HB2993 EnrolledLRB098 10966 EFG 41588 b

1    AN ACT concerning public employee benefits.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Pension Code is amended by changing
5Sections 1-160, 15-102, 15-111, 15-112, 15-113.6, 15-134,
615-135, 15-136, 15-136.3, 15-139, 15-145, 15-146, 15-146.1,
715-155, 15-157, 15-158.2, 15-159, 15-162, 15-165, 15-168,
815-169, 15-171, 15-172, 15-177, and 16-152 and by adding
9Sections 15-108.1, 15-108.2, 15-139.1, 15-145.1, and 16-106.6
10as follows:
 
11    (40 ILCS 5/1-160)
12    Sec. 1-160. Provisions applicable to new hires.
13    (a) The provisions of this Section apply to a person who,
14on or after January 1, 2011, first becomes a member or a
15participant under any reciprocal retirement system or pension
16fund established under this Code, other than a retirement
17system or pension fund established under Article 2, 3, 4, 5, 6,
1815 or 18 of this Code, notwithstanding any other provision of
19this Code to the contrary, but do not apply to any self-managed
20plan established under this Code, to any person with respect to
21service as a sheriff's law enforcement employee under Article
227, or to any participant of the retirement plan established
23under Section 22-101.

 

 

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1    (b) "Final average salary" means the average monthly (or
2annual) salary obtained by dividing the total salary or
3earnings calculated under the Article applicable to the member
4or participant during the 96 consecutive months (or 8
5consecutive years) of service within the last 120 months (or 10
6years) of service in which the total salary or earnings
7calculated under the applicable Article was the highest by the
8number of months (or years) of service in that period. For the
9purposes of a person who first becomes a member or participant
10of any retirement system or pension fund to which this Section
11applies on or after January 1, 2011, in this Code, "final
12average salary" shall be substituted for the following:
13        (1) In Article Articles 7 (except for service as
14    sheriff's law enforcement employees) and 15, "final rate of
15    earnings".
16        (2) In Articles 8, 9, 10, 11, and 12, "highest average
17    annual salary for any 4 consecutive years within the last
18    10 years of service immediately preceding the date of
19    withdrawal".
20        (3) In Article 13, "average final salary".
21        (4) In Article 14, "final average compensation".
22        (5) In Article 17, "average salary".
23        (6) In Section 22-207, "wages or salary received by him
24    at the date of retirement or discharge".
25    (b-5) Beginning on January 1, 2011, for all purposes under
26this Code (including without limitation the calculation of

 

 

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1benefits and employee contributions), the annual earnings,
2salary, or wages (based on the plan year) of a member or
3participant to whom this Section applies shall not exceed
4$106,800; however, that amount shall annually thereafter be
5increased by the lesser of (i) 3% of that amount, including all
6previous adjustments, or (ii) one-half the annual unadjusted
7percentage increase (but not less than zero) in the consumer
8price index-u for the 12 months ending with the September
9preceding each November 1, including all previous adjustments.
10    For the purposes of this Section, "consumer price index-u"
11means the index published by the Bureau of Labor Statistics of
12the United States Department of Labor that measures the average
13change in prices of goods and services purchased by all urban
14consumers, United States city average, all items, 1982-84 =
15100. The new amount resulting from each annual adjustment shall
16be determined by the Public Pension Division of the Department
17of Insurance and made available to the boards of the retirement
18systems and pension funds by November 1 of each year.
19    (c) A member or participant is entitled to a retirement
20annuity upon written application if he or she has attained age
2167 and has at least 10 years of service credit and is otherwise
22eligible under the requirements of the applicable Article.
23    A member or participant who has attained age 62 and has at
24least 10 years of service credit and is otherwise eligible
25under the requirements of the applicable Article may elect to
26receive the lower retirement annuity provided in subsection (d)

 

 

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1of this Section.
2    (d) The retirement annuity of a member or participant who
3is retiring after attaining age 62 with at least 10 years of
4service credit shall be reduced by one-half of 1% for each full
5month that the member's age is under age 67.
6    (e) Any retirement annuity or supplemental annuity shall be
7subject to annual increases on the January 1 occurring either
8on or after the attainment of age 67 or the first anniversary
9of the annuity start date, whichever is later. Each annual
10increase shall be calculated at 3% or one-half the annual
11unadjusted percentage increase (but not less than zero) in the
12consumer price index-u for the 12 months ending with the
13September preceding each November 1, whichever is less, of the
14originally granted retirement annuity. If the annual
15unadjusted percentage change in the consumer price index-u for
16the 12 months ending with the September preceding each November
171 is zero or there is a decrease, then the annuity shall not be
18increased.
19    (f) The initial survivor's or widow's annuity of an
20otherwise eligible survivor or widow of a retired member or
21participant who first became a member or participant on or
22after January 1, 2011 shall be in the amount of 66 2/3% of the
23retired member's or participant's retirement annuity at the
24date of death. In the case of the death of a member or
25participant who has not retired and who first became a member
26or participant on or after January 1, 2011, eligibility for a

 

 

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1survivor's or widow's annuity shall be determined by the
2applicable Article of this Code. The initial benefit shall be
366 2/3% of the earned annuity without a reduction due to age. A
4child's annuity of an otherwise eligible child shall be in the
5amount prescribed under each Article if applicable. Any
6survivor's or widow's annuity shall be increased (1) on each
7January 1 occurring on or after the commencement of the annuity
8if the deceased member died while receiving a retirement
9annuity or (2) in other cases, on each January 1 occurring
10after the first anniversary of the commencement of the annuity.
11Each annual increase shall be calculated at 3% or one-half the
12annual unadjusted percentage increase (but not less than zero)
13in the consumer price index-u for the 12 months ending with the
14September preceding each November 1, whichever is less, of the
15originally granted survivor's annuity. If the annual
16unadjusted percentage change in the consumer price index-u for
17the 12 months ending with the September preceding each November
181 is zero or there is a decrease, then the annuity shall not be
19increased.
20    (g) The benefits in Section 14-110 apply only if the person
21is a State policeman, a fire fighter in the fire protection
22service of a department, or a security employee of the
23Department of Corrections or the Department of Juvenile
24Justice, as those terms are defined in subsection (b) of
25Section 14-110. A person who meets the requirements of this
26Section is entitled to an annuity calculated under the

 

 

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1provisions of Section 14-110, in lieu of the regular or minimum
2retirement annuity, only if the person has withdrawn from
3service with not less than 20 years of eligible creditable
4service and has attained age 60, regardless of whether the
5attainment of age 60 occurs while the person is still in
6service.
7    (h) If a person who first becomes a member or a participant
8of a retirement system or pension fund subject to this Section
9on or after January 1, 2011 is receiving a retirement annuity
10or retirement pension under that system or fund and becomes a
11member or participant under any other system or fund created by
12this Code and is employed on a full-time basis, except for
13those members or participants exempted from the provisions of
14this Section under subsection (a) of this Section, then the
15person's retirement annuity or retirement pension under that
16system or fund shall be suspended during that employment. Upon
17termination of that employment, the person's retirement
18annuity or retirement pension payments shall resume and be
19recalculated if recalculation is provided for under the
20applicable Article of this Code.
21    If a person who first becomes a member of a retirement
22system or pension fund subject to this Section on or after
23January 1, 2012 and is receiving a retirement annuity or
24retirement pension under that system or fund and accepts on a
25contractual basis a position to provide services to a
26governmental entity from which he or she has retired, then that

 

 

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1person's annuity or retirement pension earned as an active
2employee of the employer shall be suspended during that
3contractual service. A person receiving an annuity or
4retirement pension under this Code shall notify the pension
5fund or retirement system from which he or she is receiving an
6annuity or retirement pension, as well as his or her
7contractual employer, of his or her retirement status before
8accepting contractual employment. A person who fails to submit
9such notification shall be guilty of a Class A misdemeanor and
10required to pay a fine of $1,000. Upon termination of that
11contractual employment, the person's retirement annuity or
12retirement pension payments shall resume and, if appropriate,
13be recalculated under the applicable provisions of this Code.
14    (i) (Blank). Notwithstanding any other provision of this
15Section, a person who first becomes a participant of the
16retirement system established under Article 15 on or after
17January 1, 2011 shall have the option to enroll in the
18self-managed plan created under Section 15-158.2 of this Code.
19    (j) In the case of a conflict between the provisions of
20this Section and any other provision of this Code, the
21provisions of this Section shall control.
22(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11;
2397-609, eff. 1-1-12.)
 
24    (40 ILCS 5/15-102)  (from Ch. 108 1/2, par. 15-102)
25    Sec. 15-102. Terms defined. The terms used in this Article

 

 

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1shall have the meanings ascribed to them in Sections 15-103
2through 15-198 15-132.1, except when the context otherwise
3requires.
4(Source: P.A. 91-357, eff. 7-29-99.)
 
5    (40 ILCS 5/15-108.1 new)
6    Sec. 15-108.1. Tier 1 member. "Tier 1 member": A
7participant or an annuitant of a retirement annuity under this
8Article, other than a participant in the self-managed plan
9under Section 15-158.2, who first became a participant or
10member before January 1, 2011 under any reciprocal retirement
11system or pension fund established under this Code, other than
12a retirement system or pension fund established under Articles
132, 3, 4, 5, 6, or 18 of this Code. "Tier 1 member" includes a
14person who first became a participant under this System before
15January 1, 2011 and who accepts a refund and is subsequently
16reemployed by an employer on or after January 1, 2011.
 
17    (40 ILCS 5/15-108.2 new)
18    Sec. 15-108.2. Tier 2 member. "Tier 2 member": A
19participant under this Article, other than a participant in the
20self-managed plan under Section 15-158.2, who on or after
21January 1, 2011, first becomes a participant or member under
22any reciprocal retirement system or pension fund established
23under this Code.
 

 

 

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1    (40 ILCS 5/15-111)  (from Ch. 108 1/2, par. 15-111)
2    Sec. 15-111. Earnings.
3    (a) "Earnings": An amount paid for personal services equal
4to the sum of the basic compensation plus extra compensation
5for summer teaching, overtime or other extra service. For
6periods for which an employee receives service credit under
7subsection (c) of Section 15-113.1 or Section 15-113.2,
8earnings are equal to the basic compensation on which
9contributions are paid by the employee during such periods.
10Compensation for employment which is irregular, intermittent
11and temporary shall not be considered earnings, unless the
12participant is also receiving earnings from the employer as an
13employee under Section 15-107.
14    With respect to transition pay paid by the University of
15Illinois to a person who was a participating employee employed
16in the fire department of the University of Illinois's
17Champaign-Urbana campus immediately prior to the elimination
18of that fire department:
19        (1) "Earnings" includes transition pay paid to the
20    employee on or after the effective date of this amendatory
21    Act of the 91st General Assembly.
22        (2) "Earnings" includes transition pay paid to the
23    employee before the effective date of this amendatory Act
24    of the 91st General Assembly only if (i) employee
25    contributions under Section 15-157 have been withheld from
26    that transition pay or (ii) the employee pays to the System

 

 

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1    before January 1, 2001 an amount representing employee
2    contributions under Section 15-157 on that transition pay.
3    Employee contributions under item (ii) may be paid in a
4    lump sum, by withholding from additional transition pay
5    accruing before January 1, 2001, or in any other manner
6    approved by the System. Upon payment of the employee
7    contributions on transition pay, the corresponding
8    employer contributions become an obligation of the State.
9    (b) For a Tier 2 member, the annual earnings shall not
10exceed $106,800; however, that amount shall annually
11thereafter be increased by the lesser of (i) 3% of that amount,
12including all previous adjustments, or (ii) one half the annual
13unadjusted percentage increase (but not less than zero) in the
14consumer price index-u for the 12 months ending with the
15September preceding each November 1, including all previous
16adjustments.
17    For the purposes of this Section, "consumer price index u"
18means the index published by the Bureau of Labor Statistics of
19the United States Department of Labor that measures the average
20change in prices of goods and services purchased by all urban
21consumers, United States city average, all items, 1982-84 =
22100. The new amount resulting from each annual adjustment shall
23be determined by the Public Pension Division of the Department
24of Insurance and made available to the boards of the retirement
25systems and pension funds by November 1 of each year.
26(Source: P.A. 91-887, eff. 7-6-00.)
 

