Public Act 096-0251
 
HB1099 Enrolled LRB096 08016 AMC 18121 b

    AN ACT concerning public employee benefits.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Illinois Pension Code is amended by changing
Sections 13-303, 13-308, 13-309, 13-314, and 13-601 as follows:
 
    (40 ILCS 5/13-303)  (from Ch. 108 1/2, par. 13-303)
    Sec. 13-303. Reversionary annuity.
    (a) An employee, prior to retirement on annuity, may elect
a lesser amount of annuity and provide, with the actuarial
value of the amount by which his annuity is reduced, a
reversionary annuity for a wife, husband, parents, children,
brothers or sisters. The election may be exercised by filing a
written designation with the Board prior to retirement, and may
be revoked by the employee at any time before retirement. The
death of the employee prior to retirement shall automatically
void the election.
    (b) The death of the designated reversionary annuitant
prior to the employee's retirement shall automatically void the
election, but, if death of the designated reversionary
annuitant occurs after retirement, the reduced annuity being
paid to the retired employee annuitant shall remain unchanged
and no reversionary annuity shall be payable.
    No reversionary annuity shall be paid if the employee dies
before the expiration of 730 days from the date the written
designation was filed with the board, even though the employee
retired and was receiving a reduced annuity.
    (c) An employee exercising this option shall not reduce the
annuity by more than 25%, nor elect to provide a reversionary
annuity of less than $100 per month. No such option shall be
permitted if the reversionary annuity for a surviving spouse,
when added to the surviving spouse's annuity payable under this
Article, exceeds 85% of the reduced annuity payable to the
employee.
    (d) A reversionary annuity shall begin on the day following
the death of the annuitant, with the first payment due and
payable one month later, and shall continue monthly thereafter
until the death of the reversionary annuitant. Beginning on the
first day of the month following the month in which this
amendatory Act of the 96th General Assembly takes effect, a
reversionary annuity shall begin on the first of the month
following the annuitant's death and is payable for the full
month if the reversionary annuitant is alive on the first day
of the month.
    (e) The increases in annuity provided in Section 13-302(d)
shall, as to an employee so electing a reduced annuity, relate
to the amount of reduced annuity, and such lesser amount shall
constitute the annuity on which such increases shall be based.
    (f) For determining the actuarial value under this option
of the employee's annuity and the reversionary annuity, the
Fund shall use an actuarial table recommended by the Fund's
actuarial consultant and approved by the Board of Trustees.
(Source: P.A. 91-887, eff. 7-6-00.)
 
    (40 ILCS 5/13-308)  (from Ch. 108 1/2, par. 13-308)
    Sec. 13-308. Child's annuity.
    (a) Eligibility. A child's annuity shall be provided for
each unmarried child under the age of 18 years (under the age
of 23 years in the case of a full-time student) whose employee
parent dies while in service, or whose deceased parent is an
annuitant or former employee with at least 10 years of
creditable service who did not take a refund of employee
contributions. Eligibility for benefits to unmarried children
over the age of 18 but under the age of 23 begins no earlier
than September 1, 2005 the first day of the month following the
month in which this amendatory Act of the 94th General Assembly
takes effect.
    For purposes of this Section, "employee" includes a former
employee, and "child" means the issue of an employee or a child
adopted by an employee.
    Payments shall cease when a child attains the age of 18
years (age of 23 years in the case of a full-time student) or
marries, whichever first occurs. The annuity shall not be
payable unless the employee has been employed as an employee
for at least 36 months from the date of the employee's original
entry into service (at least 24 months in the case of an
employee who first entered service before June 13, 1997) and at
least 12 months from the date of the employee's latest re-entry
into service; provided, however, that if death arises out of
and in the course of service to the employer and is compensable
under either the Illinois Workers' Compensation Act or Illinois
Workers' Occupational Diseases Act, the annuity is payable
regardless of the employee's length of service.
    (b) Amount. Beginning on the first day of the month
following the month in which this amendatory Act of the 96th
General Assembly takes effect, a A child's annuity shall be
$500 per month for each one child and $350 per month for each
additional child, up to a maximum of $5,000 $2,500 per month
for all children of the employee, as provided in this Section,
if a parent of the child is living. The child's annuity shall
be $1,000 per month for each one child and $500 per month for
each additional child, up to a maximum of $5,000 $2,500 for all
children of the employee, when neither parent is alive. The
total amount payable to all children of the employee shall be
divided equally among those children. Any child's annuity which
commenced prior to July 12, 2001 shall be increased upon the
first day of the month following the month in which that
effective date occurs, to the amount set forth herein.
    (c) Payment. Until a child attains the age of 18 years, a
child's annuity shall be paid to the child's parent or other
person who shall be providing for the child without requiring
formal letters of guardianship, unless another person shall be
appointed by a court of law as guardian. Beginning on the first
day of the month following the month in which this amendatory
Act of the 96th General Assembly takes effect, benefits shall
begin on the first of the month following the employee's or
annuitant's date of death and are payable for the full month if
the annuitant was alive on the first day of the month.
(Source: P.A. 94-621, eff. 8-18-05; 95-279, eff. 1-1-08.)
 
