093_SB1704ham001











                                     LRB093 02820 LRD 20148 a

 1                    AMENDMENT TO SENATE BILL 1704

 2        AMENDMENT NO.     .  Amend Senate Bill 1704 by  replacing
 3    everything after the enacting clause with the following:

 4        "Section  5.   The  Illinois  Pension  Code is amended by
 5    changing Sections 5-129.1, 5-132,  5-167.2,  5-167.4,  5-168,
 6    6-111, 6-128, 6-128.2, 6-128.4, 6-142, 6-143, 6-151.1, 6-160,
 7    6-164,  6-165,  6-210.1, 6-211, 6-222, 8-137, 8-150.1, 8-167,
 8    8-172, 8-174, 8-174.1,  8-192,  11-134.1,  11-145.1,  11-163,
 9    11-167,  11-170.1,  11-178,  11-181,  12-133,  and 12-149 and
10    adding Sections 6-124.1, 6-141.2, 6-210.2, 6-210.3,  8-138.4,
11    8-138.5,  8-172.1, 11-133.3, 11-133.4, 12-133.6, and 12-133.7
12    as follows:

13        (40 ILCS 5/5-129.1)
14        Sec. 5-129.1. Withdrawal at mandatory  retirement  age  -
15    amount of annuity.
16        (a)  In  lieu  of  any  annuity  provided  in  the  other
17    provisions  of  this  Article, a policeman who is required to
18    withdraw from service on or after  January  1,  2000  due  to
19    attainment  of  mandatory  retirement age and has at least 10
20    but less than 20 years of service credit may elect to receive
21    an annuity equal to 30% of average salary for  the  first  10
22    years of service plus 2% of average salary for each completed
 
                            -2-      LRB093 02820 LRD 20148 a
 1    year  of service or fraction thereof in excess of 10, but not
 2    to exceed a maximum of 48% of average salary.
 3        (b)  For the purpose of this  Section,  "average  salary"
 4    means  the  average  of  the  highest  4 consecutive years of
 5    salary within the last 10 years of service, or  such  shorter
 6    period  as  may  be  used  to  calculate a minimum retirement
 7    annuity under Section 5-132.
 8        (c)  For  the  purpose  of  qualifying  for  the   annual
 9    increases  provided  in  Section  5-167.1,  a policeman whose
10    retirement annuity is calculated under this Section shall  be
11    deemed to qualify for a minimum annuity.
12        (d)  A  policeman  with  less  than  20  years of service
13    credit who was required to withdraw from service on or  after
14    January 1, 2000 but before June 28, 2002 due to attainment of
15    mandatory  retirement age is also entitled to have his or her
16    retirement  annuity  calculated  in  accordance   with   this
17    Section.   If  payment  of the annuity has already begun, the
18    annuity shall be recalculated.  The  resulting  increase,  if
19    any,  shall accrue from the starting date of the annuity; the
20    amount of the increase relating  to  the  period  before  the
21    annuity  is  recalculated shall be paid to the annuitant in a
22    lump sum, without interest.
23    (Source: P.A. 92-599, eff. 6-28-02.)

24        (40 ILCS 5/5-132) (from Ch. 108 1/2, par. 5-132)
25        Sec. 5-132. Minimum annuity.  Any policeman who withdraws
26    on or after July 8, 1957, or any policeman transferred to the
27    police service of the city under the  Exchange  of  Functions
28    Act  of  1957  who withdraws on or after July 17, 1959, after
29    completing at least 20 years of service, for whom the annuity
30    otherwise provided in this Article is less than  that  stated
31    in this Section has a right to receive annuity as follows:
32        (a)  If  he  is age 55 or more on withdrawal, his annuity
33    after such withdrawal, shall be equal to 2%  of  the  average
 
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 1    salary for 4 consecutive years of highest salaries within the
 2    last  10 years of service before withdrawal, for each year of
 3    service, together with 1/6 of 1% of such average  salary  for
 4    each  complete  month of service of each fractional year, but
 5    not in excess of 75% of the average annual salary.
 6        (b)  If he is age 50 or more but  less  than  age  55  on
 7    withdrawal,  his  annuity shall be equal to 2% of the average
 8    salary for the 4 highest consecutive years  of  the  last  10
 9    years of service for each year of service, together with 1/16
10    of  1%  of  such  average  salary  for  each  month  of  each
11    fractional  year  of  service,  reduced by 1/2 of 1% for each
12    month that he is less than age 55.
13        (c)  If he is less than age 50  on  withdrawal,  he  may,
14    upon  attainment  of  age  50 or over, become entitled to the
15    annuity provided in this Section or, he may, upon application
16    before age 50,  receive  a  refund  of  the  deductions  from
17    salary,  plus  interest at 1 1/2% per annum if he is entitled
18    to refund under Section 5-163.
19        (d)  In lieu of the annuity  provided  in  the  foregoing
20    provisions  of this Section 5-132 any policeman who withdraws
21    from the  service  after  December  31,  1973,  after  having
22    attained  age  53  in  the  service  with 23 or more years of
23    service credit shall be entitled to an  annuity  computed  as
24    follows  if such annuity is greater than that provided in the
25    foregoing paragraphs of this Section 5-132: An annuity  equal
26    to  50%  of  the average salary for the 4 highest consecutive
27    years of the last 10 years of service plus additional annuity
28    equal to 2% of such average salary for each completed year of
29    service or fraction thereof rendered after his attainment  of
30    age 53 and the completion of 23 years of service.
31        Any policeman who has completed 23 years of service prior
32    to  his  attainment of age 53 in the service and continues in
33    the service until his attainment of age 53 shall  have  added
34    to  his  annuity,  computed  as  provided  in the immediately
 
                            -4-      LRB093 02820 LRD 20148 a
 1    preceding paragraph, an additional annuity  equal  to  1%  of
 2    such  average  salary  for  each completed year of service or
 3    fraction thereof in excess of 23 years up to age 53.
 4        (e)  In lieu of the annuity  provided  in  the  foregoing
 5    provisions  of  this Section any policeman who withdraws from
 6    the service either (i) after December 31, 1983 with at  least
 7    22  years of service credit and having attained age 52 in the
 8    service, or (ii) after December 31, 1984  with  at  least  21
 9    years  of  service  credit  and having attained age 51 in the
10    service, or (iii) after December 31, 1985 with  at  least  20
11    years  of  service  credit  and having attained age 50 in the
12    service, or (iv) after December 31, 1990, with  at  least  20
13    years  of service credit regardless of age, shall be entitled
14    to an annuity to begin not earlier than  upon  attainment  of
15    age  50 if under such age at withdrawal, computed as follows:
16    an annuity equal to 50% of  the  average  salary  for  the  4
17    highest  consecutive  years  of the last 10 years of service,
18    plus additional annuity equal to 2% of  such  average  salary
19    for  each  completed  year  of  service  or  fraction thereof
20    rendered after his completion of the minimum number of  years
21    of  service  required  for  him  to  be  eligible  under this
22    subsection (e).  In lieu  of  any  annuity  provided  in  the
23    foregoing  provisions  of  this  Section,  any  policeman who
24    withdraws from the service after December 31, 2003,  with  at
25    least  20 years of service credit regardless of age, shall be
26    entitled to  an  annuity  to  begin  not  earlier  than  upon
27    attainment  of age 50, if under that age at withdrawal, equal
28    to 2.5% of the average salary for the 4  highest  consecutive
29    years of the last 10 years of service for each completed year
30    of service or fraction thereof. However, the annuity provided
31    under  this subsection (e) may not exceed 75% of such average
32    salary.
33        (f)  A policeman withdrawing  after  September  1,  1969,
34    may,  in  addition,  be  entitled to the benefits provided by
 
                            -5-      LRB093 02820 LRD 20148 a
 1    Section 5-167.1 of this Article if he so qualifies under that
 2    Section.
 3        If, on withdrawal, total service is less than  20  years,
 4    the  policeman shall not be entitled to an annuity under this
 5    Section but may receive an annuity under the other provisions
 6    of this Article or, if entitled thereto under Section 5--163,
 7    a refund of the deductions from  salary,  including,  in  the
 8    case  of  policemen  transferred to the police service of the
 9    city under  the  Exchange  of  Functions  Act  of  1957,  the
10    additional  contribution  paid on salary received from August
11    1,  1957,  to  July  17,  1959,  as  provided  in  the   Park
12    Policemen's Annuity Act, together with interest at 1 1/2% per
13    annum.
14        Moneys  voluntarily  contributed  under  the  Policemen's
15    Annuity  and Benefit Fund Act of the Illinois Municipal Code,
16    or the Park Policemen's Annuity Act, shall be refunded to the
17    contributing policemen who were  in  service  on  January  1,
18    1954,  or  in the case of policemen transferred to the police
19    service of the city under the Exchange of  Functions  Act  of
20    1957, who were in service on July 17, 1959.
21        The age and service annuity formula in this Section shall
22    not apply to any policeman who, having retired before July 8,
23    1957,  or  before  July  17, 1959, in the case of a policeman
24    transferred under the provisions of the Exchange of Functions
25    Act of 1957, re-enters the police service after  such  dates,
26    whichever are applicable.
27    (Source: P.A. 86-1488.)

28        (40 ILCS 5/5-167.2) (from Ch. 108 1/2, par. 5-167.2)
29        Sec.  5-167.2.  Retirement  before  September 1, 1967.  A
30    retired policeman, qualifying  for  minimum  annuity  or  who
31    retired from service with 20 or more years of service, before
32    September  1,  1967,  shall, in January of the year following
33    the year he attains the age of 65, or in January of the  year
 
                            -6-      LRB093 02820 LRD 20148 a
 1    1970,  if then more than 65 years of age, have his then fixed
 2    and payable monthly annuity increased by an amount  equal  to
 3    2%  of  the  original  grant  of  annuity,  for each year the
 4    policeman was in receipt of annuity payments after  the  year
 5    in  which  he  attains,  or  did  attain  the  age of 63.  An
 6    additional  2%  increase  in  such  then  fixed  and  payable
 7    original  granted  annuity  shall  accrue  in  each   January
 8    thereafter.    Beginning  January  1,  1986, the rate of such
 9    increase shall be 3% instead of 2%.
10        The provisions of the preceding paragraph of this Section
11    apply only to a retired policeman eligible for such increases
12    in his annuity who contributes to the Fund a sum equal to  $5
13    for each full year of credited service upon which his annuity
14    was computed.  All such sums contributed shall be placed in a
15    Supplementary  Payment  Reserve  and  shall  be  used for the
16    purposes of such Fund account.
17        Beginning with the monthly annuity payment due  in  July,
18    1982,  the  fixed and granted monthly annuity payment for any
19    policeman who retired from the service, before  September  1,
20    1976,  at age 50 or over with 20 or more years of service and
21    entitled to an annuity on January 1, 1974, shall be not  less
22    than $400.  It is the intent of the General Assembly that the
23    change  made  in  this Section by this amendatory Act of 1982
24    shall apply retroactively to July 1, 1982.
25        Beginning with the monthly annuity payment due on January
26    1, 1986, the fixed and granted monthly  annuity  payment  for
27    any  policeman who retired from the service before January 1,
28    1986, at age 50 or over with 20 or more years of service,  or
29    any  policeman who retired from service due to termination of
30    disability and who is entitled to an annuity  on  January  1,
31    1986, shall be not less than $475.
32        Beginning with the monthly annuity payment due on January
33    1,  1992,  the  fixed and granted monthly annuity payment for
34    any policeman who retired from the service before January  1,
 
                            -7-      LRB093 02820 LRD 20148 a
 1    1992, 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    1992, shall be not less than $650.
 5        Beginning with the monthly annuity payment due on January
 6    1,  1993,  the  fixed and granted monthly annuity payment for
 7    any policeman who retired from the service before January  1,
 8    1993, 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    1993, shall be not less than $750.
12        Beginning with the monthly annuity payment due on January
13    1,  1994,  the  fixed and granted monthly annuity payment for
14    any policeman who retired from the service before January  1,
15    1994, 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    1994, shall be not less than $850.
19        Beginning with the monthly annuity payment due on January
20    1,  2004,  the  fixed and granted monthly annuity payment for
21    any policeman who retired from the service before January  1,
22    2004, 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    2004, shall be not less than $950.
26        Beginning with the monthly annuity payment due on January
27    1,  2005,  the  fixed and granted monthly annuity payment for
28    any policeman who retired from the service before January  1,
29    2005, at age 50 or over with 20 or more years of service, and
30    for any policeman who retired from service due to termination
31    of disability and who is entitled to an annuity on January 1,
32    2005, shall be not less than $1,050.
33        The  difference  in amount between the original fixed and
34    granted monthly annuity of any such policeman on the date  of
 
                            -8-      LRB093 02820 LRD 20148 a
 1    his  retirement  from  the  service  and  the monthly annuity
 2    provided for in the immediately preceding paragraph shall  be
 3    paid  as  a  supplement  in  the  manner  set  forth  in  the
 4    immediately following paragraph.
 5        To  defray  the annual cost of the increases indicated in
 6    the preceding part of   this  Section,  the  annual  interest
 7    income accruing from investments held by this Fund, exclusive
 8    of gains or losses on sales or exchanges of assets during the
 9    year,  over  and  above 4% a year shall be used to the extent
10    necessary and available to finance the cost of such increases
11    for the following year and such amount shall  be  transferred
12    as  of the end of each year beginning with the year 1969 to a
13    Fund account designated as the Supplementary Payment  Reserve
14    from the Interest and Investment Reserve set forth in Section
15    5-207.
16        In  the  event  the  funds  in  the Supplementary Payment
17    Reserve in any year arising from:  (1)  the  interest  income
18    accruing  in  the preceding  year above 4% a year and (2) the
19    contributions by retired persons are insufficient to make the
20    total  payments  to  all  persons  entitled  to  the  annuity
21    specified in this Section and (3) any interest earnings  over
22    4%  a  year  beginning  with  the  year  1969  which were not
23    previously used to finance  such  increases  and  which  were
24    transferred to the Prior Service Annuity Reserve, may be used
25    to  the  extent necessary and available to provide sufficient
26    funds to finance such increases for the current year and such
27    sums shall be transferred  from  the  Prior  Service  Annuity
28    Reserve.   In  the  event  the  total  money available in the
29    Supplementary  Payment  Reserve   from   such   sources   are
30    insufficient  to  make  the  total  payments  to  all persons
31    entitled to such increases  for  the  year,  a  proportionate
32    amount  computed  as  the ratio of the money available to the
33    total of the total payments specified for that year shall  be
34    paid to each person for that year.
 
                            -9-      LRB093 02820 LRD 20148 a
 1        The  Fund  shall  be  obligated  for  the  payment of the
 2    increases in  annuity as provided for in this Section only to
 3    the extent that the assets for such purpose are available.
 4    (Source: P.A. 91-357, eff. 7-29-99.)

 5        (40 ILCS 5/5-167.4) (from Ch. 108 1/2, par. 5-167.4)
 6        Sec. 5-167.4. Widow annuitant minimum annuity.
 7        (a)  Notwithstanding any other provision of this Article,
 8    beginning January 1, 1996,  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 $700 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 1995.
13        Notwithstanding  any  other  provision  of  this Article,
14    beginning January 1, 1999,  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 $800 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 1998.
19        Notwithstanding  any  other  provision  of  this Article,
20    beginning January 1, 2004,  the  minimum  amount  of  widow's
21    annuity  payable  to  any person who is entitled to receive a
22    widow's annuity under this Article is $900 per month, without
23    regard to whether the deceased policeman is in service on  or
24    after  the  effective date of this amendatory Act of the 93rd
25    General Assembly.
26        Notwithstanding any  other  provision  of  this  Article,
27    beginning  January  1,  2005,  the  minimum amount of widow's
28    annuity payable to any person who is entitled  to  receive  a
29    widow's  annuity  under  this  Article  is  $1,000 per month,
30    without regard  to  whether  the  deceased  policeman  is  in
31    service on or after the effective date of this amendatory Act
32    of the 93rd General Assembly.
33        (b)  Effective  January  1,  1994,  the minimum amount of
 
                            -10-     LRB093 02820 LRD 20148 a
 1    widow's annuity shall be $700 per  month  for  the  following
 2    classes  of  widows,  without  regard to whether the deceased
 3    policeman is in service on or after  the  effective  date  of
 4    this amendatory Act of 1993: (1) the widow of a policeman who
 5    dies  in service with at least 10 years of service credit, or
 6    who dies in service after June 30, 1981; and (2) the widow of
 7    a policeman who withdraws from service with 20 or more  years
 8    of  service  credit  and does not withdraw a refund, provided
 9    that  the  widow  is  married  to  the  policeman  before  he
10    withdraws from service.
11        (c)  The city, in addition to the contributions otherwise
12    made by it under the other provisions of this Article,  shall
13    make  such  contributions  as  are  necessary for the minimum
14    widow's annuities provided under this Section in  the  manner
15    prescribed in Section 5-175.
16    (Source: P.A. 89-12, eff. 4-20-95; 90-766, eff. 8-14-98.)

17        (40 ILCS 5/5-168) (from Ch. 108 1/2, par. 5-168)
18        Sec. 5-168. Financing.
19        (a)  Except  as  expressly  provided in this Section, the
20    city shall levy a tax  annually  upon  all  taxable  property
21    therein for the purpose of providing revenue for the fund.
22        The tax shall be at a rate that will produce a sum which,
23    when  added  to  the  amounts  deducted  from the policemen's
24    salaries  and  the  amounts  deposited  in  accordance   with
25    subsection (g), is sufficient for the purposes of the fund.
26        For  the years 1968 and 1969, the city council shall levy
27    a tax annually at a  rate  on  the  dollar  of  the  assessed
28    valuation  of  all  taxable  property that will produce, when
29    extended, not to exceed $9,700,000.  Beginning with the  year
30    1970  and  each year thereafter the city council shall levy a
31    tax annually  at  a  rate  on  the  dollar  of  the  assessed
32    valuation  of  all  taxable  property  that will produce when
33    extended  an  amount  not  to  exceed  the  total  amount  of
 
                            -11-     LRB093 02820 LRD 20148 a
 1    contributions by the  policemen  to  the  Fund  made  in  the
 2    calendar   year  2  years  before  the  year  for  which  the
 3    applicable annual tax is levied, multiplied by 1.40  for  the
 4    tax  levy  year  1970; by 1.50 for the year 1971; by 1.65 for
 5    1972; by 1.85 for 1973; by 1.90 for 1974; by  1.97  for  1975
 6    through 1981; by 2.00 for 1982 and for each year thereafter.
 7        (b)  The tax shall be levied and collected in like manner
 8    with the general taxes of the city, and is in addition to all
 9    other  taxes  which  the  city  is  now  or  may hereafter be
10    authorized to levy upon all taxable property therein, and  is
11    exclusive of and in addition to the amount of tax the city is
12    now  or  may  hereafter  be  authorized  to  levy for general
13    purposes under any law which may  limit  the  amount  of  tax
14    which  the  city  may  levy for general purposes.  The county
15    clerk of the county in which the city is located, in reducing
16    tax levies under Section  8-3-1  of  the  Illinois  Municipal
17    Code,  shall not consider the tax herein authorized as a part
18    of the general tax levy for  city  purposes,  and  shall  not
19    include  the  tax  in  any  limitation  of the percent of the
20    assessed valuation  upon  which  taxes  are  required  to  be
21    extended for the city.
22        (c)  On  or  before  January  10  of each year, the board
23    shall notify the city council of the requirement that the tax
24    herein authorized be levied by  the  city  council  for  that
25    current  year.  The board shall compute the amounts necessary
26    for the purposes of this fund to be credited to the  reserves
27    established  and  maintained  within  the fund; shall make an
28    annual determination of  the  amount  of  the  required  city
29    contributions;  and  shall certify the results thereof to the
30    city council.
31        As soon as any revenue derived from the tax is  collected
32    it  shall be paid to the city treasurer of the city and shall
33    be held by him for the benefit of the fund in accordance with
34    this Article.
 
