The Illinois General Assembly offers the Google Translate™ service for visitor convenience. In no way should it be considered accurate as to the translation of any content herein.
Visitors of the Illinois General Assembly website are encouraged to use other translation services available on the internet.
The English language version is always the official and authoritative version of this website.
NOTE: To return to the original English language version, select the "Show Original" button on the Google Translate™ menu bar at the top of the window.
093_HB0580sam001
LRB093 05656 EFG 17166 a
1 AMENDMENT TO HOUSE BILL 580
2 AMENDMENT NO. . Amend House Bill 580 by replacing
3 the title with the following:
4 "AN ACT in relation to public employee benefits."; and
5 by replacing everything after the enacting clause with the
6 following:
7 "Section 5. The Illinois Pension Code is amended by
8 changing Sections 2-119.1, 5-167.2, 5-167.4, 5-167.5,
9 6-128.2, 6-128.4, 6-164.2, 8-137, 8-138, 8-150.1, 8-164.1,
10 8-167, 8-174.1, 9-185, 11-134, 11-134.1, 11-145.1, 11-160.1,
11 11-163, 11-167, 11-170.1, 13-301, 13-302, 13-306, 13-314,
12 13-402, 13-502, 13-601, 13-603, 14-104, 15-159, and 16-128
13 and adding Sections 8-150.2, 8-164.2, 8-230.8, 11-145.2,
14 11-160.2, 11-221.4, and 15-159.1 as follows:
15 (40 ILCS 5/2-119.1) (from Ch. 108 1/2, par. 2-119.1)
16 Sec. 2-119.1. Automatic increase in retirement annuity.
17 (a) A participant who retires after June 30, 1967, and
18 who has not received an initial increase under this Section
19 before the effective date of this amendatory Act of 1991,
20 shall, in January or July next following the first
21 anniversary of retirement, whichever occurs first, and in the
-2- LRB093 05656 EFG 17166 a
1 same month of each year thereafter, but in no event prior to
2 age 60, have the amount of the originally granted retirement
3 annuity increased as follows: for each year through 1971, 1
4 1/2%; for each year from 1972 through 1979, 2%; and for 1980
5 and each year thereafter, 3%. Annuitants who have received
6 an initial increase under this subsection prior to the
7 effective date of this amendatory Act of 1991 shall continue
8 to receive their annual increases in the same month as the
9 initial increase.
10 (b) Beginning January 1, 1990, for eligible participants
11 who remain in service after attaining 20 years of creditable
12 service, the 3% increases provided under subsection (a) shall
13 begin to accrue on the January 1 next following the date upon
14 which the participant (1) attains age 55, or (2) attains 20
15 years of creditable service, whichever occurs later, and
16 shall continue to accrue while the participant remains in
17 service; such increases shall become payable on January 1 or
18 July 1, whichever occurs first, next following the first
19 anniversary of retirement. For any person who has service
20 credit in the System for the entire period from January 15,
21 1969 through December 31, 1992, regardless of the date of
22 termination of service, the reference to age 55 in clause (1)
23 of this subsection (b) shall be deemed to mean age 50.
24 This subsection (b) does not apply to any person who
25 first becomes a member of the System after the effective date
26 of this amendatory Act of the 93rd General Assembly.
27 (c) The foregoing provisions relating to automatic
28 increases are not applicable to a participant who retires
29 before having made contributions (at the rate prescribed in
30 Section 2-126) for automatic increases for less than the
31 equivalent of one full year. However, in order to be
32 eligible for the automatic increases, such a participant may
33 make arrangements to pay to the system the amount required to
34 bring the total contributions for the automatic increase to
-3- LRB093 05656 EFG 17166 a
1 the equivalent of one year's contributions based upon his or
2 her last salary.
3 (d) A participant who terminated service prior to July
4 1, 1967, with at least 14 years of service is entitled to an
5 increase in retirement annuity beginning January, 1976, and
6 to additional increases in January of each year thereafter.
7 The initial increase shall be 1 1/2% of the originally
8 granted retirement annuity multiplied by the number of full
9 years that the annuitant was in receipt of such annuity
10 prior to January 1, 1972, plus 2% of the originally granted
11 retirement annuity for each year after that date. The
12 subsequent annual increases shall be at the rate of 2% of the
13 originally granted retirement annuity for each year through
14 1979 and at the rate of 3% for 1980 and thereafter.
15 (e) Beginning January 1, 1990, all automatic annual
16 increases payable under this Section shall be calculated as a
17 percentage of the total annuity payable at the time of the
18 increase, including previous increases granted under this
19 Article.
20 (Source: P.A. 86-273; 87-794; 87-1265.)
21 (40 ILCS 5/5-167.2) (from Ch. 108 1/2, par. 5-167.2)
22 Sec. 5-167.2. Retirement before September 1, 1967. A
23 retired policeman, qualifying for minimum annuity or who
24 retired from service with 20 or more years of service, before
25 September 1, 1967, shall, in January of the year following
26 the year he attains the age of 65, or in January of the year
27 1970, if then more than 65 years of age, have his then fixed
28 and payable monthly annuity increased by an amount equal to
29 2% of the original grant of annuity, for each year the
30 policeman was in receipt of annuity payments after the year
31 in which he attains, or did attain the age of 63. An
32 additional 2% increase in such then fixed and payable
33 original granted annuity shall accrue in each January
-4- LRB093 05656 EFG 17166 a
1 thereafter. Beginning January 1, 1986, the rate of such
2 increase shall be 3% instead of 2%.
3 The provisions of the preceding paragraph of this Section
4 apply only to a retired policeman eligible for such increases
5 in his annuity who contributes to the Fund a sum equal to $5
6 for each full year of credited service upon which his annuity
7 was computed. All such sums contributed shall be placed in a
8 Supplementary Payment Reserve and shall be used for the
9 purposes of such Fund account.
10 Beginning with the monthly annuity payment due in July,
11 1982, the fixed and granted monthly annuity payment for any
12 policeman who retired from the service, before September 1,
13 1976, at age 50 or over with 20 or more years of service and
14 entitled to an annuity on January 1, 1974, shall be not less
15 than $400. It is the intent of the General Assembly that the
16 change made in this Section by this amendatory Act of 1982
17 shall apply retroactively to July 1, 1982.
18 Beginning with the monthly annuity payment due on January
19 1, 1986, the fixed and granted monthly annuity payment for
20 any policeman who retired from the service before January 1,
21 1986, at age 50 or over with 20 or more years of service, or
22 any policeman who retired from service due to termination of
23 disability and who is entitled to an annuity on January 1,
24 1986, shall be not less than $475.
25 Beginning with the monthly annuity payment due on January
26 1, 1992, the fixed and granted monthly annuity payment for
27 any policeman who retired from the service before January 1,
28 1992, at age 50 or over with 20 or more years of service, and
29 for any policeman who retired from service due to termination
30 of disability and who is entitled to an annuity on January 1,
31 1992, shall be not less than $650.
32 Beginning with the monthly annuity payment due on January
33 1, 1993, the fixed and granted monthly annuity payment for
34 any policeman who retired from the service before January 1,
-5- LRB093 05656 EFG 17166 a
1 1993, at age 50 or over with 20 or more years of service, and
2 for any policeman who retired from service due to termination
3 of disability and who is entitled to an annuity on January 1,
4 1993, shall be not less than $750.
5 Beginning with the monthly annuity payment due on January
6 1, 1994, the fixed and granted monthly annuity payment for
7 any policeman who retired from the service before January 1,
8 1994, at age 50 or over with 20 or more years of service, and
9 for any policeman who retired from service due to termination
10 of disability and who is entitled to an annuity on January 1,
11 1994, shall be not less than $850.
12 Beginning with the monthly annuity payment due on January
13 1, 2004, the fixed and granted monthly annuity payment for
14 any policeman who retired from the service before January 1,
15 2004, at age 50 or over with 20 or more years of service, and
16 for any policeman who retired from service due to termination
17 of disability and who is entitled to an annuity on January 1,
18 2004, shall be not less than $950.
19 Beginning with the monthly annuity payment due on January
20 1, 2005, the fixed and granted monthly annuity payment for
21 any policeman who retired from the service before January 1,
22 2005, at age 50 or over with 20 or more years of service, and
23 for any policeman who retired from service due to termination
24 of disability and who is entitled to an annuity on January 1,
25 2005, shall be not less than $1,050.
26 The difference in amount between the original fixed and
27 granted monthly annuity of any such policeman on the date of
28 his retirement from the service and the monthly annuity
29 provided for in the immediately preceding paragraph shall be
30 paid as a supplement in the manner set forth in the
31 immediately following paragraph.
32 To defray the annual cost of the increases indicated in
33 the preceding part of this Section, the annual interest
34 income accruing from investments held by this Fund, exclusive
-6- LRB093 05656 EFG 17166 a
1 of gains or losses on sales or exchanges of assets during the
2 year, over and above 4% a year shall be used to the extent
3 necessary and available to finance the cost of such increases
4 for the following year and such amount shall be transferred
5 as of the end of each year beginning with the year 1969 to a
6 Fund account designated as the Supplementary Payment Reserve
7 from the Interest and Investment Reserve set forth in Section
8 5-207.
9 In the event the funds in the Supplementary Payment
10 Reserve in any year arising from: (1) the interest income
11 accruing in the preceding year above 4% a year and (2) the
12 contributions by retired persons are insufficient to make the
13 total payments to all persons entitled to the annuity
14 specified in this Section and (3) any interest earnings over
15 4% a year beginning with the year 1969 which were not
16 previously used to finance such increases and which were
17 transferred to the Prior Service Annuity Reserve, may be used
18 to the extent necessary and available to provide sufficient
19 funds to finance such increases for the current year and such
20 sums shall be transferred from the Prior Service Annuity
21 Reserve. In the event the total money available in the
22 Supplementary Payment Reserve from such sources are
23 insufficient to make the total payments to all persons
24 entitled to such increases for the year, a proportionate
25 amount computed as the ratio of the money available to the
26 total of the total payments specified for that year shall be
27 paid to each person for that year.
28 The Fund shall be obligated for the payment of the
29 increases in annuity as provided for in this Section only to
30 the extent that the assets for such purpose are available.
31 (Source: P.A. 91-357, eff. 7-29-99.)
32 (40 ILCS 5/5-167.4) (from Ch. 108 1/2, par. 5-167.4)
33 Sec. 5-167.4. Widow annuitant minimum annuity.
-7- LRB093 05656 EFG 17166 a
1 (a) Notwithstanding any other provision of this Article,
2 beginning January 1, 1996, the minimum amount of widow's
3 annuity payable to any person who is entitled to receive a
4 widow's annuity under this Article is $700 per month, without
5 regard to whether the deceased policeman is in service on or
6 after the effective date of this amendatory Act of 1995.
7 Notwithstanding any other provision of this Article,
8 beginning January 1, 1999, the minimum amount of widow's
9 annuity payable to any person who is entitled to receive a
10 widow's annuity under this Article is $800 per month, without
11 regard to whether the deceased policeman is in service on or
12 after the effective date of this amendatory Act of 1998.
13 Notwithstanding any other provision of this Article,
14 beginning January 1, 2004, the minimum amount of widow's
15 annuity payable to any person who is entitled to receive a
16 widow's annuity under this Article is $900 per month, without
17 regard to whether the deceased policeman is in service on or
18 after the effective date of this amendatory Act of the 93rd
19 General Assembly.
20 Notwithstanding any other provision of this Article,
21 beginning January 1, 2005, the minimum amount of widow's
22 annuity payable to any person who is entitled to receive a
23 widow's annuity under this Article is $1,000 per month,
24 without regard to whether the deceased policeman is in
25 service on or after the effective date of this amendatory Act
26 of the 93rd General Assembly.
27 (b) Effective January 1, 1994, the minimum amount of
28 widow's annuity shall be $700 per month for the following
29 classes of widows, without regard to whether the deceased
30 policeman is in service on or after the effective date of
31 this amendatory Act of 1993: (1) the widow of a policeman who
32 dies in service with at least 10 years of service credit, or
33 who dies in service after June 30, 1981; and (2) the widow of
34 a policeman who withdraws from service with 20 or more years
-8- LRB093 05656 EFG 17166 a
1 of service credit and does not withdraw a refund, provided
2 that the widow is married to the policeman before he
3 withdraws from service.
4 (c) The city, in addition to the contributions otherwise
5 made by it under the other provisions of this Article, shall
6 make such contributions as are necessary for the minimum
7 widow's annuities provided under this Section in the manner
8 prescribed in Section 5-175.
9 (Source: P.A. 89-12, eff. 4-20-95; 90-766, eff. 8-14-98.)
