Full Text of HB2694 94th General Assembly
HB2694 94TH GENERAL ASSEMBLY
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94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006 HB2694
Introduced 2/22/2005, by Rep. Michael K. Smith SYNOPSIS AS INTRODUCED: |
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40 ILCS 5/15-112 |
from Ch. 108 1/2, par. 15-112 |
40 ILCS 5/15-113.6 |
from Ch. 108 1/2, par. 15-113.6 |
40 ILCS 5/15-113.7 |
from Ch. 108 1/2, par. 15-113.7 |
40 ILCS 5/15-136 |
from Ch. 108 1/2, par. 15-136 |
40 ILCS 5/15-139 |
from Ch. 108 1/2, par. 15-139 |
40 ILCS 5/15-154 |
from Ch. 108 1/2, par. 15-154 |
40 ILCS 5/15-158.2 |
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40 ILCS 5/15-187 |
from Ch. 108 1/2, par. 15-187 |
40 ILCS 5/15-190 |
from Ch. 108 1/2, par. 15-190 |
40 ILCS 5/15-191 |
from Ch. 108 1/2, par. 15-191 |
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Amends the State Universities Article of the Illinois Pension Code. Provides that, for an employee whose final rate of earnings period includes March 2005, the final rate of earnings means the average annual earnings during the 48 consecutive calendar month period ending with the last day of final termination of employment or the 4 consecutive academic years of service in which the employee's earnings were the highest, whichever is greater. In provisions concerning service for employment in public schools and service for other public employment, removes references to payment of 50% of the actuarial value of the increase in the retirement annuity provided by the service. In provisions concerning retirement annuities, provides that any retirement benefit accrued but unpaid on the death of an annuitant shall be paid to the annuitant's beneficiary. Makes changes concerning annuitants who return to employment for an employer. Provides that the 5 or more years of service after which a participant shall also be entitled to a distribution of employer contributions in a specified amount may include service for unused sick leave or reciprocal service from the participant's election to retire and apply the reciprocal provisions contained in the Code. Provides that certain military service shall be counted in determining when a self-managed plan becomes vested. Removes the requirement that, with respect to payment of benefits to persons under legal disability or minors, the receipt of payment be written for the purpose of the absolute discharge of the system's liability. Makes other changes. Effective immediately.
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A BILL FOR
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HB2694 |
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LRB094 07048 AMC 37192 b |
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| AN ACT concerning public employee benefits.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Illinois Pension Code is amended by changing | 5 |
| Sections 15-112, 15-113.6, 15-113.7, 15-136, 15-139, 15-154, | 6 |
| 15-158.2, 15-187, 15-190, and 15-191 as follows:
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| (40 ILCS 5/15-112) (from Ch. 108 1/2, par. 15-112)
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| Sec. 15-112. Final rate of earnings. "Final rate of | 9 |
| earnings":
For an employee who is paid on an hourly basis or | 10 |
| who receives an annual salary
in installments during 12 months | 11 |
| of each academic year or whose final rate of earnings period | 12 |
| includes March 1, 2005 , the average annual
earnings during the | 13 |
| 48 consecutive calendar month period ending with the last
day | 14 |
| of final termination of employment or the 4 consecutive | 15 |
| academic years of
service in which the employee's earnings were | 16 |
| the highest, whichever is
greater.
For any other employee, the | 17 |
| average annual earnings during the 4 consecutive
academic years | 18 |
| of service in which his or her earnings were the highest.
For | 19 |
| an employee with less than 48 months or 4 consecutive academic | 20 |
| years of
service, the average earnings during his or her entire | 21 |
| period of service.
The earnings of an employee with more than | 22 |
| 36 months of service prior to the
date of becoming a | 23 |
| participant are, for such period, considered equal to the
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| average earnings during the last 36 months of such service. For | 25 |
| an
employee on leave of absence with pay, or on leave of | 26 |
| absence without pay
who makes contributions during such leave, | 27 |
| earnings are assumed to be equal
to the basic compensation on | 28 |
| the date the leave began. For an employee on
disability leave, | 29 |
| earnings are assumed to be equal to the basic compensation
on | 30 |
| the date disability occurs or the average earnings during the | 31 |
| 24 months
immediately preceding the month in which disability | 32 |
| occurs, whichever is
greater.
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| For a participant who retires on or after the effective | 2 |
| date of this
amendatory Act of 1997 with at least 20 years of | 3 |
| service as a firefighter or
police officer under this Article, | 4 |
| the final rate of earnings shall be the
annual rate of earnings | 5 |
| received by the participant on his or her last day as a
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| firefighter or police officer under this Article, if that is | 7 |
| greater than the
final rate of earnings as calculated under the | 8 |
| other provisions of this
Section.
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| If a participant is an employee for at least
6 months | 10 |
| during the academic year in which his or her employment
is | 11 |
| terminated, the annual final rate of earnings shall be 25% of | 12 |
| the sum
of (1) the annual basic compensation for that year, and | 13 |
| (2) the amount
earned during the 36 months immediately | 14 |
| preceding that year, if this is
greater than the final rate of | 15 |
| earnings as calculated under the other
provisions of this | 16 |
| Section.
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| In the determination of the final rate of earnings for an | 18 |
| employee, that
part of an employee's earnings for any academic | 19 |
| year beginning after June 30,
1997, which exceeds the | 20 |
| employee's earnings with that employer for the
preceding year | 21 |
| by more than 20 percent shall be excluded; in the event
that an | 22 |
| employee has more than one employer
this limitation shall be | 23 |
| calculated separately for the earnings with
each employer. In | 24 |
| making such calculation, only the basic compensation of
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| employees shall be considered, without regard to vacation or | 26 |
| overtime or to
contracts for summer employment.
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| The following are not considered as earnings in determining | 28 |
| final rate of
earnings: (1) severance or separation pay, (2) | 29 |
| retirement pay, (3)
payment for unused sick leave, and (4) | 30 |
| payments from an employer for
the period used in determining | 31 |
| final rate of earnings for any purpose other
than (i) services | 32 |
| rendered, (ii) leave of absence or vacation granted
during that | 33 |
| period, and (iii) vacation of up to 56 work days allowed upon
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| termination of employment; except that, if the benefit has been | 35 |
| collectively
bargained between the employer and the recognized | 36 |
| collective bargaining agent
pursuant to the Illinois |
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HB2694 |
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LRB094 07048 AMC 37192 b |
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| Educational Labor Relations Act, payment received
during a | 2 |
| period of up to 2 academic years for unused sick leave may be
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| considered as earnings in accordance with the applicable | 4 |
| collective bargaining
agreement, subject to the 20% increase | 5 |
| limitation of this Section. Any unused
sick leave considered as | 6 |
| earnings under this Section shall not be taken into
account in | 7 |
| calculating service credit under Section 15-113.4.
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| Intermittent periods of service shall be considered as | 9 |
| consecutive in
determining final rate of earnings.
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| (Source: P.A. 92-599, eff. 6-28-02; 93-347, eff. 7-24-03.)
