annuitant's life of 3% of the monthly annuity
4 provided under Rule 1, Rule 2, Rule 3, or Rule 4, or Rule 5
5 contained in this Section. The change made under this
6 subsection by P.A. 81-970 is effective January 1, 1980 and
7 applies to each annuitant whose status as an employee
8 terminates before or after that date.
9 Beginning January 1, 1990, all automatic annual increases
10 payable under this Section shall be calculated as a
11 percentage of the total annuity payable at the time of the
12 increase, including all increases previously granted under
13 this Article.
14 The change made in this subsection by P.A. 85-1008 is
15 effective January 26, 1988, and is applicable without regard
16 to whether status as an employee terminated before that date.
17 (e) If, on January 1, 1987, or the date the retirement
18 annuity payment period begins, whichever is later, the sum of
19 the retirement annuity provided under Rule 1 or Rule 2 of
20 this Section and the automatic annual increases provided
21 under the preceding subsection or Section 15-136.1, amounts
22 to less than the retirement annuity which would be provided
23 by Rule 3, the retirement annuity shall be increased as of
24 January 1, 1987, or the date the retirement annuity payment
25 period begins, whichever is later, to the amount which would
26 be provided by Rule 3 of this Section. Such increased amount
27 shall be considered as the retirement annuity in determining
28 benefits provided under other Sections of this Article. This
29 paragraph applies without regard to whether status as an
30 employee terminated before the effective date of this
31 amendatory Act of 1987, provided that the annuitant was
32 employed at least one-half time during the period on which
33 the final rate of earnings was based.
34 (f) A participant is entitled to such additional annuity
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1 as may be provided on an actuarially equivalent basis, by any
2 accumulated additional contributions to his or her credit.
3 However, the additional contributions made by the participant
4 toward the automatic increases in annuity provided under this
5 Section shall not be taken into account in determining the
6 amount of such additional annuity.
7 (g) If, (1) by law, a function of a governmental unit,
8 as defined by Section 20-107 of this Code, is transferred in
9 whole or in part to an employer, and (2) a participant
10 transfers employment from such governmental unit to such
11 employer within 6 months after the transfer of the function,
12 and (3) the sum of (A) the annuity payable to the participant
13 under Rule 1, 2, or 3 of this Section (B) all proportional
14 annuities payable to the participant by all other retirement
15 systems covered by Article 20, and (C) the initial primary
16 insurance amount to which the participant is entitled under
17 the Social Security Act, is less than the retirement annuity
18 which would have been payable if all of the participant's
19 pension credits validated under Section 20-109 had been
20 validated under this system, a supplemental annuity equal to
21 the difference in such amounts shall be payable to the
22 participant.
23 (h) On January 1, 1981, an annuitant who was receiving a
24 retirement annuity on or before January 1, 1971 shall have
25 his or her retirement annuity then being paid increased $1
26 per month for each year of creditable service. On January 1,
27 1982, an annuitant whose retirement annuity began on or
28 before January 1, 1977, shall have his or her retirement
29 annuity then being paid increased $1 per month for each year
30 of creditable service.
31 (i) On January 1, 1987, any annuitant whose retirement
32 annuity began on or before January 1, 1977, shall have the
33 monthly retirement annuity increased by an amount equal to 8¢
34 per year of creditable service times the number of years that
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1 have elapsed since the annuity began.
2 (Source: P.A. 90-14, eff. 7-1-97; 90-65, eff. 7-7-97; 90-448,
3 eff. 8-16-97; 90-576, eff. 3-31-98; 90-655, eff. 7-30-98;
4 90-766, eff. 8-14-98.)
5 (40 ILCS 5/15-139) (from Ch. 108 1/2, par. 15-139)
6 Sec. 15-139. Retirement annuities; Cancellation;
7 Suspended during employment.
8 (a) If an annuitant returns to employment for an
9 employer within 60 days after the beginning of the retirement
10 annuity payment period, the retirement annuity shall be
11 cancelled, and the annuitant shall refund to the System the
12 total amount of the retirement annuity payments which he or
13 she received. If the retirement annuity is cancelled, the
14 participant shall continue to participate in the System.
15 (b) If an annuitant retires prior to age 60 and receives
16 or becomes entitled to receive during any month compensation
17 in excess of the monthly retirement annuity for services
18 performed after the date of retirement for any employer under
19 this System, the State Employees' Retirement System of
20 Illinois, or the Teachers' Retirement System of the State of
21 Illinois, that portion of the monthly retirement annuity
22 provided by employer contributions shall not be payable.