                            -12-     LRB093 02820 LRD 20148 a
 1        (d)  If the funds available are insufficient  during  any
 2    year  to  meet the requirements of this Article, the city may
 3    issue tax anticipation warrants against the tax levy for  the
 4    current fiscal year.
 5        (e)  The   various   sums,   including  interest,  to  be
 6    contributed by the city, shall  be  taken  from  the  revenue
 7    derived  from  such tax or otherwise as expressly provided in
 8    this Section.  Any moneys of the city derived from any source
 9    other than the tax herein authorized shall not  be  used  for
10    any  purpose  of  the  fund  nor  the  cost of administration
11    thereof,  unless  applied  to  make  the  deposit   expressly
12    authorized   in   this   Section   or   the  additional  city
13    contributions required under subsection (h).
14        (f)  If it is not possible or practicable for the city to
15    make its contributions at the time that salary deductions are
16    made, the city shall  make  such  contributions  as  soon  as
17    possible  thereafter, with interest thereon to the time it is
18    made.
19        (g)  In lieu of levying all  or  a  portion  of  the  tax
20    required under this Section in any year, the city may deposit
21    with  the  city  treasurer no later than March 1 of that year
22    for the benefit of the fund, to be held  in  accordance  with
23    this  Article, an amount that, together with the taxes levied
24    under this Section for that year, is not less than the amount
25    of the city contributions for that year as certified  by  the
26    board  to  the city council.  The deposit may be derived from
27    any source legally available for that purpose, including, but
28    not limited to, the proceeds of city borrowings.  The  making
29    of  a  deposit  shall  satisfy fully the requirements of this
30    Section for that  year  to  the  extent  of  the  amounts  so
31    deposited.   Amounts  deposited  under this subsection may be
32    used by the fund for  any  of  the  purposes  for  which  the
33    proceeds  of  the  tax levied under this Section may be used,
34    including  the  payment  of  any  amount  that  is  otherwise
 
                            -13-     LRB093 02820 LRD 20148 a
 1    required by this Article to be paid from the proceeds of that
 2    tax.
 3        (h)  In addition to the contributions required under  the
 4    other  provisions  of  this  Article,  by  November  1 of the
 5    following specified years, the city shall  deposit  with  the
 6    city  treasurer  for  the benefit of the fund, to be held and
 7    used in accordance with this Article, the following specified
 8    amounts: $6,300,000 in 1999; $5,880,000 in  2000;  $5,460,000
 9    in   2001;  $5,040,000  in  2002;  $4,620,000  in  2003;  and
10    $4,200,000 in 2004; $3,780,000 in 2005; $3,360,000  in  2006;
11    $2,940,000  in  2007; $2,520,000 in 2008; $2,100,000 in 2009;
12    $1,680,000 in 2010; $1,260,000 in 2011; $840,000 in 2012; and
13    $420,000 in 2013.
14        The additional city  contributions  required  under  this
15    subsection are intended to decrease the unfunded liability of
16    the  fund  and  shall  not  decrease  the  amount of the city
17    contributions required under the  other  provisions  of  this
18    Article.   The  additional city contributions made under this
19    subsection may be used by the fund  for  any  of  its  lawful
20    purposes.
21    (Source: P.A. 89-12, eff. 4-20-95; 90-766, eff. 8-14-98.)

22        (40 ILCS 5/6-111) (from Ch. 108 1/2, par. 6-111)
23        Sec.  6-111. Salary.  "Salary": Subject to Section 6-211,
24    the annual salary of a fireman, as follows:
25        (a)  For age and service annuity,  minimum  annuity,  and
26    disability  benefits, the actual amount of the annual salary,
27    except as otherwise provided in this Article.;
28        (b)  For prior service annuity, widow's annuity,  widow's
29    prior  service  annuity  and child's annuity to and including
30    August 31, 1957, the amount of the  annual  salary  up  to  a
31    maximum of $3,000.;
32        (c)  Except as otherwise provided in Section 6-141.1, for
33    widow's  annuity,  beginning September 1, 1957, the amount of
 
                            -14-     LRB093 02820 LRD 20148 a
 1    annual salary up to a maximum of $6,000.
 2        (d)  "Salary" means  the  actual  amount  of  the  annual
 3    salary  attached to the permanent career service rank held by
 4    the fireman, except as provided in subsection (e).
 5        (e)  In the  case  of  a  fireman  who  holds  an  exempt
 6    position above career service rank:
 7             (1)  For  the purpose of computing employee and city
 8        contributions, "salary" means the actual salary  attached
 9        to the exempt rank position held by the fireman.
10             (2)  For the purpose of computing benefits: "salary"
11        means  the  actual  salary  attached  to  the exempt rank
12        position held by the fireman, if  (i)  the  contributions
13        specified  in  Section  6-211  have  been  made, (ii) the
14        fireman has held one or  more  exempt  positions  for  at
15        least  5  consecutive  years  and  has  held  the rank of
16        battalion chief or field officer for  at  least  5  years
17        during  the exempt period, and (iii) the fireman was born
18        before  1955;  otherwise,  "salary"  means   the   salary
19        attached to the permanent career service rank held by the
20        fireman, as provided in subsection (d).
21        (f)  Beginning  on  the effective date of this amendatory
22    Act of the 93rd General Assembly, and for any  prior  periods
23    for  which  contributions have been paid under subsection (g)
24    of this Section, all salary payments made to  any  active  or
25    former  fireman  who  holds  or previously held the permanent
26    assigned position or classified career service  rank,  grade,
27    or  position  of  ambulance  commander  shall  be included as
28    salary for all purposes under this Article.
29        (g)  Any active or former fireman who held the  permanent
30    assigned  position  or classified career service rank, grade,
31    or position of ambulance commander may elect to have the full
32    amount of the salary  attached  to  that  permanent  assigned
33    position   or  classified  career  service  rank,  grade,  or
34    position included in the calculation of his or her salary for
 
                            -15-     LRB093 02820 LRD 20148 a
 1    any period  during  which  the  fireman  held  the  permanent
 2    assigned  position  or classified career service rank, grade,
 3    or position of ambulance commander by applying in writing and
 4    making  all  employee  and  employer  contributions,  without
 5    interest, related to the actual salary payments corresponding
 6    to the  permanent  assigned  position  or  classified  career
 7    service  rank,  grade, or position of ambulance commander for
 8    all periods beginning  on  or  after  January  1,  1995.  All
 9    applicable  contributions  must  be  paid in full to the Fund
10    before January 1, 2006 before  the  payment  of  any  benefit
11    under this subsection (g) will made made.
12        Any former fireman or widow of a fireman who (i) held the
13    permanent  assigned  position  or  classified  career service
14    rank, grade, or position of ambulance commander, (ii)  is  in
15    receipt  of  annuity on the effective date of this amendatory
16    Act of the 93rd General Assembly, and (iii) pays to the  Fund
17    contributions  under  this subsection (g) for salary payments
18    at the  permanent  assigned  position  or  classified  career
19    service rank, grade, or position of ambulance commander shall
20    have his or her annuity recalculated to reflect the ambulance
21    commander  salary  and  the  resulting  increase shall become
22    payable on the next annuity payment date following  the  date
23    the contribution is received by the Fund.
24        In  the  case of an active or former fireman who (i) dies
25    before January 1, 2006 without making an election under  this
26    subsection  and  (ii)  was eligible to make an election under
27    this subsection at the time of  death  (or  would  have  been
28    eligible  had  the death occurred after the effective date of
29    this amendatory Act), any surviving spouse, child, or  parent
30    of  the  fireman  who  is eligible to receive a benefit under
31    this Article based on the  fireman's  salary  may  make  that
32    election  and pay the required contributions on behalf of the
33    deceased fireman.  If the death occurs  within  the  30  days
34    immediately  preceding  January  1,  2006,  the  deadline for
 
                            -16-     LRB093 02820 LRD 20148 a
 1    application and payment is extended to January 31, 2006.
 2        Any portion of the compensation received for  service  as
 3    an   ambulance   commander   for   which   the  corresponding
 4    contributions have not been paid shall not be included in the
 5    calculation of salary.
 6        (h)  Beginning January 1, 1999, with respect to a fireman
 7    who  is  licensed  by  the  State  as  an  Emergency  Medical
 8    Technician, references  in  this  Article  to  the  fireman's
 9    salary  or  the  salary  attached  to or appropriated for the
10    permanent assigned  position  or  classified  career  service
11    rank,  grade,  or  position of the fireman shall be deemed to
12    include any additional compensation payable to the fireman by
13    virtue of being licensed as an Emergency Medical  Technician,
14    as  provided under a collective bargaining agreement with the
15    city.
16        (i)  Beginning on the effective date of  this  amendatory
17    Act of the 93rd General Assembly (and for any period prior to
18    that  date  for  which  contributions  have  been  paid under
19    subsection (j) of this Section), the salary of a fireman,  as
20    calculated  for any purpose under this Article, shall include
21    any  duty  availability  pay  received  by  the  fireman  (i)
22    pursuant  to  a  collective  bargaining  agreement  or   (ii)
23    pursuant   to   an   appropriation  ordinance  in  an  amount
24    equivalent to the amount of duty availability pay received by
25    other firemen pursuant to a collective bargaining  agreement,
26    and  references  in this Article to the salary attached to or
27    appropriated  for  the   permanent   assigned   position   or
28    classified  career  service  rank,  grade, or position of the
29    fireman shall be deemed to  include  that  duty  availability
30    pay.
31        (j)  An  active  or  former  fireman  who  received  duty
32    availability  pay  at  any  time  after December 31, 1994 and
33    before the effective date of this amendatory Act of the  93rd
34    General  Assembly  and  who  either  (1)  retired during that
 
                            -17-     LRB093 02820 LRD 20148 a
 1    period or (2) had attained age 46 and at least  16  years  of
 2    service  by  the  effective  date  of this amendatory Act may
 3    elect to have that duty  availability  pay  included  in  the
 4    calculation  of  his  or  her  salary for any portion of that
 5    period for which the pay was received, by applying in writing
 6    and  paying  to  the  Fund,  before  January  1,  2006,   the
 7    corresponding employee contribution, without interest.
 8        In  the  case of an applicant who is receiving an annuity
 9    at the time the application and contribution are received  by
10    the Fund, the annuity shall be recalculated and the resulting
11    increase  shall  become  payable  on the next annuity payment
12    date following the date the contribution is received  by  the
13    Fund.
14        In  the  case of an active or former fireman who (i) dies
15    before January 1, 2006 without making an election under  this
16    subsection  and  (ii)  was eligible to make an election under
17    this subsection at the time of  death  (or  would  have  been
18    eligible  had  the death occurred after the effective date of
19    this amendatory Act), any surviving spouse, child, or  parent
20    of  the  fireman  who  is eligible to receive a benefit under
21    this Article based on the  fireman's  salary  may  make  that
22    election  and  pay the required contribution on behalf of the
23    deceased fireman.  If the death occurs  within  the  30  days
24    immediately  preceding  January  1,  2006,  the  deadline for
25    application and payment is extended to January 31, 2006.
26        Any duty availability pay  for  which  the  corresponding
27    employee contribution has not been paid shall not be included
28    in the calculation of salary.
29        (k)  The  changes to this Section made by this amendatory
30    Act of the 93rd General Assembly are not limited  to  firemen
31    in  service on or after the effective date of this amendatory
32    Act.
33    (Source: P.A. 83-1362.)
 
                            -18-     LRB093 02820 LRD 20148 a
 1        (40 ILCS 5/6-124.1 new)
 2        Sec. 6-124.1. Withdrawal at compulsory retirement  age  -
 3    amount of annuity.
 4        (a)  In  lieu  of  any  annuity  provided  in  the  other
 5    provisions  of  this  Article,  a  fireman who is required to
 6    withdraw  from  service  due  to  attainment  of   compulsory
 7    retirement  age and has at least 10 but less than 20 years of
 8    service credit may elect to receive an annuity equal  to  30%
 9    of  average  salary for the first 10 years of service plus 2%
10    of average salary for  each  completed  year  of  service  or
11    remaining fraction thereof in excess of 10, but not to exceed
12    a maximum of 50% of average salary.
13        (b)  For  the  purpose  of this Section, "average salary"
14    means the average of  the  fireman's  highest  4  consecutive
15    years of salary within the last 10 years of service.
16        (c)  For   the  purpose  of  qualifying  for  the  annual
17    increases  provided  in  Section  6-164,  a   fireman   whose
18    retirement  annuity is calculated under this Section shall be
19    deemed to qualify for a minimum annuity.

20        (40 ILCS 5/6-128) (from Ch. 108 1/2, par. 6-128)
21        Sec. 6-128. (a) A future  entrant  who  withdraws  on  or
22    after  July  21,  1959, after completing at least 23 years of
23    service, and for whom the annuity otherwise provided in  this
24    Article is less than that stated in this Section, has a right
25    to receive annuity as follows:
26        If  he is age 53 or more on withdrawal, his annuity after
27    withdrawal, shall be equal  to  50%  of  his  average  salary
28    determined  by  striking  an average of 4 consecutive highest
29    years  of  salary  within  the  last  10  years  of   service
30    immediately preceding the date of withdrawal.
31        An employee who reaches compulsory retirement age and who
32    has  less  than  23  years  of service shall be entitled to a
33    minimum annuity equal to an amount determined by the  product
 
                            -19-     LRB093 02820 LRD 20148 a
 1    of  (1) his years of service and (2) 2% of his average salary
 2    for the 4 consecutive highest years of salary within the last
 3    10  years  of  service  immediately  prior  to  his  reaching
 4    compulsory retirement age.
 5        An employee who remains in service after  qualifying  for
 6    annuity  under  this Section shall have added to this annuity
 7    an additional 1% of average salary for each completed year of
 8    service or fraction thereof rendered until July 21, 1959, and
 9    an additional 1% for a total of 2%  of  average  salary  from
10    July  21,  1959.   Each  future  entrant who has completed 23
11    years of service before reaching age 53 shall have  added  to
12    this  annuity 1% of average salary for each completed year of
13    service or fraction thereof in excess of 23 years up  to  age
14    53.  "Salary"  as  referred  to  in  this  paragraph shall be
15    determined by  striking  an  average  of  the  4  consecutive
16    highest  years  of salary within the last 10 years of service
17    immediately preceding withdrawal.
18        (b)  In lieu of the annuity  provided  in  the  foregoing
19    provisions  of  this Section any future entrant who withdraws
20    from the service either (i) after December 31, 1983  with  at
21    least  22  years of service credit and having attained age 52
22    in the service, or (ii) after December 31, 1984 with at least
23    21 years of service credit and having attained age 51 in  the
24    service,  or  (iii)  after December 31, 1985 with at least 20
25    years of service credit and having attained  age  50  in  the
26    service,  or  (iv)  after  December 31, 1990 with at least 20
27    years of service regardless of age, may elect to  receive  an
28    annuity,  to begin not earlier than upon attainment of age 50
29    if under that age at withdrawal,  computed  as  follows:   an
30    annuity  equal to 50% of the average salary for the 4 highest
31    consecutive years of the  last  10  years  of  service,  plus
32    additional  annuity  equal  to  2% of such average salary for
33    each completed year of service or fraction  thereof  rendered
34    after  his  completion  of  the  minimum  number  of years of
 
                            -20-     LRB093 02820 LRD 20148 a
 1    service required for him to be eligible under this subsection
 2    (b).  However, the annuity provided under this subsection (b)
 3    may not exceed 75% of such average salary.
 4        (c)  In  lieu  of  the  annuity  provided  in  any  other
 5    provision of this Section, a  future  entrant  who  withdraws
 6    from  service after the effective date of this amendatory Act
 7    of the 93rd General  Assembly  with  at  least  20  years  of
 8    service  may elect to receive an annuity, to begin no earlier
 9    than  upon  attainment  of  age  50  if  under  that  age  at
10    withdrawal, equal to 50%  of  average  salary  plus  2.5%  of
11    average salary for each completed year of service or fraction
12    thereof over 20, but not to exceed 75% of average salary.
13        (d)  For  the  purpose  of this Section, "average salary"
14    means the average of  the  highest  4  consecutive  years  of
15    salary within the last 10 years of service.
16    (Source: P.A. 86-1488.)

17        (40 ILCS 5/6-128.2) (from Ch. 108 1/2, par. 6-128.2)
18        Sec. 6-128.2. Minimum retirement annuities.
19        (a)  Beginning  with  the monthly payment due in January,
20    1988, the monthly annuity  payment  for  any  person  who  is
21    entitled  to  receive a retirement annuity under this Article
22    in January, 1990 and has retired from service at  age  50  or
23    over with 20 or more years of service, and for any person who
24    retires  from  service on or after January 24, 1990 at age 50
25    or over with 20 or more years of service, shall not  be  less
26    than $475 per month. The $475 minimum annuity is exclusive of
27    any automatic annual increases provided by Sections 6-164 and
28    6-164.1,  but not exclusive of previous raises in the minimum
29    annuity as provided by any Section of this Article.
30        Beginning January 1, 1992, the minimum retirement annuity
31    payable to any person who has retired from service at age  50
32    or  over  with 20 or more years of service and is entitled to
33    receive a retirement annuity under this Article on that date,
 
                            -21-     LRB093 02820 LRD 20148 a
 1    or who retires from service at age 50 or over with 20 or more
 2    years of service after that date, shall be $650 per month.
 3        Beginning January 1, 1993, the minimum retirement annuity
 4    payable to any person who has retired from service at age  50
 5    or  over  with 20 or more years of service and is entitled to
 6    receive a retirement annuity under this Article on that date,
 7    or who retires from service at age 50 or over with 20 or more
 8    years of service after that date, shall be $750 per month.
 9        Beginning January 1, 1994, the minimum retirement annuity
10    payable to any person who has retired from service at age  50
11    or  over  with 20 or more years of service and is entitled to
12    receive a retirement annuity under this Article on that date,
13    or who retires from service at age 50 or over with 20 or more
14    years of service after that date, shall be $850 per month.
15        Beginning January 1, 2004, the minimum retirement annuity
16    payable to any person who has retired from service at age  50
17    or  over  with 20 or more years of service and is entitled to
18    receive a retirement annuity under this Article on that date,
19    or who retires from service at age 50 or over with 20 or more
20    years of service after that date, shall be $950 per month.
21        Beginning January 1, 2005, the minimum retirement annuity
22    payable to any person who has retired from service at age  50
23    or  over  with 20 or more years of service and is entitled to
24    receive a retirement annuity under this Article on that date,
25    or who retires from service at age 50 or over with 20 or more
26    years of service after that date, shall be $1,050 per month.
27        The minimum annuities established by this subsection  (a)
28    do include previous raises in the minimum annuity as provided
29    by  any  Section of this Article, but do not include any sums
30    which have been added or will be added to annuity payments by
31    the automatic annual increases provided by Sections 6-164 and
32    6-164.1.  Such annual increases shall be paid in addition  to
33    the minimum amounts specified in this subsection.
34        (b)  Notwithstanding any other provision of this Article,
 
                            -22-     LRB093 02820 LRD 20148 a
 1    beginning  January  1,  1990,  the minimum retirement annuity
 2    payable to any person who is entitled to receive a retirement
 3    annuity under this Article on that date  shall  be  $475  per
 4    month.
 5        (c)  The  changes made to this Section by this amendatory
 6    Act of the 93rd General Assembly shall apply to  all  persons
 7    receiving  a  retirement  annuity under this Article, without
 8    regard to whether the  retirement  of  the  fireman  occurred
 9    prior to the effective date of this amendatory Act of 1993.
10    (Source: P.A.  86-273;  86-1027;  86-1028;  86-1475;  87-849;
11    87-1265.)

12        (40 ILCS 5/6-128.4) (from Ch. 108 1/2, par. 6-128.4)
13        Sec. 6-128.4. Minimum widow's annuities.
14        (a)  Notwithstanding any other provision of this Article,
15    beginning  January  1,  1996,  the  minimum amount of widow's
16    annuity payable to any person who is entitled  to  receive  a
17    widow's annuity under this Article is $700 per month, without
18    regard  to  whether  the deceased fireman is in service on or
19    after the effective date of this amendatory Act of 1995.
20        (b)  Notwithstanding Section 6-128.3,  beginning  January
21    1, 1994, the minimum widow's annuity under this Article shall
22    be  $700  per  month  for  (1)  all persons receiving widow's
23    annuities on that date who are  survivors  of  employees  who
24    retired  at age 50 or over with at least 20 years of service,
25    and (2) persons who become eligible for widow's annuities and
26    are survivors of employees who retired at age 50 or over with
27    at least 20 years of service.
28        (c)  Notwithstanding Section 6-128.3,  beginning  January
29    1, 1999, the minimum widow's annuity under this Article shall
30    be  $800  per  month  for  (1)  all persons receiving widow's
31    annuities on that date who are  survivors  of  employees  who
32    retired  at age 50 or over with at least 20 years of service,
33    and (2) persons who become eligible for widow's annuities and
 
                            -23-     LRB093 02820 LRD 20148 a
 1    are survivors of employees who retired at age 50 or over with
 2    at least 20 years of service.
 3        (d)  Notwithstanding Section 6-128.3,  beginning  January
 4    1, 2004, the minimum widow's annuity under this Article shall
 5    be $900 per month for all persons receiving widow's annuities
 6    on or after that date, without regard to whether the deceased
 7    fireman  is in service on or after the effective date of this
 8    amendatory Act of the 93rd General Assembly.
 9        (e)  Notwithstanding Section 6-128.3,  beginning  January
10    1, 2005, the minimum widow's annuity under this Article shall
11    be  $1,000  per  month  for  all  persons  receiving  widow's
12    annuities  on  or  after that date, without regard to whether
13    the deceased fireman is in service on or after the  effective
14    date of this amendatory Act of the 93rd General Assembly.
15    (Source: P.A. 89-136, eff. 7-14-95; 90-766, eff. 8-14-98.)

16        (40 ILCS 5/6-141.2 new)
17        Sec.   6-141.2.   Minimum  annuity  for  certain  widows.
18    Notwithstanding the other provisions  of  this  Article,  the
19    widow's annuity payable to the widow of a fireman who dies on
20    or  after  July 1, 1997 while an active fireman with at least
21    10 years of creditable service shall be no less than  50%  of
22    the  retirement  annuity that the deceased fireman would have
23    been eligible to receive if he had attained  age  50  and  20
24    years  of  service on the day before his death and retired on
25    that day.  In the case of a widow's annuity that  is  payable
26    on  the  effective  date  of  this amendatory Act of the 93rd
27    General Assembly, the increase provided by this  Section,  if
28    any,  shall begin to accrue on the first annuity payment date
29    following that effective date.