 

 

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1    (40 ILCS 5/15-112)  (from Ch. 108 1/2, par. 15-112)
2    Sec. 15-112. Final rate of earnings.
3    "Final rate of earnings":
4    (a) This subsection (a) applies only to a Tier 1 member to
5a person who first becomes a participant of any system before
6January 1, 2011.
7     For an employee who is paid on an hourly basis or who
8receives an annual salary in installments during 12 months of
9each academic year, the average annual earnings during the 48
10consecutive calendar month period ending with the last day of
11final termination of employment or the 4 consecutive academic
12years of service in which the employee's earnings were the
13highest, whichever is greater. For any other employee, the
14average annual earnings during the 4 consecutive academic years
15of service in which his or her earnings were the highest. For
16an employee with less than 48 months or 4 consecutive academic
17years of service, the average earnings during his or her entire
18period of service. The earnings of an employee with more than
1936 months of service prior to the date of becoming a
20participant are, for such period, considered equal to the
21average earnings during the last 36 months of such service.
22    (b) This subsection (b) applies to a Tier 2 member person
23to whom subsection (a) does not apply.
24    For an employee who is paid on an hourly basis or who
25receives an annual salary in installments during 12 months of

 

 

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1each academic year, the average annual earnings obtained by
2dividing by 8 the total earnings of the employee during the 96
3consecutive months in which the total earnings were the highest
4within the last 120 months prior to termination.
5    For any other employee, the average annual earnings during
6the 8 consecutive academic years within the 10 years prior to
7termination in which the employee's earnings were the highest.
8For an employee with less than 96 consecutive months or 8
9consecutive academic years of service, whichever is necessary,
10the average earnings during his or her entire period of
11service.
12    (c) For an employee on leave of absence with pay, or on
13leave of absence without pay who makes contributions during
14such leave, earnings are assumed to be equal to the basic
15compensation on the date the leave began.
16    (d) For an employee on disability leave, earnings are
17assumed to be equal to the basic compensation on the date
18disability occurs or the average earnings during the 24 months
19immediately preceding the month in which disability occurs,
20whichever is greater.
21    (e) For a Tier 1 member participant who retires on or after
22the effective date of this amendatory Act of 1997 with at least
2320 years of service as a firefighter or police officer under
24this Article, the final rate of earnings shall be the annual
25rate of earnings received by the participant on his or her last
26day as a firefighter or police officer under this Article, if

 

 

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1that is greater than the final rate of earnings as calculated
2under the other provisions of this Section.
3    (f) If a Tier 1 member participant to whom subsection (a)
4of this Section applies is an employee for at least 6 months
5during the academic year in which his or her employment is
6terminated, the annual final rate of earnings shall be 25% of
7the sum of (1) the annual basic compensation for that year, and
8(2) the amount earned during the 36 months immediately
9preceding that year, if this is greater than the final rate of
10earnings as calculated under the other provisions of this
11Section.
12    (g) In the determination of the final rate of earnings for
13an employee, that part of an employee's earnings for any
14academic year beginning after June 30, 1997, which exceeds the
15employee's earnings with that employer for the preceding year
16by more than 20 percent shall be excluded; in the event that an
17employee has more than one employer this limitation shall be
18calculated separately for the earnings with each employer. In
19making such calculation, only the basic compensation of
20employees shall be considered, without regard to vacation or
21overtime or to contracts for summer employment.
22    (h) The following are not considered as earnings in
23determining final rate of earnings: (1) severance or separation
24pay, (2) retirement pay, (3) payment for unused sick leave, and
25(4) payments from an employer for the period used in
26determining final rate of earnings for any purpose other than

 

 

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1(i) services rendered, (ii) leave of absence or vacation
2granted during that period, and (iii) vacation of up to 56 work
3days allowed upon termination of employment; except that, if
4the benefit has been collectively bargained between the
5employer and the recognized collective bargaining agent
6pursuant to the Illinois Educational Labor Relations Act,
7payment received during a period of up to 2 academic years for
8unused sick leave may be considered as earnings in accordance
9with the applicable collective bargaining agreement, subject
10to the 20% increase limitation of this Section. Any unused sick
11leave considered as earnings under this Section shall not be
12taken into account in calculating service credit under Section
1315-113.4.
14    (i) Intermittent periods of service shall be considered as
15consecutive in determining final rate of earnings.
16(Source: P.A. 96-1490, eff. 1-1-11.)
 
17    (40 ILCS 5/15-113.6)  (from Ch. 108 1/2, par. 15-113.6)
18    Sec. 15-113.6. Service for employment in public schools.
19"Service for employment in public schools": Includes those
20periods not exceeding the lesser of 10 years or 2/3 of the
21service granted under other Sections of this Article dealing
22with service credit, during which a person who entered the
23system after September 1, 1974 was employed full time by a
24public common school, public college and public university, or
25by an agency or instrumentality of any of the foregoing, of any

 

 

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1state, territory, dependency or possession of the United States
2of America, including the Philippine Islands, or a school
3operated by or under the auspices of any agency or department
4of any other state, if the person (1) cannot qualify for a
5retirement pension or other benefit based upon employer
6contributions from another retirement system, exclusive of
7federal social security, based in whole or in part upon this
8employment, and (2) pays the lesser of (A) an amount equal to
98% of his or her annual basic compensation on the date of
10becoming a participating employee subsequent to this service
11multiplied by the number of years of such service, together
12with compound interest from the date participation begins to
13the date payment is received by the board at the rate of 6% per
14annum through August 31, 1982, and at the effective rates after
15that date, and (B) 50% of the actuarial value of the increase
16in the retirement annuity provided by this service, and (3)
17contributes for at least 5 years subsequent to this employment
18to one or more of the following systems: the State Universities
19Retirement System, the Teachers' Retirement System of the State
20of Illinois, and the Public School Teachers' Pension and
21Retirement Fund of Chicago.
22    The service granted under this Section shall not be
23considered in determining whether the person has the minimum of
248 years of service required to qualify for a retirement annuity
25at age 55 or the 5 years of service required to qualify for a
26retirement annuity at age 62 or the 10 years of service

 

 

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1required to qualify for a retirement annuity at age 67, as
2provided in Section 15-135, or the 10 years required by
3subsection (c) of Section 1-160 for a person who first becomes
4a participant on or after January 1, 2011. The maximum
5allowable service of 10 years for this governmental employment
6shall be reduced by the service credit which is validated under
7paragraph (2) of subsection (b) of Section 16-127 and paragraph
81 of Section 17-133.
9(Source: P.A. 95-83, eff. 8-13-07; 96-1490, eff. 1-1-11.)
 
10    (40 ILCS 5/15-134)  (from Ch. 108 1/2, par. 15-134)
11    Sec. 15-134. Participant.
12    (a) Each person shall, as a condition of employment, become
13a participant and be subject to this Article on the date that
14he or she becomes an employee, makes an election to participate
15in, or otherwise becomes a participant in one of the retirement
16programs offered under this Article, whichever date is later.
17    An employee who becomes a participant shall continue to be
18a participant until he or she becomes an annuitant, dies or
19accepts a refund of contributions. For purposes of subsection
20(f) of Section 1-160, the term "participant" shall include a
21person receiving a retirement annuity.
22    (b) A person employed concurrently by 2 or more employers
23is eligible to participate in the system on compensation
24received from all employers.
25(Source: P.A. 96-1490, eff. 1-1-11.)
 

 

 

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1    (40 ILCS 5/15-135)  (from Ch. 108 1/2, par. 15-135)
2    Sec. 15-135. Retirement annuities - Conditions.
3    (a) This subsection (a) applies only to a Tier 1 member. A
4participant who retires in one of the following specified years
5with the specified amount of service is entitled to a
6retirement annuity at any age under the retirement program
7applicable to the participant:
8        35 years if retirement is in 1997 or before;
9        34 years if retirement is in 1998;
10        33 years if retirement is in 1999;
11        32 years if retirement is in 2000;
12        31 years if retirement is in 2001;
13        30 years if retirement is in 2002 or later.
14    A participant with 8 or more years of service after
15September 1, 1941, is entitled to a retirement annuity on or
16after attainment of age 55.
17    A participant with at least 5 but less than 8 years of
18service after September 1, 1941, is entitled to a retirement
19annuity on or after attainment of age 62.
20    A participant who has at least 25 years of service in this
21system as a police officer or firefighter is entitled to a
22retirement annuity on or after the attainment of age 50, if
23Rule 4 of Section 15-136 is applicable to the participant.
24    (a-5) A Tier 2 member is entitled to a retirement annuity
25upon written application if he or she has attained age 67 and

 

 

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1has at least 10 years of service credit and is otherwise
2eligible under the requirements of this Article. A Tier 2
3member who has attained age 62 and has at least 10 years of
4service credit and is otherwise eligible under the requirements
5of this Article may elect to receive the lower retirement
6annuity provided in subsection (b-5) of Section 15-136 of this
7Article.
8    (b) The annuity payment period shall begin on the date
9specified by the participant or the recipient of a disability
10retirement annuity submitting a written application, which
11date shall not be prior to termination of employment or more
12than one year before the application is received by the board;
13however, if the participant is not an employee of an employer
14participating in this System or in a participating system as
15defined in Article 20 of this Code on April 1 of the calendar
16year next following the calendar year in which the participant
17attains age 70 1/2, the annuity payment period shall begin on
18that date regardless of whether an application has been filed.
19    (c) An annuity is not payable if the amount provided under
20Section 15-136 is less than $10 per month.
21(Source: P.A. 97-933, eff. 8-10-12; 97-968, eff. 8-16-12.)
 
22    (40 ILCS 5/15-136)  (from Ch. 108 1/2, par. 15-136)
23    Sec. 15-136. Retirement annuities - Amount. The provisions
24of this Section 15-136 apply only to those participants who are
25participating in the traditional benefit package or the

 

 

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1portable benefit package and do not apply to participants who
2are participating in the self-managed plan.
3    (a) The amount of a participant's retirement annuity,
4expressed in the form of a single-life annuity, shall be
5determined by whichever of the following rules is applicable
6and provides the largest annuity:
7    Rule 1: The retirement annuity shall be 1.67% of final rate
8of earnings for each of the first 10 years of service, 1.90%
9for each of the next 10 years of service, 2.10% for each year
10of service in excess of 20 but not exceeding 30, and 2.30% for
11each year in excess of 30; or for persons who retire on or
12after January 1, 1998, 2.2% of the final rate of earnings for
13each year of service.
14    Rule 2: The retirement annuity shall be the sum of the
15following, determined from amounts credited to the participant
16in accordance with the actuarial tables and the effective rate
17of interest in effect at the time the retirement annuity
18begins:
19        (i) the normal annuity which can be provided on an
20    actuarially equivalent basis, by the accumulated normal
21    contributions as of the date the annuity begins;
22        (ii) an annuity from employer contributions of an
23    amount equal to that which can be provided on an
24    actuarially equivalent basis from the accumulated normal
25    contributions made by the participant under Section
26    15-113.6 and Section 15-113.7 plus 1.4 times all other

 

 

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1    accumulated normal contributions made by the participant;
2    and
3        (iii) the annuity that can be provided on an
4    actuarially equivalent basis from the entire contribution
5    made by the participant under Section 15-113.3.
6    With respect to a police officer or firefighter who retires
7on or after August 14, 1998, the accumulated normal
8contributions taken into account under clauses (i) and (ii) of
9this Rule 2 shall include the additional normal contributions
10made by the police officer or firefighter under Section
1115-157(a).
12    The amount of a retirement annuity calculated under this
13Rule 2 shall be computed solely on the basis of the
14participant's accumulated normal contributions, as specified
15in this Rule and defined in Section 15-116. Neither an employee
16or employer contribution for early retirement under Section
1715-136.2 nor any other employer contribution shall be used in
18the calculation of the amount of a retirement annuity under
19this Rule 2.
20    This amendatory Act of the 91st General Assembly is a
21clarification of existing law and applies to every participant
22and annuitant without regard to whether status as an employee
23terminates before the effective date of this amendatory Act.
24    This Rule 2 does not apply to a person who first becomes an
25employee under this Article on or after July 1, 2005.
26    Rule 3: The retirement annuity of a participant who is

 

 

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1employed at least one-half time during the period on which his
2or her final rate of earnings is based, shall be equal to the
3participant's years of service not to exceed 30, multiplied by
4(1) $96 if the participant's final rate of earnings is less
5than $3,500, (2) $108 if the final rate of earnings is at least
6$3,500 but less than $4,500, (3) $120 if the final rate of
7earnings is at least $4,500 but less than $5,500, (4) $132 if
8the final rate of earnings is at least $5,500 but less than
9$6,500, (5) $144 if the final rate of earnings is at least
10$6,500 but less than $7,500, (6) $156 if the final rate of
11earnings is at least $7,500 but less than $8,500, (7) $168 if
12the final rate of earnings is at least $8,500 but less than
13$9,500, and (8) $180 if the final rate of earnings is $9,500 or
14more, except that the annuity for those persons having made an
15election under Section 15-154(a-1) shall be calculated and
16payable under the portable retirement benefit program pursuant
17to the provisions of Section 15-136.4.
18    Rule 4: A participant who is at least age 50 and has 25 or
19more years of service as a police officer or firefighter, and a
20participant who is age 55 or over and has at least 20 but less
21than 25 years of service as a police officer or firefighter,
22shall be entitled to a retirement annuity of 2 1/4% of the
23final rate of earnings for each of the first 10 years of
24service as a police officer or firefighter, 2 1/2% for each of
25the next 10 years of service as a police officer or
26firefighter, and 2 3/4% for each year of service as a police

 

 

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1officer or firefighter in excess of 20. The retirement annuity
2for all other service shall be computed under Rule 1. A Tier 2
3member is eligible for a retirement annuity calculated under
4Rule 4 only if that Tier 2 member meets the service
5requirements for that benefit calculation as prescribed under
6this Rule 4 in addition to the applicable age requirement under
7subsection (a-5) of Section 15-135.
8    For purposes of this Rule 4, a participant's service as a
9firefighter shall also include the following:
10        (i) service that is performed while the person is an
11    employee under subsection (h) of Section 15-107; and
12        (ii) in the case of an individual who was a
13    participating employee employed in the fire department of
14    the University of Illinois's Champaign-Urbana campus
15    immediately prior to the elimination of that fire
16    department and who immediately after the elimination of
17    that fire department transferred to another job with the
18    University of Illinois, service performed as an employee of
19    the University of Illinois in a position other than police
20    officer or firefighter, from the date of that transfer
21    until the employee's next termination of service with the
22    University of Illinois.
23    Rule 5: The retirement annuity of a participant who elected
24early retirement under the provisions of Section 15-136.2 and
25who, on or before February 16, 1995, brought administrative
26proceedings pursuant to the administrative rules adopted by the