23 If an annuitant retires at age 60 or over and receives or
24 becomes entitled to receive during any academic year
25 compensation in excess of the difference between his or her
26 highest annual earnings prior to retirement and his or her
27 annual retirement annuity computed under Rule 1, Rule 2, Rule
28 3, or Rule 4, or Rule 5 of Section 15-136 for services
29 performed after the date of retirement for any employer under
30 this System, that portion of the monthly retirement annuity
31 provided by employer contributions shall be reduced by an
32 amount equal to the compensation that exceeds such
33 difference.
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1 However, any remuneration received for serving as a
2 member of the Illinois Educational Labor Relations Board
3 shall be excluded from "compensation" for the purposes of
4 this subsection (b), and serving as a member of the Illinois
5 Educational Labor Relations Board shall not be deemed to be a
6 return to employment for the purposes of this Section. This
7 provision applies without regard to whether service was
8 terminated prior to the effective date of this amendatory Act
9 of 1991.
10 (c) If an employer certifies that an annuitant has been
11 reemployed on a permanent and continuous basis or in a
12 position in which the annuitant is expected to serve for at
13 least 9 months, the annuitant shall resume his or her status
14 as a participating employee and shall be entitled to all
15 rights applicable to participating employees upon filing with
16 the board an election to forego all annuity payments during
17 the period of reemployment. Upon subsequent retirement, the
18 retirement annuity shall consist of the annuity which was
19 terminated by the reemployment, plus the additional
20 retirement annuity based upon service granted during the
21 period of reemployment, but the combined retirement annuity
22 shall not exceed the maximum annuity applicable on the date
23 of the last retirement.
24 The total service and earnings credited before and after
25 the initial date of retirement shall be considered in
26 determining eligibility of the employee or the employee's
27 beneficiary to benefits under this Article, and in
28 calculating final rate of earnings.
29 In determining the death benefit payable to a beneficiary
30 of an annuitant who again becomes a participating employee
31 under this Section, accumulated normal and additional
32 contributions shall be considered as the sum of the
33 accumulated normal and additional contributions at the date
34 of initial retirement and the accumulated normal and
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1 additional contributions credited after that date, less the
2 sum of the annuity payments received by the annuitant.
3 The survivors insurance benefits provided under Section
4 15-145 shall not be applicable to an annuitant who resumes
5 his or her status as a participating employee, unless the
6 annuitant, at the time of initial retirement, has a survivors
7 insurance beneficiary who could qualify for such benefits.
8 If the annuitant's employment is terminated because of
9 circumstances other than death before 9 months from the date
10 of reemployment, the provisions of this Section regarding
11 resumption of status as a participating employee shall not
12 apply. The normal and survivors insurance contributions which
13 are deducted during this period shall be refunded to the
14 annuitant without interest, and subsequent benefits under
15 this Article shall be the same as those which were applicable
16 prior to the date the annuitant resumed employment.
17 (Source: P.A. 86-1488.)
18 (40 ILCS 5/15-146) (from Ch. 108 1/2, par. 15-146)
19 Sec. 15-146. Survivors insurance benefits - Minimum
20 amounts.
21 (a) The minimum total survivors annuity payable on
22 account of the death of a participant shall be 50% of the
23 retirement annuity which would have been provided under Rule
24 1, Rule 2, or Rule 3, or Rule 5 of Section 15-136 upon the
25 participant's attainment of the minimum age at which the
26 penalty for early retirement would not be applicable or the
27 date of the participant's death, whichever is later, on the
28 basis of credits earned prior to the time of death.
29 (b) The minimum total survivors annuity payable on
30 account of the death of an annuitant shall be 50% of the
31 retirement annuity which is payable under Section 15-136 at
32 the time of death or 50% of the disability retirement annuity
33 payable under Section 15-153.2. This minimum survivors
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1 annuity shall apply to each participant and annuitant who
2 dies after September 16, 1979, whether or not his or her
3 employee status terminates before or after that date.
4 (c) If an annuitant has elected a reversionary annuity,
5 the retirement annuity referred to in this Section is that
6 which would have been payable had such election not been
7 filed.
8 (Source: P.A. 90-448, eff. 8-16-97; 90-766, eff. 8-14-98.)
9 (40 ILCS 5/15-146.1) (from Ch. 108 1/2, par. 15-146.1)
10 Sec. 15-146.1. Survivors insurance benefits-Maximum
11 amounts. (a) The maximum total survivors annuity payable on
12 account of any deceased participating employee shall be the
13 lesser of: (1) 80% of the final rate of earnings; or (2) (A)
14 $400 per month if one survivors insurance beneficiary is
15 entitled to a survivors annuity, or (B) $600 per month if
16 there are 2 or more such beneficiaries.