10 (40 ILCS 5/5-167.5) (from Ch. 108 1/2, par. 5-167.5)
11 Sec. 5-167.5. Payments to cityGroup health benefit.
12 (a) For the purposes of this Section, "city annuitant"
13 means a person receiving an age and service annuity, a
14 widow's annuity, a child's annuity, or a minimum annuity
15 under this Article as a direct result of previous employment
16 by the City of Chicago ("the city").
17 (b) The board shall pay to the city, on behalf of the
18 board's city annuitants who participate in any of the city's
19 health care plans, the following amounts:
20 (1) From July 1, 2003 through June 30, 2008, $85
21 per month for each such annuitant who is not eligible to
22 receive Medicare benefits and $55 per month for each such
23 annuitant who is eligible to receive Medicare benefits.
24 (2) From July 1, 2008 through June 30, 2013, $95
25 per month for each such annuitant who is not eligible to
26 receive Medicare benefits and $65 per month for each such
27 annuitant who is eligible to receive Medicare benefits.
28 The payments described in this subsection shall be paid
29 from the tax levy authorized under Section 5-168; such
30 amounts shall be credited to the reserve for group hospital
31 care and group medical and surgical plan benefits, and all
32 payments to the city required under this subsection shall be
33 charged against it.
-9- LRB093 05656 EFG 17166 a
1 (c) The city health care plans referred to in this
2 Section and the board's payments to the city under this
3 Section are not and shall not be construed to be pension or
4 retirement benefits for the purposes of Section 5 of Article
5 XIII of the Illinois Constitution of 1970.
6 (a) For the purposes of this Section: (1) "annuitant"
7 means a person receiving an age and service annuity, a prior
8 service annuity, a widow's annuity, a widow's prior service
9 annuity, or a minimum annuity, under Article 5, 6, 8 or 11,
10 by reason of previous employment by the City of Chicago
11 (hereinafter, in this Section, "the city"); (2) "Medicare
12 Plan annuitant" means an annuitant described in item (1) who
13 is eligible for Medicare benefits; and (3) "non-Medicare Plan
14 annuitant" means an annuitant described in item (1) who is
15 not eligible for Medicare benefits.
16 (b) The city shall offer group health benefits to
17 annuitants and their eligible dependents through June 30,
18 2003. The basic city health care plan available as of June
19 30, 1988 (hereinafter called the basic city plan) shall cease
20 to be a plan offered by the city, except as specified in
21 subparagraphs (4) and (5) below, and shall be closed to new
22 enrollment or transfer of coverage for any non-Medicare Plan
23 annuitant as of June 27, 1997. The city shall offer
24 non-Medicare Plan annuitants and their eligible dependents
25 the option of enrolling in its Annuitant Preferred Provider
26 Plan and may offer additional plans for any annuitant. The
27 city may amend, modify, or terminate any of its additional
28 plans at its sole discretion. If the city offers more than
29 one annuitant plan, the city shall allow annuitants to
30 convert coverage from one city annuitant plan to another,
31 except the basic city plan, during times designated by the
32 city, which periods of time shall occur at least annually.
33 For the period dating from June 27, 1997 through June 30,
34 2003, monthly premium rates may be increased for annuitants
-10- LRB093 05656 EFG 17166 a
1 during the time of their participation in non-Medicare plans,
2 except as provided in subparagraphs (1) through (4) of this
3 subsection.
4 (1) For non-Medicare Plan annuitants who retired
5 prior to January 1, 1988, the annuitant's share of
6 monthly premium for non-Medicare Plan coverage only shall
7 not exceed the highest premium rate chargeable under any
8 city non-Medicare Plan annuitant coverage as of December
9 1, 1996.
10 (2) For non-Medicare Plan annuitants who retire on
11 or after January 1, 1988, the annuitant's share of
12 monthly premium for non-Medicare Plan coverage only shall
13 be the rate in effect on December 1, 1996, with monthly
14 premium increases to take effect no sooner than April 1,
15 1998 at the lower of (i) the premium rate determined
16 pursuant to subsection (g) or (ii) 10% of the immediately
17 previous month's rate for similar coverage.
18 (3) In no event shall any non-Medicare Plan
19 annuitant's share of monthly premium for non-Medicare
20 Plan coverage exceed 10% of the annuitant's monthly
21 annuity.
22 (4) Non-Medicare Plan annuitants who are enrolled
23 in the basic city plan as of July 1, 1998 may remain in
24 the basic city plan, if they so choose, on the condition
25 that they are not entitled to the caps on rates set forth
26 in subparagraphs (1) through (3), and their premium rate
27 shall be the rate determined in accordance with
28 subsections (c) and (g).
29 (5) Medicare Plan annuitants who are currently
30 enrolled in the basic city plan for Medicare eligible
31 annuitants may remain in that plan, if they so choose,
32 through June 30, 2003. Annuitants shall not be allowed
33 to enroll in or transfer into the basic city plan for
34 Medicare eligible annuitants on or after July 1, 1999.
-11- LRB093 05656 EFG 17166 a
1 The city shall continue to offer annuitants a
2 supplemental Medicare Plan for Medicare eligible
3 annuitants through June 30, 2003, and the city may offer
4 additional plans to Medicare eligible annuitants in its
5 sole discretion. All Medicare Plan annuitant monthly
6 rates shall be determined in accordance with subsections
7 (c) and (g).
8 (c) The city shall pay 50% of the aggregated costs of
9 the claims or premiums, whichever is applicable, as
10 determined in accordance with subsection (g), of annuitants
11 and their dependents under all health care plans offered by
12 the city. The city may reduce its obligation by application
13 of price reductions obtained as a result of financial
14 arrangements with providers or plan administrators.
15 (d) From January 1, 1993 until June 30, 2003, the board
16 shall pay to the city on behalf of each of the board's
17 annuitants who chooses to participate in any of the city's
18 plans the following amounts: up to a maximum of $75 per month
19 for each such annuitant who is not qualified to receive
20 medicare benefits, and up to a maximum of $45 per month for
21 each such annuitant who is qualified to receive medicare
22 benefits.
23 The payments described in this subsection shall be paid
24 from the tax levy authorized under Section 5-168; such
25 amounts shall be credited to the reserve for group hospital
26 care and group medical and surgical plan benefits, and all
27 payments to the city required under this subsection shall be
28 charged against it.
29 (e) The city's obligations under subsections (b) and (c)
30 shall terminate on June 30, 2003, except with regard to
31 covered expenses incurred but not paid as of that date. This
32 subsection shall not affect other obligations that may be
33 imposed by law.
34 (f) The group coverage plans described in this Section
-12- LRB093 05656 EFG 17166 a
1 are not and shall not be construed to be pension or
2 retirement benefits for purposes of Section 5 of Article XIII
3 of the Illinois Constitution of 1970.
4 (g) For each annuitant plan offered by the city, the
5 aggregate cost of claims, as reflected in the claim records
6 of the plan administrator, shall be estimated by the city,
7 based upon a written determination by a qualified independent
8 actuary to be appointed and paid by the city and the board.
9 If the estimated annual cost for each annuitant plan offered
10 by the city is more than the estimated amount to be
11 contributed by the city for that plan pursuant to subsections
12 (b) and (c) during that year plus the estimated amounts to be
13 paid pursuant to subsection (d) and by the other pension
14 boards on behalf of other participating annuitants, the
15 difference shall be paid by all annuitants participating in
16 the plan, except as provided in subsection (b). The city,
17 based upon the determination of the independent actuary,
18 shall set the monthly amounts to be paid by the participating
19 annuitants. The board may deduct the amounts to be paid by
20 its annuitants from the participating annuitants' monthly
21 annuities.
22 If it is determined from the city's annual audit, or from
23 audited experience data, that the total amount paid by all
24 participating annuitants was more or less than the difference
25 between (1) the cost of providing the group health care
26 plans, and (2) the sum of the amount to be paid by the city
27 as determined under subsection (c) and the amounts paid by
28 all the pension boards, then the independent actuary and the
29 city shall account for the excess or shortfall in the next
30 year's payments by annuitants, except as provided in
31 subsection (b).
32 (h) An annuitant may elect to terminate coverage in a
33 plan at the end of any month, which election shall terminate
34 the annuitant's obligation to contribute toward payment of
-13- LRB093 05656 EFG 17166 a
1 the excess described in subsection (g).
2 (i) The city shall advise the board of all proposed
3 premium increases for health care at least 75 days prior to
4 the effective date of the change, and any increase shall be
5 prospective only.
6 (Source: P.A. 92-599, eff. 6-28-02.)
7 (40 ILCS 5/6-128.2) (from Ch. 108 1/2, par. 6-128.2)
8 Sec. 6-128.2. Minimum retirement annuities.
9 (a) Beginning with the monthly payment due in January,
10 1988, the monthly annuity payment for any person who is
11 entitled to receive a retirement annuity under this Article
12 in January, 1990 and has retired from service at age 50 or
13 over with 20 or more years of service, and for any person who
14 retires from service on or after January 24, 1990 at age 50
15 or over with 20 or more years of service, shall not be less
16 than $475 per month. The $475 minimum annuity is exclusive of
17 any automatic annual increases provided by Sections 6-164 and
18 6-164.1, but not exclusive of previous raises in the minimum
19 annuity as provided by any Section of this Article.
20 Beginning January 1, 1992, the minimum retirement annuity
21 payable to any person who has retired from service at age 50
22 or over with 20 or more years of service and is entitled to
23 receive a retirement annuity under this Article on that date,
24 or who retires from service at age 50 or over with 20 or more
25 years of service after that date, shall be $650 per month.
26 Beginning January 1, 1993, the minimum retirement annuity
27 payable to any person who has retired from service at age 50
28 or over with 20 or more years of service and is entitled to
29 receive a retirement annuity under this Article on that date,
30 or who retires from service at age 50 or over with 20 or more
31 years of service after that date, shall be $750 per month.
32 Beginning January 1, 1994, the minimum retirement annuity
33 payable to any person who has retired from service at age 50
-14- LRB093 05656 EFG 17166 a
1 or over with 20 or more years of service and is entitled to
2 receive a retirement annuity under this Article on that date,
3 or who retires from service at age 50 or over with 20 or more
4 years of service after that date, shall be $850 per month.
5 Beginning January 1, 2004, the minimum retirement annuity
6 payable to any person who has retired from service at age 50
7 or over with 20 or more years of service and is entitled to
8 receive a retirement annuity under this Article on that date,
9 or who retires from service at age 50 or over with 20 or more
10 years of service after that date, shall be $950 per month.
11 Beginning January 1, 2005, the minimum retirement annuity
12 payable to any person who has retired from service at age 50
13 or over with 20 or more years of service and is entitled to
14 receive a retirement annuity under this Article on that date,
15 or who retires from service at age 50 or over with 20 or more
16 years of service after that date, shall be $1,050 per month.
17 The minimum annuities established by this subsection (a)
18 do include previous raises in the minimum annuity as provided
19 by any Section of this Article, but do not include any sums
20 which have been added or will be added to annuity payments by
21 the automatic annual increases provided by Sections 6-164 and
22 6-164.1. Such annual increases shall be paid in addition to
23 the minimum amounts specified in this subsection.
24 (b) Notwithstanding any other provision of this Article,
25 beginning January 1, 1990, the minimum retirement annuity
26 payable to any person who is entitled to receive a retirement
27 annuity under this Article on that date shall be $475 per
28 month.
29 (c) This Section shall apply to all persons receiving a
30 retirement annuity under this Article, without regard to
31 whether the retirement of the fireman occurred prior to the
32 effective date of this amendatory Act of 1993.
33 (Source: P.A. 86-273; 86-1027; 86-1028; 86-1475; 87-849;
34 87-1265.)
-15- LRB093 05656 EFG 17166 a
1 (40 ILCS 5/6-128.4) (from Ch. 108 1/2, par. 6-128.4)
2 Sec. 6-128.4. Minimum widow's annuities.
3 (a) Notwithstanding any other provision of this Article,
4 beginning January 1, 1996, the minimum amount of widow's
5 annuity payable to any person who is entitled to receive a
6 widow's annuity under this Article is $700 per month, without
7 regard to whether the deceased fireman is in service on or
8 after the effective date of this amendatory Act of 1995.
9 (b) Notwithstanding Section 6-128.3, beginning January
10 1, 1994, the minimum widow's annuity under this Article shall
11 be $700 per month for (1) all persons receiving widow's
12 annuities on that date who are survivors of employees who
13 retired at age 50 or over with at least 20 years of service,
14 and (2) persons who become eligible for widow's annuities and
15 are survivors of employees who retired at age 50 or over with
16 at least 20 years of service.
