093_HB0580sam001

 










                                     LRB093 05656 EFG 17166 a

 1                     AMENDMENT TO HOUSE BILL 580

 2        AMENDMENT NO.     .  Amend House Bill  580  by  replacing
 3    the title with the following:
 4        "AN ACT in relation to public employee benefits."; and

 5    by  replacing  everything  after the enacting clause with the
 6    following:

 7        "Section 5.  The Illinois  Pension  Code  is  amended  by
 8    changing   Sections   2-119.1,   5-167.2,  5-167.4,  5-167.5,
 9    6-128.2, 6-128.4, 6-164.2, 8-137,  8-138,  8-150.1,  8-164.1,
10    8-167,  8-174.1, 9-185, 11-134, 11-134.1, 11-145.1, 11-160.1,
11    11-163, 11-167, 11-170.1,  13-301,  13-302,  13-306,  13-314,
12    13-402,  13-502,  13-601,  13-603, 14-104, 15-159, and 16-128
13    and adding  Sections  8-150.2,  8-164.2,  8-230.8,  11-145.2,
14    11-160.2, 11-221.4, and 15-159.1 as follows:

15        (40 ILCS 5/2-119.1) (from Ch. 108 1/2, par. 2-119.1)
16        Sec. 2-119.1.  Automatic increase in retirement annuity.
17        (a)  A  participant  who retires after June 30, 1967, and
18    who has not received an initial increase under  this  Section
19    before  the  effective  date  of this amendatory Act of 1991,
20    shall,  in  January  or  July  next   following   the   first
21    anniversary of retirement, whichever occurs first, and in the
 
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 1    same  month of each year thereafter, but in no event prior to
 2    age 60, have the amount of the originally granted  retirement
 3    annuity  increased as follows:  for each year through 1971, 1
 4    1/2%; for each year from 1972 through 1979, 2%; and for  1980
 5    and  each  year thereafter, 3%.  Annuitants who have received
 6    an initial  increase  under  this  subsection  prior  to  the
 7    effective  date of this amendatory Act of 1991 shall continue
 8    to receive their annual increases in the same  month  as  the
 9    initial increase.
10        (b)  Beginning January 1, 1990, for eligible participants
11    who  remain in service after attaining 20 years of creditable
12    service, the 3% increases provided under subsection (a) shall
13    begin to accrue on the January 1 next following the date upon
14    which the participant (1) attains age 55, or (2)  attains  20
15    years  of  creditable  service,  whichever  occurs later, and
16    shall continue to accrue while  the  participant  remains  in
17    service;  such increases shall become payable on January 1 or
18    July 1, whichever occurs  first,  next  following  the  first
19    anniversary  of  retirement.   For any person who has service
20    credit in the System for the entire period from  January  15,
21    1969  through  December  31,  1992, regardless of the date of
22    termination of service, the reference to age 55 in clause (1)
23    of this subsection (b) shall be deemed to mean age 50.
24        This subsection (b) does not  apply  to  any  person  who
25    first becomes a member of the System after the effective date
26    of this amendatory Act of the 93rd General Assembly.
27        (c)  The   foregoing  provisions  relating  to  automatic
28    increases are not applicable to  a  participant  who  retires
29    before  having  made contributions (at the rate prescribed in
30    Section 2-126) for automatic  increases  for  less  than  the
31    equivalent  of  one  full  year.   However,  in  order  to be
32    eligible for the automatic increases, such a participant  may
33    make arrangements to pay to the system the amount required to
34    bring  the  total contributions for the automatic increase to
 
                            -3-      LRB093 05656 EFG 17166 a
 1    the equivalent of one year's contributions based upon his  or
 2    her last salary.
 3        (d)  A  participant  who terminated service prior to July
 4    1, 1967, with at least 14 years of service is entitled to  an
 5    increase  in  retirement annuity beginning January, 1976, and
 6    to additional increases in January of each year thereafter.
 7        The initial increase shall be 1 1/2%  of  the  originally
 8    granted  retirement  annuity multiplied by the number of full
 9    years that the  annuitant was  in  receipt  of  such  annuity
10    prior  to  January 1, 1972, plus 2% of the originally granted
11    retirement annuity  for  each  year  after  that  date.   The
12    subsequent annual increases shall be at the rate of 2% of the
13    originally  granted  retirement annuity for each year through
14    1979 and at the rate of 3% for 1980 and thereafter.
15        (e)  Beginning January  1,  1990,  all  automatic  annual
16    increases payable under this Section shall be calculated as a
17    percentage  of  the  total annuity payable at the time of the
18    increase, including previous  increases  granted  under  this
19    Article.
20    (Source: P.A. 86-273; 87-794; 87-1265.)

21        (40 ILCS 5/5-167.2) (from Ch. 108 1/2, par. 5-167.2)
22        Sec.  5-167.2.  Retirement  before  September 1, 1967.  A
23    retired policeman, qualifying  for  minimum  annuity  or  who
24    retired from service with 20 or more years of service, before
25    September  1,  1967,  shall, in January of the year following
26    the year he attains the age of 65, or in January of the  year
27    1970,  if then more than 65 years of age, have his then fixed
28    and payable monthly annuity increased by an amount  equal  to
29    2%  of  the  original  grant  of  annuity,  for each year the
30    policeman was in receipt of annuity payments after  the  year
31    in  which  he  attains,  or  did  attain  the  age of 63.  An
32    additional  2%  increase  in  such  then  fixed  and  payable
33    original  granted  annuity  shall  accrue  in  each   January
 
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 1    thereafter.    Beginning  January  1,  1986, the rate of such
 2    increase shall be 3% instead of 2%.
 3        The provisions of the preceding paragraph of this Section
 4    apply only to a retired policeman eligible for such increases
 5    in his annuity who contributes to the Fund a sum equal to  $5
 6    for each full year of credited service upon which his annuity
 7    was computed.  All such sums contributed shall be placed in a
 8    Supplementary  Payment  Reserve  and  shall  be  used for the
 9    purposes of such Fund account.
10        Beginning with the monthly annuity payment due  in  July,
11    1982,  the  fixed and granted monthly annuity payment for any
12    policeman who retired from the service, before  September  1,
13    1976,  at age 50 or over with 20 or more years of service and
14    entitled to an annuity on January 1, 1974, shall be not  less
15    than $400.  It is the intent of the General Assembly that the
16    change  made  in  this Section by this amendatory Act of 1982
17    shall apply retroactively to July 1, 1982.
18        Beginning with the monthly annuity payment due on January
19    1, 1986, the fixed and granted monthly  annuity  payment  for
20    any  policeman who retired from the service before January 1,
21    1986, at age 50 or over with 20 or more years of service,  or
22    any  policeman who retired from service due to termination of
23    disability and who is entitled to an annuity  on  January  1,
24    1986, shall be not less than $475.
25        Beginning with the monthly annuity payment due on January
26    1,  1992,  the  fixed and granted monthly annuity payment for
27    any policeman who retired from the service before January  1,
28    1992, at age 50 or over with 20 or more years of service, and
29    for any policeman who retired from service due to termination
30    of disability and who is entitled to an annuity on January 1,
31    1992, shall be not less than $650.
32        Beginning with the monthly annuity payment due on January
33    1,  1993,  the  fixed and granted monthly annuity payment for
34    any policeman who retired from the service before January  1,
 
                            -5-      LRB093 05656 EFG 17166 a
 1    1993, at age 50 or over with 20 or more years of service, and
 2    for any policeman who retired from service due to termination
 3    of disability and who is entitled to an annuity on January 1,
 4    1993, shall be not less than $750.
 5        Beginning with the monthly annuity payment due on January
 6    1,  1994,  the  fixed and granted monthly annuity payment for
 7    any policeman who retired from the service before January  1,
 8    1994, at age 50 or over with 20 or more years of service, and
 9    for any policeman who retired from service due to termination
10    of disability and who is entitled to an annuity on January 1,
11    1994, shall be not less than $850.
12        Beginning with the monthly annuity payment due on January
13    1,  2004,  the  fixed and granted monthly annuity payment for
14    any policeman who retired from the service before January  1,
15    2004, at age 50 or over with 20 or more years of service, and
16    for any policeman who retired from service due to termination
17    of disability and who is entitled to an annuity on January 1,
18    2004, shall be not less than $950.
19        Beginning with the monthly annuity payment due on January
20    1,  2005,  the  fixed and granted monthly annuity payment for
21    any policeman who retired from the service before January  1,
22    2005, at age 50 or over with 20 or more years of service, and
23    for any policeman who retired from service due to termination
24    of disability and who is entitled to an annuity on January 1,
25    2005, shall be not less than $1,050.
26        The  difference  in amount between the original fixed and
27    granted monthly annuity of any such policeman on the date  of
28    his  retirement  from  the  service  and  the monthly annuity
29    provided for in the immediately preceding paragraph shall  be
30    paid  as  a  supplement  in  the  manner  set  forth  in  the
31    immediately following paragraph.
32        To  defray  the annual cost of the increases indicated in
33    the preceding part of   this  Section,  the  annual  interest
34    income accruing from investments held by this Fund, exclusive
 
                            -6-      LRB093 05656 EFG 17166 a
 1    of gains or losses on sales or exchanges of assets during the
 2    year,  over  and  above 4% a year shall be used to the extent
 3    necessary and available to finance the cost of such increases
 4    for the following year and such amount shall  be  transferred
 5    as  of the end of each year beginning with the year 1969 to a
 6    Fund account designated as the Supplementary Payment  Reserve
 7    from the Interest and Investment Reserve set forth in Section
 8    5-207.
 9        In  the  event  the  funds  in  the Supplementary Payment
10    Reserve in any year arising from:  (1)  the  interest  income
11    accruing  in  the preceding  year above 4% a year and (2) the
12    contributions by retired persons are insufficient to make the
13    total  payments  to  all  persons  entitled  to  the  annuity
14    specified in this Section and (3) any interest earnings  over
15    4%  a  year  beginning  with  the  year  1969  which were not
16    previously used to finance  such  increases  and  which  were
17    transferred to the Prior Service Annuity Reserve, may be used
18    to  the  extent necessary and available to provide sufficient
19    funds to finance such increases for the current year and such
20    sums shall be transferred  from  the  Prior  Service  Annuity
21    Reserve.   In  the  event  the  total  money available in the
22    Supplementary  Payment  Reserve   from   such   sources   are
23    insufficient  to  make  the  total  payments  to  all persons
24    entitled to such increases  for  the  year,  a  proportionate
25    amount  computed  as  the ratio of the money available to the
26    total of the total payments specified for that year shall  be
27    paid to each person for that year.
28        The  Fund  shall  be  obligated  for  the  payment of the
29    increases in  annuity as provided for in this Section only to
30    the extent that the assets for such purpose are available.
31    (Source: P.A. 91-357, eff. 7-29-99.)

32        (40 ILCS 5/5-167.4) (from Ch. 108 1/2, par. 5-167.4)
33        Sec. 5-167.4. Widow annuitant minimum annuity.
 
                            -7-      LRB093 05656 EFG 17166 a
 1        (a)  Notwithstanding any other provision of this Article,
 2    beginning January 1, 1996,  the  minimum  amount  of  widow's
 3    annuity  payable  to  any person who is entitled to receive a
 4    widow's annuity under this Article is $700 per month, without
 5    regard to whether the deceased policeman is in service on  or
 6    after the effective date of this amendatory Act of 1995.
 7        Notwithstanding  any  other  provision  of  this Article,
 8    beginning January 1, 1999,  the  minimum  amount  of  widow's
 9    annuity  payable  to  any person who is entitled to receive a
10    widow's annuity under this Article is $800 per month, without
11    regard to whether the deceased policeman is in service on  or
12    after the effective date of this amendatory Act of 1998.
13        Notwithstanding  any  other  provision  of  this Article,
14    beginning January 1, 2004,  the  minimum  amount  of  widow's
15    annuity  payable  to  any person who is entitled to receive a
16    widow's annuity under this Article is $900 per month, without
17    regard to whether the deceased policeman is in service on  or
18    after  the  effective date of this amendatory Act of the 93rd
19    General Assembly.
20        Notwithstanding any  other  provision  of  this  Article,
21    beginning  January  1,  2005,  the  minimum amount of widow's
22    annuity payable to any person who is entitled  to  receive  a
23    widow's  annuity  under  this  Article  is  $1,000 per month,
24    without regard  to  whether  the  deceased  policeman  is  in
25    service on or after the effective date of this amendatory Act
26    of the 93rd General Assembly.
27        (b)  Effective  January  1,  1994,  the minimum amount of
28    widow's annuity shall be $700 per  month  for  the  following
29    classes  of  widows,  without  regard to whether the deceased
30    policeman is in service on or after  the  effective  date  of
31    this amendatory Act of 1993: (1) the widow of a policeman who
32    dies  in service with at least 10 years of service credit, or
33    who dies in service after June 30, 1981; and (2) the widow of
34    a policeman who withdraws from service with 20 or more  years
 
                            -8-      LRB093 05656 EFG 17166 a
 1    of  service  credit  and does not withdraw a refund, provided
 2    that  the  widow  is  married  to  the  policeman  before  he
 3    withdraws from service.
 4        (c)  The city, in addition to the contributions otherwise
 5    made by it under the other provisions of this Article,  shall
 6    make  such  contributions  as  are  necessary for the minimum
 7    widow's annuities provided under this Section in  the  manner
 8    prescribed in Section 5-175.
 9    (Source: P.A. 89-12, eff. 4-20-95; 90-766, eff. 8-14-98.)

10        (40 ILCS 5/5-167.5) (from Ch. 108 1/2, par. 5-167.5)
11        Sec. 5-167.5.  Payments to city Group health benefit.
12        (a)  For  the  purposes of this Section, "city annuitant"
13    means a person  receiving  an  age  and  service  annuity,  a
14    widow's  annuity,  a  child's  annuity,  or a minimum annuity
15    under this Article as a direct result of previous  employment
16    by the City of Chicago ("the city").
17        (b)  The  board  shall  pay to the city, on behalf of the
18    board's city annuitants who participate in any of the  city's
19    health care plans, the following amounts:
20             (1)  From  July  1,  2003 through June 30, 2008, $85
21        per month for each such annuitant who is not eligible  to
22        receive Medicare benefits and $55 per month for each such
23        annuitant who is eligible to receive Medicare benefits.
24             (2)  From  July  1,  2008 through June 30, 2013, $95
25        per month for each such annuitant who is not eligible  to
26        receive Medicare benefits and $65 per month for each such
27        annuitant who is eligible to receive Medicare benefits.
28        The  payments  described in this subsection shall be paid
29    from the  tax  levy  authorized  under  Section  5-168;  such
30    amounts  shall  be credited to the reserve for group hospital
31    care and group medical and surgical plan  benefits,  and  all
32    payments  to the city required under this subsection shall be
33    charged against it.
 
                            -9-      LRB093 05656 EFG 17166 a
 1        (c)  The city health  care  plans  referred  to  in  this
 2    Section  and  the  board's  payments  to  the city under this
 3    Section are not and shall not be construed to be  pension  or
 4    retirement  benefits for the purposes of Section 5 of Article
 5    XIII of the Illinois Constitution of 1970.
 6        (a)  For the purposes of this  Section:  (1)  "annuitant"
 7    means  a person receiving an age and service annuity, a prior
 8    service annuity, a widow's annuity, a widow's  prior  service
 9    annuity,  or  a minimum annuity, under Article 5, 6, 8 or 11,
10    by reason of previous  employment  by  the  City  of  Chicago
11    (hereinafter,  in  this  Section,  "the city"); (2) "Medicare
12    Plan annuitant" means an annuitant described in item (1)  who
13    is eligible for Medicare benefits; and (3) "non-Medicare Plan
14    annuitant"  means  an  annuitant described in item (1) who is
15    not eligible for Medicare benefits.
16        (b)  The  city  shall  offer  group  health  benefits  to
17    annuitants and their eligible  dependents  through  June  30,
18    2003.   The  basic city health care plan available as of June
19    30, 1988 (hereinafter called the basic city plan) shall cease
20    to be a plan offered by the  city,  except  as  specified  in
21    subparagraphs  (4)  and (5) below, and shall be closed to new
22    enrollment or transfer of coverage for any non-Medicare  Plan
23    annuitant  as  of  June  27,  1997.   The  city  shall  offer
24    non-Medicare  Plan  annuitants  and their eligible dependents
25    the option of enrolling in its Annuitant  Preferred  Provider
26    Plan  and  may offer additional plans for any annuitant.  The
27    city may amend, modify, or terminate any  of  its  additional
28    plans  at  its sole discretion.  If the city offers more than
29    one annuitant  plan,  the  city  shall  allow  annuitants  to
30    convert  coverage  from  one  city annuitant plan to another,
31    except the basic city plan, during times  designated  by  the
32    city,  which  periods  of time shall occur at least annually.
33    For the period dating from June 27,  1997  through  June  30,
34    2003,  monthly  premium rates may be increased for annuitants
 
                            -10-     LRB093 05656 EFG 17166 a
 1    during the time of their participation in non-Medicare plans,
 2    except as provided in subparagraphs (1) through (4)  of  this
 3    subsection.
 4             (1)  For  non-Medicare  Plan  annuitants who retired
 5        prior to  January  1,  1988,  the  annuitant's  share  of
 6        monthly premium for non-Medicare Plan coverage only shall
 7        not  exceed the highest premium rate chargeable under any
 8        city non-Medicare Plan annuitant coverage as of  December
 9        1, 1996.
10             (2)  For  non-Medicare Plan annuitants who retire on
11        or after  January  1,  1988,  the  annuitant's  share  of
12        monthly premium for non-Medicare Plan coverage only shall
13        be  the  rate in effect on December 1, 1996, with monthly
14        premium increases to take effect no sooner than April  1,
15        1998  at  the  lower  of  (i) the premium rate determined
16        pursuant to subsection (g) or (ii) 10% of the immediately
17        previous month's rate for similar coverage.
18             (3)  In  no  event  shall  any   non-Medicare   Plan
19        annuitant's  share  of  monthly  premium for non-Medicare
20        Plan coverage  exceed  10%  of  the  annuitant's  monthly
21        annuity.
22             (4)  Non-Medicare  Plan  annuitants who are enrolled
23        in the basic city plan as of July 1, 1998 may  remain  in
24        the  basic city plan, if they so choose, on the condition
25        that they are not entitled to the caps on rates set forth
26        in subparagraphs (1) through (3), and their premium  rate
27        shall   be   the   rate  determined  in  accordance  with
28        subsections (c) and (g).
29             (5)  Medicare  Plan  annuitants  who  are  currently
30        enrolled in the basic city  plan  for  Medicare  eligible
31        annuitants  may  remain  in that plan, if they so choose,
32        through June 30, 2003.  Annuitants shall not  be  allowed
33        to  enroll  in  or  transfer into the basic city plan for
34        Medicare eligible annuitants on or after  July  1,  1999.
 
                            -11-     LRB093 05656 EFG 17166 a
 1        The   city   shall   continue   to   offer  annuitants  a
 2        supplemental  Medicare   Plan   for   Medicare   eligible
 3        annuitants  through June 30, 2003, and the city may offer
 4        additional plans to Medicare eligible annuitants  in  its
 5        sole  discretion.   All  Medicare  Plan annuitant monthly
 6        rates shall be determined in accordance with  subsections
 7        (c) and (g).
 8        (c)  The  city  shall  pay 50% of the aggregated costs of
 9    the  claims  or  premiums,  whichever   is   applicable,   as
10    determined  in  accordance with subsection (g), of annuitants
11    and their dependents under all health care plans  offered  by
12    the  city.  The city may reduce its obligation by application
13    of  price  reductions  obtained  as  a  result  of  financial
14    arrangements with providers or plan administrators.
15        (d)  From January 1, 1993 until June 30, 2003, the  board
16    shall  pay  to  the  city  on  behalf  of each of the board's
17    annuitants who chooses to participate in any  of  the  city's
18    plans the following amounts: up to a maximum of $75 per month
19    for  each  such  annuitant  who  is  not qualified to receive
20    medicare benefits, and up to a maximum of $45 per  month  for
21    each  such  annuitant  who  is  qualified to receive medicare
22    benefits.
23        The payments described in this subsection shall  be  paid
24    from  the  tax  levy  authorized  under  Section  5-168; such
25    amounts shall be credited to the reserve for  group  hospital
26    care  and  group  medical and surgical plan benefits, and all
27    payments to the city required under this subsection shall  be
28    charged against it.
29        (e)  The city's obligations under subsections (b) and (c)
30    shall  terminate  on  June  30,  2003,  except with regard to
31    covered expenses incurred but not paid as of that date.  This
32    subsection shall not affect other  obligations  that  may  be
33    imposed by law.
34        (f)  The  group  coverage plans described in this Section
 
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 1    are  not  and  shall  not  be  construed  to  be  pension  or
 2    retirement benefits for purposes of Section 5 of Article XIII
 3    of the Illinois Constitution of 1970.
 4        (g)  For each annuitant plan offered  by  the  city,  the
 5    aggregate  cost  of claims, as reflected in the claim records
 6    of the plan administrator, shall be estimated  by  the  city,
 7    based upon a written determination by a qualified independent
 8    actuary  to  be appointed and paid by the city and the board.
 9    If the estimated annual cost for each annuitant plan  offered
10    by  the  city  is  more  than  the  estimated  amount  to  be
11    contributed by the city for that plan pursuant to subsections
12    (b) and (c) during that year plus the estimated amounts to be
13    paid  pursuant  to  subsection  (d)  and by the other pension
14    boards on  behalf  of  other  participating  annuitants,  the
15    difference  shall  be paid by all annuitants participating in
16    the plan, except as provided in subsection  (b).   The  city,
17    based  upon  the  determination  of  the independent actuary,
18    shall set the monthly amounts to be paid by the participating
19    annuitants.   The board may deduct the amounts to be paid  by
20    its  annuitants  from  the  participating annuitants' monthly
21    annuities.
22        If it is determined from the city's annual audit, or from
23    audited experience data, that the total amount  paid  by  all
24    participating annuitants was more or less than the difference
25    between  (1)  the  cost  of  providing  the group health care
26    plans, and (2) the sum of the amount to be paid by  the  city
27    as  determined  under  subsection (c) and the amounts paid by
28    all the pension boards, then the independent actuary and  the
29    city  shall  account  for the excess or shortfall in the next
30    year's  payments  by  annuitants,  except  as   provided   in
31    subsection (b).
32        (h)  An  annuitant  may  elect to terminate coverage in a
33    plan at the end of any month, which election shall  terminate
34    the  annuitant's  obligation  to contribute toward payment of
 
                            -13-     LRB093 05656 EFG 17166 a
 1    the excess described in subsection (g).
 2        (i)  The city shall advise  the  board  of  all  proposed
 3    premium  increases  for health care at least 75 days prior to
 4    the effective date of the change, and any increase  shall  be
 5    prospective only.
 6    (Source: P.A. 92-599, eff. 6-28-02.)

 7        (40 ILCS 5/6-128.2) (from Ch. 108 1/2, par. 6-128.2)
 8        Sec. 6-128.2. Minimum retirement annuities.
 9        (a)  Beginning  with  the monthly payment due in January,
10    1988, the monthly annuity  payment  for  any  person  who  is
11    entitled  to  receive a retirement annuity under this Article
12    in January, 1990 and has retired from service at  age  50  or
13    over with 20 or more years of service, and for any person who
14    retires  from  service on or after January 24, 1990 at age 50
15    or over with 20 or more years of service, shall not  be  less
16    than $475 per month. The $475 minimum annuity is exclusive of
17    any automatic annual increases provided by Sections 6-164 and
18    6-164.1,  but not exclusive of previous raises in the minimum
19    annuity as provided by any Section of this Article.
20        Beginning January 1, 1992, the minimum retirement annuity
21    payable to any person who has retired from service at age  50
22    or  over  with 20 or more years of service and is entitled to
23    receive a retirement annuity under this Article on that date,
24    or who retires from service at age 50 or over with 20 or more
25    years of service after that date, shall be $650 per month.
26        Beginning January 1, 1993, the minimum retirement annuity
27    payable to any person who has retired from service at age  50
28    or  over  with 20 or more years of service and is entitled to
29    receive a retirement annuity under this Article on that date,
30    or who retires from service at age 50 or over with 20 or more
31    years of service after that date, shall be $750 per month.
32        Beginning January 1, 1994, the minimum retirement annuity
33    payable to any person who has retired from service at age  50
 
                            -14-     LRB093 05656 EFG 17166 a
 1    or  over  with 20 or more years of service and is entitled to
 2    receive a retirement annuity under this Article on that date,
 3    or who retires from service at age 50 or over with 20 or more
 4    years of service after that date, shall be $850 per month.
 5        Beginning January 1, 2004, the minimum retirement annuity
 6    payable to any person who has retired from service at age  50
 7    or  over  with 20 or more years of service and is entitled to
 8    receive a retirement annuity under this Article on that date,
 9    or who retires from service at age 50 or over with 20 or more
10    years of service after that date, shall be $950 per month.
11        Beginning January 1, 2005, the minimum retirement annuity
12    payable to any person who has retired from service at age  50
13    or  over  with 20 or more years of service and is entitled to
14    receive a retirement annuity under this Article on that date,
15    or who retires from service at age 50 or over with 20 or more
16    years of service after that date, shall be $1,050 per month.
17        The minimum annuities established by this subsection  (a)
18    do include previous raises in the minimum annuity as provided
19    by  any  Section of this Article, but do not include any sums
20    which have been added or will be added to annuity payments by
21    the automatic annual increases provided by Sections 6-164 and
22    6-164.1.  Such annual increases shall be paid in addition  to
23    the minimum amounts specified in this subsection.
24        (b)  Notwithstanding any other provision of this Article,
25    beginning  January  1,  1990,  the minimum retirement annuity
26    payable to any person who is entitled to receive a retirement
27    annuity under this Article on that date  shall  be  $475  per
28    month.
29        (c)  This  Section shall apply to all persons receiving a
30    retirement annuity under  this  Article,  without  regard  to
31    whether  the  retirement of the fireman occurred prior to the
32    effective date of this amendatory Act of 1993.
33    (Source: P.A.  86-273;  86-1027;  86-1028;  86-1475;  87-849;
34    87-1265.)
 
                            -15-     LRB093 05656 EFG 17166 a
 1        (40 ILCS 5/6-128.4) (from Ch. 108 1/2, par. 6-128.4)
 2        Sec. 6-128.4. Minimum widow's annuities.
 3        (a)  Notwithstanding any other provision of this Article,
 4    beginning January 1, 1996,  the  minimum  amount  of  widow's
 5    annuity  payable  to  any person who is entitled to receive a
 6    widow's annuity under this Article is $700 per month, without
 7    regard to whether the deceased fireman is in  service  on  or
 8    after the effective date of this amendatory Act of 1995.
 9        (b)  Notwithstanding  Section  6-128.3, beginning January
10    1, 1994, the minimum widow's annuity under this Article shall
11    be $700 per month  for  (1)  all  persons  receiving  widow's
12    annuities  on  that  date  who are survivors of employees who
13    retired at age 50 or over with at least 20 years of  service,
14    and (2) persons who become eligible for widow's annuities and
15    are survivors of employees who retired at age 50 or over with
16    at least 20 years of service.
17        (c)  Notwithstanding  Section  6-128.3, beginning January
18    1, 1999, the minimum widow's annuity under this Article shall
19    be $800 per month  for  (1)  all  persons  receiving  widow's
20    annuities  on  that  date  who are survivors of employees who
21    retired at age 50 or over with at least 20 years of  service,
22    and (2) persons who become eligible for widow's annuities and
23    are survivors of employees who retired at age 50 or over with
24    at least 20 years of service.
25        (d)  Notwithstanding  Section  6-128.3, beginning January
26    1, 2004, the minimum widow's annuity under this Article shall
27    be $900 per month  for  (1)  all  persons  receiving  widow's
28    annuities  on  that  date  who are survivors of employees who
29    retired at age 50 or over with at least 20 years of  service,
30    and (2) persons who become eligible for widow's annuities and
31    are survivors of employees who retired at age 50 or over with
32    at least 20 years of service.
33        (e)  Notwithstanding  Section  6-128.3, beginning January
34    1, 2005, the minimum widow's annuity under this Article shall
 
                            -16-     LRB093 05656 EFG 17166 a
 1    be $1,000 per month for (1)  all  persons  receiving  widow's
 2    annuities  on  that  date  who are survivors of employees who
 3    retired at age 50 or over with at least 20 years of  service,
 4    and (2) persons who become eligible for widow's annuities and
 5    are survivors of employees who retired at age 50 or over with
 6    at least 20 years of service.
 7    (Source: P.A. 89-136, eff. 7-14-95; 90-766, eff. 8-14-98.)