 

 

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1System to challenge the calculation of his or her retirement
2annuity shall be the sum of the following, determined from
3amounts credited to the participant in accordance with the
4actuarial tables and the prescribed rate of interest in effect
5at the time the retirement annuity begins:
6        (i) the normal annuity which can be provided on an
7    actuarially equivalent basis, by the accumulated normal
8    contributions as of the date the annuity begins; and
9        (ii) an annuity from employer contributions of an
10    amount equal to that which can be provided on an
11    actuarially equivalent basis from the accumulated normal
12    contributions made by the participant under Section
13    15-113.6 and Section 15-113.7 plus 1.4 times all other
14    accumulated normal contributions made by the participant;
15    and
16        (iii) an annuity which can be provided on an
17    actuarially equivalent basis from the employee
18    contribution for early retirement under Section 15-136.2,
19    and an annuity from employer contributions of an amount
20    equal to that which can be provided on an actuarially
21    equivalent basis from the employee contribution for early
22    retirement under Section 15-136.2.
23    In no event shall a retirement annuity under this Rule 5 be
24lower than the amount obtained by adding (1) the monthly amount
25obtained by dividing the combined employee and employer
26contributions made under Section 15-136.2 by the System's

 

 

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1annuity factor for the age of the participant at the beginning
2of the annuity payment period and (2) the amount equal to the
3participant's annuity if calculated under Rule 1, reduced under
4Section 15-136(b) as if no contributions had been made under
5Section 15-136.2.
6    With respect to a participant who is qualified for a
7retirement annuity under this Rule 5 whose retirement annuity
8began before the effective date of this amendatory Act of the
991st General Assembly, and for whom an employee contribution
10was made under Section 15-136.2, the System shall recalculate
11the retirement annuity under this Rule 5 and shall pay any
12additional amounts due in the manner provided in Section
1315-186.1 for benefits mistakenly set too low.
14    The amount of a retirement annuity calculated under this
15Rule 5 shall be computed solely on the basis of those
16contributions specifically set forth in this Rule 5. Except as
17provided in clause (iii) of this Rule 5, neither an employee
18nor employer contribution for early retirement under Section
1915-136.2, nor any other employer contribution, shall be used in
20the calculation of the amount of a retirement annuity under
21this Rule 5.
22    The General Assembly has adopted the changes set forth in
23Section 25 of this amendatory Act of the 91st General Assembly
24in recognition that the decision of the Appellate Court for the
25Fourth District in Mattis v. State Universities Retirement
26System et al. might be deemed to give some right to the

 

 

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1plaintiff in that case. The changes made by Section 25 of this
2amendatory Act of the 91st General Assembly are a legislative
3implementation of the decision of the Appellate Court for the
4Fourth District in Mattis v. State Universities Retirement
5System et al. with respect to that plaintiff.
6    The changes made by Section 25 of this amendatory Act of
7the 91st General Assembly apply without regard to whether the
8person is in service as an employee on or after its effective
9date.
10    (b) For a Tier 1 member, the The retirement annuity
11provided under Rules 1 and 3 above shall be reduced by 1/2 of
121% for each month the participant is under age 60 at the time
13of retirement. However, this reduction shall not apply in the
14following cases:
15        (1) For a disabled participant whose disability
16    benefits have been discontinued because he or she has
17    exhausted eligibility for disability benefits under clause
18    (6) of Section 15-152;
19        (2) For a participant who has at least the number of
20    years of service required to retire at any age under
21    subsection (a) of Section 15-135; or
22        (3) For that portion of a retirement annuity which has
23    been provided on account of service of the participant
24    during periods when he or she performed the duties of a
25    police officer or firefighter, if these duties were
26    performed for at least 5 years immediately preceding the

 

 

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1    date the retirement annuity is to begin.
2    (b-5) The retirement annuity of a Tier 2 member who is
3retiring after attaining age 62 with at least 10 years of
4service credit shall be reduced by 1/2 of 1% for each full
5month that the member's age is under age 67.
6    (c) The maximum retirement annuity provided under Rules 1,
72, 4, and 5 shall be the lesser of (1) the annual limit of
8benefits as specified in Section 415 of the Internal Revenue
9Code of 1986, as such Section may be amended from time to time
10and as such benefit limits shall be adjusted by the
11Commissioner of Internal Revenue, and (2) 80% of final rate of
12earnings.
13    (d) A Tier 1 member An annuitant whose status as an
14employee terminates after August 14, 1969 shall receive
15automatic increases in his or her retirement annuity as
16follows:
17    Effective January 1 immediately following the date the
18retirement annuity begins, the annuitant shall receive an
19increase in his or her monthly retirement annuity of 0.125% of
20the monthly retirement annuity provided under Rule 1, Rule 2,
21Rule 3, or Rule 4, or Rule 5, contained in this Section,
22multiplied by the number of full months which elapsed from the
23date the retirement annuity payments began to January 1, 1972,
24plus 0.1667% of such annuity, multiplied by the number of full
25months which elapsed from January 1, 1972, or the date the
26retirement annuity payments began, whichever is later, to

 

 

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1January 1, 1978, plus 0.25% of such annuity multiplied by the
2number of full months which elapsed from January 1, 1978, or
3the date the retirement annuity payments began, whichever is
4later, to the effective date of the increase.
5    The annuitant shall receive an increase in his or her
6monthly retirement annuity on each January 1 thereafter during
7the annuitant's life of 3% of the monthly annuity provided
8under Rule 1, Rule 2, Rule 3, or Rule 4, or Rule 5 contained in
9this Section. The change made under this subsection by P.A.
1081-970 is effective January 1, 1980 and applies to each
11annuitant whose status as an employee terminates before or
12after that date.
13    Beginning January 1, 1990, all automatic annual increases
14payable under this Section shall be calculated as a percentage
15of the total annuity payable at the time of the increase,
16including all increases previously granted under this Article.
17    The change made in this subsection by P.A. 85-1008 is
18effective January 26, 1988, and is applicable without regard to
19whether status as an employee terminated before that date.
20    (d-5) A retirement annuity of a Tier 2 member shall receive
21annual increases on the January 1 occurring either on or after
22the attainment of age 67 or the first anniversary of the
23annuity start date, whichever is later. Each annual increase
24shall be calculated at 3% or one half the annual unadjusted
25percentage increase (but not less than zero) in the consumer
26price index-u for the 12 months ending with the September

 

 

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1preceding each November 1, whichever is less, of the originally
2granted retirement annuity. If the annual unadjusted
3percentage change in the consumer price index-u for the 12
4months ending with the September preceding each November 1 is
5zero or there is a decrease, then the annuity shall not be
6increased.
7    (e) If, on January 1, 1987, or the date the retirement
8annuity payment period begins, whichever is later, the sum of
9the retirement annuity provided under Rule 1 or Rule 2 of this
10Section and the automatic annual increases provided under the
11preceding subsection or Section 15-136.1, amounts to less than
12the retirement annuity which would be provided by Rule 3, the
13retirement annuity shall be increased as of January 1, 1987, or
14the date the retirement annuity payment period begins,
15whichever is later, to the amount which would be provided by
16Rule 3 of this Section. Such increased amount shall be
17considered as the retirement annuity in determining benefits
18provided under other Sections of this Article. This paragraph
19applies without regard to whether status as an employee
20terminated before the effective date of this amendatory Act of
211987, provided that the annuitant was employed at least
22one-half time during the period on which the final rate of
23earnings was based.
24    (f) A participant is entitled to such additional annuity as
25may be provided on an actuarially equivalent basis, by any
26accumulated additional contributions to his or her credit.

 

 

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1However, the additional contributions made by the participant
2toward the automatic increases in annuity provided under this
3Section shall not be taken into account in determining the
4amount of such additional annuity.
5    (g) If, (1) by law, a function of a governmental unit, as
6defined by Section 20-107 of this Code, is transferred in whole
7or in part to an employer, and (2) a participant transfers
8employment from such governmental unit to such employer within
96 months after the transfer of the function, and (3) the sum of
10(A) the annuity payable to the participant under Rule 1, 2, or
113 of this Section (B) all proportional annuities payable to the
12participant by all other retirement systems covered by Article
1320, and (C) the initial primary insurance amount to which the
14participant is entitled under the Social Security Act, is less
15than the retirement annuity which would have been payable if
16all of the participant's pension credits validated under
17Section 20-109 had been validated under this system, a
18supplemental annuity equal to the difference in such amounts
19shall be payable to the participant.
20    (h) On January 1, 1981, an annuitant who was receiving a
21retirement annuity on or before January 1, 1971 shall have his
22or her retirement annuity then being paid increased $1 per
23month for each year of creditable service. On January 1, 1982,
24an annuitant whose retirement annuity began on or before
25January 1, 1977, shall have his or her retirement annuity then
26being paid increased $1 per month for each year of creditable

 

 

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1service.
2    (i) On January 1, 1987, any annuitant whose retirement
3annuity began on or before January 1, 1977, shall have the
4monthly retirement annuity increased by an amount equal to 8¢
5per year of creditable service times the number of years that
6have elapsed since the annuity began.
7(Source: P.A. 97-933, eff. 8-10-12; 97-968, eff. 8-16-12.)
 
8    (40 ILCS 5/15-136.3)
9    Sec. 15-136.3. Minimum retirement annuity.
10    (a) Beginning January 1, 1997, any person who is receiving
11a monthly retirement annuity under this Article which, after
12inclusion of (1) all one-time and automatic annual increases to
13which the person is entitled, (2) any supplemental annuity
14payable under Section 15-136.1, and (3) any amount deducted
15under Section 15-138 or 15-140 to provide a reversionary
16annuity, is less than the minimum monthly retirement benefit
17amount specified in subsection (b) of this Section, shall be
18entitled to a monthly supplemental payment equal to the
19difference.
20    (b) For purposes of the calculation in subsection (a), the
21minimum monthly retirement benefit amount is the sum of $25 for
22each year of service credit, up to a maximum of 30 years of
23service.
24    (c) This Section applies to all persons receiving a
25retirement annuity under this Article, without regard to

 

 

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1whether or not employment terminated prior to the effective
2date of this Section. The annual increase provided in
3subsection (e) of Section 1-160 does not apply to any benefit
4provided under this Section.
5(Source: P.A. 96-1490, eff. 1-1-11.)
 
6    (40 ILCS 5/15-139)  (from Ch. 108 1/2, par. 15-139)
7    Sec. 15-139. Retirement annuities; cancellation; suspended
8during employment.
9    (a) If an annuitant returns to employment for an employer
10within 60 days after the beginning of the retirement annuity
11payment period, the retirement annuity shall be cancelled, and
12the annuitant shall refund to the System the total amount of
13the retirement annuity payments which he or she received. If
14the retirement annuity is cancelled, the participant shall
15continue to participate in the System.
16    (b) If an annuitant retires prior to age 60 and receives or
17becomes entitled to receive during any month compensation in
18excess of the monthly retirement annuity (including any
19automatic annual increases) for services performed after the
20date of retirement for any employer under this System, that
21portion of the monthly retirement annuity provided by employer
22contributions shall not be payable.
23    If an annuitant retires at age 60 or over and receives or
24becomes entitled to receive during any academic year
25compensation in excess of the difference between his or her

 

 

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1highest annual earnings prior to retirement and his or her
2annual retirement annuity computed under Rule 1, Rule 2, Rule
33, or Rule 4, or Rule 5 of Section 15-136, or under Section
415-136.4, for services performed after the date of retirement
5for any employer under this System, that portion of the monthly
6retirement annuity provided by employer contributions shall be
7reduced by an amount equal to the compensation that exceeds
8such difference.
9    However, any remuneration received for serving as a member
10of the Illinois Educational Labor Relations Board shall be
11excluded from "compensation" for the purposes of this
12subsection (b), and serving as a member of the Illinois
13Educational Labor Relations Board shall not be deemed to be a
14return to employment for the purposes of this Section. This
15provision applies without regard to whether service was
16terminated prior to the effective date of this amendatory Act
17of 1991.
18    (c) If an employer certifies that an annuitant has been
19reemployed on a permanent and continuous basis or in a position
20in which the annuitant is expected to serve for at least 9
21months, the annuitant shall resume his or her status as a
22participating employee and shall be entitled to all rights
23applicable to participating employees upon filing with the
24board an election to forgo all annuity payments during the
25period of reemployment. Upon subsequent retirement, the
26retirement annuity shall consist of the annuity which was

 

 

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1terminated by the reemployment, plus the additional retirement
2annuity based upon service granted during the period of
3reemployment, but the combined retirement annuity shall not
4exceed the maximum annuity applicable on the date of the last
5retirement.
6    The total service and earnings credited before and after
7the initial date of retirement shall be considered in
8determining eligibility of the employee or the employee's
9beneficiary to benefits under this Article, and in calculating
10final rate of earnings.
11    In determining the death benefit payable to a beneficiary
12of an annuitant who again becomes a participating employee
13under this Section, accumulated normal and additional
14contributions shall be considered as the sum of the accumulated
15normal and additional contributions at the date of initial
16retirement and the accumulated normal and additional
17contributions credited after that date, less the sum of the
18annuity payments received by the annuitant.
19    The survivors insurance benefits provided under Section
2015-145 shall not be applicable to an annuitant who resumes his
21or her status as a participating employee, unless the
22annuitant, at the time of initial retirement, has a survivors
23insurance beneficiary who could qualify for such benefits.
24    If the participant's employment is terminated because of
25circumstances other than death before 9 months from the date of
26reemployment, the provisions of this Section regarding

 

 

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1resumption of status as a participating employee shall not
2apply. The normal and survivors insurance contributions which
3are deducted during this period shall be refunded to the
4annuitant without interest, and subsequent benefits under this
5Article shall be the same as those which were applicable prior
6to the date the annuitant resumed employment.
7    The amendments made to this Section by this amendatory Act
8of the 91st General Assembly apply without regard to whether
9the annuitant was in service on or after the effective date of
10this amendatory Act.
11(Source: P.A. 97-933, eff. 8-10-12; 97-968, eff. 8-16-12.)
 