17 (b) The maximum total survivors annuity payable on
18 account of the death of any person occurring after retirement
19 or after termination of his or her employee status shall be
20 the lesser of: (1) 80% of the final rate of earnings; (2)
21 (A) $400 per month if one survivors insurance beneficiary is
22 entitled to a survivors annuity, or (B) $600 per month if
23 there are 2 or more such beneficiaries; or (3) 80% of the
24 retirement annuity payable to the annuitant at the date of
25 retirement under the provisions of Rule 1, Rule 2, or Rule 3,
26 or Rule 5 of Section 15-136, or 80% of the retirement annuity
27 which would have been payable to the participant upon
28 attainment of the minimum age at which the penalty for early
29 retirement would not be applicable or the date of death,
30 whichever is later, based upon credits earned as of the date
31 of death.
32 (c) The maximum total survivors annuity payable on
33 account of the death of any person whose death occurs while
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1 in receipt of a disability retirement annuity under Section
2 15-153.2 shall be the lesser of (1) 80% of his or her final
3 rate of earnings, (2) (A) $400 per month if one survivors
4 insurance beneficiary is entitled to a survivors annuity, or
5 (B) $600 per month if 2 or more survivors insurance
6 beneficiaries qualify for this benefit, or (3) 80% of the
7 retirement annuity which would have been payable upon
8 attainment of the age at which the penalty for early
9 retirement would not be applicable or the date of death,
10 whichever is later, based upon the participant's credits on
11 the date of death, or 80% of the disability retirement
12 annuity whichever is greater.
13 (d) If the minimum annuity provided under Section 15-146
14 exceeds the maximum annuity provided under this Section, the
15 minimum annuity shall be payable.
16 (e) If an annuitant has elected a reversionary annuity,
17 the retirement annuity referred to in this Section is that
18 which would have been payable had such election not been
19 filed.
20 (f) If a survivors insurance beneficiary qualifies for a
21 survivors or widows annuity because of pension credits
22 established by the participant or annuitant in another system
23 covered by Article 20, and the combined survivors annuities
24 exceed the highest survivors annuity which could be provided
25 by either system based upon the combined pension credits, the
26 survivors annuity payable by this system shall be reduced to
27 that amount which, when added to the survivors annuity
28 payable by the other system, would equal this highest
29 survivors annuity. If the other system has a similar
30 provision for adjustment of the survivors annuity, the
31 respective proportional survivors annuities shall be reduced
32 proportionately according to the ratio which the amount of
33 each proportional survivors annuity bears to the aggregate of
34 all proportional survivors annuities. If a survivors annuity
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1 is payable by another system covered by Article 20, and the
2 survivor elects to waive the survivors annuity and accept a
3 lump sum payment or death benefit in lieu of the survivors
4 annuity, this system shall, for the purpose of adjusting the
5 survivors annuity under this subsection, assume that the
6 survivor was entitled to a survivors annuity which, in
7 accordance with actuarial tables of this system, is the
8 actuarial equivalent of the amount of the lump sum payment or
9 death benefit.
10 (g) The total monthly survivors annuity payable to the
11 beneficiaries of any annuitant who terminated employment
12 before July 14, 1959 and whose death occurs after September
13 16, 1977 shall not exceed $200.
14 (h) Whenever a reduction in the survivors annuity is
15 made as authorized above, the survivors annuity to each
16 dependent parent shall be proportionately reduced or
17 eliminated, and if further reduction is necessary, the
18 survivors annuity payable to every other person shall be
19 proportionately decreased.
20 (Source: P.A. 86-272.)
21 (40 ILCS 5/15-154) (from Ch. 108 1/2, par. 15-154)
22 Sec. 15-154. Refunds.
23 (a) A participant whose status as an employee is
24 terminated, regardless of cause, or who has been on lay off
25 status for more than 120 days, and who is not on leave of
26 absence, is entitled to a refund of contributions upon
27 application; except that not more than one such refund
28 application may be made during any academic year.
29 Except as set forth in subsections (a-1) and (a-2), the
30 refund shall be the sum of the accumulated normal, additional
31 and survivors insurance contributions, less the amount of
32 interest credited on these contributions each year in excess
33 of 4 1/2% of the amount on which interest was calculated.
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1 (a-1) A person who elects, in accordance with the
2 requirements of Section 15-134.5, to participate in the
3 portable benefit package and who becomes a participating
4 employee under that retirement program upon the conclusion of
5 the one-year waiting period applicable to the portable
6 benefit package election shall have his or her refund
7 calculated in accordance with the provisions of subsection
8 (a-2).