17 (c) Notwithstanding Section 6-128.3, beginning January
18 1, 1999, the minimum widow's annuity under this Article shall
19 be $800 per month for (1) all persons receiving widow's
20 annuities on that date who are survivors of employees who
21 retired at age 50 or over with at least 20 years of service,
22 and (2) persons who become eligible for widow's annuities and
23 are survivors of employees who retired at age 50 or over with
24 at least 20 years of service.
25 (d) Notwithstanding Section 6-128.3, beginning January
26 1, 2004, the minimum widow's annuity under this Article shall
27 be $900 per month for (1) all persons receiving widow's
28 annuities on that date who are survivors of employees who
29 retired at age 50 or over with at least 20 years of service,
30 and (2) persons who become eligible for widow's annuities and
31 are survivors of employees who retired at age 50 or over with
32 at least 20 years of service.
33 (e) Notwithstanding Section 6-128.3, beginning January
34 1, 2005, the minimum widow's annuity under this Article shall
-16- LRB093 05656 EFG 17166 a
1 be $1,000 per month for (1) all persons receiving widow's
2 annuities on that date who are survivors of employees who
3 retired at age 50 or over with at least 20 years of service,
4 and (2) persons who become eligible for widow's annuities and
5 are survivors of employees who retired at age 50 or over with
6 at least 20 years of service.
7 (Source: P.A. 89-136, eff. 7-14-95; 90-766, eff. 8-14-98.)
8 (40 ILCS 5/6-164.2) (from Ch. 108 1/2, par. 6-164.2)
9 Sec. 6-164.2. Payments to cityGroup health benefit.
10 (a) For the purposes of this Section, "city annuitant"
11 means a person receiving an age and service annuity, a
12 widow's annuity, a child's annuity, or a minimum annuity
13 under this Article as a direct result of previous employment
14 by the City of Chicago ("the city").
15 (b) The board shall pay to the city, on behalf of the
16 board's city annuitants who participate in any of the city's
17 health care plans, the following amounts:
18 (1) From July 1, 2003 through June 30, 2008, $85
19 per month for each such annuitant who is not eligible to
20 receive Medicare benefits and $55 per month for each such
21 annuitant who is eligible to receive Medicare benefits.
22 (2) From July 1, 2008 through June 30, 2013, $95
23 per month for each such annuitant who is not eligible to
24 receive Medicare benefits and $65 per month for each such
25 annuitant who is eligible to receive Medicare benefits.
26 The payments described in this subsection shall be paid
27 from the tax levy authorized under Section 6-165; such
28 amounts shall be credited to the reserve for group hospital
29 care and group medical and surgical plan benefits, and all
30 payments to the city required under this subsection shall be
31 charged against it.
32 (c) The city health care plans referred to in this
33 Section and the board's payments to the city under this
-17- LRB093 05656 EFG 17166 a
1 Section are not and shall not be construed to be pension or
2 retirement benefits for the purposes of Section 5 of Article
3 XIII of the Illinois Constitution of 1970.
4 (a) For the purposes of this Section: (1) "annuitant"
5 means a person receiving an age and service annuity, a prior
6 service annuity, a widow's annuity, a widow's prior service
7 annuity, or a minimum annuity, under Article 5, 6, 8 or 11,
8 by reason of previous employment by the City of Chicago
9 (hereinafter, in this Section, "the city"); (2) "Medicare
10 Plan annuitant" means an annuitant described in item (1) who
11 is eligible for Medicare benefits; and (3) "non-Medicare Plan
12 annuitant" means an annuitant described in item (1) who is
13 not eligible for Medicare benefits.
14 (b) The city shall offer group health benefits to
15 annuitants and their eligible dependents through June 30,
16 2003. The basic city health care plan available as of June
17 30, 1988 (hereinafter called the basic city plan) shall cease
18 to be a plan offered by the city, except as specified in
19 subparagraphs (4) and (5) below, and shall be closed to new
20 enrollment or transfer of coverage for any non-Medicare Plan
21 annuitant as of June 27, 1997. The city shall offer
22 non-Medicare Plan annuitants and their eligible dependents
23 the option of enrolling in its Annuitant Preferred Provider
24 Plan and may offer additional plans for any annuitant. The
25 city may amend, modify, or terminate any of its additional
26 plans at its sole discretion. If the city offers more than
27 one annuitant plan, the city shall allow annuitants to
28 convert coverage from one city annuitant plan to another,
29 except the basic city plan, during times designated by the
30 city, which periods of time shall occur at least annually.
31 For the period dating from June 27, 1997 through June 30,
32 2003, monthly premium rates may be increased for annuitants
33 during the time of their participation in non-Medicare plans,
34 except as provided in subparagraphs (1) through (4) of this
-18- LRB093 05656 EFG 17166 a
1 subsection.
2 (1) For non-Medicare Plan annuitants who retired
3 prior to January 1, 1988, the annuitant's share of
4 monthly premium for non-Medicare Plan coverage only shall
5 not exceed the highest premium rate chargeable under any
6 city non-Medicare Plan annuitant coverage as of December
7 1, 1996.
8 (2) For non-Medicare Plan annuitants who retire on
9 or after January 1, 1988, the annuitant's share of
10 monthly premium for non-Medicare Plan coverage only shall
11 be the rate in effect on December 1, 1996, with monthly
12 premium increases to take effect no sooner than April 1,
13 1998 at the lower of (i) the premium rate determined
14 pursuant to subsection (g) or (ii) 10% of the immediately
15 previous month's rate for similar coverage.
16 (3) In no event shall any non-Medicare Plan
17 annuitant's share of monthly premium for non-Medicare
18 Plan coverage exceed 10% of the annuitant's monthly
19 annuity.
20 (4) Non-Medicare Plan annuitants who are enrolled
21 in the basic city plan as of July 1, 1998 may remain in
22 the basic city plan, if they so choose, on the condition
23 that they are not entitled to the caps on rates set forth
24 in subparagraphs (1) through (3), and their premium rate
25 shall be the rate determined in accordance with
26 subsections (c) and (g).
27 (5) Medicare Plan annuitants who are currently
28 enrolled in the basic city plan for Medicare eligible
29 annuitants may remain in that plan, if they so choose,
30 through June 30, 2003. Annuitants shall not be allowed
31 to enroll in or transfer into the basic city plan for
32 Medicare eligible annuitants on or after July 1, 1999.
33 The city shall continue to offer annuitants a
34 supplemental Medicare Plan for Medicare eligible
-19- LRB093 05656 EFG 17166 a
1 annuitants through June 30, 2003, and the city may offer
2 additional plans to Medicare eligible annuitants in its
3 sole discretion. All Medicare Plan annuitant monthly
4 rates shall be determined in accordance with subsections
5 (c) and (g).
6 (c) The city shall pay 50% of the aggregated costs of
7 the claims or premiums, whichever is applicable, as
8 determined in accordance with subsection (g), of annuitants
9 and their dependents under all health care plans offered by
10 the city. The city may reduce its obligation by application
11 of price reductions obtained as a result of financial
12 arrangements with providers or plan administrators.
13 (d) From January 1, 1993 until June 30, 2003, the board
14 shall pay to the city on behalf of each of the board's
15 annuitants who chooses to participate in any of the city's
16 plans the following amounts: up to a maximum of $75 per month
17 for each such annuitant who is not qualified to receive
18 medicare benefits, and up to a maximum of $45 per month for
19 each such annuitant who is qualified to receive medicare
20 benefits.
21 The payments described in this subsection shall be paid
22 from the tax levy authorized under Section 6-165; such
23 amounts shall be credited to the reserve for group hospital
24 care and group medical and surgical plan benefits, and all
25 payments to the city required under this subsection shall be
26 charged against it.
27 (e) The city's obligations under subsections (b) and (c)
28 shall terminate on June 30, 2003, except with regard to
29 covered expenses incurred but not paid as of that date. This
30 subsection shall not affect other obligations that may be
31 imposed by law.
32 (f) The group coverage plans described in this Section
33 are not and shall not be construed to be pension or
34 retirement benefits for purposes of Section 5 of Article XIII
-20- LRB093 05656 EFG 17166 a
1 of the Illinois Constitution of 1970.
2 (g) For each annuitant plan offered by the city, the
3 aggregate cost of claims, as reflected in the claim records
4 of the plan administrator, shall be estimated by the city,
5 based upon a written determination by a qualified independent
6 actuary to be appointed and paid by the city and the board.
7 If the estimated annual cost for each annuitant plan offered
8 by the city is more than the estimated amount to be
9 contributed by the city for that plan pursuant to subsections
10 (b) and (c) during that year plus the estimated amounts to be
11 paid pursuant to subsection (d) and by the other pension
12 boards on behalf of other participating annuitants, the
13 difference shall be paid by all annuitants participating in
14 the plan, except as provided in subsection (b). The city,
15 based upon the determination of the independent actuary,
16 shall set the monthly amounts to be paid by the participating
17 annuitants. The board may deduct the amounts to be paid by
18 its annuitants from the participating annuitants' monthly
19 annuities.
20 If it is determined from the city's annual audit, or from
21 audited experience data, that the total amount paid by all
22 participating annuitants was more or less than the difference
23 between (1) the cost of providing the group health care
24 plans, and (2) the sum of the amount to be paid by the city
25 as determined under subsection (c) and the amounts paid by
26 all the pension boards, then the independent actuary and the
27 city shall account for the excess or shortfall in the next
28 year's payments by annuitants, except as provided in
29 subsection (b).
30 (h) An annuitant may elect to terminate coverage in a
31 plan at the end of any month, which election shall terminate
32 the annuitant's obligation to contribute toward payment of
33 the excess described in subsection (g).
34 (i) The city shall advise the board of all proposed
-21- LRB093 05656 EFG 17166 a
1 premium increases for health care at least 75 days prior to
2 the effective date of the change, and any increase shall be
3 prospective only.
4 (Source: P.A. 92-599, eff. 6-28-02.)
5 (40 ILCS 5/8-137) (from Ch. 108 1/2, par. 8-137)
6 Sec. 8-137. Automatic increase in annuity.
7 (a) An employee who retired or retires from service
8 after December 31, 1959 and before January 1, 1987, having
9 attained age 60 or more, shall, in January of the year after
10 the year in which the first anniversary of retirement occurs,
11 have the amount of his then fixed and payable monthly annuity
12 increased by 1 1/2%, and such first fixed annuity as granted
13 at retirement increased by a further 1 1/2% in January of
14 each year thereafter. Beginning with January of the year
15 1972, such increases shall be at the rate of 2% in lieu of
16 the aforesaid specified 1 1/2%, and beginning with January of
17 the year 1984 such increases shall be at the rate of 3%.
18 Beginning in January of 1999, such increases shall be at the
19 rate of 3% of the currently payable monthly annuity,
20 including any increases previously granted under this
21 Article. An employee who retires on annuity after December
22 31, 1959 and before January 1, 1987, but before age 60, shall
23 receive such increases beginning in January of the year after
24 the year in which he attains age 60.
25 An employee who retires from service on or after January
26 1, 1987 shall, upon the first annuity payment date following
27 the first anniversary of the date of retirement, or upon the
28 first annuity payment date following attainment of age 60,
29 whichever occurs later, have his then fixed and payable
30 monthly annuity increased by 3%, and such annuity shall be
31 increased by an additional 3% of the original fixed annuity
32 on the same date each year thereafter. Beginning in January
33 of 1999, such increases shall be at the rate of 3% of the
-22- LRB093 05656 EFG 17166 a
1 currently payable monthly annuity, including any increases
2 previously granted under this Article.
3 (a-5) Notwithstanding the provisions of subsection (a),
4 upon the first annuity payment date following (1) the third
5 anniversary of retirement, (2) the attainment of age 53, or
6 (3) January 1, 2002, the date 60 days after the effective
7 date of this amendatory Act of the 92nd General Assembly,
8 whichever occurs latest, the monthly annuity of an employee
9 who retires on annuity prior to the attainment of age 60 and
10 who has not received an increase under subsection (a) shall
11 be increased by 3%, and the such annuity shall be increased
12 by an additional 3% of the current payable monthly annuity,
13 including any such increases previously granted under this
14 Article, on the same date each year thereafter. The
15 increases provided under this subsection are in lieu of the
16 increases provided in subsection (a).
17 (a-6) Notwithstanding the provisions of subsections (a)
18 and (a-5), for all calendar years following the year in which
19 this amendatory Act of the 93rd General Assembly takes
20 effect, an increase in annuity under this Section that would
21 otherwise take effect at any time during the year shall
22 instead take effect in January of that year.
23 (b) Subsections (a),and (a-5), and (a-6) are not
24 applicable to an employee retiring and receiving a term
25 annuity, as herein defined, nor to any otherwise qualified
26 employee who retires before he makes employee contributions
27 (at the 1/2 of 1% rate as provided in this Act) for this
28 additional annuity for not less than the equivalent of one
29 full year. Such employee, however, shall make arrangement to
30 pay to the fund a balance of such 1/2 of 1% contributions,
31 based on his final salary, as will bring such 1/2 of 1%
32 contributions, computed without interest, to the equivalent
33 of or completion of one year's contributions.
