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1 | AN ACT concerning public employee benefits.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Governor's Office of Management and Budget | ||||||||||||||||||||||||
5 | Act is amended by changing Sections 7 and 8 as follows:
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6 | (20 ILCS 3005/7) (from Ch. 127, par. 417)
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7 | Sec. 7.
All statements and estimates of expenditures | ||||||||||||||||||||||||
8 | submitted to the
Office in connection with the preparation of a | ||||||||||||||||||||||||
9 | State budget, and any other
estimates of expenditures, | ||||||||||||||||||||||||
10 | supporting requests for appropriations, shall be
formulated | ||||||||||||||||||||||||
11 | according to the various functions and activities for which the
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12 | respective department, office or institution of the State | ||||||||||||||||||||||||
13 | government
(including the elective officers in the executive | ||||||||||||||||||||||||
14 | department and including
the University of Illinois and the | ||||||||||||||||||||||||
15 | judicial department) is responsible. All
such statements and | ||||||||||||||||||||||||
16 | estimates of expenditures relating to a particular
function or | ||||||||||||||||||||||||
17 | activity shall be further formulated or subject to analysis in
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18 | accordance with the following classification of objects:
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19 | (1) Personal services
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20 | (2) State contribution for employee group insurance
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21 | (3) Contractual services
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22 | (4) Travel
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23 | (5) Commodities
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| |||||||
1 | (6) Equipment
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2 | (7) Permanent improvements
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3 | (8) Land
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4 | (9) Electronic Data Processing
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5 | (10) Telecommunication services
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6 | (11) Operation of Automotive Equipment
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7 | (12) Contingencies
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8 | (13) Reserve
| ||||||
9 | (14) Interest
| ||||||
10 | (15) Awards and Grants
| ||||||
11 | (16) Debt Retirement
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12 | (17) Non-cost Charges .
| ||||||
13 | (18) State retirement contribution for annual normal cost | ||||||
14 | (19) State retirement contribution for unfunded accrued | ||||||
15 | liability. | ||||||
16 | (Source: P.A. 93-25, eff. 6-20-03 .)
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17 | (20 ILCS 3005/8) (from Ch. 127, par. 418)
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18 | Sec. 8.
When used in connection with a State budget or | ||||||
19 | expenditure or
estimate, items (1) through (16) in the | ||||||
20 | classification of objects stated in
Section 7 shall have the | ||||||
21 | meanings ascribed to those items in Sections 14
through 24.7, | ||||||
22 | respectively, of the State Finance Act. "An Act in relation to | ||||||
23 | State finance",
approved June 10, 1919, as amended.
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24 | When used in connection with a State budget or expenditure | ||||||
25 | or
estimate, items (18) and (19) in the classification of |
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1 | objects stated in
Section 7 shall have the meanings ascribed to | ||||||
2 | those items in Sections 24.12 and 24.13, respectively, of the | ||||||
3 | State Finance Act. | ||||||
4 | (Source: P.A. 82-325.)
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5 | Section 10. The State Finance Act is amended by changing | ||||||
6 | Section 13 and by adding Sections 24.12 and 24.13 as follows:
| ||||||
7 | (30 ILCS 105/13) (from Ch. 127, par. 149)
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8 | Sec. 13.
The objects and purposes for which appropriations | ||||||
9 | are made
are classified and standardized by items as follows:
| ||||||
10 | (1) Personal services;
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11 | (2) State contribution for employee group insurance;
| ||||||
12 | (3) Contractual services;
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13 | (4) Travel;
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14 | (5) Commodities;
| ||||||
15 | (6) Equipment;
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16 | (7) Permanent improvements;
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17 | (8) Land;
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18 | (9) Electronic Data Processing;
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19 | (10) Operation of automotive equipment;
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20 | (11) Telecommunications services;
| ||||||
21 | (12) Contingencies;
| ||||||
22 | (13) Reserve;
| ||||||
23 | (14) Interest;
| ||||||
24 | (15) Awards and Grants;
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1 | (16) Debt Retirement;
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2 | (17) Non-Cost Charges;
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3 | (18) State retirement contribution for annual normal cost; | ||||||
4 | (19) State retirement contribution for unfunded accrued | ||||||
5 | liability; | ||||||
6 | (20) (18) Purchase Contract for Real Estate.
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7 | When an appropriation is made to an officer, department, | ||||||
8 | institution,
board, commission or other agency, or to a private | ||||||
9 | association or
corporation, in one or more of the items above | ||||||
10 | specified, such
appropriation shall be construed in accordance | ||||||
11 | with the definitions and
limitations specified in this Act, | ||||||
12 | unless the appropriation act
otherwise provides.
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13 | An appropriation for a purpose other than one specified and | ||||||
14 | defined
in this Act may be made only as an additional, separate | ||||||
15 | and distinct
item, specifically stating the object and purpose | ||||||
16 | thereof.
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17 | (Source: P.A. 84-263; 84-264.)
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18 | (30 ILCS 105/24.12 new) | ||||||
19 | Sec. 24.12. "State retirement contribution for annual | ||||||
20 | normal cost" defined. The term "State retirement contribution | ||||||
21 | for annual normal cost" means the portion of the total required | ||||||
22 | State contribution to a retirement system for a fiscal year | ||||||
23 | that represents the State's portion of the System's projected | ||||||
24 | normal cost for that fiscal year, as determined and certified | ||||||
25 | by the board of trustees of the retirement system in |
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1 | conformance with the applicable provisions of the Illinois | ||||||
2 | Pension Code. | ||||||
3 | (30 ILCS 105/24.13 new) | ||||||
4 | Sec. 24.13. "State retirement contribution for unfunded | ||||||
5 | accrued liability" defined. The term "State retirement | ||||||
6 | contribution for unfunded accrued liability" means the portion | ||||||
7 | of the total required State contribution to a retirement system | ||||||
8 | for a fiscal year that is not included in the State retirement | ||||||
9 | contribution for annual normal cost. | ||||||
10 | Section 15. The Budget Stabilization Act is amended by | ||||||
11 | changing Section 20 as follows: | ||||||
12 | (30 ILCS 122/20) | ||||||
13 | Sec. 20. Pension Stabilization Fund. | ||||||
14 | (a) The Pension Stabilization Fund is hereby created as a | ||||||
15 | special fund in the State treasury. Moneys in the fund shall be | ||||||
16 | used for the sole purpose of making payments to the designated | ||||||
17 | retirement systems as provided in Section 25.
| ||||||
18 | (b) For each fiscal year when the General Assembly's
| ||||||
19 | appropriations and transfers or diversions as required by law
| ||||||
20 | from general funds do not exceed 99% of the
estimated general | ||||||
21 | funds revenues pursuant to subsection (a)
of Section 10, the | ||||||
22 | Comptroller shall transfer from the
General Revenue Fund as | ||||||
23 | provided by this Section a total
amount equal to 0.5% of the |
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| |||||||
1 | estimated general funds revenues
to the Pension Stabilization | ||||||
2 | Fund. | ||||||
3 | (c) For each fiscal year through State fiscal year 2013, | ||||||
4 | when the General Assembly's
appropriations and transfers or | ||||||
5 | diversions as required by law
from general funds do not exceed | ||||||
6 | 98% of the
estimated general funds revenues pursuant to | ||||||
7 | subsection (b)
of Section 10, the Comptroller shall transfer | ||||||
8 | from the
General Revenue Fund as provided by this Section a | ||||||
9 | total
amount equal to 1.0% of the estimated general funds | ||||||
10 | revenues
to the Pension Stabilization Fund. | ||||||
11 | (c-10) In State fiscal year 2020 and each fiscal year | ||||||
12 | thereafter, the State Comptroller shall order transferred and | ||||||
13 | the State Treasurer shall transfer $1,000,000,000 from the | ||||||
14 | General Revenue Fund to the Pension Stabilization Fund. | ||||||
15 | (c-15) The transfers made pursuant to subsection (c-10) of | ||||||
16 | this Section shall continue through State fiscal year 2045 or | ||||||
17 | until each of the designated retirement systems, as defined in | ||||||
18 | Section 25, has achieved the funding ratio prescribed by law | ||||||
19 | for that retirement system, whichever occurs first; provided | ||||||
20 | that those transfers shall not be made after any provision of | ||||||
21 | this Act that is designated as inseverable in Section 97 of | ||||||
22 | this Act is declared to be unconstitutional or invalid other | ||||||
23 | than as applied. | ||||||
24 | (d) The Comptroller shall transfer 1/12 of the total
amount | ||||||
25 | to be transferred each fiscal year under this Section
into the | ||||||
26 | Pension Stabilization Fund on the first day of each
month of |
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1 | that fiscal year or as soon thereafter as possible; except that | ||||||
2 | the final transfer of the fiscal year shall be made as soon as | ||||||
3 | practical after the August 31 following the end of the fiscal | ||||||
4 | year. | ||||||
5 | Until State fiscal year 2014, before Before the final | ||||||
6 | transfer for a fiscal year is made, the Comptroller shall | ||||||
7 | reconcile the estimated general funds revenues used in | ||||||
8 | calculating the other transfers under this Section for that | ||||||
9 | fiscal year with the actual general funds revenues for that | ||||||
10 | fiscal year. The
final transfer for the fiscal year shall be | ||||||
11 | adjusted so that the
total amount transferred under this | ||||||
12 | Section for that fiscal year is equal to the percentage | ||||||
13 | specified in subsection
(b) or (c) of this Section, whichever | ||||||
14 | is applicable, of the actual
general funds revenues for that | ||||||
15 | fiscal year. The actual general funds revenues for the fiscal | ||||||
16 | year shall be calculated in a manner consistent with subsection | ||||||
17 | (c) of
Section 10 of this Act.
| ||||||
18 | (Source: P.A. 94-839, eff. 6-6-06.) | ||||||
19 | Section 20. The Illinois Pension Code is amended by | ||||||
20 | changing Sections 1-103.3, 1-160, 2-108, 2-119, 2-119.1, | ||||||
21 | 2-121.1, 2-124, 2-125, 2-126, 2-134, 2-162, 14-103.10, 14-107, | ||||||
22 | 14-108, 14-110, 14-114, 14-131, 14-132, 14-133, 14-135.08, | ||||||
23 | 14-152.1, 15-111, 15-113.6, 15-113.7, 15-135, 15-136, 15-155, | ||||||
24 | 15-156, 15-157, 15-165, 15-198, 16-121, 16-132, 16-133, | ||||||
25 | 16-133.1, 16-152, 16-158, 16-158.1, 16-203, 20-121, 20-123, |
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1 | 20-124, and 20-125 and by adding Sections 1-161, 2-105.1, | ||||||
2 | 2-105.2, 14-103.40, 14-103.41, 15-107.1, 15-107.2, 15-155.1, | ||||||
3 | 16-106.4, 16-106.5, and 16-158.2 as follows:
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4 | (40 ILCS 5/1-103.3)
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5 | Sec. 1-103.3. Application of 1994 amendment; funding | ||||||
6 | standard.
| ||||||
7 | (a) The provisions of Public Act 88-593 this amendatory Act | ||||||
8 | of 1994 that change the method of
calculating, certifying, and | ||||||
9 | paying the required State contributions to the
retirement | ||||||
10 | systems established under Articles 2, 14, 15, 16, and 18 shall
| ||||||
11 | first apply to the State contributions required for State | ||||||
12 | fiscal year 1996.
| ||||||
13 | (b) (Blank) The General Assembly declares that a funding | ||||||
14 | ratio (the ratio of a
retirement system's total assets to its | ||||||
15 | total actuarial liabilities) of 90% is
an appropriate goal for | ||||||
16 | State-funded retirement systems in Illinois, and it
finds that | ||||||
17 | a funding ratio of 90% is now the generally-recognized norm
| ||||||
18 | throughout the nation for public employee retirement systems | ||||||
19 | that are
considered to be financially secure and funded in an | ||||||
20 | appropriate and
responsible manner .
| ||||||
21 | (c) Every 5 years, beginning in 1999, the Commission on | ||||||
22 | Government Forecasting and Accountability, in consultation | ||||||
23 | with the affected retirement systems and the
Governor's Office | ||||||
24 | of Management and Budget (formerly
Bureau
of the Budget), shall | ||||||
25 | consider and determine whether the funding goals 90% funding |
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1 | ratio
adopted in Articles 2, 14, 15, 16, and 18 of this Code | ||||||
2 | continue subsection (b) continues to represent an appropriate | ||||||
3 | funding goals goal for
those State-funded retirement systems in | ||||||
4 | Illinois , and it shall report its findings
and recommendations | ||||||
5 | on this subject to the Governor and the General Assembly.
| ||||||
6 | (Source: P.A. 93-1067, eff. 1-15-05.)
| ||||||
7 | (40 ILCS 5/1-160) | ||||||
8 | Sec. 1-160. Provisions applicable to new hires. | ||||||
9 | (a) The provisions of this Section apply to a person who, | ||||||
10 | on or after January 1, 2011, first becomes a member or a | ||||||
11 | participant under any reciprocal retirement system or pension | ||||||
12 | fund established under this Code, other than a retirement | ||||||
13 | system or pension fund established under Article 2, 3, 4, 5, 6, | ||||||
14 | or 18 of this Code, notwithstanding any other provision of this | ||||||
15 | Code to the contrary, but do not apply (i) to any self-managed | ||||||
16 | plan established under this Code, (ii) to any person with | ||||||
17 | respect to service as a sheriff's law enforcement employee | ||||||
18 | under Article 7, (iii) to any person with respect to service | ||||||
19 | for which the person participates in the cash balance plan | ||||||
20 | established under Section 1-161, or (iv) to any participant of | ||||||
21 | the retirement plan established under Section 22-101. | ||||||
22 | A person subject to this Section with respect to service | ||||||
23 | under the State Universities Retirement System may irrevocably | ||||||
24 | elect to transfer to the cash balance plan under Section 1-161 | ||||||
25 | with respect to service under the State Universities Retirement |
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1 | System by filing with the State Universities Retirement System | ||||||
2 | by December 31, 2013, in the manner required by that System, | ||||||
3 | his or her irrevocable written election to transfer to the cash | ||||||
4 | balance plan. A person subject to this Section who returns to | ||||||
5 | active service under Article 15 after November 1, 2013 shall | ||||||
6 | have 60 days after returning to active service to make this | ||||||
7 | election. Participation in the cash balance plan shall begin no | ||||||
8 | earlier than July 1, 2013. For a person who transfers to the | ||||||
9 | cash balance plan, the benefits that would otherwise be payable | ||||||
10 | under this Section with respect to service in the State | ||||||
11 | Universities Retirement System shall instead be payable as | ||||||
12 | provided in the cash balance plan. | ||||||
13 | A person subject to this Section with respect to service | ||||||
14 | under the Teachers' Retirement System of the State of Illinois | ||||||
15 | may irrevocably elect to transfer to the cash balance plan | ||||||
16 | under Section 1-161 with respect to service under the Teachers' | ||||||
17 | Retirement System of the State of Illinois by filing with the | ||||||
18 | Teachers' Retirement System of the State of Illinois by | ||||||
19 | December 31, 2013, in the manner required by that System, his | ||||||
20 | or her irrevocable written election to transfer to the cash | ||||||
21 | balance plan. A person subject to this Section who returns to | ||||||
22 | active service under Article 16 after November 1, 2013 shall | ||||||
23 | have 60 days after returning to active service to make this | ||||||
24 | election. Participation in the cash balance plan shall begin no | ||||||
25 | earlier than July 1, 2013. For a person who transfers to the | ||||||
26 | cash balance plan, the benefits that would otherwise be payable |
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1 | under this Section with respect to service in the Teachers' | ||||||
2 | Retirement System of the State of Illinois shall instead be | ||||||
3 | payable as provided in the cash balance plan. | ||||||
4 | (b) "Final average salary" means the average monthly (or | ||||||
5 | annual) salary obtained by dividing the total salary or | ||||||
6 | earnings calculated under the Article applicable to the member | ||||||
7 | or participant during the 96 consecutive months (or 8 | ||||||
8 | consecutive years) of service within the last 120 months (or 10 | ||||||
9 | years) of service in which the total salary or earnings | ||||||
10 | calculated under the applicable Article was the highest by the | ||||||
11 | number of months (or years) of service in that period. For the | ||||||
12 | purposes of a person who first becomes a member or participant | ||||||
13 | of any retirement system or pension fund to which this Section | ||||||
14 | applies on or after January 1, 2011, in this Code, "final | ||||||
15 | average salary" shall be substituted for the following: | ||||||
16 | (1) In Articles 7 (except for service as sheriff's law | ||||||
17 | enforcement employees) and 15, "final rate of earnings". | ||||||
18 | (2) In Articles 8, 9, 10, 11, and 12, "highest average | ||||||
19 | annual salary for any 4 consecutive years within the last | ||||||
20 | 10 years of service immediately preceding the date of | ||||||
21 | withdrawal". | ||||||
22 | (3) In Article 13, "average final salary". | ||||||
23 | (4) In Article 14, "final average compensation". | ||||||
24 | (5) In Article 17, "average salary". | ||||||
25 | (6) In Section 22-207, "wages or salary received by him | ||||||
26 | at the date of retirement or discharge". |
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1 | (b-5) Beginning on January 1, 2011, for all purposes under | ||||||
2 | this Code (including without limitation the calculation of | ||||||
3 | benefits and employee contributions), the annual earnings, | ||||||
4 | salary, or wages (based on the plan year) of a member or | ||||||
5 | participant to whom this Section applies shall not exceed | ||||||
6 | $106,800; however, that amount shall annually thereafter be | ||||||
7 | increased by the lesser of (i) 3% of that amount, including all | ||||||
8 | previous adjustments, or (ii) one-half the annual unadjusted | ||||||
9 | percentage increase (but not less than zero) in the consumer | ||||||
10 | price index-u
for the 12 months ending with the September | ||||||
11 | preceding each November 1, including all previous adjustments. | ||||||
12 | For the purposes of this Section, "consumer price index-u" | ||||||
13 | means
the index published by the Bureau of Labor Statistics of | ||||||
14 | the United States
Department of Labor that measures the average | ||||||
15 | change in prices of goods and
services purchased by all urban | ||||||
16 | consumers, United States city average, all
items, 1982-84 = | ||||||
17 | 100. The new amount resulting from each annual adjustment
shall | ||||||
18 | be determined by the Public Pension Division of the Department | ||||||
19 | of Insurance and made available to the boards of the retirement | ||||||
20 | systems and pension funds by November 1 of each year. | ||||||
21 | (c) A member or participant is entitled to a retirement
| ||||||
22 | annuity upon written application if he or she has attained age | ||||||
23 | 67 and has at least 10 years of service credit and is otherwise | ||||||
24 | eligible under the requirements of the applicable Article. | ||||||
25 | A member or participant who has attained age 62 and has at | ||||||
26 | least 10 years of service credit and is otherwise eligible |
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| |||||||
1 | under the requirements of the applicable Article may elect to | ||||||
2 | receive the lower retirement annuity provided
in subsection (d) | ||||||
3 | of this Section. | ||||||
4 | (d) The retirement annuity of a member or participant who | ||||||
5 | is retiring after attaining age 62 with at least 10 years of | ||||||
6 | service credit shall be reduced by one-half
of 1% for each full | ||||||
7 | month that the member's age is under age 67. | ||||||
8 | (e) Any retirement annuity or supplemental annuity shall be | ||||||
9 | subject to annual increases on the January 1 occurring either | ||||||
10 | on or after the attainment of age 67 or the first anniversary | ||||||
11 | of the annuity start date, whichever is later. Each annual | ||||||
12 | increase shall be calculated at 3% or one-half the annual | ||||||
13 | unadjusted percentage increase (but not less than zero) in the | ||||||
14 | consumer price index-u for the 12 months ending with the | ||||||
15 | September preceding each November 1, whichever is less, of the | ||||||
16 | originally granted retirement annuity. If the annual | ||||||
17 | unadjusted percentage change in the consumer price index-u for | ||||||
18 | the 12 months ending with the September preceding each November | ||||||
19 | 1 is zero or there is a decrease, then the annuity shall not be | ||||||
20 | increased. | ||||||
21 | (f) The initial survivor's or widow's annuity of an | ||||||
22 | otherwise eligible survivor or widow of a retired member or | ||||||
23 | participant who first became a member or participant on or | ||||||
24 | after January 1, 2011 shall be in the amount of 66 2/3% of the | ||||||
25 | retired member's or participant's retirement annuity at the | ||||||
26 | date of death. In the case of the death of a member or |
| |||||||
| |||||||
1 | participant who has not retired and who first became a member | ||||||
2 | or participant on or after January 1, 2011, eligibility for a | ||||||
3 | survivor's or widow's annuity shall be determined by the | ||||||
4 | applicable Article of this Code. The initial benefit shall be | ||||||
5 | 66 2/3% of the earned annuity without a reduction due to age. A | ||||||
6 | child's annuity of an otherwise eligible child shall be in the | ||||||
7 | amount prescribed under each Article if applicable. Any | ||||||
8 | survivor's or widow's annuity shall be increased (1) on each | ||||||
9 | January 1 occurring on or after the commencement of the annuity | ||||||
10 | if
the deceased member died while receiving a retirement | ||||||
11 | annuity or (2) in
other cases, on each January 1 occurring | ||||||
12 | after the first anniversary
of the commencement of the annuity. | ||||||
13 | Each annual increase shall be calculated at 3% or one-half the | ||||||
14 | annual unadjusted percentage increase (but not less than zero) | ||||||
15 | in the consumer price index-u for the 12 months ending with the | ||||||
16 | September preceding each November 1, whichever is less, of the | ||||||
17 | originally granted survivor's annuity. If the annual | ||||||
18 | unadjusted percentage change in the consumer price index-u for | ||||||
19 | the 12 months ending with the September preceding each November | ||||||
20 | 1 is zero or there is a decrease, then the annuity shall not be | ||||||
21 | increased. | ||||||
22 | (g) The benefits in Section 14-110 apply only if the person | ||||||
23 | is a State policeman, a fire fighter in the fire protection | ||||||
24 | service of a department, or a security employee of the | ||||||
25 | Department of Corrections or the Department of Juvenile | ||||||
26 | Justice, as those terms are defined in subsection (c) (b) of |
| |||||||
| |||||||
1 | Section 14-110. A person who meets the requirements of this | ||||||
2 | Section is entitled to an annuity calculated under the | ||||||
3 | provisions of Section 14-110, in lieu of the regular or minimum | ||||||
4 | retirement annuity, only if the person has withdrawn from | ||||||
5 | service with not less than 20
years of eligible creditable | ||||||
6 | service and has attained age 60, regardless of whether
the | ||||||
7 | attainment of age 60 occurs while the person is
still in | ||||||
8 | service. | ||||||
9 | (h) If a person who first becomes a member or a participant | ||||||
10 | of a retirement system or pension fund subject to this Section | ||||||
11 | on or after January 1, 2011 is receiving a retirement annuity | ||||||
12 | or retirement pension under that system or fund and becomes a | ||||||
13 | member or participant under any other system or fund created by | ||||||
14 | this Code and is employed on a full-time basis, except for | ||||||
15 | those members or participants exempted from the provisions of | ||||||
16 | this Section under subsection (a) of this Section, then the | ||||||
17 | person's retirement annuity or retirement pension under that | ||||||
18 | system or fund shall be suspended during that employment. Upon | ||||||
19 | termination of that employment, the person's retirement | ||||||
20 | annuity or retirement pension payments shall resume and be | ||||||
21 | recalculated if recalculation is provided for under the | ||||||
22 | applicable Article of this Code. | ||||||
23 | If a person who first becomes a member of a retirement | ||||||
24 | system or pension fund subject to this Section on or after | ||||||
25 | January 1, 2012 and is receiving a retirement annuity or | ||||||
26 | retirement pension under that system or fund and accepts on a |
| |||||||
| |||||||
1 | contractual basis a position to provide services to a | ||||||
2 | governmental entity from which he or she has retired, then that | ||||||
3 | person's annuity or retirement pension earned as an active | ||||||
4 | employee of the employer shall be suspended during that | ||||||
5 | contractual service. A person receiving an annuity or | ||||||
6 | retirement pension under this Code shall notify the pension | ||||||
7 | fund or retirement system from which he or she is receiving an | ||||||
8 | annuity or retirement pension, as well as his or her | ||||||
9 | contractual employer, of his or her retirement status before | ||||||
10 | accepting contractual employment. A person who fails to submit | ||||||
11 | such notification shall be guilty of a Class A misdemeanor and | ||||||
12 | required to pay a fine of $1,000. Upon termination of that | ||||||
13 | contractual employment, the person's retirement annuity or | ||||||
14 | retirement pension payments shall resume and, if appropriate, | ||||||
15 | be recalculated under the applicable provisions of this Code. | ||||||
16 | (i) Notwithstanding any other provision of this Section, a | ||||||
17 | person who first becomes a participant of the retirement system | ||||||
18 | established under Article 15 on or after January 1, 2011 shall | ||||||
19 | have the option to enroll in the self-managed plan created | ||||||
20 | under Section 15-158.2 of this Code. | ||||||
21 | (j) In the case of a conflict between the provisions of | ||||||
22 | this Section and any other provision of this Code, the | ||||||
23 | provisions of this Section shall control.
| ||||||
24 | (Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11; | ||||||
25 | 97-609, eff. 1-1-12.) |
| |||||||
| |||||||
1 | (40 ILCS 5/1-161 new) | ||||||
2 | Sec. 1-161. Cash Balance Plan. | ||||||
3 | (a) Participation and Applicability. This Section applies | ||||||
4 | to all new cash balance plan participants and all legacy Tier | ||||||
5 | II participants. | ||||||
6 | (b) Title. The package of benefits provided under this | ||||||
7 | Section may be referred to as the "cash balance plan". Persons | ||||||
8 | subject to the provisions of this Section may be referred to as | ||||||
9 | "participants in the cash balance plan" or, in this Section, | ||||||
10 | simply as "participants". | ||||||
11 | (b-5) Definitions. As used in this Section: | ||||||
12 | "Account" means the notional cash balance account | ||||||
13 | established under this Section by the applicable retirement | ||||||
14 | system for a participant in the cash balance plan. | ||||||
15 | "Eligible child" means: | ||||||
16 | (1) with respect to a participant in the retirement | ||||||
17 | system established under Article 15 of this Code, a person | ||||||
18 | who would be eligible for a survivors insurance benefit as | ||||||
19 | a dependent unmarried child under Article 15 of this Code | ||||||
20 | if the deceased participant had been a participant in the | ||||||
21 | traditional benefit package; or | ||||||
22 | (2) with respect to a participant in the retirement | ||||||
23 | system established under Article 16, an eligible child as | ||||||
24 | defined in subdivision (a)(4) of Section 16-140 of this | ||||||
25 | Code who would be eligible for survivors' benefits if the | ||||||
26 | deceased participant had not been subject to this Section. |
| |||||||
| |||||||
1 | "Eligible parent" means: | ||||||
2 | (1) with respect to a participant in the retirement | ||||||
3 | system established under Article 15 of this Code, a person | ||||||
4 | who would be eligible for a survivors insurance benefit as | ||||||
5 | a dependent parent under Article 15 of this Code if the | ||||||
6 | deceased participant had been a participant in the | ||||||
7 | traditional benefit package; or | ||||||
8 | (2) with respect to a participant in the retirement | ||||||
9 | system established under Article 16, a dependent parent as | ||||||
10 | defined in subdivision (a)(5) of Section 16-140 of this | ||||||
11 | Code who would be eligible for survivors' benefits if the | ||||||
12 | deceased participant had not been subject to this Section. | ||||||
13 | "Eligible surviving spouse" means: | ||||||
14 | (1) with respect to a participant in the retirement | ||||||
15 | system established under Article 15 of this Code, a person | ||||||
16 | who would be eligible for a survivors annuity as a | ||||||
17 | surviving spouse under Article 15 of this Code if the | ||||||
18 | deceased participant had been a participant in the | ||||||
19 | traditional benefit package; or | ||||||
20 | (2) with respect to a participant in the retirement | ||||||
21 | system established under Article 16, a dependent | ||||||
22 | beneficiary as defined in subdivision (a)(3)(A) or | ||||||
23 | (a)(3)(A-1) of Section 16-140 of this Code who would be | ||||||
24 | eligible for survivors' benefits payable in the form of an | ||||||
25 | annuity if the deceased participant had not been subject to | ||||||
26 | this Section. |
| |||||||
| |||||||
1 | "Eligible survivor" means: | ||||||
2 | (1) with respect to a participant in the retirement | ||||||
3 | system established under Article 15 of this Code, a person | ||||||
4 | who would be eligible for survivors insurance benefits as a | ||||||
5 | survivors insurance beneficiary (as defined in Section | ||||||
6 | 15-131 of this Code) if the deceased participant had been a | ||||||
7 | participant in the traditional benefit package; or | ||||||
8 | (2) with respect to a participant in the retirement | ||||||
9 | system established under Article 16, a person who would be | ||||||
10 | eligible for survivors' benefits under Article 16 of this | ||||||
11 | Code if the deceased participant had not been subject to | ||||||
12 | this Section. | ||||||
13 | "Salary" means "earnings" as defined in Article 15 or | ||||||
14 | "salary" as defined in Article 16, whichever is applicable. | ||||||
15 | "Legacy Tier II participant" means a person who was subject | ||||||
16 | to Section 1-160 with respect to service under Article 15 or 16 | ||||||
17 | of this Code and who irrevocably elects to participate in the | ||||||
18 | cash balance plan created under this Section. That election | ||||||
19 | must be made in writing, in the manner provided by the | ||||||
20 | applicable retirement system. | ||||||
21 | "New cash balance plan participant" means a person who, on | ||||||
22 | or after July 1, 2013, first begins to participate in the | ||||||
23 | retirement system established under Article 15 or 16 of this | ||||||
24 | Code. | ||||||
25 | (c) Cash Balance Account. A notional cash balance account | ||||||
26 | shall be established by the applicable retirement system for |
| |||||||
| |||||||
1 | each participant in the cash balance plan. The account is | ||||||
2 | notional and does not contain any actual money segregated from | ||||||
3 | the commingled assets of the retirement system. The cash | ||||||
4 | balance in the account is to be used in calculating benefits as | ||||||
5 | provided in this Section, but is not to be used in the | ||||||
6 | calculation of any refund, transfer, or other benefit under the | ||||||
7 | applicable Article of this Code. | ||||||
8 | If a person participates in the cash balance plan with | ||||||
9 | respect to service under more than one retirement system, each | ||||||
10 | retirement system shall establish a separate cash balance | ||||||
11 | account for the participant, and the participant shall be | ||||||
12 | entitled to separate benefits from each retirement system based | ||||||
13 | upon the participant's service and cash balance account under | ||||||
14 | that retirement system. References in this Section to a | ||||||
15 | participant's account mean the account established by, and | ||||||
16 | related to his or her service under, the applicable retirement | ||||||
17 | system. | ||||||
18 | The amounts to be credited to the cash balance account | ||||||
19 | shall include (i) amounts contributed by or on behalf of the | ||||||
20 | participant as employee contributions, (ii) notional employer | ||||||
21 | contributions and notional amounts based on optional employer | ||||||
22 | contributions, and (iii) interest credit that is attributable | ||||||
23 | to the account, all as provided in this Section. | ||||||
24 | The amounts to be debited from the cash balance account | ||||||
25 | shall include (i) amounts representing contributions for | ||||||
26 | disability benefits, (ii) amounts representing contributions |
| |||||||
| |||||||
1 | for survivor benefits not based on the cash balance account, | ||||||
2 | and (iii) upon a return to service after retirement, amounts | ||||||
3 | representing each payment of retirement annuity following the | ||||||
4 | latest retirement and preceding the return to service, all as | ||||||
5 | provided in this Section. | ||||||
6 | The applicable retirement system shall give to each | ||||||
7 | participant in the cash balance plan who has not yet retired | ||||||
8 | annual notice of the balance in the participant's cash balance | ||||||
9 | account. | ||||||
10 | (c-5) Initial Account Balance for Legacy Tier II | ||||||
11 | Participants. The applicable retirement system shall establish | ||||||
12 | an initial account balance for each legacy Tier II participant | ||||||
13 | when he or she begins participation in the cash balance plan. | ||||||
14 | The initial account balance shall be an amount equal to the | ||||||
15 | refund that the participant
would be eligible to receive under | ||||||
16 | the applicable Article of this Code if the participant | ||||||
17 | terminated
employment on that date and elected a refund of | ||||||
18 | contributions. If a legacy Tier II participant has purchased | ||||||
19 | service credit prior to irrevocably electing to participate in | ||||||
20 | the cash balance plan created under this Section, then the | ||||||
21 | initial account balance shall include an amount equal to the | ||||||
22 | contributions made by the participant to purchase that service | ||||||
23 | credit. | ||||||
24 | By accepting the initial account balance, the participant | ||||||
25 | relinquishes the right to any benefits (including survivor | ||||||
26 | benefits) that would otherwise be payable under Section 1-160 |
| |||||||
| |||||||
1 | with respect to service in the applicable retirement system, | ||||||
2 | but does not forfeit any service credit earned with respect to | ||||||
3 | such service. | ||||||
4 | (d) Employee Contributions. New cash balance plan | ||||||
5 | participants and legacy Tier II participants shall make | ||||||
6 | employee contributions to the applicable retirement system at | ||||||
7 | the rates required under the applicable Article of this Code. | ||||||
8 | The amount of each contribution shall be credited to the | ||||||
9 | participant's cash balance account after the retirement | ||||||
10 | system's receipt and reconciliation of the contribution. | ||||||
11 | (e) Notional Employer Contributions. Upon crediting each | ||||||
12 | employee contribution under subsection (d), an amount | ||||||
13 | representing the corresponding employer contribution shall be | ||||||
14 | credited to the participant's cash balance account. Notional | ||||||
15 | employer contributions shall be 6.2% of salary. | ||||||
16 | The notional employer contribution to be credited to the | ||||||
17 | participant's account is not the same as the actual employer | ||||||
18 | contributions required under subsection (o) and the provisions | ||||||
19 | of the applicable Article of this Code. | ||||||
20 | (e-1) Notional Amount Based on Optional Employer | ||||||
21 | Contributions. If an employer agrees to make optional employer | ||||||
22 | contributions under subsection (p), then, for the period | ||||||
23 | specified in the agreement, an amount representing the | ||||||
24 | percentage of salary specified in the agreement shall be | ||||||
25 | credited to the cash balance account of each affected | ||||||
26 | participant after receipt and reconciliation of the |
| |||||||
| |||||||
1 | corresponding employee contribution under subsection (d). | ||||||
2 | The notional amount to be credited to the participant's | ||||||
3 | account is not the same amount as the actual optional employer | ||||||
4 | contribution required under subsection (p) and the provisions | ||||||
5 | of the applicable Article of this Code. | ||||||
6 | (f) Interest Credit. An interest credit shall be determined | ||||||
7 | by the retirement system in accordance with this Section and | ||||||
8 | credited to the participant's cash balance account for each | ||||||
9 | fiscal year in which there is a positive balance in that | ||||||
10 | account; except that no additional interest credit shall be | ||||||
11 | credited while an annuity based on the account is being paid. | ||||||
12 | The interest credit amount shall be a percentage of the average | ||||||
13 | balance in the cash balance account during that fiscal year, | ||||||
14 | and shall be calculated on June 30. | ||||||
15 | The percentage shall be the assumed treasury rate for the | ||||||
16 | previous fiscal year, unless neither the retirement system's | ||||||
17 | actual rate of investment earnings for the previous fiscal year | ||||||
18 | nor the retirement system's actual rate of investment earnings | ||||||
19 | for the five-year period ending at the end of the previous | ||||||
20 | fiscal year is less than the assumed treasury rate. | ||||||
21 | If both the retirement system's actual rate of investment | ||||||
22 | earnings for the previous fiscal year and the actual rate of | ||||||
23 | investment earnings for the five-year period ending at the end | ||||||
24 | of the previous fiscal year are at least the assumed treasury | ||||||
25 | rate, then the percentage shall be: | ||||||
26 | (i) the assumed treasury rate, plus |
| |||||||
| |||||||
1 | (ii) two-thirds of the amount of the actual rate of | ||||||
2 | investment earnings for the previous fiscal year that | ||||||
3 | exceeds the assumed treasury rate. | ||||||
4 | However, in no event shall the percentage applied under this | ||||||
5 | subsection exceed 10%. | ||||||
6 | For the purposes of this subsection only, "previous fiscal | ||||||
7 | year" means the fiscal year ending one year before the interest | ||||||
8 | rate is calculated. | ||||||
9 | For the purposes of this subsection only, "assumed treasury | ||||||
10 | rate" means the average annual yield of the 30-year U.S. | ||||||
11 | Treasury Bond over the previous fiscal year, but not less than | ||||||
12 | 4%. | ||||||
13 | When a person applies for a retirement annuity under | ||||||
14 | subsection (g) or a surviving spouse's annuity under subsection | ||||||
15 | (k), the retirement system shall calculate the initial annuity | ||||||
16 | without applying an interest credit for the portion of the | ||||||
17 | fiscal year before the initial annuity payment date. On the | ||||||
18 | first June 30 occurring on or after the initial annuity payment | ||||||
19 | date, the retirement system shall (1) calculate a prorated | ||||||
20 | interest credit for the portion of the fiscal year before the | ||||||
21 | initial annuity payment date, (2) credit the prorated amount to | ||||||
22 | the participant's account, and (3) recalculate the amount of | ||||||
23 | the annuity from the initial annuity payment date. The | ||||||
24 | retirement system shall pay to the annuitant in a lump-sum, | ||||||
25 | without interest, the difference, for the portion of the fiscal | ||||||
26 | year on and after the initial annuity payment, between the |
| |||||||
| |||||||
1 | original annuity amount and the annuity amount as recalculated | ||||||
2 | under this subsection. | ||||||
3 | (f-10) Distribution after Termination of Employment. After | ||||||
4 | termination of the participant's active employment with at | ||||||
5 | least 5 years of service credit under the applicable retirement | ||||||
6 | system but prior to applying for an annuity under this Section, | ||||||
7 | a participant in the cash balance plan or an eligible surviving | ||||||
8 | spouse under subsection (k) may make an irrevocable election to | ||||||
9 | receive a distribution from the applicable retirement system in | ||||||
10 | an amount not to exceed 40% of the balance in the participant's | ||||||
11 | account in the form of a direct rollover to another qualified | ||||||
12 | plan, to the extent allowed by federal law. Only one | ||||||
13 | distribution under this subsection may be made with respect to | ||||||
14 | a participant's cash balance account. | ||||||
15 | Upon payment of the distribution, the amount distributed | ||||||
16 | shall be debited from the participant's cash balance account. | ||||||
17 | The remaining balance in the account shall be used for the | ||||||
18 | determination of the other benefits provided to the participant | ||||||
19 | or eligible surviving spouse under this Section. Once a | ||||||
20 | distribution under this subsection (f-10) has been paid, | ||||||
21 | neither the participant nor an eligible survivor may repay the | ||||||
22 | amount distributed or reinstate any benefit arising under this | ||||||
23 | Section from the distributed amount. | ||||||
24 | (f-15) Refund. In lieu of receiving a distribution under | ||||||
25 | subsection (f-10) or a retirement annuity under subsection (g), | ||||||
26 | at any time after terminating active employment under the |
| |||||||
| |||||||
1 | applicable retirement system, a participant in the cash balance | ||||||
2 | plan may elect to receive a refund under this subsection. The | ||||||
3 | refund shall consist of an amount equal to the amount of all | ||||||
4 | employee contributions credited to the participant's account, | ||||||
5 | but shall not include any interest credit or employer | ||||||
6 | contributions. If the participant so requests, the refund may | ||||||
7 | be paid in the form of a direct rollover to another qualified | ||||||
8 | plan, to the extent allowed by federal law and in accordance | ||||||
9 | with the rules of the applicable retirement system. | ||||||
10 | Upon payment of the refund, the participant's notional cash | ||||||
11 | balance account is closed, and the participant's credits in the | ||||||
12 | applicable retirement system are terminated. A person who | ||||||
13 | receives a refund under this subsection forfeits all rights | ||||||
14 | under the applicable retirement system, including any right to | ||||||
15 | repay refunded amounts and to reinstate any benefit under that | ||||||
16 | retirement system. | ||||||
17 | An eligible surviving spouse under subsection (k) may elect | ||||||
18 | to receive a refund under this subsection in lieu of a | ||||||
19 | survivor's annuity unless a distribution has been made under | ||||||
20 | subsection (f-10) with respect to the participant's cash | ||||||
21 | balance account. | ||||||
22 | (g) Retirement Annuity. A participant in the cash balance | ||||||
23 | plan may begin collecting a retirement annuity at age 59 1/2, | ||||||
24 | but not before reaching the age of 59 1/2 and not before the | ||||||
25 | date of termination of active employment under the applicable | ||||||
26 | retirement system. |
| |||||||
| |||||||
1 | The amount of the retirement annuity shall be calculated by | ||||||
2 | the retirement system, based on the balance in the cash balance | ||||||
3 | account, the assumption of future investment returns as | ||||||
4 | specified in this subsection, the participant's election to | ||||||
5 | have a lifetime surviving spouse's annuity as specified in this | ||||||
6 | subsection, the annual increase in retirement annuity as | ||||||
7 | specified in subsection (h), the annual increase in survivor's | ||||||
8 | annuity as specified in subsection (l), and any actuarial | ||||||
9 | assumptions and tables adopted by the board of the retirement | ||||||
10 | system for this purpose. The calculation shall be designed to | ||||||
11 | determine, on an actuarially equivalent basis, the amount of | ||||||
12 | retirement annuity that will result in total annuity payments | ||||||
13 | being equal to the total balance in the participant's account | ||||||
14 | on the date when the last payment of retirement annuity (or | ||||||
15 | surviving spouse's annuity, if the participant elects to | ||||||
16 | provide for a surviving spouse's annuity pursuant to this | ||||||
17 | subsection) is anticipated to be paid under the relevant | ||||||
18 | actuarial assumptions. | ||||||
19 | For the purpose of calculating retirement annuities, | ||||||
20 | future investment returns shall be assumed to be a percentage | ||||||
21 | equal to the average yield of the 30-year U.S. Treasury Bond | ||||||
22 | over the 5 fiscal years prior to the calculation of the initial | ||||||
23 | retirement annuity, plus 200 basis points; but not less than 4% | ||||||
24 | nor more than 8%. | ||||||
25 | A retirement annuity or surviving spouse's annuity | ||||||
26 | provided under this subsection shall be a life annuity and |
| |||||||
| |||||||
1 | shall not expire for the reason that the total amount paid has | ||||||
2 | reached or exceeded the account balance. | ||||||
3 | The annuity payment shall begin on the date specified by | ||||||
4 | the participant submitting a written application, which date | ||||||
5 | shall not be prior to termination of employment or more than | ||||||
6 | one year before the application is received by the board; | ||||||
7 | however, if the participant is not an employee of an employer | ||||||
8 | participating in the applicable retirement system or in a | ||||||
9 | participating system as defined in Article 20 of this Code on | ||||||
10 | April 1 of the calendar year next following the calendar year | ||||||
11 | in which the participant attains age 70 1/2, the annuity | ||||||
12 | payment period shall begin on that date regardless of whether | ||||||
13 | an application has been filed. | ||||||
14 | The participant may elect, in the participant's written | ||||||
15 | application for retirement, to receive a reduced retirement | ||||||
16 | annuity payable for his or her life and to have a surviving | ||||||
17 | spouse's annuity in a monthly amount equal to 50%, 75%, or 100% | ||||||
18 | of that reduced monthly amount, to be paid to his or her | ||||||
19 | eligible surviving spouse, commencing upon the participant's | ||||||
20 | death. | ||||||
21 | When the final payment of the retirement annuity (or | ||||||
22 | surviving spouse's annuity, if the participant elects to | ||||||
23 | provide for a surviving spouse's annuity pursuant to this | ||||||
24 | subsection) has been paid, the account shall be closed. When | ||||||
25 | the participant has died and there are no longer any eligible | ||||||
26 | survivors, any unused employee contributions shall be |
| |||||||
| |||||||
1 | forfeited to the applicable retirement system. | ||||||
2 | (h) Annual Increase in Retirement Annuity. The retirement | ||||||
3 | annuity shall be subject to an automatic annual increase in an | ||||||
4 | amount equal to 3% of the originally granted annuity on each | ||||||
5 | January 1 occurring on or after the first anniversary of the | ||||||
6 | annuity start date. Automatic annual increases in a surviving | ||||||
7 | spouse's annuity provided under subsection (g) shall be in | ||||||
8 | accordance with subsection (k-5) of this Section. | ||||||
9 | (i) Disability Benefits. The disability benefits provided | ||||||
10 | under the applicable retirement system apply to new cash | ||||||
11 | balance plan participants and legacy Tier II participants in | ||||||
12 | the cash balance plan, subject to and in accordance with the | ||||||
13 | eligibility and other provisions of the applicable Article. | ||||||
14 | Retirement due to disability under Section 15-153.2 or | ||||||
15 | 16-149.2 shall be deemed a disability benefit for the purposes | ||||||
16 | of this Section and shall apply to new cash balance plan | ||||||
17 | participants and legacy Tier II participants. | ||||||
18 | The board of the retirement system shall designate | ||||||
19 | annually, as a percentage of salary, an amount representing the | ||||||
20 | anticipated average cost of providing disability benefits for | ||||||
21 | participants. The amount so designated shall not exceed 1% of | ||||||
22 | the participant's salary and shall be deducted annually from | ||||||
23 | the account of each participant receiving salary. | ||||||
24 | (j) Return to Service. Upon a return to service under the | ||||||
25 | same retirement system after beginning to receive a retirement | ||||||
26 | annuity under the cash balance plan, the retirement annuity |
| |||||||
| |||||||
1 | shall be suspended and active participation in the cash balance | ||||||
2 | plan shall resume. Upon termination of the employment, the | ||||||
3 | retirement annuity shall resume in an amount to be recalculated | ||||||
4 | in accordance with subsection (g), taking into effect the | ||||||
5 | changes in the cash balance account. If a retired annuitant | ||||||
6 | returns to service, his or her notional cash balance account | ||||||
7 | shall thereupon be decreased by amounts representing each | ||||||
8 | payment of retirement annuity following the latest retirement | ||||||
9 | and preceding the return to service. | ||||||
10 | (k) Surviving Spouse's Annuity - Death before Retirement. | ||||||
11 | In the case of the death of a new cash balance plan participant | ||||||
12 | or legacy Tier II participant who had less than 5 years of | ||||||
13 | service under the applicable Article and had not begun | ||||||
14 | receiving a retirement annuity or taken a refund under | ||||||
15 | subsection (f-15), the eligible surviving spouse shall be | ||||||
16 | entitled only to a refund of employee contributions under | ||||||
17 | subsection (f-15). | ||||||
18 | In the case of the death of a new cash balance plan | ||||||
19 | participant or legacy Tier II participant who had at least 5 | ||||||
20 | years of service under the applicable Article and had not begun | ||||||
21 | receiving a retirement annuity or taken a refund under | ||||||
22 | subsection (f-15), the eligible surviving spouse shall, upon | ||||||
23 | written application, be entitled to receive a surviving | ||||||
24 | spouse's annuity beginning at age 59 1/2 (regardless of the | ||||||
25 | existence of dependent eligible children). The surviving | ||||||
26 | spouse's annuity shall be equal to 66 2/3% of the amount of |
| |||||||
| |||||||
1 | retirement annuity that the deceased participant would have | ||||||
2 | been entitled to if he or she had retired on the date of death | ||||||
3 | having attained age 59 1/2 and without having elected to take a | ||||||
4 | reduced annuity to provide a surviving spouse's annuity. | ||||||
5 | At any time before beginning to receive a surviving | ||||||
6 | spouse's annuity under this subsection, the eligible surviving | ||||||
7 | spouse may claim a distribution under subsection (f-10) or a | ||||||
8 | refund under subsection (f-15). The deceased participant's | ||||||
9 | account shall continue to receive interest credit until the | ||||||
10 | eligible surviving spouse begins to receive a surviving | ||||||
11 | spouse's annuity or receives a refund of employee contributions | ||||||
12 | under subsection (f-15). | ||||||
13 | A surviving spouse's annuity provided under this | ||||||
14 | subsection shall be a life annuity and shall not expire for the | ||||||
15 | reason that the amount paid has reached or exceeded the account | ||||||
16 | balance. When the final payment of the surviving spouse's | ||||||
17 | annuity has been paid, the account shall be closed. When the | ||||||
18 | participant has died and there are no longer any eligible | ||||||
19 | survivors, any unused employee contributions shall be | ||||||
20 | forfeited to the applicable retirement system. | ||||||
21 | (k-5) Annual Increase in Surviving Spouse's Annuity. A | ||||||
22 | surviving spouse's annuity granted under subsection (g) or (k) | ||||||
23 | shall be subject to an automatic annual increase in an amount | ||||||
24 | equal to 3% of the originally granted annuity on each January 1 | ||||||
25 | occurring on or after the first anniversary of the annuity | ||||||
26 | start date. |
| |||||||
| |||||||
1 | (l) Benefits for Eligible Children and Eligible Parents. | ||||||
2 | Upon the death of a participant in the cash balance plan, an | ||||||
3 | eligible child or eligible parent may be entitled to receive | ||||||
4 | death benefits and survivors insurance benefits under Article | ||||||
5 | 15 or survivors' benefits under Article 16 of this Code. These | ||||||
6 | benefits shall be deemed to be "survivor benefits not based on | ||||||
7 | the cash balance account" for the purposes of this Section. | ||||||
8 | Eligibility for these benefits shall be determined under | ||||||
9 | this Section and the applicable Article of this Code, including | ||||||
10 | without limitation any provision restricting eligibility on | ||||||
11 | the basis of (i) an election to receive a lump-sum death | ||||||
12 | benefit or (ii) a permitted designation of a different or | ||||||
13 | alternate beneficiary. | ||||||
14 | The amount of these benefits shall be determined under this | ||||||
15 | Section and the applicable Article of this Code, including | ||||||
16 | without limitation any limitation on the minimum or maximum | ||||||
17 | amount of such benefits, individually or in combination. In | ||||||
18 | applying any limitation on the minimum or maximum amount of | ||||||
19 | such benefits that depends on the existence or amount of a | ||||||
20 | benefit payable to the surviving spouse, the retirement system | ||||||
21 | shall use the amount of surviving spouse annuity payable by the | ||||||
22 | retirement system under this Section rather than the amount | ||||||
23 | otherwise provided under the applicable Article. Under no | ||||||
24 | circumstance shall the sum of the benefits payable to all | ||||||
25 | eligible survivors of a particular deceased participant by the | ||||||
26 | applicable retirement system in accordance with this Section |
| |||||||
| |||||||
1 | exceed the sum of the benefits that would be payable to all | ||||||
2 | eligible survivors if the deceased participant had not been | ||||||
3 | subject to this Section. | ||||||
4 | The board of the retirement system shall designate annually, as | ||||||
5 | a percentage of salary, an amount representing the anticipated | ||||||
6 | average cost of providing survivor benefits not based on the | ||||||
7 | cash balance account for dependent children and dependent | ||||||
8 | parents of deceased participants in the cash balance plan. The | ||||||
9 | amount so designated shall not exceed 1% of the cash balance | ||||||
10 | plan participant's salary and shall be deducted annually from | ||||||
11 | the account of each participant receiving salary. | ||||||
12 | (m) Applicability of Provisions. The following provisions, | ||||||
13 | if and as they exist in this Code, do not apply to participants | ||||||
14 | in the cash balance plan with respect to participation in the | ||||||
15 | cash balance plan, except as they are specifically provided for | ||||||
16 | in this Section: | ||||||
17 | (1) minimum service or vesting requirements (other | ||||||
18 | than as provided in this Section); | ||||||
19 | (2) provisions limiting a retirement annuity to a | ||||||
20 | specified percentage of salary; | ||||||
21 | (3) provisions authorizing a minimum retirement or | ||||||
22 | survivor's annuity or a supplemental annuity (except as | ||||||
23 | provided in subsection (l) of this Section with respect to | ||||||
24 | eligible children and eligible parents); | ||||||
25 | (4) provisions authorizing any form of annuity not | ||||||
26 | authorized under this Section; |
| |||||||
| |||||||
1 | (5) provisions authorizing a reversionary annuity | ||||||
2 | (other than a surviving spouse's annuity under subsection | ||||||
3 | (g)); | ||||||
4 | (6) provisions authorizing a refund of employee | ||||||
5 | contributions upon termination of service (except as | ||||||
6 | provided in this Section) or any lump-sum payout in lieu of | ||||||
7 | a retirement annuity or survivor's benefit (other than | ||||||
8 | lump-sum death benefits and other than the distribution | ||||||
9 | under subsection (f-10) and the refund under subsection | ||||||
10 | (f-15) of this Section); | ||||||
11 | (7) provisions authorizing optional service credits or | ||||||
12 | the payment of optional additional contributions (other | ||||||
13 | than the optional employer contributions specifically | ||||||
14 | authorized in subsection (e-1)); or | ||||||
15 | (8) a level income option. | ||||||
16 | The Retirement Systems Reciprocal Act applies to | ||||||
17 | participants in the cash balance plan who qualify under Article | ||||||
18 | 20 of this Code, but it does not affect the calculation of | ||||||
19 | benefits payable under this Section. | ||||||
20 | The other provisions of this Code continue to apply to | ||||||
21 | participants in the cash balance plan, to the extent that they | ||||||
22 | do not conflict with this Section. In the case of a conflict | ||||||
23 | between the provisions of this Section and any other provision | ||||||
24 | of this Code, the provisions of this Section control. | ||||||
25 | (n) Rules. The Board of Trustees of the applicable | ||||||
26 | retirement system may adopt rules and procedures for the |
| |||||||
| |||||||
1 | implementation of this Section, including but not limited to | ||||||
2 | determinations of how to integrate the administration of this | ||||||
3 | Section with the requirements of the applicable Article and any | ||||||
4 | other applicable provisions of this Code.