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| (40 ILCS 5/15-113.6) (from Ch. 108 1/2, par. 15-113.6)
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| Sec. 15-113.6. Service for employment in public schools. | 13 |
| "Service for
employment in public schools": Includes
those | 14 |
| periods not exceeding the lesser of 10 years or 2/3 of the | 15 |
| service
granted under other Sections of this Article dealing | 16 |
| with service credit,
during which a person who entered the | 17 |
| system after September 1, 1974 was
employed full time by a | 18 |
| public common school, public college and public
university, or | 19 |
| by an agency or instrumentality of any of the foregoing,
of any | 20 |
| state, territory, dependency or possession of the United States | 21 |
| of
America, including the Philippine Islands, or a school
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| operated by or under
the auspices of any agency or department | 23 |
| of any other state, if the person
(1) cannot qualify for a | 24 |
| retirement pension or other benefit based upon
employer
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| contributions from another retirement system, exclusive of | 26 |
| federal social
security, based in whole or in part upon this | 27 |
| employment, and (2) pays the
lesser of (A) an amount equal to | 28 |
| 8% of his or her annual basic compensation
on the date of | 29 |
| becoming a participating employee subsequent to this service
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| multiplied by the number of years of such service, together | 31 |
| with compound
interest from the date participation begins to | 32 |
| the date payment is received
by the board at the rate of 6% per | 33 |
| annum through August 31, 1982, and at
the effective rates after | 34 |
| that date, and (B) 50% of the actuarial value
of the increase | 35 |
| in the retirement annuity provided by this service, and
(3) |
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LRB094 07048 AMC 37192 b |
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| contributes for at least 5 years subsequent to this employment | 2 |
| to one
or more of the following systems: the State Universities | 3 |
| Retirement System,
the Teachers' Retirement System of the State | 4 |
| of Illinois, and the Public
School Teachers' Pension and | 5 |
| Retirement Fund of Chicago.
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| The service granted under this Section shall not be | 7 |
| considered in determining
whether the person has the minimum of | 8 |
| 8 years of service required to qualify
for a retirement annuity | 9 |
| at age 55 or the 5 years of service required to
qualify for a | 10 |
| retirement annuity at age 62, as provided in Section 15-135.
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| The maximum allowable service of 10 years for this governmental | 12 |
| employment
shall be reduced by the service credit which is | 13 |
| validated under paragraph
(3) of Section 16-127 and paragraph 1 | 14 |
| of Section 17-133.
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| (Source: P.A. 91-357, eff. 7-29-99.)
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| (40 ILCS 5/15-113.7) (from Ch. 108 1/2, par. 15-113.7)
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| Sec. 15-113.7. Service for other public employment. | 18 |
| "Service for
other public employment": Includes those periods | 19 |
| not exceeding the lesser of
10 years or 2/3 of the service | 20 |
| granted under other Sections of this Article
dealing with | 21 |
| service credit, during which a person was employed full time by
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| the United States government, or by the government of a state, | 23 |
| or by a
political subdivision of a state, or by an agency or | 24 |
| instrumentality of any of
the foregoing, if the person (1) | 25 |
| cannot qualify for a retirement pension or
other benefit based | 26 |
| upon employer contributions from another retirement system,
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| exclusive of federal social security, based in whole or in part | 28 |
| upon this
employment, and (2) pays the lesser of (A) an amount | 29 |
| equal to 8% of his or her
annual basic compensation on the date | 30 |
| of becoming a participating employee
subsequent to this service | 31 |
| multiplied by the number of years of such service,
together | 32 |
| with compound interest from the date participation begins to | 33 |
| the date
payment is received by the board at the rate of 6% per | 34 |
| annum through August 31,
1982, and at the effective rates after | 35 |
| that date, and (B) 50% of the actuarial
value of the increase |
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LRB094 07048 AMC 37192 b |
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| in the retirement annuity provided by this service, and
(3) | 2 |
| contributes for at least 5 years subsequent to this employment | 3 |
| to one or
more of the following systems: the State Universities | 4 |
| Retirement System, the
Teachers' Retirement System of the State | 5 |
| of Illinois, and the Public School
Teachers' Pension and | 6 |
| Retirement Fund of Chicago. If a function of a
governmental | 7 |
| unit as defined by Section 20-107 is transferred by law, in | 8 |
| whole
or in part to an employer, and an employee transfers | 9 |
| employment from this
governmental unit to such employer within | 10 |
| 6 months of the transfer of the
function, the payment for | 11 |
| service authorized under this Section shall not
exceed the | 12 |
| amount which would have been payable for this service to the
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| retirement system covering the governmental unit from which the | 14 |
| function was
transferred.
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| The service granted under this Section shall not be | 16 |
| considered in determining
whether the person has the minimum of | 17 |
| 8 years of service required to qualify
for a retirement annuity | 18 |
| at age 55 or the 5 years of service required to
qualify for a | 19 |
| retirement annuity at age 62, as provided in Section 15-135.
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| The maximum allowable service of 10 years for this governmental | 21 |
| employment
shall be reduced by the service credit which is | 22 |
| validated under paragraph
(3) of Section 16-127 and paragraph | 23 |
| one of Section 17-133.
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| Except as hereinafter provided, this Section shall not | 25 |
| apply to
persons who become participants in the system after | 26 |
| September 1, 1974.
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| (Source: P.A. 90-65, eff. 7-7-97; 90-511, eff. 8-22-97.)
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| (40 ILCS 5/15-136) (from Ch. 108 1/2, par. 15-136)
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| Sec. 15-136. Retirement annuities - Amount. The provisions | 30 |
| of this
Section 15-136 apply only to those participants who are | 31 |
| participating in the
traditional benefit package or the | 32 |
| portable benefit package and do not
apply to participants who | 33 |
| are participating in the self-managed plan.
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| (a) The amount of a participant's retirement annuity, | 35 |
| expressed in the form
of a single-life annuity, shall be |
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HB2694 |
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LRB094 07048 AMC 37192 b |
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| determined by whichever of the following
rules is applicable | 2 |
| and provides the largest annuity:
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| Rule 1: The retirement annuity shall be 1.67% of final rate | 4 |
| of earnings for
each of the first 10 years of service, 1.90% | 5 |
| for each of the next 10 years of
service, 2.10% for each year | 6 |
| of service in excess of 20 but not exceeding 30,
and 2.30% for | 7 |
| each year in excess of 30; or for persons who retire on or
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| after January 1, 1998, 2.2% of the final rate of earnings for | 9 |
| each year of
service.
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| Rule 2: The retirement annuity shall be the sum of the | 11 |
| following,
determined from amounts credited to the participant | 12 |
| in accordance with the
actuarial tables and the prescribed rate | 13 |
| of interest in effect at the
time the retirement annuity | 14 |
| begins:
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| (i) the normal annuity which can be provided on an | 16 |
| actuarially
equivalent basis, by the accumulated normal | 17 |
| contributions as of
the date the annuity begins;
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| (ii) an annuity from employer contributions of an | 19 |
| amount equal to that
which can be provided on an | 20 |
| actuarially equivalent basis from the accumulated
normal | 21 |
| contributions made by the participant under Section | 22 |
| 15-113.6 and Section
15-113.7 plus 1.4 times all other | 23 |
| accumulated normal contributions made by
the participant; | 24 |
| and
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| (iii) the annuity that can be provided on an | 26 |
| actuarially equivalent basis
from the entire contribution | 27 |
| made by the participant under Section 15-113.3.
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| With respect to a police officer or firefighter who retires | 29 |
| on or after
August 14, 1998, the accumulated normal | 30 |
| contributions taken into account under
clauses (i) and (ii) of | 31 |
| this Rule 2 shall include the additional normal
contributions | 32 |
| made by the police officer or firefighter under Section
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| 15-157(a).