34 Beginning with January, 1960, each employee shall
-23- LRB093 05656 EFG 17166 a
1 contribute by means of salary deductions 1/2 of 1% of each
2 salary payment, concurrently with and in addition to the
3 employee contributions otherwise made for annuity purposes.
4 Each such additional contribution shall be credited to an
5 account in the prior service annuity reserve, to be used,
6 together with city contributions, to defray the cost of the
7 specified annuity increments. Any balance in such account at
8 the beginning of each calendar year shall be credited with
9 interest at the rate of 3% per annum.
10 Such additional employee contributions are not
11 refundable, except to an employee who withdraws and applies
12 for refund under this Article, and in cases where a term
13 annuity becomes payable. In such cases his contributions
14 shall be refunded, without interest, and charged to such
15 account in the prior service annuity reserve.
16 (Source: P.A. 92-599, eff. 6-28-02; 92-609, eff. 7-1-02;
17 revised 8-26-02.)
18 (40 ILCS 5/8-138) (from Ch. 108 1/2, par. 8-138)
19 Sec. 8-138. Minimum annuities - Additional provisions.
20 (a) An employee who withdraws after age 65 or more with
21 at least 20 years of service, for whom the amount of age and
22 service and prior service annuity combined is less than the
23 amount stated in this Section, shall from the date of
24 withdrawal, instead of all annuities otherwise provided, be
25 entitled to receive an annuity for life of $150 a year, plus
26 1 1/2% for each year of service, to and including 20 years,
27 and 1 2/3% for each year of service over 20 years, of his
28 highest average annual salary for any 4 consecutive years
29 within the last 10 years of service immediately preceding the
30 date of withdrawal.
31 An employee who withdraws after 20 or more years of
32 service, before age 65, shall be entitled to such annuity, to
33 begin not earlier than upon attained age of 55 years if under
-24- LRB093 05656 EFG 17166 a
1 such age at withdrawal, reduced by 2% for each full year or
2 fractional part thereof that his attained age is less than
3 65, plus an additional 2% reduction for each full year or
4 fractional part thereof that his attained age when annuity is
5 to begin is less than 60 so that the total reduction at age
6 55 shall be 30%.
7 (b) An employee who withdraws after July 1, 1957, at age
8 60 or over, with 20 or more years of service, for whom the
9 age and service and prior service annuity combined, is less
10 than the amount stated in this paragraph, shall, from the
11 date of withdrawal, instead of such annuities, be entitled to
12 receive an annuity for life equal to 1 2/3% for each year of
13 service, of the highest average annual salary for any 5
14 consecutive years within the last 10 years of service
15 immediately preceding the date of withdrawal; provided, that
16 in the case of any employee who withdraws on or after July 1,
17 1971, such employee age 60 or over with 20 or more years of
18 service, shall receive an annuity for life equal to 1.67% for
19 each of the first 10 years of service; 1.90% for each of the
20 next 10 years of service; 2.10% for each year of service in
21 excess of 20 but not exceeding 30; and 2.30% for each year of
22 service in excess of 30, based on the highest average annual
23 salary for any 4 consecutive years within the last 10 years
24 of service immediately preceding the date of withdrawal.
25 An employee who withdraws after July 1, 1957 and before
26 January 1, 1988, with 20 or more years of service, before age
27 60 years is entitled to annuity, to begin not earlier than
28 upon attained age of 55 years, if under such age at
29 withdrawal, as computed in the last preceding paragraph,
30 reduced 0.25% for each full month or fractional part thereof
31 that his attained age when annuity is to begin is less than
32 60 if the employee was born before January 1, 1936, or 0.5%
33 for each such month if the employee was born on or after
34 January 1, 1936.
-25- LRB093 05656 EFG 17166 a
1 Any employee born before January 1, 1936, who withdraws
2 with 20 or more years of service, and any employee with 20 or
3 more years of service who withdraws on or after January 1,
4 1988, may elect to receive, in lieu of any other employee
5 annuity provided in this Section, an annuity for life equal
6 to 1.80% for each of the first 10 years of service, 2.00% for
7 each of the next 10 years of service, 2.20% for each year of
8 service in excess of 20 but not exceeding 30, and 2.40% for
9 each year of service in excess of 30, of the highest average
10 annual salary for any 4 consecutive years within the last 10
11 years of service immediately preceding the date of
12 withdrawal, to begin not earlier than upon attained age of 55
13 years, if under such age at withdrawal, reduced 0.25% for
14 each full month or fractional part thereof that his attained
15 age when annuity is to begin is less than 60; except that an
16 employee retiring on or after January 1, 1988, at age 55 or
17 over but less than age 60, having at least 35 years of
18 service, or an employee retiring on or after July 1, 1990, at
19 age 55 or over but less than age 60, having at least 30 years
20 of service, or an employee retiring on or after the effective
21 date of this amendatory Act of 1997, at age 55 or over but
22 less than age 60, having at least 25 years of service, shall
23 not be subject to the reduction in retirement annuity because
24 of retirement below age 60.
25 However, in the case of an employee who retired on or
26 after January 1, 1985 but before January 1, 1988, at age 55
27 or older and with at least 35 years of service, and who was
28 subject under this subsection (b) to the reduction in
29 retirement annuity because of retirement below age 60, that
30 reduction shall cease to be effective January 1, 1991, and
31 the retirement annuity shall be recalculated accordingly.
32 Any employee who withdraws on or after July 1, 1990, with
33 20 or more years of service, may elect to receive, in lieu of
34 any other employee annuity provided in this Section, an
-26- LRB093 05656 EFG 17166 a
1 annuity for life equal to 2.20% for each year of service if
2 withdrawal is before January 1, 2002, 60 days after the
3 effective date of this amendatory Act of the 92nd General
4 Assembly, or 2.40% for each year of service if withdrawal is
5 on or after January 1, 2002, 60 days after the effective date
6 of this amendatory Act of the 92nd General Assembly or later,
7 of the highest average annual salary for any 4 consecutive
8 years within the last 10 years of service immediately
9 preceding the date of withdrawal, to begin not earlier than
10 upon attained age of 55 years, if under such age at
11 withdrawal, reduced 0.25% for each full month or fractional
12 part thereof that his attained age when annuity is to begin
13 is less than 60; except that an employee retiring at age 55
14 or over but less than age 60, having at least 30 years of
15 service, shall not be subject to the reduction in retirement
16 annuity because of retirement below age 60.
17 Any employee who withdraws on or after the effective date
18 of this amendatory Act of 1997 with 20 or more years of
19 service may elect to receive, in lieu of any other employee
20 annuity provided in this Section, an annuity for life equal
21 to 2.20% for each year of service, if withdrawal is before
22 January 1, 2002, 60 days after the effective date of this
23 amendatory Act of the 92nd General Assembly, or 2.40% for
24 each year of service if withdrawal is on or after January 1,
25 2002, 60 days after the effective date of this amendatory Act
26 of the 92nd General Assembly or later, of the highest average
27 annual salary for any 4 consecutive years within the last 10
28 years of service immediately preceding the date of
29 withdrawal, to begin not earlier than upon attainment of age
30 55 (age 50 if the employee has at least 30 years of service),
31 reduced 0.25% for each full month or remaining fractional
32 part thereof that the employee's attained age when annuity is
33 to begin is less than 60; except that an employee retiring at
34 age 50 or over with at least 30 years of service or at age 55
-27- LRB093 05656 EFG 17166 a
1 or over with at least 25 years of service shall not be
2 subject to the reduction in retirement annuity because of
3 retirement below age 60.
4 The maximum annuity payable under part (a) and (b) of
5 this Section shall not exceed 70% of highest average annual
6 salary in the case of an employee who withdraws prior to July
7 1, 1971, 75% if withdrawal takes place on or after July 1,
8 1971 and prior to January 1, 2002, 60 days after the
9 effective date of this amendatory Act of the 92nd General
10 Assembly, or 80% if withdrawal takes place on or after
11 January 1, 2002 is 60 days after the effective date of this
12 amendatory Act of the 92nd General Assembly or later. For
13 the purpose of the minimum annuity provided in this Section
14 $1,500 is considered the minimum annual salary for any year;
15 and the maximum annual salary for the computation of such
16 annuity is $4,800 for any year before 1953, $6000 for the
17 years 1953 to 1956, inclusive, and the actual annual salary,
18 as salary is defined in this Article, for any year
19 thereafter.
20 To preserve rights existing on December 31, 1959, for
21 participants and contributors on that date to the fund
22 created by the Court and Law Department Employees' Annuity
23 Act, who became participants in the fund provided for on
24 January 1, 1960, the maximum annual salary to be considered
25 for such persons for the years 1955 and 1956 is $7,500.
26 (c) For an employee receiving disability benefit, his
27 salary for annuity purposes under paragraphs (a) and (b) of
28 this Section, for all periods of disability benefit
29 subsequent to the year 1956, is the amount on which his
30 disability benefit was based.
31 (d) An employee with 20 or more years of service, whose
32 entire disability benefit credit period expires before
33 attainment of age 55 while still disabled for service, is
34 entitled upon withdrawal to the larger of (1) the minimum
-28- LRB093 05656 EFG 17166 a
1 annuity provided above, assuming he is then age 55, and
2 reducing such annuity to its actuarial equivalent as of his
3 attained age on such date or (2) the annuity provided from
4 his age and service and prior service annuity credits.
5 (e) The minimum annuity provisions do not apply to any
6 former municipal employee receiving an annuity from the fund
7 who re-enters service as a municipal employee, unless he
8 renders at least 3 years of additional service after the date
9 of re-entry.
10 (f) An employee in service on July 1, 1947, or who
11 became a contributor after July 1, 1947 and before attainment
12 of age 70, who withdraws after age 65, with less than 20
13 years of service for whom the annuity has been fixed under
14 this Article shall, instead of the annuity so fixed, receive
15 an annuity as follows:
16 Such amount as he could have received had the accumulated
17 amounts for annuity been improved with interest at the
18 effective rate to the date of his withdrawal, or to
19 attainment of age 70, whichever is earlier, and had the city
20 contributed to such earlier date for age and service annuity
21 the amount that it would have contributed had he been under
22 age 65, after the date his annuity was fixed in accordance
23 with this Article, and assuming his annuity were computed
24 from such accumulations as of his age on such earlier date.
25 The annuity so computed shall not exceed the annuity which
26 would be payable under the other provisions of this Section
27 if the employee was credited with 20 years of service and
28 would qualify for annuity thereunder.
29 (g) Instead of the annuity provided in this Article, an
30 employee having attained age 65 with at least 15 years of
31 service who withdraws from service on or after July 1, 1971
32 and whose annuity computed under other provisions of this
33 Article is less than the amount provided under this
34 paragraph, is entitled to a minimum annuity for life equal to
-29- LRB093 05656 EFG 17166 a
1 1% of the highest average annual salary, as salary is defined
2 and limited in this Section for any 4 consecutive years
3 within the last 10 years of service for each year of service,
4 plus the sum of $25 for each year of service. The annuity
5 shall not exceed 60% of such highest average annual salary.
6 (g-1) Instead of any other retirement annuity provided
7 in this Article, an employee who has at least 10 years of
8 service and withdraws from service on or after January 1,
9 1999 may elect to receive a retirement annuity for life,
10 beginning no earlier than upon attainment of age 60, equal to
11 2.2% if withdrawal is before January 1, 2002, 60 days after
12 the effective date of this amendatory Act of the 92nd General
13 Assembly or 2.4% if withdrawal is on or after January 1,
14 2002, 60 days after the effective date of this amendatory Act
15 of the 92nd General Assembly or later, of final average
16 salary for each year of service, subject to a maximum of 75%
17 of final average salary if withdrawal is before January 1,
18 2002, or 80% if withdrawal is on or after January 1, 2002.
19 For the purpose of calculating this annuity, "final average
20 salary" means the highest average annual salary for any 4
21 consecutive years in the last 10 years of service.
22 (h) The minimum annuities provided under this Section
23 shall be paid in equal monthly installments.
24 (i) The amendatory provisions of part (b) and (g) of
25 this Section shall be effective July 1, 1971 and apply in the
26 case of every qualifying employee withdrawing on or after
27 July 1, 1971.
28 (j) The amendatory provisions of this amendatory Act of
29 1985 (P.A. 84-23) relating to the discount of annuity because
30 of retirement prior to attainment of age 60, and to the
31 retirement formula, for those born before January 1, 1936,
32 shall apply only to qualifying employees withdrawing on or
33 after July 18, 1985.