    (40 ILCS 5/13-309)  (from Ch. 108 1/2, par. 13-309)
    Sec. 13-309. Duty disability benefit.
    (a) Any employee who becomes disabled, which disability is
the result of an injury or illness compensable under the
Illinois Workers' Compensation Act or the Illinois Workers'
Occupational Diseases Act, is entitled to a duty disability
benefit during the period of disability for which the employee
does not receive any part of salary, or any part of a
retirement annuity under this Article; except that in the case
of an employee who first enters service on or after June 13,
1997 and becomes disabled before August 18, 2005 (the effective
date of Public Act 94-621) this amendatory Act of the 94th
General Assembly, a duty disability benefit is not payable for
the first 3 days of disability that would otherwise be payable
under this Section if the disability does not continue for at
least 11 additional days. The changes made to this Section by
Public Act 94-621 this amendatory Act of the 94th General
Assembly are prospective only and do not entitle an employee to
a duty disability benefit for the first 3 days of any
disability that occurred before that effective date and did not
continue for at least 11 additional days. This benefit shall be
75% of salary at the date disability begins. However, if the
disability in any measure resulted from any physical defect or
disease which existed at the time such injury was sustained or
such illness commenced, the duty disability benefit shall be
50% of salary.
    Unless the employer acknowledges that the disability is a
result of injury or illness compensable under the Workers'
Compensation Act or the Workers' Occupational Diseases Act, the
duty disability benefit shall not be payable until the issue of
compensability under those Acts is finally adjudicated. The
period of disability shall be as determined by the Illinois
Workers' Compensation Commission or acknowledged by the
employer.
    An employee in service before June 13, 1997 shall also
receive a child's disability benefit during the period of
disability of $10 per month for each unmarried natural or
adopted child of the employee under 18 years of age.
    The first payment shall be made not later than one month
after the benefit is granted, and subsequent payments shall be
made at least monthly. The Board shall by rule prescribe for
the payment of such benefits on the basis of the amount of
salary lost during the period of disability.
    (b) The benefit shall be allowed only if all of the
following requirements are met by the employee:
        (1) Application is made to the Board. within 90 days
    from the date disability begins;
        (2) A medical report is submitted by at least one
    licensed and practicing physician as part of the employee's
    application. ; and
        (3) The employee is examined by at least one licensed
    and practicing physician appointed by the Board and found
    to be in a disabled physical condition, and shall be
    re-examined at least annually thereafter during the
    continuance of disability. The employee need not be
    examined re-examined by a licensed and practicing
    physician appointed by the Board if the attorney for the
    district certifies in writing that the employee is entitled
    to receive compensation under the Workers' Compensation
    Act or the Workers' Occupational Diseases Act. The Board
    may require other evidence of disability.
    (c) The benefit shall terminate when:
        (1) The employee returns to work or receives a
    retirement annuity paid wholly or in part under this
    Article;
        (2) The disability ceases;
        (3) The employee attains age 65, but if the employee
    becomes disabled at age 60 or later, benefits may be
    extended for a period of no more than 5 years after
    disablement;
        (4) The employee (i) refuses to submit to reasonable
    examinations by physicians or other health professionals
    appointed by the Board, (ii) fails or refuses to consent to
    and sign an authorization allowing the Board to receive
    copies of or to examine the employee's medical and hospital
    records, or (iii) fails or refuses to provide complete
    information regarding any other employment for
    compensation he or she has received since becoming
    disabled; or
        (5) The employee willfully and continuously refuses to
    follow medical advice and treatment to enable the employee
    to return to work. However this provision does not apply to
    an employee who relies in good faith on treatment by prayer
    through spiritual means alone in accordance with the tenets
    and practice of a recognized church or religious
    denomination, by a duly accredited practitioner thereof.
    In the case of a duty disability recipient who returns to
work, the employee must make application to the Retirement
Board within 2 years from the date the employee last received
duty disability benefits in order to become again entitled to
duty disability benefits based on the injury for which a duty
disability benefit was theretofore paid.
(Source: P.A. 94-621, eff. 8-18-05; 95-586, eff. 8-31-07.)
 