12    (40 ILCS 5/15-139.1 new)
13    Sec. 15-139.1. Tier 2 member retirement annuities;
14suspended during employment. If a Tier 2 member is receiving a
15retirement annuity under this System and becomes a member or
16participant under any other system or fund created by this Code
17and is employed on a full-time basis, then the person's
18retirement annuity shall be suspended during that employment.
19Upon termination of that employment, the person's retirement
20annuity shall resume and be recalculated if recalculation is
21provided for under this Article.
 
22    (40 ILCS 5/15-145)  (from Ch. 108 1/2, par. 15-145)
23    Sec. 15-145. Survivors insurance benefits; conditions and
24amounts.

 

 

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1    (a) The survivors insurance benefits provided under this
2Section shall be payable to the eligible survivors of a Tier 1
3member participant covered under the traditional benefit
4package upon the death of (1) a participating employee with at
5least 1 1/2 years of service, (2) a participant who terminated
6employment with at least 10 years of service, and (3) an
7annuitant in receipt of a retirement annuity or disability
8retirement annuity under this Article.
9    Service under the State Employees' Retirement System of
10Illinois, the Teachers' Retirement System of the State of
11Illinois and the Public School Teachers' Pension and Retirement
12Fund of Chicago shall be considered in determining eligibility
13for survivors benefits under this Section.
14    If by law, a function of a governmental unit, as defined by
15Section 20-107, is transferred in whole or in part to an
16employer, and an employee transfers employment from this
17governmental unit to such employer within 6 months after the
18transfer of this function, the service credits in the
19governmental unit's retirement system which have been
20validated under Section 20-109 shall be considered in
21determining eligibility for survivors benefits under this
22Section.
23    (b) A surviving spouse of a deceased participant, or of a
24deceased annuitant who did not take a refund or additional
25annuity consisting of accumulated survivors insurance
26contributions, shall receive a survivors annuity of 30% of the

 

 

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1final rate of earnings. Payments shall begin on the day
2following the participant's or annuitant's death or the date
3the surviving spouse attains age 50, whichever is later, and
4continue until the death of the surviving spouse. The annuity
5shall be payable to the surviving spouse prior to attainment of
6age 50 if the surviving spouse has in his or her care a
7deceased participant's or annuitant's dependent unmarried
8child under age 18 (under age 22 if a full-time student) who is
9eligible for a survivors annuity.
10    Remarriage of a surviving spouse prior to attainment of age
1155 that occurs before the effective date of this amendatory Act
12of the 91st General Assembly shall disqualify him or her for
13the receipt of a survivors annuity until July 6, 2000.
14    A surviving spouse whose survivors annuity has been
15terminated due to remarriage may apply for reinstatement of
16that annuity. The reinstated annuity shall begin to accrue on
17July 6, 2000, except that if, on July 6, 2000, the annuity is
18payable to an eligible surviving child or parent, payment of
19the annuity to the surviving spouse shall not be reinstated
20until the annuity is no longer payable to any eligible
21surviving child or parent. The reinstated annuity shall include
22any one-time or annual increases received prior to the date of
23termination, as well as any increases that would otherwise have
24accrued from the date of termination to the date of
25reinstatement. An eligible surviving spouse whose expectation
26of receiving a survivors annuity was lost due to remarriage

 

 

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1before attainment of age 50 shall also be entitled to
2reinstatement under this subsection, but the resulting
3survivors annuity shall not begin to accrue sooner than upon
4the surviving spouse's attainment of age 50.
5    The changes made to this subsection by this amendatory Act
6of the 92nd General Assembly (pertaining to remarriage prior to
7age 55 or 50) apply without regard to whether the deceased
8participant or annuitant was in service on or after the
9effective date of this amendatory Act.
10    (c) Each dependent unmarried child under age 18 (under age
1122 if a full-time student) of a deceased participant, or of a
12deceased annuitant who did not take a refund or additional
13annuity consisting of accumulated survivors insurance
14contributions, shall receive a survivors annuity equal to the
15sum of (1) 20% of the final rate of earnings, and (2) 10% of the
16final rate of earnings divided by the number of children
17entitled to this benefit. Payments shall begin on the day
18following the participant's or annuitant's death and continue
19until the child marries, dies, or attains age 18 (age 22 if a
20full-time student). If the child is in the care of a surviving
21spouse who is eligible for survivors insurance benefits, the
22child's benefit shall be paid to the surviving spouse.
23    Each unmarried child over age 18 of a deceased participant
24or of a deceased annuitant who had a survivor's insurance
25beneficiary at the time of his or her retirement, and who was
26dependent upon the participant or annuitant by reason of a

 

 

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1physical or mental disability which began prior to the date the
2child attained age 18 (age 22 if a full-time student), shall
3receive a survivor's annuity equal to the sum of (1) 20% of the
4final rate of earnings, and (2) 10% of the final rate of
5earnings divided by the number of children entitled to
6survivors benefits. Payments shall begin on the day following
7the participant's or annuitant's death and continue until the
8child marries, dies, or is no longer disabled. If the child is
9in the care of a surviving spouse who is eligible for survivors
10insurance benefits, the child's benefit may be paid to the
11surviving spouse. For the purposes of this Section, disability
12means inability to engage in any substantial gainful activity
13by reason of any medically determinable physical or mental
14impairment that can be expected to result in death or that has
15lasted or can be expected to last for a continuous period of at
16least one year.
17    (d) Each dependent parent of a deceased participant, or of
18a deceased annuitant who did not take a refund or additional
19annuity consisting of accumulated survivors insurance
20contributions, shall receive a survivors annuity equal to the
21sum of (1) 20% of final rate of earnings, and (2) 10% of final
22rate of earnings divided by the number of parents who qualify
23for the benefit. Payments shall begin when the parent reaches
24age 55 or the day following the participant's or annuitant's
25death, whichever is later, and continue until the parent dies.
26Remarriage of a parent prior to attainment of age 55 shall

 

 

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1disqualify the parent for the receipt of a survivors annuity.
2    (e) In addition to the survivors annuity provided above,
3each survivors insurance beneficiary shall, upon death of the
4participant or annuitant, receive a lump sum payment of $1,000
5divided by the number of such beneficiaries.
6    (f) The changes made in this Section by Public Act 81-712
7pertaining to survivors annuities in cases of remarriage prior
8to age 55 shall apply to each survivors insurance beneficiary
9who remarries after June 30, 1979, regardless of the date that
10the participant or annuitant terminated his employment or died.
11    The change made to this Section by this amendatory Act of
12the 91st General Assembly, pertaining to remarriage prior to
13age 55, applies without regard to whether the deceased
14participant or annuitant was in service on or after the
15effective date of this amendatory Act of the 91st General
16Assembly.
17    (g) On January 1, 1981, any person who was receiving a
18survivors annuity on or before January 1, 1971 shall have the
19survivors annuity then being paid increased by 1% for each full
20year which has elapsed from the date the annuity began. On
21January 1, 1982, any survivor whose annuity began after January
221, 1971, but before January 1, 1981, shall have the survivor's
23annuity then being paid increased by 1% for each year which has
24elapsed from the date the survivor's annuity began. On January
251, 1987, any survivor who began receiving a survivor's annuity
26on or before January 1, 1977, shall have the monthly survivor's

 

 

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1annuity increased by $1 for each full year which has elapsed
2since the date the survivor's annuity began.
3    (h) If the sum of the lump sum and total monthly survivor
4benefits payable under this Section upon the death of a
5participant amounts to less than the sum of the death benefits
6payable under items (2) and (3) of Section 15-141, the
7difference shall be paid in a lump sum to the beneficiary of
8the participant who is living on the date that this additional
9amount becomes payable.
10    (i) If the sum of the lump sum and total monthly survivor
11benefits payable under this Section upon the death of an
12annuitant receiving a retirement annuity or disability
13retirement annuity amounts to less than the death benefit
14payable under Section 15-142, the difference shall be paid to
15the beneficiary of the annuitant who is living on the date that
16this additional amount becomes payable.
17    (j) Effective on the later of (1) January 1, 1990, or (2)
18the January 1 on or next after the date on which the survivor
19annuity begins, if the deceased member died while receiving a
20retirement annuity, or in all other cases the January 1 nearest
21the first anniversary of the date the survivor annuity payments
22begin, every survivors insurance beneficiary shall receive an
23increase in his or her monthly survivors annuity of 3%. On each
24January 1 after the initial increase, the monthly survivors
25annuity shall be increased by 3% of the total survivors annuity
26provided under this Article, including previous increases

 

 

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1provided by this subsection. Such increases shall apply to the
2survivors insurance beneficiaries of each participant and
3annuitant, whether or not the employment status of the
4participant or annuitant terminates before the effective date
5of this amendatory Act of 1990. This subsection (j) also
6applies to persons receiving a survivor annuity under the
7portable benefit package.
8    (k) If the Internal Revenue Code of 1986, as amended,
9requires that the survivors benefits be payable at an age
10earlier than that specified in this Section the benefits shall
11begin at the earlier age, in which event, the survivor's
12beneficiary shall be entitled only to that amount which is
13equal to the actuarial equivalent of the benefits provided by
14this Section.
15    (l) The changes made to this Section and Section 15-131 by
16this amendatory Act of 1997, relating to benefits for certain
17unmarried children who are full-time students under age 22,
18apply without regard to whether the deceased member was in
19service on or after the effective date of this amendatory Act
20of 1997. These changes do not authorize the repayment of a
21refund or a re-election of benefits, and any benefit or
22increase in benefits resulting from these changes is not
23payable retroactively for any period before the effective date
24of this amendatory Act of 1997.
25(Source: P.A. 91-887, eff. 7-6-00; 92-749, eff. 8-2-02.)
 

 

 

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1    (40 ILCS 5/15-145.1 new)
2    Sec. 15-145.1. Survivor's insurance benefits for Tier 2
3Members; amount. The initial survivor's insurance benefit of a
4survivors insurance beneficiary of a Tier 2 member shall be in
5the amount of 66 2/3% of the Tier 2 member's retirement annuity
6at the date of death. In the case of the death of a Tier 2
7member who has not retired, eligibility for a survivor's
8insurance benefit shall be determined by the applicable Section
9of this Article. The initial benefit shall be 66 2/3% of the
10earned annuity without a reduction due to age and shall be
11increased (1) on each January 1 occurring on or after the
12commencement of the annuity if the deceased Tier 2 member died
13while receiving a retirement annuity or (2) in other cases, on
14each January 1 occurring after the first anniversary of the
15commencement of the benefit. Each annual increase shall be
16calculated at 3% or one half the annual unadjusted percentage
17increase (but not less than zero) in the consumer price index-u
18for the 12 months ending with the September preceding each
19November 1, whichever is less, of the originally granted
20survivor's insurance benefit. If the annual unadjusted
21percentage change in the consumer price index-u for the 12
22months ending with the September preceding each November 1 is
23zero or there is a decrease, then the survivor's insurance
24benefit shall not be increased. A beneficiary of a Tier 2
25member who elects the Portable Benefit Package provided under
26this Article shall not be eligible for the survivor's insurance

 

 

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1benefit that is provided under this Section. If 2 or more
2persons are eligible to receive survivor's insurance benefits
3as provided under this Section based on the same deceased Tier
42 member, the calculation of the survivor's insurance benefits
5shall be based on the total calculation of the survivor's
6insurance benefit and divided pro rata.
 
7    (40 ILCS 5/15-146)  (from Ch. 108 1/2, par. 15-146)
8    Sec. 15-146. Survivors insurance benefits - Minimum
9amounts.
10    (a) The minimum total survivors annuity payable on account
11of the death of a participant shall be 50% of the retirement
12annuity which would have been provided under Rule 1, Rule 2, or
13Rule 3, or Rule 5 of Section 15-136 upon the participant's
14attainment of the minimum age at which the penalty for early
15retirement would not be applicable or the date of the
16participant's death, whichever is later, on the basis of
17credits earned prior to the time of death.
18    (b) The minimum total survivors annuity payable on account
19of the death of an annuitant shall be 50% of the retirement
20annuity which is payable under Section 15-136 at the time of
21death or 50% of the disability retirement annuity payable under
22Section 15-153.2. This minimum survivors annuity shall apply to
23each participant and annuitant who dies after September 16,
241979, whether or not his or her employee status terminates
25before or after that date.