 8        (40 ILCS 5/6-164.2) (from Ch. 108 1/2, par. 6-164.2)
 9        Sec. 6-164.2.  Payments to city Group health benefit.
10        (a)  For  the  purposes of this Section, "city annuitant"
11    means a person  receiving  an  age  and  service  annuity,  a
12    widow's  annuity,  a  child's  annuity,  or a minimum annuity
13    under this Article as a direct result of previous  employment
14    by the City of Chicago ("the city").
15        (b)  The  board  shall  pay to the city, on behalf of the
16    board's city annuitants who participate in any of the  city's
17    health care plans, the following amounts:
18             (1)  From  July  1,  2003 through June 30, 2008, $85
19        per month for each such annuitant who is not eligible  to
20        receive Medicare benefits and $55 per month for each such
21        annuitant who is eligible to receive Medicare benefits.
22             (2)  From  July  1,  2008 through June 30, 2013, $95
23        per month for each such annuitant who is not eligible  to
24        receive Medicare benefits and $65 per month for each such
25        annuitant who is eligible to receive Medicare benefits.
26        The  payments  described in this subsection shall be paid
27    from the  tax  levy  authorized  under  Section  6-165;  such
28    amounts  shall  be credited to the reserve for group hospital
29    care and group medical and surgical plan  benefits,  and  all
30    payments  to the city required under this subsection shall be
31    charged against it.
32        (c)  The city health  care  plans  referred  to  in  this
33    Section  and  the  board's  payments  to  the city under this
 
                            -17-     LRB093 05656 EFG 17166 a
 1    Section are not and shall not be construed to be  pension  or
 2    retirement  benefits for the purposes of Section 5 of Article
 3    XIII of the Illinois Constitution of 1970.
 4        (a)  For the purposes of this  Section:  (1)  "annuitant"
 5    means  a person receiving an age and service annuity, a prior
 6    service annuity, a widow's annuity, a widow's  prior  service
 7    annuity,  or  a minimum annuity, under Article 5, 6, 8 or 11,
 8    by reason of previous  employment  by  the  City  of  Chicago
 9    (hereinafter,  in  this  Section,  "the city"); (2) "Medicare
10    Plan annuitant" means an annuitant described in item (1)  who
11    is eligible for Medicare benefits; and (3) "non-Medicare Plan
12    annuitant"  means  an  annuitant described in item (1) who is
13    not eligible for Medicare benefits.
14        (b)  The  city  shall  offer  group  health  benefits  to
15    annuitants and their eligible  dependents  through  June  30,
16    2003.  The  basic  city health care plan available as of June
17    30, 1988 (hereinafter called the basic city plan) shall cease
18    to be a plan offered by the  city,  except  as  specified  in
19    subparagraphs  (4)  and (5) below, and shall be closed to new
20    enrollment or transfer of coverage for any non-Medicare  Plan
21    annuitant  as  of  June  27,  1997.   The  city  shall  offer
22    non-Medicare  Plan  annuitants  and their eligible dependents
23    the option of enrolling in its Annuitant  Preferred  Provider
24    Plan  and  may offer additional plans for any annuitant.  The
25    city may amend, modify, or terminate any  of  its  additional
26    plans  at  its sole discretion.  If the city offers more than
27    one annuitant  plan,  the  city  shall  allow  annuitants  to
28    convert  coverage  from  one  city annuitant plan to another,
29    except the basic city plan, during times  designated  by  the
30    city,  which  periods  of time shall occur at least annually.
31    For the period dating from June 27,  1997  through  June  30,
32    2003,  monthly  premium rates may be increased for annuitants
33    during the time of their participation in non-Medicare plans,
34    except as provided in subparagraphs (1) through (4)  of  this
 
                            -18-     LRB093 05656 EFG 17166 a
 1    subsection.
 2             (1)  For  non-Medicare  Plan  annuitants who retired
 3        prior to  January  1,  1988,  the  annuitant's  share  of
 4        monthly premium for non-Medicare Plan coverage only shall
 5        not  exceed the highest premium rate chargeable under any
 6        city non-Medicare Plan annuitant coverage as of  December
 7        1, 1996.
 8             (2)  For  non-Medicare Plan annuitants who retire on
 9        or after  January  1,  1988,  the  annuitant's  share  of
10        monthly premium for non-Medicare Plan coverage only shall
11        be  the  rate in effect on December 1, 1996, with monthly
12        premium increases to take effect no sooner than April  1,
13        1998  at  the  lower  of  (i) the premium rate determined
14        pursuant to subsection (g) or (ii) 10% of the immediately
15        previous month's rate for similar coverage.
16             (3)  In  no  event  shall  any   non-Medicare   Plan
17        annuitant's  share  of  monthly  premium for non-Medicare
18        Plan coverage  exceed  10%  of  the  annuitant's  monthly
19        annuity.
20             (4)  Non-Medicare  Plan  annuitants who are enrolled
21        in the basic city plan as of July 1, 1998 may  remain  in
22        the  basic city plan, if they so choose, on the condition
23        that they are not entitled to the caps on rates set forth
24        in subparagraphs (1) through (3), and their premium  rate
25        shall   be   the   rate  determined  in  accordance  with
26        subsections (c) and (g).
27             (5)  Medicare  Plan  annuitants  who  are  currently
28        enrolled in the basic city  plan  for  Medicare  eligible
29        annuitants  may  remain  in that plan, if they so choose,
30        through June 30, 2003.  Annuitants shall not  be  allowed
31        to  enroll  in  or  transfer into the basic city plan for
32        Medicare eligible annuitants on or after  July  1,  1999.
33        The   city   shall   continue   to   offer  annuitants  a
34        supplemental  Medicare   Plan   for   Medicare   eligible
 
                            -19-     LRB093 05656 EFG 17166 a
 1        annuitants  through June 30, 2003, and the city may offer
 2        additional plans to Medicare eligible annuitants  in  its
 3        sole  discretion.   All  Medicare  Plan annuitant monthly
 4        rates shall be determined in accordance with  subsections
 5        (c) and (g).
 6        (c)  The  city  shall  pay 50% of the aggregated costs of
 7    the  claims  or  premiums,  whichever   is   applicable,   as
 8    determined  in  accordance with subsection (g), of annuitants
 9    and their dependents under all health care plans  offered  by
10    the  city.  The city may reduce its obligation by application
11    of  price  reductions  obtained  as  a  result  of  financial
12    arrangements with providers or plan administrators.
13        (d)  From January 1, 1993 until June 30, 2003, the  board
14    shall  pay  to  the  city  on  behalf  of each of the board's
15    annuitants who chooses to participate in any  of  the  city's
16    plans the following amounts: up to a maximum of $75 per month
17    for  each  such  annuitant  who  is  not qualified to receive
18    medicare benefits, and up to a maximum of $45 per  month  for
19    each  such  annuitant  who  is  qualified to receive medicare
20    benefits.
21        The payments described in this subsection shall  be  paid
22    from  the  tax  levy  authorized  under  Section  6-165; such
23    amounts shall be credited to the reserve for  group  hospital
24    care  and  group  medical and surgical plan benefits, and all
25    payments to the city required under this subsection shall  be
26    charged against it.
27        (e)  The city's obligations under subsections (b) and (c)
28    shall  terminate  on  June  30,  2003,  except with regard to
29    covered expenses incurred but not paid as of that date.  This
30    subsection shall not affect other  obligations  that  may  be
31    imposed by law.
32        (f)  The  group  coverage plans described in this Section
33    are  not  and  shall  not  be  construed  to  be  pension  or
34    retirement benefits for purposes of Section 5 of Article XIII
 
                            -20-     LRB093 05656 EFG 17166 a
 1    of the Illinois Constitution of 1970.
 2        (g)  For each annuitant plan offered  by  the  city,  the
 3    aggregate  cost  of claims, as reflected in the claim records
 4    of the plan administrator, shall be estimated  by  the  city,
 5    based upon a written determination by a qualified independent
 6    actuary  to  be appointed and paid by the city and the board.
 7    If the estimated annual cost for each annuitant plan  offered
 8    by  the  city  is  more  than  the  estimated  amount  to  be
 9    contributed by the city for that plan pursuant to subsections
10    (b) and (c) during that year plus the estimated amounts to be
11    paid  pursuant  to  subsection  (d)  and by the other pension
12    boards on  behalf  of  other  participating  annuitants,  the
13    difference  shall  be paid by all annuitants participating in
14    the plan, except as provided in subsection  (b).   The  city,
15    based  upon  the  determination  of  the independent actuary,
16    shall set the monthly amounts to be paid by the participating
17    annuitants.   The board may deduct the amounts to be paid  by
18    its  annuitants  from  the  participating annuitants' monthly
19    annuities.
20        If it is determined from the city's annual audit, or from
21    audited experience data, that the total amount  paid  by  all
22    participating annuitants was more or less than the difference
23    between  (1)  the  cost  of  providing  the group health care
24    plans, and (2) the sum of the amount to be paid by  the  city
25    as  determined  under  subsection (c) and the amounts paid by
26    all the pension boards, then the independent actuary and  the
27    city  shall  account  for the excess or shortfall in the next
28    year's  payments  by  annuitants,  except  as   provided   in
29    subsection (b).
30        (h)  An  annuitant  may  elect to terminate coverage in a
31    plan at the end of any month, which election shall  terminate
32    the  annuitant's  obligation  to contribute toward payment of
33    the excess described in subsection (g).
34        (i)  The city shall advise  the  board  of  all  proposed
 
                            -21-     LRB093 05656 EFG 17166 a
 1    premium  increases  for health care at least 75 days prior to
 2    the effective date of the change, and any increase  shall  be
 3    prospective only.
 4    (Source: P.A. 92-599, eff. 6-28-02.)

 5        (40 ILCS 5/8-137) (from Ch. 108 1/2, par. 8-137)
 6        Sec. 8-137.  Automatic increase in annuity.
 7        (a)  An  employee  who  retired  or  retires from service
 8    after December 31, 1959 and before January  1,  1987,  having
 9    attained  age 60 or more, shall, in January of the year after
10    the year in which the first anniversary of retirement occurs,
11    have the amount of his then fixed and payable monthly annuity
12    increased by 1 1/2%, and such first fixed annuity as  granted
13    at  retirement  increased  by  a further 1 1/2% in January of
14    each year thereafter.  Beginning with  January  of  the  year
15    1972,  such  increases  shall be at the rate of 2% in lieu of
16    the aforesaid specified 1 1/2%, and beginning with January of
17    the year 1984 such increases shall be  at  the  rate  of  3%.
18    Beginning  in January of 1999, such increases shall be at the
19    rate  of  3%  of  the  currently  payable  monthly   annuity,
20    including   any   increases  previously  granted  under  this
21    Article.  An employee who retires on annuity  after  December
22    31, 1959 and before January 1, 1987, but before age 60, shall
23    receive such increases beginning in January of the year after
24    the year in which he attains age 60.
25        An  employee who retires from service on or after January
26    1, 1987 shall, upon the first annuity payment date  following
27    the  first anniversary of the date of retirement, or upon the
28    first annuity payment date following attainment  of  age  60,
29    whichever  occurs  later,  have  his  then  fixed and payable
30    monthly annuity increased by 3%, and such  annuity  shall  be
31    increased  by  an additional 3% of the original fixed annuity
32    on the same date each year thereafter.  Beginning in  January
33    of  1999,  such  increases  shall be at the rate of 3% of the
 
                            -22-     LRB093 05656 EFG 17166 a
 1    currently payable monthly annuity,  including  any  increases
 2    previously granted under this Article.
 3        (a-5)  Notwithstanding  the provisions of subsection (a),
 4    upon the first annuity payment date following (1)  the  third
 5    anniversary  of  retirement, (2) the attainment of age 53, or
 6    (3) January 1, 2002, the date 60  days  after  the  effective
 7    date  of  this  amendatory  Act of the 92nd General Assembly,
 8    whichever occurs latest, the monthly annuity of  an  employee
 9    who  retires on annuity prior to the attainment of age 60 and
10    who has not received an increase under subsection  (a)  shall
11    be  increased  by 3%, and the such annuity shall be increased
12    by an additional 3% of the current payable  monthly  annuity,
13    including  any  such  increases previously granted under this
14    Article,  on  the  same  date  each  year  thereafter.    The
15    increases  provided  under this subsection are in lieu of the
16    increases provided in subsection (a).
17        (a-6) Notwithstanding the provisions of  subsections  (a)
18    and (a-5), for all calendar years following the year in which
19    this  amendatory  Act  of  the  93rd  General  Assembly takes
20    effect, an increase in annuity under this Section that  would
21    otherwise  take  effect  at  any  time  during the year shall
22    instead take effect in January of that year.
23        (b)  Subsections  (a),  and  (a-5),  and  (a-6)  are  not
24    applicable to an  employee  retiring  and  receiving  a  term
25    annuity,  as  herein  defined, nor to any otherwise qualified
26    employee who retires before he makes  employee  contributions
27    (at  the  1/2  of  1%  rate as provided in this Act) for this
28    additional annuity for not less than the  equivalent  of  one
29    full year.  Such employee, however, shall make arrangement to
30    pay  to  the  fund a balance of such 1/2 of 1% contributions,
31    based on his final salary, as  will  bring  such  1/2  of  1%
32    contributions,  computed  without interest, to the equivalent
33    of or completion of one year's contributions.
34        Beginning  with  January,  1960,  each   employee   shall
 
                            -23-     LRB093 05656 EFG 17166 a
 1    contribute  by  means  of salary deductions 1/2 of 1% of each
 2    salary payment, concurrently with  and  in  addition  to  the
 3    employee contributions otherwise made for annuity purposes.
 4        Each such additional contribution shall be credited to an
 5    account  in  the  prior  service annuity reserve, to be used,
 6    together with city contributions, to defray the cost  of  the
 7    specified annuity increments.  Any balance in such account at
 8    the  beginning  of  each calendar year shall be credited with
 9    interest at the rate of 3% per annum.
10        Such   additional   employee   contributions   are    not
11    refundable,  except  to an employee who withdraws and applies
12    for refund under this Article, and  in  cases  where  a  term
13    annuity  becomes  payable.   In  such cases his contributions
14    shall be refunded, without  interest,  and  charged  to  such
15    account in the prior service annuity reserve.
16    (Source:  P.A.  92-599,  eff.  6-28-02;  92-609, eff. 7-1-02;
17    revised 8-26-02.)

18        (40 ILCS 5/8-138) (from Ch. 108 1/2, par. 8-138)
19        Sec. 8-138.  Minimum annuities - Additional provisions.
20        (a)  An employee who withdraws after age 65 or more  with
21    at  least 20 years of service, for whom the amount of age and
22    service and prior service annuity combined is less  than  the
23    amount  stated  in  this  Section,  shall  from  the  date of
24    withdrawal, instead of all annuities otherwise  provided,  be
25    entitled  to receive an annuity for life of $150 a year, plus
26    1 1/2% for each year of service, to and including  20  years,
27    and  1  2/3%  for  each year of service over 20 years, of his
28    highest average annual salary for  any  4  consecutive  years
29    within the last 10 years of service immediately preceding the
30    date of withdrawal.
31        An  employee  who  withdraws  after  20  or more years of
32    service, before age 65, shall be entitled to such annuity, to
33    begin not earlier than upon attained age of 55 years if under
 
                            -24-     LRB093 05656 EFG 17166 a
 1    such age at withdrawal, reduced by 2% for each full  year  or
 2    fractional  part  thereof  that his attained age is less than
 3    65, plus an additional 2% reduction for  each  full  year  or
 4    fractional part thereof that his attained age when annuity is
 5    to  begin  is less than 60 so that the total reduction at age
 6    55 shall be 30%.
 7        (b)  An employee who withdraws after July 1, 1957, at age
 8    60 or over, with 20 or more years of service,  for  whom  the
 9    age  and  service and prior service annuity combined, is less
10    than the amount stated in this  paragraph,  shall,  from  the
11    date of withdrawal, instead of such annuities, be entitled to
12    receive  an annuity for life equal to 1 2/3% for each year of
13    service, of the highest  average  annual  salary  for  any  5
14    consecutive  years  within  the  last  10  years  of  service
15    immediately  preceding the date of withdrawal; provided, that
16    in the case of any employee who withdraws on or after July 1,
17    1971, such employee age 60 or over with 20 or more  years  of
18    service, shall receive an annuity for life equal to 1.67% for
19    each  of the first 10 years of service; 1.90% for each of the
20    next 10 years of service; 2.10% for each year of  service  in
21    excess of 20 but not exceeding 30; and 2.30% for each year of
22    service  in excess of 30, based on the highest average annual
23    salary for any 4 consecutive years within the last  10  years
24    of service immediately preceding the date of withdrawal.
25        An  employee  who withdraws after July 1, 1957 and before
26    January 1, 1988, with 20 or more years of service, before age
27    60 years is entitled to annuity, to begin  not  earlier  than
28    upon  attained  age  of  55  years,  if  under  such  age  at
29    withdrawal,  as  computed  in  the  last preceding paragraph,
30    reduced 0.25% for each full month or fractional part  thereof
31    that  his  attained age when annuity is to begin is less than
32    60 if the employee was born before January 1, 1936,  or  0.5%
33    for  each  such  month  if  the employee was born on or after
34    January 1, 1936.
 
                            -25-     LRB093 05656 EFG 17166 a
 1        Any employee born before January 1, 1936,  who  withdraws
 2    with 20 or more years of service, and any employee with 20 or
 3    more  years  of  service who withdraws on or after January 1,
 4    1988, may elect to receive, in lieu  of  any  other  employee
 5    annuity  provided  in this Section, an annuity for life equal
 6    to 1.80% for each of the first 10 years of service, 2.00% for
 7    each of the next 10 years of service, 2.20% for each year  of
 8    service  in  excess of 20 but not exceeding 30, and 2.40% for
 9    each year of service in excess of 30, of the highest  average
10    annual  salary for any 4 consecutive years within the last 10
11    years  of  service  immediately   preceding   the   date   of
12    withdrawal, to begin not earlier than upon attained age of 55
13    years,  if  under  such  age at withdrawal, reduced 0.25% for
14    each full month or fractional part thereof that his  attained
15    age  when annuity is to begin is less than 60; except that an
16    employee retiring on or after January 1, 1988, at age  55  or
17    over  but  less  than  age  60,  having  at least 35 years of
18    service, or an employee retiring on or after July 1, 1990, at
19    age 55 or over but less than age 60, having at least 30 years
20    of service, or an employee retiring on or after the effective
21    date of this amendatory Act of 1997, at age 55  or  over  but
22    less  than age 60, having at least 25 years of service, shall
23    not be subject to the reduction in retirement annuity because
24    of retirement below age 60.
25        However, in the case of an employee  who  retired  on  or
26    after  January  1, 1985 but before January 1, 1988, at age 55
27    or older and with at least 35 years of service, and  who  was
28    subject  under  this  subsection  (b)  to  the  reduction  in
29    retirement  annuity  because of retirement below age 60, that
30    reduction shall cease to be effective January  1,  1991,  and
31    the retirement annuity shall be recalculated accordingly.
32        Any employee who withdraws on or after July 1, 1990, with
33    20 or more years of service, may elect to receive, in lieu of
34    any  other  employee  annuity  provided  in  this Section, an
 
                            -26-     LRB093 05656 EFG 17166 a
 1    annuity for life equal to 2.20% for each year of  service  if
 2    withdrawal  is  before  January  1,  2002,  60 days after the
 3    effective date of this amendatory Act  of  the  92nd  General
 4    Assembly,  or 2.40% for each year of service if withdrawal is
 5    on or after January 1, 2002, 60 days after the effective date
 6    of this amendatory Act of the 92nd General Assembly or later,
 7    of the highest average annual salary for  any  4  consecutive
 8    years  within  the  last  10  years  of  service  immediately
 9    preceding  the  date of withdrawal, to begin not earlier than
10    upon  attained  age  of  55  years,  if  under  such  age  at
11    withdrawal, reduced 0.25% for each full month  or  fractional
12    part  thereof  that his attained age when annuity is to begin
13    is less than 60; except that an employee retiring at  age  55
14    or  over  but  less  than age 60, having at least 30 years of
15    service, shall not be subject to the reduction in  retirement
16    annuity because of retirement below age 60.
17        Any employee who withdraws on or after the effective date
18    of  this  amendatory  Act  of  1997  with 20 or more years of
19    service may elect to receive, in lieu of any  other  employee
20    annuity  provided  in this Section, an annuity for life equal
21    to 2.20% for each year of service, if  withdrawal  is  before
22    January  1,  2002,  60  days after the effective date of this
23    amendatory Act of the 92nd General  Assembly,  or  2.40%  for
24    each  year of service if withdrawal is on or after January 1,
25    2002, 60 days after the effective date of this amendatory Act
26    of the 92nd General Assembly or later, of the highest average
27    annual salary for any 4 consecutive years within the last  10
28    years   of   service   immediately   preceding  the  date  of
29    withdrawal, to begin not earlier than upon attainment of  age
30    55 (age 50 if the employee has at least 30 years of service),
31    reduced  0.25%  for  each  full month or remaining fractional
32    part thereof that the employee's attained age when annuity is
33    to begin is less than 60; except that an employee retiring at
34    age 50 or over with at least 30 years of service or at age 55
 
                            -27-     LRB093 05656 EFG 17166 a
 1    or over with at least  25  years  of  service  shall  not  be
 2    subject  to  the  reduction  in retirement annuity because of
 3    retirement below age 60.
 4        The maximum annuity payable under part  (a)  and  (b)  of
 5    this  Section  shall not exceed 70% of highest average annual
 6    salary in the case of an employee who withdraws prior to July
 7    1, 1971, 75% if withdrawal takes place on or  after  July  1,
 8    1971  and  prior  to  January  1,  2002,  60  days  after the
 9    effective date of this amendatory Act  of  the  92nd  General
10    Assembly,  or  80%  if  withdrawal  takes  place  on or after
11    January 1, 2002 is 60 days after the effective date  of  this
12    amendatory  Act  of  the 92nd General Assembly or later.  For
13    the purpose of the minimum annuity provided in  this  Section
14    $1,500  is considered the minimum annual salary for any year;
15    and the maximum annual salary for  the  computation  of  such
16    annuity  is  $4,800  for  any year before 1953, $6000 for the
17    years 1953 to 1956, inclusive, and the actual annual  salary,
18    as   salary   is  defined  in  this  Article,  for  any  year
19    thereafter.
20        To preserve rights existing on  December  31,  1959,  for
21    participants  and  contributors  on  that  date  to  the fund
22    created by the Court and Law  Department  Employees'  Annuity
23    Act,  who  became  participants  in  the fund provided for on
24    January 1, 1960, the maximum annual salary to  be  considered
25    for such persons for the years 1955 and 1956 is $7,500.
26        (c)  For  an  employee  receiving disability benefit, his
27    salary for annuity purposes under paragraphs (a) and  (b)  of
28    this   Section,   for   all  periods  of  disability  benefit
29    subsequent to the year 1956,  is  the  amount  on  which  his
30    disability benefit was based.
31        (d)  An  employee with 20 or more years of service, whose
32    entire  disability  benefit  credit  period  expires   before
33    attainment  of  age  55  while still disabled for service, is
34    entitled upon withdrawal to the larger  of  (1)  the  minimum
 
                            -28-     LRB093 05656 EFG 17166 a
 1    annuity  provided  above,  assuming  he  is  then age 55, and
 2    reducing such annuity to its actuarial equivalent as  of  his
 3    attained  age  on  such date or (2) the annuity provided from
 4    his age and service and prior service annuity credits.
 5        (e)  The minimum annuity provisions do not apply  to  any
 6    former  municipal employee receiving an annuity from the fund
 7    who re-enters service as  a  municipal  employee,  unless  he
 8    renders at least 3 years of additional service after the date
 9    of re-entry.
10        (f)  An  employee  in  service  on  July  1, 1947, or who
11    became a contributor after July 1, 1947 and before attainment
12    of age 70, who withdraws after age  65,  with  less  than  20
13    years  of  service  for whom the annuity has been fixed under
14    this Article shall, instead of the annuity so fixed,  receive
15    an annuity as follows:
16        Such amount as he could have received had the accumulated
17    amounts  for  annuity  been  improved  with  interest  at the
18    effective  rate  to  the  date  of  his  withdrawal,  or   to
19    attainment  of age 70, whichever is earlier, and had the city
20    contributed to such earlier date for age and service  annuity
21    the  amount  that it would have contributed had he been under
22    age 65, after the date his annuity was  fixed  in  accordance
23    with  this  Article,  and  assuming his annuity were computed
24    from such accumulations as of his age on such  earlier  date.
25    The  annuity  so  computed shall not exceed the annuity which
26    would be payable under the other provisions of  this  Section
27    if  the  employee  was  credited with 20 years of service and
28    would qualify for annuity thereunder.
29        (g)  Instead of the annuity provided in this Article,  an
30    employee  having  attained  age  65 with at least 15 years of
31    service who withdraws from service on or after July  1,  1971
32    and  whose  annuity  computed  under other provisions of this
33    Article  is  less  than  the  amount  provided   under   this
34    paragraph, is entitled to a minimum annuity for life equal to
 
                            -29-     LRB093 05656 EFG 17166 a
 1    1% of the highest average annual salary, as salary is defined
 2    and  limited  in  this  Section  for  any 4 consecutive years
 3    within the last 10 years of service for each year of service,
 4    plus the sum of $25 for each year  of  service.  The  annuity
 5    shall not exceed 60% of such highest average annual salary.
 6        (g-1)  Instead  of  any other retirement annuity provided
 7    in this Article, an employee who has at  least  10  years  of
 8    service  and  withdraws  from  service on or after January 1,
 9    1999 may elect to receive  a  retirement  annuity  for  life,
10    beginning no earlier than upon attainment of age 60, equal to
11    2.2%  if  withdrawal is before January 1, 2002, 60 days after
12    the effective date of this amendatory Act of the 92nd General
13    Assembly or 2.4% if withdrawal is  on  or  after  January  1,
14    2002, 60 days after the effective date of this amendatory Act
15    of  the  92nd  General  Assembly  or  later, of final average
16    salary for each year of service, subject to a maximum of  75%
17    of  final  average  salary if withdrawal is before January 1,
18    2002, or 80% if withdrawal is on or after  January  1,  2002.
19    For  the  purpose of calculating this annuity, "final average
20    salary" means the highest average annual  salary  for  any  4
21    consecutive years in the last 10 years of service.
22        (h)  The  minimum  annuities  provided under this Section
23    shall be paid in equal monthly installments.
24        (i)  The amendatory provisions of part  (b)  and  (g)  of
25    this Section shall be effective July 1, 1971 and apply in the
26    case  of  every  qualifying  employee withdrawing on or after
27    July 1, 1971.
28        (j)  The amendatory provisions of this amendatory Act  of
29    1985 (P.A. 84-23) relating to the discount of annuity because
30    of  retirement  prior  to  attainment  of  age 60, and to the
31    retirement formula, for those born before  January  1,  1936,
32    shall  apply  only  to qualifying employees withdrawing on or
33    after July 18, 1985.
34        (j-1)  The changes made to this  Section  by  Public  Act
 
                            -30-     LRB093 05656 EFG 17166 a
 1    92-609  this  amendatory  Act  of  the  92nd General Assembly
 2    (increasing the  retirement  formula  to  2.4%  per  year  of
 3    service  and  increasing the maximum to 80%) apply to persons
 4    who withdraw from  service  on  or  after  January  1,  2002,
 5    regardless  of whether that withdrawal takes place before the
 6    effective date of that this amendatory Act.  In the case of a
 7    person who withdraws from service on or after January 1, 2002
 8    but begins to receive a retirement  annuity  before  July  1,
 9    2002  the  effective date of this amendatory Act, the annuity
10    shall be  recalculated,  with  the  increase  resulting  from
11    Public  this amendatory Act 92-609 accruing from the date the
12    retirement annuity began.  The changes  made  by  Public  Act
13    92-609 control over the changes made by Public Act 92-599, as
14    provided in Section 95 of P.A. 92-609.
15        (k)  Beginning  on January 1, 1999, the minimum amount of
16    employee's annuity shall be $850 per month for life  for  the
17    following  classes  of  employees, without regard to the fact
18    that withdrawal occurred prior to the effective date of  this
19    amendatory Act of 1998:
20             (1)  any  employee  annuitant  alive and receiving a
21        life annuity on the effective date of this amendatory Act
22        of 1998, except a reciprocal annuity;
23             (2)  any employee annuitant alive  and  receiving  a
24        term annuity on the effective date of this amendatory Act
25        of 1998, except a reciprocal annuity;
26             (3)  any  employee  annuitant  alive and receiving a
27        reciprocal  annuity  on  the  effective  date   of   this
28        amendatory  Act of 1998, whose service in this fund is at
29        least 5 years;
30             (4)  any employee annuitant withdrawing after age 60
31        on or after the effective date of this amendatory Act  of
32        1998, with at least 10 years of service in this fund.
33        The  increases  granted  under  items (1), (2) and (3) of
34    this subsection (k) shall not be limited by any other Section
 
                            -31-     LRB093 05656 EFG 17166 a
 1    of this Act.
 2        (l)  Beginning on January 1, 2004, the minimum amount  of
 3    employee's  annuity  shall be $950 per month for life for the
 4    following classes of employees, without regard  to  the  fact
 5    that  withdrawal occurred prior to the effective date of this
 6    amendatory Act of the 93rd General Assembly:
 7             (1)  any employee annuitant alive  and  receiving  a
 8        life annuity on the effective date of this amendatory Act
 9        of   the  93rd  General  Assembly,  except  a  reciprocal
10        annuity;
11             (2)  any employee annuitant alive  and  receiving  a
12        term annuity on the effective date of this amendatory Act
13        of   the  93rd  General  Assembly,  except  a  reciprocal
14        annuity;
15             (3)  any employee annuitant alive  and  receiving  a
16        reciprocal   annuity   on  the  effective  date  of  this
17        amendatory  Act  of  the  93rd  General  Assembly,  whose
18        service in this fund is at least 5 years;
19             (4)  any employee annuitant withdrawing after age 60
20        on or after the effective date of this amendatory Act  of
21        the  93rd  General  Assembly,  with  at least 10 years of
22        service in this fund.
23        The increases granted under items (1),  (2)  and  (3)  of
24    this subsection (l) shall not be limited by any other Section
25    of this Act.
26        (m)  Beginning  on January 1, 2005, the minimum amount of
27    employee's annuity shall be $1,050 per month for life for the
28    following classes of employees, without regard  to  the  fact
29    that  withdrawal occurred prior to the effective date of this
30    amendatory Act of the 93rd General Assembly:
31             (1)  any employee annuitant alive  and  receiving  a
32        life annuity on the effective date of this amendatory Act
33        of   the  93rd  General  Assembly,  except  a  reciprocal
34        annuity;
 
                            -32-     LRB093 05656 EFG 17166 a
 1             (2)  any employee annuitant alive  and  receiving  a
 2        term annuity on the effective date of this amendatory Act
 3        of   the  93rd  General  Assembly,  except  a  reciprocal
 4        annuity;
 5             (3)  any employee annuitant alive  and  receiving  a
 6        reciprocal   annuity   on  the  effective  date  of  this
 7        amendatory  Act  of  the  93rd  General  Assembly,  whose
 8        service in this fund is at least 5 years;
 9             (4)  any employee annuitant withdrawing after age 60
10        on or after the effective date of this amendatory Act  of
11        the  93rd  General  Assembly,  with  at least 10 years of
12        service in this fund.
13        The increases granted under items (1),  (2)  and  (3)  of
14    this subsection (m) shall not be limited by any other Section
15    of this Act.
16    (Source:  P.A.  92-599,  eff.  6-28-02;  92-609, eff. 7-1-02;
17    revised 9-11-02.)