9 (a-2) The refund payable to a participant described in
10 subsection (a-1) shall be the sum of the participant's
11 accumulated normal and additional contributions, as defined
12 in Sections 15-116 and 15-117. If the participant terminates
13 with 5 or more years of service for employment as defined in
14 Section 15-113.1, he or she shall also be entitled to a
15 distribution of employer contributions in an amount equal to
16 the sum of the accumulated normal and additional
17 contributions, as defined in Sections 15-116 and 15-117.
18 (b) Upon acceptance of a refund, the participant
19 forfeits all accrued rights and credits in the System, and if
20 subsequently reemployed, the participant shall be considered
21 a new employee subject to all the qualifying conditions for
22 participation and eligibility for benefits applicable to new
23 employees. If such person again becomes a participating
24 employee and continues as such for 2 years, or is employed by
25 an employer and participates for at least 2 years in the
26 Federal Civil Service Retirement System, all such rights,
27 credits, and previous status as a participant shall be
28 restored upon repayment of the amount of the refund, together
29 with compound interest thereon from the date the refund was
30 received to the date of repayment at the rate of 6% per annum
31 through August 31, 1982, and at the effective rates after
32 that date.
33 (c) If a participant covered under the transitional
34 benefit package has made survivors insurance contributions,
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1 but has no survivors insurance beneficiary upon retirement,
2 he or she shall be entitled to a refund of the accumulated
3 survivors insurance contributions, or to an additional
4 annuity the value of which is equal to the accumulated
5 survivors insurance contributions.
6 (d) A participant, upon application, is entitled to a
7 refund of his or her accumulated additional contributions
8 attributable to the additional contributions described in the
9 last sentence of subsection (c) of Section 15-157. Upon the
10 acceptance of such a refund of accumulated additional
11 contributions, the participant forfeits all rights and
12 credits which may have accrued because of such contributions.
13 (e) A participant who terminates his or her employee
14 status and elects to waive service credit under Section
15 15-154.2, is entitled to a refund of the accumulated normal,
16 additional and survivors insurance contributions, if any,
17 which were credited the participant for this service, or to
18 an additional annuity the value of which is equal to the
19 accumulated normal, additional and survivors insurance
20 contributions, if any; except that not more than one such
21 refund application may be made during any academic year. Upon
22 acceptance of this refund, the participant forfeits all
23 rights and credits accrued because of this service.
24 (f) If a police officer or firefighter receives a
25 retirement annuity under Rule 1 or 3 of Section 15-136, he or
26 she shall be entitled at retirement to a refund of the
27 difference between his or her accumulated normal
28 contributions and the normal contributions which would have
29 accumulated had such person filed a waiver of the retirement
30 formula provided by Rule 4 of Section 15-136.
31 (g) If, at the time of retirement, a participant would
32 be entitled to a retirement annuity under Rule 1, 2, 3, or 4,
33 or 5 of Section 15-136 that exceeds the maximum specified in
34 clause (1) of subsection (c) of Section 15-136, he or she
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1 shall be entitled to a refund of the employee contributions,
2 if any, paid under Section 15-157 after the date upon which
3 continuance of such contributions would have otherwise caused
4 the retirement annuity to exceed this maximum, plus compound
5 interest at the effective rates.
6 (Source: P.A. 90-448, eff. 8-16-97; 90-576, eff. 3-31-98;
7 90-766, eff. 8-14-98.)
8 Section 90. Severability.
9 (a) It is the intent of the General Assembly that the
10 changes made by Section 25 of this amendatory Act of the 91st
11 General Assembly are not severable from one another, and
12 should any of the changes made by Section 25 be declared
13 invalid, then the remainder of those changes shall not remain
14 in effect.
15 (b) Except as set forth in subsection (a), the
16 provisions of this amendatory Act of the 91st General
17 Assembly are severable under Section 1.31 of the Statute on
18 Statutes. Without limiting the foregoing, it is the intent
19 of the General Assembly that should the provisions of Section
20 25 of this amendatory Act of the 91st General Assembly be
21 declared invalid, then the remainder of this Act shall remain
22 in effect.
23 Section 95. The State Mandates Act is amended by adding
24 Section 8.24 as follows:
25 (30 ILCS 805/8.24 new)
26 Sec. 8.24. Exempt mandate. Notwithstanding Sections 6
27 and 8 of this Act, no reimbursement by the State is required
28 for the implementation of any mandate created by this
29 amendatory Act of the 91st General Assembly.
30 Section 99. Effective date. This Act takes effect upon
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1 becoming law.
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