 

 

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1    (c) If an annuitant has elected a reversionary annuity, the
2retirement annuity referred to in this Section is that which
3would have been payable had such election not been filed.
4    (d) Beginning January 1, 2002, any person who is receiving
5a survivors annuity under this Article which, after inclusion
6of all one-time and automatic annual increases to which the
7person is entitled, is less than the sum of $17.50 for each
8year (up to a maximum of 30 years) of the deceased member's
9service credit, shall be entitled to a monthly supplemental
10payment equal to the difference.
11    If 2 or more persons are receiving survivors annuities
12based on the same deceased member, the calculation of the
13supplemental payment under this subsection shall be based on
14the total of those annuities and divided pro rata. The
15supplemental payment is not subject to any limitation on the
16maximum amount of the annuity and shall not be included in the
17calculation of any automatic annual increase under Section
1815-145. The annual increase provided in subsection (f) of
19Section 1-160 does not apply to any benefit provided under this
20subsection.
21(Source: P.A. 96-1490, eff. 1-1-11.)
 
22    (40 ILCS 5/15-146.1)  (from Ch. 108 1/2, par. 15-146.1)
23    Sec. 15-146.1. Survivors insurance benefits-Maximum
24amounts.
25    (a) The maximum total survivors annuity payable on account

 

 

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1of any deceased participating employee shall be the lesser of:
2(1) 80% of the final rate of earnings; or (2) (A) $400 per
3month if one survivors insurance beneficiary is entitled to a
4survivors annuity, or (B) $600 per month if there are 2 or more
5such beneficiaries.
6    (b) The maximum total survivors annuity payable on account
7of the death of any person occurring after retirement or after
8termination of his or her employee status shall be the lesser
9of: (1) 80% of the final rate of earnings; (2) (A) $400 per
10month if one survivors insurance beneficiary is entitled to a
11survivors annuity, or (B) $600 per month if there are 2 or more
12such beneficiaries; or (3) 80% of the retirement annuity
13payable to the annuitant at the date of retirement under the
14provisions of Rule 1, Rule 2, or Rule 3, or Rule 5 of Section
1515-136, or 80% of the retirement annuity which would have been
16payable to the participant upon attainment of the minimum age
17at which the penalty for early retirement would not be
18applicable or the date of death, whichever is later, based upon
19credits earned as of the date of death.
20    (c) The maximum total survivors annuity payable on account
21of the death of any person whose death occurs while in receipt
22of a disability retirement annuity under Section 15-153.2 shall
23be the lesser of (1) 80% of his or her final rate of earnings,
24(2) (A) $400 per month if one survivors insurance beneficiary
25is entitled to a survivors annuity, or (B) $600 per month if 2
26or more survivors insurance beneficiaries qualify for this

 

 

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1benefit, or (3) 80% of the retirement annuity which would have
2been payable upon attainment of the age at which the penalty
3for early retirement would not be applicable or the date of
4death, whichever is later, based upon the participant's credits
5on the date of death, or 80% of the disability retirement
6annuity whichever is greater.
7    (d) If the minimum annuity provided under Section 15-146
8exceeds the maximum annuity provided under this Section, the
9minimum annuity shall be payable.
10    (e) If an annuitant has elected a reversionary annuity, the
11retirement annuity referred to in this Section is that which
12would have been payable had such election not been filed.
13    (f) If a survivors insurance beneficiary qualifies for a
14survivors or widows annuity because of pension credits
15established by the participant or annuitant in another system
16covered by Article 20, and the combined survivors annuities
17exceed the highest survivors annuity which could be provided by
18either system based upon the combined pension credits, the
19survivors annuity payable by this system shall be reduced to
20that amount which, when added to the survivors annuity payable
21by the other system, would equal this highest survivors
22annuity. If the other system has a similar provision for
23adjustment of the survivors annuity, the respective
24proportional survivors annuities shall be reduced
25proportionately according to the ratio which the amount of each
26proportional survivors annuity bears to the aggregate of all

 

 

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1proportional survivors annuities. If a survivors annuity is
2payable by another system covered by Article 20, and the
3survivor elects to waive the survivors annuity and accept a
4lump sum payment or death benefit in lieu of the survivors
5annuity, this system shall, for the purpose of adjusting the
6survivors annuity under this subsection, assume that the
7survivor was entitled to a survivors annuity which, in
8accordance with actuarial tables of this system, is the
9actuarial equivalent of the amount of the lump sum payment or
10death benefit.
11    (g) The total monthly survivors annuity payable to the
12beneficiaries of any annuitant who terminated employment
13before July 14, 1959 and whose death occurs after September 16,
141977 shall not exceed $200.
15    (h) Whenever a reduction in the survivors annuity is made
16as authorized above, the survivors annuity to each dependent
17parent shall be proportionately reduced or eliminated, and if
18further reduction is necessary, the survivors annuity payable
19to every other person shall be proportionately decreased.
20    (i) This Section applies to the survivors insurance
21benefits provided to the eligible survivors of a Tier 1 member.
22(Source: P.A. 91-887, eff. 7-6-00.)
 
23    (40 ILCS 5/15-155)  (from Ch. 108 1/2, par. 15-155)
24    Sec. 15-155. Employer contributions.
25    (a) The State of Illinois shall make contributions by

 

 

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1appropriations of amounts which, together with the other
2employer contributions from trust, federal, and other funds,
3employee contributions, income from investments, and other
4income of this System, will be sufficient to meet the cost of
5maintaining and administering the System on a 90% funded basis
6in accordance with actuarial recommendations.
7    The Board shall determine the amount of State contributions
8required for each fiscal year on the basis of the actuarial
9tables and other assumptions adopted by the Board and the
10recommendations of the actuary, using the formula in subsection
11(a-1).
12    (a-1) For State fiscal years 2012 through 2045, the minimum
13contribution to the System to be made by the State for each
14fiscal year shall be an amount determined by the System to be
15sufficient to bring the total assets of the System up to 90% of
16the total actuarial liabilities of the System by the end of
17State fiscal year 2045. In making these determinations, the
18required State contribution shall be calculated each year as a
19level percentage of payroll over the years remaining to and
20including fiscal year 2045 and shall be determined under the
21projected unit credit actuarial cost method.
22    For State fiscal years 1996 through 2005, the State
23contribution to the System, as a percentage of the applicable
24employee payroll, shall be increased in equal annual increments
25so that by State fiscal year 2011, the State is contributing at
26the rate required under this Section.

 

 

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1    Notwithstanding any other provision of this Article, the
2total required State contribution for State fiscal year 2006 is
3$166,641,900.
4    Notwithstanding any other provision of this Article, the
5total required State contribution for State fiscal year 2007 is
6$252,064,100.
7    For each of State fiscal years 2008 through 2009, the State
8contribution to the System, as a percentage of the applicable
9employee payroll, shall be increased in equal annual increments
10from the required State contribution for State fiscal year
112007, so that by State fiscal year 2011, the State is
12contributing at the rate otherwise required under this Section.
13    Notwithstanding any other provision of this Article, the
14total required State contribution for State fiscal year 2010 is
15$702,514,000 and shall be made from the State Pensions Fund and
16proceeds of bonds sold in fiscal year 2010 pursuant to Section
177.2 of the General Obligation Bond Act, less (i) the pro rata
18share of bond sale expenses determined by the System's share of
19total bond proceeds, (ii) any amounts received from the General
20Revenue Fund in fiscal year 2010, (iii) any reduction in bond
21proceeds due to the issuance of discounted bonds, if
22applicable.
23    Notwithstanding any other provision of this Article, the
24total required State contribution for State fiscal year 2011 is
25the amount recertified by the System on or before April 1, 2011
26pursuant to Section 15-165 and shall be made from the State

 

 

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1Pensions Fund and proceeds of bonds sold in fiscal year 2011
2pursuant to Section 7.2 of the General Obligation Bond Act,
3less (i) the pro rata share of bond sale expenses determined by
4the System's share of total bond proceeds, (ii) any amounts
5received from the General Revenue Fund in fiscal year 2011, and
6(iii) any reduction in bond proceeds due to the issuance of
7discounted bonds, if applicable.
8    Beginning in State fiscal year 2046, the minimum State
9contribution for each fiscal year shall be the amount needed to
10maintain the total assets of the System at 90% of the total
11actuarial liabilities of the System.
12    Amounts received by the System pursuant to Section 25 of
13the Budget Stabilization Act or Section 8.12 of the State
14Finance Act in any fiscal year do not reduce and do not
15constitute payment of any portion of the minimum State
16contribution required under this Article in that fiscal year.
17Such amounts shall not reduce, and shall not be included in the
18calculation of, the required State contributions under this
19Article in any future year until the System has reached a
20funding ratio of at least 90%. A reference in this Article to
21the "required State contribution" or any substantially similar
22term does not include or apply to any amounts payable to the
23System under Section 25 of the Budget Stabilization Act.
24    Notwithstanding any other provision of this Section, the
25required State contribution for State fiscal year 2005 and for
26fiscal year 2008 and each fiscal year thereafter, as calculated

 

 

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1under this Section and certified under Section 15-165, shall
2not exceed an amount equal to (i) the amount of the required
3State contribution that would have been calculated under this
4Section for that fiscal year if the System had not received any
5payments under subsection (d) of Section 7.2 of the General
6Obligation Bond Act, minus (ii) the portion of the State's
7total debt service payments for that fiscal year on the bonds
8issued in fiscal year 2003 for the purposes of that Section
97.2, as determined and certified by the Comptroller, that is
10the same as the System's portion of the total moneys
11distributed under subsection (d) of Section 7.2 of the General
12Obligation Bond Act. In determining this maximum for State
13fiscal years 2008 through 2010, however, the amount referred to
14in item (i) shall be increased, as a percentage of the
15applicable employee payroll, in equal increments calculated
16from the sum of the required State contribution for State
17fiscal year 2007 plus the applicable portion of the State's
18total debt service payments for fiscal year 2007 on the bonds
19issued in fiscal year 2003 for the purposes of Section 7.2 of
20the General Obligation Bond Act, so that, by State fiscal year
212011, the State is contributing at the rate otherwise required
22under this Section.
23    (b) If an employee is paid from trust or federal funds, the
24employer shall pay to the Board contributions from those funds
25which are sufficient to cover the accruing normal costs on
26behalf of the employee. However, universities having employees

 

 

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1who are compensated out of local auxiliary funds, income funds,
2or service enterprise funds are not required to pay such
3contributions on behalf of those employees. The local auxiliary
4funds, income funds, and service enterprise funds of
5universities shall not be considered trust funds for the
6purpose of this Article, but funds of alumni associations,
7foundations, and athletic associations which are affiliated
8with the universities included as employers under this Article
9and other employers which do not receive State appropriations
10are considered to be trust funds for the purpose of this
11Article.
12    (b-1) The City of Urbana and the City of Champaign shall
13each make employer contributions to this System for their
14respective firefighter employees who participate in this
15System pursuant to subsection (h) of Section 15-107. The rate
16of contributions to be made by those municipalities shall be
17determined annually by the Board on the basis of the actuarial
18assumptions adopted by the Board and the recommendations of the
19actuary, and shall be expressed as a percentage of salary for
20each such employee. The Board shall certify the rate to the
21affected municipalities as soon as may be practical. The
22employer contributions required under this subsection shall be
23remitted by the municipality to the System at the same time and
24in the same manner as employee contributions.
25    (c) Through State fiscal year 1995: The total employer
26contribution shall be apportioned among the various funds of

 

 

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1the State and other employers, whether trust, federal, or other
2funds, in accordance with actuarial procedures approved by the
3Board. State of Illinois contributions for employers receiving
4State appropriations for personal services shall be payable
5from appropriations made to the employers or to the System. The
6contributions for Class I community colleges covering earnings
7other than those paid from trust and federal funds, shall be
8payable solely from appropriations to the Illinois Community
9College Board or the System for employer contributions.
10    (d) Beginning in State fiscal year 1996, the required State
11contributions to the System shall be appropriated directly to
12the System and shall be payable through vouchers issued in
13accordance with subsection (c) of Section 15-165, except as
14provided in subsection (g).
15    (e) The State Comptroller shall draw warrants payable to
16the System upon proper certification by the System or by the
17employer in accordance with the appropriation laws and this
18Code.
19    (f) Normal costs under this Section means liability for
20pensions and other benefits which accrues to the System because
21of the credits earned for service rendered by the participants
22during the fiscal year and expenses of administering the
23System, but shall not include the principal of or any
24redemption premium or interest on any bonds issued by the Board
25or any expenses incurred or deposits required in connection
26therewith.