18        (40 ILCS 5/8-150.1) (from Ch. 108 1/2, par. 8-150.1)
19        Sec. 8-150.1.  Minimum annuities for  widows.  The  widow
20    (otherwise  eligible for widow's annuity under other Sections
21    of this Article 8) of an employee hereinafter described,  who
22    retires  from service or dies while in the service subsequent
23    to the effective date of this amendatory provision,  and  for
24    which  widow  the amount of widow's annuity and widow's prior
25    service annuity combined, fixed or provided  for  such  widow
26    under  other  provisions  of  this  Article  is less than the
27    amount provided in this Section, shall, from  and  after  the
28    date  her  otherwise provided annuity would begin, in lieu of
29    such otherwise provided widow's  and  widow's  prior  service
30    annuity,  be  entitled  to  the following indicated amount of
31    annuity:
32        (a)  The widow of any employee who dies while in  service
33    on  or after the date on which he attains age 60 if the death
 
                            -33-     LRB093 05656 EFG 17166 a
 1    occurs before July 1, 1990, or on or after the date on  which
 2    he  attains  age  55  if the death occurs on or after July 1,
 3    1990, with at least 20 years of service, or on or  after  the
 4    date  on  which  he  attains age 50 if the death occurs on or
 5    after the effective date of this amendatory Act of 1997  with
 6    at least 30 years of service, shall be entitled to an annuity
 7    equal to one-half of the amount of annuity which her deceased
 8    husband  would have been entitled to receive had he withdrawn
 9    from the service on the day immediately preceding the date of
10    his death, conditional upon such widow  having  attained  the
11    age  of  60  or  more  years on such date if the death occurs
12    before July 1, 1990, or age 55 or more if the death occurs on
13    or after July 1, 1990, or age 50 or more if the death  occurs
14    on  or  after  January  1, 1998 and the employee is age 50 or
15    over with at least 30 years of service or age 55 or over with
16    at  least  25  years  of  service.  Except  as  provided   in
17    subsection  (k),  this  widow's  annuity  shall not, however,
18    exceed the sum of $500 a month if  the  employee's  death  in
19    service  occurs before January 23, 1987.  The widow's annuity
20    shall not be limited  to  a  maximum  dollar  amount  if  the
21    employee's  death  in  service occurs on or after January 23,
22    1987.
23        If the employee dies in service before July 1, 1990,  and
24    if  such  widow of such described employee shall not be 60 or
25    more years of age on such date of death, the amount  provided
26    in the immediately preceding paragraph for a widow 60 or more
27    years  of  age,  shall, in the case of such younger widow, be
28    reduced by 0.25% for each month that her then attained age is
29    less than 60 years if the employee was born before January 1,
30    1936 or dies in service on or after January 1,  1988,  or  by
31    0.5%  for  each month that her then attained age is less than
32    60 years if the employee was born on or after  July  1,  1936
33    and dies in service before January 1, 1988.
34        If the employee dies in service on or after July 1, 1990,
 
                            -34-     LRB093 05656 EFG 17166 a
 1    and  if  the widow of the employee has not attained age 55 on
 2    or before the employee's date of death, the amount  otherwise
 3    provided in this subsection (a) shall be reduced by 0.25% for
 4    each  month that her then attained age is less than 55 years;
 5    except that if the employee  dies  in  service  on  or  after
 6    January  1,  1998 at age 50 or over with at least 30 years of
 7    service or at age 55 or  over  with  at  least  25  years  of
 8    service,  there  shall be no reduction due to the widow's age
 9    if she has attained age 50 on or before the  employee's  date
10    of  death,  and  if  the  widow has not attained age 50 on or
11    before the employee's date  of  death  the  amount  otherwise
12    provided in this subsection (a) shall be reduced by 0.25% for
13    each month that her then attained age is less than 50 years.
14        (b)  The widow of any employee who dies subsequent to the
15    date  of  his retirement on annuity, and who so retired on or
16    after the date on which he attained the age  of  60  or  more
17    years  if  retirement  occurs  before  July 1, 1990, or on or
18    after the date on which he  attained  age  55  if  retirement
19    occurs  on  or  after July 1, 1990, with at least 20 years of
20    service, or on or after the date on which he attained age  50
21    if  the  retirement  occurs on or after the effective date of
22    this amendatory Act  of  1997  with  at  least  30  years  of
23    service, shall be entitled to an annuity equal to one-half of
24    the  amount of annuity which her deceased husband received as
25    of the date of his retirement on  annuity,  conditional  upon
26    such widow having attained the age of 60 or more years on the
27    date  of  her  husband's  retirement on annuity if retirement
28    occurs before July 1, 1990, or age 55 or more  if  retirement
29    occurs  on  or  after  July 1, 1990, or age 50 or more if the
30    retirement on annuity occurs on or after January 1, 1998  and
31    the  employee  is  age  50  or over with at least 30 years of
32    service or age 55 or over with at least 25 years of  service.
33    Except  as  provided  in subsection (k), this widow's annuity
34    shall not, however, exceed the sum of $500  a  month  if  the
 
                            -35-     LRB093 05656 EFG 17166 a
 1    employee's death occurs before January 23, 1987.  The widow's
 2    annuity  shall  not  be limited to a maximum dollar amount if
 3    the employee's death occurs on or  after  January  23,  1987,
 4    regardless  of  the  date  of  retirement;  provided that, if
 5    retirement was before  January  23,  1987,  the  employee  or
 6    eligible spouse repays the excess spouse refund with interest
 7    at  the effective rate from the date of refund to the date of
 8    repayment.
 9        If the date of the employee's retirement  on  annuity  is
10    before  July  1,  1990,  and  if such widow of such described
11    employee shall not have attained such age of 60 or more years
12    on such date of her  husband's  retirement  on  annuity,  the
13    amount  provided in the immediately preceding paragraph for a
14    widow 60 or more years of age on the date  of  her  husband's
15    retirement  on  annuity,  shall,  in  the  case  of such then
16    younger widow, be reduced by 0.25% for each  month  that  her
17    then  attained age was less than 60 years if the employee was
18    born before January 1, 1936 or withdraws from service  on  or
19    after  January  1,  1988,  or by 0.5% for each month that her
20    then attained age is less than 60 years if the  employee  was
21    born  on  or after January 1, 1936 and withdraws from service
22    before January 1, 1988.
23        If the date of the employee's retirement on annuity is on
24    or after July 1, 1990, and if the widow of the  employee  has
25    not  attained age 55 by the date of the employee's retirement
26    on annuity, the amount otherwise provided in this  subsection
27    (b)  shall  be  reduced by 0.25% for each month that her then
28    attained age is less  than  55  years;  except  that  if  the
29    employee  retires  on  annuity on or after January 1, 1998 at
30    age 50 or over with at least 30 years of service or at age 55
31    or over with at least 25 years of service, there shall be  no
32    reduction  due  to the widow's age if she has attained age 50
33    on or before the employee's date of death, and if  the  widow
34    has  not  attained age 50 on or before the employee's date of
 
                            -36-     LRB093 05656 EFG 17166 a
 1    death the amount otherwise provided in  this  subsection  (b)
 2    shall  be  reduced  by  0.25%  for  each  month that her then
 3    attained age is less than 50 years.
 4        (c)  The  foregoing  provisions   relating   to   minimum
 5    annuities  for  widows  shall  not  apply to the widow of any
 6    former municipal employee receiving an annuity from the  fund
 7    on August 9, 1965 or on the effective date of this amendatory
 8    provision,  who  re-enters  service  as a municipal employee,
 9    unless such employee renders at least 3 years  of  additional
10    service after the date of re-entry.
11        (d)  In computing the amount of annuity which the husband
12    specified  in  the  foregoing  paragraphs (a) and (b) of this
13    Section would have been entitled  to  receive,  or  received,
14    such  amount shall be the annuity to which such husband would
15    have been, or was entitled, before reduction in the amount of
16    his annuity  for  the  purposes  of  the  voluntary  optional
17    reversionary  annuity  provided  for in Section 8-139 of this
18    Article, if such option was elected.
19        (e)  (Blank).
20        (f)  (Blank).
21        (g)  The amendatory provisions of this amendatory Act  of
22    1985  relating  to annuity discount because of age for widows
23    of employees born before January 1, 1936, shall apply only to
24    qualifying  widows  of  employees  withdrawing  or  dying  in
25    service on or after July 18, 1985.
26        (h)  Beginning on January 1, 1999, the minimum amount  of
27    widow's  annuity  shall  be  $800  per month for life for the
28    following classes of widows, without regard to the fact  that
29    the  death  of  the  employee occurred prior to the effective
30    date of this amendatory Act of 1998:
31             (1)  any widow annuitant alive and receiving a  life
32        annuity  on  the effective date of this amendatory Act of
33        1998, except a reciprocal annuity;
34             (2)  any widow annuitant alive and receiving a  term
 
                            -37-     LRB093 05656 EFG 17166 a
 1        annuity  on  the effective date of this amendatory Act of
 2        1998, except a reciprocal annuity;
 3             (3)  any  widow  annuitant  alive  and  receiving  a
 4        reciprocal  annuity  on  the  effective  date   of   this
 5        amendatory  Act  of 1998, whose employee spouse's service
 6        in this fund was at least 5 years;
 7             (4)  the widow of an employee with at least 10 years
 8        of service in this fund who dies after retirement, if the
 9        retirement occurred prior to the effective date  of  this
10        amendatory Act of 1998;
11             (5)  the widow of an employee with at least 10 years
12        of  service  in  this  fund who dies after retirement, if
13        withdrawal occurs on or after the effective date of  this
14        amendatory Act of 1998;
15             (6)  the  widow  of  an employee who dies in service
16        with at least 5 years of service in  this  fund,  if  the
17        death in service occurs on or after the effective date of
18        this amendatory Act of 1998.
19        The  increases  granted under items (1), (2), (3) and (4)
20    of this subsection (h) shall not  be  limited  by  any  other
21    Section of this Act.
22        (h-5)  Beginning  on  January 1, 2004, the minimum amount
23    of widow's annuity shall be $900 per month for life  for  the
24    following  classes of widows, without regard to the fact that
25    the death of the employee occurred  prior  to  the  effective
26    date of this amendatory Act of the 93rd General Assembly:
27             (1)  any  widow annuitant alive and receiving a life
28        annuity on the effective date of this amendatory  Act  of
29        the 93rd General Assembly, except a reciprocal annuity;
30             (2)  any  widow annuitant alive and receiving a term
31        annuity on the effective date of this amendatory  Act  of
32        the 93rd General Assembly, except a reciprocal annuity;
33             (3)  any  widow  annuitant  alive  and  receiving  a
34        reciprocal   annuity   on  the  effective  date  of  this
 
                            -38-     LRB093 05656 EFG 17166 a
 1        amendatory  Act  of  the  93rd  General  Assembly,  whose
 2        employee spouse's service in this fund  was  at  least  5
 3        years;
 4             (4)  the widow of an employee with at least 10 years
 5        of service in this fund who dies after retirement, if the
 6        retirement  occurred  prior to the effective date of this
 7        amendatory Act of the 93rd General Assembly;
 8             (5)  the widow of an employee with at least 10 years
 9        of service in this fund who  dies  after  retirement,  if
10        withdrawal  occurs on or after the effective date of this
11        amendatory Act of the 93rd General Assembly;
12             (6)  the widow of an employee who  dies  in  service
13        with  at  least  5  years of service in this fund, if the
14        death in service occurs on or after the effective date of
15        this amendatory Act of the 93rd General Assembly.
16        The increases granted under items (1), (2), (3)  and  (4)
17    of  this  subsection  (h-5) shall not be limited by any other
18    Section of this Act.
19        (h-10)  Beginning on January 1, 2005, the minimum  amount
20    of widow's annuity shall be $1,000 per month for life for the
21    following  classes of widows, without regard to the fact that
22    the death of the employee occurred  prior  to  the  effective
23    date of this amendatory Act of the 93rd General Assembly:
24             (1)  any  widow annuitant alive and receiving a life
25        annuity on the effective date of this amendatory  Act  of
26        the 93rd General Assembly, except a reciprocal annuity;
27             (2)  any  widow annuitant alive and receiving a term
28        annuity on the effective date of this amendatory  Act  of
29        the 93rd General Assembly, except a reciprocal annuity;
30             (3)  any  widow  annuitant  alive  and  receiving  a
31        reciprocal   annuity   on  the  effective  date  of  this
32        amendatory  Act  of  the  93rd  General  Assembly,  whose
33        employee spouse's service in this fund  was  at  least  5
34        years;
 
                            -39-     LRB093 05656 EFG 17166 a
 1             (4)  the widow of an employee with at least 10 years
 2        of service in this fund who dies after retirement, if the
 3        retirement  occurred  prior to the effective date of this
 4        amendatory Act of the 93rd General Assembly;
 5             (5)  the widow of an employee with at least 10 years
 6        of service in this fund who  dies  after  retirement,  if
 7        withdrawal  occurs on or after the effective date of this
 8        amendatory Act of the 93rd General Assembly;
 9             (6)  the widow of an employee who  dies  in  service
10        with  at  least  5  years of service in this fund, if the
11        death in service occurs on or after the effective date of
12        this amendatory Act of the 93rd General Assembly.
13        The increases granted under items (1), (2), (3)  and  (4)
14    of  this  subsection (h-10) shall not be limited by any other
15    Section of this Act.
16        (i)  The widow of an employee  who  retired  or  died  in
17    service  on or after January 1, 1985 and before July 1, 1990,
18    at age 55 or older, and with at least  35  years  of  service
19    credit,  shall  be  entitled  to  have  her  widow's  annuity
20    increased,  effective  January 1, 1991, to an amount equal to
21    50% of the retirement  annuity  that  the  deceased  employee
22    received  on  the  date  of  retirement,  or  would have been
23    eligible to receive if he had retired on  the  day  preceding
24    the  date of his death in service, provided that if the widow
25    had not attained  age  60  by  the  date  of  the  employee's
26    retirement  or  death  in  service, the amount of the annuity
27    shall be reduced by  0.25%  for  each  month  that  her  then
28    attained   age  was  less  than  age  60  if  the  employee's
29    retirement or death in service occurred on or  after  January
30    1,  1988, or by 0.5%  for each month that her attained age is
31    less than age 60 if the employee's  retirement  or  death  in
32    service occurred prior to January 1, 1988.  However, in cases
33    where  a  refund  of excess contributions for widow's annuity
34    has been paid by the Fund, the increase in  benefit  provided
 
                            -40-     LRB093 05656 EFG 17166 a
 1    by  this subsection (i) shall be contingent upon repayment of
 2    the refund to the Fund with interest at  the  effective  rate
 3    from the date of refund to the date of payment.
 4        (j)  If  a  deceased  employee  is receiving a retirement
 5    annuity at the time of death and  that  death  occurs  on  or
 6    after  June 27, 1997, the widow may elect to receive, in lieu
 7    of any other annuity provided under this Article, 50% of  the
 8    deceased  employee's  retirement annuity at the time of death
 9    reduced by 0.25% for each month that the widow's age  on  the
10    date  of  death  is less than 55; except that if the employee
11    dies on or after January 1, 1998 and withdrew from service on
12    or after June 27, 1997 at age 50 or over  with  at  least  30
13    years  of service or at age 55 or over with at least 25 years
14    of service, there shall be no reduction due  to  the  widow's
15    age  if  she  has attained age 50 on or before the employee's
16    date of death, and if the widow has not attained age 50 on or
17    before the employee's date  of  death  the  amount  otherwise
18    provided in this subsection (j) shall be reduced by 0.25% for
19    each  month that her age on the date of death is less than 50
20    years.  However,  in  cases  where   a   refund   of   excess
21    contributions  for widow's annuity has been paid by the Fund,
22    the benefit provided by this  subsection  (j)  is  contingent
23    upon repayment of the refund to the Fund with interest at the
24    effective  rate  from  the  date  of  refund  to  the date of
25    payment.
26        (k)  For widows of employees who died before January  23,
27    1987  after  retirement on annuity or in service, the maximum
28    dollar amount limitation on widow's annuity  shall  cease  to
29    apply,  beginning  with  the  first annuity payment after the
30    effective date of this amendatory Act of 1997; except that if
31    a refund of excess contributions for widow's annuity has been
32    paid by the Fund, the increase resulting from this subsection
33    (k) shall not begin before the refund has been repaid to  the
34    Fund,  together  with interest at the effective rate from the
 
                            -41-     LRB093 05656 EFG 17166 a
 1    date of the refund to the date of repayment.
 2        (l)  In lieu  of  any  other  annuity  provided  in  this
 3    Article,  an  eligible  spouse  of  an  employee  who dies in
 4    service at least 60 days after the  effective  date  of  this
 5    amendatory  Act of the 92nd General Assembly with at least 10
 6    years of service shall be entitled to an annuity  of  50%  of
 7    the  minimum formula annuity earned and accrued to the credit
 8    of the employee at the date of death.  For  the  purposes  of
 9    this  subsection,  the  minimum  formula  annuity  earned and
10    accrued to the credit of the employee is equal to  2.40%  for
11    each year of service of the highest average annual salary for
12    any  4  consecutive years within the last 10 years of service
13    immediately preceding the date of death, up to a  maximum  of
14    80% of the highest average annual salary.  This annuity shall
15    not  be reduced due to the age of the employee or spouse.  In
16    addition to any other  eligibility  requirements  under  this
17    Article,  the spouse is eligible for this annuity only if the
18    marriage was in effect for 10 full years or more.
19    (Source: P.A. 92-599, eff. 6-28-02.)

20        (40 ILCS 5/8-150.2 new)
21        Sec.  8-150.2.  Automatic  annual  increase  in   widow's
22    annuity.
23        (a)  Every   widow's   annuity,  other  than  an  annuity
24    excluded under subsection (c), shall be increased  by  3%  on
25    the  latest  of  (1)  January  1,  2004,  (2)  the  January 1
26    immediately following the deceased employee's date of  death,
27    or  (3) the January 1 occurring on or next after the date the
28    deceased employee actually received,  or  the  earliest  date
29    upon  which the deceased employee would have been eligible to
30    receive, his or her first increase in annuity  under  Section
31    8-137 or 8-137.1.
32        On  each January 1 after the date of the initial increase
33    under this Section, the widow's annuity shall be increased by
 
                            -42-     LRB093 05656 EFG 17166 a
 1    an amount equal to  3%  of  the  amount  of  widow's  annuity
 2    otherwise  payable at the time of the increase, including any
 3    increases previously granted under this Article.
 4        (b)  Limitations on the maximum amount of widow's annuity
 5    imposed under Section  8-154  do  not  apply  to  the  annual
 6    increases under this Section.
 7        (c)  The  increases  under  this  Section do not apply to
 8    reversionary annuities under Section 8-139 or term  annuities
 9    under  Section  8-157.   The  increases  provided  under this
10    Section do, however, apply to compensation  and  supplemental
11    annuities under Section 8-151.

12        (40 ILCS 5/8-164.1) (from Ch. 108 1/2, par. 8-164.1)
13        Sec. 8-164.1. Payments to city Group health benefit.
14        (a)  For  the  purposes of this Section, "city annuitant"
15    means a person  receiving  an  age  and  service  annuity,  a
16    widow's  annuity,  a  child's  annuity,  or a minimum annuity
17    under this Article as a direct result of previous  employment
18    by the City of Chicago ("the city").
19        (b)  The  board  shall  pay to the city, on behalf of the
20    board's city annuitants who participate in any of the  city's
21    health care plans, the following amounts:
22             (1)  From  July  1,  2003 through June 30, 2008, $85
23        per month for each such annuitant who is not eligible  to
24        receive Medicare benefits and $55 per month for each such
25        annuitant who is eligible to receive Medicare benefits.
26             (2)  From  July  1,  2008 through June 30, 2013, $95
27        per month for each such annuitant who is not eligible  to
28        receive Medicare benefits and $65 per month for each such
29        annuitant who is eligible to receive Medicare benefits.
30        The  payments  described in this subsection shall be paid
31    from the  tax  levy  authorized  under  Section  8-173;  such
32    amounts  shall  be credited to the reserve for group hospital
33    care and group medical and surgical plan  benefits,  and  all
 
                            -43-     LRB093 05656 EFG 17166 a
 1    payments  to the city required under this subsection shall be
 2    charged against it.
 3        (c)  The city health  care  plans  referred  to  in  this
 4    Section  and  the  board's  payments  to  the city under this
 5    Section are not and shall not be construed to be  pension  or
 6    retirement  benefits for the purposes of Section 5 of Article
 7    XIII of the Illinois Constitution of 1970.
 8        (a)  For the purposes of this  Section:  (1)  "annuitant"
 9    means  a person receiving an age and service annuity, a prior
10    service annuity, a widow's annuity, a widow's  prior  service
11    annuity,  or  a minimum annuity, under Article 5, 6, 8 or 11,
12    by reason of previous  employment  by  the  City  of  Chicago
13    (hereinafter,  in  this  Section,  "the city"); (2) "Medicare
14    Plan annuitant" means an annuitant described in item (1)  who
15    is eligible for Medicare benefits; and (3) "non-Medicare Plan
16    annuitant"  means  an  annuitant described in item (1) who is
17    not eligible for Medicare benefits.
18        (b)  The  city  shall  offer  group  health  benefits  to
19    annuitants and their eligible  dependents  through  June  30,
20    2003.  The  basic  city health care plan available as of June
21    30, 1988 (hereinafter called the basic city plan) shall cease
22    to be a plan offered by the  city,  except  as  specified  in
23    subparagraphs  (4)  and (5) below, and shall be closed to new
24    enrollment or transfer of coverage for any non-Medicare  Plan
25    annuitant  as  of  June  27,  1997.   The  city  shall  offer
26    non-Medicare  Plan  annuitants  and their eligible dependents
27    the option of enrolling in its Annuitant  Preferred  Provider
28    Plan  and  may offer additional plans for any annuitant.  The
29    city may amend, modify, or terminate any  of  its  additional
30    plans  at  its sole discretion.  If the city offers more than
31    one annuitant  plan,  the  city  shall  allow  annuitants  to
32    convert  coverage  from  one  city annuitant plan to another,
33    except the basic city plan, during times  designated  by  the
34    city,  which  periods  of time shall occur at least annually.
 
                            -44-     LRB093 05656 EFG 17166 a
 1    For the period dating from June 27,  1997  through  June  30,
 2    2003,  monthly  premium rates may be increased for annuitants
 3    during the time of their participation in non-Medicare plans,
 4    except as provided in subparagraphs (1) through (4)  of  this
 5    subsection.
 6             (1)  For  non-Medicare  Plan  annuitants who retired
 7        prior to  January  1,  1988,  the  annuitant's  share  of
 8        monthly premium for non-Medicare Plan coverage only shall
 9        not  exceed the highest premium rate chargeable under any
10        city non-Medicare Plan annuitant coverage as of  December
11        1, 1996.
12             (2)  For  non-Medicare Plan annuitants who retire on
13        or after  January  1,  1988,  the  annuitant's  share  of
14        monthly premium for non-Medicare Plan coverage only shall
15        be  the  rate in effect on December 1, 1996, with monthly
16        premium increases to take effect no sooner than April  1,
17        1998  at  the  lower  of  (i) the premium rate determined
18        pursuant to subsection (g) or (ii) 10% of the immediately
19        previous month's rate for similar coverage.
20             (3)  In  no  event  shall  any   non-Medicare   Plan
21        annuitant's  share  of  monthly  premium for non-Medicare
22        Plan coverage  exceed  10%  of  the  annuitant's  monthly
23        annuity.
24             (4)  Non-Medicare  Plan  annuitants who are enrolled
25        in the basic city plan as of July 1, 1998 may  remain  in
26        the  basic city plan, if they so choose, on the condition
27        that they are not entitled to the caps on rates set forth
28        in subparagraphs (1) through (3), and their premium  rate
29        shall   be   the   rate  determined  in  accordance  with
30        subsections (c) and (g).
31             (5)  Medicare  Plan  annuitants  who  are  currently
32        enrolled in the basic city  plan  for  Medicare  eligible
33        annuitants  may  remain  in that plan, if they so choose,
34        through June 30, 2003.  Annuitants shall not  be  allowed
 
                            -45-     LRB093 05656 EFG 17166 a
 1        to  enroll  in  or  transfer into the basic city plan for
 2        Medicare eligible annuitants on or after  July  1,  1999.
 3        The   city   shall   continue   to   offer  annuitants  a
 4        supplemental  Medicare   Plan   for   Medicare   eligible
 5        annuitants  through June 30, 2003, and the city may offer
 6        additional plans to Medicare eligible annuitants  in  its
 7        sole  discretion.   All  Medicare  Plan annuitant monthly
 8        rates shall be determined in accordance with  subsections
 9        (c) and (g).
10        (c)  The  city  shall  pay 50% of the aggregated costs of
11    the  claims  or  premiums,  whichever   is   applicable,   as
12    determined  in  accordance with subsection (g), of annuitants
13    and their dependents under all health care plans  offered  by
14    the  city.  The city may reduce its obligation by application
15    of  price  reductions  obtained  as  a  result  of  financial
16    arrangements with providers or plan administrators.
17        (d)  From January 1, 1993 until June 30, 2003, the  board
18    shall  pay  to  the  city  on  behalf  of each of the board's
19    annuitants who chooses to participate in any  of  the  city's
20    plans the following amounts: up to a maximum of $75 per month
21    for  each  such  annuitant  who  is  not qualified to receive
22    medicare benefits, and up to a maximum of $45 per  month  for
23    each  such  annuitant  who  is  qualified to receive medicare
24    benefits.
25        Commencing on August 23, 1989, the board is authorized to
26    pay to the board of education on behalf of  each  person  who
27    chooses  to  participate in the board of education's plan the
28    amounts specified in this subsection  (d)  during  the  years
29    indicated.  For the period January 1, 1988 through August 23,
30    1989,   the  board  shall  pay  to  the  board  of  education
31    annuitants who participate in the board of education's health
32    benefits plan for annuitants the following amounts:  $10  per
33    month  to  each  annuitant  who  is  not qualified to receive
34    medicare benefits, and $14 per month to each annuitant who is
 
                            -46-     LRB093 05656 EFG 17166 a
 1    qualified to receive medicare benefits.
 2        The payments described in this subsection shall  be  paid
 3    from  the  tax  levy  authorized  under  Section  8-189; such
 4    amounts shall be credited to the reserve for  group  hospital
 5    care  and  group  medical and surgical plan benefits, and all
 6    payments to the city required under this subsection shall  be
 7    charged against it.
 8        (e)  The city's obligations under subsections (b) and (c)
 9    shall  terminate  on  June  30,  2003,  except with regard to
10    covered expenses incurred but not paid as of that date.  This
11    subsection shall not affect other  obligations  that  may  be
12    imposed by law.
13        (f)  The  group  coverage plans described in this Section
14    are  not  and  shall  not  be  construed  to  be  pension  or
15    retirement benefits for purposes of Section 5 of Article XIII
16    of the Illinois Constitution of 1970.
17        (g)  For each annuitant plan offered  by  the  city,  the
18    aggregate  cost  of claims, as reflected in the claim records
19    of the plan administrator, shall be estimated  by  the  city,
20    based upon a written determination by a qualified independent
21    actuary  to  be appointed and paid by the city and the board.
22    If the estimated annual cost for each annuitant plan  offered
23    by  the  city  is  more  than  the  estimated  amount  to  be
24    contributed by the city for that plan pursuant to subsections
25    (b) and (c) during that year plus the estimated amounts to be
26    paid  pursuant  to  subsection  (d)  and by the other pension
27    boards on  behalf  of  other  participating  annuitants,  the
28    difference  shall  be paid by all annuitants participating in
29    the plan, except as provided in subsection  (b).   The  city,
30    based  upon  the  determination  of  the independent actuary,
31    shall set the monthly amounts to be paid by the participating
32    annuitants.   The board may deduct the amounts to be paid  by
33    its  annuitants  from  the  participating annuitants' monthly
34    annuities.
 