30        (40 ILCS 5/6-142) (from Ch. 108 1/2, par. 6-142)
31        Sec. 6-142. Wives and widows not entitled to annuities.
32        (A)  Except as provided in subsection (B), the  following
 
                            -24-     LRB093 02820 LRD 20148 a
 1    wives or widows have no right to annuity from the fund:
 2        (a)  A  wife or widow married subsequent to the effective
 3    date of a fireman who dies in service if she was not  married
 4    to him before he attained age 63;
 5        (b)  A  wife or widow of a fireman who withdraws, whether
 6    or not he enters upon annuity, and dies while out of service,
 7    if the marriage occurred after the effective date and she was
 8    not his wife while he was in service and before  he  attained
 9    age 63;
10        (c)  A  wife  or widow of a fireman who (1) has served 10
11    or more years, (2) dies out of service after he has withdrawn
12    from service, and (3) has withdrawn or applied for refund  of
13    the sums to his credit for annuity to which he had a right to
14    refund;
15        (d)  A wife or widow of a fireman who dies out of service
16    after  he has withdrawn before age 63, and who has not served
17    at least 10 years;
18        (e)  A wife whose marriage was dissolved or  widow  of  a
19    fireman  whose  judgment  of dissolution of marriage from her
20    fireman  husband  is  annulled,  vacated  or  set  aside   by
21    proceedings  in court subsequent to the death of the fireman,
22    unless (1) such proceedings are filed within  5  years  after
23    the  date  of the dissolution of marriage and within one year
24    after the death of the fireman and (2) the board  is  made  a
25    party to the proceedings;
26        (f)  A wife or widow who married the fireman while he was
27    in  receipt  of disability benefit or disability pension from
28    this fund, unless he returned to the  service  subsequent  to
29    the  marriage  and  remained  therein for a period or periods
30    aggregating one year, or died while in service.
31        (B)  Beginning on the effective date of  this  amendatory
32    Act  of the 93rd General Assembly, the limitation on marriage
33    after withdrawal under subdivision (A)(b) and the  limitation
34    on  marriage  during  disability  under subdivision (A)(f) no
 
                            -25-     LRB093 02820 LRD 20148 a
 1    longer apply to a widow  who  was  married  to  the  deceased
 2    fireman  before  the  fireman  begins to receive a retirement
 3    annuity and for at least one year immediately  preceding  the
 4    date  of death, regardless of whether the deceased fireman is
 5    in service on or after the effective date of this  amendatory
 6    Act of the 93rd General Assembly; except that this subsection
 7    (B)  does  not apply to the widow of a fireman who received a
 8    refund of contributions for  widow's  annuity  under  Section
 9    6-160, unless the refund is repaid to the Fund, with interest
10    at  the  rate  of  4% per year, compounded annually, from the
11    date of the refund to the date of repayment.  If the widow of
12    a  fireman  who  died  before  the  effective  date  of  this
13    amendatory Act becomes eligible for a widow's annuity because
14    of this amendatory Act, the annuity shall begin to accrue  on
15    the  date  of  application  for  the annuity, but in no event
16    sooner than the effective date of this amendatory Act.
17    (Source: P.A. 81-230.)

18        (40 ILCS 5/6-143) (from Ch. 108 1/2, par. 6-143)
19        Sec. 6-143. Widow's remarriage.
20        (a)  Beginning on the effective date of  this  amendatory
21    Act  of the 93rd General Assembly, a widow's annuity shall no
22    longer be subject to termination  or  suspension  under  this
23    Section  due  to  remarriage.   Any  widow's annuity that was
24    previously terminated or  suspended  under  this  Section  by
25    reason  of  remarriage shall, upon application, be resumed as
26    of the date of the application, but in no event  sooner  than
27    the  effective  date  of this amendatory Act.  The resumption
28    shall  not  be  retroactive.   This  subsection  (a)  applies
29    regardless of whether or not  the  deceased  fireman  was  in
30    service  on  or  after  the effective date of this amendatory
31    Act.
32        (b)  This subsection (b) does not apply on or  after  the
33    effective  date  of  this  amendatory Act of the 93rd General
 
                            -26-     LRB093 02820 LRD 20148 a
 1    Assembly.
 2        Any annuity granted to a widow who remarries on or  after
 3    December  31,  1989  shall  be  suspended when she remarries,
 4    unless (i) she  remarries  after  attaining  the  age  of  60
 5    regardless  of  whether  or  not  the deceased fireman was in
 6    service on or after the effective date of this amendatory Act
 7    of 1995 or (ii) she has been granted a Section 6-140  annuity
 8    as  the widow of a fireman killed in performance of duty.  An
 9    annuity suspended under this Section shall, upon application,
10    be resumed if the subsequent marriage ends by dissolution  of
11    marriage, declaration of invalidity of marriage, or the death
12    of the husband; this resumption shall not be retroactive.
13        If  a widow remarries after attaining age 60 or after she
14    has been granted an  annuity  under  Section  6-140  and  the
15    remarriage takes place after December 31, 1989, regardless of
16    whether  or  not  the  deceased  fireman was in service on or
17    after the effective date of this amendatory Act of 1995,  the
18    widow's annuity shall continue without interruption.
19        Any  widow's  annuity  that  was previously terminated by
20    reason of remarriage prior to December 31, 1989 or  suspended
21    shall,  upon  application,  be resumed, as of the date of the
22    application, if the subsequent marriage ended by  dissolution
23    of  marriage,  declaration  of invalidity of marriage, or the
24    death of the  husband,  regardless  of  whether  or  not  the
25    deceased fireman was in service on the effective date of this
26    amendatory   Act  of  1995;  this  resumption  shall  not  be
27    retroactive.
28        When a widow dies, if she has not received, in  the  form
29    of  an  annuity,  an amount equal to the accumulated employee
30    contributions for widow's  annuity,  the  difference  between
31    such  accumulated  contributions and the sum received by her,
32    along with any part of the accumulated contributions for  age
33    and service annuity remaining in the fund at her death, shall
34    be  refunded  to  the  fireman's  children, in equal parts to
 
                            -27-     LRB093 02820 LRD 20148 a
 1    each; except that if a child is less than age 18, the part of
 2    any such amount that is required to pay  an  annuity  to  the
 3    child  shall  be  transferred to the child's annuity reserve.
 4    If no children or descendants thereof  survive  the  fireman,
 5    the  refund  shall  be paid to the estate of the fireman.  In
 6    making refunds under  this  Section,  no  interest  shall  be
 7    considered  upon either the total of annuity payments made or
 8    the amounts subject to refund.
 9    (Source: P.A. 89-136, eff. 7-14-95.)

10        (40 ILCS 5/6-151.1) (from Ch. 108 1/2, par. 6-151.1)
11        Sec. 6-151.1.  The General Assembly  finds  and  declares
12    that service in the Fire Department requires that firemen, in
13    times  of stress and danger, must perform unusual tasks; that
14    by  reason  of  their  occupation,  firemen  are  subject  to
15    exposure to great heat and to extreme cold in certain seasons
16    while in performance of their duties; that by reason of their
17    employment firemen are required to work in the midst  of  and
18    are   subject   to   heavy  smoke  fumes,  and  carcinogenic,
19    poisonous, toxic or chemical gases from fires;  and  that  in
20    the  course  of their rescue and paramedic duties firemen are
21    exposed to disabling  infectious  diseases,  including  AIDS,
22    hepatitis  C, and stroke.  The General Assembly further finds
23    and declares that all the aforementioned conditions exist and
24    arise out of or in the course of such employment.
25        Any active fireman who has completed 7 ten or more  years
26    of  service  and  is unable to perform his duties in the Fire
27    Department by reason of heart disease, tuberculosis,  or  any
28    disease of the lungs or respiratory tract, AIDS, hepatitis C,
29    or  stroke  resulting  solely  from his service as a fireman,
30    shall  be  entitled  to  receive  an   occupational   disease
31    disability  benefit  during any period of such disability for
32    which he does not have a right to receive salary.
33        Any active fireman who has completed 7 ten or more  years
 
                            -28-     LRB093 02820 LRD 20148 a
 1    of  service  and  is unable to perform his duties in the fire
 2    department by reason of a disabling cancer, which develops or
 3    manifests itself during a period while the fireman is in  the
 4    service  of  the  department, shall be entitled to receive an
 5    occupational disease disability benefit during any period  of
 6    such disability for which he does not have a right to receive
 7    salary.   In  order  to  receive  this  occupational  disease
 8    disability  benefit,  the  type  of cancer involved must be a
 9    type which may be caused by exposure to heat, radiation or  a
10    known  carcinogen  as defined by the International Agency for
11    Research on Cancer.
12        Any  fireman  who  shall  enter  the  service  after  the
13    effective date of this amendatory Act shall  be  examined  by
14    one or more practicing physicians appointed by the Board, and
15    if  that  said examination discloses impairment of the heart,
16    lungs, or  respiratory  tract,  or  the  existence  of  AIDS,
17    hepatitis  C,  stroke,  or  any cancer, then the such fireman
18    shall not be entitled  to  receive  an  occupational  disease
19    disability  benefit unless and until a subsequent examination
20    reveals no such impairment, AIDS,  hepatitis  C,  stroke,  or
21    cancer.
22        The  occupational disease disability benefit shall be 65%
23    of the fireman's salary at the time of his removal  from  the
24    Department  payroll.   However, beginning January 1, 1994, no
25    occupational disease disability benefit that has been payable
26    under this Section for at least 10 years shall be  less  than
27    50%  of  the current salary attached from time to time to the
28    rank and grade held by the fireman at the time of his removal
29    from the  Department  payroll,  regardless  of  whether  that
30    removal occurred before the effective date of this amendatory
31    Act of 1993.
32        Such  fireman  also shall have a right to receive child's
33    disability benefit of  $30  per  month  on  account  of  each
34    unmarried  child  who  is  less  than  18  years  of  age  or
 
                            -29-     LRB093 02820 LRD 20148 a
 1    handicapped,  dependent  upon  the  fireman  for support, and
 2    either the issue of the fireman or legally  adopted  by  him.
 3    The total amount of child's disability benefit payable to the
 4    fireman,  when  added  to his occupational disease disability
 5    benefit, shall not exceed 75% of the amount of  salary  which
 6    he  was  receiving  at  the time of the grant of occupational
 7    disease disability benefit.
 8        The first  payment  of  occupational  disease  disability
 9    benefit or child's disability benefit shall be made not later
10    than one month after the benefit is granted.  Each subsequent
11    payment shall be made not later than one month after the date
12    of the latest payment.
13        Occupational  disease disability benefit shall be payable
14    during the period of the disability until the fireman reaches
15    the age of compulsory retirement.  Child's disability benefit
16    shall be  paid  to  such  a  fireman  during  the  period  of
17    disability  until  such  child  or  children attain age 18 or
18    marry, whichever event occurs first; except  that  attainment
19    of  age  18  by  a  child  who  is  so physically or mentally
20    handicapped as to be dependent upon the fireman for  support,
21    shall  not render the child ineligible for child's disability
22    benefit.  The fireman thereafter shall receive  such  annuity
23    or annuities as are provided for him in accordance with other
24    provisions of this Article.
25    (Source: P.A. 88-528.)

26        (40 ILCS 5/6-160) (from Ch. 108 1/2, par. 6-160)
27        Sec. 6-160. Refund - Widow's annuity contributions.  When
28    a  fireman attains age 63 in service and is not then married,
29    or when an unmarried fireman  withdraws  before  age  63  and
30    enters  upon  annuity,  his contributions for widow's annuity
31    shall then be refunded to him, upon request.  A refund  under
32    this Section may be repaid as provided in Section 6-142(B).
33    (Source: P.A. 81-1536.)
 
                            -30-     LRB093 02820 LRD 20148 a
 1        (40 ILCS 5/6-164) (from Ch. 108 1/2, par. 6-164)
 2        Sec.  6-164.  Automatic annual increase; retirement after
 3    September 1, 1959.
 4        (a)  A fireman  qualifying  for  a  minimum  annuity  who
 5    retires  from  service  after  September  1, 1959 shall, upon
 6    either the first of the month following the first anniversary
 7    of his date of retirement if he is age 60  (age  55  if  born
 8    before  January  1,  1955  1945)  or over on that anniversary
 9    date, or upon the first of the month following his attainment
10    of age 60 (age 55 if born before January  1,  1955  1945)  if
11    that  occurs  after  the  first anniversary of his retirement
12    date,  have  his  then  fixed  and  payable  monthly  annuity
13    increased by 1 1/2%, and such first fixed annuity as  granted
14    at retirement increased by an additional 1 1/2% in January of
15    each  year  thereafter  up  to  a  maximum  increase  of 30%.
16    Beginning July 1, 1982 for firemen  born  before  January  1,
17    1930,  and  beginning  January 1, 1990 for firemen born after
18    December 31, 1929 and before January 1, 1940,  and  beginning
19    January  1, 1996 for firemen born after December 31, 1939 but
20    before January 1, 1945, and beginning January  1,  2004,  for
21    firemen  born  after  December 31, 1944 but before January 1,
22    1955,  such increases shall be 3% and such firemen shall  not
23    be subject to the 30% maximum increase.
24        Any fireman born before January 1, 1945 who qualifies for
25    a minimum annuity and retires after September 1, 1967 but has
26    not  received  the  initial  increase  under  this subsection
27    before January 1, 1996 is entitled  to  receive  the  initial
28    increase  under  this  subsection on (1) January 1, 1996, (2)
29    the first anniversary of  the  date  of  retirement,  or  (3)
30    attainment  of age 55, whichever occurs last.  The changes to
31    this Section made  by  this  amendatory  Act  of  1995  apply
32    beginning January 1, 1996 and apply without regard to whether
33    the  fireman  or  annuitant  terminated  service  before  the
34    effective date of this amendatory Act of 1995.
 
                            -31-     LRB093 02820 LRD 20148 a
 1        Any fireman born before January 1, 1955 who qualifies for
 2    a minimum annuity and retires after September 1, 1967 but has
 3    not  received  the  initial  increase  under  this subsection
 4    before January 1, 2004 is entitled  to  receive  the  initial
 5    increase  under  this  subsection on (1) January 1, 2004, (2)
 6    the first anniversary of  the  date  of  retirement,  or  (3)
 7    attainment  of age 55, whichever occurs last.  The changes to
 8    this Section made by this amendatory Act of the 93rd  General
 9    Assembly  apply  without  regard  to  whether  the fireman or
10    annuitant terminated service before  the  effective  date  of
11    this amendatory Act.
12        (b)  Subsection  (a) of this Section is not applicable to
13    an employee receiving a term annuity.
14        (c)  To  help  defray  the  cost  of  such  increases  in
15    annuity, there shall  be  deducted,  beginning  September  1,
16    1959,  from each payment of salary to a fireman, 1/8 of 1% of
17    each  such  salary  payment  and  an  additional  1/8  of  1%
18    beginning on  September  1,  1961,  and  September  1,  1963,
19    respectively, concurrently with and in addition to the salary
20    deductions otherwise made for annuity purposes.
21        Each  such  additional  1/8  of  1% deduction from salary
22    which shall, on September 1, 1963, result in a total increase
23    of 3/8 of 1% of salary, shall be credited  to  the  Automatic
24    Increase   Reserve,   to   be   used,   together   with  city
25    contributions as provided in this Article, to defray the cost
26    of the 1  1/2%  annuity  increments  herein  specified.   Any
27    balance  in such reserve as of the beginning of each calendar
28    year shall be credited with interest at the rate  of  3%  per
29    annum.
30        The  salary  deductions  provided in this Section are not
31    subject to refund, except to the fireman himself, in any case
32    in which a  fireman  withdraws  prior  to  qualification  for
33    minimum  annuity  and  applies  for  refund,  or  applies for
34    annuity, and also where a term annuity  becomes  payable.  In
 
                            -32-     LRB093 02820 LRD 20148 a
 1    such  cases,  the  total  of  such salary deductions shall be
 2    refunded to the fireman, without interest, and charged to the
 3    aforementioned reserve.
 4    (Source: P.A. 89-136, eff. 7-14-95.)

 5        (40 ILCS 5/6-165) (from Ch. 108 1/2, par. 6-165)
 6        Sec. 6-165. Financing; tax.
 7        (a)  Except as expressly provided in this  Section,  each
 8    city  shall  levy  a  tax  annually upon all taxable property
 9    therein for the purpose of providing revenue  for  the  fund.
10    For  the  years prior to the year 1960, the tax rate shall be
11    as provided for in the "Firemen's Annuity and Benefit Fund of
12    the Illinois  Municipal  Code".   The  tax,  from  and  after
13    January  1,  1968  to  and including the year 1971, shall not
14    exceed .0863% of the value, as equalized or assessed  by  the
15    Department  of  Revenue, of all taxable property in the city.
16    Beginning with the year 1972 and  each  year  thereafter  the
17    city shall levy a tax annually at a rate on the dollar of the
18    value,  as equalized or assessed by the Department of Revenue
19    of all taxable property within such city that  will  produce,
20    when  extended,  not  to  exceed an amount equal to the total
21    amount of contributions by the employees to the fund made  in
22    the  calendar  year  2  years prior to the year for which the
23    annual applicable tax is levied, multiplied by  2.23  through
24    the calendar year 1981, and by 2.26 for the year 1982 and for
25    each year thereafter.
26        To   provide  revenue  for  the  ordinary  death  benefit
27    established by Section 6-150 of this Article, in addition  to
28    the  contributions  by the firemen for this purpose, the city
29    council shall for the year  1962  and  each  year  thereafter
30    annually  levy  a  tax,  which  shall  be  in addition to and
31    exclusive of the taxes authorized  to  be  levied  under  the
32    foregoing  provisions  of  this  Section,  upon  all  taxable
33    property  in  the  city,  as  equalized  or  assessed  by the
 
                            -33-     LRB093 02820 LRD 20148 a
 1    Department of Revenue, at such rate per cent of the value  of
 2    such property as shall be sufficient to produce for each year
 3    the sum of $142,000.
 4        The  amounts  produced  by  the  taxes  levied  annually,
 5    together  with  the  deposit  expressly  authorized  in  this
 6    Section,  shall  be  sufficient,  when  added  to the amounts
 7    deducted from the salaries of  firemen  and  applied  to  the
 8    fund, to provide for the purposes of the fund.
 9        (b)  The  taxes  shall  be  levied  and collected in like
10    manner with the general taxes of the city, and  shall  be  in
11    addition  to all other taxes which the city may levy upon all
12    taxable property therein and shall be  exclusive  of  and  in
13    addition  to  the amount of tax the city may levy for general
14    purposes under Section 8-3-1 of the Illinois Municipal  Code,
15    approved  May 29, 1961, as amended, or under any other law or
16    laws which may limit the amount of tax  which  the  city  may
17    levy for general purposes.
18        (c)  The  amounts  of the taxes to be levied in each year
19    shall be certified to the city council by the board.
20        (d)  As soon as any revenue derived from  such  taxes  is
21    collected,  it  shall  be paid to the city treasurer and held
22    for the benefit of the fund, and all such  revenue  shall  be
23    paid  into the fund in accordance with the provisions of this
24    Article.
25        (e)  If the funds available are insufficient  during  any
26    year  to  meet the requirements of this Article, the city may
27    issue tax  anticipation  warrants,  against  the  tax  levies
28    herein authorized for the current fiscal year.
29        (f)  The  various  sums,  hereinafter  stated,  including
30    interest,  to be contributed by the city, shall be taken from
31    the revenue derived from the taxes or otherwise as  expressly
32    provided  in  this Section.  Except for defraying the cost of
33    administration of the fund during the calendar year in  which
34    a  city first attains a population of 500,000 and comes under
 
                            -34-     LRB093 02820 LRD 20148 a
 1    the provisions of this Article and the  first  calendar  year
 2    thereafter,  any  money  of  the city derived from any source
 3    other than these  taxes  or  the  sale  of  tax  anticipation
 4    warrants  shall  not be used to provide revenue for the fund,
 5    nor to pay any part of the cost  of  administration  thereof,
 6    unless  applied  to  make the deposit expressly authorized in
 7    this Section or the additional  city  contributions  required
 8    under subsection (h).
 9        (g)  In  lieu  of  levying  all  or  a portion of the tax
10    required under this Section in any year, the city may deposit
11    with the city treasurer no later than March 1  of  that  year
12    for  the  benefit  of the fund, to be held in accordance with
13    this Article, an amount that, together with the taxes  levied
14    under this Section for that year, is not less than the amount
15    of  the  city contributions for that year as certified by the
16    board to the city council.  The deposit may be  derived  from
17    any source legally available for that purpose, including, but
18    not  limited to, the proceeds of city borrowings.  The making
19    of a deposit shall satisfy fully  the  requirements  of  this
20    Section  for  that  year  to  the  extent  of  the amounts so
21    deposited.  Amounts deposited under this  subsection  may  be
22    used  by  the  fund  for  any  of  the purposes for which the
23    proceeds of the taxes levied under this Section may be  used,
24    including  the  payment  of  any  amount  that  is  otherwise
25    required  by  this  Article  to  be paid from the proceeds of
26    those taxes.
27        (h)  In addition to the contributions required under  the
28    other  provisions  of  this  Article,  by  November  1 of the
29    following specified years, the city shall  deposit  with  the
30    city  treasurer  for  the benefit of the fund, to be held and
31    used in accordance with this Article, the following specified
32    amounts: $6,300,000 in 1999; $5,880,000 in  2000;  $5,460,000
33    in   2001;  $5,040,000  in  2002;  and  $4,620,000  in  2003;
34    $4,200,000 in 2004; $3,780,000 in 2005; $3,360,000  in  2006;
 
                            -35-     LRB093 02820 LRD 20148 a
 1    $2,940,000  in  2007; $2,520,000 in 2008; $2,100,000 in 2009;
 2    $1,680,000 in 2010; $1,260,000 in 2011; $840,000 in 2012; and
 3    $420,000 in 2013.
 4        The additional city  contributions  required  under  this
 5    subsection are intended to decrease the unfunded liability of
 6    the  fund  and  shall  not  decrease  the  amount of the city
 7    contributions required under the  other  provisions  of  this
 8    Article.   The  additional city contributions made under this
 9    subsection may be used by the fund  for  any  of  its  lawful
10    purposes.
11    (Source: P.A. 89-136, eff. 7-14-95; 90-766, eff. 8-14-98.)

