State of Illinois
2005 and 2006


Introduced 2/15/2005, by Sen. Iris Y. Martinez


40 ILCS 5/7-137   from Ch. 108 1/2, par. 7-137
40 ILCS 5/7-144   from Ch. 108 1/2, par. 7-144

    Amends the IMRF Article of the Illinois Pension Code. Provides that a person who becomes an employee after attaining age 65 may elect not to participate in the Fund for that employment. Provides for continuation of the employee's retirement annuity despite that employment. Effective immediately.

LRB094 04140 AMC 34161 b






SB0305 LRB094 04140 AMC 34161 b

1     AN ACT concerning public employee benefits.
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4     Section 5. The Illinois Pension Code is amended by changing
5 Sections 7-137 and 7-144 as follows:
6     (40 ILCS 5/7-137)  (from Ch. 108 1/2, par. 7-137)
7     Sec. 7-137. Participating and covered employees.
8     (a) The persons described in this paragraph (a) shall be
9 included within and be subject to this Article and eligible to
10 benefits from this fund, beginning upon the dates hereinafter
11 specified:
12         1. Except as to the employees specifically excluded
13     under the provisions of this Article, all persons who are
14     employees of any municipality (or instrumentality thereof)
15     or participating instrumentality on the effective date of
16     participation of the municipality or participating
17     instrumentality beginning upon such effective date.
18         2. Except as to the employees specifically excluded
19     under the provisions of this Article, all persons, who
20     became employees of any participating municipality (or
21     instrumentality thereof) or participating instrumentality
22     after the effective date of participation of such
23     municipality or participating instrumentality, beginning
24     upon the date such person becomes an employee.
25         3. All persons who file notice with the board as
26     provided in paragraph (b) 2 and 3 of this Section,
27     beginning upon the date of filing such notice.
28     (b) The following described persons shall not be considered
29 participating employees eligible for benefits from this fund,
30 but shall be included within and be subject to this Article
31 (each of the descriptions is not exclusive but is cumulative):
32         1. Any person who occupies an office or is employed in



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1     a position normally requiring performance of duty during
2     less than 600 hours a year for a municipality (including
3     all instrumentalities thereof) or a participating
4     instrumentality. If a school treasurer performs services
5     for more than one school district, the total number of
6     hours of service normally required for the several school
7     districts shall be considered to determine whether he
8     qualifies under this paragraph;
9         2. Any person who holds elective office unless he has
10     elected while in that office in a written notice on file
11     with the board to become a participating employee;
12         3. Any person working for a city hospital unless any
13     such person, while in active employment, has elected in a
14     written notice on file with the board to become a
15     participating employee and notification thereof is
16     received by the board;
17         4. Any person who becomes an employee after June 30,
18     1979 as a public service employment program participant
19     under the federal Comprehensive Employment and Training
20     Act and whose wages or fringe benefits are paid in whole or
21     in part by funds provided under such Act;
22         5. Any person who is actively employed by a
23     municipality on its effective date of participation in the
24     Fund if that municipality (i) has at least 35 employees on
25     its effective date of participation; (ii) is located in a
26     county with at least 2,000,000 inhabitants; and (iii)
27     maintains an independent defined benefit pension plan for
28     the benefit of its eligible employees, unless the person
29     files with the board within 90 days after the
30     municipality's effective date of participation an
31     irrevocable election to participate.
32     (b-5) A person who becomes an employee after attaining age
33 65 may elect not to participate in the Fund for that employment
34 by filing written notice with the Fund within 30 days after
35 beginning employment. Employment under this subsection shall
36 not otherwise affect that person's eligibility for benefits



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1 under this Act.
2     (c) Any person electing to be a participating employee,
3 pursuant to paragraph (b) of this Section may not change such
4 election, except as provided in Section 7-137.1.
5     (d) Any employee who occupied the position of school nurse
6 in any participating municipality on August 8, 1961 and
7 continuously thereafter until the effective date of the
8 exercise of the option authorized by this subparagraph, who on
9 August 7, 1961 was a member of the Teachers' Retirement System
10 of Illinois, by virtue of certification by the Department of
11 Registration and Education as a public health nurse, may elect
12 to terminate participation in this Fund in order to
13 re-establish membership in such System. The election may be
14 exercised by filing written notice thereof with the Board or
15 with the Board of Trustees of said Teachers' Retirement System,
16 not later than September 30, 1963, and shall be effective on
17 the first day of the calendar month next following the month in
18 which the notice was filed. If the written notice is filed with
19 such Teachers' Retirement System, that System shall
20 immediately notify this Fund, but neither failure nor delay in
21 notification shall affect the validity of the employee's
22 election. If the option is exercised, the Fund shall notify
23 such Teachers' Retirement System of such fact and transfer to
24 that system the amounts contributed by the employee to this
25 Fund, including interest at 3% per annum, but excluding
26 contributions applicable to social security coverage during
27 the period beginning August 8, 1961 to the effective date of
28 the employee's election. Participation in this Fund as to any
29 credits on or after August 8, 1961 and up to the effective date
30 of the employee's election shall terminate on such effective
31 date.
32     (e) Any participating municipality or participating
33 instrumentality, other than a school district or special
34 education joint agreement created under Section 10-22.31 of the
35 School Code, may, by a resolution or ordinance duly adopted by
36 its governing body, elect to exclude from participation and