| ||||||
5 | (o) Actual Employer Contributions. Payment of employer | ||||||
6 | contributions with respect to participants in the cash balance | ||||||
7 | plan shall be the responsibility of the actual employer. These | ||||||
8 | contributions shall be determined under and paid in accordance | ||||||
9 | with the provisions of Sections 15-155 and 16-158. | ||||||
10 | (p) Actual Optional Employer Contributions. An employer | ||||||
11 | may agree with the applicable retirement system to make
| ||||||
12 | optional employer contributions to the system on behalf of | ||||||
13 | employees who are participants in the cash balance plan, to
the | ||||||
14 | extent permitted by federal law and in accordance with the | ||||||
15 | rules and procedures of the system. | ||||||
16 | Any such agreement must apply to all employees of the | ||||||
17 | employer who are participants in the cash balance plan. The | ||||||
18 | agreement shall be filed in writing with the applicable | ||||||
19 | retirement system, and shall specify (i) the additional | ||||||
20 | percentage of salary to be credited to the accounts of the | ||||||
21 | employees, (ii) the period during which the optional employer | ||||||
22 | contributions will apply, and (iii) that the employer agrees to | ||||||
23 | pay to the applicable retirement system the employer's normal | ||||||
24 | cost of the benefits resulting from those credited amounts, as | ||||||
25 | well as any unfunded accrued liability resulting from the cost | ||||||
26 | of those benefits, all as determined by the system in |
| |||||||
| |||||||
1 | accordance with the applicable Article. | ||||||
2 | (q) Prospective Modification. The provisions set forth in | ||||||
3 | this Section are subject to prospective changes made by law | ||||||
4 | provided that any such changes shall not apply to any benefits | ||||||
5 | accrued under this Section prior to the effective date of any | ||||||
6 | amendatory Act of the General Assembly. | ||||||
7 | (r) Qualified Plan Status. No provision of this Section | ||||||
8 | shall be interpreted in a way that would cause the applicable | ||||||
9 | retirement system to cease to be a qualified plan under the | ||||||
10 | Internal Revenue Code of 1986. | ||||||
11 | (40 ILCS 5/2-105.1 new) | ||||||
12 | Sec. 2-105.1. Tier I participant. "Tier I participant": A | ||||||
13 | participant who first became a participant before January 1, | ||||||
14 | 2011. | ||||||
15 | (40 ILCS 5/2-105.2 new) | ||||||
16 | Sec. 2-105.2. Tier I retiree. "Tier I retiree" means a | ||||||
17 | former Tier I participant who is receiving a retirement | ||||||
18 | annuity.
| ||||||
19 | (40 ILCS 5/2-108) (from Ch. 108 1/2, par. 2-108)
| ||||||
20 | Sec. 2-108. Salary. "Salary": (1) For members of the | ||||||
21 | General Assembly,
the total compensation paid to the member by | ||||||
22 | the State for one
year of service, including the additional | ||||||
23 | amounts, if any, paid to
the member as an officer pursuant to |
| |||||||
| |||||||
1 | Section 1 of "An Act
in relation to the compensation and | ||||||
2 | emoluments of the members of the
General Assembly", approved | ||||||
3 | December 6, 1907, as now or hereafter
amended.
| ||||||
4 | (2) For the State executive officers specified
in Section | ||||||
5 | 2-105, the total compensation paid to the member for one year
| ||||||
6 | of service.
| ||||||
7 | (3) For members of the System who are participants under | ||||||
8 | Section
2-117.1, or who are serving as Clerk or Assistant Clerk | ||||||
9 | of the House of
Representatives or Secretary or Assistant | ||||||
10 | Secretary of the Senate, the
total compensation paid to the | ||||||
11 | member for one year of service, but not to
exceed the salary of | ||||||
12 | the highest salaried officer of the General Assembly.
| ||||||
13 | However, in the event that federal law results in any | ||||||
14 | participant
receiving imputed income based on the value of | ||||||
15 | group term life insurance
provided by the State, such imputed | ||||||
16 | income shall not be included in salary
for the purposes of this | ||||||
17 | Article.
| ||||||
18 | Notwithstanding any other provision of this Code, the | ||||||
19 | salary of a Tier I participant for the purposes of this Code | ||||||
20 | shall not exceed, for periods of service in a term of office | ||||||
21 | beginning on or after the effective date of this amendatory Act | ||||||
22 | of the 98th General Assembly, the annual contribution and | ||||||
23 | benefit base established for the applicable year by the | ||||||
24 | Commissioner of Social Security under the federal Social | ||||||
25 | Security Act. | ||||||
26 | (Source: P.A. 86-27; 86-273; 86-1028; 86-1488.)
|
| |||||||
| |||||||
1 | (40 ILCS 5/2-119) (from Ch. 108 1/2, par. 2-119)
| ||||||
2 | Sec. 2-119. Retirement annuity - conditions for | ||||||
3 | eligibility. | ||||||
4 | (a)
A participant whose service as a
member is terminated, | ||||||
5 | regardless of age or cause, is entitled to a retirement
annuity | ||||||
6 | beginning on the date specified by the participant in
a written | ||||||
7 | application subject to the following conditions:
| ||||||
8 | 1. The date the annuity begins does not precede
the | ||||||
9 | date of final
termination of service, or is not more than | ||||||
10 | 30 days before the receipt
of the application
by the board | ||||||
11 | in the case of annuities based on disability or one year | ||||||
12 | before
the receipt of the application in the case of | ||||||
13 | annuities
based on attained age;
| ||||||
14 | 2. The participant meets one of the following | ||||||
15 | eligibility requirements: | ||||||
16 | For a participant who first becomes a participant of | ||||||
17 | this System before January 1, 2011 (the effective date of | ||||||
18 | Public Act 96-889):
| ||||||
19 | (A) He or she has attained age 55 and has at least | ||||||
20 | 8 years of service credit;
| ||||||
21 | (B) He or she has attained age 62 and terminated | ||||||
22 | service after July 1,
1971 with at least 4 years of | ||||||
23 | service credit; or
| ||||||
24 | (C) He or she has completed 8 years of service and | ||||||
25 | has become
permanently disabled and as a consequence, |
| |||||||
| |||||||
1 | is unable to perform the duties
of his or her office.
| ||||||
2 | For a participant who first becomes a participant of | ||||||
3 | this System on or after January 1, 2011 (the effective date | ||||||
4 | of Public Act 96-889), he or she has attained age 67 and | ||||||
5 | has at least 8 years of service credit. | ||||||
6 | (a-5) Notwithstanding subsection (a) of this Section, for a | ||||||
7 | Tier I participant who begins receiving a retirement annuity | ||||||
8 | under this Section after July 1, 2013: | ||||||
9 | (1) If the Tier I participant is at least 45 years old | ||||||
10 | on the effective date of this amendatory Act of the 98th | ||||||
11 | General Assembly, then the references to age 55 and 62 in | ||||||
12 | subsection (a) of this Section remain unchanged. | ||||||
13 | (2) If the Tier I participant is at least 40 but less | ||||||
14 | than 45 years old on the effective date of this amendatory | ||||||
15 | Act of the 98th General Assembly, then the references to | ||||||
16 | age 55 and 62 in subsection (a) of this Section are | ||||||
17 | increased by one year. | ||||||
18 | (3) If the Tier I participant is at least 35 but less | ||||||
19 | than 40 years old on the effective date of this amendatory | ||||||
20 | Act of the 98th General Assembly, then the references to | ||||||
21 | age 55 and 62 in subsection (a) of this Section are | ||||||
22 | increased by 3 years. | ||||||
23 | (4) If the Tier I participant is less than 35 years old | ||||||
24 | on the effective date of this amendatory Act of the 98th | ||||||
25 | General Assembly, then the references to age 55 and 62 in | ||||||
26 | subsection (a) of this Section are increased by 5 years. |
| |||||||
| |||||||
1 | Notwithstanding Section 1-103.1, this subsection (a-5) | ||||||
2 | applies without regard to whether or not the Tier I member is | ||||||
3 | in active service under this Article on or after the effective | ||||||
4 | date of this amendatory Act of the 98th General Assembly. | ||||||
5 | (a-5) A participant who first becomes a participant of this | ||||||
6 | System on or after January 1, 2011 (the effective date of | ||||||
7 | Public Act 96-889) who has attained age 62 and has at least 8 | ||||||
8 | years of service credit may elect to receive the lower | ||||||
9 | retirement annuity provided
in paragraph (c) of Section | ||||||
10 | 2-119.01 of this Code. | ||||||
11 | (b) A participant shall be considered permanently disabled | ||||||
12 | only if:
(1) disability occurs while in service and is
of such | ||||||
13 | a nature
as to prevent him or her from reasonably performing | ||||||
14 | the duties of his
or her office at
the time; and (2) the board | ||||||
15 | has received a written certificate by at
least 2 licensed | ||||||
16 | physicians appointed by the board stating that the member is
| ||||||
17 | disabled and that the disability is likely to be permanent.
| ||||||
18 | (Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
| ||||||
19 | (40 ILCS 5/2-119.1) (from Ch. 108 1/2, par. 2-119.1)
| ||||||
20 | Sec. 2-119.1. Automatic increase in retirement annuity.
| ||||||
21 | (a) Except as provided in subsections (a-1) and (a-2), a A | ||||||
22 | participant who retires after June 30, 1967, and who has not
| ||||||
23 | received an initial increase under this Section before the | ||||||
24 | effective date
of this amendatory Act of 1991, shall, in | ||||||
25 | January or July next following
the first anniversary of |
| |||||||
| |||||||
1 | retirement, whichever occurs first, and in the same
month of | ||||||
2 | each year thereafter, but in no event prior to age 60, have the | ||||||
3 | amount
of the originally granted retirement annuity increased | ||||||
4 | as follows: for each
year through 1971, 1 1/2%; for each year | ||||||
5 | from 1972 through 1979, 2%; and for
1980 and each year | ||||||
6 | thereafter, 3%. Annuitants who have received an initial
| ||||||
7 | increase under this subsection prior to the effective date of | ||||||
8 | this amendatory
Act of 1991 shall continue to receive their | ||||||
9 | annual increases in the same month
as the initial increase.
| ||||||
10 | (a-1) Notwithstanding any other provision of this Article, | ||||||
11 | for a Tier I retiree, the amount of each automatic annual | ||||||
12 | increase in retirement annuity occurring on or after the | ||||||
13 | effective date of this amendatory Act of the 98th General | ||||||
14 | Assembly shall be the lesser of $750 or 3% of the total annuity
| ||||||
15 | payable at the time of the increase, including previous | ||||||
16 | increases granted. | ||||||
17 | (a-2) Notwithstanding any other provision of this Article, | ||||||
18 | for a Tier I retiree, the monthly retirement annuity shall | ||||||
19 | first be subject to annual increases on the January 1 occurring | ||||||
20 | on or next after the attainment of age 67 or the January 1 | ||||||
21 | occurring on or next after the fifth anniversary of the annuity | ||||||
22 | start date, whichever occurs earlier. If on the effective date | ||||||
23 | of this amendatory Act of the 98th General Assembly a Tier I | ||||||
24 | retiree has already received an annual increase under this | ||||||
25 | Section but does not yet meet the new eligibility requirements | ||||||
26 | of this subsection, the annual increases already received shall |
| |||||||
| |||||||
1 | continue in force, but no additional annual increase shall be | ||||||
2 | granted until the Tier I retiree meets the new eligibility | ||||||
3 | requirements. | ||||||
4 | (a-3) Notwithstanding Section 1-103.1, subsections (a-1) | ||||||
5 | and (a-2) apply without regard to whether or not the Tier I | ||||||
6 | retiree is in active service under this Article on or after the | ||||||
7 | effective date of this amendatory Act of the 98th General | ||||||
8 | Assembly. | ||||||
9 | (b) Beginning January 1, 1990, for eligible participants | ||||||
10 | who remain
in service after attaining 20 years of creditable | ||||||
11 | service, the 3% increases
provided under subsection (a) shall | ||||||
12 | begin to accrue on the January 1 next
following the date upon | ||||||
13 | which the participant (1) attains age 55, or (2)
attains 20 | ||||||
14 | years of creditable service, whichever occurs later, and shall
| ||||||
15 | continue to accrue while the participant remains in service; | ||||||
16 | such increases
shall become payable on January 1 or July 1, | ||||||
17 | whichever occurs first, next
following the first anniversary of | ||||||
18 | retirement. For any person who has service
credit in the System | ||||||
19 | for the entire period from January 15, 1969 through
December | ||||||
20 | 31, 1992, regardless of the date of termination of service, the
| ||||||
21 | reference to age 55 in clause (1) of this subsection (b) shall | ||||||
22 | be deemed to
mean age 50.
| ||||||
23 | This subsection (b) does not apply to any person who first | ||||||
24 | becomes a
member of the System after August 8, 2003 ( the | ||||||
25 | effective date of Public Act 93-494) this amendatory Act of
the | ||||||
26 | 93rd General Assembly .
|
| |||||||
| |||||||
1 | (b-5) Notwithstanding any other provision of this Article, | ||||||
2 | a participant who first becomes a participant on or after | ||||||
3 | January 1, 2011 (the effective date of Public Act 96-889) | ||||||
4 | shall, in January or July next following the first anniversary | ||||||
5 | of retirement, whichever occurs first, and in the same month of | ||||||
6 | each year thereafter, but in no event prior to age 67, have the | ||||||
7 | amount of the originally granted retirement annuity then being | ||||||
8 | paid increased by 3% or one-half the annual unadjusted | ||||||
9 | percentage increase in the Consumer Price Index for All Urban | ||||||
10 | Consumers as determined by the Public Pension Division of the | ||||||
11 | Department of Insurance under subsection (a) of Section | ||||||
12 | 2-108.1, whichever is less. The changes made to this subsection | ||||||
13 | by this amendatory Act of the 98th General Assembly do not | ||||||
14 | apply to any automatic annual increase granted under this | ||||||
15 | subsection before the effective date of this amendatory Act. | ||||||
16 | (c) The foregoing provisions relating to automatic | ||||||
17 | increases are not
applicable to a participant who retires | ||||||
18 | before having made contributions
(at the rate prescribed in | ||||||
19 | Section 2-126) for automatic increases for less
than the | ||||||
20 | equivalent of one full year. However, in order to be eligible | ||||||
21 | for
the automatic increases, such a participant may make | ||||||
22 | arrangements to pay
to the system the amount required to bring | ||||||
23 | the total contributions for the
automatic increase to the | ||||||
24 | equivalent of one year's contributions based upon
his or her | ||||||
25 | last salary.
| ||||||
26 | (d) A participant who terminated service prior to July 1, |
| |||||||
| |||||||
1 | 1967, with at
least 14 years of service is entitled to an | ||||||
2 | increase in retirement annuity
beginning January, 1976, and to | ||||||
3 | additional increases in January of each
year thereafter.
| ||||||
4 | The initial increase shall be 1 1/2% of the originally | ||||||
5 | granted retirement
annuity multiplied by the number of full | ||||||
6 | years that the annuitant was in
receipt of such annuity prior | ||||||
7 | to January 1, 1972, plus 2% of the originally
granted | ||||||
8 | retirement annuity for each year after that date. The | ||||||
9 | subsequent
annual increases shall be at the rate of 2% of the | ||||||
10 | originally granted
retirement annuity for each year through | ||||||
11 | 1979 and at the rate of 3% for
1980 and thereafter.
| ||||||
12 | (e) Beginning January 1, 1990, all automatic annual | ||||||
13 | increases payable
under this Section shall be calculated as a | ||||||
14 | percentage of the total annuity
payable at the time of the | ||||||
15 | increase, including previous increases granted
under this | ||||||
16 | Article.
| ||||||
17 | (Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
| ||||||
18 | (40 ILCS 5/2-121.1) (from Ch. 108 1/2, par. 2-121.1)
| ||||||
19 | Sec. 2-121.1. Survivor's annuity - amount.
| ||||||
20 | (a) A surviving spouse shall be entitled to 66 2/3% of the | ||||||
21 | amount of
retirement annuity to which the participant or | ||||||
22 | annuitant was entitled on
the date of death, without regard to | ||||||
23 | whether the participant had attained
age 55 prior to his or her | ||||||
24 | death, subject to a minimum payment of 10% of
salary. If a | ||||||
25 | surviving spouse, regardless of age, has in his or her care
at |
| |||||||
| |||||||
1 | the date of death any eligible child or children of the | ||||||
2 | participant, the
survivor's annuity shall be the greater of the | ||||||
3 | following: (1) 66 2/3% of
the amount of retirement annuity to | ||||||
4 | which the participant or annuitant was
entitled on the date of | ||||||
5 | death, or (2) 30% of the participant's salary
increased by 10% | ||||||
6 | of salary on account of each such child, subject to a
total | ||||||
7 | payment for the surviving spouse and children of 50% of salary. | ||||||
8 | If
eligible children survive but there is no surviving spouse, | ||||||
9 | or if the
surviving spouse dies or becomes disqualified by
| ||||||
10 | remarriage while eligible children survive, each
eligible | ||||||
11 | child shall be entitled to an annuity of 20% of salary, subject
| ||||||
12 | to a maximum total payment for all such children of 50% of | ||||||
13 | salary.
| ||||||
14 | However, the survivor's annuity payable under this Section | ||||||
15 | shall not be
less than 100% of the amount of retirement annuity | ||||||
16 | to which the participant
or annuitant was entitled on the date | ||||||
17 | of death, if he or she is survived by
a dependent disabled | ||||||
18 | child.
| ||||||
19 | The salary to be used for determining these benefits shall | ||||||
20 | be the
salary used for determining the amount of retirement | ||||||
21 | annuity as provided
in Section 2-119.01.
| ||||||
22 | (b) Upon the death of a participant after the termination | ||||||
23 | of service or
upon death of an annuitant, the maximum total | ||||||
24 | payment to a surviving spouse
and eligible children, or to | ||||||
25 | eligible children alone if there is no surviving
spouse, shall | ||||||
26 | be 75% of the retirement annuity to which the participant
or |
| |||||||
| |||||||
1 | annuitant was entitled, unless there is a dependent disabled | ||||||
2 | child
among the survivors.
| ||||||
3 | (c) When a child ceases to be an eligible child, the | ||||||
4 | annuity to that
child, or to the surviving spouse on account of | ||||||
5 | that child, shall thereupon
cease, and the annuity payable to | ||||||
6 | the surviving spouse or other eligible
children shall be | ||||||
7 | recalculated if necessary.
| ||||||
8 | Upon the ineligibility of the last eligible child, the | ||||||
9 | annuity shall
immediately revert to the amount payable upon | ||||||
10 | death of a participant or
annuitant who leaves no eligible | ||||||
11 | children. If the surviving spouse is then
under age 50, the | ||||||
12 | annuity as revised shall be deferred until the attainment
of | ||||||
13 | age 50.
| ||||||
14 | (d) Beginning January 1, 1990, every survivor's annuity | ||||||
15 | shall be increased
(1) on each January 1 occurring on or after | ||||||
16 | the commencement of the annuity if
the deceased member died | ||||||
17 | while receiving a retirement annuity, or (2) in
other cases, on | ||||||
18 | each January 1 occurring on or after the first anniversary
of | ||||||
19 | the commencement of the annuity, by an amount equal to 3% of | ||||||
20 | the current
amount of the annuity, including any previous | ||||||
21 | increases under this Article.
Such increases shall apply | ||||||
22 | without regard to whether the deceased member
was in service on | ||||||
23 | or after the effective date of this amendatory Act of
1991, but | ||||||
24 | shall not accrue for any period prior to January 1, 1990.
| ||||||
25 | (d-5) Notwithstanding any other provision of this Article, | ||||||
26 | the initial survivor's annuity of a survivor of a participant |
| |||||||
| |||||||
1 | who first becomes a participant on or after January 1, 2011 | ||||||
2 | (the effective date of Public Act 96-889) shall be in the | ||||||
3 | amount of 66 2/3% of the amount of the retirement annuity to | ||||||
4 | which the participant or annuitant was entitled on the date of | ||||||
5 | death and shall be increased (1) on each January 1 occurring on | ||||||
6 | or after the commencement of the annuity if
the deceased member | ||||||
7 | died while receiving a retirement annuity or (2) in
other | ||||||
8 | cases, on each January 1 occurring on or after the first | ||||||
9 | anniversary
of the commencement of the annuity, by an amount | ||||||
10 | equal to 3% or one-half the annual unadjusted percentage | ||||||
11 | increase in the Consumer Price Index for All Urban Consumers as | ||||||
12 | determined by the Public Pension Division of the Department of | ||||||
13 | Insurance under subsection (a) of Section 2-108.1, whichever is | ||||||
14 | less, of the originally granted survivor's annuity then being | ||||||
15 | paid . The changes made to this subsection by this amendatory | ||||||
16 | Act of the 98th General Assembly do not apply to any automatic | ||||||
17 | annual increase granted under this subsection before the | ||||||
18 | effective date of this amendatory Act. | ||||||
19 | (e) Notwithstanding any other provision of this Article, | ||||||
20 | beginning
January 1, 1990, the minimum survivor's annuity | ||||||
21 | payable to any person who
is entitled to receive a survivor's | ||||||
22 | annuity under this Article shall be
$300 per month, without | ||||||
23 | regard to whether or not the deceased participant
was in | ||||||
24 | service on the effective date of this amendatory Act of 1989.
| ||||||
25 | (f) In the case of a proportional survivor's annuity | ||||||
26 | arising under
the Retirement Systems Reciprocal Act where the |
| |||||||
| |||||||
1 | amount payable by the
System on January 1, 1993 is less than | ||||||
2 | $300 per month, the amount payable
by the System shall be | ||||||
3 | increased beginning on that date by a monthly amount
equal to | ||||||
4 | $2 for each full year that has expired since the annuity began.
| ||||||
5 | (Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
| ||||||
6 | (40 ILCS 5/2-124) (from Ch. 108 1/2, par. 2-124)
| ||||||
7 | Sec. 2-124. Contributions by State.
| ||||||
8 | (a) The State shall make contributions to the System by
| ||||||
9 | appropriations of amounts which, together with the | ||||||
10 | contributions of
participants, interest earned on investments, | ||||||
11 | and other income
will meet the cost of maintaining and | ||||||
12 | administering the System on a 100% 90%
funded basis in | ||||||
13 | accordance with actuarial recommendations by the end of State | ||||||
14 | fiscal year 2043 .
| ||||||
15 | (b) The Board shall determine the amount of State
| ||||||
16 | contributions required for each fiscal year on the basis of the
| ||||||
17 | actuarial tables and other assumptions adopted by the Board and | ||||||
18 | the
prescribed rate of interest, using the formula in | ||||||
19 | subsection (c).
| ||||||
20 | (c) For State fiscal years 2014 through 2043, the minimum | ||||||
21 | contribution
to the System to be made by the State for each | ||||||
22 | fiscal year shall be an amount
determined by the System to be | ||||||
23 | equal to the sum of (1) the State's portion of the projected | ||||||
24 | normal cost for that fiscal year, plus (2) an amount sufficient | ||||||
25 | to bring the total assets of the
System up to 100% of the total |
| |||||||
| |||||||
1 | actuarial liabilities of the System by the end of
State fiscal | ||||||
2 | year 2043. In making these determinations, the required State
| ||||||
3 | contribution shall be calculated each year as a level | ||||||
4 | percentage of payroll
over the years remaining to and including | ||||||
5 | fiscal year 2043 and shall be
determined under the projected | ||||||
6 | unit credit actuarial cost method. | ||||||
7 | For State fiscal years 2012 and 2013 through 2045 , the | ||||||
8 | minimum contribution
to the System to be made by the State for | ||||||
9 | each fiscal year shall be an amount
determined by the System to | ||||||
10 | be sufficient to bring the total assets of the
System up to 90% | ||||||
11 | of the total actuarial liabilities of the System by the end of
| ||||||
12 | State fiscal year 2045. In making these determinations, the | ||||||
13 | required State
contribution shall be calculated each year as a | ||||||
14 | level percentage of payroll
over the years remaining to and | ||||||
15 | including fiscal year 2045 and shall be
determined under the | ||||||
16 | projected unit credit actuarial cost method.
| ||||||
17 | For State fiscal years 1996 through 2005, the State | ||||||
18 | contribution to
the System, as a percentage of the applicable | ||||||
19 | employee payroll, shall be
increased in equal annual increments | ||||||
20 | so that by State fiscal year 2011, the
State is contributing at | ||||||
21 | the rate required under this Section.
| ||||||
22 | Notwithstanding any other provision of this Article, the | ||||||
23 | total required State
contribution for State fiscal year 2006 is | ||||||
24 | $4,157,000.
| ||||||
25 | Notwithstanding any other provision of this Article, the | ||||||
26 | total required State
contribution for State fiscal year 2007 is |
| |||||||
| |||||||
1 | $5,220,300.
| ||||||
2 | For each of State fiscal years 2008 through 2009, the State | ||||||
3 | contribution to
the System, as a percentage of the applicable | ||||||
4 | employee payroll, shall be
increased in equal annual increments | ||||||
5 | from the required State contribution for State fiscal year | ||||||
6 | 2007, so that by State fiscal year 2011, the
State is | ||||||
7 | contributing at the rate otherwise required under this Section.
| ||||||
8 | Notwithstanding any other provision of this Article, the | ||||||
9 | total required State contribution for State fiscal year 2010 is | ||||||
10 | $10,454,000 and shall be made from the proceeds of bonds sold | ||||||
11 | in fiscal year 2010 pursuant to Section 7.2 of the General | ||||||
12 | Obligation Bond Act, less (i) the pro rata share of bond sale | ||||||
13 | expenses determined by the System's share of total bond | ||||||
14 | proceeds, (ii) any amounts received from the General Revenue | ||||||
15 | Fund in fiscal year 2010, and (iii) any reduction in bond | ||||||
16 | proceeds due to the issuance of discounted bonds, if | ||||||
17 | applicable. | ||||||
18 | Notwithstanding any other provision of this Article, the
| ||||||
19 | total required State contribution for State fiscal year 2011 is
| ||||||
20 | the amount recertified by the System on or before April 1, 2011 | ||||||
21 | pursuant to Section 2-134 and shall be made from the proceeds | ||||||
22 | of bonds sold
in fiscal year 2011 pursuant to Section 7.2 of | ||||||
23 | the General
Obligation Bond Act, less (i) the pro rata share of | ||||||
24 | bond sale
expenses determined by the System's share of total | ||||||
25 | bond
proceeds, (ii) any amounts received from the General | ||||||
26 | Revenue
Fund in fiscal year 2011, and (iii) any reduction in |
| |||||||
| |||||||
1 | bond
proceeds due to the issuance of discounted bonds, if
| ||||||
2 | applicable. | ||||||
3 | Beginning in State fiscal year 2044, the minimum State | ||||||
4 | contribution for each fiscal year shall be the amount needed to | ||||||
5 | maintain the total assets of the System at 100% of the total | ||||||
6 | actuarial liabilities of the System. | ||||||
7 | Beginning in State fiscal year 2046, the minimum State | ||||||
8 | contribution for
each fiscal year shall be the amount needed to | ||||||
9 | maintain the total assets of
the System at 90% of the total | ||||||
10 | actuarial liabilities of the System.
| ||||||
11 | Amounts received by the System pursuant to Section 25 of | ||||||
12 | the Budget Stabilization Act or Section 8.12 of the State | ||||||
13 | Finance Act in any fiscal year do not reduce and do not | ||||||
14 | constitute payment of any portion of the minimum State | ||||||
15 | contribution required under this Article in that fiscal year. | ||||||
16 | Such amounts shall not reduce, and shall not be included in the | ||||||
17 | calculation of, the required State contributions under this | ||||||
18 | Article in any future year until the System has reached a | ||||||
19 | funding ratio of at least 100% 90% . A reference in this Article | ||||||
20 | to the "required State contribution" or any substantially | ||||||
21 | similar term does not include or apply to any amounts payable | ||||||
22 | to the System under Section 25 of the Budget Stabilization Act.
| ||||||
23 | Notwithstanding any other provision of this Section, the | ||||||
24 | required State
contribution for State fiscal year 2005 and for | ||||||
25 | fiscal year 2008 and each fiscal year thereafter through State | ||||||
26 | fiscal year 2013 , as
calculated under this Section and
|
| |||||||
| |||||||
1 | certified under Section 2-134, shall not exceed an amount equal | ||||||
2 | to (i) the
amount of the required State contribution that would | ||||||
3 | have been calculated under
this Section for that fiscal year if | ||||||
4 | the System had not received any payments
under subsection (d) | ||||||
5 | of Section 7.2 of the General Obligation Bond Act, minus
(ii) | ||||||
6 | the portion of the State's total debt service payments for that | ||||||
7 | fiscal
year on the bonds issued in fiscal year 2003 for the | ||||||
8 | purposes of that Section 7.2, as determined
and certified by | ||||||
9 | the Comptroller, that is the same as the System's portion of
| ||||||
10 | the total moneys distributed under subsection (d) of Section | ||||||
11 | 7.2 of the General
Obligation Bond Act. In determining this | ||||||
12 | maximum for State fiscal years 2008 through 2010, however, the | ||||||
13 | amount referred to in item (i) shall be increased, as a | ||||||
14 | percentage of the applicable employee payroll, in equal | ||||||
15 | increments calculated from the sum of the required State | ||||||
16 | contribution for State fiscal year 2007 plus the applicable | ||||||
17 | portion of the State's total debt service payments for fiscal | ||||||
18 | year 2007 on the bonds issued in fiscal year 2003 for the | ||||||
19 | purposes of Section 7.2 of the General
Obligation Bond Act, so | ||||||
20 | that, by State fiscal year 2011, the
State is contributing at | ||||||
21 | the rate otherwise required under this Section.
| ||||||
22 | (d) For purposes of determining the required State | ||||||
23 | contribution to the System, the value of the System's assets | ||||||
24 | shall be equal to the actuarial value of the System's assets, | ||||||
25 | which shall be calculated as follows: | ||||||
26 | As of June 30, 2008, the actuarial value of the System's |
| |||||||
| |||||||
1 | assets shall be equal to the market value of the assets as of | ||||||
2 | that date. In determining the actuarial value of the System's | ||||||
3 | assets for fiscal years after June 30, 2008, any actuarial | ||||||
4 | gains or losses from investment return incurred in a fiscal | ||||||
5 | year shall be recognized in equal annual amounts over the | ||||||
6 | 5-year period following that fiscal year. | ||||||
7 | (e) For purposes of determining the required State | ||||||
8 | contribution to the system for a particular year, the actuarial | ||||||
9 | value of assets shall be assumed to earn a rate of return equal | ||||||
10 | to the system's actuarially assumed rate of return. | ||||||
11 | (Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11; | ||||||
12 | 96-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-813, eff. | ||||||
13 | 7-13-12.)
| ||||||
14 | (40 ILCS 5/2-125) (from Ch. 108 1/2, par. 2-125)
| ||||||
15 | Sec. 2-125. Obligations of State ; funding guarantee . | ||||||
16 | (a) The payment of (1) the required State contributions, | ||||||
17 | (2) all benefits
granted under this system and (3) all expenses | ||||||
18 | of administration and
operation are obligations of the State to | ||||||
19 | the extent specified in this
Article.
| ||||||
20 | (b) All income, interest and dividends derived from | ||||||
21 | deposits and investments
shall be credited to the account of | ||||||
22 | the system in the State Treasury and
used to pay benefits under | ||||||
23 | this Article.
| ||||||
24 | (c) Beginning July 1, 2013, the State shall be | ||||||
25 | contractually obligated to contribute to the System under |
| |||||||
| |||||||
1 | Section 2-124 in each State fiscal year an amount not less than | ||||||
2 | the sum of (i) the State's normal cost for that year and
(ii) | ||||||
3 | the portion of the unfunded accrued liability assigned to that | ||||||
4 | year by law in accordance with a schedule that distributes | ||||||
5 | payments equitably over a reasonable period of time and in | ||||||
6 | accordance with accepted actuarial practices. The obligations | ||||||
7 | created under this subsection (c) are contractual obligations | ||||||
8 | protected and enforceable under Article I, Section 16 and | ||||||
9 | Article XIII, Section 5 of the Illinois Constitution. | ||||||
10 | Notwithstanding any other provision of law, if the State | ||||||
11 | fails to pay in a State fiscal year the amount guaranteed under | ||||||
12 | this subsection, the System may bring a mandamus action in the | ||||||
13 | Circuit Court of Sangamon County to compel the State to make | ||||||
14 | that payment, irrespective of other remedies that
may be | ||||||
15 | available to the System. In ordering the State to make the | ||||||
16 | required payment, the court may order a reasonable payment | ||||||
17 | schedule to enable the State to make the required payment | ||||||
18 | without significantly imperiling the public health, safety, or | ||||||
19 | welfare. | ||||||
20 | Any payments required to be made by the State pursuant to | ||||||
21 | this subsection (c)
are expressly subordinated to the payment | ||||||
22 | of the principal, interest, and premium, if any, on any
bonded | ||||||
23 | debt obligation of the State or any other State-created entity, | ||||||
24 | either currently outstanding or to
be issued, for which the | ||||||
25 | source of repayment or security thereon is derived directly or | ||||||
26 | indirectly from
tax revenues collected by the State or any |
| |||||||
| |||||||
1 | other State-created entity. Payments on such bonded
| ||||||
2 | obligations include any statutory fund transfers or other | ||||||
3 | prefunding mechanisms or formulas set forth,
now or hereafter, | ||||||
4 | in State law or bond indentures, into debt service funds or | ||||||
5 | accounts of the State
related to such bonded obligations, | ||||||
6 | consistent with the payment schedules associated with such
| ||||||
7 | obligations. | ||||||
8 | (Source: P.A. 83-1440.)
| ||||||
9 | (40 ILCS 5/2-126) (from Ch. 108 1/2, par. 2-126)
| ||||||
10 | Sec. 2-126. Contributions by participants.
| ||||||
11 | (a) Each participant shall contribute toward the cost of | ||||||
12 | his or her
retirement annuity a percentage of each payment of | ||||||
13 | salary received by him or
her for service as a member as | ||||||
14 | follows: for service between October 31, 1947
and January 1, | ||||||
15 | 1959, 5%; for service between January 1, 1959 and June 30, | ||||||
16 | 1969,
6%; for service between July 1, 1969 and January 10, | ||||||
17 | 1973, 6 1/2%; for service
after January 10, 1973, 7%; for | ||||||
18 | service after December 31, 1981, 8 1/2%.
| ||||||
19 | (a-5) In addition to the contributions otherwise required | ||||||
20 | under this Article, each Tier I participant shall also make the | ||||||
21 | following contributions toward the cost of his or her | ||||||
22 | retirement annuity from each payment
of salary received by him | ||||||
23 | or her for service as a member: | ||||||
24 | (1) beginning July 1, 2013 and through June 30, 2014, | ||||||
25 | 1% of salary; and |
| |||||||
| |||||||
1 | (2) beginning on July 1, 2014, 2% of salary. | ||||||
2 | (b) Beginning August 2, 1949, each male participant, and | ||||||
3 | from July 1,
1971, each female participant shall contribute | ||||||
4 | towards the cost of the
survivor's annuity 2% of salary.
| ||||||
5 | A participant who has no eligible survivor's annuity | ||||||
6 | beneficiary may elect
to cease making contributions for | ||||||
7 | survivor's annuity under this subsection.