12        (40 ILCS 5/6-210.1) (from Ch. 108 1/2, par. 6-210.1)
13        Sec. 6-210.1.  Credit for former employment with the fire
14    department.
15        (a)  Any  fireman  who  (1) accumulated service credit in
16    the Article 8 fund for service as an employee of the  Chicago
17    Fire Department and (2) has terminated that Article 8 service
18    credit  and  received a refund of contributions therefor, may
19    establish service credit in this Fund for all or any part  of
20    that  period  of  service  under the Article 8 fund by making
21    written application to the  Board  by  January  1,  2000  and
22    paying to this Fund (i) employee contributions based upon the
23    actual salary received and the rates in effect for members of
24    this  Fund  at  the  time of such service, plus (ii) interest
25    thereon calculated as follows:
26             (1)  For applications received by the  Board  before
27        July  14,  the  effective  date of this amendatory Act of
28        1995, interest shall  be  calculated  on  the  amount  of
29        employee  contributions  determined under item (i) above,
30        at the rate of 4% per annum,  compounded  annually,  from
31        the  date  of  termination of such service to the date of
32        payment.
33             (2)  For applications received by the  Board  on  or
 
                            -36-     LRB093 02820 LRD 20148 a
 1        after  July 14, the effective date of this amendatory Act
 2        of 1995, interest shall be calculated on  the  amount  of
 3        employee  contributions  determined under item (i) above,
 4        at the rate of 4% per annum,  compounded  annually,  from
 5        the  first  date  of the period for which credit is being
 6        established under this subsection  (a)  to  the  date  of
 7        payment.
 8        (b)  A  fireman  who,  at any time during the period 1970
 9    through 1983, was an employee of the Chicago Fire  Department
10    but  did  not participate in any pension fund subject to this
11    Code with respect to that employment  may  establish  service
12    credit in this Fund for all or any part of that employment by
13    making  written  application  to the Board by January 1, 2005
14    2000 and paying to this Fund (i) employee contributions based
15    upon the actual salary received and the rates in  effect  for
16    members  of  this  Fund  at the time of that employment, plus
17    (ii) interest thereon calculated at the rate of 4% per annum,
18    compounded annually, from the first date  of  the  employment
19    for  which  credit is being established under this subsection
20    (b) to the date of payment.
21        (c)  A fireman may pay  the  contributions  required  for
22    service  credit  under  this  Section established on or after
23    July 14, the effective date of this amendatory Act of 1995 in
24    the form of  payroll  deductions,  in  accordance  with  such
25    procedures  and  limitations  as  may be established by Board
26    rule and any applicable rules or ordinances of the employer.
27        (d)  Employer  contributions  shall  be  transferred   as
28    provided in Sections 6-210.2 and 8-172.1.  The employer shall
29    not   be  responsible  for  making  any  additional  employer
30    contributions for any credit established under this Section.
31    (Source: P.A. 89-136, eff. 7-14-95.)

32        (40 ILCS 5/6-210.2 new)
33        Sec.  6-210.2.   City   contributions   for   paramedics.
 
                            -37-     LRB093 02820 LRD 20148 a
 1    Municipality  credits  computed  and credited under Article 8
 2    for all firemen who (1) accumulated  service  credit  in  the
 3    Article   8  fund  for  service  as  a  paramedic,  (2)  have
 4    terminated that Article  8  service  credit  and  received  a
 5    refund  of  contributions,  and  (3) are participants in this
 6    Article 6 fund on the effective date of this  amendatory  Act
 7    of  the  93rd  General  Assembly  shall be transferred by the
 8    Article 8 fund to this Fund, together with  interest  at  the
 9    rate  of  11%  per annum, compounded annually, to the date of
10    the transfer, as provided in Section 8-172.1  of  this  Code.
11    These  city contributions shall be credited to the individual
12    fireman only if he  or  she  pays  for  prior  service  as  a
13    paramedic in full to this Fund.

14        (40 ILCS 5/6-210.3 new)
15        Sec. 6-210.3.  Payments and rollovers.
16        (a)  The  Board may adopt rules prescribing the manner of
17    repaying refunds and purchasing any other  credits  permitted
18    under  this  Article.   The rules may prescribe the manner of
19    calculating interest when payments or repayments are made  in
20    installments.
21        (b)  Rollover  contributions  from other retirement plans
22    qualified under the Internal Revenue Code of 1986 may be used
23    to purchase any optional credit or repay any refund permitted
24    under this Article.

25        (40 ILCS 5/6-211) (from Ch. 108 1/2, par. 6-211)
26        Sec. 6-211. Permanent  and  temporary  positions;  exempt
27    positions above career service rank.
28        (a)  Except  as  specified in subsection (b), no annuity,
29    pension or other benefit shall be paid to a fireman or widow,
30    under this Article, based upon any salary paid by virtue of a
31    temporary appointment, and. all contributions, annuities  and
32    benefits shall be related to the salary which attaches to the
 
                            -38-     LRB093 02820 LRD 20148 a
 1    permanent position of the fireman.
 2        Any  fireman  temporarily  serving  in a position or rank
 3    other  than  that  to  which  he   has   received   permanent
 4    appointment  shall be considered, while so serving, as though
 5    he were in his permanent position or  rank,  except  that  no
 6    increase  in  any pension, annuity or other benefit hereunder
 7    shall accrue to him by virtue of any service performed by him
 8    subsequent  to  attaining  the  compulsory   retirement   age
 9    provided by law or ordinance.
10        This Section does shall not apply to any person certified
11    to the fire department by the civil service commission of the
12    city, during the period of probationary service.
13        A  fireman  who  holds a position at the will of the Fire
14    Commissioner or other appointing authority,  whether  or  not
15    such  position  is  an  "exempt" position, shall be deemed to
16    hold a temporary position, and such employee's  contributions
17    and  benefits  shall  be  based upon the employee's permanent
18    career service salary.   The  provisions  of  this  paragraph
19    shall be retroactive to January 1, 1976.
20        (b)  Beginning  on  the effective date of this amendatory
21    Act of the 93rd General Assembly, for service  in  an  exempt
22    position  above  career  service rank, employee contributions
23    shall be based on the actual  full  salary  attached  to  the
24    exempt rank position held by the fireman.
25        For  service  in  an exempt position above career service
26    rank, benefit computations under this Article shall be  based
27    on  the  actual  full  salary  attached  to  the  exempt rank
28    position held by the fireman if and only if:
29             (1)  employee contributions have been  paid  on  the
30        actual  full  salary attached to the exempt rank position
31        held by the fireman for all service on or  after  January
32        1, 1994 in an exempt position above career service rank;
33             (2)  the   fireman  has  held  one  or  more  exempt
34        positions for at least 5 consecutive years  (or,  in  the
 
                            -39-     LRB093 02820 LRD 20148 a
 1        case  of  a  fireman  who  retired  due  to attainment of
 2        compulsory retirement age before December 1,  2003,  held
 3        one  or more exempt positions for a consecutive period of
 4        at least 3 years  and  9  months  and  made  the  payment
 5        required  under subsection (c) for a period of at least 5
 6        years) and has held the rank of battalion chief or  field
 7        officer  for  at  least  5  years (at least 3 years and 9
 8        months in the case  of  a  fireman  who  retired  due  to
 9        attainment  of  compulsory retirement age before December
10        1, 2003) during the exempt period; and
11             (3)  the fireman was born before 1955.
12        (c)  For service prior to  the  effective  date  of  this
13    amendatory  Act  of  the  93rd  General Assembly in an exempt
14    position above career service rank  for  which  contributions
15    have  been  paid only on the salary attached to the fireman's
16    permanent  career  service  rank,  a  fireman  may  make  the
17    contributions required under subsection (b) by paying to  the
18    Fund  before  the later of the date of retirement or 6 months
19    after the effective date of this amendatory Act,  but  in  no
20    event  later  than  July  1,  2005,  an  amount  equal to the
21    difference between the employee contributions  actually  made
22    for  that  service  and the employee contributions that would
23    have been made based on the actual full  salary  attached  to
24    the  exempt  rank  position  held  by the fireman on or after
25    January 1, 1994, plus interest thereon at the rate of 4%  per
26    year,  compounded  annually,  from the date of the service to
27    the date  of  payment  (or  to  the  date  of  retirement  if
28    retirement  is  before  the effective date of this amendatory
29    Act). In the case of a fireman who retired in an exempt  rank
30    position after January 1, 1994 and before January 1, 1999 and
31    in  the  case  of  a  fireman  who  retired  due to attaining
32    compulsory  retirement  age  before  December  1,  2003,  the
33    payment under this subsection (c) shall be for a period of at
34    least 5 years.
 
                            -40-     LRB093 02820 LRD 20148 a
 1        If  a  fireman  dies   while   eligible   to   make   the
 2    contributions  required  under  subsection (b) but before the
 3    contributions are paid, the fireman's widow may elect to make
 4    the contributions.
 5        (d)  Subsection (e) of Section 6-111 and the changes made
 6    to this Section by this amendatory Act of  the  93rd  General
 7    Assembly apply to a fireman who retires (or becomes disabled)
 8    on  or  after  January  1,  1994.   In  the case of a benefit
 9    payable on the effective date of  this  amendatory  Act,  the
10    resulting  increase in benefit shall begin to accrue with the
11    first benefit payment period commencing  after  the  required
12    contributions are paid.
13        (e)  If a fireman or his survivors do not qualify to have
14    benefits  computed  on the full amount of salary received for
15    service in an exempt position as provided in subsection  (b),
16    benefits  shall  be  computed  on  the  basis  of  the salary
17    attached to the permanent career service rank, and  a  refund
18    of  any employee contributions paid on the difference between
19    the actual salary and the salary attached  to  the  permanent
20    career  service  rank  shall  be  payable to the fireman upon
21    termination of service, or to the fireman's widow  or  estate
22    upon the fireman's death.
23        (f)  The  tax  levy computed under Section 6-165 shall be
24    based on employee contributions, including  the  payments  of
25    employee contributions under subsections (a), (b), and (c) of
26    this Section 6-211.
27        (g)  The  city  shall pay to the Fund on an annual basis,
28    in addition to the usual city  contributions,  an  amount  at
29    least  equal  to  the  sum of (1) the increase in normal cost
30    resulting from  subsection  (e)  of  Section  6-111  and  the
31    changes  made  to  this Section by this amendatory Act of the
32    93rd General Assembly, plus (2) amortization (over  a  period
33    of  30  years from the effective date of this amendatory Act)
34    of the initial unfunded liability resulting  from  subsection
 
                            -41-     LRB093 02820 LRD 20148 a
 1    (e)  of Section 6-111 and the changes made to this Section by
 2    this amendatory  Act  of  the  93rd  General  Assembly.   The
 3    payment  required under this subsection shall be no less than
 4    $400,000 per  year.   Payment  shall  begin  with  the  first
 5    calendar  year  commencing  after  the effective date of this
 6    amendatory Act and shall be  in  addition  to  the  tax  levy
 7    otherwise  calculated  under  Section  6-165.   The  city may
 8    increase that tax levy by the amount of the payment  required
 9    under   this   subsection,   or  it  may  utilize  any  funds
10    appropriated for this purpose.
11    (Source: P.A. 83-16.)

12        (40 ILCS 5/6-222) (from Ch. 108 1/2, par. 6-222)
13        Sec. 6-222.  Administrative review.
14        (a)  The provisions of the Administrative Review Law, and
15    all  amendments  and  modifications  thereof  and  the  rules
16    adopted pursuant  thereto  shall  apply  to  and  govern  all
17    proceedings  for  the judicial review of final administrative
18    decisions  of  the  retirement  board  hereunder.  The   term
19    "administrative  decision"  is as defined in Section 3-101 of
20    the Code of Civil Procedure.
21        (b)  If any fireman whose application for either  a  duty
22    disability benefit under Section 6-151 or for an occupational
23    disease  disability  benefit  under  Section 6-151.1 has been
24    denied  by  the  Retirement  Board  brings  an   action   for
25    administrative  review  challenging  the denial of disability
26    benefits  and  the  fireman  prevails  in   the   action   in
27    administrative  review,  then the prevailing fireman shall be
28    entitled to recover from the Fund court costs and  litigation
29    expenses,  including  reasonable  attorney's fees, as part of
30    the costs of the action.
31    (Source: P.A. 82-783.)

32        (40 ILCS 5/8-137) (from Ch. 108 1/2, par. 8-137)
 
                            -42-     LRB093 02820 LRD 20148 a
 1        Sec. 8-137.  Automatic increase in annuity.
 2        (a)  An employee who  retired  or  retires  from  service
 3    after  December  31,  1959 and before January 1, 1987, having
 4    attained age 60 or more, shall, in January of the year  after
 5    the year in which the first anniversary of retirement occurs,
 6    have the amount of his then fixed and payable monthly annuity
 7    increased  by 1 1/2%, and such first fixed annuity as granted
 8    at retirement increased by a further 1  1/2%  in  January  of
 9    each  year  thereafter.   Beginning  with January of the year
10    1972, such increases shall be at the rate of 2%  in  lieu  of
11    the aforesaid specified 1 1/2%, and beginning with January of
12    the  year  1984  such  increases  shall be at the rate of 3%.
13    Beginning in January of 1999, such increases shall be at  the
14    rate   of  3%  of  the  currently  payable  monthly  annuity,
15    including  any  increases  previously  granted   under   this
16    Article.   An  employee who retires on annuity after December
17    31, 1959 and before January 1, 1987, but before age 60, shall
18    receive such increases beginning in January of the year after
19    the year in which he attains age 60.
20        An employee who retires from service on or after  January
21    1,  1987 shall, upon the first annuity payment date following
22    the first anniversary of the date of retirement, or upon  the
23    first  annuity  payment  date following attainment of age 60,
24    whichever occurs later,  have  his  then  fixed  and  payable
25    monthly  annuity  increased  by 3%, and such annuity shall be
26    increased by an additional 3% of the original  fixed  annuity
27    on  the same date each year thereafter.  Beginning in January
28    of 1999, such increases shall be at the rate  of  3%  of  the
29    currently  payable  monthly  annuity, including any increases
30    previously granted under this Article.
31        (a-5)  Notwithstanding the provisions of subsection  (a),
32    upon  the  first annuity payment date following (1) the third
33    anniversary of retirement, (2) the attainment of age  53,  or
34    (3)  January  1,  2002,  the date 60 days after the effective
 
                            -43-     LRB093 02820 LRD 20148 a
 1    date of this amendatory Act of  the  92nd  General  Assembly,
 2    whichever  occurs  latest, the monthly annuity of an employee
 3    who retires on annuity prior to the attainment of age 60  and
 4    who  has  not received an increase under subsection (a) shall
 5    be increased by 3%, and the such annuity shall  be  increased
 6    by  an  additional 3% of the current payable monthly annuity,
 7    including any such increases previously  granted  under  this
 8    Article,   on  the  same  date  each  year  thereafter.   The
 9    increases provided under this subsection are in lieu  of  the
10    increases provided in subsection (a).
11        (a-6)  Notwithstanding  the provisions of subsections (a)
12    and (a-5), for all calendar years following the year in which
13    this amendatory  Act  of  the  93rd  General  Assembly  takes
14    effect,  an increase in annuity under this Section that would
15    otherwise take effect at  any  time  during  the  year  shall
16    instead take effect in January of that year.
17        (b)  Subsections  (a),  and  (a-5),  and  (a-6)  are  not
18    applicable  to  an  employee  retiring  and  receiving a term
19    annuity, as herein defined, nor to  any  otherwise  qualified
20    employee  who  retires before he makes employee contributions
21    (at the 1/2 of 1% rate as provided  in  this  Act)  for  this
22    additional  annuity  for  not less than the equivalent of one
23    full year.  Such employee, however, shall make arrangement to
24    pay to the fund a balance of such 1/2  of  1%  contributions,
25    based  on  his  final  salary,  as  will bring such 1/2 of 1%
26    contributions, computed without interest, to  the  equivalent
27    of or completion of one year's contributions.
28        Beginning   with   January,  1960,  each  employee  shall
29    contribute by means of salary deductions 1/2 of  1%  of  each
30    salary  payment,  concurrently  with  and  in addition to the
31    employee contributions otherwise made for annuity purposes.
32        Each such additional contribution shall be credited to an
33    account in the prior service annuity  reserve,  to  be  used,
34    together  with  city contributions, to defray the cost of the
 
                            -44-     LRB093 02820 LRD 20148 a
 1    specified annuity increments. Any balance in such account  at
 2    the  beginning  of  each calendar year shall be credited with
 3    interest at the rate of 3% per annum.
 4        Such   additional   employee   contributions   are    not
 5    refundable,  except  to an employee who withdraws and applies
 6    for refund under this Article, and  in  cases  where  a  term
 7    annuity  becomes  payable.  In  such  cases his contributions
 8    shall be refunded, without  interest,  and  charged  to  such
 9    account in the prior service annuity reserve.
10    (Source:  P.A.  92-599,  eff.  6-28-02;  92-609, eff. 7-1-02;
11    revised 8-26-02.)

12        (40 ILCS 5/8-138.4 new)
13        Sec. 8-138.4.  Early retirement incentive.
14        (a)  To be eligible for the  benefits  provided  in  this
15    Section, an employee must:
16             (1)  be a current contributor to the Fund who (i) on
17        October  15,  2003,  is  in  active  payroll status as an
18        employee; (ii) returns to active payroll status  from  an
19        approved  leave of absence prior to December 15, 2003; or
20        (iii) on October 15, 2003, is receiving ordinary or  duty
21        disability benefits under Section 8-160 or 8-161;
22             (2)  have not previously retired under this Article;
23             (3)  file with the Board before December 15, 2003, a
24        written election requesting the benefits provided in this
25        Section;
26             (4)  withdraw  from service on or after December 31,
27        2003 and on or before  January  31,  2004  (or  the  date
28        established under subsection (a-5), if applicable); and
29             (5)  by  the  date  of  withdrawal or by January 31,
30        2004, whichever is earlier, have attained age 50 with  at
31        least  10  years  of  creditable  service  in  this Fund,
32        without  including  any  creditable  service  established
33        under this Section, and a total of at least  70  combined
 
                            -45-     LRB093 02820 LRD 20148 a
 1        years  of  age  and creditable service, without including
 2        any creditable service established under this Section, in
 3        one or  more  of  the  participating  systems  under  the
 4        Retirement Systems Reciprocal Act.
 5        A  person  is  not  eligible for the benefits provided in
 6    this  Section  if  the  person  (i)  elects  to  receive  the
 7    alternative annuity for city officers under Section  8-243.2,
 8    or  (ii)  elects  to  receive a retirement annuity calculated
 9    under the alternative formula formerly set forth  in  Section
10    20-122.
11        (a-5)  To   ensure   that   the  efficient  operation  of
12    employers under  this  Article  is  not  jeopardized  by  the
13    simultaneous   retirement   of   large  numbers  of  critical
14    personnel, each employer may,  for  its  critical  employees,
15    extend   the   January  31,  2004  deadline  for  terminating
16    employment under  this  Article  established  in  subdivision
17    (a)(4)  of  this  Section  to a date not later than April 30,
18    2004 by so notifying the Fund by December 31, 2003.
19        (b)  An eligible employee may establish up to 5 years  of
20    creditable  service  under this Section, in increments of one
21    month, by making the contributions  specified  in  subsection
22    (d).   In  addition,  for  each  month  of creditable service
23    established under this Section, a person's age at  retirement
24    shall  be  deemed  to be one month older than it actually is,
25    except for determination of eligibility for automatic  annual
26    increases  under  Sections 8-137 and 8-137.1. Furthermore, an
27    eligible employee must establish at least the amount  of  age
28    and  creditable service necessary to bring his or her age and
29    total creditable service, including  service  in  this  Fund,
30    service established under this Section, and service in any of
31    the  other participating systems under the Retirement Systems
32    Reciprocal  Act,  to  a  minimum  that   will   satisfy   the
33    requirements of Section 8-138.
34        The creditable service under this Section may be used for
 
                            -46-     LRB093 02820 LRD 20148 a
 1    all  purposes  under  this Article and the Retirement Systems
 2    Reciprocal Act, except for the computation of average  annual
 3    salary   and   the  determination  of  salary,  earnings,  or
 4    compensation under this or any other Article of this Code.
 5        (c)  An eligible employee shall be entitled to  have  his
 6    or  her  retirement annuity calculated in accordance with the
 7    formula provided in Section 8-138, except  that  the  annuity
 8    shall  not  be  subject to reduction because of withdrawal or
 9    commencement of the annuity before attainment of age 60.
10        (d)  For each month  of  creditable  service  established
11    under  this  Section,  the  employee  must pay to the Fund an
12    employee contribution, to be calculated by the Fund, equal to
13    4.25% of the member's monthly  salary  rate  on  October  15,
14    2003.   The employee may elect to pay the entire contribution
15    before the  retirement  annuity  commences,  or  to  have  it
16    deducted  from  the  annuity over a period not longer than 24
17    months.  If the retired employee dies before the contribution
18    has been  paid  in  full,  the  unpaid  installments  may  be
19    deducted  from  any  annuity  or other benefit payable to the
20    employee's survivors.
21        All employee contributions paid under this Section  shall
22    not  be  deemed  contributions  made by employees for annuity
23    purposes under Section 8-173, and shall be made and  credited
24    to   a   special   reserve,   without   interest.    Employee
25    contributions paid under this Section may be  refunded  under
26    the  same  terms  and  conditions  as are applicable to other
27    employee contributions for retirement annuity.
28        (e)  Notwithstanding  Section  8-165,  an  annuitant  who
29    reenters  service  under  this  Article  after  receiving   a
30    retirement  annuity  based  on  benefits  provided under this
31    Section thereby forfeits the right  to  continue  to  receive
32    those  benefits, and shall have his or her retirement annuity
33    recalculated at the appropriate  time  without  the  benefits
34    provided in this Section.
 