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| The amount of a retirement annuity calculated under this | 35 |
| Rule 2 shall
be computed solely on the basis of the | 36 |
| participant's accumulated normal
contributions, as specified |
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LRB094 07048 AMC 37192 b |
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| in this Rule and defined in Section 15-116.
Neither an employee | 2 |
| or employer contribution for early retirement under
Section | 3 |
| 15-136.2 nor any other employer contribution shall be used in | 4 |
| the
calculation of the amount of a retirement annuity under | 5 |
| this Rule 2.
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| This amendatory Act of the 91st General Assembly is a | 7 |
| clarification of
existing law and applies to every participant | 8 |
| and annuitant without regard to
whether status as an employee | 9 |
| terminates before the effective date of this
amendatory Act.
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| Rule 3: The retirement annuity of a participant who is | 11 |
| employed
at least one-half time during the period on which his | 12 |
| or her final rate of
earnings is based, shall be equal to the | 13 |
| participant's years of service
not to exceed 30, multiplied by | 14 |
| (1) $96 if the participant's final rate
of earnings is less | 15 |
| than $3,500, (2) $108 if the final rate of earnings is
at least | 16 |
| $3,500 but less than $4,500, (3) $120 if the final rate of | 17 |
| earnings
is at least $4,500 but less than $5,500, (4) $132 if | 18 |
| the final rate
of earnings is at least $5,500 but less than | 19 |
| $6,500, (5)
$144 if the final rate of earnings is at least | 20 |
| $6,500 but less than
$7,500, (6) $156 if the final rate of | 21 |
| earnings is at least $7,500 but less
than $8,500, (7) $168 if | 22 |
| the final rate of earnings is at least $8,500 but
less than | 23 |
| $9,500, and (8) $180 if the final rate of earnings is $9,500 or
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| more, except that the annuity for those persons having made an | 25 |
| election under
Section 15-154(a-1) shall be calculated and | 26 |
| payable under the portable
retirement benefit program pursuant | 27 |
| to the provisions of Section 15-136.4.
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| Rule 4: A participant who is at least age 50 and has 25 or | 29 |
| more years of
service as a police officer or firefighter, and a | 30 |
| participant who is age 55 or
over and has at least 20 but less | 31 |
| than 25 years of service as a police officer
or firefighter, | 32 |
| shall be entitled to a retirement annuity of 2 1/4% of the
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| final rate of earnings for each of the first 10 years of | 34 |
| service as a police
officer or firefighter, 2 1/2% for each of | 35 |
| the next 10 years of service as a
police officer or | 36 |
| firefighter, and 2 3/4% for each year of service as a police
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LRB094 07048 AMC 37192 b |
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| officer or firefighter in excess of 20. The retirement annuity | 2 |
| for all other
service shall be computed under Rule 1.
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| For purposes of this Rule 4, a participant's service as a | 4 |
| firefighter
shall also include the following:
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| (i) service that is performed while the person is an | 6 |
| employee under
subsection (h) of Section 15-107; and
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| (ii) in the case of an individual who was a | 8 |
| participating employee
employed in the fire department of | 9 |
| the University of Illinois's
Champaign-Urbana campus | 10 |
| immediately prior to the elimination of that fire
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| department and who immediately after the elimination of | 12 |
| that fire department
transferred to another job with the | 13 |
| University of Illinois, service performed
as an employee of | 14 |
| the University of Illinois in a position other than police
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| officer or firefighter, from the date of that transfer | 16 |
| until the employee's
next termination of service with the | 17 |
| University of Illinois.
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| Rule 5: The retirement annuity of a participant who elected | 19 |
| early
retirement under the provisions of Section 15-136.2 and | 20 |
| who, on or before
February 16, 1995, brought administrative | 21 |
| proceedings pursuant to the
administrative rules adopted by the | 22 |
| System to challenge the calculation of his
or her retirement | 23 |
| annuity shall be the sum of the following, determined from
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| amounts credited to the participant in accordance with the | 25 |
| actuarial tables and
the prescribed rate of interest in effect | 26 |
| at the time the retirement annuity
begins:
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| (i) the normal annuity which can be provided on an | 28 |
| actuarially equivalent
basis, by the accumulated normal | 29 |
| contributions as of the date the annuity
begins; and
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| (ii) an annuity from employer contributions of an | 31 |
| amount equal to that
which can be provided on an | 32 |
| actuarially equivalent basis from the accumulated
normal | 33 |
| contributions made by the participant under Section | 34 |
| 15-113.6 and Section
15-113.7 plus 1.4 times all other | 35 |
| accumulated normal contributions made by the
participant; | 36 |
| and
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| (iii) an annuity which can be provided on an | 2 |
| actuarially equivalent basis
from the employee | 3 |
| contribution for early retirement under Section 15-136.2, | 4 |
| and
an annuity from employer contributions of an amount | 5 |
| equal to that which can be
provided on an actuarially | 6 |
| equivalent basis from the employee contribution for
early | 7 |
| retirement under Section 15-136.2.
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| In no event shall a retirement annuity under this Rule 5 be | 9 |
| lower than the
amount obtained by adding (1) the monthly amount | 10 |
| obtained by dividing the
combined employee and employer | 11 |
| contributions made under Section 15-136.2 by the
System's | 12 |
| annuity factor for the age of the participant at the beginning | 13 |
| of the
annuity payment period and (2) the amount equal to the | 14 |
| participant's annuity if
calculated under Rule 1, reduced under | 15 |
| Section 15-136(b) as if no
contributions had been made under | 16 |
| Section 15-136.2.
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| With respect to a participant who is qualified for a | 18 |
| retirement annuity under
this Rule 5 whose retirement annuity | 19 |
| began before the effective date of this
amendatory Act of the | 20 |
| 91st General Assembly, and for whom an employee
contribution | 21 |
| was made under Section 15-136.2, the System shall recalculate | 22 |
| the
retirement annuity under this Rule 5 and shall pay any | 23 |
| additional amounts due
in the manner provided in Section | 24 |
| 15-186.1 for benefits mistakenly set too low.
| 25 |
| The amount of a retirement annuity calculated under this | 26 |
| Rule 5 shall be
computed solely on the basis of those | 27 |
| contributions specifically set forth in
this Rule 5. Except as | 28 |
| provided in clause (iii) of this Rule 5, neither an
employee | 29 |
| nor employer contribution for early retirement under Section | 30 |
| 15-136.2,
nor any other employer contribution, shall be used in | 31 |
| the calculation of the
amount of a retirement annuity under | 32 |
| this Rule 5.
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| The General Assembly has adopted the changes set forth in | 34 |
| Section 25 of this
amendatory Act of the 91st General Assembly | 35 |
| in recognition that the decision of
the Appellate Court for the | 36 |
| Fourth District in Mattis v. State Universities
Retirement |
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| System et al. might be deemed to give some right to the | 2 |
| plaintiff in
that case. The changes made by Section 25 of this | 3 |
| amendatory Act of the 91st
General Assembly are a legislative | 4 |
| implementation of the decision of the
Appellate Court for the | 5 |
| Fourth District in Mattis v. State Universities
Retirement | 6 |
| System et al. with respect to that plaintiff.
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| The changes made by Section 25 of this amendatory Act of | 8 |
| the 91st General
Assembly apply without regard to whether the | 9 |
| person is in service as an
employee on or after its effective | 10 |
| date.