                            -47-     LRB093 05656 EFG 17166 a
 1        If it is determined from the city's annual audit, or from
 2    audited experience data, that the total amount  paid  by  all
 3    participating annuitants was more or less than the difference
 4    between  (1)  the  cost  of  providing  the group health care
 5    plans, and (2) the sum of the amount to be paid by  the  city
 6    as  determined  under  subsection (c) and the amounts paid by
 7    all the pension boards, then the independent actuary and  the
 8    city  shall  account  for the excess or shortfall in the next
 9    year's  payments  by  annuitants,  except  as   provided   in
10    subsection (b).
11        (h)  An  annuitant  may  elect to terminate coverage in a
12    plan at the end of any month, which election shall  terminate
13    the  annuitant's  obligation  to contribute toward payment of
14    the excess described in subsection (g).
15        (i)  The city shall advise  the  board  of  all  proposed
16    premium  increases  for health care at least 75 days prior to
17    the effective date of the change, and any increase  shall  be
18    prospective only.
19    (Source: P.A. 92-599, eff. 6-28-02.)

20        (40 ILCS 5/8-164.2 new)
21        Sec.  8-164.2.   Payments to board of education for group
22    health benefits.
23        (a)  Should the Board of Education continue to sponsor  a
24    retiree  health  plan,  the board is authorized to pay to the
25    Board of Education, on behalf of each eligible annuitant  who
26    chooses  to  participate  in the Board of Education's retiree
27    health benefit plan, the following amounts:
28             (1)  From July 1, 2003 through June  30,  2008,  $85
29        per  month for each such annuitant who is not eligible to
30        receive Medicare benefits and $55 per month for each such
31        annuitant who is eligible to receive Medicare benefits.
32             (2)  From July 1, 2008 through June  30,  2013,  $95
33        per  month for each such annuitant who is not eligible to
 
                            -48-     LRB093 05656 EFG 17166 a
 1        receive Medicare benefits and $65 per month for each such
 2        annuitant who is eligible to receive Medicare benefits.
 3        The payments described in this subsection shall  be  paid
 4    from  the  tax  levy  authorized  under  Section  8-173; such
 5    amounts shall be credited to the reserve for  group  hospital
 6    care  and  group  medical and surgical plan benefits, and all
 7    payments to the Board  of  Education  under  this  subsection
 8    shall be charged against it.
 9        (b)  The  Board of Education health benefit plan referred
10    to in this Section and the board's payments to the  Board  of
11    Education  under  this  Section  are  not  and  shall  not be
12    construed to  be  pension  or  retirement  benefits  for  the
13    purposes  of  Section  5  of  Article  XIII  of  the Illinois
14    Constitution of 1970.

15        (40 ILCS 5/8-167) (from Ch. 108 1/2, par. 8-167)
16        Sec. 8-167. Restoration of rights.  An employee  who  has
17    withdrawn  as  a  refund  the  amounts  credited  for annuity
18    purposes, and who (i) re-enters service of the  employer  and
19    serves  for periods comprising at least 90 days 2 years after
20    the date of the last refund paid to him or (ii) has completed
21    at least 2 years of service under a participating system  (as
22    defined  in the Retirement Systems Reciprocal Act) other than
23    this Fund after the date of the last refund, shall  have  his
24    annuity  rights  restored  by  compliance  with the following
25    provisions:
26             (a)  After such 90 day or 2 year  period,  whichever
27        applies,  he  shall  repay  in full to the Fund, while in
28        service, in full  all  refunds  received,  together  with
29        interest  at  the effective rate from the dates of refund
30        to the date of repayment.; or
31             (b)  If payment is not made in  a  single  sum,  the
32        repayment  may be made in installments by deductions from
33        salary or otherwise in such amounts  and  manner  as  the
 
                            -49-     LRB093 05656 EFG 17166 a
 1        board,  by  rule,  may  prescribe,  with  interest at the
 2        effective rate accruing on unpaid balances.; or
 3             (c)  If the employee withdraws from service or  dies
 4        in  service before full repayment is made, service credit
 5        shall be restored in accordance with Section  8-230.3(b).
 6        such  rights  shall  not  be  restored,  but  the amount,
 7        including  interest,  repaid  by  him,  but  without  any
 8        further interest otherwise normally  credited,  shall  be
 9        refunded  to  him  or  to  his  widow,  or  in the manner
10        provided by the refund provisions of this Article  if  no
11        widow survives.
12             (d)  If   the   employee  repays  the  refund  while
13        participating in a participating system  (as  defined  in
14        the  Retirement  Systems  Reciprocal Act) other than this
15        Fund, the service credit restored  must  be  used  for  a
16        proportional  annuity  calculated  in accordance with the
17        Retirement Systems Reciprocal Act.  If not so  used,  the
18        restored service credit shall be forfeited and the amount
19        of the repayment shall be refunded, without interest.
20        This  Section  applies  also to any person who received a
21    refund from any annuity and  benefit  fund  or  pension  fund
22    which  was  merged  into  and  superseded  by the annuity and
23    benefit fund  provided  for  in  this  Article  on  or  after
24    December  31, 1959.  Upon repayment such person shall receive
25    credit for all annuity purposes in the  annuity  and  benefit
26    fund  provided  for in this Article for the period of service
27    covered by the repayment such refund.
28        The amount of refund repayment is  considered  as  salary
29    deductions  for  age  and service annuity and widow's annuity
30    purposes in the case of a male person.  In  the  latter  case
31    the amount of refund repayment is allocated in the applicable
32    proportion  for age and service and widow's annuity purposes.
33    Such person shall also be credited  with  city  contributions
34    for  age  and  service annuity, and widow's annuity if a male
 
                            -50-     LRB093 05656 EFG 17166 a
 1    employee, in the amount which would have  been  credited  and
 2    accrued  if  such  person  had  been  a  participant  in  and
 3    contributor  to  the annuity and benefit fund provided for in
 4    this Article during the period of such service on  the  basis
 5    of his salary during such period.
 6    (Source: P.A. 81-1536.)

 7        (40 ILCS 5/8-174.1) (from Ch. 108 1/2, par. 8-174.1)
 8        Sec.   8-174.1.   Employer  contributions  on  behalf  of
 9    employees.
10        (a)  The employer may make and may incur an obligation to
11    make contributions on behalf of its employees  in  an  amount
12    not to exceed the employee contributions required by Sections
13    8-137,  8-161, 8-174, 8-182 and 8-182.1 for all salary earned
14    after December 31, 1981.  If such employee contributions  are
15    not  made  or an obligation to make such contributions is not
16    incurred by the employer on  behalf  of  its  employees,  the
17    amount  that could have been contributed shall continue to be
18    deducted from salary.  If employee contributions are made  by
19    the  employer  on  behalf  of  its  employees,  they shall be
20    treated  as  employer  contributions   in   determining   tax
21    treatment  under  the  United  States  Internal Revenue Code;
22    however, each city shall continue  to  withhold  federal  and
23    State  income  taxes based upon these contributions until the
24    Internal Revenue Service or  the  Federal  courts  rule  that
25    pursuant  to  Section  414(h)  of  the United States Internal
26    Revenue Code, these contributions shall not  be  included  as
27    gross  income  of  the  employee  until such time as they are
28    distributed or made available.  The employer may  make  these
29    contributions  on  behalf  of its employees by a reduction in
30    the cash salary of the employee or by  an  offset  against  a
31    future  salary increase or by a combination of a reduction in
32    salary and offset  against  a  future  salary  increase.  The
33    employer shall pay these employee contributions from the same
 
                            -51-     LRB093 05656 EFG 17166 a
 1    source  of funds used in paying salary to the employee or, if
 2    the employer  is  a  Board  of  Education,  it  may  also  or
 3    alternatively pay such contributions in whole or in part from
 4    the  proceeds  of  the  pension  contribution  liability  tax
 5    authorized by Section 34-60.1 of the School Code, as amended.
 6    If  such a tax is levied with respect to any fiscal year of a
 7    Board of Education, that portion of the contributions  to  be
 8    paid by the Board of Education on behalf of its employees for
 9    that fiscal year from the proceeds of such a tax shall not be
10    due  and  payable  into the Fund until the collection, in the
11    calendar year following the calendar year in which such  levy
12    was  made,  of  the  actual  tax  bills  extending the second
13    installment of real estate taxes for the Board  of  Education
14    for  that  calendar  year,  pursuant  to Section 21-30 of the
15    Property Tax Code, and such Board of Education shall  not  be
16    required  to  pay  those  contributions  to  be paid from the
17    proceeds of such a tax into the Fund except as collected from
18    the  extension  of  the  actual  tax   bills.   If   employee
19    contributions  are  made  by  the  employer  on behalf of its
20    employees, they shall be treated for  all  purposes  of  this
21    Article 8, including Section 8-173, in the same manner and to
22    the  same  extent as employee contributions made by employees
23    and   deducted   from   salary;   provided,   however,   that
24    contributions which are made  by  a  Board  of  Education  on
25    behalf  of its employees shall not be treated as a pension or
26    retirement obligation of the Board of Education for  purposes
27    of Section 12 of "An Act in relation to State revenue sharing
28    with local governmental entities", approved July 31, 1969, as
29    amended.   For  purposes of Section 8-173, contributions made
30    by a Board of Education on behalf of its employees  shall  be
31    treated as contributions made by or on behalf of employees to
32    the Fund for the fiscal year for which the Board of Education
33    incurred the obligation to make such contributions.
34        (b)  Subject  to  the requirements of federal law and the
 
                            -52-     LRB093 05656 EFG 17166 a
 1    rules of the Board, the Fund may allow the employee to  elect
 2    to  have the employer pick up the optional contributions that
 3    the employee  has  elected  to  pay  to  the  Fund,  and  the
 4    contributions  so  picked  up  shall  be  treated as employer
 5    contributions for the  purpose  of  determining  federal  tax
 6    treatment.  The employer shall pick up the contributions by a
 7    reduction  in  the  cash salary of the employee and shall pay
 8    contributions from the same source of funds that is  used  to
 9    pay  earnings  of  the  employee.   The  election to have the
10    contributions picked  up  is  irrevocable  and  the  optional
11    contributions  may  not  thereafter  be  prepaid,  by  direct
12    payment or otherwise.
13        If  the  provision  authorizing the optional contribution
14    requires payment by a stated date (rather than  the  date  of
15    withdrawal  or retirement), the requirement will be deemed to
16    have been satisfied if (i) on or before the stated  date  the
17    employee  executes  a  valid irrevocable election to have the
18    contributions picked up under this subsection, and  (ii)  the
19    picked-up  contributions  are  in  fact  paid  to the Fund as
20    provided in the election.
21        If  employee  contributions  are  picked  up  under  this
22    subsection, they shall be treated for all  purposes  of  this
23    Article 8, including Section 8-173, in the same manner and to
24    the same extent as optional employee contributions made prior
25    to the date picked up.
26    (Source: P.A. 88-670, eff. 12-2-94.)

27        (40 ILCS 5/8-230.8 new)
28        Sec.  8-230.8.   Credit for certain military service.  In
29    addition to any creditable service established under  Section
30    8-230,  creditable  service  for annuity purposes only may be
31    granted for service in the armed forces of the United  States
32    that  was  not  immediately  preceded  by  service  with  the
33    employer.  A member shall receive service credit for military
 
                            -53-     LRB093 05656 EFG 17166 a
 1    service   under  this  Section,  provided  that  all  of  the
 2    following conditions are met:
 3             (1)  The employee must be employed by  the  employer
 4        and  contributing to the Fund for current service when he
 5        makes the payment for military service.
 6             (2)  The employee must have  entered  or  re-entered
 7        the  service  of  the  employer  within 2 years after his
 8        discharge.
 9             (3)  The discharge from military service  must  have
10        been other than a dishonorable discharge.
11             (4)  The  employee must apply to the Fund in writing
12        and provide evidence of  the  military  service  that  is
13        satisfactory to the Board.
14             (5)  The  employee  must  have  paid  for all unpaid
15        service with the employer (refund repayment, payment  for
16        temporary   service,   or  any  other  service  with  the
17        employer) before payment may be made under this Section.
18             (6)  The employee must  have  been  in  active  duty
19        military service; service in the military reserves is not
20        eligible under this Section.
21             (7)  The  employee  must  not  receive credit in any
22        other pension plan for this period of military service.
23             (8)  The employee must contribute  to  the  Fund  an
24        amount representing employee contributions.  The required
25        contribution  shall  be  calculated by the Fund, based on
26        the contribution rates in effect  during  the  period  of
27        military  service  and  the employee's salary rate on the
28        first day of service in the Fund following  the  military
29        service, and shall include interest at the effective rate
30        from  the  employee's  first  day  of service in the Fund
31        following the military service to the  date  of  payment.
32        The  employee  must pay the required contribution in full
33        before withdrawal or death in service.  If  the  employee
34        withdraws or dies in service before full payment is made,
 
                            -54-     LRB093 05656 EFG 17166 a
 1        the amount paid by him shall be refunded.
 2             (9)  The   amount   of   military   service   credit
 3        established by an employee under this Section, when added
 4        to  his  credit for military service under Section 8-230,
 5        shall not exceed 5 years.

 6        (40 ILCS 5/9-185) (from Ch. 108 1/2, par. 9-185)
 7        Sec. 9-185.  Board created.
 8        (a)  A board of 10 members 9 members shall constitute the
 9    board of trustees authorized to carry out the  provisions  of
10    this  Article.  The  board of trustees shall be known as "The
11    Retirement Board of the County Employees' Annuity and Benefit
12    Fund of .... County".  The board shall  consist  of  3  of  2
13    members  appointed  and  7  members  elected  as  hereinafter
14    prescribed.
15        (b)  The appointed members shall be appointed as follows:
16    One  member  shall  be  appointed  by the comptroller of such
17    county, who may be the comptroller or some person  chosen  by
18    him from among employees of the county, who are versed in the
19    affairs  of the comptroller's office; and one member shall be
20    appointed by the treasurer of such county,  who  may  be  the
21    treasurer  or  some person chosen by him from among employees
22    of  the  County  who  are  versed  in  the  affairs  of   the
23    treasurer's office.
24        The member appointed by the comptroller shall hold office
25    for a term ending on December 1st of the first year following
26    the  year of appointment.  The member appointed by the county
27    treasurer shall hold office for a term ending on December 1st
28    of the second year following the year of appointment.
29        Thereafter, each appointed member shall be  appointed  by
30    the  officer  that  appointed his predecessor for a term of 2
31    years.
32        (b-5)  One  member  shall  be  appointed  by  the   chief
33    financial  officer  of  the  forest  preserve district of the
 
                            -55-     LRB093 05656 EFG 17166 a
 1    county, who may be the chief financial officer or some person
 2    chosen  by  the  chief  financial  officer  from  among   the
 3    employees  of  the forest preserve district who are versed in
 4    the affairs  of  the  finance  office.   The  initial  member
 5    appointed  by  the  chief  financial  officer  of  the forest
 6    preserve district shall hold office  for  a  term  ending  on
 7    December  1st  of  the  first  year  following  the  year  of
 8    appointment.   Thereafter,  the member appointed by the chief
 9    financial officer of the forest preserve district shall  hold
10    office for a term of 2 years.
11        (c)  Three  county employee members of the board shall be
12    elected as follows: within 30 days from and  after  the  date
13    upon  which this Article comes into effect in the county, the
14    clerk of the county shall arrange for and hold  an  election.
15    One  employee shall be elected for a term ending on the first
16    day in the month of December of the first year next following
17    the effective date; one for a term ending on December 1st  of
18    the following year; and one for a term ending December 1st of
19    the second following year.
20        (d)  Beginning  December  1,  1988,  and  every  3  years
21    thereafter, an annuitant member of the board shall be elected
22    as follows:  the board shall arrange for and hold an election
23    in  which only those participants who are currently receiving
24    retirement benefits under this Article shall be  eligible  to
25    vote  and be elected.  Each such member shall be elected to a
26    term ending on the first day in the month of December of  the
27    third following year.
28        (d-1)  Beginning  December  1,  2001,  and  every 3 years
29    thereafter, an annuitant member of the board shall be elected
30    as follows:  the board shall arrange for and hold an election
31    in which only those participants who are currently  receiving
32    retirement  benefits  under this Article shall be eligible to
33    vote and be elected.  Each such member shall be elected to  a
34    term  ending on the first day in the month of December of the
 
                            -56-     LRB093 05656 EFG 17166 a
 1    third following year.  Until December 1, 2001,  the  position
 2    created  under  this  subsection  (d-1)  may be filled by the
 3    board as in the case of a vacancy.
 4        (e)  Beginning December 1, 1988,  if  a  Forest  Preserve
 5    District  Employees'  Annuity  and  Benefit  Fund shall be in
 6    force in such county and the board of this  fund  is  charged
 7    with  administering  the  affairs of such annuity and benefit
 8    fund for employees of such forest preserve district, a forest
 9    preserve district member of the board shall be elected as  of
10    December  1,  1988,  and every 3 years thereafter as follows:
11    the board shall arrange for and hold  an  election  in  which
12    only those employees of such forest preserve district who are
13    contributors to the annuity and benefit fund for employees of
14    such  forest  preserve district shall be eligible to vote and
15    be elected.  Each such member shall  be  elected  to  a  term
16    ending on the first day in the month of December of the third
17    following year.
18        (f)  Beginning  December  1,  2001,  and  every  3  years
19    thereafter,  if a Forest Preserve District Employees' Annuity
20    and Benefit Fund is in force in the county and the  board  of
21    this  Fund  is charged with administering the affairs of that
22    annuity and benefit fund for employees of the forest preserve
23    district, a forest preserve district annuitant member of  the
24    board  shall  be elected as follows:  the board shall arrange
25    for and hold an election in which only those participants who
26    are currently receiving retirement benefits under Article  10
27    shall  be  eligible to vote and be elected.  Each such member
28    shall be elected to a term ending on the  first  day  in  the
29    month  of  December  of  the  third  following  year.   Until
30    December  1, 2001, the position created under this subsection
31    (f) may be filled by the board as in the case of a vacancy.
32    (Source: P.A. 92-66, eff. 7-12-01.)

33        (40 ILCS 5/11-134) (from Ch. 108 1/2, par. 11-134)
 
                            -57-     LRB093 05656 EFG 17166 a
 1        Sec. 11-134.  Minimum annuities.
 2        (a)  An employee whose withdrawal occurs  after  July  1,
 3    1957 at age 60 or over, with 20 or more years of service, (as
 4    service  is  defined or computed in Section 11-216), for whom
 5    the age and service and prior  service  annuity  combined  is
 6    less  than the amount stated in this Section, shall, from and
 7    after the date  of  withdrawal,  in  lieu  of  all  annuities
 8    otherwise provided in this Article, be entitled to receive an
 9    annuity  for  life of an amount equal to 1 2/3% for each year
10    of service, of the highest average annual salary  for  any  5
11    consecutive  years  within  the  last  10  years  of  service
12    immediately  preceding the date of withdrawal; provided, that
13    in the case of any employee who withdraws on or after July 1,
14    1971, such employee age 60 or over with 20 or more  years  of
15    service,  shall be entitled to instead receive an annuity for
16    life equal to 1.67%  for  each  of  the  first  10  years  of
17    service;  1.90%  for  each  of  the next 10 years of service;
18    2.10% for each year of  service  in  excess  of  20  but  not
19    exceeding 30; and 2.30% for each year of service in excess of
20    30,  based  on  the  highest  average annual salary for any 4
21    consecutive  years  within  the  last  10  years  of  service
22    immediately preceding the date of withdrawal.
23        An employee who withdraws after July 1, 1957  and  before
24    January 1, 1988, with 20 or more years of service, before age
25    60,  shall  be  entitled  to an annuity, to begin not earlier
26    than age 55, if under such age at withdrawal, as computed  in
27    the  last  preceding paragraph, reduced 0.25% if the employee
28    was born before January 1, 1936, or 0.5% if the employee  was
29    born  on  or  after  January  1, 1936, for each full month or
30    fractional part thereof  that  his  attained  age  when  such
31    annuity is to begin is less than 60.
32        Any  employee  born  before January 1, 1936 who withdraws
33    with 20 or more years of service, and any employee with 20 or
34    more years of service who withdraws on or  after  January  1,
 
                            -58-     LRB093 05656 EFG 17166 a
 1    1988,  may  elect  to  receive, in lieu of any other employee
 2    annuity provided in this Section, an annuity for  life  equal
 3    to 1.80% for each of the first 10 years of service, 2.00% for
 4    each  of the next 10 years of service, 2.20% for each year of
 5    service in excess of 20, but not exceeding 30, and 2.40%  for
 6    each  year of service in excess of 30, of the highest average
 7    annual salary for any 4 consecutive years within the last  10
 8    years   of   service   immediately   preceding  the  date  of
 9    withdrawal, to begin not earlier than upon attained age of 55
10    years, if under such age at  withdrawal,  reduced  0.25%  for
11    each  full month or fractional part thereof that his attained
12    age when annuity is to begin is less than 60; except that  an
13    employee  retiring  on or after January 1, 1988, at age 55 or
14    over but less than age  60,  having  at  least  35  years  of
15    service, or an employee retiring on or after July 1, 1990, at
16    age 55 or over but less than age 60, having at least 30 years
17    of service, or an employee retiring on or after the effective
18    date  of  this  amendatory Act of 1997, at age 55 or over but
19    less than age 60, having at least 25 years of service,  shall
20    not be subject to the reduction in retirement annuity because
21    of retirement below age 60.
22        However,  in  the  case  of an employee who retired on or
23    after January 1, 1985 but before January 1, 1988, at  age  55
24    or  older  and with at least 35 years of service, and who was
25    subject  under  this  subsection  (a)  to  the  reduction  in
26    retirement annuity because of retirement below age  60,  that
27    reduction  shall  cease  to be effective January 1, 1991, and
28    the retirement annuity shall be recalculated accordingly.
29        Any employee who withdraws on or after July 1, 1990, with
30    20 or more years of service, may elect to receive, in lieu of
31    any other employee  annuity  provided  in  this  Section,  an
32    annuity  for  life equal to 2.20% for each year of service if
33    withdrawal is before January  1,  2002,  60  days  after  the
34    effective  date  of  this  amendatory Act of the 92nd General
 
                            -59-     LRB093 05656 EFG 17166 a
 1    Assembly, or 2.40% for each year of service if withdrawal  is
 2    on or after January 1, 2002, 60 days after the effective date
 3    of this amendatory Act of the 92nd General Assembly or later,
 4    of  the  highest  average annual salary for any 4 consecutive
 5    years  within  the  last  10  years  of  service  immediately
 6    preceding the date of withdrawal, to begin not  earlier  than
 7    upon  attained  age  of  55  years,  if  under  such  age  at
 8    withdrawal,  reduced  0.25% for each full month or fractional
 9    part thereof that his attained age when annuity is  to  begin
10    is  less  than 60; except that an employee retiring at age 55
11    or over but less than age 60, having at  least  30  years  of
12    service,  shall not be subject to the reduction in retirement
13    annuity because of retirement below age 60.
14        Any employee who withdraws on or after the effective date
15    of this amendatory Act of 1997  with  20  or  more  years  of
16    service  may  elect to receive, in lieu of any other employee
17    annuity provided in this Section, an annuity for  life  equal
18    to  2.20%  for  each  year of service if withdrawal is before
19    January 1, 2002, 60 days after the  effective  date  of  this
20    amendatory  Act  of  the  92nd General Assembly, or 2.40% for
21    each year of service if withdrawal is on or after January  1,
22    2002, 60 days after the effective date of this amendatory Act
23    of the 92nd General Assembly or later, of the highest average
24    annual  salary for any 4 consecutive years within the last 10
25    years  of  service  immediately   preceding   the   date   of
26    withdrawal,  to begin not earlier than upon attainment of age
27    55 (age 50 if the employee has at least 30 years of service),
28    reduced 0.25% for each full  month  or  remaining  fractional
29    part thereof that the employee's attained age when annuity is
30    to begin is less than 60; except that an employee retiring at
31    age 50 or over with at least 30 years of service or at age 55
32    or  over  with  at  least  25  years  of service shall not be
33    subject to the reduction in  retirement  annuity  because  of
34    retirement below age 60.
 
                            -60-     LRB093 05656 EFG 17166 a
 1        The  maximum  annuity payable under this paragraph (a) of
 2    this Section shall not exceed 70% of highest  average  annual
 3    salary in the case of an employee who withdraws prior to July
 4    1,  1971,  75%  if withdrawal takes place on or after July 1,
 5    1971 and  prior  to  January  1,  2002,  60  days  after  the
 6    effective  date  of  this  amendatory Act of the 92nd General
 7    Assembly, or 80% if withdrawal is on or after January 1, 2002
 8    60 days after the effective date of this  amendatory  Act  of
 9    the  92nd  General Assembly or later.  For the purpose of the
10    minimum annuity provided in said paragraphs $1,500  shall  be
11    considered  the  minimum  annual salary for any year; and the
12    maximum annual salary to be considered for the computation of
13    such annuity shall be $4,800 for  any  year  prior  to  1953,
14    $6,000  for the years 1953 to 1956, inclusive, and the actual
15    annual salary, as salary is defined in this Article, for  any
16    year thereafter.
17        (b)  For  an  employee  receiving disability benefit, his
18    salary for annuity purposes under this Section shall, for all
19    periods of disability benefit subsequent to the year 1956, be
20    the amount on which his disability benefit was based.
21        (c)  An employee with 20 or more years of service,  whose
22    entire  disability  benefit  credit  period  expires prior to
23    attainment of age 55 while still disabled for service,  shall
24    be  entitled upon withdrawal to the larger of (1) the minimum
25    annuity provided above assuming that he is then age  55,  and
26    reducing  such  annuity  to  its  actuarial equivalent at his
27    attained age on such date, or (2) the annuity  provided  from
28    his age and service and prior service annuity credits.
29        (d)  The  minimum  annuity  provisions as aforesaid shall
30    not apply to any former employee receiving  an  annuity  from
31    the fund, and who re-enters service as an employee, unless he
32    renders at least 3 years of additional service after the date
33    of re-entry.
34        (e)  An  employee  in  service  on  July  1, 1947, or who
 
                            -61-     LRB093 05656 EFG 17166 a
 1    became a contributor after July 1, 1947 and prior to July  1,
 2    1950,  or  who  shall  become a contributor to the fund after
 3    July 1, 1950 prior to attainment of  age  70,  who  withdraws
 4    after age 65 with less than 20 years of service, for whom the
 5    annuity  has  been fixed under the foregoing Sections of this
 6    Article shall, in lieu of the annuity so  fixed,  receive  an
 7    annuity as follows:
 8        Such amount as he could have received had the accumulated
 9    amounts  for  annuity  been  improved  with  interest  at the
10    effective  rate  to  the  date  of  his  withdrawal,  or   to
11    attainment  of age 70, whichever is earlier, and had the city
12    contributed to such earlier date for age and service  annuity
13    the amount that would have been contributed had he been under
14    age  65,  after  the date his annuity was fixed in accordance
15    with this Article, and assuming  his  annuity  were  computed
16    from  such  accumulations as of his age on such earlier date.
17    The annuity so computed shall not exceed  the  annuity  which
18    would  be  payable under the other provisions of this Section
19    if the employee was credited with 20  years  of  service  and
20    would qualify for annuity thereunder.
21        (f)  In  lieu  of  the annuity provided in this or in any
22    other Section of this Article, an  employee  having  attained
23    age  65  with at least 15 years of service who withdraws from
24    service on or after July 1, 1971 and whose  annuity  computed
25    under  other  provisions  of  this  Article  is less than the
26    amount provided under this paragraph  shall  be  entitled  to
27    receive  a minimum annual annuity for life equal to 1% of the
28    highest average annual salary for  any  4  consecutive  years
29    within  the  last  10  years of service immediately preceding
30    retirement for each year of his service plus the sum  of  $25
31    for  each  year  of  service.  Such  annual annuity shall not
32    exceed the maximum percentages stated under paragraph (a)  of
33    this Section of such highest average annual salary.
34        (f-1)  Instead  of  any other retirement annuity provided
 
                            -62-     LRB093 05656 EFG 17166 a
 1    in this Article, an employee who has at  least  10  years  of
 2    service  and  withdraws  from  service on or after January 1,
 3    1999 may elect to receive  a  retirement  annuity  for  life,
 4    beginning no earlier than upon attainment of age 60, equal to
 5    2.2%  if  withdrawal is before January 1, 2002, 60 days after
 6    the effective date of this amendatory Act of the 92nd General
 7    Assembly or 2.4% for each year of service if withdrawal is on
 8    or after January 1, 2002, 60 days after the effective date of
 9    this amendatory Act of the 92nd General Assembly or later, of
10    final average salary for each year of service, subject  to  a
11    maximum  of  75%  of  final  average  salary if withdrawal is
12    before January 1, 2002, 60 days after the effective  date  of
13    this  amendatory  Act of the 92nd General Assembly, or 80% if
14    withdrawal is on or after January 1, 2002 60 days  after  the
15    effective  date  of  this  amendatory Act of the 92nd General
16    Assembly or later.   For  the  purpose  of  calculating  this
17    annuity,  "final  average  salary"  means the highest average
18    annual salary for any 4 consecutive  years  in  the  last  10
19    years of service.
20        (g)  Any  annuity payable under the preceding subsections
21    of this  Section  11-134  shall  be  paid  in  equal  monthly
22    installments.
23        (h)  The  amendatory  provisions  of  part (a) and (f) of
24    this Section shall be effective July 1, 1971 and apply in the
25    case of every qualifying employee  withdrawing  on  or  after
26    July 1, 1971.
27        (h-1)  The  changes  made  to  this Section by Public Act
28    92-609 this amendatory  Act  of  the  92nd  General  Assembly
29    (increasing  the  retirement  formula  to  2.4%  per  year of
30    service and increasing the maximum to 80%) apply  to  persons
31    who  withdraw  from  service  on  or  after  January 1, 2002,
32    regardless of whether that withdrawal takes place before  the
33    effective date of that this amendatory Act.  In the case of a
34    person who withdraws from service on or after January 1, 2002
 
                            -63-     LRB093 05656 EFG 17166 a
 1    but  begins  to  receive  a retirement annuity before July 1,
 2    2002 the effective date of this amendatory Act,  the  annuity
 3    shall  be  recalculated,  with  the  increase  resulting from
 4    Public this amendatory Act 92-609 accruing from the date  the
 5    retirement  annuity  began.   The  changes made by Public Act
 6    92-609 control over the changes made by Public Act 92-599, as
 7    provided in Section 95 of P.A. 92-609.
 8        (i)  The amendatory provisions of this amendatory Act  of
 9    1985   relating   to  the  discount  of  annuity  because  of
10    retirement prior to attainment of age 60 and  increasing  the
11    retirement  formula  for  those  born before January 1, 1936,
12    shall apply only to qualifying employees  withdrawing  on  or
13    after August 16, 1985.
14        (j)  Beginning  on January 1, 1999, the minimum amount of
15    employee's annuity shall be $850 per month for life  for  the
16    following  classes  of  employees, without regard to the fact
17    that withdrawal occurred prior to the effective date of  this
18    amendatory Act of 1998:
19             (1)  any  employee  annuitant  alive and receiving a
20        life annuity on the effective date of this amendatory Act
21        of 1998, except a reciprocal annuity;
22             (2)  any employee annuitant alive  and  receiving  a
23        term annuity on the effective date of this amendatory Act
24        of 1998, except a reciprocal annuity;
25             (3)  any  employee  annuitant  alive and receiving a
26        reciprocal  annuity  on  the  effective  date   of   this
27        amendatory  Act of 1998, whose service in this fund is at
28        least 5 years;
29             (4)  any employee annuitant withdrawing after age 60
30        on or after the effective date of this amendatory Act  of
31        1998, with at least 10 years of service in this fund.
32        The  increases  granted  under  items (1), (2) and (3) of
33    this subsection (j) shall not be limited by any other Section
34    of this Act.
 