 

 

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1    (g) If the amount of a participant's earnings for any
2academic year used to determine the final rate of earnings,
3determined on a full-time equivalent basis, exceeds the amount
4of his or her earnings with the same employer for the previous
5academic year, determined on a full-time equivalent basis, by
6more than 6%, the participant's employer shall pay to the
7System, in addition to all other payments required under this
8Section and in accordance with guidelines established by the
9System, the present value of the increase in benefits resulting
10from the portion of the increase in earnings that is in excess
11of 6%. This present value shall be computed by the System on
12the basis of the actuarial assumptions and tables used in the
13most recent actuarial valuation of the System that is available
14at the time of the computation. The System may require the
15employer to provide any pertinent information or
16documentation.
17    Whenever it determines that a payment is or may be required
18under this subsection (g), the System shall calculate the
19amount of the payment and bill the employer for that amount.
20The bill shall specify the calculations used to determine the
21amount due. If the employer disputes the amount of the bill, it
22may, within 30 days after receipt of the bill, apply to the
23System in writing for a recalculation. The application must
24specify in detail the grounds of the dispute and, if the
25employer asserts that the calculation is subject to subsection
26(h) or (i) of this Section, must include an affidavit setting

 

 

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1forth and attesting to all facts within the employer's
2knowledge that are pertinent to the applicability of subsection
3(h) or (i). Upon receiving a timely application for
4recalculation, the System shall review the application and, if
5appropriate, recalculate the amount due.
6    The employer contributions required under this subsection
7(g) (f) may be paid in the form of a lump sum within 90 days
8after receipt of the bill. If the employer contributions are
9not paid within 90 days after receipt of the bill, then
10interest will be charged at a rate equal to the System's annual
11actuarially assumed rate of return on investment compounded
12annually from the 91st day after receipt of the bill. Payments
13must be concluded within 3 years after the employer's receipt
14of the bill.
15    (h) This subsection (h) applies only to payments made or
16salary increases given on or after June 1, 2005 but before July
171, 2011. The changes made by Public Act 94-1057 shall not
18require the System to refund any payments received before July
1931, 2006 (the effective date of Public Act 94-1057).
20    When assessing payment for any amount due under subsection
21(g), the System shall exclude earnings increases paid to
22participants under contracts or collective bargaining
23agreements entered into, amended, or renewed before June 1,
242005.
25    When assessing payment for any amount due under subsection
26(g), the System shall exclude earnings increases paid to a

 

 

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1participant at a time when the participant is 10 or more years
2from retirement eligibility under Section 15-135.
3    When assessing payment for any amount due under subsection
4(g), the System shall exclude earnings increases resulting from
5overload work, including a contract for summer teaching, or
6overtime when the employer has certified to the System, and the
7System has approved the certification, that: (i) in the case of
8overloads (A) the overload work is for the sole purpose of
9academic instruction in excess of the standard number of
10instruction hours for a full-time employee occurring during the
11academic year that the overload is paid and (B) the earnings
12increases are equal to or less than the rate of pay for
13academic instruction computed using the participant's current
14salary rate and work schedule; and (ii) in the case of
15overtime, the overtime was necessary for the educational
16mission.
17    When assessing payment for any amount due under subsection
18(g), the System shall exclude any earnings increase resulting
19from (i) a promotion for which the employee moves from one
20classification to a higher classification under the State
21Universities Civil Service System, (ii) a promotion in academic
22rank for a tenured or tenure-track faculty position, or (iii) a
23promotion that the Illinois Community College Board has
24recommended in accordance with subsection (k) of this Section.
25These earnings increases shall be excluded only if the
26promotion is to a position that has existed and been filled by

 

 

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1a member for no less than one complete academic year and the
2earnings increase as a result of the promotion is an increase
3that results in an amount no greater than the average salary
4paid for other similar positions.
5    (i) When assessing payment for any amount due under
6subsection (g), the System shall exclude any salary increase
7described in subsection (h) of this Section given on or after
8July 1, 2011 but before July 1, 2014 under a contract or
9collective bargaining agreement entered into, amended, or
10renewed on or after June 1, 2005 but before July 1, 2011.
11Notwithstanding any other provision of this Section, any
12payments made or salary increases given after June 30, 2014
13shall be used in assessing payment for any amount due under
14subsection (g) of this Section.
15    (j) The System shall prepare a report and file copies of
16the report with the Governor and the General Assembly by
17January 1, 2007 that contains all of the following information:
18        (1) The number of recalculations required by the
19    changes made to this Section by Public Act 94-1057 for each
20    employer.
21        (2) The dollar amount by which each employer's
22    contribution to the System was changed due to
23    recalculations required by Public Act 94-1057.
24        (3) The total amount the System received from each
25    employer as a result of the changes made to this Section by
26    Public Act 94-4.

 

 

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1        (4) The increase in the required State contribution
2    resulting from the changes made to this Section by Public
3    Act 94-1057.
4    (k) The Illinois Community College Board shall adopt rules
5for recommending lists of promotional positions submitted to
6the Board by community colleges and for reviewing the
7promotional lists on an annual basis. When recommending
8promotional lists, the Board shall consider the similarity of
9the positions submitted to those positions recognized for State
10universities by the State Universities Civil Service System.
11The Illinois Community College Board shall file a copy of its
12findings with the System. The System shall consider the
13findings of the Illinois Community College Board when making
14determinations under this Section. The System shall not exclude
15any earnings increases resulting from a promotion when the
16promotion was not submitted by a community college. Nothing in
17this subsection (k) shall require any community college to
18submit any information to the Community College Board.
19    (l) For purposes of determining the required State
20contribution to the System, the value of the System's assets
21shall be equal to the actuarial value of the System's assets,
22which shall be calculated as follows:
23    As of June 30, 2008, the actuarial value of the System's
24assets shall be equal to the market value of the assets as of
25that date. In determining the actuarial value of the System's
26assets for fiscal years after June 30, 2008, any actuarial

 

 

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1gains or losses from investment return incurred in a fiscal
2year shall be recognized in equal annual amounts over the
35-year period following that fiscal year.
4    (m) For purposes of determining the required State
5contribution to the system for a particular year, the actuarial
6value of assets shall be assumed to earn a rate of return equal
7to the system's actuarially assumed rate of return.
8(Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11;
996-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-813, eff.
107-13-12; revised 10-17-12.)
 
11    (40 ILCS 5/15-157)  (from Ch. 108 1/2, par. 15-157)
12    Sec. 15-157. Employee Contributions.
13    (a) Each participating employee shall make contributions
14towards the retirement benefits payable under the retirement
15program applicable to the employee from each payment of
16earnings applicable to employment under this system on and
17after the date of becoming a participant as follows: Prior to
18September 1, 1949, 3 1/2% of earnings; from September 1, 1949
19to August 31, 1955, 5%; from September 1, 1955 to August 31,
201969, 6%; from September 1, 1969, 6 1/2%. These contributions
21are to be considered as normal contributions for purposes of
22this Article.
23    Each participant who is a police officer or firefighter
24shall make normal contributions of 8% of each payment of
25earnings applicable to employment as a police officer or

 

 

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1firefighter under this system on or after September 1, 1981,
2unless he or she files with the board within 60 days after the
3effective date of this amendatory Act of 1991 or 60 days after
4the board receives notice that he or she is employed as a
5police officer or firefighter, whichever is later, a written
6notice waiving the retirement formula provided by Rule 4 of
7Section 15-136. This waiver shall be irrevocable. If a
8participant had met the conditions set forth in Section
915-132.1 prior to the effective date of this amendatory Act of
101991 but failed to make the additional normal contributions
11required by this paragraph, he or she may elect to pay the
12additional contributions plus compound interest at the
13effective rate. If such payment is received by the board, the
14service shall be considered as police officer service in
15calculating the retirement annuity under Rule 4 of Section
1615-136. While performing service described in clause (i) or
17(ii) of Rule 4 of Section 15-136, a participating employee
18shall be deemed to be employed as a firefighter for the purpose
19of determining the rate of employee contributions under this
20Section.
21    (b) Starting September 1, 1969, each participating
22employee shall make additional contributions of 1/2 of 1% of
23earnings to finance a portion of the cost of the annual
24increases in retirement annuity provided under Section 15-136,
25except that with respect to participants in the self-managed
26plan this additional contribution shall be used to finance the

 

 

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1benefits obtained under that retirement program.
2    (c) In addition to the amounts described in subsections (a)
3and (b) of this Section, each participating employee shall make
4contributions of 1% of earnings applicable under this system on
5and after August 1, 1959. The contributions made under this
6subsection (c) shall be considered as survivor's insurance
7contributions for purposes of this Article if the employee is
8covered under the traditional benefit package, and such
9contributions shall be considered as additional contributions
10for purposes of this Article if the employee is participating
11in the self-managed plan or has elected to participate in the
12portable benefit package and has completed the applicable
13one-year waiting period. Contributions in excess of $80 during
14any fiscal year beginning before August 31, 1969 and in excess
15of $120 during any fiscal year thereafter until September 1,
161971 shall be considered as additional contributions for
17purposes of this Article.
18    (d) If the board by board rule so permits and subject to
19such conditions and limitations as may be specified in its
20rules, a participant may make other additional contributions of
21such percentage of earnings or amounts as the participant shall
22elect in a written notice thereof received by the board.
23    (e) That fraction of a participant's total accumulated
24normal contributions, the numerator of which is equal to the
25number of years of service in excess of that which is required
26to qualify for the maximum retirement annuity, and the

 

 

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1denominator of which is equal to the total service of the
2participant, shall be considered as accumulated additional
3contributions. The determination of the applicable maximum
4annuity and the adjustment in contributions required by this
5provision shall be made as of the date of the participant's
6retirement.
7    (f) Notwithstanding the foregoing, a participating
8employee shall not be required to make contributions under this
9Section after the date upon which continuance of such
10contributions would otherwise cause his or her retirement
11annuity to exceed the maximum retirement annuity as specified
12in clause (1) of subsection (c) of Section 15-136.
13    (g) A participating employee may make contributions for the
14purchase of service credit under this Article.
15    (h) A Tier 2 member shall not make contributions on
16earnings that exceed the limitation as prescribed under
17subsection (b) of Section 15-111 of this Article.
18(Source: P.A. 90-32, eff. 6-27-97; 90-65, eff. 7-7-97; 90-448,
19eff. 8-16-97; 90-511, eff. 8-22-97; 90-576, eff. 3-31-98;
2090-655, eff. 7-30-98; 90-766, eff. 8-14-98.)
 
21    (40 ILCS 5/15-158.2)
22    Sec. 15-158.2. Self-managed plan.
23    (a) Purpose. The General Assembly finds that it is
24important for colleges and universities to be able to attract
25and retain the most qualified employees and that in order to

 

 

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1attract and retain these employees, colleges and universities
2should have the flexibility to provide a defined contribution
3plan as an alternative for eligible employees who elect not to
4participate in a defined benefit retirement program provided
5under this Article. Accordingly, the State Universities
6Retirement System is hereby authorized to establish and
7administer a self-managed plan, which shall offer
8participating employees the opportunity to accumulate assets
9for retirement through a combination of employee and employer
10contributions that may be invested in mutual funds, collective
11investment funds, or other investment products and used to
12purchase annuity contracts, either fixed or variable or a
13combination thereof. The plan must be qualified under the
14Internal Revenue Code of 1986.
15    (b) Adoption by employers. Each employer subject to this
16Article may elect to adopt the self-managed plan established
17under this Section; this election is irrevocable. An employer's
18election to adopt the self-managed plan makes available to the
19eligible employees of that employer the elections described in
20Section 15-134.5.
21    The State Universities Retirement System shall be the plan
22sponsor for the self-managed plan and shall prepare a plan
23document and prescribe such rules and procedures as are
24considered necessary or desirable for the administration of the
25self-managed plan. Consistent with its fiduciary duty to the
26participants and beneficiaries of the self-managed plan, the

 

 

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1Board of Trustees of the System may delegate aspects of plan
2administration as it sees fit to companies authorized to do
3business in this State, to the employers, or to a combination
4of both.
5    (c) Selection of service providers and funding vehicles.
6The System, in consultation with the employers, shall solicit
7proposals to provide administrative services and funding
8vehicles for the self-managed plan from insurance and annuity
9companies and mutual fund companies, banks, trust companies, or
10other financial institutions authorized to do business in this
11State. In reviewing the proposals received and approving and
12contracting with no fewer than 2 and no more than 7 companies,
13the Board of Trustees of the System shall consider, among other
14things, the following criteria:
15        (1) the nature and extent of the benefits that would be
16    provided to the participants;
17        (2) the reasonableness of the benefits in relation to
18    the premium charged;
19        (3) the suitability of the benefits to the needs and
20    interests of the participating employees and the employer;
21        (4) the ability of the company to provide benefits
22    under the contract and the financial stability of the
23    company; and
24        (5) the efficacy of the contract in the recruitment and
25    retention of employees.
26    The System, in consultation with the employers, shall

 

 

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1periodically review each approved company. A company may
2continue to provide administrative services and funding
3vehicles for the self-managed plan only so long as it continues
4to be an approved company under contract with the Board.
5    (d) Employee Direction. Employees who are participating in
6the program must be allowed to direct the transfer of their
7account balances among the various investment options offered,
8subject to applicable contractual provisions. The participant
9shall not be deemed a fiduciary by reason of providing such
10investment direction. A person who is a fiduciary shall not be
11liable for any loss resulting from such investment direction
12and shall not be deemed to have breached any fiduciary duty by
13acting in accordance with that direction. Neither the System
14nor the employer guarantees any of the investments in the
15employee's account balances.
16    (e) Participation. An employee eligible to participate in
17the self-managed plan must make a written election in
18accordance with the provisions of Section 15-134.5 and the
19procedures established by the System. Participation in the
20self-managed plan by an electing employee shall begin on the
21first day of the first pay period following the later of the
22date the employee's election is filed with the System or the
23effective date as of which the employee's employer begins to
24offer participation in the self-managed plan. Employers may not
25make the self-managed plan available earlier than January 1,
261998. An employee's participation in any other retirement

 

 