    (40 ILCS 5/13-314)  (from Ch. 108 1/2, par. 13-314)
    Sec. 13-314. Alternative provisions for Water Reclamation
District commissioners.
    (a) Transfer of credits. Any Water Reclamation District
commissioner elected by vote of the people and who has elected
to participate in this Fund may transfer to this Fund credits
and creditable service accumulated under any other pension fund
or retirement system established under Articles 2 through 18 of
this Code, upon payment to the Fund of (1) the amount by which
the employer and employee contributions that would have been
required if he had participated in this Fund during the period
for which credit is being transferred, plus interest, exceeds
the amounts actually transferred from such other fund or system
to this Fund, plus (2) interest thereon at 6% per year
compounded annually from the date of transfer to the date of
payment.
    (b) Alternative annuity. Any participant commissioner may
elect to establish alternative credits for an alternative
annuity by electing in writing to make additional optional
contributions in accordance with this Section and procedures
established by the Board. Unless and until such time as the
U.S. Internal Revenue Service or the federal courts provide a
favorable ruling as described in Section 13-502(f), a
commissioner may discontinue making the additional optional
contributions by notifying the Fund in writing in accordance
with this Section and procedures established by the Board.
    Additional optional contributions for the alternative
annuity shall be as follows:
        (1) For service after the option is elected, an
    additional contribution of 3% of salary shall be
    contributed to the Fund on the same basis and under the
    same conditions as contributions required under Section
    13-502.
        (2) For contributions on past service, the additional
    contribution shall be 3% of the salary for the applicable
    period of service, plus interest at the annual rate from
    time to time as determined by the Board, compounded
    annually from the date of service to the date of payment.
    Contributions for service before the option is elected may
    be made in a lump sum payment to the Fund or by
    contributing to the Fund on the same basis and under the
    same conditions as contributions required under Section
    13-502. All payments for past service must be paid in full
    before credit is given. No additional optional
    contributions may be made for any period of service for
    which credit has been previously forfeited by acceptance of
    a refund, unless the refund is repaid in full with interest
    at the rate specified in Section 13-603, from the date of
    refund to the date of repayment.
    In lieu of the retirement annuity otherwise payable under
this Article, any commissioner who has elected to participate
in the Fund and make additional optional contributions in
accordance with this Section, has attained age 55, and has at
least 6 years of service credit, may elect to have the
retirement annuity computed as follows: 3% of the participant's
average final salary as a commissioner for each of the first 8
years of service credit, plus 4% of such salary for each of the
next 4 years of service credit, plus 5% of such salary for each
year of service credit in excess of 12 years, subject to a
maximum of 80% of such salary. To the extent such commissioner
has made additional optional contributions with respect to only
a portion of years of service credit, the retirement annuity
will first be determined in accordance with this Section to the
extent such additional optional contributions were made, and
then in accordance with the remaining Sections of this Article
to the extent of years of service credit with respect to which
additional optional contributions were not made. The change in
minimum retirement age (from 60 to 55) made by Public Act
87-1265 this amendatory Act of 1993 applies to persons who
begin receiving a retirement annuity under this Section on or
after January 25, 1993 (the effective date of Public Act
87-1265) this amendatory Act, without regard to whether they
are in service on or after that date.
    (c) Disability benefits. In lieu of the disability benefits
otherwise payable under this Article, any commissioner who (1)
has elected to participate in the Fund, and (2) has become
permanently disabled and as a consequence is unable to perform
the duties of office, and (3) was making optional contributions
in accordance with this Section at the time the disability was
incurred, may elect to receive a disability annuity calculated
in accordance with the formula in subsection (b). For the
purposes of this subsection, such commissioner shall be
considered permanently disabled only if: (i) disability occurs
while in service as a commissioner and is of such a nature as
to prevent the reasonable performance of the duties of office
at the time; and (ii) the Board has received a written
certification by at least 2 licensed physicians appointed by it
stating that such commissioner is disabled and that the
disability is likely to be permanent.
    (d) Alternative survivor's benefits. In lieu of the
survivor's benefits otherwise payable under this Article, the