                            -64-     LRB093 05656 EFG 17166 a
 1        (k)  Beginning on January 1, 2004, the minimum amount  of
 2    employee's  annuity  shall be $950 per month for life for the
 3    following classes of employees, without regard  to  the  fact
 4    that  withdrawal occurred prior to the effective date of this
 5    amendatory Act of the 93rd General Assembly:
 6             (1)  any employee annuitant alive  and  receiving  a
 7        life annuity on the effective date of this amendatory Act
 8        of   the  93rd  General  Assembly,  except  a  reciprocal
 9        annuity;
10             (2)  any employee annuitant alive  and  receiving  a
11        term annuity on the effective date of this amendatory Act
12        of 93rd General Assembly except a reciprocal annuity;
13             (3)  any  employee  annuitant  alive and receiving a
14        reciprocal  annuity  on  the  effective  date   of   this
15        amendatory  Act  of  the  93rd  General  Assembly,  whose
16        service in this fund is at least 5 years;
17             (4)  any employee annuitant withdrawing after age 60
18        on  or after the effective date of this amendatory Act of
19        the 93rd General Assembly, with  at  least  10  years  of
20        service in this fund.
21        The  increases  granted  under  items (1), (2) and (3) of
22    this subsection (k) shall not be limited by any other Section
23    of this Act.
24        (l)  Beginning on January 1, 2005, the minimum amount  of
25    employee's annuity shall be $1,050 per month for life for the
26    following  classes  of  employees, without regard to the fact
27    that withdrawal occurred prior to the effective date of  this
28    amendatory Act of the 93rd General Assembly:
29             (1)  any  employee  annuitant  alive and receiving a
30        life annuity on the effective date of this amendatory Act
31        of  the  93rd  General  Assembly,  except  a   reciprocal
32        annuity;
33             (2)  any  employee  annuitant  alive and receiving a
34        term annuity on the effective date of this amendatory Act
 
                            -65-     LRB093 05656 EFG 17166 a
 1        of 93rd General Assembly except a reciprocal annuity;
 2             (3)  any employee annuitant alive  and  receiving  a
 3        reciprocal   annuity   on  the  effective  date  of  this
 4        amendatory  Act  of  the  93rd  General  Assembly,  whose
 5        service in this fund is at least 5 years;
 6             (4)  any employee annuitant withdrawing after age 60
 7        on or after the effective date of this amendatory Act  of
 8        the  93rd  General  Assembly,  with  at least 10 years of
 9        service in this fund.
10        The increases granted under items (1),  (2)  and  (3)  of
11    this subsection (l) shall not be limited by any other Section
12    of this Act.
13    (Source:  P.A.  92-599,  eff.  6-28-02;  92-609, eff. 7-1-02;
14    revised 9-11-02.)

15        (40 ILCS 5/11-134.1) (from Ch. 108 1/2, par. 11-134.1)
16        Sec. 11-134.1. Automatic increase in annuity.
17        (a)  An employee who  retired  or  retires  from  service
18    after  December  31, 1963, and before January 1, 1987, having
19    attained age 60 or more, shall, in the month  of  January  of
20    the year following the year in which the first anniversary of
21    retirement  occurs,  have  the  amount  of his then fixed and
22    payable monthly annuity increased by 1 1/2%, and  such  first
23    fixed annuity as granted at retirement increased by a further
24    1  1/2%  in  January of each year thereafter.  Beginning with
25    January of the year 1972, such increases shall be at the rate
26    of 2% in lieu of the aforesaid specified  1  1/2%.  Beginning
27    January,  1984,  such  increases  shall be at the rate of 3%.
28    Beginning in January of 1999, such increases shall be at  the
29    rate   of  3%  of  the  currently  payable  monthly  annuity,
30    including  any  increases  previously  granted   under   this
31    Article.   An  employee who retires on annuity after December
32    31, 1963 and before January 1, 1987, but  prior  to  age  60,
33    shall  receive  such  increases beginning with January of the
 
                            -66-     LRB093 05656 EFG 17166 a
 1    year immediately following the year in which he  attains  the
 2    age of 60 years.
 3        An  employee who retires from service on or after January
 4    1, 1987 shall, upon the first annuity payment date  following
 5    the  first anniversary of the date of retirement, or upon the
 6    first annuity payment date following attainment  of  age  60,
 7    whichever  occurs  later,  have  his  then  fixed and payable
 8    monthly annuity increased by 3%, and such  annuity  shall  be
 9    increased  by  an additional 3% of the original fixed annuity
10    on the same date each year thereafter.  Beginning in  January
11    of  1999,  such  increases  shall be at the rate of 3% of the
12    currently payable monthly annuity,  including  any  increases
13    previously granted under this Article.
14        (a-5)  Notwithstanding  the provisions of subsection (a),
15    upon the first annuity payment date following (1)  the  third
16    anniversary  of  retirement, (2) the attainment of age 53, or
17    (3) January 1, 2002, the date 60  days  after  the  effective
18    date  of  this  amendatory  Act of the 92nd General Assembly,
19    whichever occurs latest, the monthly annuity of  an  employee
20    who  retires on annuity prior to the attainment of age 60 and
21    who has not received an increase under subsection  (a)  shall
22    be  increased  by 3%, and the such annuity shall be increased
23    by an additional 3% of the current payable  monthly  annuity,
24    including  any  such  increases previously granted under this
25    Article,  on  the  same  date  each  year  thereafter.    The
26    increases  provided  under this subsection are in lieu of the
27    increases provided in subsection (a).
28        (a-6) Notwithstanding the provisions of  subsections  (a)
29    and (a-5), for all calendar years following the year in which
30    this  amendatory  Act  of  the  93rd  General  Assembly takes
31    effect, an increase in annuity under this Section that  would
32    otherwise  take  effect  at  any  time  during the year shall
33    instead take effect in January of that year.
34        (b)  Subsections  (a),  and  (a-5),  and  (a-6)  are  not
 
                            -67-     LRB093 05656 EFG 17166 a
 1    applicable to an  employee  retiring  and  receiving  a  term
 2    annuity,  as  defined  in  this Article, nor to any otherwise
 3    qualified employee who retires  before  he  shall  have  made
 4    employee  contributions (at the 1/2 of 1% rate as hereinafter
 5    provided) for the purposes of this additional annuity for not
 6    less than the equivalent of one full  year.   Such  employee,
 7    however,  shall make arrangement to pay to the fund a balance
 8    of such 1/2 of 1% contributions, based on his  final  salary,
 9    as  will bring such 1/2 of 1% contributions, computed without
10    interest, to the equivalent of or completion  of  one  year's
11    contributions.
12        Beginning  with the month of January, 1964, each employee
13    shall contribute by means of salary deductions 1/2 of  1%  of
14    each salary payment, concurrently with and in addition to the
15    employee contributions otherwise made for annuity purposes.
16        Each  such  additional  employee  contribution  shall  be
17    credited  to an account in the prior service annuity reserve,
18    to be used, together with city contributions, to  defray  the
19    cost  of  the specified annuity increments. Any balance as of
20    the beginning of each calendar year existing in such  account
21    shall be credited with interest at the rate of 3% per annum.
22        Such  employee  contributions  shall  not  be  subject to
23    refund, except to an employee who resigns  or  is  discharged
24    and  applies for refund under this Article, and also in cases
25    where a term annuity becomes payable.
26        In  such  cases  the  employee  contributions  shall   be
27    refunded   him,   without   interest,   and  charged  to  the
28    aforementioned account in the prior service annuity reserve.
29    (Source: P.A. 92-599,  eff.  6-28-02;  92-609,  eff.  7-1-02;
30    revised 8-26-02.)

31        (40 ILCS 5/11-145.1) (from Ch. 108 1/2, par. 11-145.1)
32        Sec. 11-145.1.  Minimum annuities for widows.
33        The  widow  otherwise  eligible for widow's annuity under
 
                            -68-     LRB093 05656 EFG 17166 a
 1    other Sections of this Article 11, of an employee hereinafter
 2    described, who retires from service  or  dies  while  in  the
 3    service  subsequent  to the effective date of this amendatory
 4    provision, and for which widow the amount of widow's  annuity
 5    and widow's prior service annuity combined, fixed or provided
 6    for  such  widow under other provisions of said Article 11 is
 7    less than the amount hereinafter provided  in  this  section,
 8    shall, from and after the date her otherwise provided annuity
 9    would  begin,  in lieu of such otherwise provided widow's and
10    widow's prior service annuity, be entitled to  the  following
11    indicated amount of annuity:
12        (a)  The  widow of any employee who dies while in service
13    on or after the date on which he attains age 60 if the  death
14    occurs  before July 1, 1990, or on or after the date on which
15    he attains age 55 if the death occurs on  or  after  July  1,
16    1990,  with  at least 20 years of service, or on or after the
17    date on which he attains age 50 if the  death  occurs  on  or
18    after  the effective date of this amendatory Act of 1997 with
19    at least 30 years of service, shall be entitled to an annuity
20    equal to one-half of the amount of annuity which her deceased
21    husband would have been entitled to receive had he  withdrawn
22    from the service on the day immediately preceding the date of
23    his death, conditional upon such widow having attained age 60
24    on  or  before  such  date if the death occurs before July 1,
25    1990, or age 55 if the death occurs on or after July 1, 1990,
26    or age 50 if the death occurs on or after January 1, 1998 and
27    the employee is age 50 or over with  at  least  30  years  of
28    service  or age 55 or over with at least 25 years of service.
29    Except as provided in subsection  (j),  the  widow's  annuity
30    shall  not,  however,  exceed  the sum of $500 a month if the
31    employee's death in service occurs before January  23,  1987.
32    The  widow's annuity shall not be limited to a maximum dollar
33    amount if the employee's death in service occurs on or  after
34    January 23, 1987.
 
                            -69-     LRB093 05656 EFG 17166 a
 1        If  the employee dies in service before July 1, 1990, and
 2    if such widow of such described employee shall not be  60  or
 3    more  years of age on such date of death, the amount provided
 4    in the immediately preceding paragraph for a widow 60 or more
 5    years of age, shall, in the case of such  younger  widow,  be
 6    reduced by 0.25% for each month that her then attained age is
 7    less than 60 years if the employee was born before January 1,
 8    1936, or dies in service on or after January 1, 1988, or 0.5%
 9    for  each  month  that  her then attained age is less than 60
10    years if the employee was born on or after  January  1,  1936
11    and dies in service before January 1, 1988.
12        If the employee dies in service on or after July 1, 1990,
13    and  if  the widow of the employee has not attained age 55 on
14    or before the employee's date of death, the amount  otherwise
15    provided in this subsection (a) shall be reduced by 0.25% for
16    each  month that her then attained age is less than 55 years;
17    except that if the employee  dies  in  service  on  or  after
18    January  1,  1998 at age 50 or over with at least 30 years of
19    service or at age 55 or  over  with  at  least  25  years  of
20    service,  there  shall be no reduction due to the widow's age
21    if she has attained age 50 on or before the  employee's  date
22    of  death,  and  if  the  widow has not attained age 50 on or
23    before the employee's date  of  death  the  amount  otherwise
24    provided in this subsection (a) shall be reduced by 0.25% for
25    each month that her then attained age is less than 50 years.
26        (b)  The widow of any employee who dies subsequent to the
27    date  of  his retirement on annuity, and who so retired on or
28    after the date on which he  attained  age  60  if  retirement
29    occurs  before July 1, 1990, or on or after the date on which
30    he attained age 55 if retirement occurs on or after  July  1,
31    1990,  with  at least 20 years of service, or on or after the
32    date on which he attained age 50 if the retirement occurs  on
33    or  after  the  effective date of this amendatory Act of 1997
34    with at least 30 years of service, shall be  entitled  to  an
 
                            -70-     LRB093 05656 EFG 17166 a
 1    annuity  equal to one-half of the amount of annuity which her
 2    deceased husband received as of the date of his retirement on
 3    annuity, conditional upon such widow having attained  age  60
 4    on  or before the date of her husband's retirement on annuity
 5    if retirement occurs before  July  1,  1990,  or  age  55  if
 6    retirement  occurs on or after July 1, 1990, or age 50 if the
 7    retirement on annuity occurs on or after January 1, 1998  and
 8    the  employee  is  age  50  or over with at least 30 years of
 9    service or age 55 or over with at least 25 years of  service.
10    Except  as  provided  in subsection (j), this widow's annuity
11    shall not, however, exceed the sum of $500  a  month  if  the
12    employee's  death occurs before January 23, 1987. The widow's
13    annuity shall not be limited to a maximum  dollar  amount  if
14    the  employee's  death  occurs  on or after January 23, 1987,
15    regardless of the  date  of  retirement;  provided  that,  if
16    retirement  was  before  January  23,  1987,  the employee or
17    eligible spouse repays the excess spouse refund with interest
18    at the effective rate from the date of refund to the date  of
19    repayment.
20        If  the  date  of the employee's retirement on annuity is
21    before July 1, 1990, and if  such  widow  of  such  described
22    employee shall not have attained such age of 60 or more years
23    on  such  date  of  her  husband's retirement on annuity, the
24    amount provided in the immediately preceding paragraph for  a
25    widow  60  or  more years of age on the date of her husband's
26    retirement on annuity,  shall,  in  the  case  of  such  then
27    younger  widow,  be  reduced by 0.25% for each month that her
28    then attained age was less than 60 years if the employee  was
29    born  before January 1, 1936, or withdraws from service on or
30    after January 1, 1988, or 0.5% for each month that  her  then
31    attained  age was less than 60 years if the employee was born
32    on or after January 1, 1936 and withdraws from service before
33    January 1, 1988.
34        If the date of the employee's retirement on annuity is on
 
                            -71-     LRB093 05656 EFG 17166 a
 1    or after July 1, 1990, and if the widow of the  employee  has
 2    not  attained age 55 by the date of the employee's retirement
 3    on annuity, the amount otherwise provided in this  subsection
 4    (b)  shall  be  reduced by 0.25% for each month that her then
 5    attained age is less  than  55  years;  except  that  if  the
 6    employee  retires  on  annuity on or after January 1, 1998 at
 7    age 50 or over with at least 30 years of service or at age 55
 8    or over with at least 25 years of service, there shall be  no
 9    reduction  due  to the widow's age if she has attained age 50
10    on or before the employee's date of death, and if  the  widow
11    has  not  attained age 50 on or before the employee's date of
12    death the amount otherwise provided in  this  subsection  (b)
13    shall  be  reduced  by  0.25%  for  each  month that her then
14    attained age is less than 50 years.
15        (c)  The  foregoing  provisions   relating   to   minimum
16    annuities  for  widows  shall  not  apply to the widow of any
17    former employee receiving an annuity from the fund on  August
18    2,   1965  or  on  the  effective  date  of  this  amendatory
19    provision, who re-enters service as a former employee, unless
20    such employee renders at least 3 years of additional  service
21    after the date of re-entry.
22        (d)  (Blank).
23        (e)  (Blank).
24        (f)  The  amendments  to  this Section by this amendatory
25    Act of 1985, relating to changing the discount because of age
26    from 1/2 of 1% to 0.25% per month  for  widows  of  employees
27    born  before  January 1, 1936, shall apply only to qualifying
28    widows whose husbands die while in the service  on  or  after
29    August  16, 1985 or withdraw and enter on annuity on or after
30    August 16, 1985.
31        (g)  Beginning on January 1, 1999, the minimum amount  of
32    widow's  annuity  shall  be  $800  per month for life for the
33    following classes of widows, without regard to the fact  that
34    the  death  of  the  employee occurred prior to the effective
 
                            -72-     LRB093 05656 EFG 17166 a
 1    date of this amendatory Act of 1998:
 2             (1)  any widow annuitant alive and receiving a  term
 3        annuity  on  the effective date of this amendatory Act of
 4        1998, except a reciprocal annuity;
 5             (2)  any widow annuitant alive and receiving a  life
 6        annuity  on  the effective date of this amendatory Act of
 7        1998, except a reciprocal annuity;
 8             (3)  any  widow  annuitant  alive  and  receiving  a
 9        reciprocal  annuity  on  the  effective  date   of   this
10        amendatory  Act  of 1998, whose employee spouse's service
11        in this fund was at least 5 years;
12             (4)  the widow of an employee with at least 10 years
13        of service in this fund who dies after retirement, if the
14        retirement occurred prior to the effective date  of  this
15        amendatory Act of 1998;
16             (5)  the widow of an employee with at least 10 years
17        of  service  in  this  fund who dies after retirement, if
18        withdrawal occurs on or after the effective date of  this
19        amendatory Act of 1998;
20             (6)  the  widow  of  an employee who dies in service
21        with at least 5 years of service in  this  fund,  if  the
22        death in service occurs on or after the effective date of
23        this amendatory Act of 1998.
24        The  increases  granted under items (1), (2), (3) and (4)
25    of this subsection (g) shall not  be  limited  by  any  other
26    Section of this Act.
27        (g-5)  Beginning  on  January 1, 2004, the minimum amount
28    of widow's annuity shall be $900 per month for life  for  the
29    following  classes of widows, without regard to the fact that
30    the death of the employee occurred  prior  to  the  effective
31    date of this amendatory Act of the 93rd General Assembly:
32             (1)  any  widow annuitant alive and receiving a term
33        annuity on the effective date of this amendatory  Act  of
34        the 93rd General Assembly, except a reciprocal annuity;
 
                            -73-     LRB093 05656 EFG 17166 a
 1             (2)  any  widow annuitant alive and receiving a life
 2        annuity on the effective date of this amendatory  Act  of
 3        the 93rd General Assembly, except a reciprocal annuity;
 4             (3)  any  widow  annuitant  alive  and  receiving  a
 5        reciprocal   annuity   on  the  effective  date  of  this
 6        amendatory  Act  of  the  93rd  General  Assembly,  whose
 7        employee spouse's service in this fund  was  at  least  5
 8        years;
 9             (4)  the widow of an employee with at least 10 years
10        of service in this fund who dies after retirement, if the
11        retirement  occurred  prior to the effective date of this
12        amendatory Act of the 93rd General Assembly;
13             (5)  the widow of an employee with at least 10 years
14        of service in this fund who  dies  after  retirement,  if
15        withdrawal  occurs on or after the effective date of this
16        amendatory Act of the 93rd General Assembly;
17             (6)  the widow of an employee who  dies  in  service
18        with  at  least  5  years of service in this fund, if the
19        death in service occurs on or after the effective date of
20        this amendatory Act of the 93rd General Assembly.
21        The increases granted under items (1), (2), (3)  and  (4)
22    of  this  subsection  (g-5) shall not be limited by any other
23    Section of this Act.
24        (g-10)  Beginning on January 1, 2005, the minimum  amount
25    of widow's annuity shall be $1,000 per month for life for the
26    following  classes of widows, without regard to the fact that
27    the death of the employee occurred  prior  to  the  effective
28    date of this amendatory Act of the 93rd General Assembly:
29             (1)  any  widow annuitant alive and receiving a term
30        annuity on the effective date of this amendatory  Act  of
31        the 93rd General Assembly, except a reciprocal annuity;
32             (2)  any  widow annuitant alive and receiving a life
33        annuity on the effective date of this amendatory  Act  of
34        the 93rd General Assembly, except a reciprocal annuity;
 
                            -74-     LRB093 05656 EFG 17166 a
 1             (3)  any  widow  annuitant  alive  and  receiving  a
 2        reciprocal   annuity   on  the  effective  date  of  this
 3        amendatory  Act  of  the  93rd  General  Assembly,  whose
 4        employee spouse's service in this fund  was  at  least  5
 5        years;
 6             (4)  the widow of an employee with at least 10 years
 7        of service in this fund who dies after retirement, if the
 8        retirement  occurred  prior to the effective date of this
 9        amendatory Act of the 93rd General Assembly;
10             (5)  the widow of an employee with at least 10 years
11        of service in this fund who  dies  after  retirement,  if
12        withdrawal  occurs on or after the effective date of this
13        amendatory Act of the 93rd General Assembly;
14             (6)  the widow of an employee who  dies  in  service
15        with  at  least  5  years of service in this fund, if the
16        death in service occurs on or after the effective date of
17        this amendatory Act of the 93rd General Assembly.
18        The increases granted under items (1), (2), (3)  and  (4)
19    of  this  subsection (g-10) shall not be limited by any other
20    Section of this Act.
21        (h)  The widow of an employee  who  retired  or  died  in
22    service  on or after January 1, 1985 and before July 1, 1990,
23    at age 55 or older, and with at least  35  years  of  service
24    credit,  shall  be  entitled  to  have  her  widow's  annuity
25    increased,  effective  January 1, 1991, to an amount equal to
26    50% of the retirement  annuity  that  the  deceased  employee
27    received  on  the  date  of  retirement,  or  would have been
28    eligible to receive if he had retired on  the  day  preceding
29    the  date of his death in service, provided that if the widow
30    had not attained  age  60  by  the  date  of  the  employee's
31    retirement  or  death  in  service, the amount of the annuity
32    shall be reduced by  0.25%  for  each  month  that  her  then
33    attained   age  was  less  than  age  60  if  the  employee's
34    retirement or death in service occurred on or  after  January
 
                            -75-     LRB093 05656 EFG 17166 a
 1    1,  1988, or by 0.5%  for each month that her attained age is
 2    less than age 60 if the employee's  retirement  or  death  in
 3    service occurred prior to January 1, 1988.  However, in cases
 4    where  a  refund  of excess contributions for widow's annuity
 5    has been paid by the Fund, the increase in  benefit  provided
 6    by  this subsection (h) shall be contingent upon repayment of
 7    the refund to the Fund with interest at  the  effective  rate
 8    from the date of refund to the date of payment.
 9        (i)  If  a  deceased  employee  is receiving a retirement
10    annuity at the time of death and  that  death  occurs  on  or
11    after  June 27, 1997, the widow may elect to receive, in lieu
12    of any other annuity provided under this Article, 50% of  the
13    deceased  employee's  retirement annuity at the time of death
14    reduced by 0.25% for each month that the widow's age  on  the
15    date  of  death  is less than 55; except that if the employee
16    dies on or after January 1, 1998 and withdrew from service on
17    or after June 27, 1997 at age 50 or over  with  at  least  30
18    years  of service or at age 55 or over with at least 25 years
19    of service, there shall be no reduction due  to  the  widow's
20    age  if  she  has attained age 50 on or before the employee's
21    date of death, and if the widow has not attained age 50 on or
22    before the employee's date  of  death  the  amount  otherwise
23    provided in this subsection (i) shall be reduced by 0.25% for
24    each  month that her age on the date of death is less than 50
25    years.   However,  in  cases  where  a   refund   of   excess
26    contributions  for widow's annuity has been paid by the Fund,
27    the benefit provided by this  subsection  (i)  is  contingent
28    upon repayment of the refund to the Fund with interest at the
29    effective  rate  from  the  date  of  refund  to  the date of
30    payment.
31        (j)  For widows of employees who died before January  23,
32    1987  after  retirement on annuity or in service, the maximum
33    dollar amount limitation on widow's annuity  shall  cease  to
34    apply,  beginning  with  the  first annuity payment after the
 
                            -76-     LRB093 05656 EFG 17166 a
 1    effective date of this amendatory Act of 1997; except that if
 2    a refund of excess contributions for widow's annuity has been
 3    paid by the Fund, the increase resulting from this subsection
 4    (j) shall not begin before the refund has been repaid to  the
 5    Fund,  together  with interest at the effective rate from the
 6    date of the refund to the date of repayment.
 7        (k)  In lieu  of  any  other  annuity  provided  in  this
 8    Article,  an  eligible  spouse  of  an  employee  who dies in
 9    service at least 60 days after the  effective  date  of  this
10    amendatory  Act of the 92nd General Assembly with at least 10
11    years of service shall be entitled to an annuity  of  50%  of
12    the  minimum formula annuity earned and accrued to the credit
13    of the employee at the date of death.  For  the  purposes  of
14    this  subsection,  the  minimum  formula  annuity  earned and
15    accrued to the credit of the employee is equal to  2.40%  for
16    each year of service of the highest average annual salary for
17    any  4  consecutive years within the last 10 years of service
18    immediately preceding the date of death, up to a  maximum  of
19    80% of the highest average annual salary.  This annuity shall
20    not  be reduced due to the age of the employee or spouse.  In
21    addition to any other  eligibility  requirements  under  this
22    Article,  the spouse is eligible for this annuity only if the
23    marriage was in effect for 10 full years or more.
24    (Source: P.A. 92-599, eff. 6-28-02.)

25        (40 ILCS 5/11-145.2 new)
26        Sec.  11-145.2.  Automatic  annual  increase  in  widow's
27    annuity.
28        (a)  Every widow's annuity, other than those annuities of
29    widows  originally  entitled  to  term  annuities,  shall  be
30    increased on (1) January 1 next following the effective  date
31    of  this amendatory Act of the 93rd General Assembly, (2) the
32    January 1 immediately after the deceased employee's death, or
33    (3) the January 1 on or next after  the  date  on  which  the
 
                            -77-     LRB093 05656 EFG 17166 a
 1    deceased  employee  would  have  been eligible for his or her
 2    first increase, whichever occurs latest, by an  amount  equal
 3    to  3%  of  the amount of widow's annuity.  On each January 1
 4    after the date of the initial increase  under  this  Section,
 5    the  widow's annuity shall be increased by an amount equal to
 6    3% of the amount of widow's annuity payable at  the  time  of
 7    the  increase,  including  any  increases  previously granted
 8    under this Article.
 9        (b)  Limitations on the maximum amount of widow's annuity
10    imposed under Section 11-149  do  not  apply  to  the  annual
11    increases under this Section.
12        (c)  The  increases  under  this  Section do not apply to
13    reversionary  annuities  under  Section  11-134.2   or   term
14    annuities under Section 11-152.  The increases provided under
15    this  Section  do  apply  to  compensation  and  supplemental
16    annuities under Section 11-146.