34 (j-1) The changes made to this Section by Public Act
-30- LRB093 05656 EFG 17166 a
1 92-609this amendatory Act of the 92nd General Assembly
2 (increasing the retirement formula to 2.4% per year of
3 service and increasing the maximum to 80%) apply to persons
4 who withdraw from service on or after January 1, 2002,
5 regardless of whether that withdrawal takes place before the
6 effective date of thatthis amendatory Act. In the case of a
7 person who withdraws from service on or after January 1, 2002
8 but begins to receive a retirement annuity before July 1,
9 2002the effective date of this amendatory Act, the annuity
10 shall be recalculated, with the increase resulting from
11 Publicthis amendatory Act 92-609 accruing from the date the
12 retirement annuity began. The changes made by Public Act
13 92-609 control over the changes made by Public Act 92-599, as
14 provided in Section 95 of P.A. 92-609.
15 (k) Beginning on January 1, 1999, the minimum amount of
16 employee's annuity shall be $850 per month for life for the
17 following classes of employees, without regard to the fact
18 that withdrawal occurred prior to the effective date of this
19 amendatory Act of 1998:
20 (1) any employee annuitant alive and receiving a
21 life annuity on the effective date of this amendatory Act
22 of 1998, except a reciprocal annuity;
23 (2) any employee annuitant alive and receiving a
24 term annuity on the effective date of this amendatory Act
25 of 1998, except a reciprocal annuity;
26 (3) any employee annuitant alive and receiving a
27 reciprocal annuity on the effective date of this
28 amendatory Act of 1998, whose service in this fund is at
29 least 5 years;
30 (4) any employee annuitant withdrawing after age 60
31 on or after the effective date of this amendatory Act of
32 1998, with at least 10 years of service in this fund.
33 The increases granted under items (1), (2) and (3) of
34 this subsection (k) shall not be limited by any other Section
-31- LRB093 05656 EFG 17166 a
1 of this Act.
2 (l) Beginning on January 1, 2004, the minimum amount of
3 employee's annuity shall be $950 per month for life for the
4 following classes of employees, without regard to the fact
5 that withdrawal occurred prior to the effective date of this
6 amendatory Act of the 93rd General Assembly:
7 (1) any employee annuitant alive and receiving a
8 life annuity on the effective date of this amendatory Act
9 of the 93rd General Assembly, except a reciprocal
10 annuity;
11 (2) any employee annuitant alive and receiving a
12 term annuity on the effective date of this amendatory Act
13 of the 93rd General Assembly, except a reciprocal
14 annuity;
15 (3) any employee annuitant alive and receiving a
16 reciprocal annuity on the effective date of this
17 amendatory Act of the 93rd General Assembly, whose
18 service in this fund is at least 5 years;
19 (4) any employee annuitant withdrawing after age 60
20 on or after the effective date of this amendatory Act of
21 the 93rd General Assembly, with at least 10 years of
22 service in this fund.
23 The increases granted under items (1), (2) and (3) of
24 this subsection (l) shall not be limited by any other Section
25 of this Act.
26 (m) Beginning on January 1, 2005, the minimum amount of
27 employee's annuity shall be $1,050 per month for life for the
28 following classes of employees, without regard to the fact
29 that withdrawal occurred prior to the effective date of this
30 amendatory Act of the 93rd General Assembly:
31 (1) any employee annuitant alive and receiving a
32 life annuity on the effective date of this amendatory Act
33 of the 93rd General Assembly, except a reciprocal
34 annuity;
-32- LRB093 05656 EFG 17166 a
1 (2) any employee annuitant alive and receiving a
2 term annuity on the effective date of this amendatory Act
3 of the 93rd General Assembly, except a reciprocal
4 annuity;
5 (3) any employee annuitant alive and receiving a
6 reciprocal annuity on the effective date of this
7 amendatory Act of the 93rd General Assembly, whose
8 service in this fund is at least 5 years;
9 (4) any employee annuitant withdrawing after age 60
10 on or after the effective date of this amendatory Act of
11 the 93rd General Assembly, with at least 10 years of
12 service in this fund.
13 The increases granted under items (1), (2) and (3) of
14 this subsection (m) shall not be limited by any other Section
15 of this Act.
16 (Source: P.A. 92-599, eff. 6-28-02; 92-609, eff. 7-1-02;
17 revised 9-11-02.)
18 (40 ILCS 5/8-150.1) (from Ch. 108 1/2, par. 8-150.1)
19 Sec. 8-150.1. Minimum annuities for widows. The widow
20 (otherwise eligible for widow's annuity under other Sections
21 of this Article 8) of an employee hereinafter described, who
22 retires from service or dies while in the service subsequent
23 to the effective date of this amendatory provision, and for
24 which widow the amount of widow's annuity and widow's prior
25 service annuity combined, fixed or provided for such widow
26 under other provisions of this Article is less than the
27 amount provided in this Section, shall, from and after the
28 date her otherwise provided annuity would begin, in lieu of
29 such otherwise provided widow's and widow's prior service
30 annuity, be entitled to the following indicated amount of
31 annuity:
32 (a) The widow of any employee who dies while in service
33 on or after the date on which he attains age 60 if the death
-33- LRB093 05656 EFG 17166 a
1 occurs before July 1, 1990, or on or after the date on which
2 he attains age 55 if the death occurs on or after July 1,
3 1990, with at least 20 years of service, or on or after the
4 date on which he attains age 50 if the death occurs on or
5 after the effective date of this amendatory Act of 1997 with
6 at least 30 years of service, shall be entitled to an annuity
7 equal to one-half of the amount of annuity which her deceased
8 husband would have been entitled to receive had he withdrawn
9 from the service on the day immediately preceding the date of
10 his death, conditional upon such widow having attained the
11 age of 60 or more years on such date if the death occurs
12 before July 1, 1990, or age 55 or more if the death occurs on
13 or after July 1, 1990, or age 50 or more if the death occurs
14 on or after January 1, 1998 and the employee is age 50 or
15 over with at least 30 years of service or age 55 or over with
16 at least 25 years of service. Except as provided in
17 subsection (k), this widow's annuity shall not, however,
18 exceed the sum of $500 a month if the employee's death in
19 service occurs before January 23, 1987. The widow's annuity
20 shall not be limited to a maximum dollar amount if the
21 employee's death in service occurs on or after January 23,
22 1987.
23 If the employee dies in service before July 1, 1990, and
24 if such widow of such described employee shall not be 60 or
25 more years of age on such date of death, the amount provided
26 in the immediately preceding paragraph for a widow 60 or more
27 years of age, shall, in the case of such younger widow, be
28 reduced by 0.25% for each month that her then attained age is
29 less than 60 years if the employee was born before January 1,
30 1936 or dies in service on or after January 1, 1988, or by
31 0.5% for each month that her then attained age is less than
32 60 years if the employee was born on or after July 1, 1936
33 and dies in service before January 1, 1988.
34 If the employee dies in service on or after July 1, 1990,
-34- LRB093 05656 EFG 17166 a
1 and if the widow of the employee has not attained age 55 on
2 or before the employee's date of death, the amount otherwise
3 provided in this subsection (a) shall be reduced by 0.25% for
4 each month that her then attained age is less than 55 years;
5 except that if the employee dies in service on or after
6 January 1, 1998 at age 50 or over with at least 30 years of
7 service or at age 55 or over with at least 25 years of
8 service, there shall be no reduction due to the widow's age
9 if she has attained age 50 on or before the employee's date
10 of death, and if the widow has not attained age 50 on or
11 before the employee's date of death the amount otherwise
12 provided in this subsection (a) shall be reduced by 0.25% for
13 each month that her then attained age is less than 50 years.
14 (b) The widow of any employee who dies subsequent to the
15 date of his retirement on annuity, and who so retired on or
16 after the date on which he attained the age of 60 or more
17 years if retirement occurs before July 1, 1990, or on or
18 after the date on which he attained age 55 if retirement
19 occurs on or after July 1, 1990, with at least 20 years of
20 service, or on or after the date on which he attained age 50
21 if the retirement occurs on or after the effective date of
22 this amendatory Act of 1997 with at least 30 years of
23 service, shall be entitled to an annuity equal to one-half of
24 the amount of annuity which her deceased husband received as
25 of the date of his retirement on annuity, conditional upon
26 such widow having attained the age of 60 or more years on the
27 date of her husband's retirement on annuity if retirement
28 occurs before July 1, 1990, or age 55 or more if retirement
29 occurs on or after July 1, 1990, or age 50 or more if the
30 retirement on annuity occurs on or after January 1, 1998 and
31 the employee is age 50 or over with at least 30 years of
32 service or age 55 or over with at least 25 years of service.
33 Except as provided in subsection (k), this widow's annuity
34 shall not, however, exceed the sum of $500 a month if the
-35- LRB093 05656 EFG 17166 a
1 employee's death occurs before January 23, 1987. The widow's
2 annuity shall not be limited to a maximum dollar amount if
3 the employee's death occurs on or after January 23, 1987,
4 regardless of the date of retirement; provided that, if
5 retirement was before January 23, 1987, the employee or
6 eligible spouse repays the excess spouse refund with interest
7 at the effective rate from the date of refund to the date of
8 repayment.
9 If the date of the employee's retirement on annuity is
10 before July 1, 1990, and if such widow of such described
11 employee shall not have attained such age of 60 or more years
12 on such date of her husband's retirement on annuity, the
13 amount provided in the immediately preceding paragraph for a
14 widow 60 or more years of age on the date of her husband's
15 retirement on annuity, shall, in the case of such then
16 younger widow, be reduced by 0.25% for each month that her
17 then attained age was less than 60 years if the employee was
18 born before January 1, 1936 or withdraws from service on or
19 after January 1, 1988, or by 0.5% for each month that her
20 then attained age is less than 60 years if the employee was
21 born on or after January 1, 1936 and withdraws from service
22 before January 1, 1988.
23 If the date of the employee's retirement on annuity is on
24 or after July 1, 1990, and if the widow of the employee has
25 not attained age 55 by the date of the employee's retirement
26 on annuity, the amount otherwise provided in this subsection
27 (b) shall be reduced by 0.25% for each month that her then
28 attained age is less than 55 years; except that if the
29 employee retires on annuity on or after January 1, 1998 at
30 age 50 or over with at least 30 years of service or at age 55
31 or over with at least 25 years of service, there shall be no
32 reduction due to the widow's age if she has attained age 50
33 on or before the employee's date of death, and if the widow
34 has not attained age 50 on or before the employee's date of
-36- LRB093 05656 EFG 17166 a
1 death the amount otherwise provided in this subsection (b)
2 shall be reduced by 0.25% for each month that her then
3 attained age is less than 50 years.
4 (c) The foregoing provisions relating to minimum
5 annuities for widows shall not apply to the widow of any
6 former municipal employee receiving an annuity from the fund
7 on August 9, 1965 or on the effective date of this amendatory
8 provision, who re-enters service as a municipal employee,
9 unless such employee renders at least 3 years of additional
10 service after the date of re-entry.
11 (d) In computing the amount of annuity which the husband
12 specified in the foregoing paragraphs (a) and (b) of this
13 Section would have been entitled to receive, or received,
14 such amount shall be the annuity to which such husband would
15 have been, or was entitled, before reduction in the amount of
16 his annuity for the purposes of the voluntary optional
17 reversionary annuity provided for in Section 8-139 of this
18 Article, if such option was elected.
19 (e) (Blank).
20 (f) (Blank).
21 (g) The amendatory provisions of this amendatory Act of
22 1985 relating to annuity discount because of age for widows
23 of employees born before January 1, 1936, shall apply only to
24 qualifying widows of employees withdrawing or dying in
25 service on or after July 18, 1985.
26 (h) Beginning on January 1, 1999, the minimum amount of
27 widow's annuity shall be $800 per month for life for the
28 following classes of widows, without regard to the fact that
29 the death of the employee occurred prior to the effective
30 date of this amendatory Act of 1998:
31 (1) any widow annuitant alive and receiving a life
32 annuity on the effective date of this amendatory Act of
33 1998, except a reciprocal annuity;
34 (2) any widow annuitant alive and receiving a term
-37- LRB093 05656 EFG 17166 a
1 annuity on the effective date of this amendatory Act of
2 1998, except a reciprocal annuity;
3 (3) any widow annuitant alive and receiving a
4 reciprocal annuity on the effective date of this
5 amendatory Act of 1998, whose employee spouse's service
6 in this fund was at least 5 years;
7 (4) the widow of an employee with at least 10 years
8 of service in this fund who dies after retirement, if the
9 retirement occurred prior to the effective date of this
10 amendatory Act of 1998;
11 (5) the widow of an employee with at least 10 years
12 of service in this fund who dies after retirement, if
13 withdrawal occurs on or after the effective date of this
14 amendatory Act of 1998;
15 (6) the widow of an employee who dies in service
16 with at least 5 years of service in this fund, if the
17 death in service occurs on or after the effective date of
18 this amendatory Act of 1998.