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| (b) The retirement annuity provided under Rules 1 and 3 | 12 |
| above shall be
reduced by 1/2 of 1% for each month the | 13 |
| participant is under age 60 at the
time of retirement. However, | 14 |
| this reduction shall not apply in the following
cases:
| 15 |
| (1) For a disabled participant whose disability | 16 |
| benefits have been
discontinued because he or she has | 17 |
| exhausted eligibility for disability
benefits under clause | 18 |
| (6) of Section 15-152;
| 19 |
| (2) For a participant who has at least the number of | 20 |
| years of service
required to retire at any age under | 21 |
| subsection (a) of Section 15-135; or
| 22 |
| (3) For that portion of a retirement annuity which has | 23 |
| been provided on
account of service of the participant | 24 |
| during periods when he or she performed
the duties of a | 25 |
| police officer or firefighter, if these duties were | 26 |
| performed
for at least 5 years immediately preceding the | 27 |
| date the retirement annuity
is to begin.
| 28 |
| (c) The maximum retirement annuity provided under Rules 1, | 29 |
| 2, 4,
and 5
shall be the lesser of (1) the annual limit of | 30 |
| benefits as specified in
Section 415 of the Internal Revenue | 31 |
| Code of 1986, as such Section may be
amended from time to time | 32 |
| and as such benefit limits shall be adjusted by
the | 33 |
| Commissioner of Internal Revenue, and (2) 80% of final rate of
| 34 |
| earnings.
| 35 |
| (d) An annuitant whose status as an employee terminates | 36 |
| after August 14,
1969 shall receive automatic increases in his |
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| or her retirement annuity as
follows:
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| Effective January 1 immediately following the date the | 3 |
| retirement annuity
begins, the annuitant shall receive an | 4 |
| increase in his or her monthly
retirement annuity of 0.125% of | 5 |
| the monthly retirement annuity provided under
Rule 1, Rule 2, | 6 |
| Rule 3, Rule 4, or Rule 5, contained in this
Section, | 7 |
| multiplied by
the number of full months which elapsed from the | 8 |
| date the retirement annuity
payments began to January 1, 1972, | 9 |
| plus 0.1667% of such annuity, multiplied by
the number of full | 10 |
| months which elapsed from January 1, 1972, or the date the
| 11 |
| retirement annuity payments began, whichever is later, to | 12 |
| January 1, 1978, plus
0.25% of such annuity multiplied by the | 13 |
| number of full months which elapsed
from January 1, 1978, or | 14 |
| the date the retirement annuity payments began,
whichever is | 15 |
| later, to the effective date of the increase.
| 16 |
| The annuitant shall receive an increase in his or her | 17 |
| monthly retirement
annuity on each January 1 thereafter during | 18 |
| the annuitant's life of 3% of
the monthly annuity provided | 19 |
| under Rule 1, Rule 2, Rule 3, Rule 4, or
Rule 5 contained
in | 20 |
| this Section. The change made under this subsection by P.A. | 21 |
| 81-970 is
effective January 1, 1980 and applies to each | 22 |
| annuitant whose status as
an employee terminates before or | 23 |
| after that date.
| 24 |
| Beginning January 1, 1990, all automatic annual increases | 25 |
| payable under
this Section shall be calculated as a percentage | 26 |
| of the total annuity
payable at the time of the increase, | 27 |
| including all increases previously
granted under this Article.
| 28 |
| The change made in this subsection by P.A. 85-1008 is | 29 |
| effective January
26, 1988, and is applicable without regard to | 30 |
| whether status as an employee
terminated before that date.
| 31 |
| (e) If, on January 1, 1987, or the date the retirement | 32 |
| annuity payment
period begins, whichever is later, the sum of | 33 |
| the retirement annuity
provided under Rule 1 or Rule 2 of this | 34 |
| Section
and the automatic annual increases provided under the | 35 |
| preceding subsection
or Section 15-136.1, amounts to less than | 36 |
| the retirement
annuity which would be provided by Rule 3, the |
|
|
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| retirement
annuity shall be increased as of January 1, 1987, or | 2 |
| the date the
retirement annuity payment period begins, | 3 |
| whichever is later, to the amount
which would be provided by | 4 |
| Rule 3 of this Section. Such increased
amount shall be | 5 |
| considered as the retirement annuity in determining
benefits | 6 |
| provided under other Sections of this Article. This paragraph
| 7 |
| applies without regard to whether status as an employee | 8 |
| terminated before the
effective date of this amendatory Act of | 9 |
| 1987, provided that the annuitant was
employed at least | 10 |
| one-half time during the period on which the final rate of
| 11 |
| earnings was based.
| 12 |
| (f) A participant is entitled to such additional annuity as | 13 |
| may be provided
on an actuarially equivalent basis, by any | 14 |
| accumulated
additional contributions to his or her credit. | 15 |
| However,
the additional contributions made by the participant | 16 |
| toward the automatic
increases in annuity provided under this | 17 |
| Section shall not be taken into
account in determining the | 18 |
| amount of such additional annuity.
| 19 |
| (g) If, (1) by law, a function of a governmental unit, as | 20 |
| defined by Section
20-107 of this Code, is transferred in whole | 21 |
| or in part to an employer, and (2)
a participant transfers | 22 |
| employment from such governmental unit to such employer
within | 23 |
| 6 months after the transfer of the function, and (3) the sum of | 24 |
| (A) the
annuity payable to the participant under Rule 1, 2, or | 25 |
| 3 of this Section (B)
all proportional annuities payable to the | 26 |
| participant by all other retirement
systems covered by Article | 27 |
| 20, and (C) the initial primary insurance amount to
which the | 28 |
| participant is entitled under the Social Security Act, is less | 29 |
| than
the retirement annuity which would have been payable if | 30 |
| all of the
participant's pension credits validated under | 31 |
| Section 20-109 had been validated
under this system, a | 32 |
| supplemental annuity equal to the difference in such
amounts | 33 |
| shall be payable to the participant.
| 34 |
| (h) On January 1, 1981, an annuitant who was receiving
a | 35 |
| retirement annuity on or before January 1, 1971 shall have his | 36 |
| or her
retirement annuity then being paid increased $1 per |
|
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| month for
each year of creditable service. On January 1, 1982, | 2 |
| an annuitant whose
retirement annuity began on or before | 3 |
| January 1, 1977, shall have his or her
retirement annuity then | 4 |
| being paid increased $1 per month for each year of
creditable | 5 |
| service.
| 6 |
| (i) On January 1, 1987, any annuitant whose retirement | 7 |
| annuity began on or
before January 1, 1977, shall have the | 8 |
| monthly retirement annuity increased by
an amount equal to 8˘ | 9 |
| per year of creditable service times the number of years
that | 10 |
| have elapsed since the annuity began.
| 11 |
| (j) Any retirement benefit accrued but unpaid on the death | 12 |
| of an annuitant shall be paid to the annuitant's beneficiary.
| 13 |
| (Source: P.A. 92-16, eff. 6-28-01; 93-347, eff. 7-24-03.)
| 14 |
| (40 ILCS 5/15-139) (from Ch. 108 1/2, par. 15-139)
| 15 |
| Sec. 15-139. Retirement annuities; cancellation; suspended | 16 |
| during
employment.
| 17 |
| (a) If an annuitant returns to employment for an employer
| 18 |
| within 2 months
60 days after the beginning of the retirement | 19 |
| annuity payment
period, the retirement annuity shall be | 20 |
| cancelled, and the annuitant shall
refund to the System the | 21 |
| total amount of the retirement annuity payments
which he or she | 22 |
| received. If the retirement annuity is cancelled, the
| 23 |
| participant shall continue to participate in the System.