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1 eligibility for benefits all persons who are employed after the
2 effective date of such resolution or ordinance and who occupy
3 an office or are employed in a position normally requiring
4 performance of duty for less than 1000 hours per year for the
5 participating municipality (including all instrumentalities
6 thereof) or participating instrumentality except for persons
7 employed in a position normally requiring performance of duty
8 for 600 hours or more per year (i) by such participating
9 municipality or participating instrumentality prior to the
10 effective date of the resolution or ordinance, (ii) by any
11 participating municipality or participating instrumentality
12 prior to January 1, 1982 and (iii) by a participating
13 municipality or participating instrumentality, which had not
14 adopted such a resolution when the person was employed, and the
15 function served by the employee's position is assumed by
16 another participating municipality or participating
17 instrumentality. A participating municipality or participating
18 instrumentality included in and subject to this Article after
19 January 1, 1982 may adopt such resolution or ordinance only
20 prior to the date it becomes included in and subject to this
21 Article. Notwithstanding the foregoing, a participating
22 municipality or participating instrumentality which is formed
23 solely to succeed to the functions of a participating
24 municipality or participating instrumentality shall be
25 considered to have adopted any such resolution or ordinance
26 which may have been applicable to the employees performing such
27 functions. The election made by the resolution or ordinance
28 shall take effect at the time specified in the resolution or
29 ordinance, and once effective shall be irrevocable.
30 (Source: P.A. 93-933, eff. 8-13-04.)
31     (40 ILCS 5/7-144)  (from Ch. 108 1/2, par. 7-144)
32     Sec. 7-144. Retirement annuities-Suspended during
33 employment.
34     (a) (1) If any person described in clause (i) of subsection
35 (a) 2 of Section 7-141 receiving any annuity again becomes an



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1 employee and receives earnings from employment in a position
2 normally requiring performance of duty during 600 hours or more
3 per year for any participating municipality and
4 instrumentalities thereof or participating instrumentality; or
5 (2) if any person described in clause (ii) of subsection (a) 2
6 of Section 7-141 receiving any annuity returns to employment in
7 a position requiring him, or entitling him to elect, to become
8 a participating employee; then the annuity payable to such
9 employee shall be suspended as of the 1st day of the month
10 coincidental with or next following the date upon which such
11 person becomes such an employee. Upon proper qualification of
12 the participating employee payment of such annuity may be
13 resumed on the 1st day of the month following such
14 qualification and upon proper application therefor. The
15 participating employee in such case shall be entitled to a
16 supplemental annuity arising from service and credits earned
17 subsequent to such re-entry as a participating employee.
18     (b) Supplemental annuities to persons who return to service
19 for less than 48 months shall be computed under the provisions
20 of Sections 7-141, 7-142 and 7-143. In determining whether an
21 employee is eligible for an annuity which requires a minimum
22 period of service, his entire period of service shall be taken
23 into consideration but the supplemental annuity shall be based
24 on earnings and service in the supplemental period only. The
25 effective date of the suspended and supplemental annuity for
26 the purpose of increases after retirement shall be considered
27 to be the effective date of the suspended annuity.
28     (c) Supplemental annuities to persons who return to service
29 for 48 months or more shall be a monthly amount determined as
30 follows:
31     (1) An amount shall be computed under subparagraph b of
32 paragraph (1) of subsection (a) of Section 7-142, considering
33 all of the service credits of the employee;
34     (2) The actuarial value in monthly payments for life of the
35 annuity payments made before suspension shall be determined and
36 subtracted from the amount determined in (1) above;



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1     (3) The monthly amount of the suspended annuity, with any
2 applicable increases after retirement computed from the
3 effective date to the date of reinstatement, shall be
4 subtracted from the amount determined in (2) above and the
5 remainder shall be the amount of the supplemental annuity
6 provided that this amount shall not be less than the amount
7 computed under subsection (b) of this Section.
8     (4) The suspended annuity shall be reinstated at an amount
9 including any increases after retirement from the effective
10 date to date of reinstatement.
11     (5) The effective date of the combined suspended and
12 supplemental annuities for the purposes of increases after
13 retirement shall be considered to be the effective date of the
14 supplemental annuity.
15     (d) The provisions of this Section do not apply to
16 employees returning to work after attaining age 65 who elect
17 not to participate in the Fund under subsection (b-5) of
18 Section 7-137.
19 (Source: P.A. 82-459.)
20     Section 99. Effective date. This Act takes effect upon
21 becoming law.