19 The increases granted under items (1), (2), (3) and (4)
20 of this subsection (h) shall not be limited by any other
21 Section of this Act.
22 (h-5) Beginning on January 1, 2004, the minimum amount
23 of widow's annuity shall be $900 per month for life for the
24 following classes of widows, without regard to the fact that
25 the death of the employee occurred prior to the effective
26 date of this amendatory Act of the 93rd General Assembly:
27 (1) any widow annuitant alive and receiving a life
28 annuity on the effective date of this amendatory Act of
29 the 93rd General Assembly, except a reciprocal annuity;
30 (2) any widow annuitant alive and receiving a term
31 annuity on the effective date of this amendatory Act of
32 the 93rd General Assembly, except a reciprocal annuity;
33 (3) any widow annuitant alive and receiving a
34 reciprocal annuity on the effective date of this
-38- LRB093 05656 EFG 17166 a
1 amendatory Act of the 93rd General Assembly, whose
2 employee spouse's service in this fund was at least 5
3 years;
4 (4) the widow of an employee with at least 10 years
5 of service in this fund who dies after retirement, if the
6 retirement occurred prior to the effective date of this
7 amendatory Act of the 93rd General Assembly;
8 (5) the widow of an employee with at least 10 years
9 of service in this fund who dies after retirement, if
10 withdrawal occurs on or after the effective date of this
11 amendatory Act of the 93rd General Assembly;
12 (6) the widow of an employee who dies in service
13 with at least 5 years of service in this fund, if the
14 death in service occurs on or after the effective date of
15 this amendatory Act of the 93rd General Assembly.
16 The increases granted under items (1), (2), (3) and (4)
17 of this subsection (h-5) shall not be limited by any other
18 Section of this Act.
19 (h-10) Beginning on January 1, 2005, the minimum amount
20 of widow's annuity shall be $1,000 per month for life for the
21 following classes of widows, without regard to the fact that
22 the death of the employee occurred prior to the effective
23 date of this amendatory Act of the 93rd General Assembly:
24 (1) any widow annuitant alive and receiving a life
25 annuity on the effective date of this amendatory Act of
26 the 93rd General Assembly, except a reciprocal annuity;
27 (2) any widow annuitant alive and receiving a term
28 annuity on the effective date of this amendatory Act of
29 the 93rd General Assembly, except a reciprocal annuity;
30 (3) any widow annuitant alive and receiving a
31 reciprocal annuity on the effective date of this
32 amendatory Act of the 93rd General Assembly, whose
33 employee spouse's service in this fund was at least 5
34 years;
-39- LRB093 05656 EFG 17166 a
1 (4) the widow of an employee with at least 10 years
2 of service in this fund who dies after retirement, if the
3 retirement occurred prior to the effective date of this
4 amendatory Act of the 93rd General Assembly;
5 (5) the widow of an employee with at least 10 years
6 of service in this fund who dies after retirement, if
7 withdrawal occurs on or after the effective date of this
8 amendatory Act of the 93rd General Assembly;
9 (6) the widow of an employee who dies in service
10 with at least 5 years of service in this fund, if the
11 death in service occurs on or after the effective date of
12 this amendatory Act of the 93rd General Assembly.
13 The increases granted under items (1), (2), (3) and (4)
14 of this subsection (h-10) shall not be limited by any other
15 Section of this Act.
16 (i) The widow of an employee who retired or died in
17 service on or after January 1, 1985 and before July 1, 1990,
18 at age 55 or older, and with at least 35 years of service
19 credit, shall be entitled to have her widow's annuity
20 increased, effective January 1, 1991, to an amount equal to
21 50% of the retirement annuity that the deceased employee
22 received on the date of retirement, or would have been
23 eligible to receive if he had retired on the day preceding
24 the date of his death in service, provided that if the widow
25 had not attained age 60 by the date of the employee's
26 retirement or death in service, the amount of the annuity
27 shall be reduced by 0.25% for each month that her then
28 attained age was less than age 60 if the employee's
29 retirement or death in service occurred on or after January
30 1, 1988, or by 0.5% for each month that her attained age is
31 less than age 60 if the employee's retirement or death in
32 service occurred prior to January 1, 1988. However, in cases
33 where a refund of excess contributions for widow's annuity
34 has been paid by the Fund, the increase in benefit provided
-40- LRB093 05656 EFG 17166 a
1 by this subsection (i) shall be contingent upon repayment of
2 the refund to the Fund with interest at the effective rate
3 from the date of refund to the date of payment.
4 (j) If a deceased employee is receiving a retirement
5 annuity at the time of death and that death occurs on or
6 after June 27, 1997, the widow may elect to receive, in lieu
7 of any other annuity provided under this Article, 50% of the
8 deceased employee's retirement annuity at the time of death
9 reduced by 0.25% for each month that the widow's age on the
10 date of death is less than 55; except that if the employee
11 dies on or after January 1, 1998 and withdrew from service on
12 or after June 27, 1997 at age 50 or over with at least 30
13 years of service or at age 55 or over with at least 25 years
14 of service, there shall be no reduction due to the widow's
15 age if she has attained age 50 on or before the employee's
16 date of death, and if the widow has not attained age 50 on or
17 before the employee's date of death the amount otherwise
18 provided in this subsection (j) shall be reduced by 0.25% for
19 each month that her age on the date of death is less than 50
20 years. However, in cases where a refund of excess
21 contributions for widow's annuity has been paid by the Fund,
22 the benefit provided by this subsection (j) is contingent
23 upon repayment of the refund to the Fund with interest at the
24 effective rate from the date of refund to the date of
25 payment.
26 (k) For widows of employees who died before January 23,
27 1987 after retirement on annuity or in service, the maximum
28 dollar amount limitation on widow's annuity shall cease to
29 apply, beginning with the first annuity payment after the
30 effective date of this amendatory Act of 1997; except that if
31 a refund of excess contributions for widow's annuity has been
32 paid by the Fund, the increase resulting from this subsection
33 (k) shall not begin before the refund has been repaid to the
34 Fund, together with interest at the effective rate from the
-41- LRB093 05656 EFG 17166 a
1 date of the refund to the date of repayment.
2 (l) In lieu of any other annuity provided in this
3 Article, an eligible spouse of an employee who dies in
4 service at least 60 days after the effective date of this
5 amendatory Act of the 92nd General Assembly with at least 10
6 years of service shall be entitled to an annuity of 50% of
7 the minimum formula annuity earned and accrued to the credit
8 of the employee at the date of death. For the purposes of
9 this subsection, the minimum formula annuity earned and
10 accrued to the credit of the employee is equal to 2.40% for
11 each year of service of the highest average annual salary for
12 any 4 consecutive years within the last 10 years of service
13 immediately preceding the date of death, up to a maximum of
14 80% of the highest average annual salary. This annuity shall
15 not be reduced due to the age of the employee or spouse. In
16 addition to any other eligibility requirements under this
17 Article, the spouse is eligible for this annuity only if the
18 marriage was in effect for 10 full years or more.
19 (Source: P.A. 92-599, eff. 6-28-02.)
20 (40 ILCS 5/8-150.2 new)
21 Sec. 8-150.2. Automatic annual increase in widow's
22 annuity.
23 (a) Every widow's annuity, other than an annuity
24 excluded under subsection (c), shall be increased by 3% on
25 the latest of (1) January 1, 2004, (2) the January 1
26 immediately following the deceased employee's date of death,
27 or (3) the January 1 occurring on or next after the date the
28 deceased employee actually received, or the earliest date
29 upon which the deceased employee would have been eligible to
30 receive, his or her first increase in annuity under Section
31 8-137 or 8-137.1.
32 On each January 1 after the date of the initial increase
33 under this Section, the widow's annuity shall be increased by
-42- LRB093 05656 EFG 17166 a
1 an amount equal to 3% of the amount of widow's annuity
2 otherwise payable at the time of the increase, including any
3 increases previously granted under this Article.
4 (b) Limitations on the maximum amount of widow's annuity
5 imposed under Section 8-154 do not apply to the annual
6 increases under this Section.
7 (c) The increases under this Section do not apply to
8 reversionary annuities under Section 8-139 or term annuities
9 under Section 8-157. The increases provided under this
10 Section do, however, apply to compensation and supplemental
11 annuities under Section 8-151.
12 (40 ILCS 5/8-164.1) (from Ch. 108 1/2, par. 8-164.1)
13 Sec. 8-164.1. Payments to cityGroup health benefit.
14 (a) For the purposes of this Section, "city annuitant"
15 means a person receiving an age and service annuity, a
16 widow's annuity, a child's annuity, or a minimum annuity
17 under this Article as a direct result of previous employment
18 by the City of Chicago ("the city").
19 (b) The board shall pay to the city, on behalf of the
20 board's city annuitants who participate in any of the city's
21 health care plans, the following amounts:
22 (1) From July 1, 2003 through June 30, 2008, $85
23 per month for each such annuitant who is not eligible to
24 receive Medicare benefits and $55 per month for each such
25 annuitant who is eligible to receive Medicare benefits.
26 (2) From July 1, 2008 through June 30, 2013, $95
27 per month for each such annuitant who is not eligible to
28 receive Medicare benefits and $65 per month for each such
29 annuitant who is eligible to receive Medicare benefits.
30 The payments described in this subsection shall be paid
31 from the tax levy authorized under Section 8-173; such
32 amounts shall be credited to the reserve for group hospital
33 care and group medical and surgical plan benefits, and all
-43- LRB093 05656 EFG 17166 a
1 payments to the city required under this subsection shall be
2 charged against it.
3 (c) The city health care plans referred to in this
4 Section and the board's payments to the city under this
5 Section are not and shall not be construed to be pension or
6 retirement benefits for the purposes of Section 5 of Article
7 XIII of the Illinois Constitution of 1970.
8 (a) For the purposes of this Section: (1) "annuitant"
9 means a person receiving an age and service annuity, a prior
10 service annuity, a widow's annuity, a widow's prior service
11 annuity, or a minimum annuity, under Article 5, 6, 8 or 11,
12 by reason of previous employment by the City of Chicago
13 (hereinafter, in this Section, "the city"); (2) "Medicare
14 Plan annuitant" means an annuitant described in item (1) who
15 is eligible for Medicare benefits; and (3) "non-Medicare Plan
16 annuitant" means an annuitant described in item (1) who is
17 not eligible for Medicare benefits.
18 (b) The city shall offer group health benefits to
19 annuitants and their eligible dependents through June 30,
20 2003. The basic city health care plan available as of June
21 30, 1988 (hereinafter called the basic city plan) shall cease
22 to be a plan offered by the city, except as specified in
23 subparagraphs (4) and (5) below, and shall be closed to new
24 enrollment or transfer of coverage for any non-Medicare Plan
25 annuitant as of June 27, 1997. The city shall offer
26 non-Medicare Plan annuitants and their eligible dependents
27 the option of enrolling in its Annuitant Preferred Provider
28 Plan and may offer additional plans for any annuitant. The
29 city may amend, modify, or terminate any of its additional
30 plans at its sole discretion. If the city offers more than
31 one annuitant plan, the city shall allow annuitants to
32 convert coverage from one city annuitant plan to another,
33 except the basic city plan, during times designated by the
34 city, which periods of time shall occur at least annually.
-44- LRB093 05656 EFG 17166 a
1 For the period dating from June 27, 1997 through June 30,
2 2003, monthly premium rates may be increased for annuitants
3 during the time of their participation in non-Medicare plans,
4 except as provided in subparagraphs (1) through (4) of this
5 subsection.
6 (1) For non-Medicare Plan annuitants who retired
7 prior to January 1, 1988, the annuitant's share of
8 monthly premium for non-Medicare Plan coverage only shall
9 not exceed the highest premium rate chargeable under any
10 city non-Medicare Plan annuitant coverage as of December
11 1, 1996.
12 (2) For non-Medicare Plan annuitants who retire on
13 or after January 1, 1988, the annuitant's share of
14 monthly premium for non-Medicare Plan coverage only shall
15 be the rate in effect on December 1, 1996, with monthly
16 premium increases to take effect no sooner than April 1,
17 1998 at the lower of (i) the premium rate determined
18 pursuant to subsection (g) or (ii) 10% of the immediately
19 previous month's rate for similar coverage.
20 (3) In no event shall any non-Medicare Plan
21 annuitant's share of monthly premium for non-Medicare
22 Plan coverage exceed 10% of the annuitant's monthly
23 annuity.