| 24 |
| (b) If an annuitant retires prior to age 60 and receives or | 25 |
| becomes
entitled to receive during any month compensation in | 26 |
| excess of the monthly
retirement annuity (including any | 27 |
| automatic annual increases) for services
performed after the | 28 |
| date of retirement for any employer under this System, that
| 29 |
| portion of the monthly
retirement annuity provided by employer | 30 |
| contributions shall not be payable.
| 31 |
| If an annuitant retires at age 60 or over and receives
or | 32 |
| becomes entitled to receive during any academic year | 33 |
| compensation in
excess of the difference between his or her | 34 |
| highest annual earnings prior
to retirement and his or her | 35 |
| annual retirement annuity computed under Rule
1, Rule 2, Rule |
|
|
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| 3, Rule 4, or Rule 5 of Section 15-136, or under Section
| 2 |
| 15-136.4,
for services performed after
the date of retirement | 3 |
| for any employer under this System, that portion of
the monthly | 4 |
| retirement annuity provided by employer contributions shall be
| 5 |
| reduced by an amount equal to the compensation that exceeds | 6 |
| such difference.
| 7 |
| However, any remuneration received for serving as a member | 8 |
| of the
Illinois Educational Labor Relations Board shall be | 9 |
| excluded from
"compensation" for the purposes of this | 10 |
| subsection (b), and serving as a
member of the Illinois | 11 |
| Educational Labor Relations Board shall not be
deemed to be a | 12 |
| return to employment for the purposes of this Section.
This | 13 |
| provision applies without regard to whether service was | 14 |
| terminated
prior to the effective date of this amendatory Act | 15 |
| of 1991.
| 16 |
| (c) If an employer certifies that an annuitant has been | 17 |
| reemployed
on a permanent and continuous basis or in a position
| 18 |
| in which the annuitant is expected to serve for at least 9 | 19 |
| months, the
annuitant shall resume his or her status as a | 20 |
| participating employee
and shall be entitled to all rights | 21 |
| applicable to
participating employees upon filing with the | 22 |
| board an
election to forego all annuity payments during the | 23 |
| period
of reemployment. Upon subsequent retirement, the | 24 |
| retirement
annuity shall consist of the annuity which was | 25 |
| terminated by the reemployment,
plus the additional retirement | 26 |
| annuity based upon service
granted during the period of | 27 |
| reemployment, but the combined retirement
annuity shall not | 28 |
| exceed the maximum
annuity applicable on the date of the last | 29 |
| retirement.
| 30 |
| The total service and earnings credited before and after | 31 |
| the initial
date of retirement shall be considered in | 32 |
| determining eligibility of the
employee or the employee's | 33 |
| beneficiary to benefits under this
Article, and in calculating | 34 |
| final rate of earnings.
| 35 |
| In determining the death benefit
payable to a beneficiary | 36 |
| of an annuitant who again becomes a participating
employee |
|
|
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| under this Section, accumulated normal and additional
| 2 |
| contributions shall be considered as the sum of the accumulated | 3 |
| normal and
additional contributions at the date of initial | 4 |
| retirement and the
accumulated normal and additional | 5 |
| contributions credited after that date,
less the sum of the | 6 |
| annuity payments received by the annuitant.
| 7 |
| The survivors insurance benefits provided under Section | 8 |
| 15-145 shall not
be applicable to an annuitant who resumes his | 9 |
| or her status as a
participating employee, unless the | 10 |
| annuitant, at the time of initial
retirement, either: (1) has a | 11 |
| survivors insurance beneficiary who could qualify
for such | 12 |
| benefits ; or (2) elected not to receive a refund of survivors | 13 |
| insurance contributions. A portable benefit package lump-sum | 14 |
| retirement benefit recipient may elect to receive an optional | 15 |
| form of retirement annuity pursuant to the provisions of | 16 |
| subsection (h) of Section 15-136.4, but only with respect to | 17 |
| the additional retirement annuity earned during the period of | 18 |
| reemployment .
| 19 |
| If the annuitant's employment is terminated because of | 20 |
| circumstances
other than death before 9 months from the date of | 21 |
| reemployment, the
provisions of this Section regarding | 22 |
| resumption of status as a
participating employee shall not | 23 |
| apply. The normal and survivors insurance
contributions which | 24 |
| are deducted during this period shall be refunded to
the | 25 |
| annuitant without interest, and subsequent benefits under this | 26 |
| Article
shall be the same as those which were applicable prior | 27 |
| to the date the
annuitant resumed employment.
| 28 |
| The amendments made to this Section by this amendatory Act | 29 |
| of the 91st
General Assembly apply without regard to whether | 30 |
| the annuitant was in service
on or after the effective date of | 31 |
| this amendatory Act.
| 32 |
| (Source: P.A. 91-887 (Sections 10 and 25), eff. 7-6-00; 92-16, | 33 |
| eff.
6-28-01.)
| 34 |
| (40 ILCS 5/15-154) (from Ch. 108 1/2, par. 15-154)
| 35 |
| Sec. 15-154. Refunds.
|
|
|
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| (a) A participant whose status as an employee is | 2 |
| terminated, regardless of
cause, or who has been on lay off | 3 |
| status for more than 120 days, and who is not
on leave of | 4 |
| absence, is entitled to a refund of contributions upon | 5 |
| application;
except that not more than one such refund | 6 |
| application may be made during any
academic year.
| 7 |
| Except as set forth in subsections (a-1) and (a-2), the | 8 |
| refund shall
be the sum of the accumulated normal, additional, | 9 |
| and survivors insurance
contributions, plus the entire | 10 |
| contribution made by the participant under
Section 15-113.3, | 11 |
| less the amount of interest credited on these contributions
| 12 |
| each year in excess of 4 1/2% of the amount on which interest | 13 |
| was calculated.
| 14 |
| (a-1) A person who elects, in accordance with the | 15 |
| requirements of Section
15-134.5, to participate in the | 16 |
| portable benefit package and who becomes a
participating | 17 |
| employee under that retirement program upon the conclusion of
| 18 |
| the one-year waiting period applicable to the portable benefit | 19 |
| package election
shall have his or her refund calculated in | 20 |
| accordance with the provisions of
subsection (a-2).
| 21 |
| (a-2) The refund payable to a participant described in | 22 |
| subsection (a-1)
shall be the sum of the participant's | 23 |
| accumulated normal and additional
contributions, as defined in | 24 |
| Sections 15-116 and 15-117, plus the entire
contribution made | 25 |
| by the participant under Section 15-113.3. If the
participant | 26 |
| terminates with 5 or more years of service from one or more of: | 27 |
| (1)
for employment as
defined in Section 15-113.1, (2) service | 28 |
| creditable under Section 15-113.4, or (3) reciprocal service | 29 |
| from the participant's election to retire and apply the | 30 |
| reciprocal provisions of Article 20 of this Code, then he or | 31 |
| she shall also be entitled to a distribution
of employer | 32 |
| contributions in an amount equal to the sum of the accumulated
| 33 |
| normal and additional contributions, as defined in Sections | 34 |
| 15-116 and 15-117.