                            -47-     LRB093 02820 LRD 20148 a
 1        (40 ILCS 5/8-138.5 new)
 2        Sec.  8-138.5.  Early  retirement incentive for employees
 3    who have earned maximum pension benefits.
 4        (a)  A person who is eligible for the  benefits  provided
 5    under Section 8-138.4 and who, if he or she had retired on or
 6    before  January  31,  2004,  would  have  been  entitled to a
 7    pension equal to 80% of his or  her  highest  average  annual
 8    salary  for  any 4 consecutive years within the last 10 years
 9    of service immediately preceding  January  31,  2004  without
10    receiving  the  benefits  provided  in  Section  8-138.4, may
11    elect, by filing written election with the Fund  by  December
12    15,  2003,  to receive a lump sum from the Fund equal to 100%
13    of his or her salary on January  31,  2004  or  the  date  of
14    withdrawal,  whichever  is earlier. To be eligible to receive
15    the benefit provided under  this  Section,  the  person  must
16    withdraw from service on or after December 31, 2003 and on or
17    before  January  31,  2004  (or  the  date  established under
18    subsection (b),  if  applicable).   If  a  person  elects  to
19    receive  the  benefit provided under this Section, his or her
20    retirement annuity  otherwise  payable  under  Section  8-138
21    shall  be  reduced  by  an  amount  equal  to  the  actuarial
22    equivalent of the lump sum.
23        (b)  To  ensure that the efficient operation of employers
24    under this Article is not  jeopardized  by  the  simultaneous
25    retirement  of  large  numbers  of  critical  personnel, each
26    employer may, for its critical employees, extend the  January
27    31,  2004  deadline  for  terminating  employment  under this
28    Article established in subdivision (a) of this Section  to  a
29    date  not  later than April 30, 2004 by so notifying the Fund
30    by December 31, 2003.

31        (40 ILCS 5/8-150.1) (from Ch. 108 1/2, par. 8-150.1)
32        Sec. 8-150.1.  Minimum annuities for  widows.  The  widow
33    (otherwise  eligible for widow's annuity under other Sections
 
                            -48-     LRB093 02820 LRD 20148 a
 1    of this Article 8) of an employee hereinafter described,  who
 2    retires  from service or dies while in the service subsequent
 3    to the effective date of this amendatory provision,  and  for
 4    which  widow  the amount of widow's annuity and widow's prior
 5    service annuity combined, fixed or provided  for  such  widow
 6    under  other  provisions  of  this  Article  is less than the
 7    amount provided in this Section, shall, from  and  after  the
 8    date  her  otherwise provided annuity would begin, in lieu of
 9    such otherwise provided widow's  and  widow's  prior  service
10    annuity,  be  entitled  to  the following indicated amount of
11    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  the
24    age  of  60  or  more  years on such date if the death occurs
25    before July 1, 1990, or age 55 or more if the death occurs on
26    or after July 1, 1990, or age 50 or more if the death  occurs
27    on  or  after  January  1, 1998 and the employee is age 50 or
28    over with at least 30 years of service or age 55 or over with
29    at  least  25  years  of  service.  Except  as  provided   in
30    subsection  (k),  this  widow's  annuity  shall not, however,
31    exceed the sum of $500 a month if  the  employee's  death  in
32    service  occurs before January 23, 1987.  The widow's annuity
33    shall not be limited  to  a  maximum  dollar  amount  if  the
34    employee's  death  in  service occurs on or after January 23,
 
                            -49-     LRB093 02820 LRD 20148 a
 1    1987.
 2        If the employee dies in service before July 1, 1990,  and
 3    if  such  widow of such described employee shall not be 60 or
 4    more years of age on such date of death, the amount  provided
 5    in the immediately preceding paragraph for a widow 60 or more
 6    years  of  age,  shall, in the case of such younger widow, be
 7    reduced by 0.25% for each month that her then attained age is
 8    less than 60 years if the employee was born before January 1,
 9    1936 or dies in service on or after January 1,  1988,  or  by
10    0.5%  for  each month that her then attained age is less than
11    60 years if the employee was born on or after  July  1,  1936
12    and dies in service before January 1, 1988.
13        If the employee dies in service on or after July 1, 1990,
14    and  if  the widow of the employee has not attained age 55 on
15    or before the employee's date of death, the amount  otherwise
16    provided in this subsection (a) shall be reduced by 0.25% for
17    each  month that her then attained age is less than 55 years;
18    except that if the employee  dies  in  service  on  or  after
19    January  1,  1998 at age 50 or over with at least 30 years of
20    service or at age 55 or  over  with  at  least  25  years  of
21    service,  there  shall be no reduction due to the widow's age
22    if she has attained age 50 on or before the  employee's  date
23    of  death,  and  if  the  widow has not attained age 50 on or
24    before the employee's date  of  death  the  amount  otherwise
25    provided in this subsection (a) shall be reduced by 0.25% for
26    each month that her then attained age is less than 50 years.
27        (b)  The widow of any employee who dies subsequent to the
28    date  of  his retirement on annuity, and who so retired on or
29    after the date on which he attained the age  of  60  or  more
30    years  if  retirement  occurs  before  July 1, 1990, or on or
31    after the date on which he  attained  age  55  if  retirement
32    occurs  on  or  after July 1, 1990, with at least 20 years of
33    service, or on or after the date on which he attained age  50
34    if  the  retirement  occurs on or after the effective date of
 
                            -50-     LRB093 02820 LRD 20148 a
 1    this amendatory Act  of  1997  with  at  least  30  years  of
 2    service, shall be entitled to an annuity equal to one-half of
 3    the  amount of annuity which her deceased husband received as
 4    of the date of his retirement on  annuity,  conditional  upon
 5    such widow having attained the age of 60 or more years on the
 6    date  of  her  husband's  retirement on annuity if retirement
 7    occurs before July 1, 1990, or age 55 or more  if  retirement
 8    occurs  on  or  after  July 1, 1990, or age 50 or more if the
 9    retirement on annuity occurs on or after January 1, 1998  and
10    the  employee  is  age  50  or over with at least 30 years of
11    service or age 55 or over with at least 25 years of  service.
12    Except  as  provided  in subsection (k), this widow's annuity
13    shall not, however, exceed the sum of $500  a  month  if  the
14    employee's death occurs before January 23, 1987.  The widow's
15    annuity  shall  not  be limited to a maximum dollar amount if
16    the employee's death occurs on or  after  January  23,  1987,
17    regardless  of  the  date  of  retirement;  provided that, if
18    retirement was before  January  23,  1987,  the  employee  or
19    eligible spouse repays the excess spouse refund with interest
20    at  the effective rate from the date of refund to the date of
21    repayment.
22        If the date of the employee's retirement  on  annuity  is
23    before  July  1,  1990,  and  if such widow of such described
24    employee shall not have attained such age of 60 or more years
25    on such date of her  husband's  retirement  on  annuity,  the
26    amount  provided in the immediately preceding paragraph for a
27    widow 60 or more years of age on the date  of  her  husband's
28    retirement  on  annuity,  shall,  in  the  case  of such then
29    younger widow, be reduced by 0.25% for each  month  that  her
30    then  attained age was less than 60 years if the employee was
31    born before January 1, 1936 or withdraws from service  on  or
32    after  January  1,  1988,  or by 0.5% for each month that her
33    then attained age is less than 60 years if the  employee  was
34    born  on  or after January 1, 1936 and withdraws from service
 
                            -51-     LRB093 02820 LRD 20148 a
 1    before January 1, 1988.
 2        If the date of the employee's retirement on annuity is on
 3    or after July 1, 1990, and if the widow of the  employee  has
 4    not  attained age 55 by the date of the employee's retirement
 5    on annuity, the amount otherwise provided in this  subsection
 6    (b)  shall  be  reduced by 0.25% for each month that her then
 7    attained age is less  than  55  years;  except  that  if  the
 8    employee  retires  on  annuity on or after January 1, 1998 at
 9    age 50 or over with at least 30 years of service or at age 55
10    or over with at least 25 years of service, there shall be  no
11    reduction  due  to the widow's age if she has attained age 50
12    on or before the employee's date of death, and if  the  widow
13    has  not  attained age 50 on or before the employee's date of
14    death the amount otherwise provided in  this  subsection  (b)
15    shall  be  reduced  by  0.25%  for  each  month that her then
16    attained age is less than 50 years.
17        (c)  The  foregoing  provisions   relating   to   minimum
18    annuities  for  widows  shall  not  apply to the widow of any
19    former municipal employee receiving an annuity from the  fund
20    on August 9, 1965 or on the effective date of this amendatory
21    provision,  who  re-enters  service  as a municipal employee,
22    unless such employee renders at least 3 years  of  additional
23    service after the date of re-entry.
24        (d)  In computing the amount of annuity which the husband
25    specified  in  the  foregoing  paragraphs (a) and (b) of this
26    Section would have been entitled  to  receive,  or  received,
27    such  amount shall be the annuity to which such husband would
28    have been, or was entitled, before reduction in the amount of
29    his annuity  for  the  purposes  of  the  voluntary  optional
30    reversionary  annuity  provided  for in Section 8-139 of this
31    Article, if such option was elected.
32        (e)  (Blank).
33        (f)  (Blank).
34        (g)  The amendatory provisions of this amendatory Act  of
 
                            -52-     LRB093 02820 LRD 20148 a
 1    1985  relating  to annuity discount because of age for widows
 2    of employees born before January 1, 1936, shall apply only to
 3    qualifying  widows  of  employees  withdrawing  or  dying  in
 4    service on or after July 18, 1985.
 5        (h)  Beginning on January 1, 1999, the minimum amount  of
 6    widow's  annuity  shall  be  $800  per month for life for the
 7    following classes of widows, without regard to the fact  that
 8    the  death  of  the  employee occurred prior to the effective
 9    date of this amendatory Act of 1998:
10             (1)  any widow annuitant alive and receiving a  life
11        annuity  on  the effective date of this amendatory Act of
12        1998, except a reciprocal annuity;
13             (2)  any widow annuitant alive and receiving a  term
14        annuity  on  the effective date of this amendatory Act of
15        1998, except a reciprocal annuity;
16             (3)  any  widow  annuitant  alive  and  receiving  a
17        reciprocal  annuity  on  the  effective  date   of   this
18        amendatory  Act  of 1998, whose employee spouse's service
19        in this fund was at least 5 years;
20             (4)  the widow of an employee with at least 10 years
21        of service in this fund who dies after retirement, if the
22        retirement occurred prior to the effective date  of  this
23        amendatory Act of 1998;
24             (5)  the widow of an employee with at least 10 years
25        of  service  in  this  fund who dies after retirement, if
26        withdrawal occurs on or after the effective date of  this
27        amendatory Act of 1998;
28             (6)  the  widow  of  an employee who dies in service
29        with at least 5 years of service in  this  fund,  if  the
30        death in service occurs on or after the effective date of
31        this amendatory Act of 1998.
32        The  increases  granted under items (1), (2), (3) and (4)
33    of this subsection (h) shall not  be  limited  by  any  other
34    Section of this Act.
 
                            -53-     LRB093 02820 LRD 20148 a
 1        (i)  The  widow  of  an  employee  who retired or died in
 2    service on or after January 1, 1985 and before July 1,  1990,
 3    at  age  55  or  older, and with at least 35 years of service
 4    credit,  shall  be  entitled  to  have  her  widow's  annuity
 5    increased, effective January 1, 1991, to an amount  equal  to
 6    50%  of  the  retirement  annuity  that the deceased employee
 7    received on the  date  of  retirement,  or  would  have  been
 8    eligible  to  receive  if he had retired on the day preceding
 9    the date of his death in service, provided that if the  widow
10    had  not  attained  age  60  by  the  date  of the employee's
11    retirement or death in service, the  amount  of  the  annuity
12    shall  be  reduced  by  0.25%  for  each  month that her then
13    attained  age  was  less  than  age  60  if  the   employee's
14    retirement  or  death in service occurred on or after January
15    1, 1988, or by 0.5%  for each month that her attained age  is
16    less  than  age  60  if the employee's retirement or death in
17    service occurred prior to January 1, 1988.  However, in cases
18    where a refund of excess contributions  for  widow's  annuity
19    has  been  paid by the Fund, the increase in benefit provided
20    by this subsection (i) shall be contingent upon repayment  of
21    the  refund  to  the Fund with interest at the effective rate
22    from the date of refund to the date of payment.
23        (j)  If a deceased employee  is  receiving  a  retirement
24    annuity  at  the  time  of  death and that death occurs on or
25    after June 27, 1997, the widow may elect to receive, in  lieu
26    of  any other annuity provided under this Article, 50% of the
27    deceased employee's retirement annuity at the time  of  death
28    reduced  by  0.25% for each month that the widow's age on the
29    date of death is less than 55; except that  if  the  employee
30    dies on or after January 1, 1998 and withdrew from service on
31    or  after  June  27,  1997 at age 50 or over with at least 30
32    years of service or at age 55 or over with at least 25  years
33    of  service,  there  shall be no reduction due to the widow's
34    age if she has attained age 50 on or  before  the  employee's
 
                            -54-     LRB093 02820 LRD 20148 a
 1    date of death, and if the widow has not attained age 50 on or
 2    before  the  employee's  date  of  death the amount otherwise
 3    provided in this subsection (j) shall be reduced by 0.25% for
 4    each month that her age on the date of death is less than  50
 5    years.   However,   in   cases   where  a  refund  of  excess
 6    contributions for widow's annuity has been paid by the  Fund,
 7    the  benefit  provided  by  this subsection (j) is contingent
 8    upon repayment of the refund to the Fund with interest at the
 9    effective rate from  the  date  of  refund  to  the  date  of
10    payment.
11        (k)  For  widows of employees who died before January 23,
12    1987 after retirement on annuity or in service,  the  maximum
13    dollar  amount  limitation  on widow's annuity shall cease to
14    apply, beginning with the first  annuity  payment  after  the
15    effective date of this amendatory Act of 1997; except that if
16    a refund of excess contributions for widow's annuity has been
17    paid by the Fund, the increase resulting from this subsection
18    (k)  shall not begin before the refund has been repaid to the
19    Fund, together with interest at the effective rate  from  the
20    date of the refund to the date of repayment.
21        (l)  In  lieu  of  any  other  annuity  provided  in this
22    Article, an eligible  spouse  of  an  employee  who  dies  in
23    service  on  or  after January 1, 2002 (regardless of whether
24    that death in service occurs prior to at least 60 days  after
25    the  effective  date  of this amendatory Act of the 93rd 92nd
26    General Assembly) with at least 10 years of service shall  be
27    entitled  to an annuity of 50% of the minimum formula annuity
28    earned and accrued to the credit of the employee at the  date
29    of  death.  For  the purposes of this subsection, the minimum
30    formula annuity earned and  accrued  to  the  credit  of  the
31    employee  is  equal  to 2.40% for each year of service of the
32    highest average annual salary for  any  4  consecutive  years
33    within the last 10 years of service immediately preceding the
34    date  of death, up to a maximum of 80% of the highest average
 
                            -55-     LRB093 02820 LRD 20148 a
 1    annual salary.  This annuity shall not be reduced due to  the
 2    age  of  the  employee  or  spouse.  In addition to any other
 3    eligibility requirements under this Article,  the  spouse  is
 4    eligible  for this annuity only if the marriage was in effect
 5    for 10 full years or more.
 6    (Source: P.A. 92-599, eff. 6-28-02.)

 7        (40 ILCS 5/8-167) (from Ch. 108 1/2, par. 8-167)
 8        Sec. 8-167. Restoration of rights. An  employee  who  has
 9    withdrawn  as  a  refund  the  amounts  credited  for annuity
10    purposes, and who (i) re-enters service of the  employer  and
11    serves  for periods comprising at least 90 days 2 years after
12    the date of the last refund paid to him or (ii) has completed
13    at least 2 years of service under a participating system  (as
14    defined  in the Retirement Systems Reciprocal Act) other than
15    this Fund after the date of the last refund, shall  have  his
16    annuity  rights  restored  by  compliance  with the following
17    provisions:
18        (a)  After that 90 day or such 2 year  period,  whichever
19    applies,  he  shall  repay  in  full  to  the  fund, while in
20    service, in full all refunds received, together with interest
21    at the effective rate from the dates of refund to the date of
22    repayment.; or
23        (b)  If  payment  is  not  made  in  a  single  sum,  the
24    repayment may be made  in  installments  by  deductions  from
25    salary  or otherwise in such manner and amounts and manner as
26    the board, by rule,  may  prescribe,  with  interest  at  the
27    effective rate accruing on unpaid balances.; or
28        (c)  If  the  employee  withdraws from service or dies in
29    service before full repayment is made, service  credit  shall
30    be restored in accordance with Section 8-230.3(b).
31        (d)  If    the   employee   repays   the   refund   while
32    participating in a participating system (as  defined  in  the
33    Retirement  Systems Reciprocal Act) other than this Fund, the
 
                            -56-     LRB093 02820 LRD 20148 a
 1    service credit restored  must  be  used  for  a  proportional
 2    annuity  calculated in accordance with the Retirement Systems
 3    Reciprocal Act.  If not so used, the restored service  credit
 4    shall  be  forfeited and the amount of the repayment shall be
 5    refunded, without  interest.  ,  such  rights  shall  not  be
 6    restored,  but the amount, including interest, repaid by him,
 7    but without any further interest otherwise normally credited,
 8    shall be refunded to him or to his widow, or  in  the  manner
 9    provided by the refund provisions of this Article if no widow
10    survives.
11        This  Section  applies  also to any person who received a
12    refund from any annuity and  benefit  fund  or  pension  fund
13    which  was  merged  into  and  superseded  by the annuity and
14    benefit fund  provided  for  in  this  Article  on  or  after
15    December  31,  1959. Upon repayment such person shall receive
16    credit for all annuity purposes in the  annuity  and  benefit
17    fund  provided  for in this Article for the period of service
18    covered by the repayment such refund.
19        The amount of refund repayment is  considered  as  salary
20    deductions  for  age  and service annuity and widow's annuity
21    purposes in the case of a male person. In the latter case the
22    amount of refund repayment is  allocated  in  the  applicable
23    proportion  for age and service and widow's annuity purposes.
24    Such person shall also be credited  with  city  contributions
25    for  age  and  service annuity, and widow's annuity if a male
26    employee, in the amount which would have  been  credited  and
27    accrued  if  such  person  had  been  a  participant  in  and
28    contributor  to  the annuity and benefit fund provided for in
29    this Article during the period of such service on  the  basis
30    of his salary during such period.
31    (Source: P.A. 81-1536.)

32        (40 ILCS 5/8-172) (from Ch. 108 1/2, par. 8-172)
33        Sec.  8-172.  Refunds  -  Transfer of city contributions.
 
                            -57-     LRB093 02820 LRD 20148 a
 1    Whenever any amount is refunded as provided in Sections 8-168
 2    and 8-169, except in the case of a male employee who  becomes
 3    a  widower  while  in  service  after  he becomes age 65, the
 4    amounts to the credit of the male employee from contributions
 5    by the city,  shall  be  transferred  to  the  prior  service
 6    annuity  reserve. Thereafter, except as otherwise provided in
 7    Section 8-172.1, any such amounts shall become  a  credit  to
 8    the city and, with interest thereon at the effective rate, be
 9    used  to reduce the amount which the city would otherwise pay
10    during a succeeding year.
11    (Source: Laws 1963, p. 161.)

12        (40 ILCS 5/8-172.1 new)
13        Sec.  8-172.1.   Transfer  of  city   contributions   for
14    paramedics.
15        (a)  Municipality  credits  computed  and  credited under
16    this Article 8 for all persons who  (1)  accumulated  service
17    credit in this Article 8 fund for service as a paramedic, (2)
18    have  terminated that Article 8 service credit and received a
19    refund of contributions, and  (3)  are  participants  in  the
20    Article  6  fund on the effective date of this amendatory Act
21    of the 93rd General Assembly shall  be  transferred  by  this
22    Article  8  fund to the Article 6 fund together with interest
23    at the rate of 11% per annum,  compounded  annually,  to  the
24    date  of  transfer.   The  city  shall not be responsible for
25    making any additional employer contributions to the  Fund  to
26    replace the amounts transferred under this Section.
27        (b)  Municipality  credits  computed  and  credited under
28    this Article 8 for all persons who  (1)  accumulated  service
29    credit in this Article 8 fund for service as a paramedic, (2)
30    have  terminated that Article 8 service credit and received a
31    refund of contributions, and (3) are not participants in  the
32    Article  6  fund on the effective date of this amendatory Act
33    of the 93rd General Assembly shall be  used  as  provided  in
 
                            -58-     LRB093 02820 LRD 20148 a
 1    Section 8-172.