A survivor's annuity | ||||||
8 | shall not be payable upon the death of a person who has
made | ||||||
9 | this election, unless prior to that death the election has been | ||||||
10 | revoked
and the amount of the contributions that would have | ||||||
11 | been paid under this
subsection in the absence of the election | ||||||
12 | is paid to the System, together
with interest at the rate of 4% | ||||||
13 | per year from the date the contributions
would have been made | ||||||
14 | to the date of payment.
| ||||||
15 | (c) Beginning July 1, 1967, each participant shall | ||||||
16 | contribute 1% of
salary towards the cost of automatic increase | ||||||
17 | in annuity provided in
Section 2-119.1. These contributions | ||||||
18 | shall be made concurrently with
contributions for retirement | ||||||
19 | annuity purposes.
| ||||||
20 | (d) In addition, each participant serving as an officer of | ||||||
21 | the General
Assembly shall contribute, for the same purposes | ||||||
22 | and at the same rates
as are required of a regular participant, | ||||||
23 | on each additional payment
received as an officer. If the | ||||||
24 | participant serves as an
officer for at least 2 but less than 4 | ||||||
25 | years, he or she shall
contribute an amount equal to the amount | ||||||
26 | that would have been contributed
had the participant served as |
| |||||||
| |||||||
1 | an officer for 4 years. Persons who serve
as officers in the | ||||||
2 | 87th General Assembly but cannot receive the additional
payment | ||||||
3 | to officers because of the ban on increases in salary during | ||||||
4 | their
terms may nonetheless make contributions based on those | ||||||
5 | additional payments
for the purpose of having the additional | ||||||
6 | payments included in their highest
salary for annuity purposes; | ||||||
7 | however, persons electing to make these
additional | ||||||
8 | contributions must also pay an amount representing the
| ||||||
9 | corresponding employer contributions, as calculated by the | ||||||
10 | System.
| ||||||
11 | (e) Notwithstanding any other provision of this Article, | ||||||
12 | the required contribution of a participant who first becomes a | ||||||
13 | participant on or after January 1, 2011 shall not exceed the | ||||||
14 | contribution that would be due under this Article if that | ||||||
15 | participant's highest salary for annuity purposes were | ||||||
16 | $106,800, plus any increases in that amount under Section | ||||||
17 | 2-108.1. | ||||||
18 | (Source: P.A. 96-1490, eff. 1-1-11.)
| ||||||
19 | (40 ILCS 5/2-134)
(from Ch. 108 1/2, par. 2-134)
| ||||||
20 | Sec. 2-134. To certify required State contributions and | ||||||
21 | submit vouchers.
| ||||||
22 | (a) The Board shall certify to the Governor on or before | ||||||
23 | December 15 of each
year through until December 15, 2011 the | ||||||
24 | amount of the required State contribution to the System for the | ||||||
25 | next
fiscal year and shall specifically identify the System's |
| |||||||
| |||||||
1 | projected State normal cost for that fiscal year . The | ||||||
2 | certification shall include a copy of the actuarial
| ||||||
3 | recommendations upon which it is based and shall specifically | ||||||
4 | identify the System's projected State normal cost for that | ||||||
5 | fiscal year .
| ||||||
6 | (a-5) On or before November 1 of each year, beginning | ||||||
7 | November 1, 2012, the Board shall submit to the State Actuary, | ||||||
8 | the Governor, and the General Assembly a proposed certification | ||||||
9 | of the amount of the required State contribution to the System | ||||||
10 | for the next fiscal year, along with all of the actuarial | ||||||
11 | assumptions, calculations, and data upon which that proposed | ||||||
12 | certification is based. On or before January 1 of each year , | ||||||
13 | beginning January 1, 2013, the State Actuary shall issue a | ||||||
14 | preliminary report concerning the proposed certification and | ||||||
15 | identifying, if necessary, recommended changes in actuarial | ||||||
16 | assumptions that the Board must consider before finalizing its | ||||||
17 | certification of the required State contributions. | ||||||
18 | On or before January 15, 2013 and every January 15 | ||||||
19 | thereafter, the Board shall certify to the Governor and the | ||||||
20 | General Assembly the amount of the required State contribution | ||||||
21 | for the next fiscal year. The Board's certification shall | ||||||
22 | include a copy of the actuarial recommendations upon which it | ||||||
23 | is based and shall specifically identify the System's projected | ||||||
24 | State normal cost for that fiscal year. The Board's | ||||||
25 | certification must note any deviations from the State Actuary's | ||||||
26 | recommended changes, the reason or reasons for not following |
| |||||||
| |||||||
1 | the State Actuary's recommended changes, and the fiscal impact | ||||||
2 | of not following the State Actuary's recommended changes on the | ||||||
3 | required State contribution. | ||||||
4 | (a-7) On or before May 1, 2004, the Board shall recalculate | ||||||
5 | and recertify to
the Governor the amount of the required State | ||||||
6 | contribution to the System for
State fiscal year 2005, taking | ||||||
7 | into account the amounts appropriated to and
received by the | ||||||
8 | System under subsection (d) of Section 7.2 of the General
| ||||||
9 | Obligation Bond Act.
| ||||||
10 | On or before July 1, 2005, the Board shall recalculate and | ||||||
11 | recertify
to the Governor the amount of the required State
| ||||||
12 | contribution to the System for State fiscal year 2006, taking | ||||||
13 | into account the changes in required State contributions made | ||||||
14 | by this amendatory Act of the 94th General Assembly.
| ||||||
15 | On or before April 1, 2011, the Board shall recalculate and | ||||||
16 | recertify to the Governor the amount of the required State | ||||||
17 | contribution to the System for State fiscal year 2011, applying | ||||||
18 | the changes made by Public Act 96-889 to the System's assets | ||||||
19 | and liabilities as of June 30, 2009 as though Public Act 96-889 | ||||||
20 | was approved on that date. | ||||||
21 | On or before July 1, 2013, the Board shall, if necessary, | ||||||
22 | recalculate and recertify
to the Governor the amount of the | ||||||
23 | required State
contribution to the System for State fiscal year | ||||||
24 | 2014, taking into account the changes in required State | ||||||
25 | contributions made by this amendatory Act of the 98th General | ||||||
26 | Assembly. |
| |||||||
| |||||||
1 | (b) Beginning in State fiscal year 1996, on or as soon as | ||||||
2 | possible after the
15th day of each month the Board shall | ||||||
3 | submit vouchers for payment of State
contributions to the | ||||||
4 | System, in a total monthly amount of one-twelfth of the
| ||||||
5 | required annual State contribution certified under subsection | ||||||
6 | (a).
From the effective date of this amendatory Act
of the 93rd | ||||||
7 | General Assembly through June 30, 2004, the Board shall not
| ||||||
8 | submit vouchers for the remainder of fiscal year 2004 in excess | ||||||
9 | of the
fiscal year 2004 certified contribution amount | ||||||
10 | determined
under this Section after taking into consideration | ||||||
11 | the transfer to the
System under subsection (d) of Section | ||||||
12 | 6z-61 of the State Finance Act.
These
vouchers shall be paid by | ||||||
13 | the State Comptroller and Treasurer by warrants drawn
on the | ||||||
14 | funds appropriated to the System for that fiscal year. If in | ||||||
15 | any month
the amount remaining unexpended from all other | ||||||
16 | appropriations to the System for
the applicable fiscal year | ||||||
17 | (including the appropriations to the System under
Section 8.12 | ||||||
18 | of the State Finance Act and Section 1 of the State Pension | ||||||
19 | Funds
Continuing Appropriation Act) is less than the amount | ||||||
20 | lawfully vouchered under
this Section, the difference shall be | ||||||
21 | paid from the General Revenue Fund under
the continuing | ||||||
22 | appropriation authority provided in Section 1.1 of the State
| ||||||
23 | Pension Funds Continuing Appropriation Act.
| ||||||
24 | (c) The full amount of any annual appropriation for the | ||||||
25 | System for
State fiscal year 1995 shall be transferred and made | ||||||
26 | available to the System
at the beginning of that fiscal year at |
| |||||||
| |||||||
1 | the request of the Board.
Any excess funds remaining at the end | ||||||
2 | of any fiscal year from appropriations
shall be retained by the | ||||||
3 | System as a general reserve to meet the System's
accrued | ||||||
4 | liabilities.
| ||||||
5 | (Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11; | ||||||
6 | 97-694, eff. 6-18-12.)
| ||||||
7 | (40 ILCS 5/2-162)
| ||||||
8 | Sec. 2-162. Application and expiration of new benefit | ||||||
9 | increases. | ||||||
10 | (a) As used in this Section, "new benefit increase" means | ||||||
11 | an increase in the amount of any benefit provided under this | ||||||
12 | Article, or an expansion of the conditions of eligibility for | ||||||
13 | any benefit under this Article, that results from an amendment | ||||||
14 | to this Code that takes effect after the effective date of this | ||||||
15 | amendatory Act of the 94th General Assembly. "New benefit | ||||||
16 | increase", however, does not include any benefit increase | ||||||
17 | resulting from the changes made to this Article by this | ||||||
18 | amendatory Act of the 98th General Assembly. | ||||||
19 | (b) Notwithstanding any other provision of this Code or any | ||||||
20 | subsequent amendment to this Code, every new benefit increase | ||||||
21 | is subject to this Section and shall be deemed to be granted | ||||||
22 | only in conformance with and contingent upon compliance with | ||||||
23 | the provisions of this Section.
| ||||||
24 | (c) The Public Act enacting a new benefit increase must | ||||||
25 | identify and provide for payment to the System of additional |
| |||||||
| |||||||
1 | funding at least sufficient to fund the resulting annual | ||||||
2 | increase in cost to the System as it accrues. | ||||||
3 | Every new benefit increase is contingent upon the General | ||||||
4 | Assembly providing the additional funding required under this | ||||||
5 | subsection. The Commission on Government Forecasting and | ||||||
6 | Accountability shall analyze whether adequate additional | ||||||
7 | funding has been provided for the new benefit increase and | ||||||
8 | shall report its analysis to the Public Pension Division of the | ||||||
9 | Department of Financial and Professional Regulation. A new | ||||||
10 | benefit increase created by a Public Act that does not include | ||||||
11 | the additional funding required under this subsection is null | ||||||
12 | and void. If the Public Pension Division determines that the | ||||||
13 | additional funding provided for a new benefit increase under | ||||||
14 | this subsection is or has become inadequate, it may so certify | ||||||
15 | to the Governor and the State Comptroller and, in the absence | ||||||
16 | of corrective action by the General Assembly, the new benefit | ||||||
17 | increase shall expire at the end of the fiscal year in which | ||||||
18 | the certification is made.
| ||||||
19 | (d) Every new benefit increase shall expire 5 years after | ||||||
20 | its effective date or on such earlier date as may be specified | ||||||
21 | in the language enacting the new benefit increase or provided | ||||||
22 | under subsection (c). This does not prevent the General | ||||||
23 | Assembly from extending or re-creating a new benefit increase | ||||||
24 | by law. | ||||||
25 | (e) Except as otherwise provided in the language creating | ||||||
26 | the new benefit increase, a new benefit increase that expires |
| |||||||
| |||||||
1 | under this Section continues to apply to persons who applied | ||||||
2 | and qualified for the affected benefit while the new benefit | ||||||
3 | increase was in effect and to the affected beneficiaries and | ||||||
4 | alternate payees of such persons, but does not apply to any | ||||||
5 | other person, including without limitation a person who | ||||||
6 | continues in service after the expiration date and did not | ||||||
7 | apply and qualify for the affected benefit while the new | ||||||
8 | benefit increase was in effect.
| ||||||
9 | (Source: P.A. 94-4, eff. 6-1-05.)
| ||||||
10 | (40 ILCS 5/14-103.10) (from Ch. 108 1/2, par. 14-103.10)
| ||||||
11 | Sec. 14-103.10. Compensation.
| ||||||
12 | (a) For periods of service prior to January 1, 1978, the | ||||||
13 | full rate of salary
or wages payable to an employee for | ||||||
14 | personal services performed if he worked
the full normal | ||||||
15 | working period for his position, subject to the following
| ||||||
16 | maximum amounts: (1) prior to July 1, 1951, $400 per month or | ||||||
17 | $4,800 per year;
(2) between July 1, 1951 and June 30, 1957 | ||||||
18 | inclusive, $625 per month or $7,500
per year; (3) beginning | ||||||
19 | July 1, 1957, no limitation.
| ||||||
20 | In the case of service of an employee in a position | ||||||
21 | involving
part-time employment, compensation shall be | ||||||
22 | determined according to the
employees' earnings record.
| ||||||
23 | (b) For periods of service on and after January 1, 1978, | ||||||
24 | all
remuneration for personal services performed defined as | ||||||
25 | "wages" under
the Social Security Enabling Act, including that |
| |||||||
| |||||||
1 | part of such
remuneration which is in excess of any maximum | ||||||
2 | limitation provided in
such Act, and including any benefits | ||||||
3 | received by an employee under a sick
pay plan in effect before | ||||||
4 | January 1, 1981, but excluding lump sum salary
payments:
| ||||||
5 | (1) for vacation,
| ||||||
6 | (2) for accumulated unused sick leave,
| ||||||
7 | (3) upon discharge or dismissal,
| ||||||
8 | (4) for approved holidays.
| ||||||
9 | (c) For periods of service on or after December 16, 1978, | ||||||
10 | compensation
also includes any benefits, other than lump sum | ||||||
11 | salary payments made at
termination of employment, which an | ||||||
12 | employee receives or is eligible to
receive under a sick pay | ||||||
13 | plan authorized by law.
| ||||||
14 | (d) For periods of service after September 30, 1985, | ||||||
15 | compensation also
includes any remuneration for personal | ||||||
16 | services not included as "wages"
under the Social Security | ||||||
17 | Enabling Act, which is deducted for purposes of
participation | ||||||
18 | in a program established pursuant to Section 125 of the
| ||||||
19 | Internal Revenue Code or its successor laws.
| ||||||
20 | (e) For members for which Section 1-160 applies for periods | ||||||
21 | of service on and after January 1, 2011, all remuneration for | ||||||
22 | personal services performed defined as "wages" under the Social | ||||||
23 | Security Enabling Act, excluding remuneration that is in excess | ||||||
24 | of the annual earnings, salary, or wages of a member or | ||||||
25 | participant, as provided in subsection (b-5) of Section 1-160, | ||||||
26 | but including any benefits received by an employee under a sick |
| |||||||
| |||||||
1 | pay plan in effect before January 1, 1981.
Compensation shall | ||||||
2 | exclude lump sum salary payments: | ||||||
3 | (1) for vacation; | ||||||
4 | (2) for accumulated unused sick leave; | ||||||
5 | (3) upon discharge or dismissal; and | ||||||
6 | (4) for approved holidays. | ||||||
7 | (f) Notwithstanding any other provision of this Code, the | ||||||
8 | compensation of a Tier I member for the purposes of this Code | ||||||
9 | shall not exceed, for periods of service on or after the | ||||||
10 | effective date of this amendatory Act of the 98th General | ||||||
11 | Assembly, the annual contribution and benefit base established | ||||||
12 | for the applicable year by the Commissioner of Social Security | ||||||
13 | under the federal Social Security Act; except that this | ||||||
14 | limitation does not apply to a member's compensation that is | ||||||
15 | determined under an employment contract or collective | ||||||
16 | bargaining agreement that is in effect on the effective date of | ||||||
17 | this amendatory Act of the 98th General Assembly and has not | ||||||
18 | been amended or renewed after that date. | ||||||
19 | (Source: P.A. 96-1490, eff. 1-1-11.)
| ||||||
20 | (40 ILCS 5/14-103.40 new) | ||||||
21 | Sec. 14-103.40. Tier I member. "Tier I member": A member of | ||||||
22 | this System who first became a member or participant before | ||||||
23 | January 1, 2011 under any reciprocal retirement system or | ||||||
24 | pension fund established under this Code other than a | ||||||
25 | retirement system or pension fund established under Article 2, |
| |||||||
| |||||||
1 | 3, 4, 5, 6, or 18 of this Code. | ||||||
2 | (40 ILCS 5/14-103.41 new) | ||||||
3 | Sec. 14-103.41. Tier I retiree. "Tier I retiree": A former | ||||||
4 | Tier I member who is receiving a retirement annuity.
| ||||||
5 | (40 ILCS 5/14-107) (from Ch. 108 1/2, par. 14-107)
| ||||||
6 | Sec. 14-107. Retirement annuity - service and age - | ||||||
7 | conditions. | ||||||
8 | (a) A member is entitled to a retirement annuity after | ||||||
9 | having at least 8 years of
creditable service.
| ||||||
10 | (b) A member who has at least 35 years of creditable | ||||||
11 | service may claim his
or her retirement annuity at any age.
A | ||||||
12 | member having at least 8 years of creditable service but less | ||||||
13 | than 35 may
claim his or her retirement annuity upon or after | ||||||
14 | attainment of age 60
or, beginning January 1, 2001, any lesser | ||||||
15 | age which, when added to the
number of years of his or her | ||||||
16 | creditable service, equals at least 85.
A member upon or after | ||||||
17 | attainment of age 55 having at least 25 years of creditable | ||||||
18 | service (30 years if retirement is before
January 1, 2001) may | ||||||
19 | elect to receive the lower retirement annuity provided
in | ||||||
20 | paragraph (c) of Section 14-108 of this Code. For purposes of | ||||||
21 | the rule
of 85, portions of years shall be counted in whole | ||||||
22 | months.
| ||||||
23 | (c) Notwithstanding subsection (b) of this Section, for a | ||||||
24 | Tier I member who begins receiving a retirement annuity under |
| |||||||
| |||||||
1 | this Article after July 1, 2013: | ||||||
2 | (1) If the Tier I member is at least 45 years old on | ||||||
3 | the effective date of this amendatory Act of the 98th | ||||||
4 | General Assembly, then the references to age 55 and 60 in | ||||||
5 | subsection (b) of this Section remain unchanged and the | ||||||
6 | references to 85 in subsection (b) of this Section remain | ||||||
7 | unchanged. | ||||||
8 | (2) If the Tier I member is at least 40 but less than | ||||||
9 | 45 years old on the effective date of this amendatory Act | ||||||
10 | of the 98th General Assembly, then the references to age 55 | ||||||
11 | and 60 in subsection (b) of this Section are increased by | ||||||
12 | one year and the references to 85 in subsection (b) are | ||||||
13 | increased to 87. | ||||||
14 | (3) If the Tier I member is at least 35 but less than | ||||||
15 | 40 years old on the effective date of this amendatory Act | ||||||
16 | of the 98th General Assembly, then the references to age 55 | ||||||
17 | and 60 in subsection (b) of this Section are increased by 3 | ||||||
18 | years and the references to 85 in subsection (b) are | ||||||
19 | increased to 91. | ||||||
20 | (4) If the Tier I member is less than 35 years old on | ||||||
21 | the effective date of this amendatory Act of the 98th | ||||||
22 | General Assembly, then the references to age 55 and 60 in | ||||||
23 | subsection (b) of this Section are increased by 5 years and | ||||||
24 | the references to 85 in subsection (b) are increased to 95. | ||||||
25 | Notwithstanding Section 1-103.1, this subsection (c) | ||||||
26 | applies without regard to whether or not the Tier I member is |
| |||||||
| |||||||
1 | in active service under this Article on or after the effective | ||||||
2 | date of this amendatory Act of the 98th General Assembly. | ||||||
3 | (d) The allowance shall begin with the first full calendar | ||||||
4 | month specified in the
member's application therefor, the first | ||||||
5 | day of which shall not be before the
date of withdrawal as | ||||||
6 | approved by the board. Regardless of the date of
withdrawal, | ||||||
7 | the allowance need not begin within one year of application
| ||||||
8 | therefor.
| ||||||
9 | (Source: P.A. 91-927, eff. 12-14-00.)
| ||||||
10 | (40 ILCS 5/14-108) (from Ch. 108 1/2, par. 14-108)
| ||||||
11 | Sec. 14-108. Amount of retirement annuity. A member who has | ||||||
12 | contributed to the System for at least 12 months shall
be | ||||||
13 | entitled to a prior service annuity for each year of certified | ||||||
14 | prior
service credited to him, except that a member shall | ||||||
15 | receive 1/3 of the prior
service annuity for each year of | ||||||
16 | service for which contributions have been
made and all of such | ||||||
17 | annuity shall be payable after the member has made
| ||||||
18 | contributions for a period of 3 years. Proportionate amounts | ||||||
19 | shall be payable
for service of less than a full year after | ||||||
20 | completion of at least 12 months.
| ||||||
21 | The total period of service to be considered in | ||||||
22 | establishing the measure
of prior service annuity shall include | ||||||
23 | service credited in the Teachers'
Retirement System of the | ||||||
24 | State of Illinois and the State Universities
Retirement System | ||||||
25 | for which contributions have been made by the member to
such |
| |||||||
| |||||||
1 | systems; provided that at least 1 year of the total period of 3 | ||||||
2 | years
prescribed for the allowance of a full measure of prior | ||||||
3 | service annuity
shall consist of membership service in this | ||||||
4 | system for which credit has been
granted.
| ||||||
5 | (a) In the case of a member who retires on or after January | ||||||
6 | 1, 1998 and
is a noncovered employee, the retirement annuity | ||||||
7 | for membership service and
prior service shall be 2.2% of final | ||||||
8 | average compensation for each year of
service. Any service | ||||||
9 | credit established as a covered employee shall be
computed as | ||||||
10 | stated in
paragraph (b).
| ||||||
11 | (b) In the case of a member who retires on or after January | ||||||
12 | 1, 1998
and is a covered employee, the retirement annuity for | ||||||
13 | membership
service and prior service shall be computed as | ||||||
14 | stated in paragraph (a) for
all service credit established as a | ||||||
15 | noncovered employee; for service credit
established as a | ||||||
16 | covered employee it shall be 1.67% of final average
| ||||||
17 | compensation for each year of service.
| ||||||
18 | (c) For a member
retiring after attaining age 55 but before | ||||||
19 | age 60 with at least 30 but less
than 35 years of creditable | ||||||
20 | service if retirement is before January 1, 2001, or
with at | ||||||
21 | least 25 but less than 30 years of creditable service if | ||||||
22 | retirement is
on or after January 1, 2001, the retirement | ||||||
23 | annuity shall be reduced by 1/2
of 1% for each month that the | ||||||
24 | member's age is under age 60 at the time of
retirement. For | ||||||
25 | members to whom subsection (c) of Section 14-107 applies, the | ||||||
26 | references to age 55 and 60 in this subsection (c) are |
| |||||||
| |||||||
1 | increased as provided in subsection (c) of Section 14-107.
| ||||||
2 | (d) A retirement annuity shall not exceed 75% of final | ||||||
3 | average compensation,
subject to such extension as may result | ||||||
4 | from the application of Section 14-114
or Section 14-115.
| ||||||
5 | (e) The retirement annuity payable to any covered employee | ||||||
6 | who is a member
of the System and in service on January 1, | ||||||
7 | 1969, or in service thereafter
in 1969 as a result of | ||||||
8 | legislation enacted by the Illinois General Assembly
| ||||||
9 | transferring the member to State employment from county | ||||||
10 | employment in a
county Department of Public Aid in counties of | ||||||
11 | 3,000,000 or more population,
under a plan of coordination with | ||||||
12 | the Old Age, Survivors and Disability
provisions thereof, if | ||||||
13 | not fully insured for Old Age Insurance payments
under the | ||||||
14 | Federal Old Age, Survivors and Disability Insurance provisions
| ||||||
15 | at the date of acceptance of a retirement annuity, shall not be | ||||||
16 | less than
the amount for which the member would have been | ||||||
17 | eligible if coordination
were not applicable.
| ||||||
18 | (f) The retirement annuity payable to any covered employee | ||||||
19 | who is a member
of the System and in service on January 1, | ||||||
20 | 1969, or in service thereafter
in 1969 as a result of the | ||||||
21 | legislation designated in the immediately preceding
paragraph, | ||||||
22 | if fully insured for Old Age Insurance payments under the | ||||||
23 | Federal
Social Security Act at the date of acceptance of a | ||||||
24 | retirement annuity, shall
not be less than an amount which when | ||||||
25 | added to the Primary Insurance Benefit
payable to the member | ||||||
26 | upon attainment of age 65 under such Federal Act,
will equal |
| |||||||
| |||||||
1 | the annuity which would otherwise be payable if the coordinated
| ||||||
2 | plan of coverage were not applicable.
| ||||||
3 | (g) In the case of a member who is a noncovered employee, | ||||||
4 | the retirement
annuity for membership service as a security | ||||||
5 | employee of the Department of
Corrections or security employee | ||||||
6 | of the Department of Human Services shall
be: if retirement | ||||||
7 | occurs on or after January 1, 2001, 3% of final average
| ||||||
8 | compensation for each year of creditable service; or if | ||||||
9 | retirement occurs
before January 1, 2001, 1.9% of final average | ||||||
10 | compensation for each of the
first 10 years of service, 2.1% | ||||||
11 | for each of the next 10 years of
service, 2.25% for each year | ||||||
12 | of service in excess of 20 but not
exceeding 30, and 2.5% for | ||||||
13 | each year in excess of 30; except that the
annuity may be | ||||||
14 | calculated under subsection (a) rather than this subsection (g)
| ||||||
15 | if the resulting annuity is greater.
| ||||||
16 | (h) In the case of a member who is a covered employee, the | ||||||
17 | retirement
annuity for membership service as a security | ||||||
18 | employee of the Department of
Corrections or security employee | ||||||
19 | of the Department of Human Services shall
be: if retirement | ||||||
20 | occurs on or after January 1, 2001, 2.5% of final average
| ||||||
21 | compensation for each year of creditable service; if retirement | ||||||
22 | occurs before
January 1, 2001, 1.67% of final average | ||||||
23 | compensation for each of the first
10 years of service, 1.90% | ||||||
24 | for each of the next 10 years of
service, 2.10% for each year | ||||||
25 | of service in excess of 20 but not
exceeding 30, and 2.30% for | ||||||
26 | each year in excess of 30.
|
| |||||||
| |||||||
1 | (i) For the purposes of this Section and Section 14-133 of | ||||||
2 | this Act,
the term "security employee of the Department of | ||||||
3 | Corrections" and the term
"security employee of the Department | ||||||
4 | of Human Services" shall have the
meanings ascribed to them in | ||||||
5 | subsection (c) of Section 14-110.
| ||||||
6 | (j) The retirement annuity computed pursuant to paragraphs | ||||||
7 | (g) or (h)
shall be applicable only to those security employees | ||||||
8 | of the Department of
Corrections and security employees of the | ||||||
9 | Department of Human Services who
have at least 20 years of | ||||||
10 | membership service and who are not eligible for
the alternative | ||||||
11 | retirement annuity provided under Section 14-110. However,
| ||||||
12 | persons transferring to this System under Section 14-108.2 or | ||||||
13 | 14-108.2c
who have service credit under Article 16 of this Code | ||||||
14 | may count such service
toward establishing their eligibility | ||||||
15 | under the 20-year service requirement of
this subsection; but | ||||||
16 | such service may be used only for establishing such
| ||||||
17 | eligibility, and not for the purpose of increasing or | ||||||
18 | calculating any benefit.
| ||||||
19 | (k) (Blank).
| ||||||
20 | (l) The changes to this Section made by this amendatory Act | ||||||
21 | of 1997
(changing certain retirement annuity formulas from a | ||||||
22 | stepped rate to a flat
rate) apply to members who retire on or | ||||||
23 | after January 1, 1998, without regard
to whether employment | ||||||
24 | terminated before the effective date of this amendatory
Act of | ||||||
25 | 1997. An annuity shall not be calculated in steps by using the | ||||||
26 | new flat
rate for some steps and the superseded stepped rate |
| |||||||
| |||||||
1 | for other steps of the same
type of service.
| ||||||
2 | (Source: P.A. 91-927, eff. 12-14-00; 92-14, eff. 6-28-01.)
| ||||||
3 | (40 ILCS 5/14-110) (from Ch. 108 1/2, par. 14-110)
| ||||||
4 | Sec. 14-110. Alternative retirement annuity.
| ||||||
5 | (a) Any member who has withdrawn from service with not less | ||||||
6 | than 20
years of eligible creditable service and has attained | ||||||
7 | age 55, and any
member who has withdrawn from service with not | ||||||
8 | less than 25 years of
eligible creditable service and has | ||||||
9 | attained age 50, regardless of whether
the attainment of either | ||||||
10 | of the specified ages occurs while the member is
still in | ||||||
11 | service, shall be entitled to receive at the option of the | ||||||
12 | member,
in lieu of the regular or minimum retirement annuity, a | ||||||
13 | retirement annuity
computed as follows:
| ||||||
14 | (i) for periods of service as a noncovered employee:
if | ||||||
15 | retirement occurs on or after January 1, 2001, 3% of final
| ||||||
16 | average compensation for each year of creditable service; | ||||||
17 | if retirement occurs
before January 1, 2001, 2 1/4% of | ||||||
18 | final average compensation for each of the
first 10 years | ||||||
19 | of creditable service, 2 1/2% for each year above 10 years | ||||||
20 | to
and including 20 years of creditable service, and 2 3/4% | ||||||
21 | for each year of
creditable service above 20 years; and
| ||||||
22 | (ii) for periods of eligible creditable service as a | ||||||
23 | covered employee:
if retirement occurs on or after January | ||||||
24 | 1, 2001, 2.5% of final average
compensation for each year | ||||||
25 | of creditable service; if retirement occurs before
January |
| |||||||
| |||||||
1 | 1, 2001, 1.67% of final average compensation for each of | ||||||
2 | the first
10 years of such service, 1.90% for each of the | ||||||
3 | next 10 years of such service,
2.10% for each year of such | ||||||
4 | service in excess of 20 but not exceeding 30, and
2.30% for | ||||||
5 | each year in excess of 30.
| ||||||
6 | Such annuity shall be subject to a maximum of 75% of final | ||||||
7 | average
compensation if retirement occurs before January 1, | ||||||
8 | 2001 or to a maximum
of 80% of final average compensation if | ||||||
9 | retirement occurs on or after January
1, 2001.
| ||||||
10 | These rates shall not be applicable to any service | ||||||
11 | performed
by a member as a covered employee which is not | ||||||
12 | eligible creditable service.
Service as a covered employee | ||||||
13 | which is not eligible creditable service
shall be subject to | ||||||
14 | the rates and provisions of Section 14-108.
| ||||||
15 | (a-5) Notwithstanding subsection (a) of this Section, for a | ||||||
16 | Tier I member who begins receiving a retirement annuity under | ||||||
17 | this Section after July 1, 2013: | ||||||
18 | (1) If the Tier I member is at least 45 years old on | ||||||
19 | the effective date of this amendatory Act of the 98th | ||||||
20 | General Assembly, then the references to age 50 and 55 in | ||||||
21 | subsection (a) of this Section remain unchanged. | ||||||
22 | (2) If the Tier I member is at least 40 but less than | ||||||
23 | 45 years old on the effective date of this amendatory Act | ||||||
24 | of the 98th General Assembly, then the references to age 50 | ||||||
25 | and 55 in subsection (a) of this Section are increased by | ||||||
26 | one year. |
| |||||||
| |||||||
1 | (3) If the Tier I member is at least 35 but less than | ||||||
2 | 40 years old on the effective date of this amendatory Act | ||||||
3 | of the 98th General Assembly, then the references to age 50 | ||||||
4 | and 55 in subsection (a) of this Section are increased by 3 | ||||||
5 | years. | ||||||
6 | (4) If the Tier I member is less than 35 years old on | ||||||
7 | the effective date of this amendatory Act of the 98th | ||||||
8 | General Assembly, then the references to age 50 and 55 in | ||||||
9 | subsection (a) of this Section are increased by 5 years. | ||||||
10 | Notwithstanding Section 1-103.1, this subsection (a-5) | ||||||
11 | applies without regard to whether or not the Tier I member is | ||||||
12 | in active service under this Article on or after the effective | ||||||
13 | date of this amendatory Act of the 98th General Assembly. | ||||||
14 | (b) For the purpose of this Section, "eligible creditable | ||||||
15 | service" means
creditable service resulting from service in one | ||||||
16 | or more of the following
positions:
| ||||||
17 | (1) State policeman;
| ||||||
18 | (2) fire fighter in the fire protection service of a | ||||||
19 | department;
| ||||||
20 | (3) air pilot;
| ||||||
21 | (4) special agent;
| ||||||
22 | (5) investigator for the Secretary of State;
| ||||||
23 | (6) conservation police officer;
| ||||||
24 | (7) investigator for the Department of Revenue or the | ||||||
25 | Illinois Gaming Board;
| ||||||
26 | (8) security employee of the Department of Human |
| |||||||
| |||||||
1 | Services;
| ||||||
2 | (9) Central Management Services security police | ||||||
3 | officer;
| ||||||
4 | (10) security employee of the Department of | ||||||
5 | Corrections or the Department of Juvenile Justice;
| ||||||
6 | (11) dangerous drugs investigator;
| ||||||
7 | (12) investigator for the Department of State Police;
| ||||||
8 | (13) investigator for the Office of the Attorney | ||||||
9 | General;
| ||||||
10 | (14) controlled substance inspector;
| ||||||
11 | (15) investigator for the Office of the State's | ||||||
12 | Attorneys Appellate
Prosecutor;
| ||||||
13 | (16) Commerce Commission police officer;
| ||||||
14 | (17) arson investigator;
| ||||||
15 | (18) State highway maintenance worker.
| ||||||
16 | A person employed in one of the positions specified in this | ||||||
17 | subsection is
entitled to eligible creditable service for | ||||||
18 | service credit earned under this
Article while undergoing the | ||||||
19 | basic police training course approved by the
Illinois Law | ||||||
20 | Enforcement Training
Standards Board, if
completion of that | ||||||
21 | training is required of persons serving in that position.
For | ||||||
22 | the purposes of this Code, service during the required basic | ||||||
23 | police
training course shall be deemed performance of the | ||||||
24 | duties of the specified
position, even though the person is not | ||||||
25 | a sworn peace officer at the time of
the training.
| ||||||
26 | (c) For the purposes of this Section:
|
| |||||||
| |||||||
1 | (1) The term "state policeman" includes any title or | ||||||
2 | position
in the Department of State Police that is held by | ||||||
3 | an individual employed
under the State Police Act.
| ||||||
4 | (2) The term "fire fighter in the fire protection | ||||||
5 | service of a
department" includes all officers in such fire | ||||||
6 | protection service
including fire chiefs and assistant | ||||||
7 | fire chiefs.
| ||||||
8 | (3) The term "air pilot" includes any employee whose | ||||||
9 | official job
description on file in the Department of | ||||||
10 | Central Management Services, or
in the department by which | ||||||
11 | he is employed if that department is not covered
by the | ||||||
12 | Personnel Code, states that his principal duty is the | ||||||
13 | operation of
aircraft, and who possesses a pilot's license; | ||||||
14 | however, the change in this
definition made by this | ||||||
15 | amendatory Act of 1983 shall not operate to exclude
any | ||||||
16 | noncovered employee who was an "air pilot" for the purposes | ||||||
17 | of this
Section on January 1, 1984.
| ||||||
18 | (4) The term "special agent" means any person who by | ||||||
19 | reason of
employment by the Division of Narcotic Control, | ||||||
20 | the Bureau of Investigation
or, after July 1, 1977, the | ||||||
21 | Division of Criminal Investigation, the
Division of | ||||||
22 | Internal Investigation, the Division of Operations, or any
| ||||||
23 | other Division or organizational
entity in the Department | ||||||
24 | of State Police is vested by law with duties to
maintain | ||||||
25 | public order, investigate violations of the criminal law of | ||||||
26 | this
State, enforce the laws of this State, make arrests |
| |||||||
| |||||||
1 | and recover property.
The term "special agent" includes any | ||||||
2 | title or position in the Department
of State Police that is | ||||||
3 | held by an individual employed under the State
Police Act.
| ||||||
4 | (5) The term "investigator for the Secretary of State" | ||||||
5 | means any person
employed by the Office of the Secretary of | ||||||
6 | State and vested with such
investigative duties as render | ||||||
7 | him ineligible for coverage under the Social
Security Act | ||||||
8 | by reason of Sections 218(d)(5)(A), 218(d)(8)(D) and | ||||||
9 | 218(l)(1)
of that Act.
| ||||||
10 | A person who became employed as an investigator for the | ||||||
11 | Secretary of
State between January 1, 1967 and December 31, | ||||||
12 | 1975, and who has served as
such until attainment of age | ||||||
13 | 60, either continuously or with a single break
in service | ||||||
14 | of not more than 3 years duration, which break terminated | ||||||
15 | before
January 1, 1976, shall be entitled to have his | ||||||
16 | retirement annuity
calculated in accordance with | ||||||
17 | subsection (a), notwithstanding
that he has less than 20 | ||||||
18 | years of credit for such service.
| ||||||
19 | (6) The term "Conservation Police Officer" means any | ||||||
20 | person employed
by the Division of Law Enforcement of the | ||||||
21 | Department of Natural Resources and
vested with such law | ||||||
22 | enforcement duties as render him ineligible for coverage
| ||||||
23 | under the Social Security Act by reason of Sections | ||||||
24 | 218(d)(5)(A), 218(d)(8)(D),
and 218(l)(1) of that Act. The | ||||||
25 | term "Conservation Police Officer" includes
the positions | ||||||
26 | of Chief Conservation Police Administrator and Assistant
|
| |||||||
| |||||||
1 | Conservation Police Administrator.
| ||||||
2 | (7) The term "investigator for the Department of | ||||||
3 | Revenue" means any
person employed by the Department of | ||||||
4 | Revenue and vested with such
investigative duties as render | ||||||
5 | him ineligible for coverage under the Social
Security Act | ||||||
6 | by reason of Sections 218(d)(5)(A), 218(d)(8)(D) and | ||||||
7 | 218(l)(1)
of that Act.
| ||||||
8 | The term "investigator for the Illinois Gaming Board" | ||||||
9 | means any
person employed as such by the Illinois Gaming | ||||||
10 | Board and vested with such
peace officer duties as render | ||||||
11 | the person ineligible for coverage under the Social
| ||||||
12 | Security Act by reason of Sections 218(d)(5)(A), | ||||||
13 | 218(d)(8)(D), and 218(l)(1)
of that Act.
| ||||||
14 | (8) The term "security employee of the Department of | ||||||
15 | Human Services"
means any person employed by the Department | ||||||
16 | of Human Services who (i) is
employed at the Chester Mental | ||||||
17 | Health Center and has daily contact with the
residents | ||||||
18 | thereof, (ii) is employed within a security unit at a | ||||||
19 | facility
operated by the Department and has daily contact | ||||||
20 | with the residents of the
security unit, (iii) is employed | ||||||
21 | at a facility operated by the Department
that includes a | ||||||
22 | security unit and is regularly scheduled to work at least
| ||||||
23 | 50% of his or her working hours within that security unit, | ||||||
24 | or (iv) is a mental health police officer.