| 35 |
| (b) Upon acceptance of a refund, the participant forfeits | 36 |
| all
accrued rights and credits in the System, and if |
|
|
|
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| subsequently reemployed, the
participant shall be considered a | 2 |
| new employee subject to all the qualifying
conditions for | 3 |
| participation and eligibility for benefits applicable to new
| 4 |
| employees. If such person again becomes a participating | 5 |
| employee and continues
as such for 2 years, or is employed by | 6 |
| an employer and participates for at
least 2 years in the | 7 |
| Federal Civil Service Retirement System, all such rights,
| 8 |
| credits, and previous status as a participant shall be restored | 9 |
| upon repayment
of the amount of the refund, together with | 10 |
| compound interest thereon from the
date the refund was received | 11 |
| to the date of repayment at the rate of 6% per
annum through | 12 |
| August 31, 1982, and at the effective rates after that date.
| 13 |
| When a participant in the portable benefit package who received | 14 |
| a refund
which included a distribution of employer | 15 |
| contributions repays a refund
pursuant to this Section, | 16 |
| one-half of the amount repaid shall be deemed the
member's | 17 |
| reinstated accumulated normal and additional contributions and | 18 |
| the
other half shall be allocated as an employer contribution | 19 |
| to the System,
except that any amount repaid for previously | 20 |
| purchased military service
credit under Section 15-113.3 shall | 21 |
| be accounted for as such.
| 22 |
| (c) If a participant covered under the traditional
benefit | 23 |
| package has made survivors insurance contributions, but has no
| 24 |
| survivors insurance beneficiary upon retirement, he or she | 25 |
| shall be entitled
to elect a refund of the accumulated | 26 |
| survivors insurance contributions, or to
elect an additional | 27 |
| annuity the value of which is equal to the accumulated
| 28 |
| survivors insurance contributions. This election must be made | 29 |
| prior to the
date the person's retirement annuity is approved | 30 |
| by the System.
| 31 |
| (d) A participant, upon application, is entitled to a | 32 |
| refund of his
or her accumulated additional contributions | 33 |
| attributable to the additional
contributions described in the | 34 |
| last sentence of subsection (c) of Section
15-157. Upon the | 35 |
| acceptance of such a refund of accumulated additional
| 36 |
| contributions, the participant forfeits all rights and credits |
|
|
|
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| 1 |
| which may
have accrued because of such contributions.
| 2 |
| (e) A participant who terminates his or her employee status | 3 |
| and elects to
waive service credit under Section 15-154.2, is | 4 |
| entitled to a refund of the
accumulated normal, additional and | 5 |
| survivors insurance contributions, if any,
which were credited | 6 |
| the participant for this service, or to an additional
annuity | 7 |
| the value of which is equal to the accumulated normal, | 8 |
| additional and
survivors insurance contributions, if any; | 9 |
| except that not more than one such
refund application may be | 10 |
| made during any academic year. Upon acceptance of
this refund, | 11 |
| the participant forfeits all rights and credits accrued because
| 12 |
| of this service.
| 13 |
| (f) If a police officer or firefighter receives a | 14 |
| retirement annuity
under Rule 1 or 3 of Section 15-136, he or | 15 |
| she shall be entitled at
retirement to a refund of the | 16 |
| difference between his or her accumulated
normal contributions | 17 |
| and the normal contributions which would have
accumulated had | 18 |
| such person filed a waiver of the retirement formula
provided | 19 |
| by Rule 4 of Section 15-136.
| 20 |
| (g) If, at the time of retirement, a participant would be | 21 |
| entitled to
a retirement annuity under Rule 1, 2, 3, 4, or 5 of | 22 |
| Section 15-136, or under
Section 15-136.4, that exceeds
the | 23 |
| maximum specified in clause (1) of subsection (c) of Section | 24 |
| 15-136, he
or she shall be entitled to a refund of the employee | 25 |
| contributions, if any,
paid under Section 15-157 after the date | 26 |
| upon which continuance of such
contributions would have | 27 |
| otherwise caused the retirement annuity to exceed
this maximum, | 28 |
| plus compound interest at the effective rates.
| 29 |
| (Source: P.A. 92-16, eff. 6-28-01;
92-424, eff. 8-17-01; | 30 |
| 93-347, eff. 7-24-03.)
| 31 |
| (40 ILCS 5/15-158.2)
| 32 |
| Sec. 15-158.2. Self-managed plan.
| 33 |
| (a) Purpose. The General Assembly finds that it is | 34 |
| important for colleges
and universities to be able to attract | 35 |
| and retain the most qualified employees
and that in order to |
|
|
|
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| attract and retain these employees, colleges and
universities | 2 |
| should have the flexibility to provide a defined contribution
| 3 |
| plan as an alternative for eligible employees who elect not to | 4 |
| participate
in a defined benefit retirement program provided | 5 |
| under this Article.
Accordingly, the State Universities | 6 |
| Retirement System is hereby authorized to
establish and | 7 |
| administer a self-managed plan, which shall offer | 8 |
| participating
employees the opportunity to accumulate assets | 9 |
| for retirement through a
combination of employee and employer | 10 |
| contributions that may be invested in
mutual funds, collective | 11 |
| investment funds, or other investment products and
used to | 12 |
| purchase annuity contracts, either fixed or variable or a | 13 |
| combination
thereof. The plan must be qualified under the | 14 |
| Internal Revenue Code of 1986.
| 15 |
| (b) Adoption by employers. Each employer subject to this | 16 |
| Article may
elect to adopt the self-managed plan established | 17 |
| under this Section; this
election is irrevocable. An employer's | 18 |
| election to adopt the self-managed
plan makes available to the | 19 |
| eligible employees of that employer the elections
described in | 20 |
| Section 15-134.5.
| 21 |
| The State Universities Retirement System shall be the plan | 22 |
| sponsor for the
self-managed plan and shall prepare a plan | 23 |
| document and prescribe such rules
and procedures as are | 24 |
| considered necessary or desirable for the administration
of the | 25 |
| self-managed plan. Consistent with its fiduciary duty to the
| 26 |
| participants and beneficiaries of the self-managed plan, the | 27 |
| Board of Trustees
of the System may delegate aspects of plan | 28 |
| administration as it sees fit to
companies authorized to do | 29 |
| business in this State, to the employers, or to a
combination | 30 |
| of both.
| 31 |
| (c) Selection of service providers and funding vehicles. | 32 |
| The System, in
consultation with the employers, shall solicit | 33 |
| proposals to provide
administrative services and funding | 34 |
| vehicles for the self-managed plan from
insurance and annuity | 35 |
| companies and mutual fund companies, banks, trust
companies, or | 36 |
| other financial institutions authorized to do business in this
|
|
|
|
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| 1 |
| State. In reviewing the proposals received and approving and | 2 |
| contracting with
no fewer than 2 and no more than 7 companies, | 3 |
| the Board of Trustees of the System shall
consider, among other | 4 |
| things, the following criteria:
| 5 |
| (1) the nature and extent of the benefits that would be | 6 |
| provided
to the participants;
| 7 |
| (2) the reasonableness of the benefits in relation to | 8 |
| the premium
charged;
| 9 |
| (3) the suitability of the benefits to the needs and
| 10 |
| interests of the participating employees and the employer;
| 11 |
| (4) the ability of the company to provide benefits | 12 |
| under the contract and
the financial stability of the | 13 |
| company; and
| 14 |
| (5) the efficacy of the contract in the recruitment and | 15 |
| retention of
employees.
| 16 |
| The System, in consultation with the employers, shall | 17 |
| periodically review
each approved company. A company may | 18 |
| continue to provide administrative
services and funding | 19 |
| vehicles for the self-managed plan only so long as
it continues | 20 |
| to be an approved company under contract with the Board.
| 21 |
| (d) Employee Direction. Employees who are participating in | 22 |
| the program
must be allowed to direct the transfer of their | 23 |
| account balances among the
various investment options offered, | 24 |
| subject to applicable contractual
provisions.