 2        (40 ILCS 5/8-174) (from Ch. 108 1/2, par. 8-174)
 3        Sec.  8-174.  Contributions for age and service annuities
 4    for present employees and future entrants. (a)  Beginning  on
 5    the  effective  date  and  prior to July 1, 1947, 3 1/4%; and
 6    beginning on July 1, 1947 and prior to July 1, 1953, 5%;  and
 7    beginning July 1, 1953, and prior to January 1, 1972, 6%; and
 8    beginning  January  1,  1972,  6-1/2%  of each payment of the
 9    salary of each present employee and future entrant  shall  be
10    contributed  to  the  fund as a deduction from salary for age
11    and service annuity.
12        Such deductions beginning on the effective date and prior
13    to July 1, 1947 shall be made for a future entrant  while  he
14    is  in  the service until he attains age 65 and for a present
15    employee while he is in  the  service  until  the  amount  so
16    deducted  from  his  salary with the amount deducted from his
17    salary or paid by him  according  to  law  to  any  municipal
18    pension  fund in force on the effective date with interest on
19    both such amounts at 4% per annum equals the sum  that  would
20    have been to his credit from sums deducted from his salary if
21    deductions at the rate herein stated had been made during his
22    entire  service  until he attained age 65 with interest at 4%
23    per annum for the period subsequent to his attainment of  age
24    65.  Such deductions beginning July 1, 1947 shall be made and
25    continued for employees while in the service.
26        (b)  Concurrently   with   each   employee   contribution
27    beginning on the effective date and prior to July 1, 1947 the
28    city shall contribute 5 3/4%; and beginning on July  1,  1947
29    and prior to July 1, 1953, 7%; and beginning July 1, 1953, 6%
30    of each payment of such salary until the employee attains age
31    65.   Notwithstanding any provision of this subsection (b) to
32    the contrary, the city shall not make a contribution for  any
33    credit  established  by  an  employee under subsection (b) of
 
                            -59-     LRB093 02820 LRD 20148 a
 1    Section 8-138.4.
 2        (c)  Each employee contribution made prior  to  the  date
 3    the age and service annuity for an employee is fixed and each
 4    corresponding  city  contribution  shall  be  credited to the
 5    employee and allocated to the account  of  the  employee  for
 6    whose benefit it is made.
 7    (Source: P.A. 81-1536.)

 8        (40 ILCS 5/8-174.1) (from Ch. 108 1/2, par. 8-174.1)
 9        Sec.   8-174.1.   Employer  contributions  on  behalf  of
10    employees.
11        (a)  The employer may make and may incur an obligation to
12    make contributions on behalf of its employees  in  an  amount
13    not to exceed the employee contributions required by Sections
14    8-137,  8-161, 8-174, 8-182 and 8-182.1 for all salary earned
15    after December 31, 1981.  If such employee contributions  are
16    not  made  or an obligation to make such contributions is not
17    incurred by the employer on  behalf  of  its  employees,  the
18    amount  that could have been contributed shall continue to be
19    deducted from salary.  If employee contributions are made  by
20    the  employer  on  behalf  of  its  employees,  they shall be
21    treated  as  employer  contributions   in   determining   tax
22    treatment  under  the  United  States  Internal Revenue Code;
23    however, each city shall continue  to  withhold  Federal  and
24    State  income  taxes based upon these contributions until the
25    Internal Revenue Service or  the  Federal  courts  rule  that
26    pursuant  to  Section  414(h)  of  the United States Internal
27    Revenue Code, these contributions shall not  be  included  as
28    gross  income  of  the  employee  until such time as they are
29    distributed or made available.  The employer may  make  these
30    contributions  on  behalf  of its employees by a reduction in
31    the cash salary of the employee or by  an  offset  against  a
32    future  salary increase or by a combination of a reduction in
33    salary and offset  against  a  future  salary  increase.  The
 
                            -60-     LRB093 02820 LRD 20148 a
 1    employer shall pay these employee contributions from the same
 2    source  of funds used in paying salary to the employee or, if
 3    the employer  is  a  Board  of  Education,  it  may  also  or
 4    alternatively pay such contributions in whole or in part from
 5    the  proceeds  of  the  pension  contribution  liability  tax
 6    authorized by Section 34-60.1 of the School Code, as amended.
 7    If  such a tax is levied with respect to any fiscal year of a
 8    Board of Education, that portion of the contributions  to  be
 9    paid by the Board of Education on behalf of its employees for
10    that fiscal year from the proceeds of such a tax shall not be
11    due  and  payable  into the Fund until the collection, in the
12    calendar year following the calendar year in which such  levy
13    was  made,  of  the  actual  tax  bills  extending the second
14    installment of real estate taxes for the Board  of  Education
15    for  that  calendar  year,  pursuant  to Section 21-30 of the
16    Property Tax Code, and such Board of Education shall  not  be
17    required  to  pay  those  contributions  to  be paid from the
18    proceeds of such a tax into the Fund except as collected from
19    the  extension  of  the  actual  tax   bills.   If   employee
20    contributions  are  made  by  the  employer  on behalf of its
21    employees, they shall be treated for  all  purposes  of  this
22    Article 8, including Section 8-173, in the same manner and to
23    the  same  extent as employee contributions made by employees
24    and   deducted   from   salary;   provided,   however,   that
25    contributions which are made  by  a  Board  of  Education  on
26    behalf  of its employees shall not be treated as a pension or
27    retirement obligation of the Board of Education for  purposes
28    of Section 12 of "An Act in relation to State revenue sharing
29    with local governmental entities", approved July 31, 1969, as
30    amended.   For  purposes of Section 8-173, contributions made
31    by a Board of Education on behalf of its employees  shall  be
32    treated as contributions made by or on behalf of employees to
33    the Fund for the fiscal year for which the Board of Education
34    incurred the obligation to make such contributions.
 
                            -61-     LRB093 02820 LRD 20148 a
 1        (b)  Subject  to  the requirements of federal law and the
 2    rules of the Board, the Fund may allow the employee to  elect
 3    to  have  the  employer  make  on  behalf of the employee the
 4    optional contributions that the employee has elected  to  pay
 5    to  the Fund, and the contributions so made on the employee's
 6    behalf shall be treated as  employer  contributions  for  the
 7    purpose  of  determining federal tax treatment.  The employer
 8    shall make contributions  on  behalf  of  an  employee  by  a
 9    reduction  in  the  cash salary of the employee and shall pay
10    contributions from the same source of funds that is  used  to
11    pay  earnings  of  the  employee.   The  election to have the
12    contributions made on the employee's behalf  is  irrevocable,
13    and the optional contributions may not thereafter be prepaid,
14    by direct payment or otherwise.
15        If  the  provision  authorizing the optional contribution
16    requires payment by a stated date (rather than  the  date  of
17    withdrawal  or retirement), the requirement will be deemed to
18    have been satisfied if (i) on or before the stated  date  the
19    employee  executes  a  valid irrevocable election to have the
20    contributions  made  on  his  or  her   behalf   under   this
21    subsection,  and  (ii)  the  contributions made on his or her
22    behalf are in fact paid  to  the  Fund  as  provided  in  the
23    election.
24        If employee contributions are made by the employer on the
25    employee's  behalf  under  this  subsection,  they  shall  be
26    treated for all purposes of this Article 8, including Section
27    8-173,  in the same manner and to the same extent as optional
28    employee contributions made prior to the  date  made  on  the
29    employee's behalf.
30    (Source: P.A. 88-670, eff. 12-2-94.)

31        (40 ILCS 5/8-192) (from Ch. 108 1/2, par. 8-192)
32        Sec.  8-192.   Board  created. A board of 5 members shall
33    constitute a Board of Trustees authorized to  carry  out  the
 
                            -62-     LRB093 02820 LRD 20148 a
 1    provisions  of  this Article. The board shall be known as the
 2    Retirement Board of the Municipal Employees', Officers',  and
 3    Officials'  Annuity  and Benefit Fund of the city, or for the
 4    sake of brevity may also be known  and  referred  to  as  the
 5    Retirement  Board  of  the  Municipal  Employees' Annuity and
 6    Benefit Fund of such city. The board  shall  consist  of  the
 7    city comptroller, the city treasurer, and 3 members who shall
 8    be employees, to be elected as follows:
 9        Within 30 days after the effective date, the mayor of the
10    city shall arrange for and hold an election.
11        One  employee  shall  be elected for a term ending on the
12    first day in the month of December of  the  first  year  next
13    following  the effective date; one for a term ending December
14    1st of the following year; and  one  for  a  term  ending  on
15    December 1st of the second following year.
16        The city comptroller, with the approval of the board, may
17    appoint  a  designee from among employees of the city who are
18    versed in the affairs of the comptroller's office to  act  in
19    the  absence  of the comptroller on all matters pertaining to
20    administering the provisions of this Article.
21        The  members  of  a  Retirement  Board  of  a   municipal
22    employees',  officers',  and  officials'  annuity and benefit
23    fund holding office in  a  city  at  the  time  this  Article
24    becomes effective, including elective and ex-officio members,
25    shall  continue in office until the expiration of their terms
26    and  until  their  respective  successors  are   elected   or
27    appointed and have qualified.
28        An  employee  member  who  takes  advantage  of the early
29    retirement incentives provided under this amendatory  Act  of
30    the  93rd General Assembly may continue as a member until the
31    end of his or her term.
32    (Source: P.A. 85-964.)

33        (40 ILCS 5/11-133.3 new)
 
                            -63-     LRB093 02820 LRD 20148 a
 1        Sec. 11-133.3.  Early retirement incentive.
 2        (a)  To be eligible for the  benefits  provided  in  this
 3    Section, an employee must:
 4             (1)  be a current contributor to the Fund who (i) on
 5        October  15,  2003,  is  in  active  payroll status as an
 6        employee; (ii) returns to active payroll status  from  an
 7        approved  leave of absence prior to December 15, 2003; or
 8        (iii) on October 15, 2003, is receiving ordinary or  duty
 9        disability benefits under Section 11-155 or 11-156;
10             (2)  have not previously retired under this Article;
11             (3)  file with the Board before December 15, 2003, a
12        written election requesting the benefits provided in this
13        Section;
14             (4)  withdraw  from service on or after December 31,
15        2003 and on or before  January  31,  2004  (or  the  date
16        established under subsection (a-5), if applicable); and
17             (5)  by  the  date  of  withdrawal or by January 31,
18        2004, whichever is earlier, have attained age 50 with  at
19        least  10  years  of  creditable  service  in  this Fund,
20        without  including  any  creditable  service  established
21        under this Section, and a total of at least  70  combined
22        years  of  age  and creditable service, without including
23        any creditable service established under this Section, in
24        one or  more  of  the  participating  systems  under  the
25        Retirement Systems Reciprocal Act.
26        A  person  is  not  eligible for the benefits provided in
27    this Section if the person elects  to  receive  a  retirement
28    annuity calculated under the alternative formula formerly set
29    forth in Section 20-122.
30        (a-5)  To   ensure   that   the  efficient  operation  of
31    employers under  this  Article  is  not  jeopardized  by  the
32    simultaneous   retirement   of   large  numbers  of  critical
33    personnel, each employer may,  for  its  critical  employees,
34    extend   the   January  31,  2004  deadline  for  terminating
 
                            -64-     LRB093 02820 LRD 20148 a
 1    employment under  this  Article  established  in  subdivision
 2    (a)(4)  of  this  Section  to a date not later than April 30,
 3    2004 by so notifying the Fund by December 31, 2003.
 4        (b)  An eligible employee may establish up to 5 years  of
 5    creditable  service  under this Section, in increments of one
 6    month, by making the contributions  specified  in  subsection
 7    (d).   In  addition,  for  each  month  of creditable service
 8    established under this Section, a person's age at  retirement
 9    shall  be  deemed  to be one month older than it actually is,
10    except for determination of eligibility for automatic  annual
11    increases under Sections 11-134.1 and 11-134.3.  Furthermore,
12    an  eligible  employee  must establish at least the amount of
13    age and creditable service necessary to bring his or her  age
14    and total creditable service, including service in this Fund,
15    service established under this Section, and service in any of
16    the  other participating systems under the Retirement Systems
17    Reciprocal  Act,  to  a  minimum  that   will   satisfy   the
18    requirements of Section 11-134.
19        The creditable service under this Section may be used for
20    all  purposes  under  this Article and the Retirement Systems
21    Reciprocal Act, except for the computation of average  annual
22    salary   and   the  determination  of  salary,  earnings,  or
23    compensation under this or any other Article of this Code.
24        (c)  An eligible employee shall be entitled to  have  his
25    or  her  retirement annuity calculated in accordance with the
26    formula provided in Section 11-134, except that  the  annuity
27    shall  not  be  subject to reduction because of withdrawal or
28    commencement of the annuity before attainment of age 60.
29        (d)  For each month  of  creditable  service  established
30    under  this  Section,  the  employee  must pay to the Fund an
31    employee contribution, to be calculated by the Fund, equal to
32    4.25% of the member's monthly  salary  rate  on  October  15,
33    2003.   The employee may elect to pay the entire contribution
34    before the  retirement  annuity  commences,  or  to  have  it
 
                            -65-     LRB093 02820 LRD 20148 a
 1    deducted  from  the  annuity over a period not longer than 24
 2    months.  If the retired employee dies before the contribution
 3    has been  paid  in  full,  the  unpaid  installments  may  be
 4    deducted  from  any  annuity  or other benefit payable to the
 5    employee's survivors.
 6        All employee contributions paid under this Section  shall
 7    not  be  deemed  contributions  made by employees for annuity
 8    purposes under Section 11-169, and shall be made and credited
 9    to  a  special   reserve,   without   interest.      Employee
10    contributions  paid  under this Section may be refunded under
11    the same terms and conditions  as  are  applicable  to  other
12    employee contributions for retirement annuity.
13        (e)  Notwithstanding  Section  11-161,  an  annuitant who
14    reenters  service  under  this  Article  after  receiving   a
15    retirement  annuity  based  on  benefits  provided under this
16    Section thereby forfeits the right  to  continue  to  receive
17    those  benefits, and shall have his or her retirement annuity
18    recalculated at the appropriate  time  without  the  benefits
19    provided in this Section.

20        (40 ILCS 5/11-133.4 new)
21        Sec.  11-133.4.  Early retirement incentive for employees
22    who have earned maximum pension benefits.
23        (a)  A person who is eligible for the  benefits  provided
24    under  Section  11-133.3 and who, if he or she had retired on
25    or before January 31, 2004, would have  been  entitled  to  a
26    pension  equal  to  80%  of his or her highest average annual
27    salary for any 4 consecutive years within the last  10  years
28    of  service  immediately  preceding  January 31, 2004 without
29    receiving the benefits  provided  in  Section  11-133.3,  may
30    elect, by filing a written election with the Fund by December
31    15,  2003,  to receive a lump sum from the Fund equal to 100%
32    of his or her salary on January  31,  2004  or  the  date  of
33    withdrawal,  whichever  is earlier. To be eligible to receive
 
                            -66-     LRB093 02820 LRD 20148 a
 1    the benefit provided under  this  Section,  the  person  must
 2    withdraw from service on or after December 31, 2003 and on or
 3    before  January  31,  2004  (or  the  date  established under
 4    subsection (b),  if  applicable).   If  a  person  elects  to
 5    receive  the  benefit provided under this Section, his or her
 6    retirement annuity otherwise  payable  under  Section  11-134
 7    shall  be  reduced  by  an  amount  equal  to  the  actuarial
 8    equivalent of the lump sum.
 9        (b)  To  ensure that the efficient operation of employers
10    under this Article is not  jeopardized  by  the  simultaneous
11    retirement  of  large  numbers  of  critical  personnel, each
12    employer may, for its critical employees, extend the  January
13    31,  2004  deadline  for  terminating  employment  under this
14    Article established in subdivision (a) of this Section  to  a
15    date  not  later than April 30, 2004 by so notifying the Fund
16    by December 31, 2003.

17        (40 ILCS 5/11-134.1) (from Ch. 108 1/2, par. 11-134.1)
18        Sec. 11-134.1. Automatic increase in annuity.
19        (a)  An employee who  retired  or  retires  from  service
20    after  December  31, 1963, and before January 1, 1987, having
21    attained age 60 or more, shall, in the month  of  January  of
22    the year following the year in which the first anniversary of
23    retirement  occurs,  have  the  amount  of his then fixed and
24    payable monthly annuity increased by 1 1/2%, and  such  first
25    fixed annuity as granted at retirement increased by a further
26    1  1/2%  in  January of each year thereafter.  Beginning with
27    January of the year 1972, such increases shall be at the rate
28    of 2% in lieu of the aforesaid specified  1  1/2%.  Beginning
29    January,  1984,  such  increases  shall be at the rate of 3%.
30    Beginning in January of 1999, such increases shall be at  the
31    rate   of  3%  of  the  currently  payable  monthly  annuity,
32    including  any  increases  previously  granted   under   this
33    Article.   An  employee who retires on annuity after December
 
                            -67-     LRB093 02820 LRD 20148 a
 1    31, 1963 and before January 1, 1987, but  prior  to  age  60,
 2    shall  receive  such  increases beginning with January of the
 3    year immediately following the year in which he  attains  the
 4    age of 60 years.
 5        An  employee who retires from service on or after January
 6    1, 1987 shall, upon the first annuity payment date  following
 7    the  first anniversary of the date of retirement, or upon the
 8    first annuity payment date following attainment  of  age  60,
 9    whichever  occurs  later,  have  his  then  fixed and payable
10    monthly annuity increased by 3%, and such  annuity  shall  be
11    increased  by  an additional 3% of the original fixed annuity
12    on the same date each year thereafter.  Beginning in  January
13    of  1999,  such  increases  shall be at the rate of 3% of the
14    currently payable monthly annuity,  including  any  increases
15    previously granted under this Article.
16        (a-5)  Notwithstanding  the provisions of subsection (a),
17    upon the first annuity payment date following (1)  the  third
18    anniversary  of  retirement, (2) the attainment of age 53, or
19    (3) January 1, 2002, the date 60  days  after  the  effective
20    date  of  this  amendatory  Act of the 92nd General Assembly,
21    whichever occurs latest, the monthly annuity of  an  employee
22    who  retires on annuity prior to the attainment of age 60 and
23    who has not received an increase under subsection  (a)  shall
24    be  increased  by 3%, and the such annuity shall be increased
25    by an additional 3% of the current payable  monthly  annuity,
26    including  any  such  increases previously granted under this
27    Article,  on  the  same  date  each  year  thereafter.    The
28    increases  provided  under this subsection are in lieu of the
29    increases provided in subsection (a).
30        (a-6) Notwithstanding the provisions of  subsections  (a)
31    and (a-5), for all calendar years following the year in which
32    this  amendatory  Act  of  the  93rd  General  Assembly takes
33    effect, an increase in annuity under this Section that  would
34    otherwise  take  effect  at  any  time  during the year shall
 
                            -68-     LRB093 02820 LRD 20148 a
 1    instead take effect in January of that year.
 2        (b)  Subsections  (a),  and  (a-5),  and  (a-6)  are  not
 3    applicable to an  employee  retiring  and  receiving  a  term
 4    annuity,  as  defined  in  this Article, nor to any otherwise
 5    qualified employee who retires  before  he  shall  have  made
 6    employee  contributions (at the 1/2 of 1% rate as hereinafter
 7    provided) for the purposes of this additional annuity for not
 8    less than the equivalent of one full  year.   Such  employee,
 9    however,  shall make arrangement to pay to the fund a balance
10    of such 1/2 of 1% contributions, based on his  final  salary,
11    as  will bring such 1/2 of 1% contributions, computed without
12    interest, to the equivalent of or completion  of  one  year's
13    contributions.
14        Beginning  with the month of January, 1964, each employee
15    shall contribute by means of salary deductions 1/2 of  1%  of
16    each salary payment, concurrently with and in addition to the
17    employee contributions otherwise made for annuity purposes.
18        Each  such  additional  employee  contribution  shall  be
19    credited  to an account in the prior service annuity reserve,
20    to be used, together with city contributions, to  defray  the
21    cost  of  the specified annuity increments. Any balance as of
22    the beginning of each calendar year existing in such  account
23    shall be credited with interest at the rate of 3% per annum.
24        Such  employee  contributions  shall  not  be  subject to
25    refund, except to an employee who resigns  or  is  discharged
26    and  applies for refund under this Article, and also in cases
27    where a term annuity becomes payable.
28        In  such  cases  the  employee  contributions  shall   be
29    refunded   him,   without   interest,   and  charged  to  the
30    aforementioned account in the prior service annuity reserve.
31    (Source: P.A. 92-599,  eff.  6-28-02;  92-609,  eff.  7-1-02;
32    revised 8-26-02.)