"Mental health | ||||||
25 | police officer" means any person employed by the Department | ||||||
26 | of
Human Services in a position pertaining to the |
| |||||||
| |||||||
1 | Department's mental health and
developmental disabilities | ||||||
2 | functions who is vested with such law enforcement
duties as | ||||||
3 | render the person ineligible for coverage under the Social | ||||||
4 | Security
Act by reason of Sections 218(d)(5)(A), | ||||||
5 | 218(d)(8)(D) and 218(l)(1) of that
Act. "Security unit" | ||||||
6 | means that portion of a facility that is devoted to
the | ||||||
7 | care, containment, and treatment of persons committed to | ||||||
8 | the Department of
Human Services as sexually violent | ||||||
9 | persons, persons unfit to stand trial, or
persons not | ||||||
10 | guilty by reason of insanity. With respect to past | ||||||
11 | employment,
references to the Department of Human Services | ||||||
12 | include its predecessor, the
Department of Mental Health | ||||||
13 | and Developmental Disabilities.
| ||||||
14 | The changes made to this subdivision (c)(8) by Public | ||||||
15 | Act 92-14 apply to persons who retire on or after January | ||||||
16 | 1,
2001, notwithstanding Section 1-103.1.
| ||||||
17 | (9) "Central Management Services security police | ||||||
18 | officer" means any
person employed by the Department of | ||||||
19 | Central Management Services who is
vested with such law | ||||||
20 | enforcement duties as render him ineligible for
coverage | ||||||
21 | under the Social Security Act by reason of Sections | ||||||
22 | 218(d)(5)(A),
218(d)(8)(D) and 218(l)(1) of that Act.
| ||||||
23 | (10) For a member who first became an employee under | ||||||
24 | this Article before July 1, 2005, the term "security | ||||||
25 | employee of the Department of Corrections or the Department | ||||||
26 | of Juvenile Justice"
means any employee of the Department |
| |||||||
| |||||||
1 | of Corrections or the Department of Juvenile Justice or the | ||||||
2 | former
Department of Personnel, and any member or employee | ||||||
3 | of the Prisoner
Review Board, who has daily contact with | ||||||
4 | inmates or youth by working within a
correctional facility | ||||||
5 | or Juvenile facility operated by the Department of Juvenile | ||||||
6 | Justice or who is a parole officer or an employee who has
| ||||||
7 | direct contact with committed persons in the performance of | ||||||
8 | his or her
job duties. For a member who first becomes an | ||||||
9 | employee under this Article on or after July 1, 2005, the | ||||||
10 | term means an employee of the Department of Corrections or | ||||||
11 | the Department of Juvenile Justice who is any of the | ||||||
12 | following: (i) officially headquartered at a correctional | ||||||
13 | facility or Juvenile facility operated by the Department of | ||||||
14 | Juvenile Justice, (ii) a parole officer, (iii) a member of | ||||||
15 | the apprehension unit, (iv) a member of the intelligence | ||||||
16 | unit, (v) a member of the sort team, or (vi) an | ||||||
17 | investigator.
| ||||||
18 | (11) The term "dangerous drugs investigator" means any | ||||||
19 | person who is
employed as such by the Department of Human | ||||||
20 | Services.
| ||||||
21 | (12) The term "investigator for the Department of State | ||||||
22 | Police" means
a person employed by the Department of State | ||||||
23 | Police who is vested under
Section 4 of the Narcotic | ||||||
24 | Control Division Abolition Act with such
law enforcement | ||||||
25 | powers as render him ineligible for coverage under the
| ||||||
26 | Social Security Act by reason of Sections 218(d)(5)(A), |
| |||||||
| |||||||
1 | 218(d)(8)(D) and
218(l)(1) of that Act.
| ||||||
2 | (13) "Investigator for the Office of the Attorney | ||||||
3 | General" means any
person who is employed as such by the | ||||||
4 | Office of the Attorney General and
is vested with such | ||||||
5 | investigative duties as render him ineligible for
coverage | ||||||
6 | under the Social Security Act by reason of Sections | ||||||
7 | 218(d)(5)(A),
218(d)(8)(D) and 218(l)(1) of that Act. For | ||||||
8 | the period before January 1,
1989, the term includes all | ||||||
9 | persons who were employed as investigators by the
Office of | ||||||
10 | the Attorney General, without regard to social security | ||||||
11 | status.
| ||||||
12 | (14) "Controlled substance inspector" means any person | ||||||
13 | who is employed
as such by the Department of Professional | ||||||
14 | Regulation and is vested with such
law enforcement duties | ||||||
15 | as render him ineligible for coverage under the Social
| ||||||
16 | Security Act by reason of Sections 218(d)(5)(A), | ||||||
17 | 218(d)(8)(D) and 218(l)(1) of
that Act. The term | ||||||
18 | "controlled substance inspector" includes the Program
| ||||||
19 | Executive of Enforcement and the Assistant Program | ||||||
20 | Executive of Enforcement.
| ||||||
21 | (15) The term "investigator for the Office of the | ||||||
22 | State's Attorneys
Appellate Prosecutor" means a person | ||||||
23 | employed in that capacity on a full
time basis under the | ||||||
24 | authority of Section 7.06 of the State's Attorneys
| ||||||
25 | Appellate Prosecutor's Act.
| ||||||
26 | (16) "Commerce Commission police officer" means any |
| |||||||
| |||||||
1 | person employed
by the Illinois Commerce Commission who is | ||||||
2 | vested with such law
enforcement duties as render him | ||||||
3 | ineligible for coverage under the Social
Security Act by | ||||||
4 | reason of Sections 218(d)(5)(A), 218(d)(8)(D), and
| ||||||
5 | 218(l)(1) of that Act.
| ||||||
6 | (17) "Arson investigator" means any person who is | ||||||
7 | employed as such by
the Office of the State Fire Marshal | ||||||
8 | and is vested with such law enforcement
duties as render | ||||||
9 | the person ineligible for coverage under the Social | ||||||
10 | Security
Act by reason of Sections 218(d)(5)(A), | ||||||
11 | 218(d)(8)(D), and 218(l)(1) of that
Act. A person who was | ||||||
12 | employed as an arson
investigator on January 1, 1995 and is | ||||||
13 | no longer in service but not yet
receiving a retirement | ||||||
14 | annuity may convert his or her creditable service for
| ||||||
15 | employment as an arson investigator into eligible | ||||||
16 | creditable service by paying
to the System the difference | ||||||
17 | between the employee contributions actually paid
for that | ||||||
18 | service and the amounts that would have been contributed if | ||||||
19 | the
applicant were contributing at the rate applicable to | ||||||
20 | persons with the same
social security status earning | ||||||
21 | eligible creditable service on the date of
application.
| ||||||
22 | (18) The term "State highway maintenance worker" means | ||||||
23 | a person who is
either of the following:
| ||||||
24 | (i) A person employed on a full-time basis by the | ||||||
25 | Illinois
Department of Transportation in the position | ||||||
26 | of
highway maintainer,
highway maintenance lead |
| |||||||
| |||||||
1 | worker,
highway maintenance lead/lead worker,
heavy | ||||||
2 | construction equipment operator,
power shovel | ||||||
3 | operator, or
bridge mechanic; and
whose principal | ||||||
4 | responsibility is to perform, on the roadway, the | ||||||
5 | actual
maintenance necessary to keep the highways that | ||||||
6 | form a part of the State
highway system in serviceable | ||||||
7 | condition for vehicular traffic.
| ||||||
8 | (ii) A person employed on a full-time basis by the | ||||||
9 | Illinois
State Toll Highway Authority in the position | ||||||
10 | of
equipment operator/laborer H-4,
equipment | ||||||
11 | operator/laborer H-6,
welder H-4,
welder H-6,
| ||||||
12 | mechanical/electrical H-4,
mechanical/electrical H-6,
| ||||||
13 | water/sewer H-4,
water/sewer H-6,
sign maker/hanger | ||||||
14 | H-4,
sign maker/hanger H-6,
roadway lighting H-4,
| ||||||
15 | roadway lighting H-6,
structural H-4,
structural H-6,
| ||||||
16 | painter H-4, or
painter H-6; and
whose principal | ||||||
17 | responsibility is to perform, on the roadway, the | ||||||
18 | actual
maintenance necessary to keep the Authority's | ||||||
19 | tollways in serviceable condition
for vehicular | ||||||
20 | traffic.
| ||||||
21 | (d) A security employee of the Department of Corrections or | ||||||
22 | the Department of Juvenile Justice, and a security
employee of | ||||||
23 | the Department of Human Services who is not a mental health | ||||||
24 | police
officer, shall not be eligible for the alternative | ||||||
25 | retirement annuity provided
by this Section unless he or she | ||||||
26 | meets the following minimum age and service
requirements at the |
| |||||||
| |||||||
1 | time of retirement:
| ||||||
2 | (i) 25 years of eligible creditable service and age 55; | ||||||
3 | or
| ||||||
4 | (ii) beginning January 1, 1987, 25 years of eligible | ||||||
5 | creditable service
and age 54, or 24 years of eligible | ||||||
6 | creditable service and age 55; or
| ||||||
7 | (iii) beginning January 1, 1988, 25 years of eligible | ||||||
8 | creditable service
and age 53, or 23 years of eligible | ||||||
9 | creditable service and age 55; or
| ||||||
10 | (iv) beginning January 1, 1989, 25 years of eligible | ||||||
11 | creditable service
and age 52, or 22 years of eligible | ||||||
12 | creditable service and age 55; or
| ||||||
13 | (v) beginning January 1, 1990, 25 years of eligible | ||||||
14 | creditable service
and age 51, or 21 years of eligible | ||||||
15 | creditable service and age 55; or
| ||||||
16 | (vi) beginning January 1, 1991, 25 years of eligible | ||||||
17 | creditable service
and age 50, or 20 years of eligible | ||||||
18 | creditable service and age 55.
| ||||||
19 | For members to whom subsection (a-5) of this Section | ||||||
20 | applies, the references to age 50 and 55 in item (vi) of this | ||||||
21 | subsection are increased as provided in subsection (a-5). | ||||||
22 | Persons who have service credit under Article 16 of this | ||||||
23 | Code for service
as a security employee of the Department of | ||||||
24 | Corrections or the Department of Juvenile Justice, or the | ||||||
25 | Department
of Human Services in a position requiring | ||||||
26 | certification as a teacher may
count such service toward |
| |||||||
| |||||||
1 | establishing their eligibility under the service
requirements | ||||||
2 | of this Section; but such service may be used only for
| ||||||
3 | establishing such eligibility, and not for the purpose of | ||||||
4 | increasing or
calculating any benefit.
| ||||||
5 | (e) If a member enters military service while working in a | ||||||
6 | position in
which eligible creditable service may be earned, | ||||||
7 | and returns to State
service in the same or another such | ||||||
8 | position, and fulfills in all other
respects the conditions | ||||||
9 | prescribed in this Article for credit for military
service, | ||||||
10 | such military service shall be credited as eligible creditable
| ||||||
11 | service for the purposes of the retirement annuity prescribed | ||||||
12 | in this Section.
| ||||||
13 | (f) For purposes of calculating retirement annuities under | ||||||
14 | this
Section, periods of service rendered after December 31, | ||||||
15 | 1968 and before
October 1, 1975 as a covered employee in the | ||||||
16 | position of special agent,
conservation police officer, mental | ||||||
17 | health police officer, or investigator
for the Secretary of | ||||||
18 | State, shall be deemed to have been service as a
noncovered | ||||||
19 | employee, provided that the employee pays to the System prior | ||||||
20 | to
retirement an amount equal to (1) the difference between the | ||||||
21 | employee
contributions that would have been required for such | ||||||
22 | service as a
noncovered employee, and the amount of employee | ||||||
23 | contributions actually
paid, plus (2) if payment is made after | ||||||
24 | July 31, 1987, regular interest
on the amount specified in item | ||||||
25 | (1) from the date of service to the date
of payment.
| ||||||
26 | For purposes of calculating retirement annuities under |
| |||||||
| |||||||
1 | this Section,
periods of service rendered after December 31, | ||||||
2 | 1968 and before January 1,
1982 as a covered employee in the | ||||||
3 | position of investigator for the
Department of Revenue shall be | ||||||
4 | deemed to have been service as a noncovered
employee, provided | ||||||
5 | that the employee pays to the System prior to retirement
an | ||||||
6 | amount equal to (1) the difference between the employee | ||||||
7 | contributions
that would have been required for such service as | ||||||
8 | a noncovered employee,
and the amount of employee contributions | ||||||
9 | actually paid, plus (2) if payment
is made after January 1, | ||||||
10 | 1990, regular interest on the amount specified in
item (1) from | ||||||
11 | the date of service to the date of payment.
| ||||||
12 | (g) A State policeman may elect, not later than January 1, | ||||||
13 | 1990, to
establish eligible creditable service for up to 10 | ||||||
14 | years of his service as
a policeman under Article 3, by filing | ||||||
15 | a written election with the Board,
accompanied by payment of an | ||||||
16 | amount to be determined by the Board, equal to
(i) the | ||||||
17 | difference between the amount of employee and employer
| ||||||
18 | contributions transferred to the System under Section 3-110.5, | ||||||
19 | and the
amounts that would have been contributed had such | ||||||
20 | contributions been made
at the rates applicable to State | ||||||
21 | policemen, plus (ii) interest thereon at
the effective rate for | ||||||
22 | each year, compounded annually, from the date of
service to the | ||||||
23 | date of payment.
| ||||||
24 | Subject to the limitation in subsection (i), a State | ||||||
25 | policeman may elect,
not later than July 1, 1993, to establish | ||||||
26 | eligible creditable service for
up to 10 years of his service |
| |||||||
| |||||||
1 | as a member of the County Police Department
under Article 9, by | ||||||
2 | filing a written election with the Board, accompanied
by | ||||||
3 | payment of an amount to be determined by the Board, equal to | ||||||
4 | (i) the
difference between the amount of employee and employer | ||||||
5 | contributions
transferred to the System under Section 9-121.10 | ||||||
6 | and the amounts that would
have been contributed had those | ||||||
7 | contributions been made at the rates
applicable to State | ||||||
8 | policemen, plus (ii) interest thereon at the effective
rate for | ||||||
9 | each year, compounded annually, from the date of service to the
| ||||||
10 | date of payment.
| ||||||
11 | (h) Subject to the limitation in subsection (i), a State | ||||||
12 | policeman or
investigator for the Secretary of State may elect | ||||||
13 | to establish eligible
creditable service for up to 12 years of | ||||||
14 | his service as a policeman under
Article 5, by filing a written | ||||||
15 | election with the Board on or before January
31, 1992, and | ||||||
16 | paying to the System by January 31, 1994 an amount to be
| ||||||
17 | determined by the Board, equal to (i) the difference between | ||||||
18 | the amount of
employee and employer contributions transferred | ||||||
19 | to the System under Section
5-236, and the amounts that would | ||||||
20 | have been contributed had such
contributions been made at the | ||||||
21 | rates applicable to State policemen, plus
(ii) interest thereon | ||||||
22 | at the effective rate for each year, compounded
annually, from | ||||||
23 | the date of service to the date of payment.
| ||||||
24 | Subject to the limitation in subsection (i), a State | ||||||
25 | policeman,
conservation police officer, or investigator for | ||||||
26 | the Secretary of State may
elect to establish eligible |
| |||||||
| |||||||
1 | creditable service for up to 10 years of
service as a sheriff's | ||||||
2 | law enforcement employee under Article 7, by filing
a written | ||||||
3 | election with the Board on or before January 31, 1993, and | ||||||
4 | paying
to the System by January 31, 1994 an amount to be | ||||||
5 | determined by the Board,
equal to (i) the difference between | ||||||
6 | the amount of employee and
employer contributions transferred | ||||||
7 | to the System under Section
7-139.7, and the amounts that would | ||||||
8 | have been contributed had such
contributions been made at the | ||||||
9 | rates applicable to State policemen, plus
(ii) interest thereon | ||||||
10 | at the effective rate for each year, compounded
annually, from | ||||||
11 | the date of service to the date of payment.
| ||||||
12 | Subject to the limitation in subsection (i), a State | ||||||
13 | policeman,
conservation police officer, or investigator for | ||||||
14 | the Secretary of State may
elect to establish eligible | ||||||
15 | creditable service for up to 5 years of
service as a police | ||||||
16 | officer under Article 3, a policeman under Article 5, a | ||||||
17 | sheriff's law enforcement employee under Article 7, a member of | ||||||
18 | the county police department under Article 9, or a police | ||||||
19 | officer under Article 15 by filing
a written election with the | ||||||
20 | Board and paying
to the System an amount to be determined by | ||||||
21 | the Board,
equal to (i) the difference between the amount of | ||||||
22 | employee and
employer contributions transferred to the System | ||||||
23 | under Section
3-110.6, 5-236, 7-139.8, 9-121.10, or 15-134.4 | ||||||
24 | and the amounts that would have been contributed had such
| ||||||
25 | contributions been made at the rates applicable to State | ||||||
26 | policemen, plus
(ii) interest thereon at the effective rate for |
| |||||||
| |||||||
1 | each year, compounded
annually, from the date of service to the | ||||||
2 | date of payment. | ||||||
3 | Subject to the limitation in subsection (i), an | ||||||
4 | investigator for the Office of the Attorney General, or an | ||||||
5 | investigator for the Department of Revenue, may elect to | ||||||
6 | establish eligible creditable service for up to 5 years of | ||||||
7 | service as a police officer under Article 3, a policeman under | ||||||
8 | Article 5, a sheriff's law enforcement employee under Article | ||||||
9 | 7, or a member of the county police department under Article 9 | ||||||
10 | by filing a written election with the Board within 6 months | ||||||
11 | after August 25, 2009 (the effective date of Public Act 96-745) | ||||||
12 | and paying to the System an amount to be determined by the | ||||||
13 | Board, equal to (i) the difference between the amount of | ||||||
14 | employee and employer contributions transferred to the System | ||||||
15 | under Section 3-110.6, 5-236, 7-139.8, or 9-121.10 and the | ||||||
16 | amounts that would have been contributed had such contributions | ||||||
17 | been made at the rates applicable to State policemen, plus (ii) | ||||||
18 | interest thereon at the actuarially assumed rate for each year, | ||||||
19 | compounded annually, from the date of service to the date of | ||||||
20 | payment. | ||||||
21 | Subject to the limitation in subsection (i), a State | ||||||
22 | policeman, conservation police officer, investigator for the | ||||||
23 | Office of the Attorney General, an investigator for the | ||||||
24 | Department of Revenue, or investigator for the Secretary of | ||||||
25 | State may elect to establish eligible creditable service for up | ||||||
26 | to 5 years of service as a person employed by a participating |
| |||||||
| |||||||
1 | municipality to perform police duties, or law enforcement | ||||||
2 | officer employed on a full-time basis by a forest preserve | ||||||
3 | district under Article 7, a county corrections officer, or a | ||||||
4 | court services officer under Article 9, by filing a written | ||||||
5 | election with the Board within 6 months after August 25, 2009 | ||||||
6 | (the effective date of Public Act 96-745) and paying to the | ||||||
7 | System an amount to be determined by the Board, equal to (i) | ||||||
8 | the difference between the amount of employee and employer | ||||||
9 | contributions transferred to the System under Sections 7-139.8 | ||||||
10 | and 9-121.10 and the amounts that would have been contributed | ||||||
11 | had such contributions been made at the rates applicable to | ||||||
12 | State policemen, plus (ii) interest thereon at the actuarially | ||||||
13 | assumed rate for each year, compounded annually, from the date | ||||||
14 | of service to the date of payment. | ||||||
15 | (i) The total amount of eligible creditable service | ||||||
16 | established by any
person under subsections (g), (h), (j), (k), | ||||||
17 | and (l) of this
Section shall not exceed 12 years.
| ||||||
18 | (j) Subject to the limitation in subsection (i), an | ||||||
19 | investigator for
the Office of the State's Attorneys Appellate | ||||||
20 | Prosecutor or a controlled
substance inspector may elect to
| ||||||
21 | establish eligible creditable service for up to 10 years of his | ||||||
22 | service as
a policeman under Article 3 or a sheriff's law | ||||||
23 | enforcement employee under
Article 7, by filing a written | ||||||
24 | election with the Board, accompanied by
payment of an amount to | ||||||
25 | be determined by the Board, equal to (1) the
difference between | ||||||
26 | the amount of employee and employer contributions
transferred |
| |||||||
| |||||||
1 | to the System under Section 3-110.6 or 7-139.8, and the amounts
| ||||||
2 | that would have been contributed had such contributions been | ||||||
3 | made at the
rates applicable to State policemen, plus (2) | ||||||
4 | interest thereon at the
effective rate for each year, | ||||||
5 | compounded annually, from the date of service
to the date of | ||||||
6 | payment.
| ||||||
7 | (k) Subject to the limitation in subsection (i) of this | ||||||
8 | Section, an
alternative formula employee may elect to establish | ||||||
9 | eligible creditable
service for periods spent as a full-time | ||||||
10 | law enforcement officer or full-time
corrections officer | ||||||
11 | employed by the federal government or by a state or local
| ||||||
12 | government located outside of Illinois, for which credit is not | ||||||
13 | held in any
other public employee pension fund or retirement | ||||||
14 | system. To obtain this
credit, the applicant must file a | ||||||
15 | written application with the Board by March
31, 1998, | ||||||
16 | accompanied by evidence of eligibility acceptable to the Board | ||||||
17 | and
payment of an amount to be determined by the Board, equal | ||||||
18 | to (1) employee
contributions for the credit being established, | ||||||
19 | based upon the applicant's
salary on the first day as an | ||||||
20 | alternative formula employee after the employment
for which | ||||||
21 | credit is being established and the rates then applicable to
| ||||||
22 | alternative formula employees, plus (2) an amount determined by | ||||||
23 | the Board
to be the employer's normal cost of the benefits | ||||||
24 | accrued for the credit being
established, plus (3) regular | ||||||
25 | interest on the amounts in items (1) and (2) from
the first day | ||||||
26 | as an alternative formula employee after the employment for |
| |||||||
| |||||||
1 | which
credit is being established to the date of payment.
| ||||||
2 | (l) Subject to the limitation in subsection (i), a security | ||||||
3 | employee of
the Department of Corrections may elect, not later | ||||||
4 | than July 1, 1998, to
establish eligible creditable service for | ||||||
5 | up to 10 years of his or her service
as a policeman under | ||||||
6 | Article 3, by filing a written election with the Board,
| ||||||
7 | accompanied by payment of an amount to be determined by the | ||||||
8 | Board, equal to
(i) the difference between the amount of | ||||||
9 | employee and employer contributions
transferred to the System | ||||||
10 | under Section 3-110.5, and the amounts that would
have been | ||||||
11 | contributed had such contributions been made at the rates | ||||||
12 | applicable
to security employees of the Department of | ||||||
13 | Corrections, plus (ii) interest
thereon at the effective rate | ||||||
14 | for each year, compounded annually, from the date
of service to | ||||||
15 | the date of payment.
| ||||||
16 | (m) The amendatory changes to this Section made by this | ||||||
17 | amendatory Act of the 94th General Assembly apply only to: (1) | ||||||
18 | security employees of the Department of Juvenile Justice | ||||||
19 | employed by the Department of Corrections before the effective | ||||||
20 | date of this amendatory Act of the 94th General Assembly and | ||||||
21 | transferred to the Department of Juvenile Justice by this | ||||||
22 | amendatory Act of the 94th General Assembly; and (2) persons | ||||||
23 | employed by the Department of Juvenile Justice on or after the | ||||||
24 | effective date of this amendatory Act of the 94th General | ||||||
25 | Assembly who are required by subsection (b) of Section 3-2.5-15 | ||||||
26 | of the Unified Code of Corrections to have a bachelor's or |
| |||||||
| |||||||
1 | advanced degree from an accredited college or university with a | ||||||
2 | specialization in criminal justice, education, psychology, | ||||||
3 | social work, or a closely related social science or, in the | ||||||
4 | case of persons who provide vocational training, who are | ||||||
5 | required to have adequate knowledge in the skill for which they | ||||||
6 | are providing the vocational training.
| ||||||
7 | (n) A person employed in a position under subsection (b) of | ||||||
8 | this Section who has purchased service credit under subsection | ||||||
9 | (j) of Section 14-104 or subsection (b) of Section 14-105 in | ||||||
10 | any other capacity under this Article may convert up to 5 years | ||||||
11 | of that service credit into service credit covered under this | ||||||
12 | Section by paying to the Fund an amount equal to (1) the | ||||||
13 | additional employee contribution required under Section | ||||||
14 | 14-133, plus (2) the additional employer contribution required | ||||||
15 | under Section 14-131, plus (3) interest on items (1) and (2) at | ||||||
16 | the actuarially assumed rate from the date of the service to | ||||||
17 | the date of payment. | ||||||
18 | (Source: P.A. 95-530, eff. 8-28-07; 95-1036, eff. 2-17-09; | ||||||
19 | 96-37, eff. 7-13-09; 96-745, eff. 8-25-09; 96-1000, eff. | ||||||
20 | 7-2-10.)
| ||||||
21 | (40 ILCS 5/14-114) (from Ch. 108 1/2, par. 14-114)
| ||||||
22 | Sec. 14-114. Automatic increase in retirement annuity.
| ||||||
23 | (a) Except as provided in subsections (a-1) and (a-2), any | ||||||
24 | Any person receiving a retirement annuity under this Article | ||||||
25 | who
retires having attained age 60, or who retires before age |
| |||||||
| |||||||
1 | 60 having at
least 35 years of creditable service, or who | ||||||
2 | retires on or after January
1, 2001 at an age which, when added | ||||||
3 | to the number of years of his or her
creditable service, equals | ||||||
4 | at least 85, shall, on January 1 next
following the first full | ||||||
5 | year of retirement, have the amount of the then fixed
and | ||||||
6 | payable monthly retirement annuity increased 3%. Any person | ||||||
7 | receiving a
retirement annuity under this Article who retires | ||||||
8 | before attainment of age 60
and with less than (i) 35 years of | ||||||
9 | creditable service if retirement
is before January 1, 2001, or | ||||||
10 | (ii) the number of years of creditable service
which, when | ||||||
11 | added to the member's age, would equal 85, if retirement is on
| ||||||
12 | or after January 1, 2001, shall have the amount of the fixed | ||||||
13 | and payable
retirement annuity increased by 3% on the January 1 | ||||||
14 | occurring on or next
following (1) attainment of age 60, or (2) | ||||||
15 | the first anniversary of retirement,
whichever occurs later. | ||||||
16 | However, for persons who receive the alternative
retirement | ||||||
17 | annuity under Section 14-110, references in this subsection (a) | ||||||
18 | to
attainment of age 60 shall be deemed to refer to attainment | ||||||
19 | of age 55. For a
person receiving early retirement incentives | ||||||
20 | under Section 14-108.3 whose
retirement annuity began after | ||||||
21 | January 1, 1992 pursuant to an extension granted
under | ||||||
22 | subsection (e) of that Section, the first anniversary of | ||||||
23 | retirement shall
be deemed to be January 1, 1993.
For a person | ||||||
24 | who retires on or after June 28, 2001 and on or before October | ||||||
25 | 1, 2001,
and whose retirement annuity is calculated, in whole | ||||||
26 | or in part, under Section
14-110 or subsection (g) or (h) of |
| |||||||
| |||||||
1 | Section 14-108, the first anniversary of
retirement shall be | ||||||
2 | deemed to be January 1, 2002.
| ||||||
3 | On each January 1 following the date of the initial | ||||||
4 | increase under this
subsection, the employee's monthly | ||||||
5 | retirement annuity shall be increased
by an additional 3%.
| ||||||
6 | Beginning January 1, 1990 and except as provided in | ||||||
7 | subsections (a-1) and (a-2) , all automatic annual increases | ||||||
8 | payable under
this Section shall be calculated as a percentage | ||||||
9 | of the total annuity
payable at the time of the increase, | ||||||
10 | including previous increases granted
under this Article.
| ||||||
11 | (a-1) Notwithstanding any other provision of this Article, | ||||||
12 | for a Tier I retiree, the amount of each automatic annual | ||||||
13 | increase in retirement annuity occurring on or after the | ||||||
14 | effective date of this amendatory Act of the 98th General | ||||||
15 | Assembly shall be the lesser of $600 ($750 if the annuity is | ||||||
16 | based primarily upon service as a noncovered employee) or 3% of | ||||||
17 | the total annuity
payable at the time of the increase, | ||||||
18 | including previous increases granted. | ||||||
19 | (a-2) Notwithstanding any other provision of this Article, | ||||||
20 | for a Tier I retiree, the monthly retirement annuity shall | ||||||
21 | first be subject to annual increases on the January 1 occurring | ||||||
22 | on or next after the attainment of age 67 or the January 1 | ||||||
23 | occurring on or next after the fifth anniversary of the annuity | ||||||
24 | start date, whichever occurs earlier. If on the effective date | ||||||
25 | of this amendatory Act of the 98th General Assembly a Tier I | ||||||
26 | retiree has already received an annual increase under this |
| |||||||
| |||||||
1 | Section but does not yet meet the new eligibility requirements | ||||||
2 | of this subsection, the annual increases already received shall | ||||||
3 | continue in force, but no additional annual increase shall be | ||||||
4 | granted until the Tier I retiree meets the new eligibility | ||||||
5 | requirements. | ||||||
6 | (a-3) Notwithstanding Section 1-103.1, subsections (a-1) | ||||||
7 | and (a-2) apply without regard to whether or not the Tier I | ||||||
8 | retiree is in active service under this Article on or after the | ||||||
9 | effective date of this amendatory Act of the 98th General | ||||||
10 | Assembly. | ||||||
11 | (b) The provisions of subsection (a) of this Section shall | ||||||
12 | be
applicable to an employee only if the employee makes the | ||||||
13 | additional
contributions required after December 31, 1969 for | ||||||
14 | the purpose of the
automatic increases for not less than the | ||||||
15 | equivalent of one full year.
If an employee becomes an | ||||||
16 | annuitant before his additional contributions
equal one full | ||||||
17 | year's contributions based on his salary at the date of
| ||||||
18 | retirement, the employee may pay the necessary balance of the
| ||||||
19 | contributions to the system, without interest, and be eligible | ||||||
20 | for the
increasing annuity authorized by this Section.
| ||||||
21 | (c) The provisions of subsection (a) of this Section shall | ||||||
22 | not be
applicable to any annuitant who is on retirement on | ||||||
23 | December 31, 1969, and
thereafter returns to State service, | ||||||
24 | unless the member has established at
least one year of | ||||||
25 | additional creditable service following reentry into service.
| ||||||
26 | (d) In addition to other increases which may be provided by |
| |||||||
| |||||||
1 | this Section,
on January 1, 1981 any annuitant who was | ||||||
2 | receiving a retirement annuity
on or before January 1, 1971 | ||||||
3 | shall have his retirement annuity then being
paid increased $1 | ||||||
4 | per month for each year of creditable service. On January
1, | ||||||
5 | 1982, any annuitant who began receiving a retirement annuity on | ||||||
6 | or
before January 1, 1977, shall have his retirement annuity | ||||||
7 | then being paid
increased $1 per month for each year of | ||||||
8 | creditable service.
| ||||||
9 | On January 1, 1987, any annuitant who began receiving a | ||||||
10 | retirement
annuity on or before January 1, 1977, shall have the | ||||||
11 | monthly retirement annuity
increased by an amount equal to 8¢ | ||||||
12 | per year of creditable service times the
number of years that | ||||||
13 | have elapsed since the annuity began.
| ||||||
14 | (e) Every person who receives the alternative retirement | ||||||
15 | annuity under
Section 14-110 and who is eligible to receive the | ||||||
16 | 3% increase under subsection
(a) on January 1, 1986, shall also | ||||||
17 | receive on that date a one-time increase
in retirement annuity | ||||||
18 | equal to the difference between (1) his actual
retirement | ||||||
19 | annuity on that date, including any increases received under
| ||||||
20 | subsection (a), and (2) the amount of retirement annuity he | ||||||
21 | would have
received on that date if the amendments to | ||||||
22 | subsection (a) made by Public
Act 84-162 had been in effect | ||||||
23 | since the date of his retirement.
| ||||||
24 | (Source: P.A. 91-927, eff. 12-14-00; 92-14, eff. 6-28-01;
| ||||||
25 | 92-651, eff. 7-11-02.)
|
| |||||||
| |||||||
1 | (40 ILCS 5/14-131)
| ||||||
2 | Sec. 14-131. Contributions by State.
| ||||||
3 | (a) The State shall make contributions to the System by | ||||||
4 | appropriations of
amounts which, together with other employer | ||||||
5 | contributions from trust, federal,
and other funds, employee | ||||||
6 | contributions, investment income, and other income,
will be | ||||||
7 | sufficient to meet the cost of maintaining and administering | ||||||
8 | the System
on a 100% 90% funded basis in accordance with | ||||||
9 | actuarial recommendations by the end of State fiscal year 2043 .
| ||||||
10 | For the purposes of this Section and Section 14-135.08, | ||||||
11 | references to State
contributions refer only to employer | ||||||
12 | contributions and do not include employee
contributions that | ||||||
13 | are picked up or otherwise paid by the State or a
department on | ||||||
14 | behalf of the employee.
| ||||||
15 | (b) The Board shall determine the total amount of State | ||||||
16 | contributions
required for each fiscal year on the basis of the | ||||||
17 | actuarial tables and other
assumptions adopted by the Board, | ||||||
18 | using the formula in subsection (e).
| ||||||
19 | The Board shall also determine a State contribution rate | ||||||
20 | for each fiscal
year, expressed as a percentage of payroll, | ||||||
21 | based on the total required State
contribution for that fiscal | ||||||
22 | year (less the amount received by the System from
| ||||||
23 | appropriations under Section 8.12 of the State Finance Act and | ||||||
24 | Section 1 of the
State Pension Funds Continuing Appropriation | ||||||
25 | Act, if any, for the fiscal year
ending on the June 30 | ||||||
26 | immediately preceding the applicable November 15
certification |
| |||||||
| |||||||
1 | deadline), the estimated payroll (including all forms of
| ||||||
2 | compensation) for personal services rendered by eligible | ||||||
3 | employees, and the
recommendations of the actuary.
| ||||||
4 | For the purposes of this Section and Section 14.1 of the | ||||||
5 | State Finance Act,
the term "eligible employees" includes | ||||||
6 | employees who participate in the System,
persons who may elect | ||||||
7 | to participate in the System but have not so elected,
persons | ||||||
8 | who are serving a qualifying period that is required for | ||||||
9 | participation,
and annuitants employed by a department as | ||||||
10 | described in subdivision (a)(1) or
(a)(2) of Section 14-111.
| ||||||
11 | (c) Contributions shall be made by the several departments | ||||||
12 | for each pay
period by warrants drawn by the State Comptroller | ||||||
13 | against their respective
funds or appropriations based upon | ||||||
14 | vouchers stating the amount to be so
contributed. These amounts | ||||||
15 | shall be based on the full rate certified by the
Board under | ||||||
16 | Section 14-135.08 for that fiscal year.
From the effective date | ||||||
17 | of this amendatory Act of the 93rd General
Assembly through the | ||||||
18 | payment of the final payroll from fiscal year 2004
| ||||||
19 | appropriations, the several departments shall not make | ||||||
20 | contributions
for the remainder of fiscal year 2004 but shall | ||||||
21 | instead make payments
as required under subsection (a-1) of | ||||||
22 | Section 14.1 of the State Finance Act.
The several departments | ||||||
23 | shall resume those contributions at the commencement of
fiscal | ||||||
24 | year 2005.
| ||||||
25 | (c-1) Notwithstanding subsection (c) of this Section, for | ||||||
26 | fiscal years 2010, 2012, and 2013 only, contributions by the |
| |||||||
| |||||||
1 | several departments are not required to be made for General | ||||||
2 | Revenue Funds payrolls processed by the Comptroller. Payrolls | ||||||
3 | paid by the several departments from all other State funds must | ||||||
4 | continue to be processed pursuant to subsection (c) of this | ||||||
5 | Section. | ||||||
6 | (c-2) For State fiscal years 2010, 2012, and 2013 only, on | ||||||
7 | or as soon as possible after the 15th day of each month, the | ||||||
8 | Board shall submit vouchers for payment of State contributions | ||||||
9 | to the System, in a total monthly amount of one-twelfth of the | ||||||
10 | fiscal year General Revenue Fund contribution as certified by | ||||||
11 | the System pursuant to Section 14-135.08 of the Illinois | ||||||
12 | Pension Code. | ||||||
13 | (d) If an employee is paid from trust funds or federal | ||||||
14 | funds, the
department or other employer shall pay employer | ||||||
15 | contributions from those funds
to the System at the certified | ||||||
16 | rate, unless the terms of the trust or the
federal-State | ||||||
17 | agreement preclude the use of the funds for that purpose, in
| ||||||
18 | which case the required employer contributions shall be paid by | ||||||
19 | the State.
From the effective date of this amendatory
Act of | ||||||
20 | the 93rd General Assembly through the payment of the final
| ||||||
21 | payroll from fiscal year 2004 appropriations, the department or | ||||||
22 | other
employer shall not pay contributions for the remainder of | ||||||
23 | fiscal year
2004 but shall instead make payments as required | ||||||
24 | under subsection (a-1) of
Section 14.1 of the State Finance | ||||||
25 | Act. The department or other employer shall
resume payment of
| ||||||
26 | contributions at the commencement of fiscal year 2005.
|
| |||||||
| |||||||
1 | (e) For State fiscal years 2014 through 2043, the minimum | ||||||
2 | contribution
to the System to be made by the State for each | ||||||
3 | fiscal year shall be an amount
determined by the System to be | ||||||
4 | equal to the sum of (1) the State's portion of the projected | ||||||
5 | normal cost for that fiscal year, plus (2) an amount sufficient | ||||||
6 | to bring the total assets of the
System up to 100% of the total | ||||||
7 | actuarial liabilities of the System by the end of
State fiscal | ||||||
8 | year 2043. In making these determinations, the required State
| ||||||
9 | contribution shall be calculated each year as a level | ||||||
10 | percentage of payroll
over the years remaining to and including | ||||||
11 | fiscal year 2043 and shall be
determined under the projected | ||||||
12 | unit credit actuarial cost method. | ||||||
13 | For State fiscal years 2012 and 2013 through 2045 , the minimum | ||||||
14 | contribution
to the System to be made by the State for each | ||||||
15 | fiscal year shall be an amount
determined by the System to be | ||||||
16 | sufficient to bring the total assets of the
System up to 90% of | ||||||
17 | the total actuarial liabilities of the System by the end
of | ||||||
18 | State fiscal year 2045. In making these determinations, the | ||||||
19 | required State
contribution shall be calculated each year as a | ||||||
20 | level percentage of payroll
over the years remaining to and | ||||||
21 | including fiscal year 2045 and shall be
determined under the | ||||||
22 | projected unit credit actuarial cost method.
| ||||||
23 | For State fiscal years 1996 through 2005, the State | ||||||
24 | contribution to
the System, as a percentage of the applicable | ||||||
25 | employee payroll, shall be
increased in equal annual increments | ||||||
26 | so that by State fiscal year 2011, the
State is contributing at |
| |||||||
| |||||||
1 | the rate required under this Section; except that
(i) for State | ||||||
2 | fiscal year 1998, for all purposes of this Code and any other
| ||||||
3 | law of this State, the certified percentage of the applicable | ||||||
4 | employee payroll
shall be 5.052% for employees earning eligible | ||||||
5 | creditable service under Section
14-110 and 6.500% for all | ||||||
6 | other employees, notwithstanding any contrary
certification | ||||||
7 | made under Section 14-135.08 before the effective date of this
| ||||||
8 | amendatory Act of 1997, and (ii)
in the following specified | ||||||
9 | State fiscal years, the State contribution to
the System shall | ||||||
10 | not be less than the following indicated percentages of the
| ||||||
11 | applicable employee payroll, even if the indicated percentage | ||||||
12 | will produce a
State contribution in excess of the amount | ||||||
13 | otherwise required under this
subsection and subsection (a):
| ||||||
14 | 9.8% in FY 1999;
10.0% in FY 2000;
10.2% in FY 2001;
10.4% in FY | ||||||
15 | 2002;
10.6% in FY 2003; and
10.8% in FY 2004.
| ||||||
16 | Notwithstanding any other provision of this Article, the | ||||||
17 | total required State
contribution to the System for State | ||||||
18 | fiscal year 2006 is $203,783,900.
| ||||||
19 | Notwithstanding any other provision of this Article, the | ||||||
20 | total required State
contribution to the System for State | ||||||
21 | fiscal year 2007 is $344,164,400.
| ||||||
22 | For each of State fiscal years 2008 through 2009, the State | ||||||
23 | contribution to
the System, as a percentage of the applicable | ||||||
24 | employee payroll, shall be
increased in equal annual increments | ||||||
25 | from the required State contribution for State fiscal year | ||||||
26 | 2007, so that by State fiscal year 2011, the
State is |
| |||||||
| |||||||
1 | contributing at the rate otherwise required under this Section.
| ||||||
2 | Notwithstanding any other provision of this Article, the | ||||||
3 | total required State General Revenue Fund contribution for | ||||||
4 | State fiscal year 2010 is $723,703,100 and shall be made from | ||||||
5 | the proceeds of bonds sold in fiscal year 2010 pursuant to | ||||||
6 | Section 7.2 of the General Obligation Bond Act, less (i) the | ||||||
7 | pro rata share of bond sale expenses determined by the System's | ||||||
8 | share of total bond proceeds, (ii) any amounts received from | ||||||
9 | the General Revenue Fund in fiscal year 2010, and (iii) any | ||||||
10 | reduction in bond proceeds due to the issuance of discounted | ||||||
11 | bonds, if applicable. | ||||||
12 | Notwithstanding any other provision of this Article, the
| ||||||
13 | total required State General Revenue Fund contribution for
| ||||||
14 | State fiscal year 2011 is the amount recertified by the System | ||||||
15 | on or before April 1, 2011 pursuant to Section 14-135.08 and | ||||||
16 | shall be made from
the proceeds of bonds sold in fiscal year | ||||||
17 | 2011 pursuant to
Section 7.2 of the General Obligation Bond | ||||||
18 | Act, less (i) the
pro rata share of bond sale expenses | ||||||
19 | determined by the System's
share of total bond proceeds, (ii) | ||||||
20 | any amounts received from
the General Revenue Fund in fiscal | ||||||
21 | year 2011, and (iii) any
reduction in bond proceeds due to the | ||||||
22 | issuance of discounted
bonds, if applicable. | ||||||
23 | Beginning in State fiscal year 2044, the minimum State | ||||||
24 | contribution for each fiscal year shall be the amount needed to | ||||||
25 | maintain the total assets of the System at 100% of the total | ||||||
26 | actuarial liabilities of the System. |
| |||||||
| |||||||
1 | Beginning in State fiscal year 2046, the minimum State | ||||||
2 | contribution for
each fiscal year shall be the amount needed to | ||||||
3 | maintain the total assets of
the System at 90% of the total | ||||||
4 | actuarial liabilities of the System.
| ||||||
5 | Amounts received by the System pursuant to Section 25 of | ||||||
6 | the Budget Stabilization Act or Section 8.12 of the State | ||||||
7 | Finance Act in any fiscal year do not reduce and do not | ||||||
8 | constitute payment of any portion of the minimum State | ||||||
9 | contribution required under this Article in that fiscal year. | ||||||
10 | Such amounts shall not reduce, and shall not be included in the | ||||||
11 | calculation of, the required State contributions under this | ||||||
12 | Article in any future year until the System has reached a | ||||||
13 | funding ratio of at least 100% 90% . A reference in this Article | ||||||
14 | to the "required State contribution" or any substantially | ||||||
15 | similar term does not include or apply to any amounts payable | ||||||
16 | to the System under Section 25 of the Budget Stabilization Act.
| ||||||
17 | Notwithstanding any other provision of this Section, the | ||||||
18 | required State
contribution for State fiscal year 2005 and for | ||||||
19 | fiscal year 2008 and each fiscal year thereafter through State | ||||||
20 | fiscal year 2013 , as
calculated under this Section and
| ||||||
21 | certified under Section 14-135.08, shall not exceed an amount | ||||||
22 | equal to (i) the
amount of the required State contribution that | ||||||
23 | would have been calculated under
this Section for that fiscal | ||||||
24 | year if the System had not received any payments
under | ||||||
25 | subsection (d) of Section 7.2 of the General Obligation Bond | ||||||
26 | Act, minus
(ii) the portion of the State's total debt service |
| |||||||
| |||||||
1 | payments for that fiscal
year on the bonds issued in fiscal | ||||||
2 | year 2003 for the purposes of that Section 7.2, as determined
| ||||||
3 | and certified by the Comptroller, that is the same as the | ||||||
4 | System's portion of
the total moneys distributed under | ||||||
5 | subsection (d) of Section 7.2 of the General
Obligation Bond | ||||||
6 | Act. In determining this maximum for State fiscal years 2008 | ||||||
7 | through 2010, however, the amount referred to in item (i) shall | ||||||
8 | be increased, as a percentage of the applicable employee | ||||||
9 | payroll, in equal increments calculated from the sum of the | ||||||
10 | required State contribution for State fiscal year 2007 plus the | ||||||
11 | applicable portion of the State's total debt service payments | ||||||
12 | for fiscal year 2007 on the bonds issued in fiscal year 2003 | ||||||
13 | for the purposes of Section 7.2 of the General
Obligation Bond | ||||||
14 | Act, so that, by State fiscal year 2011, the
State is | ||||||
15 | contributing at the rate otherwise required under this Section.
| ||||||
16 | (f) After the submission of all payments for eligible | ||||||
17 | employees
from personal services line items in fiscal year 2004 | ||||||
18 | have been made,
the Comptroller shall provide to the System a | ||||||
19 | certification of the sum
of all fiscal year 2004 expenditures | ||||||
20 | for personal services that would
have been covered by payments | ||||||
21 | to the System under this Section if the
provisions of this | ||||||
22 | amendatory Act of the 93rd General Assembly had not been
| ||||||
23 | enacted. Upon
receipt of the certification, the System shall | ||||||
24 | determine the amount
due to the System based on the full rate | ||||||
25 | certified by the Board under
Section 14-135.08 for fiscal year | ||||||
26 | 2004 in order to meet the State's
obligation under this |
| |||||||
| |||||||
1 | Section. The System shall compare this amount
due to the amount | ||||||
2 | received by the System in fiscal year 2004 through
payments | ||||||
3 | under this Section and under Section 6z-61 of the State Finance | ||||||
4 | Act.