spouse or eligible child of any deceased commissioner who (1)
had elected to participate in the Fund, and (2) was either
making (or had already made) additional optional contributions
on the date of death, or was receiving an annuity calculated
under this Section at the time of death, may elect to receive
an annuity beginning on the date of the commissioner's death,
provided that the spouse and commissioner must have been
married on the date of the last termination of a service as
commissioner and for a continuous period of at least one year
immediately preceding death.
    The annuity shall be payable beginning on the date of the
commissioner's death if the spouse is then age 50 or over, or
beginning at age 50 if the age of the spouse is less than 50
years. If a minor unmarried child or children of the
commissioner, under age 18 (age 23 in the case of a full-time
student), also survive, and the child or children are under the
care of the eligible spouse, the annuity shall begin as of the
date of death of the commissioner without regard to the
spouse's age. Beginning on the first day of the month following
the month in which this amendatory Act of the 96th General
Assembly takes effect, benefits shall begin on the first of the
month following the commissioner's date of death if the spouse
is then age 50 or over or, if a minor unmarried child or
children of the commissioner, under age 18 (age 23 in the case
of a full time student), also survive, and the child or
children are under the care of the eligible spouse. The benefit
is payable for the full month if the annuitant was alive on the
first day of the month.
    The annuity to a spouse shall be the greater of (i) 66 2/3%
of the amount of retirement annuity earned by the commissioner
on the date of death, subject to a minimum payment of 10% of
salary, provided that if an eligible spouse, regardless of age,
has in his or her care at the date of death of the commissioner
any unmarried child or children of the commissioner under age
18, the minimum annuity shall be 30% of the commissioner's
salary, plus 10% of salary on account of each minor child of
the commissioner, subject to a combined total payment on
account of a spouse and minor children not to exceed 50% of the
deceased commissioner's salary or (ii) for the spouse of a
commissioner whose death occurs on or after August 18, 2005
(the effective date of Public Act 94-621) this amendatory Act
of the 94th General Assembly, the surviving spouse annuity
shall be computed in the same manner as described in Section
13-306(a). The number of total service years used to calculate
the commissioner's annuity shall be the number of service years
used to calculate the annuity for that commissioner's surviving
spouse. In the event there shall be no spouse of the
commissioner surviving, or should a spouse die while eligible
minor children still survive the commissioner, each such child
shall be entitled to an annuity equal to 20% of salary of the
commissioner subject to a combined total payment on account of
all such children not to exceed 50% of salary of the
commissioner. The salary to be used in the calculation of these
benefits shall be the same as that prescribed for determining a
retirement annuity as provided in subsection (b) of this
Section.
    Upon the death of a commissioner occurring after
termination of a service or while in receipt of a retirement
annuity, the combined total payment to a spouse and minor
children, or to minor children alone if no eligible spouse
survives, shall be limited to 85% of the amount of retirement
annuity earned by the commissioner.
    Marriage of a child or attainment of age 18 (age 23 in the
case of a full-time student), whichever first occurs, shall
render the child ineligible for further consideration in the
payment of annuity to a spouse or in the increase in the amount
thereof. Upon attainment of ineligibility of the youngest minor
child of the commissioner, the annuity shall immediately revert
to the amount payable upon death of a commissioner leaving no
minor children surviving. If the spouse is under age 50 at such
time, the annuity as revised shall be deferred until such age
is attained.
    (e) Refunds. Refunds of additional optional contributions
shall be made on the same basis and under the same conditions
as provided under Section 13-601. Interest shall be credited on
the same basis and under the same conditions as for other
contributions.
    Optional contributions shall be accounted for in a separate
Commission's Optional Contribution Reserve. Optional
contributions under this Section shall be included in the
amount of employee contributions used to compute the tax levy
under Section 13-503.
    (f) Effective date. The effective date of this plan of
optional alternative benefits and contributions shall be the
date upon which approval was received from the U.S. Internal
Revenue Service. The plan of optional alternative benefits and
contributions shall not be available to any former employee
receiving an annuity from the Fund on the effective date,
unless said former employee re-enters service and renders at
least 3 years of additional service after the date of re-entry
as a commissioner.
(Source: P.A. 94-621, eff. 8-18-05; 95-279, eff. 1-1-08.)
 