33        (40 ILCS 5/11-145.1) (from Ch. 108 1/2, par. 11-145.1)
 
                            -69-     LRB093 02820 LRD 20148 a
 1        Sec. 11-145.1.  Minimum annuities for widows.
 2        The  widow  otherwise  eligible for widow's annuity under
 3    other Sections of this Article 11, of an employee hereinafter
 4    described, who retires from service  or  dies  while  in  the
 5    service  subsequent  to the effective date of this amendatory
 6    provision, and for which widow the amount of widow's  annuity
 7    and widow's prior service annuity combined, fixed or provided
 8    for  such  widow under other provisions of said Article 11 is
 9    less than the amount hereinafter provided  in  this  section,
10    shall, from and after the date her otherwise provided annuity
11    would  begin,  in lieu of such otherwise provided widow's and
12    widow's prior service annuity, be entitled to  the  following
13    indicated amount of annuity:
14        (a)  The  widow of any employee who dies while in service
15    on or after the date on which he attains age 60 if the  death
16    occurs  before July 1, 1990, or on or after the date on which
17    he attains age 55 if the death occurs on  or  after  July  1,
18    1990,  with  at least 20 years of service, or on or after the
19    date on which he attains age 50 if the  death  occurs  on  or
20    after  the effective date of this amendatory Act of 1997 with
21    at least 30 years of service, shall be entitled to an annuity
22    equal to one-half of the amount of annuity which her deceased
23    husband would have been entitled to receive had he  withdrawn
24    from the service on the day immediately preceding the date of
25    his death, conditional upon such widow having attained age 60
26    on  or  before  such  date if the death occurs before July 1,
27    1990, or age 55 if the death occurs on or after July 1, 1990,
28    or age 50 if the death occurs on or after January 1, 1998 and
29    the employee is age 50 or over with  at  least  30  years  of
30    service  or age 55 or over with at least 25 years of service.
31    Except as provided in subsection  (j),  the  widow's  annuity
32    shall  not,  however,  exceed  the sum of $500 a month if the
33    employee's death in service occurs before January  23,  1987.
34    The  widow's annuity shall not be limited to a maximum dollar
 
                            -70-     LRB093 02820 LRD 20148 a
 1    amount if the employee's death in service occurs on or  after
 2    January 23, 1987.
 3        If  the employee dies in service before July 1, 1990, and
 4    if such widow of such described employee shall not be  60  or
 5    more  years of age on such date of death, the amount provided
 6    in the immediately preceding paragraph for a widow 60 or more
 7    years of age, shall, in the case of such  younger  widow,  be
 8    reduced by 0.25% for each month that her then attained age is
 9    less than 60 years if the employee was born before January 1,
10    1936, or dies in service on or after January 1, 1988, or 0.5%
11    for  each  month  that  her then attained age is less than 60
12    years if the employee was born on or after  January  1,  1936
13    and dies in service before January 1, 1988.
14        If the employee dies in service on or after July 1, 1990,
15    and  if  the widow of the employee has not attained age 55 on
16    or before the employee's date of death, the amount  otherwise
17    provided in this subsection (a) shall be reduced by 0.25% for
18    each  month that her then attained age is less than 55 years;
19    except that if the employee  dies  in  service  on  or  after
20    January  1,  1998 at age 50 or over with at least 30 years of
21    service or at age 55 or  over  with  at  least  25  years  of
22    service,  there  shall be no reduction due to the widow's age
23    if she has attained age 50 on or before the  employee's  date
24    of  death,  and  if  the  widow has not attained age 50 on or
25    before the employee's date  of  death  the  amount  otherwise
26    provided in this subsection (a) shall be reduced by 0.25% for
27    each month that her then attained age is less than 50 years.
28        (b)  The widow of any employee who dies subsequent to the
29    date  of  his retirement on annuity, and who so retired on or
30    after the date on which he  attained  age  60  if  retirement
31    occurs  before July 1, 1990, or on or after the date on which
32    he attained age 55 if retirement occurs on or after  July  1,
33    1990,  with  at least 20 years of service, or on or after the
34    date on which he attained age 50 if the retirement occurs  on
 
                            -71-     LRB093 02820 LRD 20148 a
 1    or  after  the  effective date of this amendatory Act of 1997
 2    with at least 30 years of service, shall be  entitled  to  an
 3    annuity  equal to one-half of the amount of annuity which her
 4    deceased husband received as of the date of his retirement on
 5    annuity, conditional upon such widow having attained  age  60
 6    on  or before the date of her husband's retirement on annuity
 7    if retirement occurs before  July  1,  1990,  or  age  55  if
 8    retirement  occurs on or after July 1, 1990, or age 50 if the
 9    retirement on annuity occurs on or after January 1, 1998  and
10    the  employee  is  age  50  or over with at least 30 years of
11    service or age 55 or over with at least 25 years of  service.
12    Except  as  provided  in subsection (j), this widow's annuity
13    shall not, however, exceed the sum of $500  a  month  if  the
14    employee's  death occurs before January 23, 1987. The widow's
15    annuity shall not be limited to a maximum  dollar  amount  if
16    the  employee's  death  occurs  on or after January 23, 1987,
17    regardless of the  date  of  retirement;  provided  that,  if
18    retirement  was  before  January  23,  1987,  the employee or
19    eligible spouse repays the excess spouse refund with interest
20    at the effective rate from the date of refund to the date  of
21    repayment.
22        If  the  date  of the employee's retirement on annuity is
23    before July 1, 1990, and if  such  widow  of  such  described
24    employee shall not have attained such age of 60 or more years
25    on  such  date  of  her  husband's retirement on annuity, the
26    amount provided in the immediately preceding paragraph for  a
27    widow  60  or  more years of age on the date of her husband's
28    retirement on annuity,  shall,  in  the  case  of  such  then
29    younger  widow,  be  reduced by 0.25% for each month that her
30    then attained age was less than 60 years if the employee  was
31    born  before January 1, 1936, or withdraws from service on or
32    after January 1, 1988, or 0.5% for each month that  her  then
33    attained  age was less than 60 years if the employee was born
34    on or after January 1, 1936 and withdraws from service before
 
                            -72-     LRB093 02820 LRD 20148 a
 1    January 1, 1988.
 2        If the date of the employee's retirement on annuity is on
 3    or after July 1, 1990, and if the widow of the  employee  has
 4    not  attained age 55 by the date of the employee's retirement
 5    on annuity, the amount otherwise provided in this  subsection
 6    (b)  shall  be  reduced by 0.25% for each month that her then
 7    attained age is less  than  55  years;  except  that  if  the
 8    employee  retires  on  annuity on or after January 1, 1998 at
 9    age 50 or over with at least 30 years of service or at age 55
10    or over with at least 25 years of service, there shall be  no
11    reduction  due  to the widow's age if she has attained age 50
12    on or before the employee's date of death, and if  the  widow
13    has  not  attained age 50 on or before the employee's date of
14    death the amount otherwise provided in  this  subsection  (b)
15    shall  be  reduced  by  0.25%  for  each  month that her then
16    attained age is less than 50 years.
17        (c)  The  foregoing  provisions   relating   to   minimum
18    annuities  for  widows  shall  not  apply to the widow of any
19    former employee receiving an annuity from the fund on  August
20    2,   1965  or  on  the  effective  date  of  this  amendatory
21    provision, who re-enters service as a former employee, unless
22    such employee renders at least 3 years of additional  service
23    after the date of re-entry.
24        (d)  (Blank).
25        (e)  (Blank).
26        (f)  The  amendments  to  this Section by this amendatory
27    Act of 1985, relating to changing the discount because of age
28    from 1/2 of 1% to 0.25% per month  for  widows  of  employees
29    born  before  January 1, 1936, shall apply only to qualifying
30    widows whose husbands die while in the service  on  or  after
31    August  16, 1985 or withdraw and enter on annuity on or after
32    August 16, 1985.
33        (g)  Beginning on January 1, 1999, the minimum amount  of
34    widow's  annuity  shall  be  $800  per month for life for the
 
                            -73-     LRB093 02820 LRD 20148 a
 1    following classes of widows, without regard to the fact  that
 2    the  death  of  the  employee occurred prior to the effective
 3    date of this amendatory Act of 1998:
 4             (1)  any widow annuitant alive and receiving a  term
 5        annuity  on  the effective date of this amendatory Act of
 6        1998, except a reciprocal annuity;
 7             (2)  any widow annuitant alive and receiving a  life
 8        annuity  on  the effective date of this amendatory Act of
 9        1998, except a reciprocal annuity;
10             (3)  any  widow  annuitant  alive  and  receiving  a
11        reciprocal  annuity  on  the  effective  date   of   this
12        amendatory  Act  of 1998, whose employee spouse's service
13        in this fund was at least 5 years;
14             (4)  the widow of an employee with at least 10 years
15        of service in this fund who dies after retirement, if the
16        retirement occurred prior to the effective date  of  this
17        amendatory Act of 1998;
18             (5)  the widow of an employee with at least 10 years
19        of  service  in  this  fund who dies after retirement, if
20        withdrawal occurs on or after the effective date of  this
21        amendatory Act of 1998;
22             (6)  the  widow  of  an employee who dies in service
23        with at least 5 years of service in  this  fund,  if  the
24        death in service occurs on or after the effective date of
25        this amendatory Act of 1998.
26        The  increases  granted under items (1), (2), (3) and (4)
27    of this subsection (g) shall not  be  limited  by  any  other
28    Section of this Act.
29        (h)  The  widow  of  an  employee  who retired or died in
30    service on or after January 1, 1985 and before July 1,  1990,
31    at  age  55  or  older, and with at least 35 years of service
32    credit,  shall  be  entitled  to  have  her  widow's  annuity
33    increased, effective January 1, 1991, to an amount  equal  to
34    50%  of  the  retirement  annuity  that the deceased employee
 
                            -74-     LRB093 02820 LRD 20148 a
 1    received on the  date  of  retirement,  or  would  have  been
 2    eligible  to  receive  if he had retired on the day preceding
 3    the date of his death in service, provided that if the  widow
 4    had  not  attained  age  60  by  the  date  of the employee's
 5    retirement or death in service, the  amount  of  the  annuity
 6    shall  be  reduced  by  0.25%  for  each  month that her then
 7    attained  age  was  less  than  age  60  if  the   employee's
 8    retirement  or  death in service occurred on or after January
 9    1, 1988, or by 0.5%  for each month that her attained age  is
10    less  than  age  60  if the employee's retirement or death in
11    service occurred prior to January 1, 1988.  However, in cases
12    where a refund of excess contributions  for  widow's  annuity
13    has  been  paid by the Fund, the increase in benefit provided
14    by this subsection (h) shall be contingent upon repayment  of
15    the  refund  to  the Fund with interest at the effective rate
16    from the date of refund to the date of payment.
17        (i)  If a deceased employee  is  receiving  a  retirement
18    annuity  at  the  time  of  death and that death occurs on or
19    after June 27, 1997, the widow may elect to receive, in  lieu
20    of  any other annuity provided under this Article, 50% of the
21    deceased employee's retirement annuity at the time  of  death
22    reduced  by  0.25% for each month that the widow's age on the
23    date of death is less than 55; except that  if  the  employee
24    dies on or after January 1, 1998 and withdrew from service on
25    or  after  June  27,  1997 at age 50 or over with at least 30
26    years of service or at age 55 or over with at least 25  years
27    of  service,  there  shall be no reduction due to the widow's
28    age if she has attained age 50 on or  before  the  employee's
29    date of death, and if the widow has not attained age 50 on or
30    before  the  employee's  date  of  death the amount otherwise
31    provided in this subsection (i) shall be reduced by 0.25% for
32    each month that her age on the date of death is less than  50
33    years.    However,   in   cases  where  a  refund  of  excess
34    contributions for widow's annuity has been paid by the  Fund,
 
                            -75-     LRB093 02820 LRD 20148 a
 1    the  benefit  provided  by  this subsection (i) is contingent
 2    upon repayment of the refund to the Fund with interest at the
 3    effective rate from  the  date  of  refund  to  the  date  of
 4    payment.
 5        (j)  For  widows of employees who died before January 23,
 6    1987 after retirement on annuity or in service,  the  maximum
 7    dollar  amount  limitation  on widow's annuity shall cease to
 8    apply, beginning with the first  annuity  payment  after  the
 9    effective date of this amendatory Act of 1997; except that if
10    a refund of excess contributions for widow's annuity has been
11    paid by the Fund, the increase resulting from this subsection
12    (j)  shall not begin before the refund has been repaid to the
13    Fund, together with interest at the effective rate  from  the
14    date of the refund to the date of repayment.
15        (k)  In  lieu  of  any  other  annuity  provided  in this
16    Article, an eligible  spouse  of  an  employee  who  dies  in
17    service  on  or  after January 1, 2002 (regardless of whether
18    that death in service occurs prior to at least 60 days  after
19    the  effective  date  of this amendatory Act of the 93rd 92nd
20    General Assembly) with at least 10 years of service shall  be
21    entitled  to an annuity of 50% of the minimum formula annuity
22    earned and accrued to the credit of the employee at the  date
23    of  death.   For the purposes of this subsection, the minimum
24    formula annuity earned and  accrued  to  the  credit  of  the
25    employee  is  equal  to 2.40% for each year of service of the
26    highest average annual salary for  any  4  consecutive  years
27    within the last 10 years of service immediately preceding the
28    date  of death, up to a maximum of 80% of the highest average
29    annual salary.  This annuity shall not be reduced due to  the
30    age  of  the  employee  or  spouse.  In addition to any other
31    eligibility requirements under this Article,  the  spouse  is
32    eligible  for this annuity only if the marriage was in effect
33    for 10 full years or more.
34    (Source: P.A. 92-599, eff. 6-28-02.)
 
                            -76-     LRB093 02820 LRD 20148 a
 1        (40 ILCS 5/11-163) (from Ch. 108 1/2, par. 11-163)
 2        Sec. 11-163. Restoration of rights.  An employee who  has
 3    withdrawn  as  a  refund  the  amounts  credited  for annuity
 4    purposes, and who (i) re-enters service of the  employer  and
 5    serves  for periods comprising at least 90 days 2 years after
 6    the date of the last refund paid to him or (ii) has completed
 7    at least 2 years of service under a participating system  (as
 8    defined  in the Retirement Systems Reciprocal Act) other than
 9    this Fund after the date of the last refund, shall  have  his
10    annuity rights restored by making application to the board in
11    writing  for the privilege of re-instating such rights and by
12    compliance with the following provisions:
13             (a)  After that 90 day or 2 year  period,  whichever
14        applies,  he  shall  repay  in full to the Fund, while in
15        service, in full  all  refunds  received,  together  with
16        interest at the effective rate from the application dates
17        of such refund or refunds to the date of repayment.;
18             (b)  If  payment  is  not  made  in  a  single  sum,
19        repayment  may be made in installments by deductions from
20        salary or otherwise, in such manner and  amounts  as  the
21        board,  by  rule,  may  prescribe,  with  interest at the
22        effective rate accruing on the  unpaid  balance  employee
23        may  elect.  The employee shall be credited with interest
24        at the effective rate from the date of  each  installment
25        until full repayment is made.
26             (c)  If  the employee withdraws from service or dies
27        in service before full repayment is made, service  credit
28        shall be restored in accordance with Section 11-221.2(b).
29             (d)  If  the employee withdraws from service or dies
30        in service or during  the  required  90  day  or  2  year
31        period,  any  repayments  made shall be refunded, without
32        interest  thereon  and  in  accordance  with  the  refund
33        provisions of this Article.
34             (e)  If  the  employee  repays  the   refund   while
 
                            -77-     LRB093 02820 LRD 20148 a
 1        participating  in  a  participating system (as defined in
 2        the Retirement Systems Reciprocal Act)  other  than  this
 3        Fund,  the  service  credit  restored  must be used for a
 4        proportional annuity calculated in  accordance  with  the
 5        Retirement  Systems  Reciprocal Act.  If not so used, the
 6        restored service credit shall be forfeited and the amount
 7        of the repayment shall be refunded, without interest.
 8    (Source: Laws 1963, p. 161.)

 9        (40 ILCS 5/11-167) (from Ch. 108 1/2, par. 11-167)
10        Sec. 11-167.  Refunds in lieu of annuity.  In lieu of  an
11    annuity,  an  employee who withdraws, and whose annuity would
12    amount to less than $800  a  month  for  life  may  elect  to
13    receive  a  refund of the total sum accumulated to his credit
14    from employee contributions for annuity purposes.
15        The widow of any employee, eligible for annuity upon  the
16    death of her husband, whose annuity would amount to less than
17    $800  a  month  for  life, may, in lieu of a widow's annuity,
18    elect to receive a refund of  the  accumulated  contributions
19    for annuity purposes, based on the amounts contributed by her
20    deceased   employee  husband,  but  reduced  by  any  amounts
21    theretofore paid to him in the form of an annuity  or  refund
22    out of such accumulated contributions.
23        Accumulated   contributions   shall   mean   the  amounts
24    including  interest  credited  thereon  contributed  by   the
25    employee  for age and service and widow's annuity to the date
26    of his withdrawal  or  death,  whichever  first  occurs,  and
27    including  the accumulations from any amounts contributed for
28    him as salary  deductions  while  receiving  duty  disability
29    benefits;  provided that such amounts contributed by the city
30    after December 31, 1983 while the employee is receiving  duty
31    disability  benefits and amounts credited to the employee for
32    annuity purposes by the fund after December  31,  2000  while
33    the  employee is receiving ordinary disability benefits shall
 
                            -78-     LRB093 02820 LRD 20148 a
 1    not be included.
 2        The acceptance of such refund in lieu of widow's annuity,
 3    on the part of a widow, shall not deprive a child or children
 4    of the right to receive a child's annuity as provided  for in
 5    Sections 11-153 and 11-154 of this Article, and neither shall
 6    the payment of a child's annuity in the case of  such  refund
 7    to  a  widow reduce the amount herein set forth as refundable
 8    to such widow electing a refund in lieu of widow's annuity.
 9    (Source: P.A. 91-887,  eff.  7-6-00;  92-599,  eff.  6-28-02;
10    revised 10-22-02.)

11        (40 ILCS 5/11-170.1) (from Ch. 108 1/2, par. 11-170.1)
12        Sec. 11-170.1. Pickup of employee contributions.
13        (a)  The  employer may pick up the employee contributions
14    required by Sections 11-156, 11-170, 11-174 and 11-175.1  for
15    salary   earned   after   December  31,  1981.   If  employee
16    contributions are not picked up, the amount that  would  have
17    been  picked  up  under  this  amendatory  Act  of 1980 shall
18    continue to be deducted from salary.   If  contributions  are
19    picked  up they shall be treated as employer contributions in
20    determining tax treatment under the  United  States  Internal
21    Revenue   Code;  however,  the  employer  shall  continue  to
22    withhold Federal and state  income  taxes  based  upon  these
23    contributions  until  the  Internal  Revenue  Service  or the
24    Federal courts rule that pursuant to Section  414(h)  of  the
25    United  States  Internal  Revenue  Code,  these contributions
26    shall not be included as gross income of the  employee  until
27    such  time  as  they  are distributed or made available.  The
28    employer shall pay these employee contributions from the same
29    source of funds  which  is  used  in  paying  salary  to  the
30    employee.   The employer may pick up these contributions by a
31    reduction in the cash salary of the employee or by an  offset
32    against  a  future  salary  increase or by a combination of a
33    reduction in  salary  and  offset  against  a  future  salary
 
                            -79-     LRB093 02820 LRD 20148 a
 1    increase.  If employee contributions are picked up they shall
 2    be  treated  for  all  purposes of this Article 11, including
 3    Section 11-169, in the same manner and to the same extent  as
 4    employee contributions made prior to the date picked up.
 5        (b)  Subject  to  the requirements of federal law and the
 6    rules of the Board, the Fund may allow the employee to  elect
 7    to  have the employer pick up the optional contributions that
 8    the employee  has  elected  to  pay  to  the  Fund,  and  the
 9    contributions  so  picked  up  shall  be  treated as employer
10    contributions for the  purpose  of  determining  federal  tax
11    treatment.  The employer shall pick up the contributions by a
12    reduction  in  the  cash salary of the employee and shall pay
13    contributions from the same source of funds that is  used  to
14    pay  earnings  of  the  employee.   The  election to have the
15    contributions picked up  is  irrevocable,  and  the  optional
16    contributions  may  not  thereafter  be  prepaid,  by  direct
17    payment or otherwise.
18        If  the  provision  authorizing the optional contribution
19    requires payment by a stated date (rather than  the  date  of
20    withdrawal  or retirement), the requirement will be deemed to
21    have been satisfied if (i) on or before the stated  date  the
22    employee  executes  a  valid irrevocable election to have the
23    contributions picked up under this subsection, and  (ii)  the
24    picked-up  contributions  are  in  fact  paid  to the Fund as
25    provided in the election.
26        If  employee  contributions  are  picked  up  under  this
27    subsection, they shall be treated for all  purposes  of  this
28    Article  11, including Section 11-169, in the same manner and
29    to the same extent as optional  employee  contributions  made
30    prior to the date picked up.
31    (Source: P.A. 81-1536.)