If the amount
due is more than the amount received, the | ||||||
5 | difference shall be termed the
"Fiscal Year 2004 Shortfall" for | ||||||
6 | purposes of this Section, and the
Fiscal Year 2004 Shortfall | ||||||
7 | shall be satisfied under Section 1.2 of the State
Pension Funds | ||||||
8 | Continuing Appropriation Act. If the amount due is less than | ||||||
9 | the
amount received, the
difference shall be termed the "Fiscal | ||||||
10 | Year 2004 Overpayment" for purposes of
this Section, and the | ||||||
11 | Fiscal Year 2004 Overpayment shall be repaid by
the System to | ||||||
12 | the Pension Contribution Fund as soon as practicable
after the | ||||||
13 | certification.
| ||||||
14 | (g) For purposes of determining the required State | ||||||
15 | contribution to the System, the value of the System's assets | ||||||
16 | shall be equal to the actuarial value of the System's assets, | ||||||
17 | which shall be calculated as follows: | ||||||
18 | As of June 30, 2008, the actuarial value of the System's | ||||||
19 | assets shall be equal to the market value of the assets as of | ||||||
20 | that date. In determining the actuarial value of the System's | ||||||
21 | assets for fiscal years after June 30, 2008, any actuarial | ||||||
22 | gains or losses from investment return incurred in a fiscal | ||||||
23 | year shall be recognized in equal annual amounts over the | ||||||
24 | 5-year period following that fiscal year. | ||||||
25 | (h) For purposes of determining the required State | ||||||
26 | contribution to the System for a particular year, the actuarial |
| |||||||
| |||||||
1 | value of assets shall be assumed to earn a rate of return equal | ||||||
2 | to the System's actuarially assumed rate of return. | ||||||
3 | (i) After the submission of all payments for eligible | ||||||
4 | employees from personal services line items paid from the | ||||||
5 | General Revenue Fund in fiscal year 2010 have been made, the | ||||||
6 | Comptroller shall provide to the System a certification of the | ||||||
7 | sum of all fiscal year 2010 expenditures for personal services | ||||||
8 | that would have been covered by payments to the System under | ||||||
9 | this Section if the provisions of this amendatory Act of the | ||||||
10 | 96th General Assembly had not been enacted. Upon receipt of the | ||||||
11 | certification, the System shall determine the amount due to the | ||||||
12 | System based on the full rate certified by the Board under | ||||||
13 | Section 14-135.08 for fiscal year 2010 in order to meet the | ||||||
14 | State's obligation under this Section. The System shall compare | ||||||
15 | this amount due to the amount received by the System in fiscal | ||||||
16 | year 2010 through payments under this Section. If the amount | ||||||
17 | due is more than the amount received, the difference shall be | ||||||
18 | termed the "Fiscal Year 2010 Shortfall" for purposes of this | ||||||
19 | Section, and the Fiscal Year 2010 Shortfall shall be satisfied | ||||||
20 | under Section 1.2 of the State Pension Funds Continuing | ||||||
21 | Appropriation Act. If the amount due is less than the amount | ||||||
22 | received, the difference shall be termed the "Fiscal Year 2010 | ||||||
23 | Overpayment" for purposes of this Section, and the Fiscal Year | ||||||
24 | 2010 Overpayment shall be repaid by the System to the General | ||||||
25 | Revenue Fund as soon as practicable after the certification. | ||||||
26 | (j) After the submission of all payments for eligible |
| |||||||
| |||||||
1 | employees from personal services line items paid from the | ||||||
2 | General Revenue Fund in fiscal year 2011 have been made, the | ||||||
3 | Comptroller shall provide to the System a certification of the | ||||||
4 | sum of all fiscal year 2011 expenditures for personal services | ||||||
5 | that would have been covered by payments to the System under | ||||||
6 | this Section if the provisions of this amendatory Act of the | ||||||
7 | 96th General Assembly had not been enacted. Upon receipt of the | ||||||
8 | certification, the System shall determine the amount due to the | ||||||
9 | System based on the full rate certified by the Board under | ||||||
10 | Section 14-135.08 for fiscal year 2011 in order to meet the | ||||||
11 | State's obligation under this Section. The System shall compare | ||||||
12 | this amount due to the amount received by the System in fiscal | ||||||
13 | year 2011 through payments under this Section. If the amount | ||||||
14 | due is more than the amount received, the difference shall be | ||||||
15 | termed the "Fiscal Year 2011 Shortfall" for purposes of this | ||||||
16 | Section, and the Fiscal Year 2011 Shortfall shall be satisfied | ||||||
17 | under Section 1.2 of the State Pension Funds Continuing | ||||||
18 | Appropriation Act. If the amount due is less than the amount | ||||||
19 | received, the difference shall be termed the "Fiscal Year 2011 | ||||||
20 | Overpayment" for purposes of this Section, and the Fiscal Year | ||||||
21 | 2011 Overpayment shall be repaid by the System to the General | ||||||
22 | Revenue Fund as soon as practicable after the certification. | ||||||
23 | (k) For fiscal years 2012 and 2013 only, after the | ||||||
24 | submission of all payments for eligible employees from personal | ||||||
25 | services line items paid from the General Revenue Fund in the | ||||||
26 | fiscal year have been made, the Comptroller shall provide to |
| |||||||
| |||||||
1 | the System a certification of the sum of all expenditures in | ||||||
2 | the fiscal year for personal services. Upon receipt of the | ||||||
3 | certification, the System shall determine the amount due to the | ||||||
4 | System based on the full rate certified by the Board under | ||||||
5 | Section 14-135.08 for the fiscal year in order to meet the | ||||||
6 | State's obligation under this Section. The System shall compare | ||||||
7 | this amount due to the amount received by the System for the | ||||||
8 | fiscal year. If the amount due is more than the amount | ||||||
9 | received, the difference shall be termed the "Prior Fiscal Year | ||||||
10 | Shortfall" for purposes of this Section, and the Prior Fiscal | ||||||
11 | Year Shortfall shall be satisfied under Section 1.2 of the | ||||||
12 | State Pension Funds Continuing Appropriation Act. If the amount | ||||||
13 | due is less than the amount received, the difference shall be | ||||||
14 | termed the "Prior Fiscal Year Overpayment" for purposes of this | ||||||
15 | Section, and the Prior Fiscal Year Overpayment shall be repaid | ||||||
16 | by the System to the General Revenue Fund as soon as | ||||||
17 | practicable after the certification. | ||||||
18 | (Source: P.A. 96-43, eff. 7-15-09; 96-45, eff. 7-15-09; | ||||||
19 | 96-1000, eff. 7-2-10; 96-1497, eff. 1-14-11; 96-1511, eff. | ||||||
20 | 1-27-11; 96-1554, eff. 3-18-11; 97-72, eff. 7-1-11; 97-732, | ||||||
21 | eff. 6-30-12.)
| ||||||
22 | (40 ILCS 5/14-132) (from Ch. 108 1/2, par. 14-132)
| ||||||
23 | Sec. 14-132. Obligations of State ; funding guarantee . | ||||||
24 | (a) The payment of the required department
contributions, | ||||||
25 | all allowances,
annuities, benefits granted under this |
| |||||||
| |||||||
1 | Article, and all expenses of
administration of the system are | ||||||
2 | obligations of the State of Illinois to
the extent specified in | ||||||
3 | this Article.
| ||||||
4 | (b) All income of the system
shall be credited to a | ||||||
5 | separate account for this system in the State
treasury and | ||||||
6 | shall be used to pay allowances, annuities, benefits and
| ||||||
7 | administration expense.
| ||||||
8 | (c) Beginning July 1, 2013, the State shall be | ||||||
9 | contractually obligated to contribute to the System under | ||||||
10 | Section 14-131 in each State fiscal year an amount not less | ||||||
11 | than the sum of (i) the State's normal cost for that year and
| ||||||
12 | (ii) the portion of the unfunded accrued liability assigned to | ||||||
13 | that year by law in accordance with a schedule that distributes | ||||||
14 | payments equitably over a reasonable period of time and in | ||||||
15 | accordance with accepted actuarial practices. The obligations | ||||||
16 | created under this subsection (c) are contractual obligations | ||||||
17 | protected and enforceable under Article I, Section 16 and | ||||||
18 | Article XIII, Section 5 of the Illinois Constitution. | ||||||
19 | Notwithstanding any other provision of law, if the State | ||||||
20 | fails to pay in a State fiscal year the amount guaranteed under | ||||||
21 | this subsection, the System may bring a mandamus action in the | ||||||
22 | Circuit Court of Sangamon County to compel the State to make | ||||||
23 | that payment, irrespective of other remedies that
may be | ||||||
24 | available to the System. In ordering the State to make the | ||||||
25 | required payment, the court may order a reasonable payment | ||||||
26 | schedule to enable the State to make the required payment |
| |||||||
| |||||||
1 | without significantly imperiling the public health, safety, or | ||||||
2 | welfare. | ||||||
3 | Any payments required to be made by the State pursuant to | ||||||
4 | this subsection (c)
are expressly subordinated to the payment | ||||||
5 | of the principal, interest, and premium, if any, on any
bonded | ||||||
6 | debt obligation of the State or any other State-created entity, | ||||||
7 | either currently outstanding or to
be issued, for which the | ||||||
8 | source of repayment or security thereon is derived directly or | ||||||
9 | indirectly from
tax revenues collected by the State or any | ||||||
10 | other State-created entity. Payments on such bonded
| ||||||
11 | obligations include any statutory fund transfers or other | ||||||
12 | prefunding mechanisms or formulas set forth,
now or hereafter, | ||||||
13 | in State law or bond indentures, into debt service funds or | ||||||
14 | accounts of the State
related to such bonded obligations, | ||||||
15 | consistent with the payment schedules associated with such
| ||||||
16 | obligations. | ||||||
17 | (Source: P.A. 80-841.)
| ||||||
18 | (40 ILCS 5/14-133) (from Ch. 108 1/2, par. 14-133)
| ||||||
19 | Sec. 14-133. Contributions on behalf of members.
| ||||||
20 | (a) Each participating employee shall make contributions | ||||||
21 | to the System,
based on the employee's compensation, as | ||||||
22 | follows:
| ||||||
23 | (1) Covered employees, except as indicated below, 3.5% | ||||||
24 | for
retirement annuity, and 0.5% for a widow or survivors
| ||||||
25 | annuity;
|
| |||||||
| |||||||
1 | (2) Noncovered employees, except as indicated below, | ||||||
2 | 7% for retirement
annuity and 1% for a widow or survivors | ||||||
3 | annuity;
| ||||||
4 | (3) Noncovered employees serving in a position in which | ||||||
5 | "eligible
creditable service" as defined in Section 14-110 | ||||||
6 | may be earned, 1% for a widow
or survivors annuity
plus the | ||||||
7 | following amount for retirement annuity: 8.5% through | ||||||
8 | December 31,
2001; 9.5% in 2002; 10.5% in 2003; and 11.5% | ||||||
9 | in 2004 and thereafter;
| ||||||
10 | (4) Covered employees serving in a position in which | ||||||
11 | "eligible creditable
service" as defined in Section 14-110 | ||||||
12 | may be earned, 0.5% for a widow or survivors annuity
plus | ||||||
13 | the following amount for retirement annuity: 5% through | ||||||
14 | December 31,
2001; 6% in 2002; 7% in 2003; and 8% in 2004 | ||||||
15 | and thereafter;
| ||||||
16 | (5) Each security employee of the Department of | ||||||
17 | Corrections
or of the Department of Human Services who is a | ||||||
18 | covered employee, 0.5% for a widow or survivors annuity
| ||||||
19 | plus the following amount for retirement annuity: 5% | ||||||
20 | through December 31,
2001; 6% in 2002; 7% in 2003; and 8% | ||||||
21 | in 2004 and thereafter;
| ||||||
22 | (6) Each security employee of the Department of | ||||||
23 | Corrections
or of the Department of Human Services who is | ||||||
24 | not a covered employee, 1% for a widow or survivors annuity
| ||||||
25 | plus the following amount for retirement annuity: 8.5% | ||||||
26 | through December 31,
2001; 9.5% in 2002; 10.5% in 2003; and |
| |||||||
| |||||||
1 | 11.5% in 2004 and thereafter.
| ||||||
2 | (a-5) In addition to the contributions otherwise required | ||||||
3 | under this Article, each Tier I member shall also make the | ||||||
4 | following contributions for retirement annuity from each | ||||||
5 | payment
of compensation: | ||||||
6 | (1) beginning July 1, 2013 and through June 30, 2014, | ||||||
7 | 1% of compensation; and | ||||||
8 | (2) beginning on July 1, 2014, 2% of compensation. | ||||||
9 | (b) Contributions shall be in the form of a deduction from
| ||||||
10 | compensation and shall be made notwithstanding that the | ||||||
11 | compensation
paid in cash to the employee shall be reduced | ||||||
12 | thereby below the minimum
prescribed by law or regulation. Each | ||||||
13 | member is deemed to consent and
agree to the deductions from | ||||||
14 | compensation provided for in this Article,
and shall receipt in | ||||||
15 | full for salary or compensation.
| ||||||
16 | (Source: P.A. 92-14, eff. 6-28-01.)
| ||||||
17 | (40 ILCS 5/14-135.08) (from Ch. 108 1/2, par. 14-135.08)
| ||||||
18 | Sec. 14-135.08. To certify required State contributions. | ||||||
19 | (a)
To certify to the Governor and to each department, on | ||||||
20 | or before
November 15 of each year through until November 15, | ||||||
21 | 2011, the required rate for State contributions to the
System | ||||||
22 | for the next State fiscal year, as determined under subsection | ||||||
23 | (b) of
Section 14-131. The certification to the Governor under | ||||||
24 | this subsection (a) shall include a copy of the
actuarial | ||||||
25 | recommendations upon which the rate is based and shall |
| |||||||
| |||||||
1 | specifically identify the System's projected State normal cost | ||||||
2 | for that fiscal year .
| ||||||
3 | (a-5) On or before November 1 of each year, beginning | ||||||
4 | November 1, 2012, the Board shall submit to the State Actuary, | ||||||
5 | the Governor, and the General Assembly a proposed certification | ||||||
6 | of the amount of the required State contribution to the System | ||||||
7 | for the next fiscal year, along with all of the actuarial | ||||||
8 | assumptions, calculations, and data upon which that proposed | ||||||
9 | certification is based. On or before January 1 of each year , | ||||||
10 | beginning January 1, 2013, the State Actuary shall issue a | ||||||
11 | preliminary report concerning the proposed certification and | ||||||
12 | identifying, if necessary, recommended changes in actuarial | ||||||
13 | assumptions that the Board must consider before finalizing its | ||||||
14 | certification of the required State contributions. | ||||||
15 | On or before January 15, 2013 and each January 15 | ||||||
16 | thereafter, the Board shall certify to the Governor and the | ||||||
17 | General Assembly the amount of the required State contribution | ||||||
18 | for the next fiscal year. The certification shall include a | ||||||
19 | copy of the actuarial
recommendations upon which it is based | ||||||
20 | and shall specifically identify the System's projected State | ||||||
21 | normal cost for that fiscal year. The Board's certification | ||||||
22 | must note any deviations from the State Actuary's recommended | ||||||
23 | changes, the reason or reasons for not following the State | ||||||
24 | Actuary's recommended changes, and the fiscal impact of not | ||||||
25 | following the State Actuary's recommended changes on the | ||||||
26 | required State contribution. |
| |||||||
| |||||||
1 | (b) The certifications under subsections (a) and (a-5) | ||||||
2 | shall include an additional amount necessary to pay all | ||||||
3 | principal of and interest on those general obligation bonds due | ||||||
4 | the next fiscal year authorized by Section 7.2(a) of the | ||||||
5 | General Obligation Bond Act and issued to provide the proceeds | ||||||
6 | deposited by the State with the System in July 2003, | ||||||
7 | representing deposits other than amounts reserved under | ||||||
8 | Section 7.2(c) of the General Obligation Bond Act. For State | ||||||
9 | fiscal year 2005, the Board shall make a supplemental | ||||||
10 | certification of the additional amount necessary to pay all | ||||||
11 | principal of and interest on those general obligation bonds due | ||||||
12 | in State fiscal years 2004 and 2005 authorized by Section | ||||||
13 | 7.2(a) of the General Obligation Bond Act and issued to provide | ||||||
14 | the proceeds deposited by the State with the System in July | ||||||
15 | 2003, representing deposits other than amounts reserved under | ||||||
16 | Section 7.2(c) of the General Obligation Bond Act, as soon as | ||||||
17 | practical after the effective date of this amendatory Act of | ||||||
18 | the 93rd General Assembly.
| ||||||
19 | On or before May 1, 2004, the Board shall recalculate and | ||||||
20 | recertify
to the Governor and to each department the amount of | ||||||
21 | the required State
contribution to the System and the required | ||||||
22 | rates for State contributions
to the System for State fiscal | ||||||
23 | year 2005, taking into account the amounts
appropriated to and | ||||||
24 | received by the System under subsection (d) of Section
7.2 of | ||||||
25 | the General Obligation Bond Act.
| ||||||
26 | On or before July 1, 2005, the Board shall recalculate and |
| |||||||
| |||||||
1 | recertify
to the Governor and to each department the amount of | ||||||
2 | the required State
contribution to the System and the required | ||||||
3 | rates for State contributions
to the System for State fiscal | ||||||
4 | year 2006, taking into account the changes in required State | ||||||
5 | contributions made by this amendatory Act of the 94th General | ||||||
6 | Assembly.
| ||||||
7 | On or before April 1, 2011, the Board shall recalculate and | ||||||
8 | recertify to the Governor and to each department the amount of | ||||||
9 | the required State contribution to the System for State fiscal | ||||||
10 | year 2011, applying the changes made by Public Act 96-889 to | ||||||
11 | the System's assets and liabilities as of June 30, 2009 as | ||||||
12 | though Public Act 96-889 was approved on that date. | ||||||
13 | On or before July 1, 2013, the Board shall, if necessary, | ||||||
14 | recalculate and recertify
to the Governor the amount of the | ||||||
15 | required State
contribution to the System for State fiscal year | ||||||
16 | 2014, taking into account the changes in required State | ||||||
17 | contributions made by this amendatory Act of the 98th General | ||||||
18 | Assembly. | ||||||
19 | (Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11; | ||||||
20 | 97-694, eff. 6-18-12.)
| ||||||
21 | (40 ILCS 5/14-152.1)
| ||||||
22 | Sec. 14-152.1. Application and expiration of new benefit | ||||||
23 | increases. | ||||||
24 | (a) As used in this Section, "new benefit increase" means | ||||||
25 | an increase in the amount of any benefit provided under this |
| |||||||
| |||||||
1 | Article, or an expansion of the conditions of eligibility for | ||||||
2 | any benefit under this Article, that results from an amendment | ||||||
3 | to this Code that takes effect after June 1, 2005 (the | ||||||
4 | effective date of Public Act 94-4). "New benefit increase", | ||||||
5 | however, does not include any benefit increase resulting from | ||||||
6 | the changes made to this Article by Public Act 96-37 or by this | ||||||
7 | amendatory Act of the 98th 96th General Assembly.
| ||||||
8 | (b) Notwithstanding any other provision of this Code or any | ||||||
9 | subsequent amendment to this Code, every new benefit increase | ||||||
10 | is subject to this Section and shall be deemed to be granted | ||||||
11 | only in conformance with and contingent upon compliance with | ||||||
12 | the provisions of this Section.
| ||||||
13 | (c) The Public Act enacting a new benefit increase must | ||||||
14 | identify and provide for payment to the System of additional | ||||||
15 | funding at least sufficient to fund the resulting annual | ||||||
16 | increase in cost to the System as it accrues. | ||||||
17 | Every new benefit increase is contingent upon the General | ||||||
18 | Assembly providing the additional funding required under this | ||||||
19 | subsection. The Commission on Government Forecasting and | ||||||
20 | Accountability shall analyze whether adequate additional | ||||||
21 | funding has been provided for the new benefit increase and | ||||||
22 | shall report its analysis to the Public Pension Division of the | ||||||
23 | Department of Financial and Professional Regulation. A new | ||||||
24 | benefit increase created by a Public Act that does not include | ||||||
25 | the additional funding required under this subsection is null | ||||||
26 | and void. If the Public Pension Division determines that the |
| |||||||
| |||||||
1 | additional funding provided for a new benefit increase under | ||||||
2 | this subsection is or has become inadequate, it may so certify | ||||||
3 | to the Governor and the State Comptroller and, in the absence | ||||||
4 | of corrective action by the General Assembly, the new benefit | ||||||
5 | increase shall expire at the end of the fiscal year in which | ||||||
6 | the certification is made.
| ||||||
7 | (d) Every new benefit increase shall expire 5 years after | ||||||
8 | its effective date or on such earlier date as may be specified | ||||||
9 | in the language enacting the new benefit increase or provided | ||||||
10 | under subsection (c). This does not prevent the General | ||||||
11 | Assembly from extending or re-creating a new benefit increase | ||||||
12 | by law. | ||||||
13 | (e) Except as otherwise provided in the language creating | ||||||
14 | the new benefit increase, a new benefit increase that expires | ||||||
15 | under this Section continues to apply to persons who applied | ||||||
16 | and qualified for the affected benefit while the new benefit | ||||||
17 | increase was in effect and to the affected beneficiaries and | ||||||
18 | alternate payees of such persons, but does not apply to any | ||||||
19 | other person, including without limitation a person who | ||||||
20 | continues in service after the expiration date and did not | ||||||
21 | apply and qualify for the affected benefit while the new | ||||||
22 | benefit increase was in effect.
| ||||||
23 | (Source: P.A. 96-37, eff. 7-13-09.) | ||||||
24 | (40 ILCS 5/15-107.1 new) | ||||||
25 | Sec. 15-107.1. Tier I participant. "Tier I participant": A |
| |||||||
| |||||||
1 | participant under this Article, other than a participant in the | ||||||
2 | self-managed plan under Section 15-158.2, who first became a | ||||||
3 | member or participant before January 1, 2011 under any | ||||||
4 | reciprocal retirement system or pension fund established under | ||||||
5 | this Code other than a retirement system or pension fund | ||||||
6 | established under Article 2, 3, 4, 5, 6, or 18 of this Code. | ||||||
7 | (40 ILCS 5/15-107.2 new) | ||||||
8 | Sec. 15-107.2. Tier I retiree. "Tier I retiree": A former | ||||||
9 | Tier I participant who is receiving a retirement annuity. | ||||||
10 | A person does not become a Tier I retiree by virtue of | ||||||
11 | receiving a reversionary, survivors, beneficiary, or | ||||||
12 | disability annuity.
| ||||||
13 | (40 ILCS 5/15-111) (from Ch. 108 1/2, par. 15-111)
| ||||||
14 | Sec. 15-111. Earnings.
"Earnings": An amount paid for | ||||||
15 | personal services equal to the sum of
the basic compensation | ||||||
16 | plus extra compensation for summer teaching,
overtime or other | ||||||
17 | extra service. For periods for which an employee receives
| ||||||
18 | service credit under subsection (c) of Section 15-113.1 or | ||||||
19 | Section 15-113.2,
earnings are equal to the basic compensation | ||||||
20 | on which contributions are
paid by the employee during such | ||||||
21 | periods. Compensation for employment which is
irregular, | ||||||
22 | intermittent and temporary shall not be considered earnings, | ||||||
23 | unless
the participant is also receiving earnings from the | ||||||
24 | employer as an employee
under Section 15-107.
|
| |||||||
| |||||||
1 | With respect to transition pay paid by the University of | ||||||
2 | Illinois to a
person who was a participating employee employed | ||||||
3 | in the fire department of
the University of Illinois's | ||||||
4 | Champaign-Urbana campus immediately prior to
the elimination | ||||||
5 | of that fire department:
| ||||||
6 | (1) "Earnings" includes transition pay paid to the | ||||||
7 | employee on or after
the effective date of this amendatory | ||||||
8 | Act of the 91st General Assembly.
| ||||||
9 | (2) "Earnings" includes transition pay paid to the | ||||||
10 | employee before the
effective date of this amendatory Act | ||||||
11 | of the 91st General Assembly only if (i)
employee | ||||||
12 | contributions under Section 15-157 have been withheld from | ||||||
13 | that
transition pay or (ii) the employee pays to the System | ||||||
14 | before January 1, 2001
an amount representing employee | ||||||
15 | contributions under Section 15-157 on that
transition pay. | ||||||
16 | Employee contributions under item (ii) may be paid in a | ||||||
17 | lump
sum, by withholding from additional transition pay | ||||||
18 | accruing before January 1,
2001, or in any other manner | ||||||
19 | approved by the System. Upon payment of the
employee | ||||||
20 | contributions on transition pay, the corresponding | ||||||
21 | employer
contributions become an obligation of the State.
| ||||||
22 | Notwithstanding any other provision of this Code, the | ||||||
23 | earnings of a Tier I participant for the purposes of this Code | ||||||
24 | shall not exceed, for periods of service on or after the | ||||||
25 | effective date of this amendatory Act of the 98th General | ||||||
26 | Assembly, the annual contribution and benefit base established |
| |||||||
| |||||||
1 | for the applicable year by the Commissioner of Social Security | ||||||
2 | under the federal Social Security Act; except that this | ||||||
3 | limitation does not apply to a participant's earnings that are | ||||||
4 | determined under an employment contract or collective | ||||||
5 | bargaining agreement that is in effect on the effective date of | ||||||
6 | this amendatory Act of the 98th General Assembly and has not | ||||||
7 | been amended or renewed after that date. | ||||||
8 | (Source: P.A. 91-887, eff. 7-6-00.)
| ||||||
9 | (40 ILCS 5/15-113.6) (from Ch. 108 1/2, par. 15-113.6)
| ||||||
10 | Sec. 15-113.6. Service for employment in public schools. | ||||||
11 | "Service for
employment in public schools": Includes
those | ||||||
12 | periods not exceeding the lesser of 10 years or 2/3 of the | ||||||
13 | service
granted under other Sections of this Article dealing | ||||||
14 | with service credit,
during which a person who entered the | ||||||
15 | system after September 1, 1974 was
employed full time by a | ||||||
16 | public common school, public college and public
university, or | ||||||
17 | by an agency or instrumentality of any of the foregoing,
of any | ||||||
18 | state, territory, dependency or possession of the United States | ||||||
19 | of
America, including the Philippine Islands, or a school
| ||||||
20 | operated by or under
the auspices of any agency or department | ||||||
21 | of any other state, if the person
(1) cannot qualify for a | ||||||
22 | retirement pension or other benefit based upon
employer
| ||||||
23 | contributions from another retirement system, exclusive of | ||||||
24 | federal social
security, based in whole or in part upon this | ||||||
25 | employment, and (2) pays the
lesser of (A) an amount equal to |
| |||||||
| |||||||
1 | 8% of his or her annual basic compensation
on the date of | ||||||
2 | becoming a participating employee subsequent to this service
| ||||||
3 | multiplied by the number of years of such service, together | ||||||
4 | with compound
interest from the date participation begins to | ||||||
5 | the date payment is received
by the board at the rate of 6% per | ||||||
6 | annum through August 31, 1982, and at
the effective rates after | ||||||
7 | that date, and (B) 50% of the actuarial value
of the increase | ||||||
8 | in the retirement annuity provided by this service, and
(3) | ||||||
9 | contributes for at least 5 years subsequent to this employment | ||||||
10 | to one
or more of the following systems: the State Universities | ||||||
11 | Retirement System,
the Teachers' Retirement System of the State | ||||||
12 | of Illinois, and the Public
School Teachers' Pension and | ||||||
13 | Retirement Fund of Chicago.
| ||||||
14 | The service granted under this Section shall not be | ||||||
15 | considered in determining
whether the person has the minimum | ||||||
16 | number of 8 years of service required to qualify
for a | ||||||
17 | retirement annuity at age 55 or the 5 years of service required | ||||||
18 | to
qualify for a retirement annuity at age 62, as provided in | ||||||
19 | Section 15-135, or the 10 years required by subsection (c) of | ||||||
20 | Section 1-160 for a person who first becomes a participant on | ||||||
21 | or after January 1, 2011 .
The maximum allowable service of 10 | ||||||
22 | years for this governmental employment
shall be reduced by the | ||||||
23 | service credit which is validated under paragraph
(2) of | ||||||
24 | subsection (b) of Section 16-127 and paragraph 1 of Section | ||||||
25 | 17-133.
| ||||||
26 | (Source: P.A. 95-83, eff. 8-13-07; 96-1490, eff. 1-1-11.)
|
| |||||||
| |||||||
1 | (40 ILCS 5/15-113.7) (from Ch. 108 1/2, par. 15-113.7)
| ||||||
2 | Sec. 15-113.7. Service for other public employment. | ||||||
3 | "Service for
other public employment": Includes those periods | ||||||
4 | not exceeding the lesser of
10 years or 2/3 of the service | ||||||
5 | granted under other Sections of this Article
dealing with | ||||||
6 | service credit, during which a person was employed full time by
| ||||||
7 | the United States government, or by the government of a state, | ||||||
8 | or by a
political subdivision of a state, or by an agency or | ||||||
9 | instrumentality of any of
the foregoing, if the person (1) | ||||||
10 | cannot qualify for a retirement pension or
other benefit based | ||||||
11 | upon employer contributions from another retirement system,
| ||||||
12 | exclusive of federal social security, based in whole or in part | ||||||
13 | upon this
employment, and (2) pays the lesser of (A) an amount | ||||||
14 | equal to 8% of his or her
annual basic compensation on the date | ||||||
15 | of becoming a participating employee
subsequent to this service | ||||||
16 | multiplied by the number of years of such service,
together | ||||||
17 | with compound interest from the date participation begins to | ||||||
18 | the date
payment is received by the board at the rate of 6% per | ||||||
19 | annum through August 31,
1982, and at the effective rates after | ||||||
20 | that date, and (B) 50% of the actuarial
value of the increase | ||||||
21 | in the retirement annuity provided by this service, and
(3) | ||||||
22 | contributes for at least 5 years subsequent to this employment | ||||||
23 | to one or
more of the following systems: the State Universities | ||||||
24 | Retirement System, the
Teachers' Retirement System of the State | ||||||
25 | of Illinois, and the Public School
Teachers' Pension and |
| |||||||
| |||||||
1 | Retirement Fund of Chicago. If a function of a
governmental | ||||||
2 | unit as defined by Section 20-107 is transferred by law, in | ||||||
3 | whole
or in part to an employer, and an employee transfers | ||||||
4 | employment from this
governmental unit to such employer within | ||||||
5 | 6 months of the transfer of the
function, the payment for | ||||||
6 | service authorized under this Section shall not
exceed the | ||||||
7 | amount which would have been payable for this service to the
| ||||||
8 | retirement system covering the governmental unit from which the | ||||||
9 | function was
transferred.
| ||||||
10 | The service granted under this Section shall not be | ||||||
11 | considered in determining
whether the person has the minimum | ||||||
12 | number of 8 years of service required to qualify
for a | ||||||
13 | retirement annuity at age 55 or the 5 years of service required | ||||||
14 | to
qualify for a retirement annuity at age 62, as provided in | ||||||
15 | Section 15-135 .
The maximum allowable service of 10 years for | ||||||
16 | this governmental employment
shall be reduced by the service | ||||||
17 | credit which is validated under paragraph
(2) of subsection (b) | ||||||
18 | of Section 16-127 and paragraph one of Section 17-133.
| ||||||
19 | Except as hereinafter provided, this Section shall not | ||||||
20 | apply to
persons who become participants in the system after | ||||||
21 | September 1, 1974.
| ||||||
22 | (Source: P.A. 95-83, eff. 8-13-07.)
| ||||||
23 | (40 ILCS 5/15-135) (from Ch. 108 1/2, par. 15-135)
| ||||||
24 | Sec. 15-135. Retirement annuities - Conditions.
| ||||||
25 | (a) A participant who retires in one of the following |
| |||||||
| |||||||
1 | specified years with
the specified amount of service is | ||||||
2 | entitled to a retirement annuity at any age
under the | ||||||
3 | retirement program applicable to the participant:
| ||||||
4 | 35 years if retirement is in 1997 or before;
| ||||||
5 | 34 years if retirement is in 1998;
| ||||||
6 | 33 years if retirement is in 1999;
| ||||||
7 | 32 years if retirement is in 2000;
| ||||||
8 | 31 years if retirement is in 2001;
| ||||||
9 | 30 years if retirement is in 2002 or later.
| ||||||
10 | A participant with 8 or more years of service after | ||||||
11 | September 1, 1941, is
entitled to a retirement annuity on or | ||||||
12 | after attainment of age 55.
| ||||||
13 | A participant with at least 5 but less than 8 years
of | ||||||
14 | service after September 1, 1941, is entitled to a retirement | ||||||
15 | annuity on
or after attainment of age 62.
| ||||||
16 | A participant who has at least 25 years of service in this | ||||||
17 | system as a
police officer or firefighter is entitled to a | ||||||
18 | retirement
annuity on or after the attainment of age 50, if | ||||||
19 | Rule 4 of Section
15-136 is applicable to the participant.
| ||||||
20 | (a-5) Notwithstanding subsection (a) of this Section, for a | ||||||
21 | Tier I participant who begins receiving a retirement annuity | ||||||
22 | under this Article after July 1, 2013: | ||||||
23 | (1) If the Tier I participant is at least 45 years old | ||||||
24 | on the effective date of this amendatory Act of the 98th | ||||||
25 | General Assembly, then the references to age 50, 55, and 62 | ||||||
26 | in subsection (a) of this Section remain unchanged. |
| |||||||
| |||||||
1 | (2) If the Tier I participant is at least 40 but less | ||||||
2 | than 45 years old on the effective date of this amendatory | ||||||
3 | Act of the 98th General Assembly, then the references to | ||||||
4 | age 50, 55, and 62 in subsection (a) of this Section are | ||||||
5 | increased by one year. | ||||||
6 | (3) If the Tier I participant is at least 35 but less | ||||||
7 | than 40 years old on the effective date of this amendatory | ||||||
8 | Act of the 98th General Assembly, then the references to | ||||||
9 | age 50, 55, and 62 in subsection (a) of this Section are | ||||||
10 | increased by 3 years. | ||||||
11 | (4) If the Tier I participant is less than 35 years old | ||||||
12 | on the effective date of this amendatory Act of the 98th | ||||||
13 | General Assembly, then the references to age 50, 55, and 62 | ||||||
14 | in subsection (a) of this Section are increased by 5 years. | ||||||
15 | Notwithstanding Section 1-103.1, this subsection (a-5) | ||||||
16 | applies without regard to whether or not the Tier I participant | ||||||
17 | is in active service under this Article on or after the | ||||||
18 | effective date of this amendatory Act of the 98th General | ||||||
19 | Assembly. | ||||||
20 | (b) The annuity payment period shall begin on the date | ||||||
21 | specified by the
participant or the recipient of a disability | ||||||
22 | retirement annuity submitting a written application, which | ||||||
23 | date shall not be prior
to termination of employment or more | ||||||
24 | than one year before the application is
received by the board; | ||||||
25 | however, if the participant is not an employee of an
employer | ||||||
26 | participating in this System or in a participating system as |
| |||||||
| |||||||
1 | defined
in Article 20 of this Code on April 1 of the calendar | ||||||
2 | year next following
the calendar year in which the participant | ||||||
3 | attains age 70 1/2, the annuity
payment period shall begin on | ||||||
4 | that date regardless of whether an application
has been filed.
| ||||||
5 | (c) An annuity is not payable if the amount provided under | ||||||
6 | Section
15-136 is less than $10 per month.
| ||||||
7 | (Source: P.A. 97-933, eff. 8-10-12; 97-968, eff. 8-16-12.)
| ||||||
8 | (40 ILCS 5/15-136) (from Ch. 108 1/2, par. 15-136)
| ||||||
9 | Sec. 15-136. Retirement annuities - Amount. The provisions | ||||||
10 | of this
Section 15-136 apply only to those participants who are | ||||||
11 | participating in the
traditional benefit package or the | ||||||
12 | portable benefit package and do not
apply to participants who | ||||||
13 | are participating in the self-managed plan.
| ||||||
14 | (a) The amount of a participant's retirement annuity, | ||||||
15 | expressed in the form
of a single-life annuity, shall be | ||||||
16 | determined by whichever of the following
rules is applicable | ||||||
17 | and provides the largest annuity:
| ||||||
18 | Rule 1: The retirement annuity shall be 1.67% of final rate | ||||||
19 | of earnings for
each of the first 10 years of service, 1.90% | ||||||
20 | for each of the next 10 years of
service, 2.10% for each year | ||||||
21 | of service in excess of 20 but not exceeding 30,
and 2.30% for | ||||||
22 | each year in excess of 30; or for persons who retire on or
| ||||||
23 | after January 1, 1998, 2.2% of the final rate of earnings for | ||||||
24 | each year of
service.
| ||||||
25 | Rule 2: The retirement annuity shall be the sum of the |
| |||||||
| |||||||
1 | following,
determined from amounts credited to the participant | ||||||
2 | in accordance with the
actuarial tables and the effective rate | ||||||
3 | of interest in effect at the
time the retirement annuity | ||||||
4 | begins:
| ||||||
5 | (i) the normal annuity which can be provided on an | ||||||
6 | actuarially
equivalent basis, by the accumulated normal | ||||||
7 | contributions as of
the date the annuity begins;
| ||||||
8 | (ii) an annuity from employer contributions of an | ||||||
9 | amount equal to that
which can be provided on an | ||||||
10 | actuarially equivalent basis from the accumulated
normal | ||||||
11 | contributions made by the participant under Section | ||||||
12 | 15-113.6 and Section
15-113.7 plus 1.4 times all other | ||||||
13 | accumulated normal contributions made by
the participant; | ||||||
14 | and
| ||||||
15 | (iii) the annuity that can be provided on an | ||||||
16 | actuarially equivalent basis
from the entire contribution | ||||||
17 | made by the participant under Section 15-113.3.
| ||||||
18 | For the purpose of calculating an annuity under this Rule | ||||||
19 | 2, the contribution required under subsection (c-5) of Section | ||||||
20 | 15-157 shall not be considered when determining the | ||||||
21 | participant's accumulated normal contributions under clause | ||||||
22 | (i) or the employer contribution under clause (ii). | ||||||
23 | With respect to a police officer or firefighter who retires | ||||||
24 | on or after
August 14, 1998, the accumulated normal | ||||||
25 | contributions taken into account under
clauses (i) and (ii) of | ||||||
26 | this Rule 2 shall include the additional normal
contributions |
| |||||||
| |||||||
1 | made by the police officer or firefighter under Section
| ||||||
2 | 15-157(a).
| ||||||
3 | The amount of a retirement annuity calculated under this | ||||||
4 | Rule 2 shall
be computed solely on the basis of the | ||||||
5 | participant's accumulated normal
contributions, as specified | ||||||
6 | in this Rule and defined in Section 15-116.
Neither an employee | ||||||
7 | or employer contribution for early retirement under
Section | ||||||
8 | 15-136.2 nor any other employer contribution shall be used in | ||||||
9 | the
calculation of the amount of a retirement annuity under | ||||||
10 | this Rule 2.
| ||||||
11 | This amendatory Act of the 91st General Assembly is a | ||||||
12 | clarification of
existing law and applies to every participant | ||||||
13 | and annuitant without regard to
whether status as an employee | ||||||
14 | terminates before the effective date of this
amendatory Act.
| ||||||
15 | This Rule 2 does not apply to a person who first becomes an | ||||||
16 | employee under this Article on or after July 1, 2005.
| ||||||
17 | Rule 3: The retirement annuity of a participant who is | ||||||
18 | employed
at least one-half time during the period on which his | ||||||
19 | or her final rate of
earnings is based, shall be equal to the | ||||||
20 | participant's years of service
not to exceed 30, multiplied by | ||||||
21 | (1) $96 if the participant's final rate
of earnings is less | ||||||
22 | than $3,500, (2) $108 if the final rate of earnings is
at least | ||||||
23 | $3,500 but less than $4,500, (3) $120 if the final rate of | ||||||
24 | earnings
is at least $4,500 but less than $5,500, (4) $132 if | ||||||
25 | the final rate
of earnings is at least $5,500 but less than | ||||||
26 | $6,500, (5)
$144 if the final rate of earnings is at least |
| |||||||
| |||||||
1 | $6,500 but less than
$7,500, (6) $156 if the final rate of | ||||||
2 | earnings is at least $7,500 but less
than $8,500, (7) $168 if | ||||||
3 | the final rate of earnings is at least $8,500 but
less than | ||||||
4 | $9,500, and (8) $180 if the final rate of earnings is $9,500 or
| ||||||
5 | more, except that the annuity for those persons having made an | ||||||
6 | election under
Section 15-154(a-1) shall be calculated and | ||||||
7 | payable under the portable
retirement benefit program pursuant | ||||||
8 | to the provisions of Section 15-136.4.
| ||||||
9 | Rule 4: A participant who is at least age 50 and has 25 or | ||||||
10 | more years of
service as a police officer or firefighter, and a | ||||||
11 | participant who is age 55 or
over and has at least 20 but less | ||||||
12 | than 25 years of service as a police officer
or firefighter, | ||||||
13 | shall be entitled to a retirement annuity of 2 1/4% of the
| ||||||
14 | final rate of earnings for each of the first 10 years of | ||||||
15 | service as a police
officer or firefighter, 2 1/2% for each of | ||||||
16 | the next 10 years of service as a
police officer or | ||||||
17 | firefighter, and 2 3/4% for each year of service as a police
| ||||||
18 | officer or firefighter in excess of 20. The retirement annuity | ||||||
19 | for all other
service shall be computed under Rule 1.
| ||||||
20 | For purposes of this Rule 4, a participant's service as a | ||||||
21 | firefighter
shall also include the following:
| ||||||
22 | (i) service that is performed while the person is an | ||||||
23 | employee under
subsection (h) of Section 15-107; and
| ||||||
24 | (ii) in the case of an individual who was a | ||||||
25 | participating employee
employed in the fire department of | ||||||
26 | the University of Illinois's
Champaign-Urbana campus |
| |||||||
| |||||||
1 | immediately prior to the elimination of that fire
| ||||||
2 | department and who immediately after the elimination of | ||||||
3 | that fire department
transferred to another job with the | ||||||
4 | University of Illinois, service performed
as an employee of | ||||||
5 | the University of Illinois in a position other than police
| ||||||
6 | officer or firefighter, from the date of that transfer | ||||||
7 | until the employee's
next termination of service with the | ||||||
8 | University of Illinois.
| ||||||
9 | Rule 5: The retirement annuity of a participant who elected | ||||||
10 | early
retirement under the provisions of Section 15-136.2 and | ||||||
11 | who, on or before
February 16, 1995, brought administrative | ||||||
12 | proceedings pursuant to the
administrative rules adopted by the | ||||||
13 | System to challenge the calculation of his
or her retirement | ||||||
14 | annuity shall be the sum of the following, determined from
| ||||||
15 | amounts credited to the participant in accordance with the | ||||||
16 | actuarial tables and
the prescribed rate of interest in effect | ||||||
17 | at the time the retirement annuity
begins:
| ||||||
18 | (i) the normal annuity which can be provided on an | ||||||
19 | actuarially equivalent
basis, by the accumulated normal | ||||||
20 | contributions as of the date the annuity
begins; and
| ||||||
21 | (ii) an annuity from employer contributions of an | ||||||
22 | amount equal to that
which can be provided on an | ||||||
23 | actuarially equivalent basis from the accumulated
normal | ||||||
24 | contributions made by the participant under Section | ||||||
25 | 15-113.6 and Section
15-113.7 plus 1.4 times all other | ||||||
26 | accumulated normal contributions made by the
participant; |
| |||||||
| |||||||
1 | and
| ||||||
2 | (iii) an annuity which can be provided on an | ||||||
3 | actuarially equivalent basis
from the employee | ||||||
4 | contribution for early retirement under Section 15-136.2, | ||||||
5 | and
an annuity from employer contributions of an amount | ||||||
6 | equal to that which can be
provided on an actuarially | ||||||
7 | equivalent basis from the employee contribution for
early | ||||||
8 | retirement under Section 15-136.2.
| ||||||
9 | In no event shall a retirement annuity under this Rule 5 be | ||||||
10 | lower than the
amount obtained by adding (1) the monthly amount | ||||||
11 | obtained by dividing the
combined employee and employer | ||||||
12 | contributions made under Section 15-136.2 by the
System's | ||||||
13 | annuity factor for the age of the participant at the beginning | ||||||
14 | of the
annuity payment period and (2) the amount equal to the | ||||||
15 | participant's annuity if
calculated under Rule 1, reduced under | ||||||
16 | Section 15-136(b) as if no
contributions had been made under | ||||||
17 | Section 15-136.2.
| ||||||
18 | With respect to a participant who is qualified for a | ||||||
19 | retirement annuity under
this Rule 5 whose retirement annuity | ||||||
20 | began before the effective date of this
amendatory Act of the | ||||||
21 | 91st General Assembly, and for whom an employee
contribution | ||||||
22 | was made under Section 15-136.2, the System shall recalculate | ||||||
23 | the
retirement annuity under this Rule 5 and shall pay any | ||||||
24 | additional amounts due
in the manner provided in Section | ||||||
25 | 15-186.1 for benefits mistakenly set too low.
| ||||||
26 | The amount of a retirement annuity calculated under this |
| |||||||
| |||||||
1 | Rule 5 shall be
computed solely on the basis of those | ||||||
2 | contributions specifically set forth in
this Rule 5. Except as | ||||||
3 | provided in clause (iii) of this Rule 5, neither an
employee | ||||||
4 | nor employer contribution for early retirement under Section | ||||||
5 | 15-136.2,
nor any other employer contribution, shall be used in | ||||||
6 | the calculation of the
amount of a retirement annuity under | ||||||
7 | this Rule 5.