17        (40 ILCS 5/11-160.1) (from Ch. 108 1/2, par. 11-160.1)
18        Sec. 11-160.1.  Payments to city Group health benefit.
19        (a)  For  the  purposes of this Section, "city annuitant"
20    means a person  receiving  an  age  and  service  annuity,  a
21    widow's  annuity,  a  child's  annuity,  or a minimum annuity
22    under this Article as a direct result of previous  employment
23    by the City of Chicago ("the city").
24        (b)  The  board  shall  pay to the city, on behalf of the
25    board's city annuitants who participate in any of the  city's
26    health care plans, the following amounts:
27             (1)  From  July  1,  2003 through June 30, 2008, $85
28        per month for each such annuitant who is not eligible  to
29        receive Medicare benefits and $55 per month for each such
30        annuitant who is eligible to receive Medicare benefits.
31             (2)  From  July  1,  2008 through June 30, 2013, $95
32        per month for each such annuitant who is not eligible  to
33        receive Medicare benefits and $65 per month for each such
 
                            -78-     LRB093 05656 EFG 17166 a
 1        annuitant who is eligible to receive Medicare benefits.
 2        The  payments  described in this subsection shall be paid
 3    from the tax  levy  authorized  under  Section  11-169;  such
 4    amounts  shall  be credited to the reserve for group hospital
 5    care and group medical and surgical plan  benefits,  and  all
 6    payments  to the city required under this subsection shall be
 7    charged against it.
 8        (c)  The city health  care  plans  referred  to  in  this
 9    Section  and  the  board's  payments  to  the city under this
10    Section are not and shall not be construed to be  pension  or
11    retirement  benefits for the purposes of Section 5 of Article
12    XIII of the Illinois Constitution of 1970.
13        (a)  For the purposes of this  Section:  (1)  "annuitant"
14    means  a person receiving an age and service annuity, a prior
15    service annuity, a widow's annuity, a widow's  prior  service
16    annuity,  or  a minimum annuity, under Article 5, 6, 8 or 11,
17    by reason of previous  employment  by  the  City  of  Chicago
18    (hereinafter,  in  this  Section,  "the city"); (2) "Medicare
19    Plan annuitant" means an annuitant described in item (1)  who
20    is eligible for Medicare benefits; and (3) "non-Medicare Plan
21    annuitant"  means  an  annuitant described in item (1) who is
22    not eligible for Medicare benefits.
23        (b)  The  city  shall  offer  group  health  benefits  to
24    annuitants and their eligible  dependents  through  June  30,
25    2003.   The  basic city health care plan available as of June
26    30, 1988 (hereinafter called the basic city plan) shall cease
27    to be a plan offered by the  city,  except  as  specified  in
28    subparagraphs  (4)  and (5) below, and shall be closed to new
29    enrollment or transfer of coverage for any non-Medicare  Plan
30    annuitant  as  of  June  27,  1997.   The  city  shall  offer
31    non-Medicare  Plan  annuitants  and their eligible dependents
32    the option of enrolling in its Annuitant  Preferred  Provider
33    Plan  and  may offer additional plans for any annuitant.  The
34    city may amend, modify, or terminate any  of  its  additional
 
                            -79-     LRB093 05656 EFG 17166 a
 1    plans  at  its sole discretion.  If the city offers more than
 2    one annuitant  plan,  the  city  shall  allow  annuitants  to
 3    convert  coverage  from  one  city annuitant plan to another,
 4    except the basic city plan, during times  designated  by  the
 5    city,  which  periods  of time shall occur at least annually.
 6    For the period dating from June 27,  1997  through  June  30,
 7    2003,  monthly  premium rates may be increased for annuitants
 8    during the time of their participation in non-Medicare plans,
 9    except as provided in subparagraphs (1) through (4)  of  this
10    subsection.
11             (1)  For  non-Medicare  Plan  annuitants who retired
12        prior to  January  1,  1988,  the  annuitant's  share  of
13        monthly premium for non-Medicare Plan coverage only shall
14        not  exceed the highest premium rate chargeable under any
15        city non-Medicare Plan annuitant coverage as of  December
16        1, 1996.
17             (2)  For  non-Medicare Plan annuitants who retire on
18        or after  January  1,  1988,  the  annuitant's  share  of
19        monthly premium for non-Medicare Plan coverage only shall
20        be  the  rate in effect on December 1, 1996, with monthly
21        premium increases to take effect no sooner than April  1,
22        1998  at  the  lower  of  (i) the premium rate determined
23        pursuant to subsection (g) or (ii) 10% of the immediately
24        previous month's rate for similar coverage.
25             (3)  In  no  event  shall  any   non-Medicare   Plan
26        annuitant's  share  of  monthly  premium for non-Medicare
27        Plan coverage  exceed  10%  of  the  annuitant's  monthly
28        annuity.
29             (4)  Non-Medicare  Plan  annuitants who are enrolled
30        in the basic city plan as of July 1, 1998 may  remain  in
31        the  basic city plan, if they so choose, on the condition
32        that they are not entitled to the caps on rates set forth
33        in subparagraphs (1) through (3), and their premium  rate
34        shall   be   the   rate  determined  in  accordance  with
 
                            -80-     LRB093 05656 EFG 17166 a
 1        subsections (c) and (g).
 2             (5)  Medicare  Plan  annuitants  who  are  currently
 3        enrolled in the basic city  plan  for  Medicare  eligible
 4        annuitants  may  remain  in that plan, if they so choose,
 5        through June 30, 2003.  Annuitants shall not  be  allowed
 6        to  enroll  in  or  transfer into the basic city plan for
 7        Medicare eligible annuitants on or after  July  1,  1999.
 8        The   city   shall   continue   to   offer  annuitants  a
 9        supplemental  Medicare   Plan   for   Medicare   eligible
10        annuitants  through June 30, 2003, and the city may offer
11        additional plans to Medicare eligible annuitants  in  its
12        sole  discretion.   All  Medicare  Plan annuitant monthly
13        rates shall be determined in accordance with  subsections
14        (c) and (g).
15        (c)  The  city  shall  pay 50% of the aggregated costs of
16    the  claims  or  premiums,  whichever   is   applicable,   as
17    determined  in  accordance with subsection (g), of annuitants
18    and their dependents under all health care plans  offered  by
19    the  city.  The city may reduce its obligation by application
20    of  price  reductions  obtained  as  a  result  of  financial
21    arrangements with providers or plan administrators.
22        (d)   From January 1, 1993 until June 30, 2003, the board
23    shall pay to the city  on  behalf  of  each  of  the  board's
24    annuitants  who  chooses  to participate in any of the city's
25    plans the following amounts: up to a maximum of $75 per month
26    for each such annuitant  who  is  not  qualified  to  receive
27    medicare  benefits,  and up to a maximum of $45 per month for
28    each such annuitant who  is  qualified  to  receive  medicare
29    benefits.
30        The  payments  described in this subsection shall be paid
31    from the tax  levy  authorized  under  Section  11-178;  such
32    amounts  shall  be credited to the reserve for group hospital
33    care and group medical and surgical plan  benefits,  and  all
34    payments  to the city required under this subsection shall be
 
                            -81-     LRB093 05656 EFG 17166 a
 1    charged against it.
 2        (e)  The city's obligations under subsections (b) and (c)
 3    shall terminate on June  30,  2003,  except  with  regard  to
 4    covered expenses incurred but not paid as of that date.  This
 5    subsection  shall  not  affect  other obligations that may be
 6    imposed by law.
 7        (f)  The group coverage plans described in  this  Section
 8    are  not  and  shall  not  be  construed  to  be  pension  or
 9    retirement benefits for purposes of Section 5 of Article XIII
10    of the Illinois Constitution of 1970.
11        (g)  For  each  annuitant  plan  offered by the city, the
12    aggregate cost of claims, as reflected in the  claim  records
13    of  the  plan  administrator, shall be estimated by the city,
14    based upon a written determination by a qualified independent
15    actuary to be appointed and paid by the city and  the  board.
16    If  the estimated annual cost for each annuitant plan offered
17    by  the  city  is  more  than  the  estimated  amount  to  be
18    contributed by the city for that plan pursuant to subsections
19    (b) and (c) during that year plus the estimated amounts to be
20    paid pursuant to subsection (d)  and  by  the  other  pension
21    boards  on  behalf  of  other  participating  annuitants, the
22    difference shall be paid by all annuitants  participating  in
23    the  plan,  except  as provided in subsection (b).  The city,
24    based upon the  determination  of  the  independent  actuary,
25    shall set the monthly amounts to be paid by the participating
26    annuitants.   The  board may deduct the amounts to be paid by
27    its annuitants from  the  participating  annuitants'  monthly
28    annuities.
29        If it is determined from the city's annual audit, or from
30    audited  experience  data,  that the total amount paid by all
31    participating annuitants was more or less than the difference
32    between (1) the cost  of  providing  the  group  health  care
33    plans,  and  (2) the sum of the amount to be paid by the city
34    as determined under subsection (c) and the  amounts  paid  by
 
                            -82-     LRB093 05656 EFG 17166 a
 1    all  the pension boards, then the independent actuary and the
 2    city shall account for the excess or shortfall  in  the  next
 3    year's   payments   by  annuitants,  except  as  provided  in
 4    subsection (b).
 5        (h)  An annuitant may elect to terminate  coverage  in  a
 6    plan  at the end of any month, which election shall terminate
 7    the annuitant's obligation to contribute  toward  payment  of
 8    the excess described in subsection (g).
 9        (i)  The  city  shall  advise  the  board of all proposed
10    premium increases for health care at least 75 days  prior  to
11    the  effective  date of the change, and any increase shall be
12    prospective only.
13    (Source: P.A. 92-599, eff. 6-28-02.)

14        (40 ILCS 5/11-160.2 new)
15        Sec. 11-160.2.  Payments to board of education for  group
16    health benefits.
17        (a)  Should  the Board of Education continue to sponsor a
18    retiree health plan, the board is authorized to  pay  to  the
19    Board  of Education, on behalf of each eligible annuitant who
20    chooses to participate in the Board  of  Education's  retiree
21    health benefit plan, the following amounts:
22             (1)  From  July  1,  2003 through June 30, 2008, $85
23        per month for each such annuitant who is not eligible  to
24        receive Medicare benefits and $55 per month for each such
25        annuitant who is eligible to receive Medicare benefits.
26             (2)  From  July  1,  2008 through June 30, 2013, $95
27        per month for each such annuitant who is not eligible  to
28        receive Medicare benefits and $65 per month for each such
29        annuitant who is eligible to receive Medicare benefits.
30        The  payments  described in this subsection shall be paid
31    from the tax  levy  authorized  under  Section  11-169;  such
32    amounts  shall  be credited to the reserve for group hospital
33    care and group medical and surgical plan  benefits,  and  all
 
                            -83-     LRB093 05656 EFG 17166 a
 1    payments  to  the  Board  of  Education under this subsection
 2    shall be charged against it.
 3        (b)  The Board of Education health benefit plan  referred
 4    to  in  this Section and the board's payments to the Board of
 5    Education under  this  Section  are  not  and  shall  not  be
 6    construed  to  be  pension  or  retirement  benefits  for the
 7    purposes of  Section  5  of  Article  XIII  of  the  Illinois
 8    Constitution of 1970.

 9        (40 ILCS 5/11-163) (from Ch. 108 1/2, par. 11-163)
10        Sec.  11-163. Restoration of rights.  An employee who has
11    withdrawn as  a  refund  the  amounts  credited  for  annuity
12    purposes,  and  who (i) re-enters service of the employer and
13    serves for periods comprising at least 90 days 2 years  after
14    the date of the last refund paid to him or (ii) has completed
15    at  least 2 years of service under a participating system (as
16    defined in the Retirement Systems Reciprocal Act) other  than
17    this  Fund  after the date of the last refund, shall have his
18    annuity rights restored by making application to the board in
19    writing for the privilege of re-instating such rights and  by
20    compliance with the following provisions:
21             (a)  After  that  90 day or 2 year period, whichever
22        applies, he shall repay in full to  the  Fund,  while  in
23        service,  in  full  all  refunds  received, together with
24        interest at the effective rate from the application dates
25        of such refund or refunds to the date of repayment.;
26             (b)  If  payment  is  not  made  in  a  single  sum,
27        repayment may be made in installments by deductions  from
28        salary  or  otherwise,  in such manner and amounts as the
29        board, by rule,  may  prescribe,  with  interest  at  the
30        effective  rate  accruing  on the unpaid balance employee
31        may elect.  The employee shall be credited with  interest
32        at  the  effective rate from the date of each installment
33        until full repayment is made.
 
                            -84-     LRB093 05656 EFG 17166 a
 1             (c)  If the employee withdraws from service or  dies
 2        in  service before full repayment is made, service credit
 3        shall be restored in accordance with Section 11-221.2(b).
 4             (d)  If the employee withdraws from service or  dies
 5        in  service  or  during  the  required  90  day or 2 year
 6        period, any repayments made shall  be  refunded,  without
 7        interest  thereon  and  in  accordance  with  the  refund
 8        provisions of this Article.
 9             (e)  If   the   employee  repays  the  refund  while
10        participating in a participating system  (as  defined  in
11        the  Retirement  Systems  Reciprocal Act) other than this
12        Fund, the service credit restored  must  be  used  for  a
13        proportional  annuity  calculated  in accordance with the
14        Retirement Systems Reciprocal Act.  If not so  used,  the
15        restored service credit shall be forfeited and the amount
16        of the repayment shall be refunded, without interest.
17    (Source: Laws 1963, p. 161.)

18        (40 ILCS 5/11-167) (from Ch. 108 1/2, par. 11-167)
19        Sec.  11-167.  Refunds in lieu of annuity.  In lieu of an
20    annuity, an employee who withdraws, and whose  annuity  would
21    amount  to  less  than  $800  a  month  for life may elect to
22    receive a refund of the total sum accumulated to  his  credit
23    from employee contributions for annuity purposes.
24        The  widow of any employee, eligible for annuity upon the
25    death of her husband, whose annuity would amount to less than
26    $800 a month for life, may, in lieu  of  a  widow's  annuity,
27    elect  to  receive  a refund of the accumulated contributions
28    for annuity purposes, based on the amounts contributed by her
29    deceased  employee  husband,  but  reduced  by  any   amounts
30    theretofore  paid  to him in the form of an annuity or refund
31    out of such accumulated contributions.
32        Accumulated  contributions   shall   mean   the   amounts
33    including   interest  credited  thereon  contributed  by  the
 
                            -85-     LRB093 05656 EFG 17166 a
 1    employee for age and service and widow's annuity to the  date
 2    of  his  withdrawal  or  death,  whichever  first occurs, and
 3    including the accumulations from any amounts contributed  for
 4    him  as  salary  deductions  while  receiving duty disability
 5    benefits; provided that such amounts contributed by the  city
 6    after  December 31, 1983 while the employee is receiving duty
 7    disability benefits and amounts credited to the employee  for
 8    annuity  purposes  by  the fund after December 31, 2000 while
 9    the employee is receiving ordinary disability benefits  shall
10    not be included.
11        The acceptance of such refund in lieu of widow's annuity,
12    on the part of a widow, shall not deprive a child or children
13    of the right to receive a child's annuity as provided  for in
14    Sections 11-153 and 11-154 of this Article, and neither shall
15    the  payment  of a child's annuity in the case of such refund
16    to a widow reduce the amount herein set forth  as  refundable
17    to such widow electing a refund in lieu of widow's annuity.
18    (Source:  P.A.  91-887,  eff.  7-6-00;  92-599, eff. 6-28-02;
19    revised 10-22-02.)

20        (40 ILCS 5/11-170.1) (from Ch. 108 1/2, par. 11-170.1)
21        Sec. 11-170.1. Pickup of employee contributions.
22        (a)  The employer may pick up the employee  contributions
23    required  by Sections 11-156, 11-170, 11-174 and 11-175.1 for
24    salary  earned  after  December  31,   1981.    If   employee
25    contributions  are  not picked up, the amount that would have
26    been picked up  under  this  amendatory  Act  of  1980  shall
27    continue  to  be  deducted from salary.  If contributions are
28    picked up they shall be treated as employer contributions  in
29    determining  tax  treatment  under the United States Internal
30    Revenue  Code;  however,  the  employer  shall  continue   to
31    withhold  Federal  and  state  income  taxes based upon these
32    contributions until  the  Internal  Revenue  Service  or  the
33    Federal  courts  rule  that pursuant to Section 414(h) of the
 
                            -86-     LRB093 05656 EFG 17166 a
 1    United States  Internal  Revenue  Code,  these  contributions
 2    shall  not  be included as gross income of the employee until
 3    such time as they are distributed  or  made  available.   The
 4    employer shall pay these employee contributions from the same
 5    source  of  funds  which  is  used  in  paying  salary to the
 6    employee.  The employer may pick up these contributions by  a
 7    reduction  in the cash salary of the employee or by an offset
 8    against a future salary increase or by  a  combination  of  a
 9    reduction  in  salary  and  offset  against  a  future salary
10    increase.  If employee contributions are picked up they shall
11    be treated for all purposes of  this  Article  11,  including
12    Section  11-169, in the same manner and to the same extent as
13    employee contributions made prior to the date picked up.
14        (b)  Subject to the requirements of federal law  and  the
15    rules  of the Board, the Fund may allow the employee to elect
16    to have the employer pick up the optional contributions  that
17    the  employee  has  elected  to  pay  to  the  Fund,  and the
18    contributions so picked  up  shall  be  treated  as  employer
19    contributions  for  the  purpose  of  determining federal tax
20    treatment.  The employer shall pick up the contributions by a
21    reduction in the cash salary of the employee  and  shall  pay
22    contributions  from  the same source of funds that is used to
23    pay earnings of the  employee.   The  election  to  have  the
24    contributions  picked  up  is  irrevocable,  and the optional
25    contributions  may  not  thereafter  be  prepaid,  by  direct
26    payment or otherwise.
27        If the provision authorizing  the  optional  contribution
28    requires  payment  by  a stated date (rather than the date of
29    withdrawal or retirement), the requirement will be deemed  to
30    have  been  satisfied if (i) on or before the stated date the
31    employee executes a valid irrevocable election  to  have  the
32    contributions  picked  up under this subsection, and (ii) the
33    picked-up contributions are in  fact  paid  to  the  Fund  as
34    provided in the election.
 
                            -87-     LRB093 05656 EFG 17166 a
 1        If  employee  contributions  are  picked  up  under  this
 2    subsection,  they  shall  be treated for all purposes of this
 3    Article 11, including Section 11-169, in the same manner  and
 4    to  the  same  extent as optional employee contributions made
 5    prior to the date picked up.
 6    (Source: P.A. 81-1536.)

 7        (40 ILCS 5/11-221.4 new)
 8        Sec. 11-221.4.  Credit for certain military service.   In
 9    addition  to any creditable service established under Section
10    11-221, creditable service for annuity purposes only  may  be
11    granted  for  up to 2 years of service in the armed forces of
12    the United  States  that  was  not  immediately  preceded  by
13    service  with  the  employer.  A member shall receive service
14    credit for military service under this Section, provided that
15    all of the following conditions are met:
16             (1)  The employee must be employed by  the  employer
17        and  contributing to the Fund for current service when he
18        makes the payment for military service.
19             (2)  The employee must have  entered  or  re-entered
20        the  service  of  the  employer  within 2 years after his
21        discharge.
22             (3)  The discharge from military service  must  have
23        been other than a dishonorable discharge.
24             (4)  The  employee must apply to the Fund in writing
25        and provide evidence of  the  military  service  that  is
26        satisfactory to the Board.
27             (5)  The  employee  must  have  paid  for all unpaid
28        service with the employer (refund repayment, payment  for
29        temporary   service,   or  any  other  service  with  the
30        employer) before payment may be made under this Section.
31             (6)  The employee must  have  been  in  active  duty
32        military service; service in the military reserves is not
33        eligible under this Section.
 
                            -88-     LRB093 05656 EFG 17166 a
 1             (7)  The  employee  must  not  receive credit in any
 2        other pension plan for this period of military service.
 3             (8)  The employee must contribute  to  the  Fund  an
 4        amount representing employee contributions.  The required
 5        contribution  shall  be  calculated by the Fund, based on
 6        the contribution  rates in effect during  the  period  of
 7        military  service  and  the employee's salary rate on the
 8        first day of service in the Fund following  the  military
 9        service, and shall include interest at the effective rate
10        from  the  employee's  first  day  of service in the Fund
11        following the military service to the  date  of  payment.
12        The  employee  must pay the required contribution in full
13        before withdrawal or death in service.  If  the  employee
14        withdraws or dies in service before full payment is made,
15        the amount paid by him shall be refunded.
16             (9)  The   amount   of   military   service   credit
17        established  by  an employee under this Section shall not
18        exceed 2 years.

19        (40 ILCS 5/13-301) (from Ch. 108 1/2, par. 13-301)
20        Sec.  13-301.  Retirement  annuity;   eligibility.    Any
21    employee  who  withdraws  from  service and meets the age and
22    service  requirements  and  other  conditions  set  forth  in
23    subsections (a), (b),  (c)  or  (d)  hereof  is  entitled  to
24    receive a retirement annuity.
25        (a)  Withdrawal  on  or after age 60.  Any employee, upon
26    withdrawal from service on or after attainment of age 60  and
27    having  at  least  5  years  of  service,  is  entitled  to a
28    retirement annuity.
29        (b)  Withdrawal  on  or  after  attainment   of   minimum
30    retirement qualifications and prior to age 60.
31             (1)  Any  employee,  upon withdrawal from service on
32        or after attainment of age 55 (age  50  if  the  employee
33        first  entered service before June 13, 1997) but prior to
 
                            -89-     LRB093 05656 EFG 17166 a
 1        age 60 and having  at  least  10  years  of  service,  is
 2        entitled  to  a  retirement  annuity  as  of  the date of
 3        withdrawal or, at the option of the employee, at any time
 4        thereafter.
 5             (2)  Any  employee  who  withdraws   on   or   after
 6        attainment  of  age  55  (age  50  if  the employee first
 7        entered service before June 13, 1997) and prior to age 60
 8        having at least 5 years but less than 10 years of service
 9        is entitled to a retirement annuity  upon  attainment  of
10        age  62,  subject  to  the  other  requirements  of  this
11        Article.
12             (3)  Any  employee  who withdraws from service on or
13        after attainment of age 50 but prior to  age  60  and  is
14        eligible  for early retirement without discount under the
15        Rule of 80 as  provided  in  subsection  (c)  of  Section
16        13-302 is entitled to a retirement annuity at the time of
17        withdrawal.
18        (c)  Withdrawal  prior  to  minimum  retirement age.  Any
19    employee, upon withdrawal from service prior to age  55  (age
20    50  if  the  employee  first  entered service before June 13,
21    1997) and having at least 10 years of service,  shall  become
22    entitled  to  a  retirement annuity upon attainment of age 55
23    (age 50 if the employee first entered service before June 13,
24    1997) or,  at  the  option  of  the  employee,  at  any  time
25    thereafter,   subject  to  the  other  requirements  of  this
26    Article.
27        (d)  Withdrawal while disabled.  Any employee  having  at
28    least 5 years of service who has received ordinary disability
29    benefits  on  or after January 1, 1986 for the maximum period
30    of time hereinafter  prescribed,  and  who  continues  to  be
31    disabled  and  withdraws from service, shall be entitled to a
32    retirement annuity.  In the case of an  employee  who  enters
33    service  after  the  effective date of this amendatory Act of
34    the 93rd General Assembly, the required 5 years of service is
 
                            -90-     LRB093 05656 EFG 17166 a
 1    exclusive of service credit described in Section 13-313.  The
 2    age and service conditions as to eligibility for such annuity
 3    shall be waived as to the employee, but the early  retirement
 4    discount   under  Section  13-302(b)  shall  apply.   If  the
 5    employee is under age 55  on  the  date  of  withdrawal,  the
 6    retirement  annuity  shall  be  computed by assuming that the
 7    employee is then age 55 and then  reduced  to  its  actuarial
 8    equivalent  at  his  attained  age  on that date according to
 9    applicable  mortality  tables  and   interest   rates.    The
10    retirement  annuity shall not be payable for any period prior
11    to the employee's attainment  of  age  55  during  which  the
12    employee  is  able to return to gainful employment.  Upon the
13    employee's death while in receipt of a retirement annuity,  a
14    surviving  spouse  or  minor  children  shall  be entitled to
15    receive a  surviving  spouse's  annuity  or  child's  annuity
16    subject  to the conditions hereinafter prescribed in Sections
17    13-305 through 13-308.
18    (Source: P.A. 92-599, eff. 6-28-02.)