The participant | 25 |
| shall not be deemed a fiduciary by reason of providing such
| 26 |
| investment direction. A person who is a fiduciary shall not be | 27 |
| liable for any
loss resulting from such investment direction | 28 |
| and shall not be deemed to have
breached any fiduciary duty by | 29 |
| acting in accordance with that direction.
Neither the System | 30 |
| nor the employer guarantees any of the investments in the
| 31 |
| employee's account balances.
| 32 |
| (e) Participation. An employee eligible to participate in | 33 |
| the
self-managed plan must make a written election in | 34 |
| accordance with the
provisions of Section 15-134.5 and the | 35 |
| procedures established by the System.
Participation in the | 36 |
| self-managed plan by an electing employee shall begin
on the |
|
|
|
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| 1 |
| first day of the first pay period following the later of the | 2 |
| date the
employee's election is filed with the System or the | 3 |
| effective date as of
which the employee's employer begins to | 4 |
| offer participation in the self-managed
plan. Employers may not | 5 |
| make the self-managed plan available earlier than
January 1, | 6 |
| 1998. An employee's participation in any other retirement | 7 |
| program
administered by the System under this Article shall | 8 |
| terminate on the date that
participation in the self-managed | 9 |
| plan begins.
| 10 |
| An employee who has elected to participate in the | 11 |
| self-managed plan under
this Section must continue | 12 |
| participation while employed in an eligible
position, and may | 13 |
| not participate in any other retirement program administered
by | 14 |
| the System under this Article while employed by that employer | 15 |
| or any other
employer that has adopted the self-managed plan, | 16 |
| unless the self-managed plan
is terminated in accordance with | 17 |
| subsection (i).
| 18 |
| Participation in the self-managed plan under this Section | 19 |
| shall constitute
membership in the State Universities | 20 |
| Retirement System.
| 21 |
| A participant under this Section shall be entitled to the | 22 |
| benefits of
Article 20 of this Code.
| 23 |
| (f) Establishment of Initial Account Balance. If at the | 24 |
| time an employee
elects to participate in the self-managed plan | 25 |
| he or she has rights and credits
in the System due to previous | 26 |
| participation in the traditional benefit package,
the System | 27 |
| shall establish for the employee an opening account balance in | 28 |
| the
self-managed plan, equal to the amount of contribution | 29 |
| refund that the employee
would be eligible to receive under | 30 |
| Section 15-154 if the employee terminated
employment on that | 31 |
| date and elected a refund of contributions, except that this
| 32 |
| hypothetical refund shall include interest at the effective | 33 |
| rate for the
respective years. The System shall transfer assets | 34 |
| from the defined benefit
retirement program to the self-managed | 35 |
| plan, as a tax free transfer in
accordance with Internal | 36 |
| Revenue Service guidelines, for purposes of funding
the |
|
|
|
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|
| 1 |
| employee's opening account balance.
| 2 |
| (g) No Duplication of Service Credit. Notwithstanding any | 3 |
| other provision
of this Article, an employee may not purchase | 4 |
| or receive service or service
credit applicable to any other | 5 |
| retirement program administered by the System
under this | 6 |
| Article for any period during which the employee was a | 7 |
| participant
in the self-managed plan established under this | 8 |
| Section.
| 9 |
| (h) Contributions. The self-managed plan shall be funded by | 10 |
| contributions
from employees participating in the self-managed | 11 |
| plan and employer
contributions as provided in this Section.
| 12 |
| The contribution rate for employees participating in the | 13 |
| self-managed plan
under this Section shall be equal to the | 14 |
| employee contribution rate for other
participants in the | 15 |
| System, as provided in Section 15-157. This required
| 16 |
| contribution shall be made as an "employer pick-up" under | 17 |
| Section 414(h) of the
Internal Revenue Code of 1986 or any | 18 |
| successor Section thereof. Any employee
participating in the | 19 |
| System's traditional benefit package prior to his or her
| 20 |
| election to participate in the self-managed plan shall continue | 21 |
| to have the
employer pick up the contributions required under | 22 |
| Section 15-157. However, the
amounts picked up after the | 23 |
| election of the self-managed plan shall be remitted
to and | 24 |
| treated as assets of the self-managed plan. In no event shall | 25 |
| an
employee have an option of receiving these amounts in cash. | 26 |
| Employees may make
additional contributions to the
| 27 |
| self-managed plan in accordance with procedures prescribed by | 28 |
| the System, to
the extent permitted under rules prescribed by | 29 |
| the System.
| 30 |
| The program shall provide for employer contributions to be | 31 |
| credited to each
self-managed plan participant at a rate of | 32 |
| 7.6%
of the participating employee's salary, less the amount | 33 |
| used by
the System to provide disability benefits for the | 34 |
| employee.
The amounts so credited
shall be paid into the | 35 |
| participant's self-managed plan accounts in a manner
to be | 36 |
| prescribed by the System.
|
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| An amount of employer contribution, not exceeding 1% of the | 2 |
| participating
employee's salary, shall be used for the purpose | 3 |
| of providing the disability
benefits of the System to the | 4 |
| employee. Prior to the beginning of each plan
year under the | 5 |
| self-managed plan, the Board of Trustees shall determine, as a
| 6 |
| percentage of salary, the amount of employer contributions to | 7 |
| be allocated
during that plan year for providing disability | 8 |
| benefits for employees in the
self-managed plan.
| 9 |
| The State of Illinois shall make contributions by | 10 |
| appropriations to the
System of the employer contributions | 11 |
| required for employees who participate in
the self-managed plan | 12 |
| under this Section.
The amount required shall
be certified by | 13 |
| the Board of Trustees of the System and paid by the State in
| 14 |
| accordance with Section 15-165. The System shall not be | 15 |
| obligated to remit the
required employer contributions to any | 16 |
| of the insurance and annuity
companies, mutual fund
companies, | 17 |
| banks, trust companies, financial institutions, or other | 18 |
| sponsors
of any of the funding vehicles offered under the | 19 |
| self-managed plan
until it has received the required employer | 20 |
| contributions from the State. In
the event of a deficiency in | 21 |
| the amount of State contributions, the System
shall implement | 22 |
| those procedures described in subsection (c) of Section 15-165
| 23 |
| to obtain the required funding from the General Revenue
Fund.
| 24 |
| (i) Termination. The self-managed plan authorized under | 25 |
| this
Section may be terminated by the System, subject to the | 26 |
| terms
of any relevant
contracts, and the System shall have no | 27 |
| obligation to
reestablish the self-managed plan under this | 28 |
| Section. This Section does not
create a right
to continued | 29 |
| participation in any self-managed plan set up by the System | 30 |
| under
this Section. If the self-managed plan is terminated,
the | 31 |
| participants shall have the right to participate in one of the | 32 |
| other
retirement programs offered by the System and receive | 33 |
| service credit in such
other retirement program for any years | 34 |
| of employment following the termination.