| ||||||
8 | The General Assembly has adopted the changes set forth in | ||||||
9 | Section 25 of this
amendatory Act of the 91st General Assembly | ||||||
10 | in recognition that the decision of
the Appellate Court for the | ||||||
11 | Fourth District in Mattis v. State Universities
Retirement | ||||||
12 | System et al. might be deemed to give some right to the | ||||||
13 | plaintiff in
that case. The changes made by Section 25 of this | ||||||
14 | amendatory Act of the 91st
General Assembly are a legislative | ||||||
15 | implementation of the decision of the
Appellate Court for the | ||||||
16 | Fourth District in Mattis v. State Universities
Retirement | ||||||
17 | System et al. with respect to that plaintiff.
| ||||||
18 | The changes made by Section 25 of this amendatory Act of | ||||||
19 | the 91st General
Assembly apply without regard to whether the | ||||||
20 | person is in service as an
employee on or after its effective | ||||||
21 | date.
| ||||||
22 | (b) The retirement annuity provided under Rules 1 and 3 | ||||||
23 | above shall be
reduced by 1/2 of 1% for each month the | ||||||
24 | participant is under age 60 at the
time of retirement. However, | ||||||
25 | this reduction shall not apply in the following
cases:
| ||||||
26 | (1) For a disabled participant whose disability |
| |||||||
| |||||||
1 | benefits have been
discontinued because he or she has | ||||||
2 | exhausted eligibility for disability
benefits under clause | ||||||
3 | (6) of Section 15-152;
| ||||||
4 | (2) For a participant who has at least the number of | ||||||
5 | years of service
required to retire at any age under | ||||||
6 | subsection (a) of Section 15-135; or
| ||||||
7 | (3) For that portion of a retirement annuity which has | ||||||
8 | been provided on
account of service of the participant | ||||||
9 | during periods when he or she performed
the duties of a | ||||||
10 | police officer or firefighter, if these duties were | ||||||
11 | performed
for at least 5 years immediately preceding the | ||||||
12 | date the retirement annuity
is to begin.
| ||||||
13 | (c) The maximum retirement annuity provided under Rules 1, | ||||||
14 | 2, 4,
and 5
shall be the lesser of (1) the annual limit of | ||||||
15 | benefits as specified in
Section 415 of the Internal Revenue | ||||||
16 | Code of 1986, as such Section may be
amended from time to time | ||||||
17 | and as such benefit limits shall be adjusted by
the | ||||||
18 | Commissioner of Internal Revenue, and (2) 80% of final rate of
| ||||||
19 | earnings.
| ||||||
20 | (d) Subject to the provisions of subsections (d-1) and | ||||||
21 | (d-2), an An annuitant whose status as an employee terminates | ||||||
22 | after August 14,
1969 shall receive automatic increases in his | ||||||
23 | or her retirement annuity as
follows:
| ||||||
24 | Effective January 1 immediately following the date the | ||||||
25 | retirement annuity
begins, the annuitant shall receive an | ||||||
26 | increase in his or her monthly
retirement annuity of 0.125% of |
| |||||||
| |||||||
1 | the monthly retirement annuity provided under
Rule 1, Rule 2, | ||||||
2 | Rule 3, Rule 4, or Rule 5, contained in this
Section, | ||||||
3 | multiplied by
the number of full months which elapsed from the | ||||||
4 | date the retirement annuity
payments began to January 1, 1972, | ||||||
5 | plus 0.1667% of such annuity, multiplied by
the number of full | ||||||
6 | months which elapsed from January 1, 1972, or the date the
| ||||||
7 | retirement annuity payments began, whichever is later, to | ||||||
8 | January 1, 1978, plus
0.25% of such annuity multiplied by the | ||||||
9 | number of full months which elapsed
from January 1, 1978, or | ||||||
10 | the date the retirement annuity payments began,
whichever is | ||||||
11 | later, to the effective date of the increase.
| ||||||
12 | The annuitant shall receive an increase in his or her | ||||||
13 | monthly retirement
annuity on each January 1 thereafter during | ||||||
14 | the annuitant's life of 3% of
the monthly annuity provided | ||||||
15 | under Rule 1, Rule 2, Rule 3, Rule 4, or
Rule 5 contained
in | ||||||
16 | this Section. The change made under this subsection by P.A. | ||||||
17 | 81-970 is
effective January 1, 1980 and applies to each | ||||||
18 | annuitant whose status as
an employee terminates before or | ||||||
19 | after that date.
| ||||||
20 | Beginning January 1, 1990 and except as provided in | ||||||
21 | subsections (d-1) and (d-2) , all automatic annual increases | ||||||
22 | payable under
this Section shall be calculated as a percentage | ||||||
23 | of the total annuity
payable at the time of the increase, | ||||||
24 | including all increases previously
granted under this Article.
| ||||||
25 | The change made in this subsection by P.A. 85-1008 is | ||||||
26 | effective January
26, 1988, and is applicable without regard to |
| |||||||
| |||||||
1 | whether status as an employee
terminated before that date.
| ||||||
2 | (d-1) Notwithstanding any other provision of this Article, | ||||||
3 | for a Tier I retiree, the amount of each automatic annual | ||||||
4 | increase in retirement annuity occurring on or after the | ||||||
5 | effective date of this amendatory Act of the 98th General | ||||||
6 | Assembly shall be the lesser of $750 or 3% of the total annuity
| ||||||
7 | payable at the time of the increase, including previous | ||||||
8 | increases granted. | ||||||
9 | (d-2) Notwithstanding any other provision of this Article, | ||||||
10 | for a Tier I retiree, the monthly retirement annuity shall | ||||||
11 | first be subject to annual increases on the January 1 occurring | ||||||
12 | on or next after the attainment of age 67 or the January 1 | ||||||
13 | occurring on or next after the fifth anniversary of the annuity | ||||||
14 | start date, whichever occurs earlier. If on the effective date | ||||||
15 | of this amendatory Act of the 98th General Assembly a Tier I | ||||||
16 | retiree has already received an annual increase under this | ||||||
17 | Section but does not yet meet the new eligibility requirements | ||||||
18 | of this subsection, the annual increases already received shall | ||||||
19 | continue in force, but no additional annual increase shall be | ||||||
20 | granted until the Tier I retiree meets the new eligibility | ||||||
21 | requirements. | ||||||
22 | (d-3) Notwithstanding Section 1-103.1, subsections (d-1) | ||||||
23 | and (d-2) apply without regard to whether or not the Tier I | ||||||
24 | retiree is in active service under this Article on or after the | ||||||
25 | effective date of this amendatory Act of the 98th General | ||||||
26 | Assembly. |
| |||||||
| |||||||
1 | (e) If, on January 1, 1987, or the date the retirement | ||||||
2 | annuity payment
period begins, whichever is later, the sum of | ||||||
3 | the retirement annuity
provided under Rule 1 or Rule 2 of this | ||||||
4 | Section
and the automatic annual increases provided under the | ||||||
5 | preceding subsection
or Section 15-136.1, amounts to less than | ||||||
6 | the retirement
annuity which would be provided by Rule 3, the | ||||||
7 | retirement
annuity shall be increased as of January 1, 1987, or | ||||||
8 | the date the
retirement annuity payment period begins, | ||||||
9 | whichever is later, to the amount
which would be provided by | ||||||
10 | Rule 3 of this Section. Such increased
amount shall be | ||||||
11 | considered as the retirement annuity in determining
benefits | ||||||
12 | provided under other Sections of this Article. This paragraph
| ||||||
13 | applies without regard to whether status as an employee | ||||||
14 | terminated before the
effective date of this amendatory Act of | ||||||
15 | 1987, provided that the annuitant was
employed at least | ||||||
16 | one-half time during the period on which the final rate of
| ||||||
17 | earnings was based.
| ||||||
18 | (f) A participant is entitled to such additional annuity as | ||||||
19 | may be provided
on an actuarially equivalent basis, by any | ||||||
20 | accumulated
additional contributions to his or her credit. | ||||||
21 | However,
the additional contributions made by the participant | ||||||
22 | toward the automatic
increases in annuity provided under this | ||||||
23 | Section and the contributions made under subsection (c-5) of | ||||||
24 | Section 15-157 by this amendatory Act of the 98th General | ||||||
25 | Assembly shall not be taken into
account in determining the | ||||||
26 | amount of such additional annuity.
|
| |||||||
| |||||||
1 | (g) If, (1) by law, a function of a governmental unit, as | ||||||
2 | defined by Section
20-107 of this Code, is transferred in whole | ||||||
3 | or in part to an employer, and (2)
a participant transfers | ||||||
4 | employment from such governmental unit to such employer
within | ||||||
5 | 6 months after the transfer of the function, and (3) the sum of | ||||||
6 | (A) the
annuity payable to the participant under Rule 1, 2, or | ||||||
7 | 3 of this Section (B)
all proportional annuities payable to the | ||||||
8 | participant by all other retirement
systems covered by Article | ||||||
9 | 20, and (C) the initial primary insurance amount to
which the | ||||||
10 | participant is entitled under the Social Security Act, is less | ||||||
11 | than
the retirement annuity which would have been payable if | ||||||
12 | all of the
participant's pension credits validated under | ||||||
13 | Section 20-109 had been validated
under this system, a | ||||||
14 | supplemental annuity equal to the difference in such
amounts | ||||||
15 | shall be payable to the participant.
| ||||||
16 | (h) On January 1, 1981, an annuitant who was receiving
a | ||||||
17 | retirement annuity on or before January 1, 1971 shall have his | ||||||
18 | or her
retirement annuity then being paid increased $1 per | ||||||
19 | month for
each year of creditable service. On January 1, 1982, | ||||||
20 | an annuitant whose
retirement annuity began on or before | ||||||
21 | January 1, 1977, shall have his or her
retirement annuity then | ||||||
22 | being paid increased $1 per month for each year of
creditable | ||||||
23 | service.
| ||||||
24 | (i) On January 1, 1987, any annuitant whose retirement | ||||||
25 | annuity began on or
before January 1, 1977, shall have the | ||||||
26 | monthly retirement annuity increased by
an amount equal to 8¢ |
| |||||||
| |||||||
1 | per year of creditable service times the number of years
that | ||||||
2 | have elapsed since the annuity began.
| ||||||
3 | (j) For participants to whom subsection (a-5) of Section | ||||||
4 | 15-135 applies, the references to age 50, 55, and 62 in this | ||||||
5 | Section are increased as provided in subsection (a-5) of | ||||||
6 | Section 15-135. | ||||||
7 | (Source: P.A. 97-933, eff. 8-10-12; 97-968, eff. 8-16-12.)
| ||||||
8 | (40 ILCS 5/15-155) (from Ch. 108 1/2, par. 15-155)
| ||||||
9 | Sec. 15-155. Employer contributions.
| ||||||
10 | (a) The State of Illinois shall make contributions by | ||||||
11 | appropriations of
amounts which, together with the other | ||||||
12 | employer contributions from trust,
federal, and other funds , | ||||||
13 | employee contributions, income from investments,
and other | ||||||
14 | income of this System, will be sufficient to meet the cost of
| ||||||
15 | maintaining and administering the System on a 100% 90% funded | ||||||
16 | basis in accordance
with actuarial recommendations by the end | ||||||
17 | of State fiscal year 2043 .
| ||||||
18 | Beginning with State fiscal year 2014, the State's required | ||||||
19 | contributions to the System under subsection (a-1) shall be | ||||||
20 | limited to the amounts required to amortize the total cost of | ||||||
21 | the benefits of the System arising before July 1, 2013. The | ||||||
22 | State shall also pay any employer contributions required from | ||||||
23 | the State as the actual employer of participants under this | ||||||
24 | Article and any contribution required under subsection (a-20). | ||||||
25 | The Board shall determine the amount of State and employer |
| |||||||
| |||||||
1 | contributions required for
each fiscal year on the basis of the | ||||||
2 | actuarial tables and other assumptions
adopted by the Board and | ||||||
3 | the recommendations of the actuary, using the formulas provided | ||||||
4 | in this Section formula
in subsection (a-1) .
| ||||||
5 | (a-1) For State fiscal years 2014 through 2043, the minimum | ||||||
6 | contribution to the System to be made by the State under this | ||||||
7 | subsection (a-1) for each fiscal year shall be an amount | ||||||
8 | determined by the Board to be sufficient to amortize the | ||||||
9 | unfunded accrued liability that is attributable to benefits | ||||||
10 | that accrued before July 1, 2013 as a level percentage of | ||||||
11 | payroll over the years remaining to and including fiscal year | ||||||
12 | 2043, determined under the projected unit credit actuarial cost | ||||||
13 | method. | ||||||
14 | For State fiscal year 2044 and thereafter, the minimum | ||||||
15 | contribution to the System to be made by the State under this | ||||||
16 | subsection (a-1) for each fiscal year shall be an amount | ||||||
17 | determined by the Board to be sufficient to amortize, over a | ||||||
18 | 30-year rolling amortization period, any unfunded liability | ||||||
19 | arising on or after July 1, 2043 that is attributable to | ||||||
20 | benefits that accrued before July 1, 2013. | ||||||
21 | For State fiscal years 2012 and 2013 through 2045 , the | ||||||
22 | minimum contribution
to the System to be made by the State for | ||||||
23 | each fiscal year shall be an amount
determined by the System to | ||||||
24 | be sufficient to bring the total assets of the
System up to 90% | ||||||
25 | of the total actuarial liabilities of the System by the end of
| ||||||
26 | State fiscal year 2045. In making these determinations, the |
| |||||||
| |||||||
1 | required State
contribution shall be calculated each year as a | ||||||
2 | level percentage of payroll
over the years remaining to and | ||||||
3 | including fiscal year 2045 and shall be
determined under the | ||||||
4 | projected unit credit actuarial cost method.
| ||||||
5 | For State fiscal years 1996 through 2005, the State | ||||||
6 | contribution to
the System, as a percentage of the applicable | ||||||
7 | employee payroll, shall be
increased in equal annual increments | ||||||
8 | so that by State fiscal year 2011, the
State is contributing at | ||||||
9 | the rate required under this Section.
| ||||||
10 | Notwithstanding any other provision of this Article, the | ||||||
11 | total required State
contribution for State fiscal year 2006 is | ||||||
12 | $166,641,900.
| ||||||
13 | Notwithstanding any other provision of this Article, the | ||||||
14 | total required State
contribution for State fiscal year 2007 is | ||||||
15 | $252,064,100.
| ||||||
16 | For each of State fiscal years 2008 through 2009, the State | ||||||
17 | contribution to
the System, as a percentage of the applicable | ||||||
18 | employee payroll, shall be
increased in equal annual increments | ||||||
19 | from the required State contribution for State fiscal year | ||||||
20 | 2007, so that by State fiscal year 2011, the
State is | ||||||
21 | contributing at the rate otherwise required under this Section.
| ||||||
22 | Notwithstanding any other provision of this Article, the | ||||||
23 | total required State contribution for State fiscal year 2010 is | ||||||
24 | $702,514,000 and shall be made from the State Pensions Fund and | ||||||
25 | proceeds of bonds sold in fiscal year 2010 pursuant to Section | ||||||
26 | 7.2 of the General Obligation Bond Act, less (i) the pro rata |
| |||||||
| |||||||
1 | share of bond sale expenses determined by the System's share of | ||||||
2 | total bond proceeds, (ii) any amounts received from the General | ||||||
3 | Revenue Fund in fiscal year 2010, (iii) any reduction in bond | ||||||
4 | proceeds due to the issuance of discounted bonds, if | ||||||
5 | applicable. | ||||||
6 | Notwithstanding any other provision of this Article, the
| ||||||
7 | total required State contribution for State fiscal year 2011 is
| ||||||
8 | the amount recertified by the System on or before April 1, 2011 | ||||||
9 | pursuant to Section 15-165 and shall be made from the State | ||||||
10 | Pensions Fund and
proceeds of bonds sold in fiscal year 2011 | ||||||
11 | pursuant to Section
7.2 of the General Obligation Bond Act, | ||||||
12 | less (i) the pro rata
share of bond sale expenses determined by | ||||||
13 | the System's share of
total bond proceeds, (ii) any amounts | ||||||
14 | received from the General
Revenue Fund in fiscal year 2011, and | ||||||
15 | (iii) any reduction in bond
proceeds due to the issuance of | ||||||
16 | discounted bonds, if
applicable. | ||||||
17 | Beginning in State fiscal year 2046, the minimum State | ||||||
18 | contribution for
each fiscal year shall be the amount needed to | ||||||
19 | maintain the total assets of
the System at 90% of the total | ||||||
20 | actuarial liabilities of the System.
| ||||||
21 | Amounts received by the System pursuant to Section 25 of | ||||||
22 | the Budget Stabilization Act or Section 8.12 of the State | ||||||
23 | Finance Act in any fiscal year do not reduce and do not | ||||||
24 | constitute payment of any portion of the minimum State | ||||||
25 | contribution required under this Article in that fiscal year. | ||||||
26 | Such amounts shall not reduce, and shall not be included in the |
| |||||||
| |||||||
1 | calculation of, the required State contributions under this | ||||||
2 | Article in any future year until the System has reached a | ||||||
3 | funding ratio of at least 100% 90% . A reference in this Article | ||||||
4 | to the "required State contribution" or any substantially | ||||||
5 | similar term does not include or apply to any amounts payable | ||||||
6 | to the System under Section 25 of the Budget Stabilization Act. | ||||||
7 | Notwithstanding any other provision of this Section, the | ||||||
8 | required State
contribution for State fiscal year 2005 and for | ||||||
9 | fiscal year 2008 and each fiscal year thereafter through State | ||||||
10 | fiscal year 2013 , as
calculated under this Section and
| ||||||
11 | certified under Section 15-165, shall not exceed an amount | ||||||
12 | equal to (i) the
amount of the required State contribution that | ||||||
13 | would have been calculated under
this Section for that fiscal | ||||||
14 | year if the System had not received any payments
under | ||||||
15 | subsection (d) of Section 7.2 of the General Obligation Bond | ||||||
16 | Act, minus
(ii) the portion of the State's total debt service | ||||||
17 | payments for that fiscal
year on the bonds issued in fiscal | ||||||
18 | year 2003 for the purposes of that Section 7.2, as determined
| ||||||
19 | and certified by the Comptroller, that is the same as the | ||||||
20 | System's portion of
the total moneys distributed under | ||||||
21 | subsection (d) of Section 7.2 of the General
Obligation Bond | ||||||
22 | Act. In determining this maximum for State fiscal years 2008 | ||||||
23 | through 2010, however, the amount referred to in item (i) shall | ||||||
24 | be increased, as a percentage of the applicable employee | ||||||
25 | payroll, in equal increments calculated from the sum of the | ||||||
26 | required State contribution for State fiscal year 2007 plus the |
| |||||||
| |||||||
1 | applicable portion of the State's total debt service payments | ||||||
2 | for fiscal year 2007 on the bonds issued in fiscal year 2003 | ||||||
3 | for the purposes of Section 7.2 of the General
Obligation Bond | ||||||
4 | Act, so that, by State fiscal year 2011, the
State is | ||||||
5 | contributing at the rate otherwise required under this Section.
| ||||||
6 | (a-10) Subject to the limitations provided in subsection | ||||||
7 | (a-15), beginning with State fiscal year 2014, the minimum | ||||||
8 | required contribution of each employer under this Article shall | ||||||
9 | be sufficient to produce an annual amount equal to: | ||||||
10 | (i) the employer's normal cost for that fiscal year, | ||||||
11 | exclusive of the employer's normal cost that arises from | ||||||
12 | optional employer contributions agreed to by that employer | ||||||
13 | for that fiscal year under Section 1-161; plus | ||||||
14 | (ii) the employer's normal cost for that fiscal year | ||||||
15 | that arises from optional employer contributions agreed to | ||||||
16 | by that employer for that fiscal year under Section 1-161; | ||||||
17 | plus | ||||||
18 | (iii) the amount required for that fiscal year to | ||||||
19 | amortize that employer's portion of the unfunded accrued | ||||||
20 | liability associated with the cost of benefits accrued on | ||||||
21 | or after July 1, 2013 as a level percentage of payroll over | ||||||
22 | a 30-year rolling amortization period, as determined for | ||||||
23 | each employer by the Board. | ||||||
24 | Each employer under this Article shall make these | ||||||
25 | contributions in the amounts determined and the manner | ||||||
26 | prescribed from time to time by the Board. |
| |||||||
| |||||||
1 | (a-15) The System shall determine the employer's normal | ||||||
2 | cost under item (i) of subsection (a-10) as a percentage of | ||||||
3 | projected payroll applicable to all employers, based on | ||||||
4 | actuarial assumptions applicable to the System as a whole. The | ||||||
5 | required employer contribution under item (i) in a fiscal year | ||||||
6 | shall not exceed a percentage of payroll determined by | ||||||
7 | subtracting 2013 from the applicable fiscal year and | ||||||
8 | multiplying the result by 0.5%. | ||||||
9 | The System shall determine the employer's normal cost under | ||||||
10 | item (ii) of subsection (a-10) as an additional percentage of | ||||||
11 | projected payroll payable by a specific employer, based on the | ||||||
12 | optional employer contributions agreed to by that employer for | ||||||
13 | that fiscal year under Section 1-161 and the actuarial | ||||||
14 | assumptions applicable to the System as a whole. | ||||||
15 | The System shall determine the employer's portion of the | ||||||
16 | unfunded accrued liability under item (iii) of subsection | ||||||
17 | (a-10) separately for each employer, as a percentage of that | ||||||
18 | employer's projected payroll, based on the liabilities | ||||||
19 | attributable to that employer arising on or after July 1, 2013 | ||||||
20 | and the actuarial assumptions applicable to the System as a | ||||||
21 | whole. | ||||||
22 | For use in determining the employer's contribution for | ||||||
23 | unfunded accrued liability under item (iii), the System shall | ||||||
24 | maintain a separate account for each employer. The separate | ||||||
25 | account shall be maintained in such form and detail as the | ||||||
26 | System determines to be appropriate. The separate account shall |
| |||||||
| |||||||
1 | reflect the following items to the extent that they are | ||||||
2 | attributable to that employer and arise on or after July 1, | ||||||
3 | 2013: employer contributions, State contributions under | ||||||
4 | subsection (a-20), employee contributions, investment returns, | ||||||
5 | payments of benefits, and that employer's proportionate share | ||||||
6 | of the System's administrative expenses. | ||||||
7 | In the event that the Board determines that there is a | ||||||
8 | deficiency or surplus in the account of an employer with | ||||||
9 | respect to the , the Board shall determine the employer's | ||||||
10 | contribution rate under item (iii) of subsection (a-10) so as | ||||||
11 | to address that deficiency or surplus over a reasonable period | ||||||
12 | of time as determined by the Board. | ||||||
13 | (a-20) Beginning in State fiscal year 2014, for any fiscal | ||||||
14 | year in which (1) the System's normal cost for all employers | ||||||
15 | for that fiscal year, exclusive of the normal cost that arises | ||||||
16 | from optional employer contributions agreed to by employers for | ||||||
17 | that fiscal year under Section 1-161, exceeds (2) the total | ||||||
18 | contribution calculated under item (i) of subsection (a-10) for | ||||||
19 | all employers for that fiscal year, the State shall make an | ||||||
20 | additional contribution to the System for that fiscal year | ||||||
21 | equal to the difference. | ||||||
22 | The State contribution under this subsection (a-20) is in | ||||||
23 | addition to the State contributions required under subsection | ||||||
24 | (a-1) and any contributions required to be paid by the State as | ||||||
25 | an employer under subsection (a-10) of this Section. | ||||||
26 | (b) If an employee is paid from trust or federal funds, the |
| |||||||
| |||||||
1 | employer
shall pay to the Board contributions from those funds | ||||||
2 | which are
sufficient to cover the accruing normal costs on | ||||||
3 | behalf of the employee.
However, universities having employees | ||||||
4 | who are compensated out of local
auxiliary funds, income funds, | ||||||
5 | or service enterprise funds are not required
to pay such | ||||||
6 | contributions on behalf of those employees. The local auxiliary
| ||||||
7 | funds, income funds, and service enterprise funds of | ||||||
8 | universities shall not be
considered trust funds for the | ||||||
9 | purpose of this Article, but funds of alumni
associations, | ||||||
10 | foundations, and athletic associations which are affiliated | ||||||
11 | with
the universities included as employers under this Article | ||||||
12 | and other employers
which do not receive State appropriations | ||||||
13 | are considered to be trust funds for
the purpose of this | ||||||
14 | Article.
| ||||||
15 | (b-1) The City of Urbana and the City of Champaign shall | ||||||
16 | each make
employer contributions to this System for their | ||||||
17 | respective firefighter
employees who participate in this | ||||||
18 | System pursuant to subsection (h) of Section
15-107. The rate | ||||||
19 | of contributions to be made by those municipalities shall
be | ||||||
20 | determined annually by the Board on the basis of the actuarial | ||||||
21 | assumptions
adopted by the Board and the recommendations of the | ||||||
22 | actuary, and shall be
expressed as a percentage of salary for | ||||||
23 | each such employee. The Board shall
certify the rate to the | ||||||
24 | affected municipalities as soon as may be practical.
The | ||||||
25 | employer contributions required under this subsection shall be | ||||||
26 | remitted by
the municipality to the System at the same time and |
| |||||||
| |||||||
1 | in the same manner as
employee contributions.
| ||||||
2 | (c) Through State fiscal year 1995: The total employer | ||||||
3 | contribution shall
be apportioned among the various funds of | ||||||
4 | the State and other employers,
whether trust, federal, or other | ||||||
5 | funds, in accordance with actuarial procedures
approved by the | ||||||
6 | Board. State of Illinois contributions for employers receiving
| ||||||
7 | State appropriations for personal services shall be payable | ||||||
8 | from appropriations
made to the employers or to the System. The | ||||||
9 | contributions for Class I
community colleges covering earnings | ||||||
10 | other than those paid from trust and
federal funds, shall be | ||||||
11 | payable solely from appropriations to the Illinois
Community | ||||||
12 | College Board or the System for employer contributions.
| ||||||
13 | (d) Beginning in State fiscal year 1996, the required State | ||||||
14 | contributions
to the System shall be appropriated directly to | ||||||
15 | the System and shall be payable
through vouchers issued in | ||||||
16 | accordance with subsection (c) of Section 15-165, except as | ||||||
17 | provided in subsection (g).
| ||||||
18 | (e) The State Comptroller shall draw warrants payable to | ||||||
19 | the System upon
proper certification by the System or by the | ||||||
20 | employer in accordance with the
appropriation laws and this | ||||||
21 | Code.
| ||||||
22 | (f) Normal costs under this Section means liability for
| ||||||
23 | pensions and other benefits which accrues to the System because | ||||||
24 | of the
credits earned for service rendered by the participants | ||||||
25 | during the
fiscal year and expenses of administering the | ||||||
26 | System, but shall not
include the principal of or any |
| |||||||
| |||||||
1 | redemption premium or interest on any bonds
issued by the Board | ||||||
2 | or any expenses incurred or deposits required in
connection | ||||||
3 | therewith.
| ||||||
4 | (g) The employer contributions under this subsection (g) | ||||||
5 | are no longer required after June 30, 2013. | ||||||
6 | If the amount of a participant's earnings for any academic | ||||||
7 | year used to determine the final rate of earnings, determined | ||||||
8 | on a full-time equivalent basis, exceeds the amount of his or | ||||||
9 | her earnings with the same employer for the previous academic | ||||||
10 | year, determined on a full-time equivalent basis, by more than | ||||||
11 | 6%, the participant's employer shall pay to the System, in | ||||||
12 | addition to all other payments required under this Section and | ||||||
13 | in accordance with guidelines established by the System, the | ||||||
14 | present value of the increase in benefits resulting from the | ||||||
15 | portion of the increase in earnings that is in excess of 6%. | ||||||
16 | This present value shall be computed by the System on the basis | ||||||
17 | of the actuarial assumptions and tables used in the most recent | ||||||
18 | actuarial valuation of the System that is available at the time | ||||||
19 | of the computation. The System may require the employer to | ||||||
20 | provide any pertinent information or documentation. | ||||||
21 | Whenever it determines that a payment is or may be required | ||||||
22 | under this subsection (g), the System shall calculate the | ||||||
23 | amount of the payment and bill the employer for that amount. | ||||||
24 | The bill shall specify the calculations used to determine the | ||||||
25 | amount due. If the employer disputes the amount of the bill, it | ||||||
26 | may, within 30 days after receipt of the bill, apply to the |
| |||||||
| |||||||
1 | System in writing for a recalculation. The application must | ||||||
2 | specify in detail the grounds of the dispute and, if the | ||||||
3 | employer asserts that the calculation is subject to subsection | ||||||
4 | (h) or (i) of this Section, must include an affidavit setting | ||||||
5 | forth and attesting to all facts within the employer's | ||||||
6 | knowledge that are pertinent to the applicability of subsection | ||||||
7 | (h) or (i). Upon receiving a timely application for | ||||||
8 | recalculation, the System shall review the application and, if | ||||||
9 | appropriate, recalculate the amount due.
| ||||||
10 | The employer contributions required under this subsection | ||||||
11 | (g) (f) may be paid in the form of a lump sum within 90 days | ||||||
12 | after receipt of the bill. If the employer contributions are | ||||||
13 | not paid within 90 days after receipt of the bill, then | ||||||
14 | interest will be charged at a rate equal to the System's annual | ||||||
15 | actuarially assumed rate of return on investment compounded | ||||||
16 | annually from the 91st day after receipt of the bill. Payments | ||||||
17 | must be concluded within 3 years after the employer's receipt | ||||||
18 | of the bill. | ||||||
19 | (h) This subsection (h) applies only to payments made or | ||||||
20 | salary increases given on or after June 1, 2005 but before July | ||||||
21 | 1, 2011. The changes made by Public Act 94-1057 shall not | ||||||
22 | require the System to refund any payments received before July | ||||||
23 | 31, 2006 (the effective date of Public Act 94-1057). | ||||||
24 | When assessing payment for any amount due under subsection | ||||||
25 | (g), the System shall exclude earnings increases paid to | ||||||
26 | participants under contracts or collective bargaining |
| |||||||
| |||||||
1 | agreements entered into, amended, or renewed before June 1, | ||||||
2 | 2005.
| ||||||
3 | When assessing payment for any amount due under subsection | ||||||
4 | (g), the System shall exclude earnings increases paid to a | ||||||
5 | participant at a time when the participant is 10 or more years | ||||||
6 | from retirement eligibility under Section 15-135.
| ||||||
7 | When assessing payment for any amount due under subsection | ||||||
8 | (g), the System shall exclude earnings increases resulting from | ||||||
9 | overload work, including a contract for summer teaching, or | ||||||
10 | overtime when the employer has certified to the System, and the | ||||||
11 | System has approved the certification, that: (i) in the case of | ||||||
12 | overloads (A) the overload work is for the sole purpose of | ||||||
13 | academic instruction in excess of the standard number of | ||||||
14 | instruction hours for a full-time employee occurring during the | ||||||
15 | academic year that the overload is paid and (B) the earnings | ||||||
16 | increases are equal to or less than the rate of pay for | ||||||
17 | academic instruction computed using the participant's current | ||||||
18 | salary rate and work schedule; and (ii) in the case of | ||||||
19 | overtime, the overtime was necessary for the educational | ||||||
20 | mission. | ||||||
21 | When assessing payment for any amount due under subsection | ||||||
22 | (g), the System shall exclude any earnings increase resulting | ||||||
23 | from (i) a promotion for which the employee moves from one | ||||||
24 | classification to a higher classification under the State | ||||||
25 | Universities Civil Service System, (ii) a promotion in academic | ||||||
26 | rank for a tenured or tenure-track faculty position, or (iii) a |
| |||||||
| |||||||
1 | promotion that the Illinois Community College Board has | ||||||
2 | recommended in accordance with subsection (k) of this Section. | ||||||
3 | These earnings increases shall be excluded only if the | ||||||
4 | promotion is to a position that has existed and been filled by | ||||||
5 | a member for no less than one complete academic year and the | ||||||
6 | earnings increase as a result of the promotion is an increase | ||||||
7 | that results in an amount no greater than the average salary | ||||||
8 | paid for other similar positions. | ||||||
9 | (i) When assessing payment for any amount due under | ||||||
10 | subsection (g), the System shall exclude any salary increase | ||||||
11 | described in subsection (h) of this Section given on or after | ||||||
12 | July 1, 2011 but before July 1, 2014 under a contract or | ||||||
13 | collective bargaining agreement entered into, amended, or | ||||||
14 | renewed on or after June 1, 2005 but before July 1, 2011. | ||||||
15 | Notwithstanding any other provision of this Section, any | ||||||
16 | payments made or salary increases given after June 30, 2014 | ||||||
17 | shall be used in assessing payment for any amount due under | ||||||
18 | subsection (g) of this Section.
| ||||||
19 | (j) The System shall prepare a report and file copies of | ||||||
20 | the report with the Governor and the General Assembly by | ||||||
21 | January 1, 2007 that contains all of the following information: | ||||||
22 | (1) The number of recalculations required by the | ||||||
23 | changes made to this Section by Public Act 94-1057 for each | ||||||
24 | employer. | ||||||
25 | (2) The dollar amount by which each employer's | ||||||
26 | contribution to the System was changed due to |
| |||||||
| |||||||
1 | recalculations required by Public Act 94-1057. | ||||||
2 | (3) The total amount the System received from each | ||||||
3 | employer as a result of the changes made to this Section by | ||||||
4 | Public Act 94-4. | ||||||
5 | (4) The increase in the required State contribution | ||||||
6 | resulting from the changes made to this Section by Public | ||||||
7 | Act 94-1057. | ||||||
8 | (k) The Illinois Community College Board shall adopt rules | ||||||
9 | for recommending lists of promotional positions submitted to | ||||||
10 | the Board by community colleges and for reviewing the | ||||||
11 | promotional lists on an annual basis. When recommending | ||||||
12 | promotional lists, the Board shall consider the similarity of | ||||||
13 | the positions submitted to those positions recognized for State | ||||||
14 | universities by the State Universities Civil Service System. | ||||||
15 | The Illinois Community College Board shall file a copy of its | ||||||
16 | findings with the System. The System shall consider the | ||||||
17 | findings of the Illinois Community College Board when making | ||||||
18 | determinations under this Section. The System shall not exclude | ||||||
19 | any earnings increases resulting from a promotion when the | ||||||
20 | promotion was not submitted by a community college. Nothing in | ||||||
21 | this subsection (k) shall require any community college to | ||||||
22 | submit any information to the Community College Board.
| ||||||
23 | (l) For purposes of determining the required State | ||||||
24 | contribution to the System, the value of the System's assets | ||||||
25 | shall be equal to the actuarial value of the System's assets, | ||||||
26 | which shall be calculated as follows: |
| |||||||
| |||||||
1 | As of June 30, 2008, the actuarial value of the System's | ||||||
2 | assets shall be equal to the market value of the assets as of | ||||||
3 | that date. In determining the actuarial value of the System's | ||||||
4 | assets for fiscal years after June 30, 2008, any actuarial | ||||||
5 | gains or losses from investment return incurred in a fiscal | ||||||
6 | year shall be recognized in equal annual amounts over the | ||||||
7 | 5-year period following that fiscal year. | ||||||
8 | (m) For purposes of determining the required State | ||||||
9 | contribution to the system for a particular year, the actuarial | ||||||
10 | value of assets shall be assumed to earn a rate of return equal | ||||||
11 | to the system's actuarially assumed rate of return. | ||||||
12 | (Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11; | ||||||
13 | 96-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-813, eff. | ||||||
14 | 7-13-12; revised 10-17-12.)
| ||||||
15 | (40 ILCS 5/15-155.1 new) | ||||||
16 | Sec. 15-155.1. Actions to enforce payments by employers | ||||||
17 | other than the State. Any employer, other than the State, that | ||||||
18 | fails to transmit to the System contributions required of
it | ||||||
19 | under this Article or contributions required of employees, for | ||||||
20 | more
than 90 days after such contributions are due, is subject | ||||||
21 | to the following:
after giving notice to the employer, the | ||||||
22 | System may certify
to the State Comptroller or the Illinois | ||||||
23 | Community College Board, whichever is applicable, the
amounts | ||||||
24 | of such delinquent payments and the State Comptroller or the | ||||||
25 | Illinois Community College Board, whichever is applicable, |
| |||||||
| |||||||
1 | shall deduct the amounts so certified
or any part thereof from | ||||||
2 | any State funds to be remitted
to the employer and shall
pay | ||||||
3 | the amount so deducted to the System. If State funds from which
| ||||||
4 | such deductions may be made are not available, the System may | ||||||
5 | proceed
against the employer to recover the
amounts of such | ||||||
6 | delinquent payments in the appropriate circuit court. | ||||||
7 | The System may provide for an
audit of the records of an | ||||||
8 | employer, other than the State, as
may be required to establish | ||||||
9 | the amounts of required contributions.
The employer shall make | ||||||
10 | its records
available to the System for the purpose of such | ||||||
11 | audit. The cost of such
audit shall be added to the amount of | ||||||
12 | the delinquent payments and may
be recovered by the System from | ||||||
13 | the employer at the same time and in the same manner as the | ||||||
14 | delinquent payments
are recovered.
| ||||||
15 | (40 ILCS 5/15-156) (from Ch. 108 1/2, par. 15-156)
| ||||||
16 | Sec. 15-156. Obligations of State ; funding guarantees . | ||||||
17 | (a) The payment of (1) the
required State contributions, | ||||||
18 | (2) all benefits
granted under this system and (3) all expenses | ||||||
19 | in connection with the
administration and operation thereof are | ||||||
20 | obligations of the State of
Illinois to the extent specified in | ||||||
21 | this Article. The accumulated
employee normal, additional and | ||||||
22 | survivors insurance contributions
credited to the accounts of | ||||||
23 | active and inactive participants
shall not be used to pay the | ||||||
24 | State's share of the obligations.
| ||||||
25 | (b) Beginning July 1, 2013, the State shall be |
| |||||||
| |||||||
1 | contractually obligated to contribute to the System under | ||||||
2 | Section 15-155 in each State fiscal year an amount not less | ||||||
3 | than the sum of (i) the State's required contribution under | ||||||
4 | subsections (a-10) and (a-20) of Section 15-155 and
(ii) the | ||||||
5 | portion of the total cost of the benefits of the System arising | ||||||
6 | before July 1, 2013 assigned to that State fiscal year by law | ||||||
7 | in accordance with a schedule that distributes payments | ||||||
8 | equitably over a reasonable period of time and in accordance | ||||||
9 | with accepted actuarial practices. The obligations created | ||||||
10 | under this subsection (b) are contractual obligations | ||||||
11 | protected and enforceable under Article I, Section 16 and | ||||||
12 | Article XIII, Section 5 of the Illinois Constitution. | ||||||
13 | Notwithstanding any other provision of law, if the State | ||||||
14 | fails to pay in a State fiscal year the amount guaranteed under | ||||||
15 | this subsection, the System may bring a mandamus action in the | ||||||
16 | circuit court of Champaign or Sangamon County to compel the | ||||||
17 | State to make that payment, irrespective of other remedies that
| ||||||
18 | may be available to the System. In ordering the State to make | ||||||
19 | the required payment, the court may order a reasonable payment | ||||||
20 | schedule to enable the State to make the required payment | ||||||
21 | without significantly imperiling the public health, safety, or | ||||||
22 | welfare. | ||||||
23 | Any payments required to be made by the State pursuant to | ||||||
24 | this subsection (b)
are expressly subordinated to the payment | ||||||
25 | of the principal, interest, and premium, if any, on any
bonded | ||||||
26 | debt obligation of the State or any other State-created entity, |
| |||||||
| |||||||
1 | either currently outstanding or to
be issued, for which the | ||||||
2 | source of repayment or security thereon is derived directly or | ||||||
3 | indirectly from
tax revenues collected by the State or any | ||||||
4 | other State-created entity. Payments on such bonded
| ||||||
5 | obligations include any statutory fund transfers or other | ||||||
6 | prefunding mechanisms or formulas set forth,
now or hereafter, | ||||||
7 | in State law or bond indentures, into debt service funds or | ||||||
8 | accounts of the State
related to such bonded obligations, | ||||||
9 | consistent with the payment schedules associated with such
| ||||||
10 | obligations. | ||||||
11 | (Source: P.A. 83-1440.)
| ||||||
12 | (40 ILCS 5/15-157) (from Ch. 108 1/2, par. 15-157)
| ||||||
13 | Sec. 15-157. Employee Contributions.
| ||||||
14 | (a) Each participating employee
shall make contributions | ||||||
15 | towards the retirement
benefits payable under the retirement | ||||||
16 | program applicable to the
employee from each payment
of | ||||||
17 | earnings applicable to employment under this system on and | ||||||
18 | after the
date of becoming a participant as follows: Prior to | ||||||
19 | September 1, 1949,
3 1/2% of earnings; from September 1, 1949 | ||||||
20 | to August 31, 1955, 5%; from
September 1, 1955 to August 31, | ||||||
21 | 1969, 6%; from September 1, 1969, 6 1/2%.
These contributions | ||||||
22 | are to be considered as normal contributions for purposes
of | ||||||
23 | this Article.
| ||||||
24 | Each participant who is a police officer or firefighter | ||||||
25 | shall make normal
contributions of 8% of each payment of |
| |||||||
| |||||||
1 | earnings applicable to employment as a
police officer or | ||||||
2 | firefighter under this system on or after September 1, 1981,
| ||||||
3 | unless he or she files with the board within 60 days after the | ||||||
4 | effective date
of this amendatory Act of 1991 or 60 days after | ||||||
5 | the board receives notice that
he or she is employed as a | ||||||
6 | police officer or firefighter, whichever is later,
a written | ||||||
7 | notice waiving the retirement formula provided by Rule 4 of | ||||||
8 | Section
15-136. This waiver shall be irrevocable. If a | ||||||
9 | participant had met the
conditions set forth in Section | ||||||
10 | 15-132.1 prior to the effective date of this
amendatory Act of | ||||||
11 | 1991 but failed to make the additional normal contributions
| ||||||
12 | required by this paragraph, he or she may elect to pay the | ||||||
13 | additional
contributions plus compound interest at the | ||||||
14 | effective rate. If such payment
is received by the board, the | ||||||
15 | service shall be considered as police officer
service in | ||||||
16 | calculating the retirement annuity under Rule 4 of Section | ||||||
17 | 15-136.