19        (40 ILCS 5/13-302) (from Ch. 108 1/2, par. 13-302)
20        Sec. 13-302.  Computation of retirement annuity.
21        (a)  Computation of annuity.  An employee  who  withdraws
22    from service on or after July 1, 1989 and who has met the age
23    and service requirements and other conditions for eligibility
24    set  forth  in  Section 13-301 of this Article is entitled to
25    receive a retirement  annuity  for  life  equal  to  2.2%  of
26    average  final  salary  for  each  of  the  first 20 years of
27    service, and 2.4% of average final salary for  each  year  of
28    service  in  excess  of 20.  The retirement annuity shall not
29    exceed 80% of average final salary.
30        (b)  Early retirement discount.  If an  employee  retires
31    prior  to  attainment  of  age  60 with less than 30 years of
32    service, the annuity computed above shall be reduced  by  1/2
33    of 1% for each full month between the date the annuity begins
 
                            -91-     LRB093 05656 EFG 17166 a
 1    and  attainment  of  age  60, or each full month by which the
 2    employee's service is less than 30 years, whichever is  less.
 3    However,  where  the employee first enters service after June
 4    13, 1997 and does not have  at  least  10  years  of  service
 5    exclusive  of  credit  under Article 20, the annuity computed
 6    above shall be reduced by 1/2  of  1%  for  each  full  month
 7    between the date the annuity begins and attainment of age 60.
 8        (c)  Rule  of 80 - Early retirement without discount. For
 9    an employee who retires on or after January 1, 2003 but on or
10    before December 31, 2007, if the employee is eligible  for  a
11    retirement  annuity  under Section 13-301 and has at least 10
12    years of service exclusive of credit under Article 20 and  if
13    at  the  date  of withdrawal the employee's age when added to
14    the number of years of his or her creditable  service  equals
15    at  least 80, the early retirement discount in subsection (b)
16    of this Section does not apply. For purposes of this Rule  of
17    80, portions of years shall be considered in whole months.
18        An  employee  who  has  terminated  employment  with  the
19    employer  under  this  Article prior to the effective date of
20    this  amendatory  Act  of  the  92nd  General  Assembly   and
21    subsequently  re-enters  service  must remain in service with
22    the employer under this Article for at least  2  years  after
23    re-entry  during  the period beginning on January 1, 2003 and
24    ending  on  December  31,  2007  to  be  entitled  to   early
25    retirement without discount under this subsection (c).
26        In the case of an employee who retires under the terms of
27    Article 20, eligibility for early retirement without discount
28    under  this subsection (c) shall be based upon the employee's
29    age and service credit at the time  of  withdrawal  from  the
30    final fund.
31        (c-1)  Early   retirement  without  discount;  retirement
32    after June 29, 1997 and before January 1, 2003.  An  employee
33    who  (i)  has  attained  age 55 (age 50 if the employee first
34    entered service before June 13, 1997), (ii) has at  least  10
 
                            -92-     LRB093 05656 EFG 17166 a
 1    years  of service exclusive of credit under Article 20, (iii)
 2    retires after June 29, 1997 and before January 1,  2003,  and
 3    (iv)  retires  within  6  months  of  the  last day for which
 4    retirement contributions were required, may elect at the time
 5    of application to make a one-time  employee  contribution  to
 6    the  Fund  and  thereby  avoid the early retirement reduction
 7    specified in subsection (b).  The exercise  of  the  election
 8    shall   also   obligate  the  employer  to  make  a  one-time
 9    nonrefundable contribution to the Fund.
10        The one-time employee and employer contributions shall be
11    a percentage of the  retiring  employee's  highest  full-time
12    annual  salary,  calculated  as  the  total  amount of salary
13    included in the highest 26 consecutive pay periods as used in
14    the average  final  salary  calculation,  and  based  on  the
15    employee's  age and service at retirement.  The employee rate
16    shall be 7% multiplied by  the  lesser  of  the  following  2
17    numbers:  (1)  the  number of years, or portion thereof, that
18    the employee is less than age 60; or (2) the number of years,
19    or portion thereof, that the employee's service is less  than
20    30  years.  The employer contribution shall be at the rate of
21    20% for each year, or portion thereof, that  the  participant
22    is less than age 60.
23        Upon   receipt   of  the  application,  the  Board  shall
24    determine   the   corresponding   employee    and    employer
25    contributions.   The  annuity shall not be payable under this
26    subsection until both the required  contributions  have  been
27    received  by  the  Fund.  However, the date the contributions
28    are received shall  not  be  considered  in  determining  the
29    effective date of retirement.
30        The number of employees who may retire under this Section
31    in any year may be limited at the option of the District to a
32    specified  percentage  of those eligible, not lower than 30%,
33    with the right to participate to  be  allocated  among  those
34    applying  on  the  basis  of  seniority in the service of the
 
                            -93-     LRB093 05656 EFG 17166 a
 1    employer.
 2        An   employee   who   has   terminated   employment   and
 3    subsequently re-enters service shall not be entitled to early
 4    retirement without discount under this subsection unless  the
 5    employee  continues  in  service  for  at least 4 years after
 6    re-entry.
 7        (d)  Annual increase.  Except for employees retiring  and
 8    receiving a term annuity, an employee who retires on or after
 9    July  1, 1985 but before July 12, 2001, shall, upon the first
10    payment date following the first anniversary of the  date  of
11    retirement,  have  the monthly annuity increased by 3% of the
12    amount  of  the  monthly  annuity  fixed  at  the   date   of
13    retirement.  Except  for  employees  retiring and receiving a
14    term annuity, an employee who retires on or  after  July  12,
15    2001  shall, on the first day of the month in which the first
16    anniversary of  the  date  of  retirement  occurs,  have  the
17    monthly  annuity increased by 3% of the amount of the monthly
18    annuity fixed at the date of retirement. The monthly  annuity
19    shall  be increased by an additional 3% on the same date each
20    year thereafter.   Beginning  January  1,  1993,  all  annual
21    increases  payable  under this subsection (or any predecessor
22    provision, regardless of the date  of  retirement)  shall  be
23    calculated  at  the rate of 3% of the monthly annuity payable
24    at  the  time  of  the  increase,  including  any   increases
25    previously granted under this Article.
26        Any  employee who (i) retired before July 1, 1985 with at
27    least 10 years of creditable service,  (ii)  is  receiving  a
28    retirement  annuity  under  this  Article,  other than a term
29    annuity, and (iii) has not received any annual increase under
30    this subsection, shall begin receiving the  annual  increases
31    provided  under  this  subsection  (d)  beginning on the next
32    annuity payment date following June 13, 1997.
33        (e)  Minimum retirement annuity.   Beginning  January  1,
34    1993,  the  minimum  monthly retirement annuity shall be $500
 
                            -94-     LRB093 05656 EFG 17166 a
 1    for any annuitant having at least 10 years of  service  under
 2    this Article, other than a term annuitant or an annuitant who
 3    began  receiving  the  annuity  before attaining age 60.  Any
 4    such annuitant who is receiving a  monthly  annuity  of  less
 5    than  $500  shall  have the annuity increased to $500 on that
 6    date.
 7        Beginning January 1, 1993, the minimum monthly retirement
 8    annuity shall be $250 for any annuitant (other than a term or
 9    reciprocal annuitant or an annuitant under subsection (d)  of
10    Section  13-301)  having  less than 10 years of service under
11    this Article, and  for  any  annuitant  (other  than  a  term
12    annuitant)  having  at  least  10 years of service under this
13    Article who began receiving the annuity before attaining  age
14    60.  Any such annuitant who is receiving a monthly annuity of
15    less  than  $250  shall have the annuity increased to $250 on
16    that date.
17        Beginning August 1, 2001 on the first day  of  the  month
18    following  the month in which this amendatory Act of the 92nd
19    General Assembly takes effect (and without regard to  whether
20    the  annuitant  was  in  service  on  or after that effective
21    date),  the  minimum  monthly  retirement  annuity  for   any
22    annuitant  having at least 10 years of service, other than an
23    annuitant whose annuity is subject  to  an  early  retirement
24    discount,  shall be $500 plus $25 for each year of service in
25    excess of 10, not to exceed $750 for an annuitant with 20  or
26    more  years  of service. In the case of a reciprocal annuity,
27    this minimum shall apply only if the annuitant has  at  least
28    10 years of service under this Article, and the amount of the
29    minimum  annuity  shall  be  reduced  by  the  sum of all the
30    reciprocal  annuities  payable  to  the  annuitant  by  other
31    participating systems under Article 20 of this Code.
32        Notwithstanding any other provision of  this  subsection,
33    beginning  on  the  first annuity payment date following July
34    12, 2001, an employee who retired before August 23, 1989 with
 
                            -95-     LRB093 05656 EFG 17166 a
 1    at least 10 years of service under this  Article  but  before
 2    attaining  age  60  (regardless  of  whether  the  retirement
 3    annuity was subject to an early retirement discount) shall be
 4    entitled to the same minimum monthly retirement annuity under
 5    this  subsection  as an employee who retired with at least 10
 6    years of service under this Article and after  attaining  age
 7    60.
 8        Notwithstanding  any  other provision of this subsection,
 9    beginning on the first day of the month following  the  month
10    in  which  this  amendatory  Act of the 93rd General Assembly
11    takes effect (and without regard to whether the annuitant was
12    in service on or after that effective date), an employee  who
13    retired on or after August 23, 1989 with at least 10 years of
14    service  under  this  Article  but  before  attaining  age 60
15    (regardless of whether the retirement annuity was subject  to
16    an  early  retirement discount but not a retiree who had been
17    receiving a retirement annuity pursuant to subsection (d)  of
18    Section  13-301),  shall  be  entitled  to  the  same minimum
19    monthly  retirement  annuity  under  this  subsection  as  an
20    employee who retired with at least 10 years of service  under
21    this Article and after attaining age 60.
22    (Source: P.A. 92-53, eff. 7-12-01; 92-599, eff. 6-28-02.)

23        (40 ILCS 5/13-306) (from Ch. 108 1/2, par. 13-306)
24        Sec. 13-306.  Computation of surviving spouse's annuity.
25        (a)  Computation  of the annuity.  The surviving spouse's
26    annuity shall be equal  to  60%  of  the  retirement  annuity
27    earned  and  accrued  to the credit of the deceased employee,
28    whether death occurs while in service  or  after  withdrawal,
29    plus  1%  for each year of total service of the employee to a
30    maximum of 85%; provided, however,  that  if  the  employee's
31    death  arises  out  of  and  in  the course of the employee's
32    service to the employer and is compensable under  either  the
33    Illinois  Workers'  Compensation  Act  or  Illinois  Workers'
 
                            -96-     LRB093 05656 EFG 17166 a
 1    Occupational  Diseases Act, the surviving spouse's annuity is
 2    payable regardless of the employee's length  of  service  and
 3    shall  be  not  less than 50% of the employee's salary at the
 4    date of death.
 5        For any death in service the  early  retirement  discount
 6    required  under  Section  13-302(b)  shall  not be applied in
 7    computing the retirement annuity  upon  which  is  based  the
 8    surviving spouse's annuity.
 9        (b)  Reciprocal  service.   For any employee or annuitant
10    who retires on or after July 1, 1985 and whose  death  occurs
11    after  January  1,  1991, having at least 15 years of service
12    with the employer under this Article, and who was eligible at
13    the time of death or elected at the  time  of  retirement  to
14    have  his or her retirement annuity calculated as provided in
15    Section 20-131 of this Code,  the  surviving  spouse  benefit
16    shall be calculated as of the date of the employee's death as
17    indicated in subsection (a) as a percentage of the employee's
18    total  benefit  as if all service had been with the employer.
19    That benefit shall then be reduced by the amounts payable  by
20    each  of the reciprocal funds as of the date of death so that
21    the total surviving spouse benefit at that date will be equal
22    to the benefit which would have been payable had all  service
23    been with the employer under this Article.
24        (c)  Discount  for  age  differential.  The annuity for a
25    surviving spouse shall be discounted by 0.25% for  each  full
26    month  that the spouse is younger than the employee as of the
27    date of withdrawal from service or  death  in  service  to  a
28    maximum  discount  of  60% of the surviving spouse annuity as
29    calculated under  subsections  (a),  (b),  and  (e)  of  this
30    Section.   The discount shall be reduced by 10% for each full
31    year the marriage has been in continuous  effect  as  of  the
32    date  of  withdrawal  or death in service.  There shall be no
33    discount if the marriage has been in continuous effect for 10
34    full years or more at the time  of  withdrawal  or  death  in
 
                            -97-     LRB093 05656 EFG 17166 a
 1    service.
 2        (d)  Annual  increase.  Effective August 23, 1989, on the
 3    first day of each calendar month in  which  there  occurs  an
 4    anniversary  of  the employee's date of retirement or date of
 5    death,  whichever  occurred  first,  the  surviving  spouse's
 6    annuity, other than a  term  annuity  under  Section  13-307,
 7    shall  be increased by an amount equal to 3% of the amount of
 8    the annuity.  Beginning January 1, 1993, all annual increases
 9    payable under this subsection (or any  predecessor  provision
10    of this Article) shall be calculated at the rate of 3% of the
11    monthly   annuity  payable  at  the  time  of  the  increase,
12    including  any  increases  previously  granted   under   this
13    Article.
14        Beginning  January  1,  1993, surviving spouse annuitants
15    whose deceased spouse died, retired or withdrew from  service
16    before  August  23,  1989  with  at least 10 years of service
17    under this Article shall be eligible for the annual increases
18    provided under this subsection.
19        (e)  Minimum surviving spouse's annuity.
20             (1)  Beginning January 1, 1993, the minimum  monthly
21        surviving   spouse's   annuity  shall  be  $500  for  any
22        annuitant whose deceased spouse had at least 10 years  of
23        service under this Article, other than a surviving spouse
24        who  is  a  term annuitant or whose deceased spouse began
25        receiving a retirement annuity under this Article  before
26        attainment   of   age  60.   Any  such  surviving  spouse
27        annuitant who is receiving a monthly annuity of less than
28        $500 shall have the annuity increased  to  $500  on  that
29        date.
30             Beginning  January  1,  1993,  the  minimum  monthly
31        surviving   spouse's   annuity  shall  be  $250  for  any
32        annuitant (other than a term or reciprocal  annuitant  or
33        an  annuitant  survivor  under  subsection (d) of Section
34        13-301) whose deceased spouse had less than 10  years  of
 
                            -98-     LRB093 05656 EFG 17166 a
 1        service  under this Article, and for any annuitant (other
 2        than a term annuitant) whose deceased spouse had at least
 3        10  years  of  service  under  this  Article  and   began
 4        receiving  a retirement annuity under this Article before
 5        attainment  of  age  60.   Any  such   surviving   spouse
 6        annuitant who is receiving a monthly annuity of less than
 7        $250  shall  have  the  annuity increased to $250 on that
 8        date.
 9             (2)  Beginning August 1, 2001 on the  first  day  of
10        the  month  following  the month in which this amendatory
11        Act of  the  92nd  General  Assembly  takes  effect  (and
12        without  regard  to  whether  the  deceased spouse was in
13        service on or after that  effective  date),  the  minimum
14        monthly  surviving  spouse's  annuity  for  any annuitant
15        whose deceased spouse had at least 10  years  of  service
16        shall be the greater of the following:
17                  (A)  An amount equal to $500, plus $25 for each
18             year  of  the deceased spouse's service in excess of
19             10, not  to  exceed  $750  for  an  annuitant  whose
20             deceased  spouse  had  20  or more years of service.
21             This  subdivision  (A)  is  not  applicable  if  the
22             deceased spouse received a retirement  annuity  that
23             was subject to an early retirement discount.
24                  (B)  An   amount   equal  to  (i)  50%  of  the
25             retirement annuity earned and accrued to the  credit
26             of  the  deceased  spouse at the time of death, plus
27             (ii) the amount of any annual  increases  applicable
28             to  the  surviving  spouse's  annuity (including the
29             amount of any reversionary annuity) under subsection
30             (d) before July 12, 2001 the effective date of  this
31             amendatory  Act of the 92nd General Assembly. In any
32             case in which a refund of excess  contributions  for
33             the  surviving  spouse  annuity has been paid by the
34             Fund and the surviving spouse annuity  is  increased
 
                            -99-     LRB093 05656 EFG 17166 a
 1             due  to the application of this subdivision (B), the
 2             amount of that refund shall be recovered by the Fund
 3             as an offset against the amount of the  increase  in
 4             annuity   arising   from  the  application  of  this
 5             subdivision (B).
 6                  In  the  case  of  a  reciprocal  annuity,  the
 7             minimum annuity calculated  under  this  subdivision
 8             (e)(2)  shall  apply  only if the deceased spouse of
 9             the annuitant had at least 10 years of service under
10             this Article, and the amount of the minimum  annuity
11             shall  be  reduced  by the sum of all the reciprocal
12             annuities  payable  to  the   annuitant   by   other
13             participating systems under Article 20 of this Code.
14                  The   minimum  annuity  calculated  under  this
15             subdivision (e)(2) is in addition to the  amount  of
16             any reversionary annuity that may be payable.
17             (3)  Beginning  August  1,  2001 on the first day of
18        the month following the month in  which  this  amendatory
19        Act  of  the  92nd  General  Assembly  takes  effect (and
20        without regard to whether  the  deceased  spouse  was  in
21        service  on  or after that effective date), any surviving
22        spouse who is receiving  a  term  annuity  under  Section
23        13-307  or  any predecessor provision of this Article may
24        have that term annuity recalculated and  converted  to  a
25        minimum  surviving  spouse  annuity under this subsection
26        (e).
27             (4)  Notwithstanding any  other  provision  of  this
28        subsection, beginning August 1, 2001 on the first annuity
29        payment   date  following  the  effective  date  of  this
30        amendatory Act of the 92nd General Assembly, an annuitant
31        whose deceased spouse retired before August 23, 1989 with
32        at least 10 years  of  service  under  this  Article  but
33        before  attaining  age  60  (regardless  of  whether  the
34        retirement  annuity  was  subject  to an early retirement
 
                            -100-    LRB093 05656 EFG 17166 a
 1        discount) shall be entitled to the same  minimum  monthly
 2        surviving  spouse's  annuity  under this subsection as an
 3        annuitant whose deceased spouse retired with at least  10
 4        years  of  service under this Article and after attaining
 5        age 60.  Further notwithstanding any other  provision  of
 6        this  subsection, beginning on the first day of the month
 7        following the month in which this amendatory Act  of  the
 8        93rd  General  Assembly  takes effect, an annuitant whose
 9        deceased spouse retired on or after August 23, 1989  with
10        at  least  10  years  of  service  under this Article but
11        before  attaining  age  60  (regardless  of  whether  the
12        retirement annuity was subject  to  an  early  retirement
13        discount  but  not  the surviving spouse of a retiree who
14        had been  receiving  a  retirement  annuity  pursuant  to
15        subsection  (d)  of  Section 13-301) shall be entitled to
16        the same minimum monthly surviving spouse's annuity under
17        this subsection as an  annuitant  whose  deceased  spouse
18        retired  with  at  least  10  years of service under this
19        Article and after attaining age 60.
20             (5)  The  minimum  annuity   provided   under   this
21        subsection  (e)  shall  be  subject  to  the age discount
22        provided under subsection (c) of this Section.
23    (Source: P.A. 92-53, eff. 7-12-01.)

24        (40 ILCS 5/13-314) (from Ch. 108 1/2, par. 13-314)
25        Sec.   13-314.  Alternative    provisions    for    Water
26    Reclamation District commissioners.
27        (a)  Transfer of credits.  Any Water Reclamation District
28    commissioner  elected  by  vote  of  the  people  and who has
29    elected to participate in this Fund may transfer to this Fund
30    credits and creditable service accumulated  under  any  other
31    pension  fund or retirement system established under Articles
32    2 through 18 of this Code, upon payment to the  Fund  of  (1)
33    the  amount  by which the employer and employee contributions
 
                            -101-    LRB093 05656 EFG 17166 a
 1    that would have been required if he had participated in  this
 2    Fund during the period for which credit is being transferred,
 3    plus  interest, exceeds the amounts actually transferred from
 4    such other fund or system to this  Fund,  plus  (2)  interest
 5    thereon  at  6% per year compounded annually from the date of
 6    transfer to the date of payment.
 7        (b)  Alternative annuity.  Any  participant  commissioner
 8    may elect to establish alternative credits for an alternative
 9    annuity  by  electing  in writing to make additional optional
10    contributions in accordance with this Section and  procedures
11    established  by the Board.  Unless and until such time as the
12    U.S. Internal Revenue Service or the federal courts provide a
13    favorable ruling as described in Section  13-502(f),  a  such
14    commissioner  may  discontinue making the additional optional
15    contributions by notifying the Fund in writing in  accordance
16    with this Section and procedures established by the Board.
17        Additional  optional  contributions  for  the alternative
18    annuity shall be as follows:
19             (1)  For service after the  option  is  elected,  an
20        additional   contribution   of  3%  of  salary  shall  be
21        contributed to the Fund on the same basis and  under  the
22        same  conditions  as contributions required under Section
23        13-502.
24             (2)  For  contributions   on   past   service,   the
25        additional contribution shall be 3% of the salary for the
26        applicable period of service, plus interest at the annual
27        rate  from  time  to  time  as  determined  by the Board,
28        compounded annually from the date of service to the  date
29        of  payment.  Contributions for service before the option
30        is elected may be made in a lump sum payment to the  Fund
31        or  by  contributing  to  the  Fund on the same basis and
32        under the same conditions as contributions required under
33        Section 13-502.  All payments for past  service  must  be
34        paid  in  full  before  credit  is  given.  No additional
 
                            -102-    LRB093 05656 EFG 17166 a
 1        optional contributions may be  made  for  any  period  of
 2        service for which credit has been previously forfeited by
 3        acceptance  of  a  refund, unless the refund is repaid in
 4        full with interest  at  the  rate  specified  in  Section
 5        13-603, from the date of refund to the date of repayment.
 6        In lieu of the retirement annuity otherwise payable under
 7    this Article, any commissioner who has elected to participate
 8    in  the  Fund  and  make additional optional contributions in
 9    accordance with this Section, has attained age 55, and has at
10    least 6 years of  service  credit,  may  elect  to  have  the
11    retirement   annuity   computed   as   follows:   3%  of  the
12    participant's average final salary as a commissioner for each
13    of the first 8 years of  service  credit,  plus  4%  of  such
14    salary  for  each of the next 4 years of service credit, plus
15    5% of such salary for each year of service credit  in  excess
16    of  12 years, subject to a maximum of 80% of such salary.  To
17    the extent such commissioner  has  made  additional  optional
18    contributions  with  respect  to  only  a portion of years of
19    service  credit,  the  retirement  annuity  will   first   be
20    determined in accordance with this Section to the extent such
21    additional  optional  contributions  were  made,  and then in
22    accordance with the remaining Sections of this Article to the
23    extent of years of  service  credit  with  respect  to  which
24    additional  optional contributions were not made.  The change
25    in minimum retirement age  (from  60  to  55)  made  by  this
26    amendatory Act of 1993 applies to persons who begin receiving
27    a  retirement  annuity  under  this  Section  on or after the
28    effective date of this  amendatory  Act,  without  regard  to
29    whether they are in service on or after that date.
30        (c)  Disability  benefits.   In  lieu  of  the disability
31    benefits  otherwise   payable   under   this   Article,   any
32    commissioner  who (1) has elected to participate in the Fund,
33    and (2) has become permanently disabled and as a  consequence
34    is unable to perform the duties of office, and (3) was making
 
                            -103-    LRB093 05656 EFG 17166 a
 1    optional contributions in accordance with this Section at the
 2    time  the  disability  was  incurred,  may elect to receive a
 3    disability annuity calculated in accordance with the  formula
 4    in subsection (b).  For the purposes of this subsection, such
 5    commissioner  shall  be  considered permanently disabled only
 6    if: (i) disability occurs while in service as a  commissioner
 7    and  is  of  such  a  nature  as  to  prevent  the reasonable
 8    performance of the duties of office at the time; and (ii) the
 9    Board has received a written  certification  by  at  least  2
10    licensed   physicians  appointed  by  it  stating  that  such
11    commissioner is disabled and that the disability is likely to
12    be permanent.
13        (d)  Alternative survivor's benefits.   In  lieu  of  the
14    survivor's benefits otherwise payable under this Article, the
15    spouse or eligible child of any deceased commissioner who (1)
16    had  elected  to  participate in the Fund, and (2) was either
17    making additional  optional  contributions  on  the  date  of
18    death,  or  was  receiving  an  annuity calculated under this
19    Section at the time of death, may elect to receive an annuity
20    beginning on the date of the commissioner's  death,  provided
21    that  the  spouse  and commissioner must have been married on
22    the date of the last termination of a service as commissioner
23    and for a continuous period of at least one year  immediately
24    preceding death.
25        The annuity shall be payable beginning on the date of the
26    commissioner's death if the spouse is then age 50 or over, or
27    beginning  at age 50 if the age of the spouse is less than 50
28    years.  If  a  minor  unmarried  child  or  children  of  the
29    commissioner,  under  age  18, also survive, and the child or
30    children are under the  care  of  the  eligible  spouse,  the
31    annuity   shall  begin  as  of  the  date  of  death  of  the
32    commissioner without regard to the spouse's age.
33        The annuity to a spouse shall be 66 2/3% of the amount of
34    retirement annuity earned by the commissioner on the date  of
 
                            -104-    LRB093 05656 EFG 17166 a
 1    death,  subject  to  a  minimum  payment  of  10%  of salary,
 2    provided that if an eligible spouse, regardless of  age,  has
 3    in  his  or her care at the date of death of the commissioner
 4    any unmarried child or children of the commissioner under age
 5    18, the minimum annuity shall be 30%  of  the  commissioner's
 6    salary,  plus 10% of salary on account of each minor child of
 7    the commissioner, subject to  a  combined  total  payment  on
 8    account  of  a spouse and minor children not to exceed 50% of
 9    the deceased commissioner's salary. In the event there  shall
10    be  no  spouse  of  the  commissioner  surviving, or should a
11    spouse die while eligible minor children  still  survive  the
12    commissioner, each such child shall be entitled to an annuity
13    equal  to  20%  of  salary  of  the commissioner subject to a
14    combined total payment on account of all such children not to
15    exceed 50% of salary of the commissioner. The  salary  to  be
16    used  in  the calculation of these benefits shall be the same
17    as that prescribed for determining a  retirement  annuity  as
18    provided in subsection (b) of this Section.
19        Upon   the   death  of  a  commissioner  occurring  after
20    termination of a service or while in receipt of a  retirement
21    annuity,  the  combined  total  payment to a spouse and minor
22    children, or to minor children alone if  no  eligible  spouse
23    survives, shall be limited to 75% of the amount of retirement
24    annuity earned by the commissioner.
25        Adopted children shall have status as natural children of
26    the  commissioner  only  if the proceedings for adoption were
27    commenced at  least  one  year  prior  to  the  date  of  the
28    commissioner's death.
29        Marriage  of  a  child or attainment of age 18, whichever
30    first occurs, shall render the child ineligible  for  further
31    consideration in the payment of annuity to a spouse or in the
32    increase   in   the   amount   thereof.  Upon  attainment  of
33    ineligibility  of   the   youngest   minor   child   of   the
34    commissioner,  the  annuity  shall  immediately revert to the
 
                            -105-    LRB093 05656 EFG 17166 a
 1    amount payable upon death of a commissioner leaving no  minor
 2    children  surviving.  If  the  spouse is under age 50 at such
 3    time, the annuity as revised shall be deferred until such age
 4    is attained.
 5        (e)  Refunds.     Refunds    of    additional    optional
 6    contributions shall be made on the same basis and  under  the
 7    same  conditions  as  provided under Section 13-601. Interest
 8    shall be credited on  the  same  basis  and  under  the  same
 9    conditions as for other contributions.
10        Optional  contributions  shall  be  accounted  for  in  a
11    separate    Commission's   Optional   Contribution   Reserve.
12    Optional contributions under this Section shall  be  included
13    in  the  amount of employee contributions used to compute the
14    tax levy under Section 13-503.
15        (f)  Effective date.  The effective date of this plan  of
16    optional  alternative benefits and contributions shall be the
17    date upon which approval was received from the U.S.  Internal
18    Revenue  Service.   The plan of optional alternative benefits
19    and contributions  shall  not  be  available  to  any  former
20    employee  receiving an annuity from the Fund on the effective
21    date, unless  said  former  employee  re-enters  service  and
22    renders at least 3 years of additional service after the date
23    of re-entry as a commissioner.
24    (Source: P.A. 90-12, eff. 6-13-97; 91-887, eff. 7-6-00.)

25        (40 ILCS 5/13-402) (from Ch. 108 1/2, par. 13-402)
26        Sec.  13-402.  Length  of  service.   For  the purpose of
27    computing the length of service for the  retirement  annuity,
28    surviving  spouse's  annuity  and child's annuity, service of
29    120 days in any one calendar year shall constitute  one  year
30    of  service and service for any fractional part thereof shall
31    constitute an equal fractional part of one  year  of  service
32    unless   specifically  provided  otherwise.   For  all  other
33    purposes under this Article, including but not limited to the
 
                            -106-    LRB093 05656 EFG 17166 a
 1    optional  plans  of  additional  benefits  and  contributions
 2    provided under Sections 13-304, 13-304.1, and 13-314 of  this
 3    Article,  26 pay periods of service during any 12 consecutive
 4    months shall  constitute  a  year  of  service,  and  service
 5    rendered  for  50%  or  more  of  a  single  pay period shall
 6    constitute service for the full pay period.  Service of  less
 7    than 50% of a single pay period shall not be counted.
 8    (Source: P.A. 90-12, eff. 6-13-97.)

 9        (40 ILCS 5/13-502) (from Ch. 108 1/2, par. 13-502)
10        Sec.  13-502.  Employee  contributions;  deductions  from
11    salary.
12        (a)  Retirement annuity and child's annuity.  There shall
13    be  deducted  from  each payment of salary an amount equal to
14    7 1/2% of salary  as  the  employee's  contribution  for  the
15    retirement  annuity, including annual increases therefore and
16    child's annuity.
17        (b)  Surviving spouse's annuity.  There shall be deducted
18    from each payment of salary an  amount  equal  to  1 1/2%  of
19    salary  as  the  employee's  contribution  for  the surviving
20    spouse's annuity and annual increases therefor.
21        (c)  Pickup of employee contributions.  The Employer  may
22    pick up employee contributions required under subsections (a)
23    and (b) of this Section.  If contributions are picked up they
24    shall be treated as Employer contributions in determining tax
25    treatment  under the United States Internal Revenue Code, and
26    shall not be included as gross income of the  employee  until
27    such  time  as  they are distributed.  The Employer shall pay
28    these employee contributions from the same  source  of  funds
29    used in paying salary to the employee.  The Employer may pick
30    up  these  contributions by a reduction in the cash salary of
31    the employee or by an offset against a future salary increase
32    or by a combination of  a  reduction  in  salary  and  offset
33    against  a future salary increase.  If employee contributions
 
                            -107-    LRB093 05656 EFG 17166 a
 1    are picked up they shall be treated for all purposes of  this
 2    Article 13, including Sections 13-503 and 13-601, in the same
 3    manner  and to the same extent as employee contributions made
 4    prior to the date picked up.
 5        (d)  Subject to the  requirements  of  federal  law,  the
 6    Employer  shall  pick  up  optional  contributions  that  the
 7    employee  has  elected  to  pay  to  the  Fund  under Section
 8    13-304.1, and the contributions so picked up shall be treated
 9    as employer contributions for  the  purposes  of  determining
10    federal  tax  treatment.   The  Employer  shall  pick  up the
11    contributions by a  reduction  in  the  cash  salary  of  the
12    employee  and  shall pay the contributions from the same fund
13    that is used to pay earnings to the employee.   The  Employer
14    shall, however, continue to withhold federal and State income
15    taxes  based  upon  contributions made under Section 13-304.1
16    until the Internal Revenue Service or the federal courts rule
17    that pursuant to Section 414(h) of the U.S. Internal  Revenue
18    Code  of  1986,  as amended, these contributions shall not be
19    included as gross income of the employee until such  time  as
20    they are distributed or made available.
21        (e)  Each  employee is deemed to consent and agree to the
22    deductions from compensation provided for in this Article.
23        (f)  Subject to the  requirements  of  federal  law,  the
24    Employer  shall pick up contributions that a commissioner has
25    elected to pay to the Fund  under  Section  13-314,  and  the
26    contributions  so  picked  up  shall  be  treated as employer
27    contributions for the purposes  of  determining  federal  tax
28    treatment.  The Employer shall pick up the contributions by a
29    reduction  in  the  cash salary of the commissioner and shall
30    pay the contributions from the same fund as is  used  to  pay
31    earnings  to  the commissioner.  The Employer shall, however,
32    continue to withhold federal and  State  income  taxes  based
33    upon  contributions  made under Section 13-314 until the U.S.
34    Internal Revenue Service or  the  federal  courts  rule  that
 
                            -108-    LRB093 05656 EFG 17166 a
 1    pursuant  to  Section  414(h) of the Internal Revenue Code of
 2    1986, as amended, these contributions shall not  be  included
 3    as  gross  income of the employee until such time as they are
 4    distributed or made available.
 5    (Source: P.A. 92-599, eff. 6-28-02.)