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1program administered by the System under this Article shall
2terminate on the date that participation in the self-managed
3plan begins.
4    An employee who has elected to participate in the
5self-managed plan under this Section must continue
6participation while employed in an eligible position, and may
7not participate in any other retirement program administered by
8the System under this Article while employed by that employer
9or any other employer that has adopted the self-managed plan,
10unless the self-managed plan is terminated in accordance with
11subsection (i).
12    Notwithstanding any other provision of this Article, a Tier
132 member shall have the option to enroll in the self-managed
14plan.
15    Participation in the self-managed plan under this Section
16shall constitute membership in the State Universities
17Retirement System.
18    A participant under this Section shall be entitled to the
19benefits of Article 20 of this Code.
20    (f) Establishment of Initial Account Balance. If at the
21time an employee elects to participate in the self-managed plan
22he or she has rights and credits in the System due to previous
23participation in the traditional benefit package, the System
24shall establish for the employee an opening account balance in
25the self-managed plan, equal to the amount of contribution
26refund that the employee would be eligible to receive under

 

 

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1Section 15-154 if the employee terminated employment on that
2date and elected a refund of contributions, except that this
3hypothetical refund shall include interest at the effective
4rate for the respective years. The System shall transfer assets
5from the defined benefit retirement program to the self-managed
6plan, as a tax free transfer in accordance with Internal
7Revenue Service guidelines, for purposes of funding the
8employee's opening account balance.
9    (g) No Duplication of Service Credit. Notwithstanding any
10other provision of this Article, an employee may not purchase
11or receive service or service credit applicable to any other
12retirement program administered by the System under this
13Article for any period during which the employee was a
14participant in the self-managed plan established under this
15Section.
16    (h) Contributions. The self-managed plan shall be funded by
17contributions from employees participating in the self-managed
18plan and employer contributions as provided in this Section.
19    The contribution rate for employees participating in the
20self-managed plan under this Section shall be equal to the
21employee contribution rate for other participants in the
22System, as provided in Section 15-157. This required
23contribution shall be made as an "employer pick-up" under
24Section 414(h) of the Internal Revenue Code of 1986 or any
25successor Section thereof. Any employee participating in the
26System's traditional benefit package prior to his or her

 

 

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1election to participate in the self-managed plan shall continue
2to have the employer pick up the contributions required under
3Section 15-157. However, the amounts picked up after the
4election of the self-managed plan shall be remitted to and
5treated as assets of the self-managed plan. In no event shall
6an employee have an option of receiving these amounts in cash.
7Employees may make additional contributions to the
8self-managed plan in accordance with procedures prescribed by
9the System, to the extent permitted under rules prescribed by
10the System.
11    The program shall provide for employer contributions to be
12credited to each self-managed plan participant at a rate of
137.6% of the participating employee's salary, less the amount
14used by the System to provide disability benefits for the
15employee. The amounts so credited shall be paid into the
16participant's self-managed plan accounts in a manner to be
17prescribed by the System.
18    An amount of employer contribution, not exceeding 1% of the
19participating employee's salary, shall be used for the purpose
20of providing the disability benefits of the System to the
21employee. Prior to the beginning of each plan year under the
22self-managed plan, the Board of Trustees shall determine, as a
23percentage of salary, the amount of employer contributions to
24be allocated during that plan year for providing disability
25benefits for employees in the self-managed plan.
26    The State of Illinois shall make contributions by

 

 

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1appropriations to the System of the employer contributions
2required for employees who participate in the self-managed plan
3under this Section. The amount required shall be certified by
4the Board of Trustees of the System and paid by the State in
5accordance with Section 15-165. The System shall not be
6obligated to remit the required employer contributions to any
7of the insurance and annuity companies, mutual fund companies,
8banks, trust companies, financial institutions, or other
9sponsors of any of the funding vehicles offered under the
10self-managed plan until it has received the required employer
11contributions from the State. In the event of a deficiency in
12the amount of State contributions, the System shall implement
13those procedures described in subsection (c) of Section 15-165
14to obtain the required funding from the General Revenue Fund.
15    (i) Termination. The self-managed plan authorized under
16this Section may be terminated by the System, subject to the
17terms of any relevant contracts, and the System shall have no
18obligation to reestablish the self-managed plan under this
19Section. This Section does not create a right to continued
20participation in any self-managed plan set up by the System
21under this Section. If the self-managed plan is terminated, the
22participants shall have the right to participate in one of the
23other retirement programs offered by the System and receive
24service credit in such other retirement program for any years
25of employment following the termination.
26    (j) Vesting; Withdrawal; Return to Service. A participant

 

 

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1in the self-managed plan becomes vested in the employer
2contributions credited to his or her accounts in the
3self-managed plan on the earliest to occur of the following:
4(1) completion of 5 years of service with an employer described
5in Section 15-106; (2) the death of the participating employee
6while employed by an employer described in Section 15-106, if
7the participant has completed at least 1 1/2 years of service;
8or (3) the participant's election to retire and apply the
9reciprocal provisions of Article 20 of this Code.
10    A participant in the self-managed plan who receives a
11distribution of his or her vested amounts from the self-managed
12plan while not yet eligible for retirement under this Article
13(and Article 20, if applicable) shall forfeit all service
14credit and accrued rights in the System; if subsequently
15re-employed, the participant shall be considered a new
16employee. If a former participant again becomes a participating
17employee (or becomes employed by a participating system under
18Article 20 of this Code) and continues as such for at least 2
19years, all such rights, service credits, and previous status as
20a participant shall be restored upon repayment of the amount of
21the distribution, without interest.
22    (k) Benefit amounts. If an employee who is vested in
23employer contributions terminates employment, the employee
24shall be entitled to a benefit which is based on the account
25values attributable to both employer and employee
26contributions and any investment return thereon.

 

 

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1    If an employee who is not vested in employer contributions
2terminates employment, the employee shall be entitled to a
3benefit based solely on the account values attributable to the
4employee's contributions and any investment return thereon,
5and the employer contributions and any investment return
6thereon shall be forfeited. Any employer contributions which
7are forfeited shall be held in escrow by the company investing
8those contributions and shall be used as directed by the System
9for future allocations of employer contributions or for the
10restoration of amounts previously forfeited by former
11participants who again become participating employees.
12(Source: P.A. 93-347, eff. 7-24-03.)
 
13    (40 ILCS 5/15-159)  (from Ch. 108 1/2, par. 15-159)
14    Sec. 15-159. Board created.
15    (a) A board of trustees constituted as provided in this
16Section shall administer this System. The board shall be known
17as the Board of Trustees of the State Universities Retirement
18System.
19    (b) (Blank). Until July 1, 1995, the Board of Trustees
20shall be constituted as follows:
21    Two trustees shall be members of the Board of Trustees of
22the University of Illinois, one shall be a member of the Board
23of Trustees of Southern Illinois University, one shall be a
24member of the Board of Trustees of Chicago State University,
25one shall be a member of the Board of Trustees of Eastern

 

 

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1Illinois University, one shall be a member of the Board of
2Trustees of Governors State University, one shall be a member
3of the Board of Trustees of Illinois State University, one
4shall be a member of the Board of Trustees of Northeastern
5Illinois University, one shall be a member of the Board of
6Trustees of Northern Illinois University, one shall be a member
7of the Board of Trustees of Western Illinois University, and
8one shall be a member of the Illinois Community College Board,
9selected in each case by their respective boards, and 2 shall
10be participants of the system appointed by the Governor for a 6
11year term with the first appointment made pursuant to this
12amendatory Act of 1984 to be effective September 1, 1985, and
13one shall be a participant appointed by the Illinois Community
14College Board for a 6 year term, and one shall be a participant
15appointed by the Board of Trustees of the University of
16Illinois for a 6 year term, and one shall be a participant or
17annuitant of the system who is a senior citizen age 60 or older
18appointed by the Governor for a 6 year term with the first
19appointment to be effective September 1, 1985.
20    The terms of all trustees holding office under this
21subsection (b) on June 30, 1995 shall terminate at the end of
22that day and the Board shall thereafter be constituted as
23provided in subsection (c).
24    (c) (Blank). Beginning July 1, 1995, the Board of Trustees
25shall be constituted as follows:
26    The Board shall consist of 9 trustees appointed by the

 

 

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1Governor. Two of the trustees, designated at the time of
2appointment, shall be participants of the System. Two of the
3trustees, designated at the time of appointment, shall be
4annuitants of the System who are receiving retirement annuities
5under this Article. The 5 remaining trustees may, but need not,
6be participants or annuitants of the System.
7    The term of office of trustees appointed under this
8subsection (c) shall be 6 years, beginning on July 1. However,
9of the initial trustees appointed under this subsection (c), 3
10shall be appointed for terms of 2 years, 3 shall be appointed
11for terms of 4 years, and 3 shall be appointed for terms of 6
12years, to be designated by the Governor at the time of
13appointment.
14    The terms of all trustees holding office under this
15subsection (c) on the effective date of this amendatory Act of
16the 96th General Assembly shall terminate on that effective
17date. The Governor shall make nominations for appointment under
18this Section within 60 days after the effective date of this
19amendatory Act of the 96th General Assembly. A trustee sitting
20on the board on the effective date of this amendatory Act of
21the 96th General Assembly may not hold over in office for more
22than 90 days after the effective date of this amendatory Act of
23the 96th General Assembly. Nothing in this Section shall
24prevent the Governor from making a temporary appointment or
25nominating a trustee holding office on the day before the
26effective date of this amendatory Act of the 96th General

 

 

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1Assembly.
2    (d) Beginning on the 90th day after April 3, 2009 (the
3effective date of Public Act 96-6) this amendatory Act of the
496th General Assembly, the Board of Trustees shall be
5constituted as follows:
6        (1) The Chairperson of the Board of Higher Education,
7    who shall act as chairperson of this Board.
8        (2) Four trustees appointed by the Governor with the
9    advice and consent of the Senate who may not be members of
10    the system or hold an elective State office and who shall
11    serve for a term of 6 years, except that the terms of the
12    initial appointees under this subsection (d) shall be as
13    follows: 2 for a term of 3 years and 2 for a term of 6
14    years.
15        (3) Four active participants of the system to be
16    elected from the contributing membership of the system by
17    the contributing members, no more than 2 of which may be
18    from any of the University of Illinois campuses, who shall
19    serve for a term of 6 years, except that the terms of the
20    initial electees shall be as follows: 2 for a term of 3
21    years and 2 for a term of 6 years.
22        (4) Two annuitants of the system who have been
23    annuitants for at least one full year, to be elected from
24    and by the annuitants of the system, no more than one of
25    which may be from any of the University of Illinois
26    campuses, who shall serve for a term of 6 years, except

 

 

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1    that the terms of the initial electees shall be as follows:
2    one for a term of 3 years and one for a term of 6 years.
3    For the purposes of this Section, the Governor may make a
4nomination and the Senate may confirm the nominee in advance of
5the commencement of the nominee's term of office.
6    (e) The 6 elected trustees shall be elected within 90 days
7after April 3, 2009 (the effective date of Public Act 96-6)
8this amendatory Act of the 96th General Assembly for a term
9beginning on the 90th day after that the effective date of this
10amendatory Act. Trustees shall be elected thereafter as terms
11expire for a 6-year term beginning July 15 next following their
12election, and such election shall be held on May 1, or on May 2
13when May 1 falls on a Sunday. The board may establish rules for
14the election of trustees to implement the provisions of Public
15Act 96-6 this amendatory Act of the 96th General Assembly and
16for future elections. Candidates for the participating trustee
17shall be nominated by petitions in writing, signed by not less
18than 400 participants with their addresses shown opposite their
19names. Candidates for the annuitant trustee shall be nominated
20by petitions in writing, signed by not less than 100 annuitants
21with their addresses shown opposite their names. If there is
22more than one qualified nominee for each elected trustee, then
23the board shall conduct a secret ballot election by mail for
24that trustee, in accordance with rules as established by the
25board. If there is only one qualified person nominated by
26petition for each elected trustee, then the election as

 

 

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1required by this Section shall not be conducted for that
2trustee and the board shall declare such nominee duly elected.
3A vacancy occurring in the elective membership of the board
4shall be filled for the unexpired term by the elected trustees
5serving on the board for the remainder of the term. Nothing in
6this subsection shall preclude the adoption of rules providing
7for internet or phone balloting in addition, or as an
8alternative, to election by mail.
9    (f) A vacancy in the appointed membership on the board of
10trustees caused by resignation, death, expiration of term of
11office, or other reason shall be filled by a qualified person
12appointed by the Governor for the remainder of the unexpired
13term.
14    (g) Trustees (other than the trustees incumbent on June 30,
151995 or as provided in subsection (c) of this Section) shall
16continue in office until their respective successors are
17appointed and have qualified, except that a trustee appointed
18to one of the participant positions shall be disqualified
19immediately upon the termination of his or her status as a
20participant and a trustee appointed to one of the annuitant
21positions shall be disqualified immediately upon the
22termination of his or her status as an annuitant receiving a
23retirement annuity.
24    (h) Each trustee must take an oath of office before a
25notary public of this State and shall qualify as a trustee upon
26the presentation to the board of a certified copy of the oath.