While performing service described in clause (i) or | ||||||
18 | (ii) of Rule 4 of Section
15-136, a participating employee | ||||||
19 | shall be deemed to be employed as a
firefighter for the purpose | ||||||
20 | of determining the rate of employee contributions
under this | ||||||
21 | Section.
| ||||||
22 | (b) Starting September 1, 1969, each participating | ||||||
23 | employee shall make
additional contributions of 1/2 of 1% of | ||||||
24 | earnings to finance a portion
of the cost of the annual | ||||||
25 | increases in retirement annuity provided under
Section 15-136, | ||||||
26 | except that with respect to participants in the
self-managed |
| |||||||
| |||||||
1 | plan this additional contribution shall be used to finance the
| ||||||
2 | benefits obtained under that retirement program.
| ||||||
3 | (c) In addition to the amounts described in subsections (a) | ||||||
4 | and (b) of this
Section, each participating employee shall make | ||||||
5 | contributions of 1% of earnings
applicable under this system on | ||||||
6 | and after August 1, 1959. The contributions
made under this | ||||||
7 | subsection (c) shall be considered as survivor's insurance
| ||||||
8 | contributions for purposes of this Article if the employee is | ||||||
9 | covered under
the traditional benefit package, and such | ||||||
10 | contributions shall be considered
as additional contributions | ||||||
11 | for purposes of this Article if the employee is
participating | ||||||
12 | in the self-managed plan or has elected to participate in the
| ||||||
13 | portable benefit package and has completed the applicable | ||||||
14 | one-year waiting
period. Contributions in excess of $80 during | ||||||
15 | any fiscal year beginning before
August 31, 1969 and in excess | ||||||
16 | of $120 during any fiscal year thereafter until
September 1, | ||||||
17 | 1971 shall be considered as additional contributions for | ||||||
18 | purposes
of this Article.
| ||||||
19 | (c-5) In addition to the contributions otherwise required | ||||||
20 | under this Article, each Tier I participant shall also make the | ||||||
21 | following contributions toward the retirement
benefits payable | ||||||
22 | under the retirement program applicable to the
employee from | ||||||
23 | each payment
of earnings applicable to employment under this | ||||||
24 | system: | ||||||
25 | (1) beginning July 1, 2013 and through June 30, 2014, | ||||||
26 | 1% of earnings; and |
| |||||||
| |||||||
1 | (2) beginning on July 1, 2014, 2% of earnings. | ||||||
2 | Except as otherwise specified, these contributions are to | ||||||
3 | be considered as normal contributions for purposes
of this | ||||||
4 | Article. | ||||||
5 | (d) If the board by board rule so permits and subject to | ||||||
6 | such conditions
and limitations as may be specified in its | ||||||
7 | rules, a participant may make
other additional contributions of | ||||||
8 | such percentage of earnings or amounts as
the participant shall | ||||||
9 | elect in a written notice thereof received by the board.
| ||||||
10 | (e) That fraction of a participant's total accumulated | ||||||
11 | normal
contributions, the numerator of which is equal to the | ||||||
12 | number of years of
service in excess of that which is required | ||||||
13 | to qualify for the maximum
retirement annuity, and the | ||||||
14 | denominator of which is equal to the total
service of the | ||||||
15 | participant, shall be considered as accumulated additional
| ||||||
16 | contributions. The determination of the applicable maximum | ||||||
17 | annuity and
the adjustment in contributions required by this | ||||||
18 | provision shall be made
as of the date of the participant's | ||||||
19 | retirement.
| ||||||
20 | (f) Notwithstanding the foregoing, a participating | ||||||
21 | employee shall not
be required to make contributions under this | ||||||
22 | Section after the date upon
which continuance of such | ||||||
23 | contributions would otherwise cause his or her
retirement | ||||||
24 | annuity to exceed the maximum retirement annuity as specified | ||||||
25 | in
clause (1) of subsection (c) of Section 15-136.
| ||||||
26 | (g) A participating employee may make contributions for the |
| |||||||
| |||||||
1 | purchase of
service credit under this Article.
| ||||||
2 | (Source: P.A. 90-32, eff. 6-27-97; 90-65, eff. 7-7-97; 90-448, | ||||||
3 | eff. 8-16-97;
90-511, eff. 8-22-97; 90-576, eff. 3-31-98; | ||||||
4 | 90-655, eff. 7-30-98; 90-766, eff.
8-14-98.)
| ||||||
5 | (40 ILCS 5/15-165)
(from Ch. 108 1/2, par. 15-165)
| ||||||
6 | Sec. 15-165. To certify amounts and submit vouchers.
| ||||||
7 | (a) The Board shall certify to the Governor on or before | ||||||
8 | November 15 of each
year through until November 15, 2011 the | ||||||
9 | appropriation required from State funds for the purposes of | ||||||
10 | this
System for the following fiscal year. The certification | ||||||
11 | under this subsection (a) shall include a copy
of the actuarial | ||||||
12 | recommendations upon which it is based and shall specifically | ||||||
13 | identify the System's projected State normal cost for that | ||||||
14 | fiscal year and the projected State cost for the self-managed | ||||||
15 | plan for that fiscal year .
| ||||||
16 | On or before May 1, 2004, the Board shall recalculate and | ||||||
17 | recertify to
the Governor the amount of the required State | ||||||
18 | contribution to the System for
State fiscal year 2005, taking | ||||||
19 | into account the amounts appropriated to and
received by the | ||||||
20 | System under subsection (d) of Section 7.2 of the General
| ||||||
21 | Obligation Bond Act.
| ||||||
22 | On or before July 1, 2005, the Board shall recalculate and | ||||||
23 | recertify
to the Governor the amount of the required State
| ||||||
24 | contribution to the System for State fiscal year 2006, taking | ||||||
25 | into account the changes in required State contributions made |
| |||||||
| |||||||
1 | by this amendatory Act of the 94th General Assembly.
| ||||||
2 | On or before April 1, 2011, the Board shall recalculate and | ||||||
3 | recertify to the Governor the amount of the required State | ||||||
4 | contribution to the System for State fiscal year 2011, applying | ||||||
5 | the changes made by Public Act 96-889 to the System's assets | ||||||
6 | and liabilities as of June 30, 2009 as though Public Act 96-889 | ||||||
7 | was approved on that date. | ||||||
8 | On or before July 1, 2013, the Board shall, if necessary, | ||||||
9 | recalculate and recertify
to the Governor the amount of the | ||||||
10 | required State
contribution to the System for State fiscal year | ||||||
11 | 2014, taking into account the changes in required State | ||||||
12 | contributions made by this amendatory Act of the 98th General | ||||||
13 | Assembly. | ||||||
14 | (a-5) On or before November 1 of each year, beginning | ||||||
15 | November 1, 2012, the Board shall submit to the State Actuary, | ||||||
16 | the Governor, and the General Assembly a proposed certification | ||||||
17 | of the amount of the required State contribution to the System | ||||||
18 | for the next fiscal year, along with all of the actuarial | ||||||
19 | assumptions, calculations, and data upon which that proposed | ||||||
20 | certification is based. On or before January 1 of each year, | ||||||
21 | beginning January 1, 2013, the State Actuary shall issue a | ||||||
22 | preliminary report concerning the proposed certification and | ||||||
23 | identifying, if necessary, recommended changes in actuarial | ||||||
24 | assumptions that the Board must consider before finalizing its | ||||||
25 | certification of the required State contributions. | ||||||
26 | On or before January 15, 2013 and each January 15 |
| |||||||
| |||||||
1 | thereafter, the Board shall certify to the Governor and the | ||||||
2 | General Assembly the amount of the required State contribution | ||||||
3 | for the next fiscal year. The certification shall include a | ||||||
4 | copy of the actuarial
recommendations upon which it is based | ||||||
5 | and shall specifically identify the System's projected State | ||||||
6 | normal cost for that fiscal year and the projected State cost | ||||||
7 | for the self-managed plan for that fiscal year. The Board's | ||||||
8 | certification must note, in a written response to the State | ||||||
9 | Actuary, any deviations from the State Actuary's recommended | ||||||
10 | changes, the reason or reasons for not following the State | ||||||
11 | Actuary's recommended changes, and the fiscal impact of not | ||||||
12 | following the State Actuary's recommended changes on the | ||||||
13 | required State contribution. | ||||||
14 | (b) The Board shall certify to the State Comptroller or | ||||||
15 | employer, as the
case may be, from time to time, by its | ||||||
16 | president and secretary, with its seal
attached, the amounts | ||||||
17 | payable to the System from the various funds.
| ||||||
18 | (c) Beginning in State fiscal year 1996, on or as soon as | ||||||
19 | possible after the
15th day of each month the Board shall | ||||||
20 | submit vouchers for payment of State
contributions to the | ||||||
21 | System, in a total monthly amount of one-twelfth of the
| ||||||
22 | required annual State contribution certified under subsection | ||||||
23 | (a).
From the effective date of this amendatory Act
of the 93rd | ||||||
24 | General Assembly through June 30, 2004, the Board shall not
| ||||||
25 | submit vouchers for the remainder of fiscal year 2004 in excess | ||||||
26 | of the
fiscal year 2004 certified contribution amount |
| |||||||
| |||||||
1 | determined
under this Section after taking into consideration | ||||||
2 | the transfer to the
System under subsection (b) of Section | ||||||
3 | 6z-61 of the State Finance Act.
These
vouchers shall be paid by | ||||||
4 | the State Comptroller and Treasurer by warrants drawn
on the | ||||||
5 | funds appropriated to the System for that fiscal year.
| ||||||
6 | If in any month the amount remaining unexpended from all | ||||||
7 | other
appropriations to the System for the applicable fiscal | ||||||
8 | year (including the
appropriations to the System under Section | ||||||
9 | 8.12 of the State Finance Act and
Section 1 of the State | ||||||
10 | Pension Funds Continuing Appropriation Act) is less than
the | ||||||
11 | amount lawfully vouchered under this Section, the difference | ||||||
12 | shall be paid
from the General Revenue Fund under the | ||||||
13 | continuing appropriation authority
provided in Section 1.1 of | ||||||
14 | the State Pension Funds Continuing Appropriation
Act.
| ||||||
15 | (d) So long as the payments received are the full amount | ||||||
16 | lawfully
vouchered under this Section, payments received by the | ||||||
17 | System under this
Section shall be applied first toward the | ||||||
18 | employer contribution to the
self-managed plan established | ||||||
19 | under Section 15-158.2. Payments shall be
applied second toward | ||||||
20 | the employer's portion of the normal costs of the System,
as | ||||||
21 | defined in subsection (f) of Section 15-155. The balance shall | ||||||
22 | be applied
toward the unfunded actuarial liabilities of the | ||||||
23 | System.
| ||||||
24 | (e) In the event that the System does not receive, as a | ||||||
25 | result of
legislative enactment or otherwise, payments | ||||||
26 | sufficient to
fully fund the employer contribution to the |
| |||||||
| |||||||
1 | self-managed plan
established under Section 15-158.2 and to | ||||||
2 | fully fund that portion of the
employer's portion of the normal | ||||||
3 | costs of the System, as calculated in
accordance with Section | ||||||
4 | 15-155(a-1), then any payments received shall be
applied | ||||||
5 | proportionately to the optional retirement program established | ||||||
6 | under
Section 15-158.2 and to the employer's portion of the | ||||||
7 | normal costs of the
System, as calculated in accordance with | ||||||
8 | Section 15-155(a-1).
| ||||||
9 | (Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11; | ||||||
10 | 97-694, eff. 6-18-12.)
| ||||||
11 | (40 ILCS 5/15-198)
| ||||||
12 | Sec. 15-198. Application and expiration of new benefit | ||||||
13 | increases. | ||||||
14 | (a) As used in this Section, "new benefit increase" means | ||||||
15 | an increase in the amount of any benefit provided under this | ||||||
16 | Article, or an expansion of the conditions of eligibility for | ||||||
17 | any benefit under this Article or Article 1 , that results from | ||||||
18 | an amendment to this Code that takes effect after the effective | ||||||
19 | date of this amendatory Act of the 94th General Assembly. "New | ||||||
20 | benefit increase", however, does not include any benefit | ||||||
21 | increase resulting from the changes made to this Article or | ||||||
22 | Article 1 by this amendatory Act of the 98th General Assembly. | ||||||
23 | (b) Notwithstanding any other provision of this Code or any | ||||||
24 | subsequent amendment to this Code, every new benefit increase | ||||||
25 | is subject to this Section and shall be deemed to be granted |
| |||||||
| |||||||
1 | only in conformance with and contingent upon compliance with | ||||||
2 | the provisions of this Section.
| ||||||
3 | (c) The Public Act enacting a new benefit increase must | ||||||
4 | identify and provide for payment to the System of additional | ||||||
5 | funding at least sufficient to fund the resulting annual | ||||||
6 | increase in cost to the System as it accrues. | ||||||
7 | Every new benefit increase is contingent upon the General | ||||||
8 | Assembly providing the additional funding required under this | ||||||
9 | subsection. The Commission on Government Forecasting and | ||||||
10 | Accountability shall analyze whether adequate additional | ||||||
11 | funding has been provided for the new benefit increase and | ||||||
12 | shall report its analysis to the Public Pension Division of the | ||||||
13 | Department of Financial and Professional Regulation. A new | ||||||
14 | benefit increase created by a Public Act that does not include | ||||||
15 | the additional funding required under this subsection is null | ||||||
16 | and void. If the Public Pension Division determines that the | ||||||
17 | additional funding provided for a new benefit increase under | ||||||
18 | this subsection is or has become inadequate, it may so certify | ||||||
19 | to the Governor and the State Comptroller and, in the absence | ||||||
20 | of corrective action by the General Assembly, the new benefit | ||||||
21 | increase shall expire at the end of the fiscal year in which | ||||||
22 | the certification is made.
| ||||||
23 | (d) Every new benefit increase shall expire 5 years after | ||||||
24 | its effective date or on such earlier date as may be specified | ||||||
25 | in the language enacting the new benefit increase or provided | ||||||
26 | under subsection (c). This does not prevent the General |
| |||||||
| |||||||
1 | Assembly from extending or re-creating a new benefit increase | ||||||
2 | by law. | ||||||
3 | (e) Except as otherwise provided in the language creating | ||||||
4 | the new benefit increase, a new benefit increase that expires | ||||||
5 | under this Section continues to apply to persons who applied | ||||||
6 | and qualified for the affected benefit while the new benefit | ||||||
7 | increase was in effect and to the affected beneficiaries and | ||||||
8 | alternate payees of such persons, but does not apply to any | ||||||
9 | other person, including without limitation a person who | ||||||
10 | continues in service after the expiration date and did not | ||||||
11 | apply and qualify for the affected benefit while the new | ||||||
12 | benefit increase was in effect.
| ||||||
13 | (Source: P.A. 94-4, eff. 6-1-05.) | ||||||
14 | (40 ILCS 5/16-106.4 new) | ||||||
15 | Sec. 16-106.4. Tier I member. "Tier I member": A member | ||||||
16 | under this Article who first became a member or participant | ||||||
17 | before January 1, 2011 under any reciprocal retirement system | ||||||
18 | or pension fund established under this Code other than a | ||||||
19 | retirement system or pension fund established under Article 2, | ||||||
20 | 3, 4, 5, 6, or 18 of this Code. | ||||||
21 | (40 ILCS 5/16-106.5 new) | ||||||
22 | Sec. 16-106.5. Tier I retiree. "Tier I retiree": A former | ||||||
23 | Tier I member who is receiving a retirement annuity.
|
| |||||||
| |||||||
1 | (40 ILCS 5/16-121) (from Ch. 108 1/2, par. 16-121)
| ||||||
2 | Sec. 16-121. Salary. "Salary": The actual compensation | ||||||
3 | received by a teacher during any
school year and recognized by | ||||||
4 | the system in accordance with
rules of the board. For purposes | ||||||
5 | of this Section, "school year" includes
the regular school term | ||||||
6 | plus any additional period for which a teacher is
compensated | ||||||
7 | and such compensation is recognized by the rules of the board.
| ||||||
8 | Notwithstanding any other provision of this Code, the | ||||||
9 | salary of a Tier I member for the purposes of this Code shall | ||||||
10 | not exceed, for periods of service on or after the effective | ||||||
11 | date of this amendatory Act of the 98th General Assembly, the | ||||||
12 | annual contribution and benefit base established for the | ||||||
13 | applicable year by the Commissioner of Social Security under | ||||||
14 | the federal Social Security Act; except that this limitation | ||||||
15 | does not apply to a member's salary that is determined under an | ||||||
16 | employment contract or collective bargaining agreement that is | ||||||
17 | in effect on the effective date of this amendatory Act of the | ||||||
18 | 98th General Assembly and has not been amended or renewed after | ||||||
19 | that date. | ||||||
20 | (Source: P.A. 84-1028.)
| ||||||
21 | (40 ILCS 5/16-132) (from Ch. 108 1/2, par. 16-132)
| ||||||
22 | Sec. 16-132. Retirement annuity eligibility. | ||||||
23 | (a) A member who has at least 20 years of creditable | ||||||
24 | service is entitled to a
retirement annuity upon or after | ||||||
25 | attainment of age 55.
A member who has at least 10 but less |
| |||||||
| |||||||
1 | than 20 years of creditable service is
entitled to a retirement | ||||||
2 | annuity upon or after attainment of age 60.
A member who has at | ||||||
3 | least 5 but less than 10 years of creditable service is
| ||||||
4 | entitled to a retirement annuity upon or after attainment of | ||||||
5 | age 62.
A member who (i) has earned during the period | ||||||
6 | immediately preceding the last
day of service at least one year | ||||||
7 | of contributing creditable service as an
employee of a | ||||||
8 | department as defined in Section 14-103.04, (ii) has earned at
| ||||||
9 | least 5 years of contributing creditable service as an employee | ||||||
10 | of a department
as defined in Section 14-103.04, and (iii) | ||||||
11 | retires on or after January 1, 2001
is entitled to a retirement | ||||||
12 | annuity upon or after attainment of an age which,
when added to | ||||||
13 | the number of years of his or her total creditable service,
| ||||||
14 | equals at least 85. Portions of years shall be counted as | ||||||
15 | decimal equivalents.
| ||||||
16 | A member who is eligible to receive a retirement annuity of | ||||||
17 | at least 74.6% of
final average salary and will attain age 55 | ||||||
18 | on or before December 31 during the
year which commences on | ||||||
19 | July 1 shall be deemed to attain age 55 on the
preceding June | ||||||
20 | 1.
| ||||||
21 | (b) Notwithstanding subsection (a) of this Section, for a | ||||||
22 | Tier I member who begins receiving a retirement annuity under | ||||||
23 | this Article after July 1, 2013: | ||||||
24 | (1) If the Tier I member is at least 45 years old on | ||||||
25 | the effective date of this amendatory Act of the 98th | ||||||
26 | General Assembly, then the references to age 55, 60, and 62 |
| |||||||
| |||||||
1 | in subsection (a) of this Section remain unchanged and the | ||||||
2 | reference to 85 in subsection (a) of this Section remains | ||||||
3 | unchanged. | ||||||
4 | (2) If the Tier I member is at least 40 but less than | ||||||
5 | 45 years old on the effective date of this amendatory Act | ||||||
6 | of the 98th General Assembly, then the references to age | ||||||
7 | 55, 60, and 62 in subsection (a) of this Section are | ||||||
8 | increased by one year and the reference to 85 in subsection | ||||||
9 | (a) is increased to 87. | ||||||
10 | (3) If the Tier I member is at least 35 but less than | ||||||
11 | 40 years old on the effective date of this amendatory Act | ||||||
12 | of the 98th General Assembly, then the references to age | ||||||
13 | 55, 60, and 62 in subsection (a) of this Section are | ||||||
14 | increased by 3 years and the reference to 85 in subsection | ||||||
15 | (a) is increased to 91. | ||||||
16 | (4) If the Tier I member is less than 35 years old on | ||||||
17 | the effective date of this amendatory Act of the 98th | ||||||
18 | General Assembly, then the references to age 55, 60, and 62 | ||||||
19 | in subsection (a) of this Section are increased by 5 years | ||||||
20 | and the reference to 85 in subsection (a) is increased to | ||||||
21 | 95. | ||||||
22 | Notwithstanding Section 1-103.1, this subsection (b) | ||||||
23 | applies without regard to whether or not the Tier I member is | ||||||
24 | in active service under this Article on or after the effective | ||||||
25 | date of this amendatory Act of the 98th General Assembly. | ||||||
26 | (c) A member meeting the above eligibility conditions is |
| |||||||
| |||||||
1 | entitled to a retirement
annuity upon written application to | ||||||
2 | the board setting forth the date the member
wishes the | ||||||
3 | retirement annuity to commence. However, the effective date of | ||||||
4 | the
retirement annuity shall be no earlier than the day | ||||||
5 | following the last day of
creditable service, regardless of the | ||||||
6 | date of official termination of
employment.
| ||||||
7 | (d) To be eligible for a retirement annuity, a member shall | ||||||
8 | not be employed
as a teacher in the schools included under this | ||||||
9 | System or under Article 17,
except (i) as provided in Section | ||||||
10 | 16-118 or 16-150.1, (ii) if
the member is disabled (in which | ||||||
11 | event, eligibility for salary must cease),
or (iii) if the | ||||||
12 | System is required by federal law to commence
payment due to | ||||||
13 | the member's age; the changes to this sentence made by Public | ||||||
14 | Act 93-320 this
amendatory Act of the 93rd General Assembly | ||||||
15 | apply without
regard to whether the member terminated | ||||||
16 | employment before or after its
effective date.
| ||||||
17 | (Source: P.A. 93-320, eff. 7-23-03.)
| ||||||
18 | (40 ILCS 5/16-133) (from Ch. 108 1/2, par. 16-133)
| ||||||
19 | Sec. 16-133. Retirement annuity; amount.
| ||||||
20 | (a) The amount of the retirement annuity shall be (i) in | ||||||
21 | the case of a person who first became a teacher under this | ||||||
22 | Article before July 1, 2005, the larger of the
amounts | ||||||
23 | determined under paragraphs (A) and (B) below, or (ii) in the | ||||||
24 | case of a person who first becomes a teacher under this Article | ||||||
25 | on or after July 1, 2005, the amount determined under the |
| |||||||
| |||||||
1 | applicable provisions of paragraph (B):
| ||||||
2 | (A) An amount consisting of the sum of the following:
| ||||||
3 | (1) An amount that can be provided on an | ||||||
4 | actuarially equivalent basis
by the member's | ||||||
5 | accumulated contributions at the time of retirement; | ||||||
6 | and
| ||||||
7 | (2) The sum of (i) the amount that can be provided | ||||||
8 | on an actuarially
equivalent basis by the member's | ||||||
9 | accumulated contributions representing
service prior | ||||||
10 | to July 1, 1947, and (ii) the amount that can be | ||||||
11 | provided on
an actuarially equivalent basis by the | ||||||
12 | amount obtained by multiplying 1.4
times the member's | ||||||
13 | accumulated contributions covering service subsequent | ||||||
14 | to
June 30, 1947; and
| ||||||
15 | (3) If there is prior service, 2 times the amount | ||||||
16 | that would have been
determined under subparagraph (2) | ||||||
17 | of paragraph (A) above on account of
contributions | ||||||
18 | which would have been made during the period of prior | ||||||
19 | service
creditable to the member had the System been in | ||||||
20 | operation and had the
member made contributions at the | ||||||
21 | contribution rate in effect prior to
July 1, 1947.
| ||||||
22 | For the purpose of calculating the sum provided under | ||||||
23 | this paragraph (A), the contribution required under | ||||||
24 | subsection (a-5) of Section 16-152 shall not be considered | ||||||
25 | when determining the amount of the member's accumulated | ||||||
26 | contributions under subparagraph (1) or (2). |
| |||||||
| |||||||
1 | This paragraph (A) does not apply to a person who first | ||||||
2 | becomes a teacher under this Article on or after July 1, | ||||||
3 | 2005.
| ||||||
4 | (B) An amount consisting of the greater of the | ||||||
5 | following:
| ||||||
6 | (1) For creditable service earned before July 1, | ||||||
7 | 1998 that has not
been augmented under Section | ||||||
8 | 16-129.1: 1.67% of final average salary for
each of the | ||||||
9 | first 10 years of creditable service, 1.90% of final | ||||||
10 | average salary
for each year in excess of 10 but not | ||||||
11 | exceeding 20, 2.10% of final average
salary for each | ||||||
12 | year in excess of 20 but not exceeding 30, and 2.30% of | ||||||
13 | final
average salary for each year in excess of 30; and
| ||||||
14 | For creditable service earned on or after July 1, | ||||||
15 | 1998 by a member who
has at least 24 years of | ||||||
16 | creditable service on July 1, 1998 and who
does not | ||||||
17 | elect to augment service under Section 16-129.1: 2.2% | ||||||
18 | of final
average salary for each year of creditable | ||||||
19 | service earned on or after July 1,
1998 but before the | ||||||
20 | member reaches a total of 30 years of creditable | ||||||
21 | service
and 2.3% of final average salary for each year | ||||||
22 | of creditable service earned
on or after July 1, 1998 | ||||||
23 | and after the member reaches a total of 30 years of
| ||||||
24 | creditable service; and
| ||||||
25 | For all other creditable service: 2.2% of final | ||||||
26 | average salary
for each year of creditable service; or
|
| |||||||
| |||||||
1 | (2) 1.5% of final average salary for each year of
| ||||||
2 | creditable service plus the sum $7.50 for each of the | ||||||
3 | first 20 years of
creditable service.
| ||||||
4 | The amount of the retirement annuity determined under this | ||||||
5 | paragraph (B)
shall be reduced by 1/2 of 1% for each month | ||||||
6 | that the member is less than
age 60 at the time the | ||||||
7 | retirement annuity begins. However, this reduction
shall | ||||||
8 | not apply (i) if the member has at least 35 years of | ||||||
9 | creditable service,
or (ii) if the member retires on | ||||||
10 | account of disability under Section 16-149.2
of this | ||||||
11 | Article with at least 20 years of creditable service, or | ||||||
12 | (iii) if
the member (1) has earned during the period | ||||||
13 | immediately preceding the last
day of service at least one | ||||||
14 | year of contributing creditable service as an
employee of a | ||||||
15 | department as defined in Section 14-103.04, (2) has earned | ||||||
16 | at
least 5 years of contributing creditable service as an | ||||||
17 | employee of a department
as defined in Section 14-103.04, | ||||||
18 | (3) retires on or after January 1, 2001, and
(4) retires | ||||||
19 | having attained an age which, when added to the number of | ||||||
20 | years of
his or her total creditable service, equals at | ||||||
21 | least 85. Portions of years
shall be counted as decimal | ||||||
22 | equivalents. For participants to whom subsection (b) of | ||||||
23 | Section 16-132 applies, the reference to age 60 in this | ||||||
24 | paragraph and the reference to 85 in this paragraph are | ||||||
25 | increased as provided in subsection (b) of Section 16-132.
| ||||||
26 | (b) For purposes of this Section, final average salary |
| |||||||
| |||||||
1 | shall be the
average salary for the highest 4 consecutive years | ||||||
2 | within the last 10 years
of creditable service as determined | ||||||
3 | under rules of the board. The minimum
final average salary | ||||||
4 | shall be considered to be $2,400 per year.
| ||||||
5 | In the determination of final average salary for members | ||||||
6 | other than
elected officials and their appointees when such | ||||||
7 | appointees are allowed by
statute, that part of a member's | ||||||
8 | salary for any year beginning after June
30, 1979 which exceeds | ||||||
9 | the member's annual full-time salary rate with the
same | ||||||
10 | employer for the preceding year by more than 20% shall be | ||||||
11 | excluded.
The exclusion shall not apply in any year in which | ||||||
12 | the member's creditable
earnings are less than 50% of the | ||||||
13 | preceding year's mean salary for downstate
teachers as | ||||||
14 | determined by the survey of school district salaries provided | ||||||
15 | in
Section 2-3.103 of the School Code.
| ||||||
16 | (c) In determining the amount of the retirement annuity | ||||||
17 | under paragraph
(B) of this Section, a fractional year shall be | ||||||
18 | granted proportional credit.
| ||||||
19 | (d) The retirement annuity determined under paragraph (B) | ||||||
20 | of this Section
shall be available only to members who render | ||||||
21 | teaching service after July
1, 1947 for which member | ||||||
22 | contributions are required, and to annuitants who
re-enter | ||||||
23 | under the provisions of Section 16-150.
| ||||||
24 | (e) The maximum retirement annuity provided under | ||||||
25 | paragraph (B) of this
Section shall be 75% of final average | ||||||
26 | salary.
|
| |||||||
| |||||||
1 | (f) A member retiring after the effective date of this | ||||||
2 | amendatory Act
of 1998 shall receive a pension equal to 75% of | ||||||
3 | final average salary if the
member is qualified to receive a | ||||||
4 | retirement annuity equal to at least 74.6%
of final average | ||||||
5 | salary under this Article or as proportional annuities under
| ||||||
6 | Article 20 of this Code.
| ||||||
7 | (Source: P.A. 94-4, eff. 6-1-05.)
| ||||||
8 | (40 ILCS 5/16-133.1) (from Ch. 108 1/2, par. 16-133.1)
| ||||||
9 | Sec. 16-133.1. Automatic annual increase in annuity.
| ||||||
10 | (a) Each member with creditable service and retiring on or | ||||||
11 | after August 26,
1969 is entitled to the automatic annual | ||||||
12 | increases in annuity provided under
this Section while | ||||||
13 | receiving a retirement annuity or disability retirement
| ||||||
14 | annuity from the system.
| ||||||
15 | An annuitant shall first be entitled to an initial increase | ||||||
16 | under this
Section on the January 1 next following the first | ||||||
17 | anniversary of retirement,
or January 1 of the year next | ||||||
18 | following attainment of age 61, whichever is
later. At such | ||||||
19 | time, the system shall pay an initial increase determined as
| ||||||
20 | follows or as provided in subsections (a-1) and (a-2) :
| ||||||
21 | (1) 1.5% of the originally granted retirement annuity | ||||||
22 | or disability
retirement annuity multiplied by the number | ||||||
23 | of years elapsed, if any, from the date of retirement
until | ||||||
24 | January 1, 1972, plus
| ||||||
25 | (2) 2% of the originally granted annuity multiplied by |
| |||||||
| |||||||
1 | the number of
years elapsed, if any, from the date of | ||||||
2 | retirement or January
1, 1972, whichever is later, until | ||||||
3 | January 1, 1978, plus
| ||||||
4 | (3) 3% of the originally granted annuity multiplied by | ||||||
5 | the number
of years elapsed from the date of retirement or | ||||||
6 | January 1,
1978, whichever is later, until the effective | ||||||
7 | date of the initial
increase.
| ||||||
8 | However, the initial annual increase calculated under this | ||||||
9 | Section for the
recipient of a disability retirement annuity | ||||||
10 | granted under Section 16-149.2
shall be reduced by an amount | ||||||
11 | equal to the total of all increases in that
annuity received | ||||||
12 | under Section 16-149.5 (but not exceeding 100% of the amount
of | ||||||
13 | the initial increase otherwise provided under this Section).
| ||||||
14 | Following the initial increase, automatic annual increases | ||||||
15 | in annuity shall
be payable on each January 1 thereafter during | ||||||
16 | the lifetime of the annuitant,
determined as a percentage of | ||||||
17 | the originally granted retirement annuity
or disability | ||||||
18 | retirement annuity for increases granted prior to January
1, | ||||||
19 | 1990, and calculated as a percentage of the total amount of | ||||||
20 | annuity,
including previous increases under this Section, for | ||||||
21 | increases granted on
or after January 1, 1990, as follows: 1.5% | ||||||
22 | for periods prior to January 1,
1972, 2% for periods after | ||||||
23 | December 31, 1971 and prior to January 1, 1978,
and 3% for | ||||||
24 | periods after December 31, 1977 , or as provided in subsections | ||||||
25 | (a-1) and (a-2) .
| ||||||
26 | (a-1) Notwithstanding any other provision of this Article, |
| |||||||
| |||||||
1 | for a Tier I retiree, the amount of each automatic annual | ||||||
2 | increase in retirement annuity occurring on or after the | ||||||
3 | effective date of this amendatory Act of the 98th General | ||||||
4 | Assembly shall be the lesser of $750 or 3% of the total annuity
| ||||||
5 | payable at the time of the increase, including previous | ||||||
6 | increases granted. | ||||||
7 | (a-2) Notwithstanding any other provision of this Article, | ||||||
8 | for a Tier I retiree, the monthly retirement annuity shall | ||||||
9 | first be subject to annual increases on the January 1 occurring | ||||||
10 | on or next after the attainment of age 67 or the January 1 | ||||||
11 | occurring on or next after the fifth anniversary of the annuity | ||||||
12 | start date, whichever occurs earlier. If on the effective date | ||||||
13 | of this amendatory Act of the 98th General Assembly a Tier I | ||||||
14 | retiree has already received an annual increase under this | ||||||
15 | Section but does not yet meet the new eligibility requirements | ||||||
16 | of this subsection, the annual increases already received shall | ||||||
17 | continue in force, but no additional annual increase shall be | ||||||
18 | granted until the Tier I retiree meets the new eligibility | ||||||
19 | requirements. | ||||||
20 | (a-3) Notwithstanding Section 1-103.1, subsections (a-1) | ||||||
21 | and (a-2) apply without regard to whether or not the Tier I | ||||||
22 | retiree is in active service under this Article on or after the | ||||||
23 | effective date of this amendatory Act of the 98th General | ||||||
24 | Assembly. | ||||||
25 | (b) The automatic annual increases in annuity provided | ||||||
26 | under this Section
shall not be applicable unless a member has |
| |||||||
| |||||||
1 | made contributions toward such
increases for a period | ||||||
2 | equivalent to one full year of creditable service.
If a member | ||||||
3 | contributes for service performed after August 26, 1969 but
the | ||||||
4 | member becomes an annuitant before such contributions amount to | ||||||
5 | one
full year's contributions based on the salary at the date | ||||||
6 | of retirement,
he or she may pay the necessary balance of the | ||||||
7 | contributions to the system
and be eligible for the automatic | ||||||
8 | annual increases in annuity provided under
this Section.
| ||||||
9 | (c) Each member shall make contributions toward the cost of | ||||||
10 | the automatic
annual increases in annuity as provided under | ||||||
11 | Section 16-152.
| ||||||
12 | (d) An annuitant receiving a retirement annuity or | ||||||
13 | disability retirement
annuity on July 1, 1969, who subsequently | ||||||
14 | re-enters service as a teacher
is eligible for the automatic | ||||||
15 | annual increases in annuity provided under
this Section if he | ||||||
16 | or she renders at least one year of creditable service
| ||||||
17 | following the latest re-entry.
| ||||||
18 | (e) In addition to the automatic annual increases in | ||||||
19 | annuity provided
under this Section, an annuitant who meets the | ||||||
20 | service requirements of this
Section and whose retirement | ||||||
21 | annuity or disability retirement annuity began
on or before | ||||||
22 | January 1, 1971 shall receive, on January 1, 1981, an increase
| ||||||
23 | in the annuity then being paid of one dollar per month for each | ||||||
24 | year of
creditable service. On January 1, 1982, an annuitant | ||||||
25 | whose retirement
annuity or disability retirement annuity | ||||||
26 | began on or before January 1, 1977
shall receive an increase in |
| |||||||
| |||||||
1 | the annuity then being paid of one dollar per
month for each | ||||||
2 | year of creditable service.
| ||||||
3 | On January 1, 1987, any annuitant whose retirement annuity | ||||||
4 | began
on or before January 1, 1977, shall receive an increase | ||||||
5 | in the monthly
retirement annuity equal to 8¢ per year of | ||||||
6 | creditable service times the
number of years that have elapsed | ||||||
7 | since the annuity began.
| ||||||
8 | (Source: P.A. 91-927, eff. 12-14-00.)
| ||||||
9 | (40 ILCS 5/16-152) (from Ch. 108 1/2, par. 16-152)
| ||||||
10 | Sec. 16-152. Contributions by members.
| ||||||
11 | (a) Each member shall make contributions for membership | ||||||
12 | service to this
System as follows:
| ||||||
13 | (1) Effective July 1, 1998, contributions of 7.50% of | ||||||
14 | salary towards the
cost of the retirement annuity. Such | ||||||
15 | contributions shall be deemed "normal
contributions".
| ||||||
16 | (2) Effective July 1, 1969, contributions of 1/2 of 1% | ||||||
17 | of salary toward
the cost of the automatic annual increase | ||||||
18 | in retirement annuity provided
under Section 16-133.1.
| ||||||
19 | (3) Effective July 24, 1959, contributions of 1% of | ||||||
20 | salary towards the
cost of survivor benefits. Such | ||||||
21 | contributions shall not be credited to
the individual | ||||||
22 | account of the member and shall not be subject to refund
| ||||||
23 | except as provided under Section 16-143.2.
| ||||||
24 | (4) Effective July 1, 2005, contributions of 0.40% of | ||||||
25 | salary toward the cost of the early retirement without |
| |||||||
| |||||||
1 | discount option provided under Section 16-133.2. This | ||||||
2 | contribution shall cease upon termination of the early | ||||||
3 | retirement without discount option as provided in Section | ||||||
4 | 16-176.
| ||||||
5 | (a-5) In addition to the contributions otherwise required | ||||||
6 | under this Article, each Tier I member shall also make the | ||||||
7 | following contributions toward the cost of the retirement | ||||||
8 | annuity from each payment
of salary: | ||||||
9 | (1) beginning July 1, 2013 and through June 30, 2014, | ||||||
10 | 1% of salary; and | ||||||
11 | (2) beginning on July 1, 2014, 2% of salary. | ||||||
12 | Except as otherwise specified, these contributions are to | ||||||
13 | be considered as normal contributions for purposes
of this | ||||||
14 | Article. | ||||||
15 | (b) The minimum required contribution for any year of | ||||||
16 | full-time
teaching service shall be $192.
| ||||||
17 | (c) Contributions shall not be required of any annuitant | ||||||
18 | receiving
a retirement annuity who is given employment as | ||||||
19 | permitted under Section 16-118 or 16-150.1.
| ||||||
20 | (d) A person who (i) was a member before July 1, 1998, (ii) | ||||||
21 | retires with
more than 34 years of creditable service, and | ||||||
22 | (iii) does not elect to qualify
for the augmented rate under | ||||||
23 | Section 16-129.1 shall be entitled, at the time
of retirement, | ||||||
24 | to receive a partial refund of contributions made under this
| ||||||
25 | Section for service occurring after the later of June 30, 1998 | ||||||
26 | or attainment
of 34 years of creditable service, in an amount |
| |||||||
| |||||||
1 | equal to 1.00% of the salary
upon which those contributions | ||||||
2 | were based.
| ||||||
3 | (e) A member's contributions toward the cost of early | ||||||
4 | retirement without discount made under item (a)(4) of this | ||||||
5 | Section shall not be refunded if the member has elected early | ||||||
6 | retirement without discount under Section 16-133.2 and has | ||||||
7 | begun to receive a retirement annuity under this Article | ||||||
8 | calculated in accordance with that election. Otherwise, a | ||||||
9 | member's contributions toward the cost of early retirement | ||||||
10 | without discount made under item (a)(4) of this Section shall | ||||||
11 | be refunded according to whichever one of the following | ||||||
12 | circumstances occurs first: | ||||||
13 | (1) The contributions shall be refunded to the member, | ||||||
14 | without interest, within 120 days after the member's | ||||||
15 | retirement annuity commences, if the member does not elect | ||||||
16 | early retirement without discount under Section 16-133.2. | ||||||
17 | (2) The contributions shall be included, without | ||||||
18 | interest, in any refund claimed by the member under Section | ||||||
19 | 16-151. | ||||||
20 | (3) The contributions shall be refunded to the member's | ||||||
21 | designated beneficiary (or if there is no beneficiary, to | ||||||
22 | the member's estate), without interest, if the member dies | ||||||
23 | without having begun to receive a retirement annuity under | ||||||
24 | this Article. | ||||||
25 | (4) The contributions shall be refunded to the member, | ||||||
26 | without interest, within 120 days after the early |
| |||||||
| |||||||
1 | retirement without discount option provided under Section | ||||||
2 | 16-133.2 is terminated under Section 16-176.
| ||||||
3 | (Source: P.A. 93-320, eff. 7-23-03; 94-4, eff. 6-1-05.)
| ||||||
4 | (40 ILCS 5/16-158)
(from Ch. 108 1/2, par. 16-158)
| ||||||
5 | Sec. 16-158. Contributions by State and other employing | ||||||
6 | units ; funding guarantee .
| ||||||
7 | (a) The State shall make contributions to the System by | ||||||
8 | means of
appropriations from the Common School Fund and other | ||||||
9 | State funds of amounts
which, together with other employer | ||||||
10 | contributions, employee contributions,
investment income, and | ||||||
11 | other income, will be sufficient to meet the cost of
| ||||||
12 | maintaining and administering the System on a 100% 90% funded | ||||||
13 | basis in accordance
with actuarial recommendations by the end | ||||||
14 | of State fiscal year 2043 .
| ||||||
15 | Beginning with State fiscal year 2014, the State's required | ||||||
16 | contributions to the System under subsection (b-3) shall be | ||||||
17 | limited to the amounts required to amortize the total cost of | ||||||
18 | the benefits of the System arising before July 1, 2013. The | ||||||
19 | State shall also pay any employer contributions required from | ||||||
20 | the State as the actual employer of participants under this | ||||||
21 | Article and any contribution required under subsection (b-20). | ||||||
22 | The Board shall determine the amount of State and employer | ||||||
23 | contributions required for
each fiscal year on the basis of the | ||||||
24 | actuarial tables and other assumptions
adopted by the Board and | ||||||
25 | the recommendations of the actuary, using the formulas provided |
| |||||||
| |||||||
1 | in this Section formula
in subsection (b-3) .
| ||||||
2 | (a-1) Annually, on or before November 15 through until | ||||||
3 | November 15, 2011, the Board shall certify to the
Governor the | ||||||
4 | amount of the required State contribution for the coming fiscal
| ||||||
5 | year. The certification under this subsection (a-1) shall | ||||||
6 | include a copy of the actuarial recommendations
upon which it | ||||||
7 | is based and shall specifically identify the System's projected | ||||||
8 | State normal cost for that fiscal year .
| ||||||
9 | On or before May 1, 2004, the Board shall recalculate and | ||||||
10 | recertify to
the Governor the amount of the required State | ||||||
11 | contribution to the System for
State fiscal year 2005, taking | ||||||
12 | into account the amounts appropriated to and
received by the | ||||||
13 | System under subsection (d) of Section 7.2 of the General
| ||||||
14 | Obligation Bond Act.
| ||||||
15 | On or before July 1, 2005, the Board shall recalculate and | ||||||
16 | recertify
to the Governor the amount of the required State
| ||||||
17 | contribution to the System for State fiscal year 2006, taking | ||||||
18 | into account the changes in required State contributions made | ||||||
19 | by this amendatory Act of the 94th General Assembly.
| ||||||
20 | On or before April 1, 2011, the Board shall recalculate and | ||||||
21 | recertify to the Governor the amount of the required State | ||||||
22 | contribution to the System for State fiscal year 2011, applying | ||||||
23 | the changes made by Public Act 96-889 to the System's assets | ||||||
24 | and liabilities as of June 30, 2009 as though Public Act 96-889 | ||||||
25 | was approved on that date. | ||||||
26 | On or before July 1, 2013, the Board shall, if necessary, |
| |||||||
| |||||||
1 | recalculate and recertify
to the Governor the amount of the | ||||||
2 | required State
contribution to the System for State fiscal year | ||||||
3 | 2014, taking into account the changes in required State | ||||||
4 | contributions made by this amendatory Act of the 98th General | ||||||
5 | Assembly. | ||||||
6 | (a-5) On or before November 1 of each year, beginning | ||||||
7 | November 1, 2012, the Board shall submit to the State Actuary, | ||||||
8 | the Governor, and the General Assembly a proposed certification | ||||||
9 | of the amount of the required State contribution to the System | ||||||
10 | for the next fiscal year, along with all of the actuarial | ||||||
11 | assumptions, calculations, and data upon which that proposed | ||||||
12 | certification is based. On or before January 1 of each year, | ||||||
13 | beginning January 1, 2013, the State Actuary shall issue a | ||||||
14 | preliminary report concerning the proposed certification and | ||||||
15 | identifying, if necessary, recommended changes in actuarial | ||||||
16 | assumptions that the Board must consider before finalizing its | ||||||
17 | certification of the required State contributions. | ||||||
18 | On or before January 15, 2013 and each January 15 | ||||||
19 | thereafter, the Board shall certify to the Governor and the | ||||||
20 | General Assembly the amount of the required State contribution | ||||||
21 | for the next fiscal year. The certification shall include a | ||||||
22 | copy of the actuarial
recommendations upon which it is based | ||||||
23 | and shall specifically identify the System's projected State | ||||||
24 | normal cost for that fiscal year. The Board's certification | ||||||
25 | must note any deviations from the State Actuary's recommended | ||||||
26 | changes, the reason or reasons for not following the State |
| |||||||
| |||||||
1 | Actuary's recommended changes, and the fiscal impact of not | ||||||
2 | following the State Actuary's recommended changes on the | ||||||
3 | required State contribution. | ||||||
4 | (b) Through State fiscal year 1995, the State contributions | ||||||
5 | shall be
paid to the System in accordance with Section 18-7 of | ||||||
6 | the School Code.
| ||||||
7 | (b-1) Beginning in State fiscal year 1996, on the 15th day | ||||||
8 | of each month,
or as soon thereafter as may be practicable, the | ||||||
9 | Board shall submit vouchers
for payment of State contributions | ||||||
10 | to the System, in a total monthly amount of
one-twelfth of the | ||||||
11 | required annual State contribution certified under
subsection | ||||||
12 | (a-1).