24 (4) Non-Medicare Plan annuitants who are enrolled
25 in the basic city plan as of July 1, 1998 may remain in
26 the basic city plan, if they so choose, on the condition
27 that they are not entitled to the caps on rates set forth
28 in subparagraphs (1) through (3), and their premium rate
29 shall be the rate determined in accordance with
30 subsections (c) and (g).
31 (5) Medicare Plan annuitants who are currently
32 enrolled in the basic city plan for Medicare eligible
33 annuitants may remain in that plan, if they so choose,
34 through June 30, 2003. Annuitants shall not be allowed
-45- LRB093 05656 EFG 17166 a
1 to enroll in or transfer into the basic city plan for
2 Medicare eligible annuitants on or after July 1, 1999.
3 The city shall continue to offer annuitants a
4 supplemental Medicare Plan for Medicare eligible
5 annuitants through June 30, 2003, and the city may offer
6 additional plans to Medicare eligible annuitants in its
7 sole discretion. All Medicare Plan annuitant monthly
8 rates shall be determined in accordance with subsections
9 (c) and (g).
10 (c) The city shall pay 50% of the aggregated costs of
11 the claims or premiums, whichever is applicable, as
12 determined in accordance with subsection (g), of annuitants
13 and their dependents under all health care plans offered by
14 the city. The city may reduce its obligation by application
15 of price reductions obtained as a result of financial
16 arrangements with providers or plan administrators.
17 (d) From January 1, 1993 until June 30, 2003, the board
18 shall pay to the city on behalf of each of the board's
19 annuitants who chooses to participate in any of the city's
20 plans the following amounts: up to a maximum of $75 per month
21 for each such annuitant who is not qualified to receive
22 medicare benefits, and up to a maximum of $45 per month for
23 each such annuitant who is qualified to receive medicare
24 benefits.
25 Commencing on August 23, 1989, the board is authorized to
26 pay to the board of education on behalf of each person who
27 chooses to participate in the board of education's plan the
28 amounts specified in this subsection (d) during the years
29 indicated. For the period January 1, 1988 through August 23,
30 1989, the board shall pay to the board of education
31 annuitants who participate in the board of education's health
32 benefits plan for annuitants the following amounts: $10 per
33 month to each annuitant who is not qualified to receive
34 medicare benefits, and $14 per month to each annuitant who is
-46- LRB093 05656 EFG 17166 a
1 qualified to receive medicare benefits.
2 The payments described in this subsection shall be paid
3 from the tax levy authorized under Section 8-189; such
4 amounts shall be credited to the reserve for group hospital
5 care and group medical and surgical plan benefits, and all
6 payments to the city required under this subsection shall be
7 charged against it.
8 (e) The city's obligations under subsections (b) and (c)
9 shall terminate on June 30, 2003, except with regard to
10 covered expenses incurred but not paid as of that date. This
11 subsection shall not affect other obligations that may be
12 imposed by law.
13 (f) The group coverage plans described in this Section
14 are not and shall not be construed to be pension or
15 retirement benefits for purposes of Section 5 of Article XIII
16 of the Illinois Constitution of 1970.
17 (g) For each annuitant plan offered by the city, the
18 aggregate cost of claims, as reflected in the claim records
19 of the plan administrator, shall be estimated by the city,
20 based upon a written determination by a qualified independent
21 actuary to be appointed and paid by the city and the board.
22 If the estimated annual cost for each annuitant plan offered
23 by the city is more than the estimated amount to be
24 contributed by the city for that plan pursuant to subsections
25 (b) and (c) during that year plus the estimated amounts to be
26 paid pursuant to subsection (d) and by the other pension
27 boards on behalf of other participating annuitants, the
28 difference shall be paid by all annuitants participating in
29 the plan, except as provided in subsection (b). The city,
30 based upon the determination of the independent actuary,
31 shall set the monthly amounts to be paid by the participating
32 annuitants. The board may deduct the amounts to be paid by
33 its annuitants from the participating annuitants' monthly
34 annuities.
-47- LRB093 05656 EFG 17166 a
1 If it is determined from the city's annual audit, or from
2 audited experience data, that the total amount paid by all
3 participating annuitants was more or less than the difference
4 between (1) the cost of providing the group health care
5 plans, and (2) the sum of the amount to be paid by the city
6 as determined under subsection (c) and the amounts paid by
7 all the pension boards, then the independent actuary and the
8 city shall account for the excess or shortfall in the next
9 year's payments by annuitants, except as provided in
10 subsection (b).
11 (h) An annuitant may elect to terminate coverage in a
12 plan at the end of any month, which election shall terminate
13 the annuitant's obligation to contribute toward payment of
14 the excess described in subsection (g).
15 (i) The city shall advise the board of all proposed
16 premium increases for health care at least 75 days prior to
17 the effective date of the change, and any increase shall be
18 prospective only.
19 (Source: P.A. 92-599, eff. 6-28-02.)
20 (40 ILCS 5/8-164.2 new)
21 Sec. 8-164.2. Payments to board of education for group
22 health benefits.
23 (a) Should the Board of Education continue to sponsor a
24 retiree health plan, the board is authorized to pay to the
25 Board of Education, on behalf of each eligible annuitant who
26 chooses to participate in the Board of Education's retiree
27 health benefit plan, the following amounts:
28 (1) From July 1, 2003 through June 30, 2008, $85
29 per month for each such annuitant who is not eligible to
30 receive Medicare benefits and $55 per month for each such
31 annuitant who is eligible to receive Medicare benefits.
32 (2) From July 1, 2008 through June 30, 2013, $95
33 per month for each such annuitant who is not eligible to
-48- LRB093 05656 EFG 17166 a
1 receive Medicare benefits and $65 per month for each such
2 annuitant who is eligible to receive Medicare benefits.
3 The payments described in this subsection shall be paid
4 from the tax levy authorized under Section 8-173; such
5 amounts shall be credited to the reserve for group hospital
6 care and group medical and surgical plan benefits, and all
7 payments to the Board of Education under this subsection
8 shall be charged against it.
9 (b) The Board of Education health benefit plan referred
10 to in this Section and the board's payments to the Board of
11 Education under this Section are not and shall not be
12 construed to be pension or retirement benefits for the
13 purposes of Section 5 of Article XIII of the Illinois
14 Constitution of 1970.
15 (40 ILCS 5/8-167) (from Ch. 108 1/2, par. 8-167)
16 Sec. 8-167. Restoration of rights. An employee who has
17 withdrawn as a refund the amounts credited for annuity
18 purposes, and who (i) re-enters service of the employer and
19 serves for periods comprising at least 90 days2 years after
20 the date of the last refund paid to him or (ii) has completed
21 at least 2 years of service under a participating system (as
22 defined in the Retirement Systems Reciprocal Act) other than
23 this Fund after the date of the last refund, shall have his
24 annuity rights restored by compliance with the following
25 provisions:
26 (a) After such 90 day or 2 year period, whichever
27 applies, he shall repay in full to the Fund, while in
28 service, in full all refunds received, together with
29 interest at the effective rate from the dates of refund
30 to the date of repayment.; or
31 (b) If payment is not made in a single sum, the
32 repayment may be made in installments by deductions from
33 salary or otherwise in such amounts and manner as the
-49- LRB093 05656 EFG 17166 a
1 board, by rule, may prescribe, with interest at the
2 effective rate accruing on unpaid balances.; or
3 (c) If the employee withdraws from service or dies
4 in service before full repayment is made, service credit
5 shall be restored in accordance with Section 8-230.3(b).
6 such rights shall not be restored, but the amount,
7 including interest, repaid by him, but without any
8 further interest otherwise normally credited, shall be
9 refunded to him or to his widow, or in the manner
10 provided by the refund provisions of this Article if no
11 widow survives.
12 (d) If the employee repays the refund while
13 participating in a participating system (as defined in
14 the Retirement Systems Reciprocal Act) other than this
15 Fund, the service credit restored must be used for a
16 proportional annuity calculated in accordance with the
17 Retirement Systems Reciprocal Act. If not so used, the
18 restored service credit shall be forfeited and the amount
19 of the repayment shall be refunded, without interest.
20 This Section applies also to any person who received a
21 refund from any annuity and benefit fund or pension fund
22 which was merged into and superseded by the annuity and
23 benefit fund provided for in this Article on or after
24 December 31, 1959. Upon repayment such person shall receive
25 credit for all annuity purposes in the annuity and benefit
26 fund provided for in this Article for the period of service
27 covered by the repaymentsuch refund.
28 The amount of refund repayment is considered as salary
29 deductions for age and service annuity and widow's annuity
30 purposes in the case of a male person. In the latter case
31 the amount of refund repayment is allocated in the applicable
32 proportion for age and service and widow's annuity purposes.
33 Such person shall also be credited with city contributions
34 for age and service annuity, and widow's annuity if a male
-50- LRB093 05656 EFG 17166 a
1 employee, in the amount which would have been credited and
2 accrued if such person had been a participant in and
3 contributor to the annuity and benefit fund provided for in
4 this Article during the period of such service on the basis
5 of his salary during such period.
6 (Source: P.A. 81-1536.)
7 (40 ILCS 5/8-174.1) (from Ch. 108 1/2, par. 8-174.1)
8 Sec. 8-174.1. Employer contributions on behalf of
9 employees.
10 (a) The employer may make and may incur an obligation to
11 make contributions on behalf of its employees in an amount
12 not to exceed the employee contributions required by Sections
13 8-137, 8-161, 8-174, 8-182 and 8-182.1 for all salary earned
14 after December 31, 1981. If such employee contributions are
15 not made or an obligation to make such contributions is not
16 incurred by the employer on behalf of its employees, the
17 amount that could have been contributed shall continue to be
18 deducted from salary. If employee contributions are made by
19 the employer on behalf of its employees, they shall be
20 treated as employer contributions in determining tax
21 treatment under the United States Internal Revenue Code;
22 however, each city shall continue to withhold federal and
23 State income taxes based upon these contributions until the
24 Internal Revenue Service or the Federal courts rule that
25 pursuant to Section 414(h) of the United States Internal
26 Revenue Code, these contributions shall not be included as
27 gross income of the employee until such time as they are
28 distributed or made available. The employer may make these
29 contributions on behalf of its employees by a reduction in
30 the cash salary of the employee or by an offset against a
31 future salary increase or by a combination of a reduction in
32 salary and offset against a future salary increase. The
33 employer shall pay these employee contributions from the same
-51- LRB093 05656 EFG 17166 a
1 source of funds used in paying salary to the employee or, if
2 the employer is a Board of Education, it may also or
3 alternatively pay such contributions in whole or in part from
4 the proceeds of the pension contribution liability tax
5 authorized by Section 34-60.1 of the School Code, as amended.
6 If such a tax is levied with respect to any fiscal year of a
7 Board of Education, that portion of the contributions to be
8 paid by the Board of Education on behalf of its employees for
9 that fiscal year from the proceeds of such a tax shall not be
10 due and payable into the Fund until the collection, in the
11 calendar year following the calendar year in which such levy
12 was made, of the actual tax bills extending the second
13 installment of real estate taxes for the Board of Education
14 for that calendar year, pursuant to Section 21-30 of the
15 Property Tax Code, and such Board of Education shall not be
16 required to pay those contributions to be paid from the
17 proceeds of such a tax into the Fund except as collected from
18 the extension of the actual tax bills. If employee
19 contributions are made by the employer on behalf of its
20 employees, they shall be treated for all purposes of this
21 Article 8, including Section 8-173, in the same manner and to
22 the same extent as employee contributions made by employees
23 and deducted from salary; provided, however, that
24 contributions which are made by a Board of Education on
25 behalf of its employees shall not be treated as a pension or
26 retirement obligation of the Board of Education for purposes
27 of Section 12 of "An Act in relation to State revenue sharing
28 with local governmental entities", approved July 31, 1969, as
29 amended. For purposes of Section 8-173, contributions made
30 by a Board of Education on behalf of its employees shall be
31 treated as contributions made by or on behalf of employees to
32 the Fund for the fiscal year for which the Board of Education
33 incurred the obligation to make such contributions.
34 (b) Subject to the requirements of federal law and the
-52- LRB093 05656 EFG 17166 a
1 rules of the Board, the Fund may allow the employee to elect
2 to have the employer pick up the optional contributions that
3 the employee has elected to pay to the Fund, and the
4 contributions so picked up shall be treated as employer
5 contributions for the purpose of determining federal tax
6 treatment. The employer shall pick up the contributions by a
7 reduction in the cash salary of the employee and shall pay
8 contributions from the same source of funds that is used to
9 pay earnings of the employee. The election to have the
10 contributions picked up is irrevocable and the optional
11 contributions may not thereafter be prepaid, by direct
12 payment or otherwise.