 6        (40 ILCS 5/13-601) (from Ch. 108 1/2, par. 13-601)
 7        Sec. 13-601.  Refunds.
 8        (a)  Withdrawal  from  service.   Upon  withdrawal   from
 9    service,  an  employee  under  age 55 (age 50 if the employee
10    first entered service before June 13, 1997), or  an  employee
11    age  55  (age 50 if the employee first entered service before
12    June 13, 1997) or over but less than 60 having less  than  20
13    years  of  service, or an employee age 60 or over having less
14    than 5 years of service shall be entitled, upon  application,
15    to  a refund of total contributions from salary deductions or
16    amounts otherwise paid under this Article  by  the  employee.
17    The  refund  shall  not  include  interest  credited  to  the
18    contributions.   The  Board  may, in its discretion, withhold
19    payment of a refund for a period not to exceed one year  from
20    the date of filing an application for refund.
21        (b)  Surviving  spouse's annuity contributions.  A refund
22    of all amounts deducted from salary or otherwise  contributed
23    by  an  employee  for the surviving spouse's annuity shall be
24    paid upon retirement to any  employee  who  on  the  date  of
25    retirement  is  either  not  married  or is married but whose
26    spouse is not eligible for a surviving spouse's annuity  paid
27    wholly  or  in  part  under  this  Article.  The refund shall
28    include interest on each contribution at the rate of  3%  per
29    annum  compounded  annually from the date of the contribution
30    to the date of the refund.
31        (c)  When  paid  to  children,  estate  or   beneficiary.
32    Whenever  the  total  accumulations,  to  the  account  of an
33    employee from  employee  contributions,  including  interest,
 
                            -109-    LRB093 05656 EFG 17166 a
 1    have  not been paid to the employee and surviving spouse as a
 2    retirement or  spouse's  annuity  before  the  death  of  the
 3    survivor  of  the employee and spouse, a refund shall be paid
 4    as follows:  an amount equal to the excess  of  such  amounts
 5    over  the  amounts paid on such annuities without interest on
 6    either such amount, shall be paid  to  the  children  of  the
 7    employee,  in  equal  parts  to each, unless the employee has
 8    directed  in  writing,  signed  by  him  before  an   officer
 9    authorized  to  administer  oaths,  and  filed with the Board
10    before the employee's death, that any such  amount  shall  be
11    refunded and paid to any one or more of such children; and if
12    there   are   not   children,   such   other  beneficiary  or
13    beneficiaries as might be designated  by  the  employee.   If
14    there are no such children or designation of beneficiary, the
15    refund  shall  be  paid to the personal representative of the
16    employee's estate.
17        If a personal representative of the estate has  not  been
18    appointed  within  90  days  from  the date on which a refund
19    became payable, the refund may be applied, in the  discretion
20    of  the  Board,  toward  the payment of the employee's or the
21    surviving spouse's burial expenses.   Any  remaining  balance
22    shall  be  paid to the heirs of the employee according to the
23    law of descent and distribution of the State of Illinois.
24        If a reversionary annuity becomes payable  under  Section
25    13-303, the refund provided in this section shall not be paid
26    until  the death of the reversionary annuitant and the refund
27    otherwise payable under this section shall  be  then  further
28    reduced by the amount of the reversionary annuity paid.
29        (d)  In  lieu of annuity.  Notwithstanding the provisions
30    set forth in subsection (a)  of  this  section,  whenever  an
31    employee's  or  surviving  spouse's annuity will be less than
32    $200 per month, the employee or surviving spouse, as the case
33    may be, may elect to receive a refund of accumulated employee
34    contributions; provided, however, that  if  the  election  is
 
                            -110-    LRB093 05656 EFG 17166 a
 1    made by a surviving spouse the refund shall be reduced by any
 2    amounts  theretofore  paid  to the employee in the form of an
 3    annuity.
 4        (e)  Forfeiture of  rights.   An  employee  or  surviving
 5    spouse who receives a refund forfeits the right to receive an
 6    annuity  or  any  other  benefit  payable  under this Article
 7    except that if the refund is to a surviving spouse, any child
 8    or children of the employee shall  not  be  deprived  of  the
 9    right  to  receive  a  child's annuity as provided in Section
10    13-308 of this Article, and the payment of a child's  annuity
11    shall  not  reduce  the  amount  refundable  to the surviving
12    spouse.
13    (Source: P.A. 87-794; 87-1265.)

14        (40 ILCS 5/13-603) (from Ch. 108 1/2, par. 13-603)
15        Sec. 13-603.  Restoration of rights.  If an employee  who
16    has  received a refund subsequently re-enters the service and
17    renders one year of contributing service  from  the  date  of
18    such  re-entry,  the  employee  shall  be  entitled  to  have
19    restored  all  accumulation  and  service  credits previously
20    forfeited by making a  repayment  of  the  refund,  including
21    interest from the date of the refund to the date of repayment
22    at  a  rate  equal  to  the  higher  of  8%  per annum or the
23    actuarial investment return assumption  used  in  the  Fund's
24    most  recent  Annual  Actuarial  Statement.  Repayment may be
25    made either directly to the Fund or in a  manner  similar  to
26    that  provided  for  the contributions required under Section
27    13-502.   The service credits  represented  thereby,  or  any
28    part  thereof,  shall  not  become  effective unless the full
29    amount due has been paid by the employee, including interest.
30    The repayment must be made in full  no  later  than  90  days
31    following  the  date  of the employee's final withdrawal from
32    service.  If the employee fails to make a full repayment, any
33    partial amounts  paid  by  the  employee  shall  be  refunded
 
                            -111-    LRB093 05656 EFG 17166 a
 1    without   interest   if  the  employee  dies  in  service  or
 2    withdraws.
 3    (Source: P.A. 91-887, eff. 7-6-00.)

 4        (40 ILCS 5/14-104) (from Ch. 108 1/2, par. 14-104)
 5        Sec. 14-104. Service for which  contributions  permitted.
 6    Contributions  provided  for  in this Section shall cover the
 7    period of service granted.  Except as otherwise  provided  in
 8    this  Section,  the  contributions  shall  be  based upon the
 9    employee's compensation and contribution rate  in  effect  on
10    the date he last became a member of the System; provided that
11    for  all employment prior to January 1, 1969 the contribution
12    rate shall be that in effect for a noncovered employee on the
13    date he last became  a  member  of  the  System.   Except  as
14    otherwise  provided  in this Section, contributions permitted
15    under this Section shall include regular  interest  from  the
16    date  an  employee  last became a member of the System to the
17    date of payment.
18        These  contributions  must  be  paid   in   full   before
19    retirement either in a lump sum or in installment payments in
20    accordance with such rules as may be adopted by the board.
21        (a)  Any  member  may  make  contributions as required in
22    this Section for any period of  service,  subsequent  to  the
23    date of establishment, but prior to the date of membership.
24        (b)  Any  employee  who had been previously excluded from
25    membership because of age at entry  and  subsequently  became
26    eligible  may elect to make contributions as required in this
27    Section for  the  period  of  service  during  which  he  was
28    ineligible.
29        (c)  An  employee  of  the  Department  of Insurance who,
30    after January 1, 1944 but  prior  to  becoming  eligible  for
31    membership, received salary from funds of insurance companies
32    in  the  process of rehabilitation, liquidation, conservation
33    or dissolution, may elect to make contributions  as  required
 
                            -112-    LRB093 05656 EFG 17166 a
 1    in this Section for such service.
 2        (d)  Any  employee who rendered service in a State office
 3    to which he was elected, or rendered service in the  elective
 4    office  of  Clerk of the Appellate Court prior to the date he
 5    became a member, may make contributions for such  service  as
 6    required   in   this  Section.   Any  member  who  served  by
 7    appointment of the Governor under  the  Civil  Administrative
 8    Code  of  Illinois and did not participate in this System may
 9    make contributions as  required  in  this  Section  for  such
10    service.
11        (e)  Any  person employed by the United States government
12    or any instrumentality or agency thereof from January 1, 1942
13    through November 15, 1946 as the result of  a  transfer  from
14    State  service  by  executive  order  of the President of the
15    United States shall  be  entitled  to  prior  service  credit
16    covering the period from January 1, 1942 through December 31,
17    1943  as  provided  for  in  this  Article  and to membership
18    service credit  for the period from January 1,  1944  through
19    November  15,  1946  by  making the contributions required in
20    this Section.  A person so employed on January  1,  1944  but
21    whose  employment began after January 1, 1942 may qualify for
22    prior service and membership service credit  under  the  same
23    conditions.
24        (f)  An  employee of the Department of Labor of the State
25    of  Illinois  who  performed  services  for  and  under   the
26    supervision  of  that Department prior to January 1, 1944 but
27    who was compensated for those services  directly  by  federal
28    funds  and not by a warrant of the Auditor of Public Accounts
29    paid by the State Treasurer may  establish  credit  for  such
30    employment  by  making  the  contributions  required  in this
31    Section. An employee of the Department of Agriculture of  the
32    State  of  Illinois, who performed services for and under the
33    supervision of that Department prior to June 1, 1963, but was
34    compensated for those services directly by federal funds  and
 
                            -113-    LRB093 05656 EFG 17166 a
 1    not  paid by a warrant of the Auditor of Public Accounts paid
 2    by the State Treasurer, and who did  not  contribute  to  any
 3    other public employee retirement system for such service, may
 4    establish   credit   for   such   employment  by  making  the
 5    contributions required in this Section.
 6        (g)  Any employee who executed  a  waiver  of  membership
 7    within  60  days  prior  to  January 1, 1944 may, at any time
 8    while in the service of a department, file with the  board  a
 9    rescission  of  such  waiver.   Upon making the contributions
10    required by this Section,  the member shall  be  granted  the
11    creditable  service  that  would  have  been  received if the
12    waiver had not been executed.
13        (h)  Until May 1, 1990, an employee who was employed on a
14    full-time basis by a  regional  planning  commission  for  at
15    least 5 continuous years may establish creditable service for
16    such  employment  by  making the contributions required under
17    this  Section,  provided  that  any  credits  earned  by  the
18    employee  in  the  commission's  retirement  plan  have  been
19    terminated.
20        (i)  Any  person  who  rendered  full  time   contractual
21    services to the General Assembly as a member of a legislative
22    staff  may establish service credit for up to 8 years of such
23    services by making  the  contributions  required  under  this
24    Section, provided that application therefor is made not later
25    than July 1, 1991.
26        (j)  By paying the contributions otherwise required under
27    this  Section,  plus  an amount determined by the Board to be
28    equal to the employer's  normal  cost  of  the  benefit  plus
29    interest,  but  with  all of the interest calculated from the
30    date the employee last became  a  member  of  the  System  or
31    November  19,  1991,  whichever  is  later,  to  the  date of
32    payment, an employee  may  establish  service  credit  for  a
33    period  of up to 2 years spent in active military service for
34    which he does not qualify for credit  under  Section  14-105,
 
                            -114-    LRB093 05656 EFG 17166 a
 1    provided  that  (1)  he  was not dishonorably discharged from
 2    such military service, and (2) the amount of  service  credit
 3    established by a member under this subsection (j), when added
 4    to  the  amount  of  military  service  credit granted to the
 5    member under subsection (b)  of  Section  14-105,  shall  not
 6    exceed  5  years.   The  change  in the manner of calculating
 7    interest under this subsection (j) made  by  this  amendatory
 8    Act  of the 92nd General Assembly applies to credit purchased
 9    by an employee on or after its effective date  and  does  not
10    entitle  any  person to a refund of contributions or interest
11    already paid.
12        (k)  An employee who was employed on a full-time basis by
13    the  Illinois   State's   Attorneys   Association   Statewide
14    Appellate Assistance Service LEAA-ILEC grant project prior to
15    the  time that project became the State's Attorneys Appellate
16    Service Commission, now the Office of the  State's  Attorneys
17    Appellate  Prosecutor,  an  agency  of  State government, may
18    establish creditable service for  not  more  than  60  months
19    service  for such employment by making contributions required
20    under this Section.
21        (l)  By paying the contributions otherwise required under
22    this Section, plus an amount determined by the  Board  to  be
23    equal  to  the  employer's  normal  cost  of the benefit plus
24    interest, a member may establish service credit  for  periods
25    of up to 2 years less than one year spent on authorized leave
26    of  absence  from  service,  provided  that (1) the period of
27    leave began on or after January 1, 1982 and  (2)  any  credit
28    established  by  the  member  for  the period of leave in any
29    other public employee retirement system has been  terminated.
30    A  member  may establish service credit under this subsection
31    for more than one period of authorized  leave,  and  in  that
32    case  the  total  period of service credit established by the
33    member under this subsection may exceed 2 years one year.  In
34    determining  the  contributions  required  for   establishing
 
                            -115-    LRB093 05656 EFG 17166 a
 1    service  credit  under this subsection, the interest shall be
 2    calculated from the beginning of the leave of absence to  the
 3    date of payment.
 4        (m)  Any  person  who  rendered contractual services to a
 5    member of the General Assembly as a worker  in  the  member's
 6    district  office may establish creditable service for up to 3
 7    years  of  those   contractual   services   by   making   the
 8    contributions  required under this Section.  The System shall
 9    determine a full-time salary equivalent for  the  purpose  of
10    calculating  the  required contribution.  To establish credit
11    under this subsection, the applicant must apply to the System
12    by March 1, 1998.
13        (n)  Any person who rendered contractual  services  to  a
14    member   of  the  General  Assembly  as  a  worker  providing
15    constituent services to persons in the member's district  may
16    establish  creditable  service  for  up  to  8 years of those
17    contractual services by  making  the  contributions  required
18    under  this  Section.  The System shall determine a full-time
19    salary equivalent for the purpose of calculating the required
20    contribution.  To establish credit under this subsection, the
21    applicant must apply to the System by March 1, 1998.
22        (o)  A  member   who   participated   in   the   Illinois
23    Legislative Staff Internship Program may establish creditable
24    service  for  up  to one year of that participation by making
25    the contribution required  under  this  Section.  The  System
26    shall determine a full-time salary equivalent for the purpose
27    of  calculating the required contribution.  Credit may not be
28    established under this subsection for any  period  for  which
29    service  credit  is  established under any other provision of
30    this Code.
31        (p)  By paying  the  contributions  required  under  this
32    Section,  plus  an amount determined by the Board to be equal
33    to the employer's normal cost of the benefit  plus  interest,
34    an employee who was laid off but returned to State employment
 
                            -116-    LRB093 05656 EFG 17166 a
 1    under  circumstances  in  which the employee is considered to
 2    have been in continuous service for purposes  of  determining
 3    seniority  may establish creditable service for the period of
 4    the layoff, provided that (1) the applicant does not  receive
 5    credit  for  that  period  under  any other provision of this
 6    Code, (2) at the  time  of  the  layoff,  the  applicant  had
 7    attained  certified  status under the rules of the Department
 8    of Central Management Services, and (3) the total  amount  of
 9    creditable  service  established  by the applicant under this
10    subsection does not exceed 2 years.  For service  established
11    under  this  subsection,  the  required employee contribution
12    shall be based on the rate  of  compensation  earned  by  the
13    employee  on  the  date  of returning to employment after the
14    layoff and the contribution rate  then  in  effect,  and  the
15    required  interest  shall  be  calculated  from  the  date of
16    returning to employment after  the  layoff  to  the  date  of
17    payment.
18    (Source: P.A. 92-54, eff. 7-12-01.)

19        (40 ILCS 5/15-159) (from Ch. 108 1/2, par. 15-159)
20        Sec. 15-159.  Board created.
21        (a)  A  board of trustees constituted as provided in this
22    Section shall administer this System.   The  board  shall  be
23    known  as  the  Board  of  Trustees of the State Universities
24    Retirement System.
25        (b)  Until July 1, 1995, the Board of Trustees  shall  be
26    constituted as follows:
27        Two trustees shall be members of the Board of Trustees of
28    the  University  of  Illinois,  one  shall be a member of the
29    Board of Trustees of Southern Illinois University, one  shall
30    be  a  member  of  the  Board  of  Trustees  of Chicago State
31    University, one shall be a member of the Board of Trustees of
32    Eastern Illinois University, one shall be  a  member  of  the
33    Board of Trustees of Governors State University, one shall be
 
                            -117-    LRB093 05656 EFG 17166 a
 1    a   member  of  the  Board  of  Trustees  of  Illinois  State
 2    University, one shall be a member of the Board of Trustees of
 3    Northeastern Illinois University, one shall be  a  member  of
 4    the  Board  of  Trustees of Northern Illinois University, one
 5    shall be a  member  of  the  Board  of  Trustees  of  Western
 6    Illinois  University,  and  one  shall  be  a  member  of the
 7    Illinois Community College Board, selected in  each  case  by
 8    their  respective  boards, and 2 shall be participants of the
 9    system appointed by the Governor for a 6 year term  with  the
10    first  appointment  made  pursuant  to this amendatory Act of
11    1984 to be effective September 1, 1985, and one  shall  be  a
12    participant appointed by the Illinois Community College Board
13    for  a  6 year term, and one shall be a participant appointed
14    by the Board of Trustees of the University of Illinois for  a
15    6  year  term, and one shall be a participant or annuitant of
16    the system who is a senior citizen age 60 or older  appointed
17    by  the Governor for a 6 year term with the first appointment
18    to be effective September 1, 1985.
19        The terms of  all  trustees  holding  office  under  this
20    subsection (b) on June 30, 1995 shall terminate at the end of
21    that  day or as otherwise required by law and the Board shall
22    thereafter be  constituted  as  otherwise  provided  in  this
23    Section subsection (c).
24        (c)  Beginning  July 1, 1995, the Board of Trustees shall
25    be constituted as follows:
26        The Board shall consist of 9 trustees  appointed  by  the
27    Governor.   Two  of  the  trustees, designated at the time of
28    appointment, shall be participants of the System.  Two of the
29    trustees, designated at the time  of  appointment,  shall  be
30    annuitants   of  the  System  who  are  receiving  retirement
31    annuities under this Article.  The 5 remaining trustees  may,
32    but need not, be participants or annuitants of the System.
33        The  term  of  office  of  trustees  appointed under this
34    subsection (c)  shall  be  6  years,  beginning  on  July  1.
 
                            -118-    LRB093 05656 EFG 17166 a
 1    However,   of  the  initial  trustees  appointed  under  this
 2    subsection (c), 3 shall be appointed for terms of 2 years,  3
 3    shall  be  appointed  for  terms  of  4 years, and 3 shall be
 4    appointed for terms of 6  years,  to  be  designated  by  the
 5    Governor at the time of appointment.
 6        A  vacancy  in  a  trustee  position  created  under this
 7    subsection  (c)  on  the  board   of   trustees   caused   by
 8    resignation,  death,  expiration  of term of office, or other
 9    reason shall be filled by a qualified person appointed by the
10    Governor for the remainder of the unexpired term.
11        Trustees  in  a  trustee  position  created  under   this
12    subsection (c) (other than the trustees incumbent on June 30,
13    1995)   shall  continue  in  office  until  their  respective
14    successors are appointed and have qualified,  except  that  a
15    trustee  appointed  to one of the participant positions shall
16    be disqualified immediately upon the termination  of  his  or
17    her status as a participant and a trustee appointed to one of
18    the  annuitant  positions   shall be disqualified immediately
19    upon the termination of his or her  status  as  an  annuitant
20    receiving a retirement annuity.
21        (c-1)  Beginning  July  1,  2004,  the  Board of Trustees
22    shall consist of the 9 trustees  appointed  under  subsection
23    (c)  plus 4 elected trustees who shall be elected as provided
24    in this subsection (c-1) and Section 15-159.1.
25        One of the elected trustees shall be a participant of the
26    System nominated and  elected  by  the  participants  of  the
27    System who are employees of the University of Illinois.
28        One of the elected trustees shall be a participant of the
29    System  nominated  and  elected  by  the  participants of the
30    System who are employees  of  Northern  Illinois  University,
31    Illinois State University, or Southern Illinois University.
32        One of the elected trustees shall be a participant of the
33    System  nominated  and  elected  by  the  participants of the
34    System who are employees of Chicago State University, Eastern
 
                            -119-    LRB093 05656 EFG 17166 a
 1    Illinois University, Governors State University, Northeastern
 2    Illinois University, or Western Illinois University.
 3        One of the elected trustees shall be a participant of the
 4    System nominated and  elected  by  the  participants  of  the
 5    System who are employees of Illinois community colleges.
 6        The  term  of  office  of  trustees  elected  under  this
 7    subsection  (c-1)  shall  be  6  years,  beginning on July 1,
 8    except  that  the  initial  trustees   elected   under   this
 9    subsection  (c-1)  shall  serve  for  terms of 3, 4, 5, and 6
10    years, to be determined by lot at the first  meeting  of  the
11    Board following their election.
12        Candidates  for  election  shall be nominated by petition
13    containing the signatures  and  addresses  of  at  least  100
14    participants  from  the  applicable  constituency.  Petitions
15    shall be filed with the Secretary of  the  Board  during  the
16    month  of  January  before the election.  The Secretary shall
17    determine the validity of petitions of candidates by February
18    15 before the election and shall notify the candidates as  to
19    whether or not their petitions have met the requirements.
20        If  no more than one candidate files a valid petition for
21    election to a position,  that  candidate  shall  be  declared
22    elected.   If  there is more than one nominee for a position,
23    then the Board shall conduct by mail a secret ballot election
24    among those persons eligible to vote for  that  position,  in
25    accordance   with   Section   15-159.1  and  such  rules  and
26    procedures as it may adopt.
27        If a vacancy occurs among  the  elected  members  of  the
28    Board,  the remaining elected members of the Board shall meet
29    for the purpose of filling the vacant position by  appointing
30    a  person  who is eligible for nomination and election to the
31    position to serve for the remainder of the term.  The meeting
32    shall be held as  soon  as  practicable  after  the  position
33    becomes vacant.  Appointment of a person to fill a vacancy in
34    an  elected  trustee position requires a majority vote of the
 
                            -120-    LRB093 05656 EFG 17166 a
 1    elected members present at the meeting.
 2        An elected trustee shall continue in office until his  or
 3    her  successor  is  elected  (or,  in  the  case of a vacancy
 4    occurring during a term, appointed) and has qualified, except
 5    that an  elected  trustee  shall  be  disqualified  upon  the
 6    termination of his or her status as a participant.
 7        (d)  Each  trustee  must  take an oath of office before a
 8    notary public of this State and shall qualify  as  a  trustee
 9    upon the presentation to the the Board of a certified copy of
10    the   oath.   The  oath  must  state  that  the  person  will
11    diligently  and  honestly  administer  the  affairs  of   the
12    retirement system, and will not knowingly violate or wilfully
13    permit to be violated any provisions of this Article.
14        Each  trustee  shall serve without compensation but shall
15    be reimbursed for expenses necessarily incurred in  attending
16    board  meetings  and  carrying  out  his  or  her duties as a
17    trustee or officer of the System.
18        (e)  This amendatory Act of 1995 (Public Act  89-196)  is
19    intended  to  supersede  the  changes made to this Section by
20    Public Act 89-4.
21    (Source: P.A. 89-4, eff. 1-1-96; 89-196, eff. 7-21-95.)

22        (40 ILCS 5/15-159.1 new)
23        Sec. 15-159.1. Election of trustees.
24        (a)  Election of trustees shall be by mail ballot.  By no
25    later than April 1 of the year of  the  election,  the  board
26    shall  prepare  and  send ballots and ballot envelopes to the
27    persons eligible to vote as of February 1 of the year of  the
28    election.   The  ballots  shall  contain  the  names  of  all
29    candidates  of  the  constituency  for  which  the  person is
30    eligible to vote, in alphabetical order.  The ballot envelope
31    shall have on the outside a form of certificate stating  that
32    the  person  voting  the  ballot is a member of the specified
33    constituency and is entitled to vote.
 
                            -121-    LRB093 05656 EFG 17166 a
 1        (b)  Persons wishing to vote shall vote  the  ballot  and
 2    place  it  in the ballot envelope, seal the envelope, execute
 3    the certificate on the envelope, and return the ballot to the
 4    System.
 5        (c)  The final date for ballot return shall be May 1,  or
 6    if  that  date falls on a Saturday, Sunday, or State holiday,
 7    then the next business day.  Ballots received  on  or  before
 8    that  date,  in  a  ballot  envelope with a properly executed
 9    certificate and properly voted, shall be valid ballots.
10        (d)  The board shall set  a  day  for  counting  ballots,
11    shall name judges and clerks of election to conduct the count
12    of  ballots,  and  shall make any rules that may be necessary
13    for the conduct of the count.
14        (e)  Candidates for the office of trustee,  and  employee
15    and  labor  organizations,  shall  have  access, at their own
16    expense,  to  the  System's  participant  mailing  lists  for
17    election purposes.

18        (40 ILCS 5/16-128) (from Ch. 108 1/2, par. 16-128)
19        Sec.    16-128.  Creditable    service     -     required
20    contributions.
21        (a)  In order to receive the creditable service specified
22    under  subsection (b) of Section 16-127, a member is required
23    to make the following contributions: (i) an amount  equal  to
24    the  contributions  which  would  have been required had such
25    service been rendered as a member under this System; (ii) for
26    military service not immediately following employment and for
27    service established  under  subdivision  (b)(10)  of  Section
28    16-127,  an amount determined by the Board to be equal to the
29    employer's normal cost  of  the  benefits  accrued  for  such
30    service;  and  (iii) interest from the date the contributions
31    would have been due (or, in the case of a person establishing
32    credit for  military  service  under  subdivision  (b)(3)  of
33    Section  16-127,  from  the  date  the employee last became a
 
                            -122-    LRB093 05656 EFG 17166 a
 1    member of the System or November 19, 1991, whichever the date
 2    of first membership in the System, if that date is later)  to
 3    the  date  of  payment,  at  the  following rate of interest,
 4    compounded annually:  for periods  prior  to  July  1,  1965,
 5    regular  interest; from July 1, 1965 to June 30, 1977, 4% per
 6    year; on and after July 1, 1977, regular interest.
 7        The change in the  manner  of  calculating  interest  for
 8    certain  military  service credit made by this amendatory Act
 9    of the 93rd General Assembly applies to credit purchased by a
10    teacher on or after its effective date and does  not  entitle
11    any  person  to a refund of contributions or interest already
12    paid.
13        (b)  In  order  to  receive  creditable   service   under
14    paragraph  (2)  of subsection (b) of Section 16-127 for those
15    who were not members on June 30, 1963, the  minimum  required
16    contribution  shall be $420 per year of service together with
17    interest at 4% per year  compounded  annually  from  July  1,
18    preceding  the  date of membership until June 30, 1977 and at
19    regular interest compounded annually thereafter to  the  date
20    of payment.
21        (c)  In determining the contribution required in order to
22    receive  creditable service under paragraph (3) of subsection
23    (b) of Section 16-127, the salary rate for the  remainder  of
24    the  school  term  in  which a member enters military service
25    shall be assumed to be equal to the member's salary  rate  at
26    the time of entering military service.  However, for military
27    service not immediately following employment, the salary rate
28    on  the  last  date  as a participating teacher prior to such
29    military service, or on the first  date  as  a  participating
30    teacher  after  such  military service, whichever is greater,
31    shall be assumed to be equal to the member's salary  rate  at
32    the  time of entering military service.  For each school term
33    thereafter, the member's salary rate shall be assumed  to  be
34    5% higher than the salary rate in the previous school term.
 
                            -123-    LRB093 05656 EFG 17166 a
 1        (d)  In determining the contribution required in order to
 2    receive  creditable service under paragraph (5) of subsection
 3    (b) of Section 16-127, a  member's  salary  rate  during  the
 4    period for which credit is being established shall be assumed
 5    to  be  equal  to  the  member's last salary rate immediately
 6    preceding that period.
 7        (d-5)  For each year of service credit to be  established
 8    under  subsection  (b-1)  of  Section  16-127,  a  member  is
 9    required  to contribute to the System (i) 16.5% of the annual
10    salary rate during the first year of full-time employment  as
11    a  teacher  under  this  Article following the private school
12    service, plus (ii) interest thereon from the  date  of  first
13    full-time   employment   as  a  teacher  under  this  Article
14    following the private school service to the date of  payment,
15    compounded annually, at the rate of 8.5% per year for periods
16    before  the effective date of this amendatory Act of the 92nd
17    General Assembly, and for subsequent periods at a rate  equal
18    to  the  System's  actuarially  assumed  rate  of  return  on
19    investments.
20        (e)  The contributions required under this Section may be
21    made  from the date the statement for such creditable service
22    is  issued  until  retirement  date.    All   such   required
23    contributions  must  be made before any retirement annuity is
24    granted.
25    (Source: P.A. 92-867, eff. 1-3-03.)

26        Section 90.  The State Mandates Act is amended by  adding
27    Section 8.27 as follows:

28        (30 ILCS 805/8.27 new)
29        Sec.  8.27.  Exempt  mandate.  Notwithstanding Sections 6
30    and 8 of this Act, no reimbursement by the State is  required
31    for  the  implementation  of  any  mandate  created  by  this
32    amendatory Act of the 93rd General Assembly.
 
                            -124-    LRB093 05656 EFG 17166 a
 1        Section  99.  Effective date.  This Act takes effect upon
 2    becoming law.".