 

 

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1The oath must state that the person will diligently and
2honestly administer the affairs of the retirement system, and
3will not knowingly violate or willfully wilfully permit to be
4violated any provisions of this Article.
5    Each trustee shall serve without compensation but shall be
6reimbursed for expenses necessarily incurred in attending
7board meetings and carrying out his or her duties as a trustee
8or officer of the system.
9    (i) This amendatory Act of 1995 is intended to supersede
10the changes made to this Section by Public Act 89-4.
11(Source: P.A. 96-6, eff. 4-3-09; 96-1000, eff. 7-2-10.)
 
12    (40 ILCS 5/15-162)  (from Ch. 108 1/2, par. 15-162)
13    Sec. 15-162. To hold meetings.
14    To hold regular meetings at least quarterly in each year
15and special meetings at such times as the chairperson president
16or a majority of the board deem necessary.
17(Source: Laws 1963, p. 161.)
 
18    (40 ILCS 5/15-165)   (from Ch. 108 1/2, par. 15-165)
19    Sec. 15-165. To certify amounts and submit vouchers.
20    (a) The Board shall certify to the Governor on or before
21November 15 of each year until November 15, 2011 the
22appropriation required from State funds for the purposes of
23this System for the following fiscal year. The certification
24under this subsection (a) shall include a copy of the actuarial

 

 

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1recommendations upon which it is based and shall specifically
2identify the System's projected State normal cost for that
3fiscal year and the projected State cost for the self-managed
4plan for that fiscal year.
5    On or before May 1, 2004, the Board shall recalculate and
6recertify to the Governor the amount of the required State
7contribution to the System for State fiscal year 2005, taking
8into account the amounts appropriated to and received by the
9System under subsection (d) of Section 7.2 of the General
10Obligation Bond Act.
11    On or before July 1, 2005, the Board shall recalculate and
12recertify to the Governor the amount of the required State
13contribution to the System for State fiscal year 2006, taking
14into account the changes in required State contributions made
15by this amendatory Act of the 94th General Assembly.
16    On or before April 1, 2011, the Board shall recalculate and
17recertify to the Governor the amount of the required State
18contribution to the System for State fiscal year 2011, applying
19the changes made by Public Act 96-889 to the System's assets
20and liabilities as of June 30, 2009 as though Public Act 96-889
21was approved on that date.
22    (a-5) On or before November 1 of each year, beginning
23November 1, 2012, the Board shall submit to the State Actuary,
24the Governor, and the General Assembly a proposed certification
25of the amount of the required State contribution to the System
26for the next fiscal year, along with all of the actuarial

 

 

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1assumptions, calculations, and data upon which that proposed
2certification is based. On or before January 1 of each year,
3beginning January 1, 2013, the State Actuary shall issue a
4preliminary report concerning the proposed certification and
5identifying, if necessary, recommended changes in actuarial
6assumptions that the Board must consider before finalizing its
7certification of the required State contributions. On or before
8January 15, 2013 and each January 15 thereafter, the Board
9shall certify to the Governor and the General Assembly the
10amount of the required State contribution for the next fiscal
11year. The Board's certification must note, in a written
12response to the State Actuary, any deviations from the State
13Actuary's recommended changes, the reason or reasons for not
14following the State Actuary's recommended changes, and the
15fiscal impact of not following the State Actuary's recommended
16changes on the required State contribution.
17    (b) The Board shall certify to the State Comptroller or
18employer, as the case may be, from time to time, by its
19chairperson president and secretary, with its seal attached,
20the amounts payable to the System from the various funds.
21    (c) Beginning in State fiscal year 1996, on or as soon as
22possible after the 15th day of each month the Board shall
23submit vouchers for payment of State contributions to the
24System, in a total monthly amount of one-twelfth of the
25required annual State contribution certified under subsection
26(a). From the effective date of this amendatory Act of the 93rd

 

 

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1General Assembly through June 30, 2004, the Board shall not
2submit vouchers for the remainder of fiscal year 2004 in excess
3of the fiscal year 2004 certified contribution amount
4determined under this Section after taking into consideration
5the transfer to the System under subsection (b) of Section
66z-61 of the State Finance Act. These vouchers shall be paid by
7the State Comptroller and Treasurer by warrants drawn on the
8funds appropriated to the System for that fiscal year.
9    If in any month the amount remaining unexpended from all
10other appropriations to the System for the applicable fiscal
11year (including the appropriations to the System under Section
128.12 of the State Finance Act and Section 1 of the State
13Pension Funds Continuing Appropriation Act) is less than the
14amount lawfully vouchered under this Section, the difference
15shall be paid from the General Revenue Fund under the
16continuing appropriation authority provided in Section 1.1 of
17the State Pension Funds Continuing Appropriation Act.
18    (d) So long as the payments received are the full amount
19lawfully vouchered under this Section, payments received by the
20System under this Section shall be applied first toward the
21employer contribution to the self-managed plan established
22under Section 15-158.2. Payments shall be applied second toward
23the employer's portion of the normal costs of the System, as
24defined in subsection (f) of Section 15-155. The balance shall
25be applied toward the unfunded actuarial liabilities of the
26System.

 

 

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1    (e) In the event that the System does not receive, as a
2result of legislative enactment or otherwise, payments
3sufficient to fully fund the employer contribution to the
4self-managed plan established under Section 15-158.2 and to
5fully fund that portion of the employer's portion of the normal
6costs of the System, as calculated in accordance with Section
715-155(a-1), then any payments received shall be applied
8proportionately to the optional retirement program established
9under Section 15-158.2 and to the employer's portion of the
10normal costs of the System, as calculated in accordance with
11Section 15-155(a-1).
12(Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11;
1397-694, eff. 6-18-12.)
 
14    (40 ILCS 5/15-168)  (from Ch. 108 1/2, par. 15-168)
15    Sec. 15-168. To require information.
16    To require such information as shall be necessary for the
17proper operation of the system from any participant or ,
18beneficiary or from any employer of a participant officer,
19department head or other person or persons in authority, as the
20case may be, of any employer.
21(Source: Laws 1963, p. 161.)
 
22    (40 ILCS 5/15-169)  (from Ch. 108 1/2, par. 15-169)
23    Sec. 15-169. To elect officers and appoint employees. To
24elect officers; to appoint a secretary and treasurer; to have a

 

 

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1seal; to employ and fix the rate of pay of such actuarial,
2legal, clerical, audit, or medical, or other services, or
3corporate trustee organized under the laws of this State with a
4capital of not less than $1,000,000, or investment counsel and
5other persons as shall be required for the efficient
6administration of the system. All actions brought by or against
7the board shall be prosecuted or defended by the Attorney
8General or by other counsel, as the board may decide.
9(Source: P.A. 83-1440.)
 
10    (40 ILCS 5/15-171)  (from Ch. 108 1/2, par. 15-171)
11    Sec. 15-171. To receive, record and deposit payments.
12    To receive all payments made to the system; to make a
13record thereof; and to cause all payments to be deposited
14immediately with the treasurer of the system. The Board may
15delegate the actions prescribed under this Section to persons
16employed by the System.
17(Source: Laws 1963, p. 161.)
 
18    (40 ILCS 5/15-172)  (from Ch. 108 1/2, par. 15-172)
19    Sec. 15-172. To certify warrants, checks, or drafts. To
20provide for certification on its behalf by its president and
21secretary of all warrants, checks, or drafts upon its
22depository bank or corporate trustee upon its treasurer in
23accordance with the by-laws and actions of the board
24authorizing payments for benefits, expenses, investments and

 

 

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1debt service, including any redemption premium and required
2deposits for any bonds of the board, out of funds belonging to
3this system.
4(Source: P.A. 86-1034.)
 
5    (40 ILCS 5/15-177)  (from Ch. 108 1/2, par. 15-177)
6    Sec. 15-177. To make rules.
7    To establish by-laws; to fix the number necessary for a
8quorum; to set up an executive committee of its members to
9exercise all powers of the board except as limited by the
10board; to establish rules and regulations, not inconsistent
11with the provisions of this Article, as are necessary for the
12administration of the system; and generally to carry on any
13other reasonable activities which are deemed necessary to
14accomplish the purposes of this system, including without
15limitation the time and manner of reporting contributions by
16participants and, if applicable, contributions by employers.
17(Source: Laws 1963, p. 161.)
 
18    (40 ILCS 5/16-106.6 new)
19    Sec. 16-106.6. Teacher certification. For purposes of this
20Article, a teacher shall be deemed to be certificated if he or
21she is required to be licensed by the Illinois State Board of
22Education.
 
23    (40 ILCS 5/16-152)  (from Ch. 108 1/2, par. 16-152)

 

 

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1    Sec. 16-152. Contributions by members.
2    (a) Each member shall make contributions for membership
3service to this System as follows:
4        (1) Effective July 1, 1998, contributions of 7.50% of
5    salary towards the cost of the retirement annuity. Such
6    contributions shall be deemed "normal contributions".
7        (2) Effective July 1, 1969, contributions of 1/2 of 1%
8    of salary toward the cost of the automatic annual increase
9    in retirement annuity provided under Section 16-133.1.
10        (3) Effective July 24, 1959, contributions of 1% of
11    salary towards the cost of survivor benefits. Such
12    contributions shall not be credited to the individual
13    account of the member and shall not be subject to refund
14    except as provided under Section 16-143.2.
15        (4) Effective July 1, 2005, contributions of 0.40% of
16    salary toward the cost of the early retirement without
17    discount option provided under Section 16-133.2. This
18    contribution shall cease upon termination of the early
19    retirement without discount option as provided in Section
20    16-176.
21    (b) The minimum required contribution for any year of
22full-time teaching service shall be $192.
23    (c) Contributions shall not be required of any annuitant
24receiving a retirement annuity who is given employment as
25permitted under Section 16-118 or 16-150.1.
26    (d) A person who (i) was a member before July 1, 1998, (ii)

 

 

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1retires with more than 34 years of creditable service, and
2(iii) does not elect to qualify for the augmented rate under
3Section 16-129.1 shall be entitled, at the time of retirement,
4to receive a partial refund of contributions made under this
5Section for service occurring after the later of June 30, 1998
6or attainment of 34 years of creditable service, in an amount
7equal to 1.00% of the salary upon which those contributions
8were based.
9    (e) A member's contributions toward the cost of early
10retirement without discount made under item (a)(4) of this
11Section shall not be refunded if the member has elected early
12retirement without discount under Section 16-133.2 and has
13begun to receive a retirement annuity under this Article
14calculated in accordance with that election. Otherwise, a
15member's contributions toward the cost of early retirement
16without discount made under item (a)(4) of this Section shall
17be refunded according to whichever one of the following
18circumstances occurs first:
19        (1) The contributions shall be refunded to the member,
20    without interest, within 120 days after the member's
21    retirement annuity commences, if the member does not elect
22    early retirement without discount under Section 16-133.2.
23        (2) The contributions shall be included, without
24    interest, in any refund claimed by the member under Section
25    16-151.
26        (3) The contributions shall be refunded to the member's

 

 

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1    designated beneficiary (or if there is no beneficiary, to
2    the member's estate), without interest, if the member dies
3    without having begun to receive a retirement annuity under
4    this Article.
5        (4) The contributions shall be refunded to the member,
6    without interest, if within 120 days after the early
7    retirement without discount option provided under Section
8    16-133.2 is terminated under Section 16-176. In that event,
9    the System shall provide to the member, within 120 days
10    after the option is terminated, an application for a refund
11    of those contributions.
12(Source: P.A. 93-320, eff. 7-23-03; 94-4, eff. 6-1-05.)
 
13    Section 99. Effective date. This Act takes effect upon
14becoming law.

 

 

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1 INDEX
2 Statutes amended in order of appearance
3    40 ILCS 5/1-160
4    40 ILCS 5/15-102from Ch. 108 1/2, par. 15-102
5    40 ILCS 5/15-108.1 new
6    40 ILCS 5/15-108.2 new
7    40 ILCS 5/15-111from Ch. 108 1/2, par. 15-111
8    40 ILCS 5/15-112from Ch. 108 1/2, par. 15-112
9    40 ILCS 5/15-113.6from Ch. 108 1/2, par. 15-113.6
10    40 ILCS 5/15-134from Ch. 108 1/2, par. 15-134
11    40 ILCS 5/15-135from Ch. 108 1/2, par. 15-135
12    40 ILCS 5/15-136from Ch. 108 1/2, par. 15-136
13    40 ILCS 5/15-136.3
14    40 ILCS 5/15-139from Ch. 108 1/2, par. 15-139
15    40 ILCS 5/15-139.1 new
16    40 ILCS 5/15-145from Ch. 108 1/2, par. 15-145
17    40 ILCS 5/15-145.1 new
18    40 ILCS 5/15-146from Ch. 108 1/2, par. 15-146
19    40 ILCS 5/15-146.1from Ch. 108 1/2, par. 15-146.1
20    40 ILCS 5/15-155from Ch. 108 1/2, par. 15-155
21    40 ILCS 5/15-157from Ch. 108 1/2, par. 15-157
22    40 ILCS 5/15-158.2
23    40 ILCS 5/15-159from Ch. 108 1/2, par. 15-159
24    40 ILCS 5/15-163from Ch. 108 1/2, par. 15-163
25    40 ILCS 5/15-168from Ch. 108 1/2, par. 15-168

 

 

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1    40 ILCS 5/15-171from Ch. 108 1/2, par. 15-171
2    40 ILCS 5/15-172from Ch. 108 1/2, par. 15-172
3    40 ILCS 5/15-177from Ch. 108 1/2, par. 15-177
4    40 ILCS 5/15-177.1 new