32        (40 ILCS 5/11-178) (from Ch. 108 1/2, par. 11-178)
33        Sec.  11-178.  Contributions  by  city  for prior service
 
                            -80-     LRB093 02820 LRD 20148 a
 1    annuities and other benefits.
 2        The  city  shall  make  contributions  to  provide  prior
 3    service  and  widow's  prior  service  annuities,  and  other
 4    annuities and benefits, as follows:
 5        1.  To credit  to  the  city  contribution  reserve  such
 6    amounts  required from the city but not contributed by it for
 7    age and service and  prior  service  annuities,  and  widow's
 8    annuities and widows' prior service annuities;
 9        2.   To meet such part of any minimum annuity as shall be
10    in excess of the age and service annuity  and  prior  service
11    annuity, and to meet such part of any minimum widow's annuity
12    in  excess of the amount of widow's annuity and widow's prior
13    service annuity;
14        3.  To provide a sufficient balance in the investment and
15    interest reserve to permit a transfer from  that  reserve  to
16    other  reserves  of  the  fund.  Whenever  the balance of the
17    investment and interest reserve is not sufficient to permit a
18    transfer from that reserve to any  other  reserve,  the  city
19    shall  contribute  sums  sufficient  to  make  possible  such
20    transfer;
21        4.  An amount equal to the difference between (1) the sum
22    produced  by  the  tax levy stated in Section 11--169 and (2)
23    all sums required for the purposes  of  this  Article  11  in
24    accordance  with  the  provisions  of  this Article 11 except
25    those stated in this Section, shall be applied  for  purposes
26    of this Section.
27        Provided  that  if  in  any year such total sums together
28    with all other sums required during such year for  the  other
29    purposes  of  the  fund,  are  in  excess of the total amount
30    contributed by the city during such year, the  sums  required
31    for  purposes  other  than those stated in this section shall
32    first be provided for. The balance shall then be applied  for
33    the purposes stated in this section.
34        All  such  contributions  shall  be credited to the prior
 
                            -81-     LRB093 02820 LRD 20148 a
 1    service annuity reserve. When the  balance  of  this  reserve
 2    equals  its  liabilities  (including in addition to all other
 3    liabilities, the present values of all annuities, present  or
 4    prospective, according to the applicable mortality tables and
 5    rates  of  interest,  but  excluding  any liabilities arising
 6    under Sections 11-133.3 and 11-133.4), the city  shall  cease
 7    to contribute the sum stated in this section.
 8        If annexation of territory and the employment by the city
 9    of  any  person  employed  as  a  city  laborer  in  any such
10    territory at the time  of  annexation,  after  the  city  has
11    ceased   to   contribute   as  herein  provided,  results  in
12    additional liabilities for prior service annuity and  widow's
13    prior service annuity for any such employee, contributions by
14    the city for such purposes shall be resumed.
15        Notwithstanding  any  provision  in  this  Section to the
16    contrary, the city shall not make a contribution  for  credit
17    established  by  an  employee under subsection (b) of Section
18    11-133.3.
19    (Source: Laws 1965, p. 2292.)

20        (40 ILCS 5/11-181) (from Ch. 108 1/2, par. 11-181)
21        Sec. 11-181. Board created.  A board of 8  members  shall
22    constitute  the board of trustees authorized to carry out the
23    provisions of this Article.  The board shall be known as  the
24    Retirement  Board  of  the  Laborers'  and  Retirement  Board
25    Employees'  Annuity  and Benefit Fund of the city.  The board
26    shall consist of 5 persons appointed and 2 employees and  one
27    annuitant elected in the manner hereinafter prescribed.
28        The  appointed members of the board shall be appointed as
29    follows:
30        One member shall be appointed by the comptroller  of  the
31    city,  who  may  be  himself  or  anyone  chosen  from  among
32    employees  of  the  city who are versed in the affairs of the
33    comptroller's office; one member shall be  appointed  by  the
 
                            -82-     LRB093 02820 LRD 20148 a
 1    City  Treasurer  of  the city, who may be himself or a person
 2    chosen from among employees of the city who are versed in the
 3    affairs of the City Treasurer's office; one member  shall  be
 4    an  employee  of  the  city appointed by the president of the
 5    local labor  organization  representing  a  majority  of  the
 6    employees  participating  in the Fund; and 2 members shall be
 7    appointed by the civil service commission or  the  Department
 8    of Personnel of the city from among employees of the city who
 9    are  versed  in the affairs of the civil service commission's
10    office or the Department of Personnel.
11        The member appointed by the comptroller shall hold office
12    for a term ending on December 1st of the first year following
13    the year of appointment. The member  appointed  by  the  City
14    Treasurer shall hold office for a term ending on December 1st
15    of  the  second  year  following the year of appointment. The
16    member appointed by the civil service commission  shall  hold
17    office  for  a  term  ending on the first day in the month of
18    December of the third year following the year of appointment.
19    The  additional  member  appointed  by  the   civil   service
20    commission  under  this  amendatory  Act  of  1998 shall hold
21    office for an initial term ending on December  1,  2000,  and
22    the  member  appointed  by  the  labor organization president
23    shall hold office for an initial term ending on  December  1,
24    2001.   Thereafter  each appointive member shall be appointed
25    by the officer or body that appointed his predecessor, for  a
26    term of 3 years.
27        The  2  employee members of the board shall be elected as
28    follows:
29        Within 30 days from and after the appointive members have
30    been appointed and have  qualified,  the  appointive  members
31    shall arrange for and hold an election.
32        One  employee  shall  be  elected  for  a  term ending on
33    December 1st of the first year next following  the  effective
34    date;  one for a term ending on December 1st of the following
 
                            -83-     LRB093 02820 LRD 20148 a
 1    year.
 2        An employee member  who  takes  advantage  of  the  early
 3    retirement  incentives  provided under this amendatory Act of
 4    the 93rd General Assembly may continue as a member until  the
 5    end of his or her term.
 6        The  initial  annuitant  member shall be appointed by the
 7    other members of the board for  an  initial  term  ending  on
 8    December  1, 1999. The annuitant member elected in 1999 shall
 9    be deemed to have been elected for a 3-year  term  ending  on
10    December  1,  2002. Thereafter, the annuitant member shall be
11    elected for a 3-year term ending on December 1st of the third
12    year following the election.
13    (Source: P.A. 90-766, eff. 8-14-98; 91-887, eff. 7-6-00.)

14        (40 ILCS 5/12-133) (from Ch. 108 1/2, par. 12-133)
15        Sec. 12-133.  Fixed benefit retirement annuity.
16        (a)  Subject to the provisions of paragraph (b)  of  this
17    Section,   the   retirement  annuity  for  any  employee  who
18    withdraws from service on or after January 1, 1983 and before
19    January 1, 1990, at age 60 or over, having at least  4  years
20    of  service, shall be 1.70% for each of the first 10 years of
21    service; 2.00% for each of the  next  10  years  of  service;
22    2.40%  for  each  year  of  service  in  excess of 20 but not
23    exceeding 30; and 2.80% for each year of service in excess of
24    30, with a pro-rated amount for service of less than  a  full
25    year,  based upon the highest average annual salary for any 4
26    consecutive  years  within  the  last  10  years  of  service
27    immediately preceding the date of withdrawal, provided  that:
28    (1)  if  retirement of the employee occurs below age 60, such
29    annuity shall be reduced 1/2 of 1% for each month or fraction
30    thereof that the employee's age is less than 60, except  that
31    an  employee retiring at age 55 or over but less than age 60,
32    having at least 35 years of service, shall not be subject  to
33    the reduction in his retirement annuity because of retirement
 
                            -84-     LRB093 02820 LRD 20148 a
 1    below  age  60;  (2) the annuity shall not exceed 75% of such
 2    average  annual  salary;  (3)  the  actual  salary  shall  be
 3    considered in the computation of this annuity.
 4        The retirement annuity for  any  employee  who  withdraws
 5    from  service  on  or  after  January  1,  1990  and prior to
 6    December 31, 2003 at age 50 or over with at least 10 years of
 7    service, or at age 60 or  over  with  at  least  4  years  of
 8    service,  shall  be  1.90%  for each of the first 10 years of
 9    service, 2.20% for each of the  next  10  years  of  service,
10    2.40% for each of the next 10 years of service, and 2.80% for
11    each year of service in excess of 30, with a pro-rated amount
12    for  service of less than a full year, based upon the highest
13    average annual salary for any 4 consecutive years within  the
14    last  10  years  of service immediately preceding the date of
15    withdrawal, provided that:
16             (1)  if retirement of the employee occurs below  age
17        60, such annuity shall be reduced 1/4 of 1% (1/2 of 1% in
18        the  case  of  withdrawal  from service before January 1,
19        1991)  for  each  month  or  fraction  thereof  that  the
20        employee's age is less than 60, except that  an  employee
21        retiring  at  age  50 or over having at least 30 years of
22        service  shall  not  be  subject  to  the  reduction   in
23        retirement annuity because of retirement below age 60;
24             (2)  the  annuity  shall  not  exceed  80%  of  such
25        average annual salary; and
26             (3)  the  actual  salary  shall be considered in the
27        computation of this annuity.
28        An employee  who  withdraws  from  service  on  or  after
29    December  31,  2003, at age 50 or over with at least 10 years
30    of service or at age 60 or over with  at  least  4  years  of
31    service,  shall  receive,  in  lieu  of  any other retirement
32    annuity provided for in this Section,  a  retirement  annuity
33    calculated  as  follows: for each year of service immediately
34    preceding the  date  of  withdrawal,  2.40%  of  the  highest
 
                            -85-     LRB093 02820 LRD 20148 a
 1    average  annual salary for any 4 consecutive years within the
 2    last 10 years of service immediately preceding  the  date  of
 3    withdrawal, with a prorated amount for service of less than a
 4    full year, provided that:
 5             (1)  if  retirement of the employee occurs below age
 6        60, such annuity shall be reduced  1/4  of  1%  for  each
 7        month or fraction thereof that the employee's age is less
 8        than  60,  except  that an employee retiring at age 50 or
 9        over having at least 30 years of  service  shall  not  be
10        subject to the reduction in retirement annuity because of
11        retirement below age 60;
12             (2)  the  annuity  shall  not  exceed  80%  of  such
13        average annual salary; and
14             (3)  the  actual  salary  shall be considered in the
15        computation of this annuity.
16        Notwithstanding  any  other  formula,  the  annuity   for
17    employees  retiring  on or after December 31, 2003 and before
18    January 31, 2004 with at least 30 years of service  shall  be
19    80%  of  average  annual  salary  for any 4 consecutive years
20    within the last 10 years of service immediately preceding the
21    date of withdrawal.
22        (b)  In lieu of the retirement  annuity  provided  as  an
23    actuarial   equivalent   of   the  total  accumulations  from
24    contributions by the employee, contributions by the employer,
25    and prior service annuity plus regular interest, an  employee
26    in  service  prior  to  July 1, 1971 shall be entitled to the
27    largest  applicable  retirement  annuity  provided  in   this
28    Section  if  the  same is larger than the annuity provided in
29    other Sections of this Article.
30        (c)  The following schedule shall govern the  computation
31    of  service  for the fixed benefit annuities provided by this
32    Section: Service during 9 months or more  during  any  fiscal
33    year  shall  constitute  a  year  of  service; 6 to 8 months,
34    inclusive, 3/4 of a year; 3 to 5 months, inclusive, 1/2 year;
 
                            -86-     LRB093 02820 LRD 20148 a
 1    less than 3 months, 1/4 of a year; 15 days  or  more  in  any
 2    month, a month of service.
 3        (d)  The other provisions of this Section shall not apply
 4    in  the  case  of  any  former  employee  who  is receiving a
 5    retirement annuity from the fund and who re-enters service as
 6    an employee, unless the employee renders from and  after  the
 7    date of re-entry, at least 3 years of additional service.
 8    (Source: P.A. 86-272; 86-1488; 87-794.)

 9        (40 ILCS 5/12-133.6 new)
10        Section. 12-133.6.  Early retirement incentive.
11        (a)  To  be  eligible  for  the benefits provided in this
12    Section, a person must:
13             (1)  have been, on November 1, 2003, an employee (i)
14        contributing to the Fund in active payroll  status  in  a
15        position of employment under this Article, (ii) returning
16        to  active  payroll  status  from  an  approved  leave of
17        absence prior to December 1,  2003,  or  (iii)  receiving
18        ordinary   or  duty  disability  benefits  under  Section
19        12-140, 12-142, or 12-143;
20             (2)  have not previously retired under this Article;
21             (3)  file with the Board before December 31, 2003  a
22        written election requesting the benefits provided in this
23        Section;
24             (4)  withdraw  from service on or after December 31,
25        2003 and on or before January 31, 2004; and
26             (5)  have, by the date of withdrawal or  by  January
27        31,  2004,  whichever is earlier, attained age 50 with at
28        least 10 years of  creditable  service  in  one  or  more
29        participating   systems   under  the  Retirement  Systems
30        Reciprocal Act, without including any creditable  service
31        established under this Section.
32        (b)  An  eligible  person  may establish up to 5 years of
33    creditable service under this Section, in increments  of  one
 
                            -87-     LRB093 02820 LRD 20148 a
 1    month,  by  making  the contributions specified in subsection
 2    (c). In  addition,  for  each  month  of  creditable  service
 3    established  under this Section, a person's age at retirement
 4    shall be deemed to be one month older than  it  actually  is,
 5    except  for  purposes  of  determining  age under item (5) of
 6    subsection (a).
 7        The creditable service established under this Section may
 8    be  used  for  all  purposes  under  this  Article  and   the
 9    Retirement Systems Reciprocal Act, except for the computation
10    of  highest average annual salary under Section 12-133 or the
11    determination of salary under this or any  other  Article  of
12    this Code.
13        (c)  For  each  month  of  creditable service established
14    under this Section, the  person  must  pay  to  the  Fund  an
15    employee  contribution to be determined by the Fund, equal to
16    4.50% of the person's monthly salary  rate  on  the  date  of
17    withdrawal  from  service.  Subject  to  the  requirements of
18    subsection (d), the person may  elect  to  pay  the  required
19    employee contribution before the retirement annuity commences
20    or  through  deductions  from  the  retirement annuity over a
21    period not longer than 24 months.
22        If a person who retires dies before all payments  of  the
23    employee  contribution have been made, the remaining payments
24    shall be deducted from any survivor or death benefits payable
25    to the employee's surviving spouse or beneficiary.
26        Notwithstanding any provision  in  this  Article  to  the
27    contrary,  all employee contributions paid under this Section
28    shall not be deemed employee contributions for the purpose of
29    determining   the   tax   levy    under    Section    12-149.
30    Notwithstanding   any   provision  in  this  Article  to  the
31    contrary, the employer shall not make a contribution for  any
32    credit  established  by  an  employee under subsection (b) of
33    this Section.  Employee contributions made under this Section
34    may be refunded under the same terms and conditions as  other
 
                            -88-     LRB093 02820 LRD 20148 a
 1    employee contributions under this Article.
 2        (d)  A  person  who  retires under the provisions of this
 3    Section shall be entitled  to  have  his  or  her  retirement
 4    annuity  calculated  under  the provisions of Section 12-133,
 5    except that the retirement annuity shall not  be  subject  to
 6    reduction for retirement under age 60.
 7        (e)  Notwithstanding  Section  12-146 of this Article, an
 8    annuitant who  reenters  service  under  this  Article  after
 9    receiving  a  retirement annuity based on additional benefits
10    provided under this Section thereby  forfeits  the  right  to
11    continue  to  receive those benefits, and upon again retiring
12    shall have his or her retirement annuity recalculated at  the
13    appropriate  time without the additional benefits provided in
14    this Section.

15        (40 ILCS 5/12-133.7 new)
16        Sec. 12-133.7.  Early retirement incentive for  employees
17    who  have  earned  maximum pension benefits.  A person who is
18    eligible for the benefits provided under Section 12-133.6 and
19    who, if he or she had retired on or before January 31,  2004,
20    would  have been entitled to a pension equal to 80% of his or
21    her highest average salary for any 4 consecutive years within
22    the last 10 years of service  immediately  preceding  January
23    31,  2004  without receiving the benefits provided in Section
24    12-133.6 may elect, by filing a  written  election  with  the
25    Fund  by  December  31,  2003, to receive a lump sum from the
26    Fund on his or her last day of employment equal  to  100%  of
27    his  or her salary for the year ending on January 31, 2004 or
28    the date of withdrawal, whichever is earlier. To be  eligible
29    to  receive  the  benefit  provided  under  this Section, the
30    person must withdraw from service on or  after  December  31,
31    2003 and on or before January 31, 2004. If a person elects to
32    receive  the  benefit provided under this Section, his or her
33    retirement annuity otherwise  payable  under  Section  12-133
 
                            -89-     LRB093 02820 LRD 20148 a
 1    shall  be  reduced  by  an  amount  equal  to  the  actuarial
 2    equivalent  of  the  lump sum.  If a person elects to receive
 3    the  benefit  provided  under  this  Section,  the  resulting
 4    reduction in retirement annuity under this Section shall  not
 5    affect  the  amount of any widow's service annuity or widow's
 6    prior service annuity under Section 12-135  or  any  optional
 7    reversionary  annuity  for  a  surviving spouse under Section
 8    12-136.1.

 9        (40 ILCS 5/12-149) (from Ch. 108 1/2, par. 12-149)
10        Sec. 12-149. Financing.  The board of park  commissioners
11    of  any  such  park  district  shall  annually levy a tax (in
12    addition to the taxes now authorized by law) upon all taxable
13    property embraced in the district, at the  rate  which,  when
14    added  to  the  employee contributions under this Article and
15    applied to the fund created hereunder, shall be sufficient to
16    provide for the purposes of this Article in  accordance  with
17    the  provisions  thereof.   Such  tax  shall  be  levied  and
18    collected  with  and  in  like manner as the general taxes of
19    such district, and shall not in any event be included  within
20    any  limitations  of rate for general park purposes as now or
21    hereafter provided by law, but shall  be  excluded  therefrom
22    and be in addition thereto.  The amount of such annual tax to
23    and  including  the  year 1977 shall not exceed .0275% of the
24    value, as equalized or assessed by the Department of Revenue,
25    of all taxable property embraced within  the  park  district,
26    provided   that   for  the  year  1978,  and  for  each  year
27    thereafter, the amount of such annual tax shall be at a  rate
28    on  the  dollar of assessed valuation of all taxable property
29    that will produce, when  extended,  for  the  year  1978  the
30    following   sum:   0.825   times   the   amount  of  employee
31    contributions during the fiscal year 1976; for the year 1979,
32    0.85 times the amount of employee  contributions  during  the
33    fiscal year 1977; for the year 1980, 0.90 times the amount of
 
                            -90-     LRB093 02820 LRD 20148 a
 1    employee  contributions  during the fiscal year 1978; for the
 2    year 1981, 0.95 times the amount  of  employee  contributions
 3    during  the  fiscal  year 1979; for the year 1982, 1.00 times
 4    the amount of employee contributions during the  fiscal  year
 5    1980;   for   the   year  1983,  1.05  times  the  amount  of
 6    contributions made on behalf of employees during  the  fiscal
 7    year 1981; and for the year 1984 and each year thereafter, an
 8    amount  equal to 1.10 times the employee contributions during
 9    the fiscal year 2-years prior  to  the  year  for  which  the
10    applicable  tax is levied.  As used in this Section, the term
11    "employee contributions" means contributions by employees for
12    retirement annuity, spouse's annuity, automatic  increase  in
13    retirement annuity, and death benefit.
14        In   respect  to  park  district  employees,  other  than
15    policemen, who are transferred to the employment of a city by
16    virtue of the  "Exchange  of  Functions  Act  of  1957",  the
17    corporate  authorities  of the city shall annually levy a tax
18    upon all taxable property embraced in the city, as  equalized
19    or  assessed  by  the Department of Revenue, at such rate per
20    cent of the value of such property as  shall  be  sufficient,
21    when  added  to the amounts deducted from the salary or wages
22    of such employees, to provide  the  benefits  to  which  such
23    employees,  their  dependents  and beneficiaries are entitled
24    under the provisions of  this  Article.   The  park  district
25    shall  not levy a tax hereunder in respect to such employees.
26    The tax levied by the city under authority  of  this  Article
27    shall  be  in  addition  to  and exclusive of all other taxes
28    authorized by law to be levied by  the  city  for  corporate,
29    annuity fund or other purposes.
30        All  moneys  accruing  from  the  levy  and collection of
31    taxes, pursuant to this section, shall  be  remitted  to  the
32    board  by the employers as soon as they are received. Where a
33    city has levied a tax pursuant to this Section in respect  to
34    park  district  employees  transferred to the employment of a
 
                            -91-     LRB093 02820 LRD 20148 a
 1    city, the treasurer of such city or other authorized  officer
 2    shall  remit the moneys accruing from the levy and collection
 3    of such tax as soon as they are  received.  Such  remittances
 4    shall  be  made  upon  a  pro  rata share basis, whereby each
 5    employer shall pay to the board such employer's proportionate
 6    percentage of each payment of taxes received by it, according
 7    to the ratio which its tax levy for this fund  bears  to  the
 8    total tax levy of such employer.
 9        Should any board of park commissioners included under the
10    provisions  of  this Article be without authority to levy the
11    tax provided in  this  Section  the  corporation  authorities
12    (meaning  the  supervisor, clerk and assessor) of the town or
13    towns for which  such  board  shall  be  the  board  of  park
14    commissioners shall levy such tax.
15        Employer  contributions  to  the  Fund  may be reduced by
16    $5,000,000 for calendar years 2004 and 2005.
17    (Source: P.A. 81-1536.)

18        Section 90.  The State Mandates Act is amended by  adding
19    Section 8.27 as follows:

20        (30 ILCS 805/8.27 new)
21        Sec.  8.27.  Exempt  mandate.  Notwithstanding Sections 6
22    and 8 of this Act, no reimbursement by the State is  required
23    for  the  implementation  of  any  mandate  created  by  this
24    amendatory Act of the 93rd General Assembly.

25        Section  99.  Effective date.  This Act takes effect upon
26    becoming law.".