From the
effective date of this amendatory Act of the | ||||||
13 | 93rd General Assembly
through June 30, 2004, the Board shall | ||||||
14 | not submit vouchers for the
remainder of fiscal year 2004 in | ||||||
15 | excess of the fiscal year 2004
certified contribution amount | ||||||
16 | determined under this Section
after taking into consideration | ||||||
17 | the transfer to the System
under subsection (a) of Section | ||||||
18 | 6z-61 of the State Finance Act.
These vouchers shall be paid by | ||||||
19 | the State Comptroller and
Treasurer by warrants drawn on the | ||||||
20 | funds appropriated to the System for that
fiscal year.
| ||||||
21 | If in any month the amount remaining unexpended from all | ||||||
22 | other appropriations
to the System for the applicable fiscal | ||||||
23 | year (including the appropriations to
the System under Section | ||||||
24 | 8.12 of the State Finance Act and Section 1 of the
State | ||||||
25 | Pension Funds Continuing Appropriation Act) is less than the | ||||||
26 | amount
lawfully vouchered under this subsection, the |
| |||||||
| |||||||
1 | difference shall be paid from the
Common School Fund under the | ||||||
2 | continuing appropriation authority provided in
Section 1.1 of | ||||||
3 | the State Pension Funds Continuing Appropriation Act.
| ||||||
4 | (b-2) Allocations from the Common School Fund apportioned | ||||||
5 | to school
districts not coming under this System shall not be | ||||||
6 | diminished or affected by
the provisions of this Article.
| ||||||
7 | (b-3) For State fiscal years 2014 through 2043, the minimum | ||||||
8 | contribution to the System to be made by the State under this | ||||||
9 | subsection (b-3) for each fiscal year shall be an amount | ||||||
10 | determined by the Board to be sufficient to amortize the | ||||||
11 | unfunded accrued liability that is attributable to benefits | ||||||
12 | that accrued before July 1, 2013 as a level percentage of | ||||||
13 | payroll over the years remaining to and including fiscal year | ||||||
14 | 2043, determined under the projected unit credit actuarial cost | ||||||
15 | method. | ||||||
16 | For State fiscal year 2044 and thereafter, the minimum | ||||||
17 | contribution to the System to be made by the State under this | ||||||
18 | subsection (b-3) for each fiscal year shall be an amount | ||||||
19 | determined by the Board to be sufficient to amortize, over a | ||||||
20 | 30-year rolling amortization period, any unfunded liability | ||||||
21 | arising on or after July 1, 2043 that is attributable to | ||||||
22 | benefits that accrued before July 1, 2013. | ||||||
23 | For State fiscal years 2012 and 2013 through 2045 , the | ||||||
24 | minimum contribution
to the System to be made by the State for | ||||||
25 | each fiscal year shall be an amount
determined by the System to | ||||||
26 | be sufficient to bring the total assets of the
System up to 90% |
| |||||||
| |||||||
1 | of the total actuarial liabilities of the System by the end of
| ||||||
2 | State fiscal year 2045. In making these determinations, the | ||||||
3 | required State
contribution shall be calculated each year as a | ||||||
4 | level percentage of payroll
over the years remaining to and | ||||||
5 | including fiscal year 2045 and shall be
determined under the | ||||||
6 | projected unit credit actuarial cost method.
| ||||||
7 | For State fiscal years 1996 through 2005, the State | ||||||
8 | contribution to the
System, as a percentage of the applicable | ||||||
9 | employee payroll, shall be increased
in equal annual increments | ||||||
10 | so that by State fiscal year 2011, the State is
contributing at | ||||||
11 | the rate required under this Section; except that in the
| ||||||
12 | following specified State fiscal years, the State contribution | ||||||
13 | to the System
shall not be less than the following indicated | ||||||
14 | percentages of the applicable
employee payroll, even if the | ||||||
15 | indicated percentage will produce a State
contribution in | ||||||
16 | excess of the amount otherwise required under this subsection
| ||||||
17 | and subsection (a), and notwithstanding any contrary | ||||||
18 | certification made under
subsection (a-1) before the effective | ||||||
19 | date of this amendatory Act of 1998:
10.02% in FY 1999;
10.77% | ||||||
20 | in FY 2000;
11.47% in FY 2001;
12.16% in FY 2002;
12.86% in FY | ||||||
21 | 2003; and
13.56% in FY 2004.
| ||||||
22 | Notwithstanding any other provision of this Article, the | ||||||
23 | total required State
contribution for State fiscal year 2006 is | ||||||
24 | $534,627,700.
| ||||||
25 | Notwithstanding any other provision of this Article, the | ||||||
26 | total required State
contribution for State fiscal year 2007 is |
| |||||||
| |||||||
1 | $738,014,500.
| ||||||
2 | For each of State fiscal years 2008 through 2009, the State | ||||||
3 | contribution to
the System, as a percentage of the applicable | ||||||
4 | employee payroll, shall be
increased in equal annual increments | ||||||
5 | from the required State contribution for State fiscal year | ||||||
6 | 2007, so that by State fiscal year 2011, the
State is | ||||||
7 | contributing at the rate otherwise required under this Section.
| ||||||
8 | Notwithstanding any other provision of this Article, the | ||||||
9 | total required State contribution for State fiscal year 2010 is | ||||||
10 | $2,089,268,000 and shall be made from the proceeds of bonds | ||||||
11 | sold in fiscal year 2010 pursuant to Section 7.2 of the General | ||||||
12 | Obligation Bond Act, less (i) the pro rata share of bond sale | ||||||
13 | expenses determined by the System's share of total bond | ||||||
14 | proceeds, (ii) any amounts received from the Common School Fund | ||||||
15 | in fiscal year 2010, and (iii) any reduction in bond proceeds | ||||||
16 | due to the issuance of discounted bonds, if applicable. | ||||||
17 | Notwithstanding any other provision of this Article, the
| ||||||
18 | total required State contribution for State fiscal year 2011 is
| ||||||
19 | the amount recertified by the System on or before April 1, 2011 | ||||||
20 | pursuant to subsection (a-1) of this Section and shall be made | ||||||
21 | from the proceeds of bonds
sold in fiscal year 2011 pursuant to | ||||||
22 | Section 7.2 of the General
Obligation Bond Act, less (i) the | ||||||
23 | pro rata share of bond sale
expenses determined by the System's | ||||||
24 | share of total bond
proceeds, (ii) any amounts received from | ||||||
25 | the Common School Fund
in fiscal year 2011, and (iii) any | ||||||
26 | reduction in bond proceeds
due to the issuance of discounted |
| |||||||
| |||||||
1 | bonds, if applicable. This amount shall include, in addition to | ||||||
2 | the amount certified by the System, an amount necessary to meet | ||||||
3 | employer contributions required by the State as an employer | ||||||
4 | under paragraph (e) of this Section, which may also be used by | ||||||
5 | the System for contributions required by paragraph (a) of | ||||||
6 | Section 16-127. | ||||||
7 | Beginning in State fiscal year 2046, the minimum State | ||||||
8 | contribution for
each fiscal year shall be the amount needed to | ||||||
9 | maintain the total assets of
the System at 90% of the total | ||||||
10 | actuarial liabilities of the System.
| ||||||
11 | Amounts received by the System pursuant to Section 25 of | ||||||
12 | the Budget Stabilization Act or Section 8.12 of the State | ||||||
13 | Finance Act in any fiscal year do not reduce and do not | ||||||
14 | constitute payment of any portion of the minimum State | ||||||
15 | contribution required under this Article in that fiscal year. | ||||||
16 | Such amounts shall not reduce, and shall not be included in the | ||||||
17 | calculation of, the required State contributions under this | ||||||
18 | Article in any future year until the System has reached a | ||||||
19 | funding ratio of at least 100% 90% . A reference in this Article | ||||||
20 | to the "required State contribution" or any substantially | ||||||
21 | similar term does not include or apply to any amounts payable | ||||||
22 | to the System under Section 25 of the Budget Stabilization Act. | ||||||
23 | Notwithstanding any other provision of this Section, the | ||||||
24 | required State
contribution for State fiscal year 2005 and for | ||||||
25 | fiscal year 2008 and each fiscal year thereafter through State | ||||||
26 | fiscal year 2013 , as
calculated under this Section and
|
| |||||||
| |||||||
1 | certified under subsection (a-1), shall not exceed an amount | ||||||
2 | equal to (i) the
amount of the required State contribution that | ||||||
3 | would have been calculated under
this Section for that fiscal | ||||||
4 | year if the System had not received any payments
under | ||||||
5 | subsection (d) of Section 7.2 of the General Obligation Bond | ||||||
6 | Act, minus
(ii) the portion of the State's total debt service | ||||||
7 | payments for that fiscal
year on the bonds issued in fiscal | ||||||
8 | year 2003 for the purposes of that Section 7.2, as determined
| ||||||
9 | and certified by the Comptroller, that is the same as the | ||||||
10 | System's portion of
the total moneys distributed under | ||||||
11 | subsection (d) of Section 7.2 of the General
Obligation Bond | ||||||
12 | Act. In determining this maximum for State fiscal years 2008 | ||||||
13 | through 2010, however, the amount referred to in item (i) shall | ||||||
14 | be increased, as a percentage of the applicable employee | ||||||
15 | payroll, in equal increments calculated from the sum of the | ||||||
16 | required State contribution for State fiscal year 2007 plus the | ||||||
17 | applicable portion of the State's total debt service payments | ||||||
18 | for fiscal year 2007 on the bonds issued in fiscal year 2003 | ||||||
19 | for the purposes of Section 7.2 of the General
Obligation Bond | ||||||
20 | Act, so that, by State fiscal year 2011, the
State is | ||||||
21 | contributing at the rate otherwise required under this Section.
| ||||||
22 | (b-10) Subject to the limitations provided in subsection | ||||||
23 | (b-15), beginning with State fiscal year 2014, the minimum | ||||||
24 | required contribution of each employer under this Article shall | ||||||
25 | be sufficient to produce an annual amount equal to: | ||||||
26 | (i) the employer's normal cost for that fiscal year, |
| |||||||
| |||||||
1 | exclusive of the employer's normal cost that arises from | ||||||
2 | optional employer contributions agreed to by that employer | ||||||
3 | for that fiscal year under Section 1-161; plus | ||||||
4 | (ii) the employer's normal cost for that fiscal year | ||||||
5 | that arises from optional employer contributions agreed to | ||||||
6 | by that employer for that fiscal year under Section 1-161; | ||||||
7 | plus | ||||||
8 | (iii) the amount required for that fiscal year to | ||||||
9 | amortize that employer's portion of the unfunded accrued | ||||||
10 | liability associated with the cost of benefits accrued on | ||||||
11 | or after July 1, 2013 as a level percentage of payroll over | ||||||
12 | a 30-year rolling amortization period, as determined for | ||||||
13 | each employer by the Board. | ||||||
14 | Each employer under this Article shall make these | ||||||
15 | contributions in the amounts determined and the manner | ||||||
16 | prescribed from time to time by the Board. | ||||||
17 | (b-15) The System shall determine the employer's normal | ||||||
18 | cost under item (i) of subsection (b-10) as a percentage of | ||||||
19 | projected payroll applicable to all employers, based on | ||||||
20 | actuarial assumptions applicable to the System as a whole. The | ||||||
21 | required employer contribution under item (i) in a fiscal year | ||||||
22 | shall not exceed a percentage of payroll determined by | ||||||
23 | subtracting 2013 from the applicable fiscal year and | ||||||
24 | multiplying the result by 0.5%. | ||||||
25 | The System shall determine the employer's normal cost under | ||||||
26 | item (ii) of subsection (b-10) as an additional percentage of |
| |||||||
| |||||||
1 | projected payroll payable by a specific employer, based on the | ||||||
2 | optional employer contributions agreed to by that employer for | ||||||
3 | that fiscal year under Section 1-161 and the actuarial | ||||||
4 | assumptions applicable to the System as a whole. | ||||||
5 | The System shall determine the employer's portion of the | ||||||
6 | unfunded accrued liability under item (iii) of subsection | ||||||
7 | (b-10) separately for each employer, as a percentage of that | ||||||
8 | employer's projected payroll, based on the liabilities | ||||||
9 | attributable to that employer and the actuarial assumptions | ||||||
10 | applicable to the System as a whole. | ||||||
11 | For use in determining the employer's contribution for | ||||||
12 | unfunded accrued liability under item (iii), the System shall | ||||||
13 | maintain a separate account for each employer. The separate | ||||||
14 | account shall be maintained in such form and detail as the | ||||||
15 | System determines to be appropriate. The separate account shall | ||||||
16 | reflect the following items to the extent that they are | ||||||
17 | attributable to that employer and arise on or after July 1, | ||||||
18 | 2013: employer contributions, State contributions under | ||||||
19 | subsection (b-20), employee contributions, investment returns, | ||||||
20 | payments of benefits, and that employer's proportionate share | ||||||
21 | of the System's administrative expenses. | ||||||
22 | In the event that the Board determines that there is a | ||||||
23 | deficiency or surplus in the account of an employer with | ||||||
24 | respect to the projected liabilities attributable to that | ||||||
25 | employer arising on or after July 1, 2013, the Board shall | ||||||
26 | determine the employer's contribution rate under item (iii) of |
| |||||||
| |||||||
1 | subsection (b-10) so as to address that deficiency or surplus | ||||||
2 | over a reasonable period of time as determined by the Board. | ||||||
3 | (b-20) Beginning in State fiscal year 2014, for any fiscal | ||||||
4 | year in which (1) the System's normal cost for all employers | ||||||
5 | for that fiscal year, exclusive of the normal cost that arises | ||||||
6 | from optional employer contributions agreed to by employers for | ||||||
7 | that fiscal year under Section 1-161, exceeds (2) the total | ||||||
8 | contribution calculated under item (i) of subsection (b-10) for | ||||||
9 | all employers for that fiscal year, the State shall make an | ||||||
10 | additional contribution to the System for that fiscal year | ||||||
11 | equal to the difference. | ||||||
12 | The State contribution under this subsection (b-20) is in | ||||||
13 | addition to the State contributions required under subsection | ||||||
14 | (b-1) and any contributions required to be paid by the State as | ||||||
15 | an employer under subsection (b-10) of this Section. | ||||||
16 | (c) Payment of the required State contributions and of all | ||||||
17 | pensions,
retirement annuities, death benefits, refunds, and | ||||||
18 | other benefits granted
under or assumed by this System, and all | ||||||
19 | expenses in connection with the
administration and operation | ||||||
20 | thereof, are obligations of the State.
| ||||||
21 | If members are paid from special trust or federal funds | ||||||
22 | which are
administered by the employing unit, whether school | ||||||
23 | district or other
unit, the employing unit shall pay to the | ||||||
24 | System from such
funds the full accruing retirement costs based | ||||||
25 | upon that
service, as determined by the System. Employer | ||||||
26 | contributions, based on
salary paid to members from federal |
| |||||||
| |||||||
1 | funds, may be forwarded by the distributing
agency of the State | ||||||
2 | of Illinois to the System prior to allocation, in an
amount | ||||||
3 | determined in accordance with guidelines established by such
| ||||||
4 | agency and the System.
| ||||||
5 | (d) Effective July 1, 1986, any employer of a teacher as | ||||||
6 | defined in
paragraph (8) of Section 16-106 shall pay the | ||||||
7 | employer's normal cost
of benefits based upon the teacher's | ||||||
8 | service, in addition to
employee contributions, as determined | ||||||
9 | by the System. Such employer
contributions shall be forwarded | ||||||
10 | monthly in accordance with guidelines
established by the | ||||||
11 | System.
| ||||||
12 | However, with respect to benefits granted under Section | ||||||
13 | 16-133.4 or
16-133.5 to a teacher as defined in paragraph (8) | ||||||
14 | of Section 16-106, the
employer's contribution shall be 12% | ||||||
15 | (rather than 20%) of the member's
highest annual salary rate | ||||||
16 | for each year of creditable service granted, and
the employer | ||||||
17 | shall also pay the required employee contribution on behalf of
| ||||||
18 | the teacher. For the purposes of Sections 16-133.4 and | ||||||
19 | 16-133.5, a teacher
as defined in paragraph (8) of Section | ||||||
20 | 16-106 who is serving in that capacity
while on leave of | ||||||
21 | absence from another employer under this Article shall not
be | ||||||
22 | considered an employee of the employer from which the teacher | ||||||
23 | is on leave.
| ||||||
24 | (e) Beginning July 1, 1998, every employer of a teacher
| ||||||
25 | shall pay to the System an employer contribution computed as | ||||||
26 | follows:
|
| |||||||
| |||||||
1 | (1) Beginning July 1, 1998 through June 30, 1999, the | ||||||
2 | employer
contribution shall be equal to 0.3% of each | ||||||
3 | teacher's salary.
| ||||||
4 | (2) Beginning July 1, 1999 and thereafter, the employer
| ||||||
5 | contribution shall be equal to 0.58% of each teacher's | ||||||
6 | salary.
| ||||||
7 | The school district or other employing unit may pay these | ||||||
8 | employer
contributions out of any source of funding available | ||||||
9 | for that purpose and
shall forward the contributions to the | ||||||
10 | System on the schedule established
for the payment of member | ||||||
11 | contributions.
| ||||||
12 | These employer contributions are intended to offset a | ||||||
13 | portion of the cost
to the System of the increases in | ||||||
14 | retirement benefits resulting from this
amendatory Act of 1998.
| ||||||
15 | Each employer of teachers is entitled to a credit against | ||||||
16 | the contributions
required under this subsection (e) with | ||||||
17 | respect to salaries paid to teachers
for the period January 1, | ||||||
18 | 2002 through June 30, 2003, equal to the amount paid
by that | ||||||
19 | employer under subsection (a-5) of Section 6.6 of the State | ||||||
20 | Employees
Group Insurance Act of 1971 with respect to salaries | ||||||
21 | paid to teachers for that
period.
| ||||||
22 | The additional 1% employee contribution required under | ||||||
23 | Section 16-152 by
this amendatory Act of 1998 is the | ||||||
24 | responsibility of the teacher and not the
teacher's employer, | ||||||
25 | unless the employer agrees, through collective bargaining
or | ||||||
26 | otherwise, to make the contribution on behalf of the teacher.
|
| |||||||
| |||||||
1 | If an employer is required by a contract in effect on May | ||||||
2 | 1, 1998 between the
employer and an employee organization to | ||||||
3 | pay, on behalf of all its full-time
employees
covered by this | ||||||
4 | Article, all mandatory employee contributions required under
| ||||||
5 | this Article, then the employer shall be excused from paying | ||||||
6 | the employer
contribution required under this subsection (e) | ||||||
7 | for the balance of the term
of that contract. The employer and | ||||||
8 | the employee organization shall jointly
certify to the System | ||||||
9 | the existence of the contractual requirement, in such
form as | ||||||
10 | the System may prescribe. This exclusion shall cease upon the
| ||||||
11 | termination, extension, or renewal of the contract at any time | ||||||
12 | after May 1,
1998.
| ||||||
13 | (f) The employer contributions under this subsection (f) | ||||||
14 | are no longer required after June 30, 2013. | ||||||
15 | If the amount of a teacher's salary for any school year | ||||||
16 | used to determine final average salary exceeds the member's | ||||||
17 | annual full-time salary rate with the same employer for the | ||||||
18 | previous school year by more than 6%, the teacher's employer | ||||||
19 | shall pay to the System, in addition to all other payments | ||||||
20 | required under this Section and in accordance with guidelines | ||||||
21 | established by the System, the present value of the increase in | ||||||
22 | benefits resulting from the portion of the increase in salary | ||||||
23 | that is in excess of 6%. This present value shall be computed | ||||||
24 | by the System on the basis of the actuarial assumptions and | ||||||
25 | tables used in the most recent actuarial valuation of the | ||||||
26 | System that is available at the time of the computation. If a |
| |||||||
| |||||||
1 | teacher's salary for the 2005-2006 school year is used to | ||||||
2 | determine final average salary under this subsection (f), then | ||||||
3 | the changes made to this subsection (f) by Public Act 94-1057 | ||||||
4 | shall apply in calculating whether the increase in his or her | ||||||
5 | salary is in excess of 6%. For the purposes of this Section, | ||||||
6 | change in employment under Section 10-21.12 of the School Code | ||||||
7 | on or after June 1, 2005 shall constitute a change in employer. | ||||||
8 | The System may require the employer to provide any pertinent | ||||||
9 | information or documentation.
The changes made to this | ||||||
10 | subsection (f) by this amendatory Act of the 94th General | ||||||
11 | Assembly apply without regard to whether the teacher was in | ||||||
12 | service on or after its effective date.
| ||||||
13 | Whenever it determines that a payment is or may be required | ||||||
14 | under this subsection, the System shall calculate the amount of | ||||||
15 | the payment and bill the employer for that amount. The bill | ||||||
16 | shall specify the calculations used to determine the amount | ||||||
17 | due. If the employer disputes the amount of the bill, it may, | ||||||
18 | within 30 days after receipt of the bill, apply to the System | ||||||
19 | in writing for a recalculation. The application must specify in | ||||||
20 | detail the grounds of the dispute and, if the employer asserts | ||||||
21 | that the calculation is subject to subsection (g) or (h) of | ||||||
22 | this Section, must include an affidavit setting forth and | ||||||
23 | attesting to all facts within the employer's knowledge that are | ||||||
24 | pertinent to the applicability of that subsection. Upon | ||||||
25 | receiving a timely application for recalculation, the System | ||||||
26 | shall review the application and, if appropriate, recalculate |
| |||||||
| |||||||
1 | the amount due.
| ||||||
2 | The employer contributions required under this subsection | ||||||
3 | (f) may be paid in the form of a lump sum within 90 days after | ||||||
4 | receipt of the bill. If the employer contributions are not paid | ||||||
5 | within 90 days after receipt of the bill, then interest will be | ||||||
6 | charged at a rate equal to the System's annual actuarially | ||||||
7 | assumed rate of return on investment compounded annually from | ||||||
8 | the 91st day after receipt of the bill. Payments must be | ||||||
9 | concluded within 3 years after the employer's receipt of the | ||||||
10 | bill.
| ||||||
11 | (g) This subsection (g) applies only to payments made or | ||||||
12 | salary increases given on or after June 1, 2005 but before July | ||||||
13 | 1, 2011. The changes made by Public Act 94-1057 shall not | ||||||
14 | require the System to refund any payments received before
July | ||||||
15 | 31, 2006 (the effective date of Public Act 94-1057). | ||||||
16 | When assessing payment for any amount due under subsection | ||||||
17 | (f), the System shall exclude salary increases paid to teachers | ||||||
18 | under contracts or collective bargaining agreements entered | ||||||
19 | into, amended, or renewed before June 1, 2005.
| ||||||
20 | When assessing payment for any amount due under subsection | ||||||
21 | (f), the System shall exclude salary increases paid to a | ||||||
22 | teacher at a time when the teacher is 10 or more years from | ||||||
23 | retirement eligibility under Section 16-132 or 16-133.2.
| ||||||
24 | When assessing payment for any amount due under subsection | ||||||
25 | (f), the System shall exclude salary increases resulting from | ||||||
26 | overload work, including summer school, when the school |
| |||||||
| |||||||
1 | district has certified to the System, and the System has | ||||||
2 | approved the certification, that (i) the overload work is for | ||||||
3 | the sole purpose of classroom instruction in excess of the | ||||||
4 | standard number of classes for a full-time teacher in a school | ||||||
5 | district during a school year and (ii) the salary increases are | ||||||
6 | equal to or less than the rate of pay for classroom instruction | ||||||
7 | computed on the teacher's current salary and work schedule.
| ||||||
8 | When assessing payment for any amount due under subsection | ||||||
9 | (f), the System shall exclude a salary increase resulting from | ||||||
10 | a promotion (i) for which the employee is required to hold a | ||||||
11 | certificate or supervisory endorsement issued by the State | ||||||
12 | Teacher Certification Board that is a different certification | ||||||
13 | or supervisory endorsement than is required for the teacher's | ||||||
14 | previous position and (ii) to a position that has existed and | ||||||
15 | been filled by a member for no less than one complete academic | ||||||
16 | year and the salary increase from the promotion is an increase | ||||||
17 | that results in an amount no greater than the lesser of the | ||||||
18 | average salary paid for other similar positions in the district | ||||||
19 | requiring the same certification or the amount stipulated in | ||||||
20 | the collective bargaining agreement for a similar position | ||||||
21 | requiring the same certification.
| ||||||
22 | When assessing payment for any amount due under subsection | ||||||
23 | (f), the System shall exclude any payment to the teacher from | ||||||
24 | the State of Illinois or the State Board of Education over | ||||||
25 | which the employer does not have discretion, notwithstanding | ||||||
26 | that the payment is included in the computation of final |
| |||||||
| |||||||
1 | average salary.
| ||||||
2 | (h) When assessing payment for any amount due under | ||||||
3 | subsection (f), the System shall exclude any salary increase | ||||||
4 | described in subsection (g) of this Section given on or after | ||||||
5 | July 1, 2011 but before July 1, 2014 under a contract or | ||||||
6 | collective bargaining agreement entered into, amended, or | ||||||
7 | renewed on or after June 1, 2005 but before July 1, 2011. | ||||||
8 | Notwithstanding any other provision of this Section, any | ||||||
9 | payments made or salary increases given after June 30, 2014 | ||||||
10 | shall be used in assessing payment for any amount due under | ||||||
11 | subsection (f) of this Section.
| ||||||
12 | (i) The System shall prepare a report and file copies of | ||||||
13 | the report with the Governor and the General Assembly by | ||||||
14 | January 1, 2007 that contains all of the following information: | ||||||
15 | (1) The number of recalculations required by the | ||||||
16 | changes made to this Section by Public Act 94-1057 for each | ||||||
17 | employer. | ||||||
18 | (2) The dollar amount by which each employer's | ||||||
19 | contribution to the System was changed due to | ||||||
20 | recalculations required by Public Act 94-1057. | ||||||
21 | (3) The total amount the System received from each | ||||||
22 | employer as a result of the changes made to this Section by | ||||||
23 | Public Act 94-4. | ||||||
24 | (4) The increase in the required State contribution | ||||||
25 | resulting from the changes made to this Section by Public | ||||||
26 | Act 94-1057.
|
| |||||||
| |||||||
1 | (j) For purposes of determining the required State | ||||||
2 | contribution to the System, the value of the System's assets | ||||||
3 | shall be equal to the actuarial value of the System's assets, | ||||||
4 | which shall be calculated as follows: | ||||||
5 | As of June 30, 2008, the actuarial value of the System's | ||||||
6 | assets shall be equal to the market value of the assets as of | ||||||
7 | that date. In determining the actuarial value of the System's | ||||||
8 | assets for fiscal years after June 30, 2008, any actuarial | ||||||
9 | gains or losses from investment return incurred in a fiscal | ||||||
10 | year shall be recognized in equal annual amounts over the | ||||||
11 | 5-year period following that fiscal year. | ||||||
12 | (k) For purposes of determining the required State | ||||||
13 | contribution to the system for a particular year, the actuarial | ||||||
14 | value of assets shall be assumed to earn a rate of return equal | ||||||
15 | to the system's actuarially assumed rate of return. | ||||||
16 | (Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11; | ||||||
17 | 96-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-694, eff. | ||||||
18 | 6-18-12; 97-813, eff. 7-13-12.)
| ||||||
19 | (40 ILCS 5/16-158.1) (from Ch. 108 1/2, par. 16-158.1)
| ||||||
20 | Sec. 16-158.1. Actions to enforce payments by school | ||||||
21 | districts and
other employing units other than the State . Any | ||||||
22 | school district or other
employing unit , other than the State, | ||||||
23 | that fails failing to transmit to the System contributions | ||||||
24 | required of
it under this Article or contributions required of | ||||||
25 | teachers, for more
than 90 days after such contributions are |
| |||||||
| |||||||
1 | due is subject to the following:
after giving notice to the | ||||||
2 | district or other unit, the System may certify
to the State | ||||||
3 | Comptroller or the Regional Superintendent of Schools the
| ||||||
4 | amounts of such delinquent payments and the State Comptroller | ||||||
5 | or the
Regional Superintendent of Schools shall deduct the | ||||||
6 | amounts so certified
or any part thereof from any State funds | ||||||
7 | to be remitted
to the school district or other employing unit | ||||||
8 | involved and shall
pay the amount so deducted to the System. If | ||||||
9 | State funds from which
such deductions may be made are not | ||||||
10 | available, the System may proceed
against the school district | ||||||
11 | or other employing unit to recover the
amounts of such | ||||||
12 | delinquent payments in the appropriate circuit court.
| ||||||
13 | The System may provide for an
audit of the records of a | ||||||
14 | school district or other employing unit , other than the State, | ||||||
15 | as
may be required to establish the amounts of required | ||||||
16 | contributions.
The school district or other employing unit | ||||||
17 | shall make its records
available to the System for the purpose | ||||||
18 | of such audit. The cost of such
audit shall be added to the | ||||||
19 | amount of the delinquent payments and shall
be recovered by the | ||||||
20 | System from the school district or other employing
unit at the | ||||||
21 | same time and in the same manner as the delinquent payments
are | ||||||
22 | recovered.
| ||||||
23 | (Source: P.A. 90-448, eff. 8-16-97.)
| ||||||
24 | (40 ILCS 5/16-158.2 new) | ||||||
25 | Sec. 16-158.2. Obligations of State; funding guarantee. |
| |||||||
| |||||||
1 | Beginning July 1, 2013, the State shall be contractually | ||||||
2 | obligated to contribute to the System under Section 16-158 in | ||||||
3 | each State fiscal year an amount not less than the sum of (i) | ||||||
4 | the State's required contribution under subsections (b-10) and | ||||||
5 | (b-20) of Section 16-158 and
(ii) the portion of the total cost | ||||||
6 | of the benefits of the System arising before July 1, 2013 | ||||||
7 | assigned to that State fiscal year by law in accordance with a | ||||||
8 | schedule that distributes payments equitably over a reasonable | ||||||
9 | period of time and in accordance with accepted actuarial | ||||||
10 | practices. The obligations created under this subsection (b) | ||||||
11 | are contractual obligations protected and enforceable under | ||||||
12 | Article I, Section 16 and Article XIII, Section 5 of the | ||||||
13 | Illinois Constitution. | ||||||
14 | Notwithstanding any other provision of law, if the State | ||||||
15 | fails to pay in a State fiscal year the amount guaranteed under | ||||||
16 | this subsection, the System may bring a mandamus action in the | ||||||
17 | circuit court of Sangamon County to compel the State to make | ||||||
18 | that payment, irrespective of other remedies that
may be | ||||||
19 | available to the System. In ordering the State to make the | ||||||
20 | required payment, the court may order a reasonable payment | ||||||
21 | schedule to enable the State to make the required payment | ||||||
22 | without significantly imperiling the public health, safety, or | ||||||
23 | welfare. | ||||||
24 | Any payments required to be made by the State pursuant to | ||||||
25 | this Section are expressly subordinated to the payment of the | ||||||
26 | principal, interest, and premium, if any, on any
bonded debt |
| |||||||
| |||||||
1 | obligation of the State or any other State-created entity, | ||||||
2 | either currently outstanding or to
be issued, for which the | ||||||
3 | source of repayment or security thereon is derived directly or | ||||||
4 | indirectly from
tax revenues collected by the State or any | ||||||
5 | other State-created entity. Payments on such bonded
| ||||||
6 | obligations include any statutory fund transfers or other | ||||||
7 | prefunding mechanisms or formulas set forth,
now or hereafter, | ||||||
8 | in State law or bond indentures, into debt service funds or | ||||||
9 | accounts of the State
related to such bonded obligations, | ||||||
10 | consistent with the payment schedules associated with such
| ||||||
11 | obligations. | ||||||
12 | (40 ILCS 5/16-203)
| ||||||
13 | Sec. 16-203. Application and expiration of new benefit | ||||||
14 | increases. | ||||||
15 | (a) As used in this Section, "new benefit increase" means | ||||||
16 | an increase in the amount of any benefit provided under this | ||||||
17 | Article, or an expansion of the conditions of eligibility for | ||||||
18 | any benefit under this Article, that results from an amendment | ||||||
19 | to this Code that takes effect after June 1, 2005 (the | ||||||
20 | effective date of Public Act 94-4). "New benefit increase", | ||||||
21 | however, does not include any benefit increase resulting from | ||||||
22 | the changes made to this Article or Article 1 by Public Act | ||||||
23 | 95-910 or this amendatory Act of the 98th 95th General | ||||||
24 | Assembly. | ||||||
25 | (b) Notwithstanding any other provision of this Code or any |
| |||||||
| |||||||
1 | subsequent amendment to this Code, every new benefit increase | ||||||
2 | is subject to this Section and shall be deemed to be granted | ||||||
3 | only in conformance with and contingent upon compliance with | ||||||
4 | the provisions of this Section.
| ||||||
5 | (c) The Public Act enacting a new benefit increase must | ||||||
6 | identify and provide for payment to the System of additional | ||||||
7 | funding at least sufficient to fund the resulting annual | ||||||
8 | increase in cost to the System as it accrues. | ||||||
9 | Every new benefit increase is contingent upon the General | ||||||
10 | Assembly providing the additional funding required under this | ||||||
11 | subsection. The Commission on Government Forecasting and | ||||||
12 | Accountability shall analyze whether adequate additional | ||||||
13 | funding has been provided for the new benefit increase and | ||||||
14 | shall report its analysis to the Public Pension Division of the | ||||||
15 | Department of Financial and Professional Regulation. A new | ||||||
16 | benefit increase created by a Public Act that does not include | ||||||
17 | the additional funding required under this subsection is null | ||||||
18 | and void. If the Public Pension Division determines that the | ||||||
19 | additional funding provided for a new benefit increase under | ||||||
20 | this subsection is or has become inadequate, it may so certify | ||||||
21 | to the Governor and the State Comptroller and, in the absence | ||||||
22 | of corrective action by the General Assembly, the new benefit | ||||||
23 | increase shall expire at the end of the fiscal year in which | ||||||
24 | the certification is made.
| ||||||
25 | (d) Every new benefit increase shall expire 5 years after | ||||||
26 | its effective date or on such earlier date as may be specified |
| |||||||
| |||||||
1 | in the language enacting the new benefit increase or provided | ||||||
2 | under subsection (c). This does not prevent the General | ||||||
3 | Assembly from extending or re-creating a new benefit increase | ||||||
4 | by law. | ||||||
5 | (e) Except as otherwise provided in the language creating | ||||||
6 | the new benefit increase, a new benefit increase that expires | ||||||
7 | under this Section continues to apply to persons who applied | ||||||
8 | and qualified for the affected benefit while the new benefit | ||||||
9 | increase was in effect and to the affected beneficiaries and | ||||||
10 | alternate payees of such persons, but does not apply to any | ||||||
11 | other person, including without limitation a person who | ||||||
12 | continues in service after the expiration date and did not | ||||||
13 | apply and qualify for the affected benefit while the new | ||||||
14 | benefit increase was in effect.
| ||||||
15 | (Source: P.A. 94-4, eff. 6-1-05; 95-910, eff. 8-26-08.)
| ||||||
16 | (40 ILCS 5/20-121) (from Ch. 108 1/2, par. 20-121)
| ||||||
17 | Sec. 20-121. Calculation of proportional retirement | ||||||
18 | annuities. Upon
retirement of the employee, a proportional | ||||||
19 | retirement annuity shall be computed
by each participating | ||||||
20 | system in which pension credit has been established on
the | ||||||
21 | basis of pension credits under each system. The computation | ||||||
22 | shall be in
accordance with the formula or method prescribed by | ||||||
23 | each participating system
which is in effect at the date of the | ||||||
24 | employee's latest withdrawal from service
covered by any of the | ||||||
25 | systems in which he has pension credits which he elects
to have |
| |||||||
| |||||||
1 | considered under this Article. However, (1) the amount of any | ||||||
2 | retirement
annuity payable under the self-managed plan | ||||||
3 | established under Section 15-158.2
of this Code depends solely | ||||||
4 | on the value of the participant's vested account
balances and | ||||||
5 | is not subject to any proportional adjustment under this
| ||||||
6 | Section , and (2) the amount of any retirement
annuity payable | ||||||
7 | under the cash balance plan established under Section 1-161
of | ||||||
8 | this Code shall be calculated solely in accordance with that | ||||||
9 | Section and is not subject to any proportional adjustment under | ||||||
10 | this
Section .
| ||||||
11 | Combined pension credit under all retirement systems | ||||||
12 | subject to this
Article shall be considered in determining | ||||||
13 | whether the minimum qualification
has been met and the formula | ||||||
14 | or method of computation which shall be applied.
If a system | ||||||
15 | has a step-rate formula for calculation of the retirement | ||||||
16 | annuity,
pension credits covering previous service which have | ||||||
17 | been established under
another system shall be considered in | ||||||
18 | determining which range or ranges of
the step-rate formula are | ||||||
19 | to be applicable to the employee.
| ||||||
20 | Interest on pension credit shall continue to accumulate in | ||||||
21 | accordance with
the provisions of the law governing the | ||||||
22 | retirement system in which the same
has been established during | ||||||
23 | the time an employee is in the service of another
employer, on | ||||||
24 | the assumption such employee, for interest purposes for pension
| ||||||
25 | credit, is continuing in the service covered by such retirement | ||||||
26 | system.
|
| |||||||
| |||||||
1 | (Source: P.A. 91-887, eff. 7-6-00.)
| ||||||
2 | (40 ILCS 5/20-123) (from Ch. 108 1/2, par. 20-123)
| ||||||
3 | Sec. 20-123. Survivor's annuity. The provisions governing | ||||||
4 | a retirement
annuity shall be applicable to a survivor's | ||||||
5 | annuity. Appropriate credits shall
be established for | ||||||
6 | survivor's annuity purposes in those participating systems
| ||||||
7 | which provide survivor's annuities, according to the same | ||||||
8 | conditions and
subject to the same limitations and restrictions | ||||||
9 | herein prescribed for a
retirement annuity. If a participating | ||||||
10 | system has no survivor's annuity
benefit, or if the survivor's | ||||||
11 | annuity benefit under that system is waived,
pension credit | ||||||
12 | established in that system shall not be considered
in | ||||||
13 | determining eligibility for or the amount of the survivor's | ||||||
14 | annuity which
may be payable by any other participating system.
| ||||||
15 | For persons who participate in the self-managed plan | ||||||
16 | established under
Section 15-158.2 or the portable benefit | ||||||
17 | package established under Section
15-136.4, pension credit | ||||||
18 | established under Article 15 may be considered in
determining | ||||||
19 | eligibility for or the amount of the survivor's annuity that is
| ||||||
20 | payable by any other participating system, but pension credit | ||||||
21 | established in
any other system shall not result in any right | ||||||
22 | to a survivor's annuity under
the Article 15 system.
| ||||||
23 | For persons who participate in the cash balance plan | ||||||
24 | established under
Section 1-161, pension credit established | ||||||
25 | under the participating system with respect to which the person |
| |||||||
| |||||||
1 | participates in the cash balance plan may be considered in
| ||||||
2 | determining eligibility for or the amount of the survivor's | ||||||
3 | annuity that is
payable by any other participating system with | ||||||
4 | respect to which the person does not participate in the cash | ||||||
5 | balance plan, but the amount of any survivor's
annuity payable | ||||||
6 | under the cash balance plan established under Section 1-161 | ||||||
7 | shall be calculated solely in accordance with that Section. | ||||||
8 | (Source: P.A. 91-887, eff. 7-6-00.)
| ||||||
9 | (40 ILCS 5/20-124) (from Ch. 108 1/2, par. 20-124)
| ||||||
10 | Sec. 20-124. Maximum benefits. | ||||||
11 | (a) In no event shall the combined retirement
or survivors | ||||||
12 | annuities exceed the highest annuity which would have been | ||||||
13 | payable
by any participating system in which the employee has | ||||||
14 | pension credits, if all
of his pension credits had been | ||||||
15 | validated in that system.
| ||||||
16 | If the combined annuities should exceed the highest maximum | ||||||
17 | as determined
in accordance with this Section, the respective | ||||||
18 | annuities shall be reduced
proportionately according to the | ||||||
19 | ratio which the amount of each proportional
annuity bears to | ||||||
20 | the aggregate of all such annuities ; except that benefits | ||||||
21 | payable under the cash balance plan established under Section | ||||||
22 | 1-161 are not subject to
proportionate reduction under this | ||||||
23 | Section .
| ||||||
24 | (b) In the case of a participant in the self-managed plan | ||||||
25 | established under
Section 15-158.2 of this Code to whom the |
| |||||||
| |||||||
1 | provisions of this Article apply:
| ||||||
2 | (i) For purposes of calculating the combined | ||||||
3 | retirement annuity and
the proportionate reduction, if | ||||||
4 | any, in a retirement annuity other than one
payable under | ||||||
5 | the self-managed plan, the amount of the Article 15 | ||||||
6 | retirement
annuity shall be deemed to be the highest | ||||||
7 | annuity to which the annuitant would
have been entitled if | ||||||
8 | he or she had participated in the traditional benefit
| ||||||
9 | package as defined in Section 15-103.1 rather than the | ||||||
10 | self-managed plan.
| ||||||
11 | (ii) For purposes of calculating the combined | ||||||
12 | survivor's annuity and
the proportionate reduction, if | ||||||
13 | any, in a survivor's annuity other than one
payable under | ||||||
14 | the self-managed plan, the amount of the Article 15 | ||||||
15 | survivor's
annuity shall be deemed to be the highest | ||||||
16 | survivor's annuity to which the
survivor would have been | ||||||
17 | entitled if the deceased employee had participated in
the | ||||||
18 | traditional benefit package as defined in Section 15-103.1 | ||||||
19 | rather than the
self-managed plan.
| ||||||
20 | (iii) Benefits payable under the self-managed plan are | ||||||
21 | not subject to
proportionate reduction under this Section.
| ||||||
22 | (Source: P.A. 91-887, eff. 7-6-00.)
| ||||||
23 | (40 ILCS 5/20-125) (from Ch. 108 1/2, par. 20-125)
| ||||||
24 | Sec. 20-125. Return to employment - suspension of benefits. | ||||||
25 | If a retired
employee returns to employment which is covered by |
| |||||||
| |||||||
1 | a system from which he is
receiving a proportional annuity | ||||||
2 | under this Article, his proportional annuity
from all | ||||||
3 | participating systems shall be suspended during the period of
| ||||||
4 | re-employment, except that this suspension does not apply to | ||||||
5 | any
distributions payable under the self-managed plan | ||||||
6 | established under Section
15-158.2 of this Code.
| ||||||
7 | The provisions of the Article under which such employment | ||||||
8 | would be
covered (including Section 1-161 in the case of a | ||||||
9 | participant in the cash balance plan) shall govern the | ||||||
10 | determination of whether the employee has returned
to | ||||||
11 | employment, and if applicable the exemption of temporary | ||||||
12 | employment or
employment not exceeding a specified duration or | ||||||
13 | frequency, for all
participating systems from which the retired | ||||||
14 | employee is receiving a
proportional annuity under this | ||||||
15 | Article, notwithstanding any contrary
provisions in the other | ||||||
16 | Articles governing such systems.
| ||||||
17 | (Source: P.A. 91-887, eff. 7-6-00.)
| ||||||
18 | Section 90. The State Mandates Act is amended by adding | ||||||
19 | Section 8.37 as follows: | ||||||
20 | (30 ILCS 805/8.37 new) | ||||||
21 | Sec. 8.37. Exempt mandate. Notwithstanding Sections 6 and 8 | ||||||
22 | of this Act, no reimbursement by the State is required for the | ||||||
23 | implementation of any mandate created by this amendatory Act of | ||||||
24 | the 98th General Assembly. |
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1 | Section 97. Inseverability. The provisions of this Act are | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2 | inseverable. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3 | Section 99. Effective date. This Act takes effect upon | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4 | becoming law. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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