    (40 ILCS 5/13-601)  (from Ch. 108 1/2, par. 13-601)
    Sec. 13-601. Refunds.
    (a) Withdrawal from service. Upon withdrawal from service,
an employee under age 55 (age 50 if the employee first entered
service before June 13, 1997), or an employee age 55 (age 50 if
the employee first entered service before June 13, 1997) or
over but less than 60 having less than 20 years of service, or
an employee age 60 or over having less than 5 years of service
shall be entitled, upon application, to a refund of total
contributions from salary deductions or amounts otherwise paid
under this Article by the employee. The refund shall not
include interest credited to the contributions. The Board may,
in its discretion, withhold payment of a refund for a period
not to exceed one year from the date of filing an application
for refund.
    (b) Surviving spouse's annuity contributions. A refund of
all amounts deducted from salary or otherwise contributed by an
employee for the surviving spouse's annuity shall be paid upon
retirement to any employee who on the date of retirement is
either not married or is married but whose spouse is not
eligible for a surviving spouse's annuity paid wholly or in
part under this Article. The refund shall include interest on
each contribution at the rate of 3% per annum compounded
annually from the date of the contribution to the date of the
refund.
    (c) Payment of Refunds After Death. Whenever any refund is
payable after the death of the employee or annuitant as
provided for in this Article, the refund shall be paid as
follows: to the employee's surviving spouse, but if there is no
surviving spouse then in accordance with the employee's written
designation of beneficiary filed with the Board on the
prescribed form before the employee's death. If there is no
such designation of beneficiary, then to the employee's
surviving children in equal parts to each. If there are no such
children, the refund shall be paid to the heirs of the employee
according to the law of descent and distribution of the State
of Illinois.
    If a personal representative of the estate has not been
appointed within 90 days from the date on which a refund became
payable, the refund may be applied, in the discretion of the
Board, toward the payment of the employee's or the surviving
spouse's burial expenses. Any remaining balance shall be paid
to the heirs of the employee according to the law of descent
and distribution of the State of Illinois.
    Whenever the total accumulations to the account of an
employee from employee contributions other than the
contribution for the cost of living increase, including
interest to the employee's date of withdrawal, have not been
paid to the employee and surviving spouse as a retirement or
spouse's annuity before the death of the employee and spouse, a
refund shall be paid as follows: an amount equal to the excess
of such amounts over the amounts paid on such annuities without
interest on either such amount.
    If a reversionary annuity becomes payable under Section
13-303, the refund provided in this section shall not be paid
until the death of the reversionary annuitant and the refund
otherwise payable under this section shall be then further
reduced by the amount of the reversionary annuity paid.
    (d) In lieu of annuity. Notwithstanding the provisions set
forth in subsection (a) of this section, whenever an employee's
or surviving spouse's annuity will be less than $200 per month,
the employee or surviving spouse, as the case may be, may elect
to receive a refund of accumulated employee contributions;
provided, however, that if the election is made by a surviving
spouse the refund shall be reduced by any amounts theretofore
paid to the employee in the form of an annuity.
    (e) Forfeiture of rights. An employee or surviving spouse
who receives a refund forfeits the right to receive an annuity
or any other benefit payable under this Article except that if
the refund is to a surviving spouse, any child or children of
the employee shall not be deprived of the right to receive a
child's annuity as provided in Section 13-308 of this Article,
and the payment of a child's annuity shall not reduce the
amount refundable to the surviving spouse.
(Source: P.A. 94-621, eff. 8-18-05; 95-586, eff. 8-31-07.)
 
    Section 90. The State Mandates Act is amended by adding
Section 8.33 as follows:
 
    (30 ILCS 805/8.33 new)
    Sec. 8.33. Exempt mandate. Notwithstanding Sections 6 and 8
of this Act, no reimbursement by the State is required for the
implementation of any mandate created by this amendatory Act of
the 96th General Assembly.
 
    Section 99. Effective date. This Act takes effect upon
becoming law.