| 35 |
| (j) Vesting; Withdrawal; Return to Service. A participant | 36 |
| in the
self-managed plan becomes vested in the employer |
|
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| contributions credited to his
or her accounts in the | 2 |
| self-managed plan on the earliest to occur of the
following: | 3 |
| (1) completion of 5 years of service , counting service with an | 4 |
| employer described in
Section 15-106 or military service | 5 |
| established under Section 15-113.3 ; (2) the death of the | 6 |
| participating employee while employed by
an employer described | 7 |
| in Section 15-106, if the participant has completed at
least 1 | 8 |
| 1/2 years of service; or (3) the participant's election to | 9 |
| retire and
apply the reciprocal provisions of Article 20 of | 10 |
| this Code.
| 11 |
| A participant in the self-managed plan who receives a | 12 |
| distribution of his or
her vested amounts from the self-managed | 13 |
| plan
while not yet eligible for retirement under this Article
| 14 |
| (and Article 20, if applicable) shall forfeit all service | 15 |
| credit
and accrued rights in the System; if subsequently | 16 |
| re-employed, the participant
shall be considered a new
| 17 |
| employee. If a former participant again becomes a participating | 18 |
| employee (or
becomes employed by a participating system under | 19 |
| Article 20 of this Code) and
continues as such for at least 2 | 20 |
| years, all such rights, service credits, and
previous status as | 21 |
| a participant shall be restored upon repayment of the amount
of | 22 |
| the distribution, without interest.
| 23 |
| (k) Benefit amounts. If an employee who is vested in | 24 |
| employer
contributions terminates employment, the employee | 25 |
| shall be entitled to a
benefit which is based on the
account | 26 |
| values attributable to both employer and
employee | 27 |
| contributions and any
investment return thereon.
| 28 |
| If an employee who is not vested in employer contributions | 29 |
| terminates
employment, the employee shall be entitled to a | 30 |
| benefit based solely on the
account values attributable to the | 31 |
| employee's contributions and any investment
return thereon, | 32 |
| and the employer contributions and any investment return
| 33 |
| thereon shall be forfeited. Any employer contributions which | 34 |
| are forfeited
shall be held in escrow by the
company investing | 35 |
| those contributions and shall be used as directed by the
System | 36 |
| for future allocations of employer contributions or for the |
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| restoration
of amounts previously forfeited by former | 2 |
| participants who again become
participating employees.
| 3 |
| (Source: P.A. 93-347, eff. 7-24-03.)
| 4 |
| (40 ILCS 5/15-187) (from Ch. 108 1/2, par. 15-187)
| 5 |
| Sec. 15-187. Felony conviction. None of the benefits | 6 |
| provided under this
Article shall be paid to any person who is | 7 |
| convicted of any felony relating to
or arising out of or in | 8 |
| connection with the person's service as an employee.
| 9 |
| This Section shall not operate to impair any contract or | 10 |
| vested right
heretofore acquired under any law or laws | 11 |
| continued in this Article, nor
to preclude the right to a | 12 |
| refund. No refund paid to any person who is
convicted of a | 13 |
| felony relating to or arising out of or in connection with
the | 14 |
| person's service as an employee shall include employer | 15 |
| contributions or
interest thereon or, in the case of the | 16 |
| self-managed plan authorized under Section
15-158.2, any | 17 |
| employer contributions or investment return on such employer
| 18 |
| contributions.
| 19 |
| All persons entering service subsequent to July 9, 1955 | 20 |
| shall be deemed to
have consented to the provisions of this | 21 |
| Section as a condition of coverage.
| 22 |
| (Source: P.A. 93-347, eff. 7-24-03.)
| 23 |
| (40 ILCS 5/15-190) (from Ch. 108 1/2, par. 15-190)
| 24 |
| Sec. 15-190. Persons under legal disability. If a person is | 25 |
| under legal
disability when any right or privilege accrues to | 26 |
| him or her under this
Article, a guardian may be appointed | 27 |
| pursuant to law, and may, on behalf of
such person, claim and | 28 |
| exercise any such right or privilege with the same
force and | 29 |
| effect as if the person had not been under a legal disability | 30 |
| and
had claimed or exercised such right or privilege.
| 31 |
| If a person's application for benefits or a physician's | 32 |
| certificate
on file with the board shows that the person is | 33 |
| under a legal disability, the
benefits payable under this | 34 |
| Article may be paid (1) directly to the person
under legal
|
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LRB094 07048 AMC 37192 b |
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| disability, (2) to any person who has legally qualified and is | 2 |
| acting as
guardian of the property of the person under legal | 3 |
| disability, (3) to either
parent of the person under legal | 4 |
| disability or any adult person with whom the
person under legal | 5 |
| disability may at the time be living, provided only that
such | 6 |
| parent or adult person to whom any amount is to be paid shall | 7 |
| have advised
the board in writing that such amount will be held | 8 |
| or used for the benefit of
the person under legal disability, | 9 |
| or (4) to the trustee of any
trust created for the sole benefit | 10 |
| of the person under legal disability while
that person is | 11 |
| living, provided only that
the trustee of such trust to whom | 12 |
| any amount is to be paid shall have advised
the board in | 13 |
| writing that such amount will be held or used for the benefit | 14 |
| of
the person under legal disability. The system shall not be | 15 |
| required to
determine the validity of the trust or any of the | 16 |
| terms thereof. The
representation of the trustee that the trust | 17 |
| meets the requirements of this
Section shall be conclusive as | 18 |
| to the system. The written receipt of the
payment by the person | 19 |
| under legal disability or by the other person who receives such | 20 |
| payment
shall be an absolute discharge of the system's | 21 |
| liability in
respect of the amount so paid.
| 22 |
| (Source: P.A. 93-347, eff. 7-24-03.)
| 23 |
| (40 ILCS 5/15-191) (from Ch. 108 1/2, par. 15-191)
| 24 |
| Sec. 15-191. Payment of benefits to minors. If any benefits | 25 |
| under this Article become payable to a minor, the board
may | 26 |
| make payment (1) directly to the minor, (2) to any person who | 27 |
| has
legally qualified and is acting as guardian of the minor's | 28 |
| person or
property in any jurisdiction, (3) to either parent of | 29 |
| the minor or to
any adult person with whom the minor may at the | 30 |
| time be living, provided
only that the parent or other person | 31 |
| to whom any amount is to be paid shall
have advised the board | 32 |
| in writing that such amount
will be held or used for the | 33 |
| benefit of the minor, or (4) to the trustee of
any trust | 34 |
| created for the sole benefit of the
minor while that minor is | 35 |
| living, provided only that the trustee of such trust
to whom |
|
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LRB094 07048 AMC 37192 b |
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| any amount is to be paid shall have advised the board in | 2 |
| writing that
such amount will be held or used for the benefit | 3 |
| of the minor. The system
shall not be required to determine the | 4 |
| validity of the trust or any of the
terms thereof. The | 5 |
| representation of the trustee that the trust meets the
| 6 |
| requirements of this Section shall be conclusive as to the | 7 |
| system. The
written receipt of the payment by the minor, | 8 |
| parent, trustee, or other person who receives
such payment | 9 |
| shall be an absolute discharge of the system's liability in
| 10 |
| respect of the amount so paid.
| 11 |
| (Source: P.A. 90-65, eff. 7-7-97; 90-511, eff. 8-22-97.)
| 12 |
| Section 99. Effective date. This Act takes effect upon | 13 |
| becoming law.
|
|