13 If the provision authorizing the optional contribution
14 requires payment by a stated date (rather than the date of
15 withdrawal or retirement), the requirement will be deemed to
16 have been satisfied if (i) on or before the stated date the
17 employee executes a valid irrevocable election to have the
18 contributions picked up under this subsection, and (ii) the
19 picked-up contributions are in fact paid to the Fund as
20 provided in the election.
21 If employee contributions are picked up under this
22 subsection, they shall be treated for all purposes of this
23 Article 8, including Section 8-173, in the same manner and to
24 the same extent as optional employee contributions made prior
25 to the date picked up.
26 (Source: P.A. 88-670, eff. 12-2-94.)
27 (40 ILCS 5/8-230.8 new)
28 Sec. 8-230.8. Credit for certain military service. In
29 addition to any creditable service established under Section
30 8-230, creditable service for annuity purposes only may be
31 granted for service in the armed forces of the United States
32 that was not immediately preceded by service with the
33 employer. A member shall receive service credit for military
-53- LRB093 05656 EFG 17166 a
1 service under this Section, provided that all of the
2 following conditions are met:
3 (1) The employee must be employed by the employer
4 and contributing to the Fund for current service when he
5 makes the payment for military service.
6 (2) The employee must have entered or re-entered
7 the service of the employer within 2 years after his
8 discharge.
9 (3) The discharge from military service must have
10 been other than a dishonorable discharge.
11 (4) The employee must apply to the Fund in writing
12 and provide evidence of the military service that is
13 satisfactory to the Board.
14 (5) The employee must have paid for all unpaid
15 service with the employer (refund repayment, payment for
16 temporary service, or any other service with the
17 employer) before payment may be made under this Section.
18 (6) The employee must have been in active duty
19 military service; service in the military reserves is not
20 eligible under this Section.
21 (7) The employee must not receive credit in any
22 other pension plan for this period of military service.
23 (8) The employee must contribute to the Fund an
24 amount representing employee contributions. The required
25 contribution shall be calculated by the Fund, based on
26 the contribution rates in effect during the period of
27 military service and the employee's salary rate on the
28 first day of service in the Fund following the military
29 service, and shall include interest at the effective rate
30 from the employee's first day of service in the Fund
31 following the military service to the date of payment.
32 The employee must pay the required contribution in full
33 before withdrawal or death in service. If the employee
34 withdraws or dies in service before full payment is made,
-54- LRB093 05656 EFG 17166 a
1 the amount paid by him shall be refunded.
2 (9) The amount of military service credit
3 established by an employee under this Section, when added
4 to his credit for military service under Section 8-230,
5 shall not exceed 5 years.
6 (40 ILCS 5/9-185) (from Ch. 108 1/2, par. 9-185)
7 Sec. 9-185. Board created.
8 (a) A board of 10 members9 members shall constitute the
9 board of trustees authorized to carry out the provisions of
10 this Article. The board of trustees shall be known as "The
11 Retirement Board of the County Employees' Annuity and Benefit
12 Fund of .... County". The board shall consist of 3of 2
13 members appointed and 7 members elected as hereinafter
14 prescribed.
15 (b) The appointed members shall be appointed as follows:
16 One member shall be appointed by the comptroller of such
17 county, who may be the comptroller or some person chosen by
18 him from among employees of the county, who are versed in the
19 affairs of the comptroller's office; and one member shall be
20 appointed by the treasurer of such county, who may be the
21 treasurer or some person chosen by him from among employees
22 of the County who are versed in the affairs of the
23 treasurer's office.
24 The member appointed by the comptroller shall hold office
25 for a term ending on December 1st of the first year following
26 the year of appointment. The member appointed by the county
27 treasurer shall hold office for a term ending on December 1st
28 of the second year following the year of appointment.
29 Thereafter, each appointed member shall be appointed by
30 the officer that appointed his predecessor for a term of 2
31 years.
32 (b-5) One member shall be appointed by the chief
33 financial officer of the forest preserve district of the
-55- LRB093 05656 EFG 17166 a
1 county, who may be the chief financial officer or some person
2 chosen by the chief financial officer from among the
3 employees of the forest preserve district who are versed in
4 the affairs of the finance office. The initial member
5 appointed by the chief financial officer of the forest
6 preserve district shall hold office for a term ending on
7 December 1st of the first year following the year of
8 appointment. Thereafter, the member appointed by the chief
9 financial officer of the forest preserve district shall hold
10 office for a term of 2 years.
11 (c) Three county employee members of the board shall be
12 elected as follows: within 30 days from and after the date
13 upon which this Article comes into effect in the county, the
14 clerk of the county shall arrange for and hold an election.
15 One employee shall be elected for a term ending on the first
16 day in the month of December of the first year next following
17 the effective date; one for a term ending on December 1st of
18 the following year; and one for a term ending December 1st of
19 the second following year.
20 (d) Beginning December 1, 1988, and every 3 years
21 thereafter, an annuitant member of the board shall be elected
22 as follows: the board shall arrange for and hold an election
23 in which only those participants who are currently receiving
24 retirement benefits under this Article shall be eligible to
25 vote and be elected. Each such member shall be elected to a
26 term ending on the first day in the month of December of the
27 third following year.
28 (d-1) Beginning December 1, 2001, and every 3 years
29 thereafter, an annuitant member of the board shall be elected
30 as follows: the board shall arrange for and hold an election
31 in which only those participants who are currently receiving
32 retirement benefits under this Article shall be eligible to
33 vote and be elected. Each such member shall be elected to a
34 term ending on the first day in the month of December of the
-56- LRB093 05656 EFG 17166 a
1 third following year. Until December 1, 2001, the position
2 created under this subsection (d-1) may be filled by the
3 board as in the case of a vacancy.
4 (e) Beginning December 1, 1988, if a Forest Preserve
5 District Employees' Annuity and Benefit Fund shall be in
6 force in such county and the board of this fund is charged
7 with administering the affairs of such annuity and benefit
8 fund for employees of such forest preserve district, a forest
9 preserve district member of the board shall be elected as of
10 December 1, 1988, and every 3 years thereafter as follows:
11 the board shall arrange for and hold an election in which
12 only those employees of such forest preserve district who are
13 contributors to the annuity and benefit fund for employees of
14 such forest preserve district shall be eligible to vote and
15 be elected. Each such member shall be elected to a term
16 ending on the first day in the month of December of the third
17 following year.
18 (f) Beginning December 1, 2001, and every 3 years
19 thereafter, if a Forest Preserve District Employees' Annuity
20 and Benefit Fund is in force in the county and the board of
21 this Fund is charged with administering the affairs of that
22 annuity and benefit fund for employees of the forest preserve
23 district, a forest preserve district annuitant member of the
24 board shall be elected as follows: the board shall arrange
25 for and hold an election in which only those participants who
26 are currently receiving retirement benefits under Article 10
27 shall be eligible to vote and be elected. Each such member
28 shall be elected to a term ending on the first day in the
29 month of December of the third following year. Until
30 December 1, 2001, the position created under this subsection
31 (f) may be filled by the board as in the case of a vacancy.
32 (Source: P.A. 92-66, eff. 7-12-01.)
33 (40 ILCS 5/11-134) (from Ch. 108 1/2, par. 11-134)
-57- LRB093 05656 EFG 17166 a
1 Sec. 11-134. Minimum annuities.
2 (a) An employee whose withdrawal occurs after July 1,
3 1957 at age 60 or over, with 20 or more years of service, (as
4 service is defined or computed in Section 11-216), for whom
5 the age and service and prior service annuity combined is
6 less than the amount stated in this Section, shall, from and
7 after the date of withdrawal, in lieu of all annuities
8 otherwise provided in this Article, be entitled to receive an
9 annuity for life of an amount equal to 1 2/3% for each year
10 of service, of the highest average annual salary for any 5
11 consecutive years within the last 10 years of service
12 immediately preceding the date of withdrawal; provided, that
13 in the case of any employee who withdraws on or after July 1,
14 1971, such employee age 60 or over with 20 or more years of
15 service, shall be entitled to instead receive an annuity for
16 life equal to 1.67% for each of the first 10 years of
17 service; 1.90% for each of the next 10 years of service;
18 2.10% for each year of service in excess of 20 but not
19 exceeding 30; and 2.30% for each year of service in excess of
20 30, based on the highest average annual salary for any 4
21 consecutive years within the last 10 years of service
22 immediately preceding the date of withdrawal.
23 An employee who withdraws after July 1, 1957 and before
24 January 1, 1988, with 20 or more years of service, before age
25 60, shall be entitled to an annuity, to begin not earlier
26 than age 55, if under such age at withdrawal, as computed in
27 the last preceding paragraph, reduced 0.25% if the employee
28 was born before January 1, 1936, or 0.5% if the employee was
29 born on or after January 1, 1936, for each full month or
30 fractional part thereof that his attained age when such
31 annuity is to begin is less than 60.
32 Any employee born before January 1, 1936 who withdraws
33 with 20 or more years of service, and any employee with 20 or
34 more years of service who withdraws on or after January 1,
-58- LRB093 05656 EFG 17166 a
1 1988, may elect to receive, in lieu of any other employee
2 annuity provided in this Section, an annuity for life equal
3 to 1.80% for each of the first 10 years of service, 2.00% for
4 each of the next 10 years of service, 2.20% for each year of
5 service in excess of 20, but not exceeding 30, and 2.40% for
6 each year of service in excess of 30, of the highest average
7 annual salary for any 4 consecutive years within the last 10
8 years of service immediately preceding the date of
9 withdrawal, to begin not earlier than upon attained age of 55
10 years, if under such age at withdrawal, reduced 0.25% for
11 each full month or fractional part thereof that his attained
12 age when annuity is to begin is less than 60; except that an
13 employee retiring on or after January 1, 1988, at age 55 or
14 over but less than age 60, having at least 35 years of
15 service, or an employee retiring on or after July 1, 1990, at
16 age 55 or over but less than age 60, having at least 30 years
17 of service, or an employee retiring on or after the effective
18 date of this amendatory Act of 1997, at age 55 or over but
19 less than age 60, having at least 25 years of service, shall
20 not be subject to the reduction in retirement annuity because
21 of retirement below age 60.
22 However, in the case of an employee who retired on or
23 after January 1, 1985 but before January 1, 1988, at age 55
24 or older and with at least 35 years of service, and who was
25 subject under this subsection (a) to the reduction in
26 retirement annuity because of retirement below age 60, that
27 reduction shall cease to be effective January 1, 1991, and
28 the retirement annuity shall be recalculated accordingly.
29 Any employee who withdraws on or after July 1, 1990, with
30 20 or more years of service, may elect to receive, in lieu of
31 any other employee annuity provided in this Section, an
32 annuity for life equal to 2.20% for each year of service if
33 withdrawal is before January 1, 2002, 60 days after the
34 effective date of this amendatory Act of the 92nd General
-59- LRB093 05656 EFG 17166 a
1 Assembly, or 2.40% for each year of service if withdrawal is
2 on or after January 1, 2002, 60 days after the effective date
3 of this amendatory Act of the 92nd General Assembly or later,
4 of the highest average annual salary for any 4 consecutive
5 years within the last 10 years of service immediately
6 preceding the date of withdrawal, to begin not earlier than
7 upon attained age of 55 years, if under such age at
8 withdrawal, reduced 0.25% for each full month or fractional
9 part thereof that his attained age when annuity is to begin
10 is less than 60; except that an employee retiring at age 55
11 or over but less than age 60, having at least 30 years of
12 service, shall not be subject to the reduction in retirement
13 annuity because of retirement below age 60.
14 Any employee who withdraws on or after the effective date
15 of this amendatory Act of 1997 with 20 or more years of
16 service may elect to receive, in lieu of any other employee
17 annuity provided in this Section, an annuity for life equal
18 to 2.20% for each year of service if withdrawal is before
19 January 1, 2002, 60 days after the effective date of this
20 amendatory Act of the 92nd General Assembly, or 2.40% for
21 each year of service if withdrawal is on or after January 1,
22 2002, 60 days after the effective date of this amendatory Act
23 of the 92nd General Assembly or later, of the highest average
24 annual salary for any 4 consecutive years within the last 10
25 years of service immediately preceding the date of
26 withdrawal, to begin not earlier than upon attainment of age
27 55 (age 50 if the employee has at least 30 years of service),
28 reduced 0.25% for each full month or remaining fractional
29 part thereof that the employee's attained age when annuity is
30 to begin is less than 60; except that an employee retiring at
31 age 50 or over with at least 30 years of service or at age 55
32 or over with at least 25 years of service shall not be
33 subject to the reduction in retirement annuity because of
34 retirement below age 60.
-60- LRB093 05656 EFG 17166 a
1 The maximum annuity payable under this paragraph (a) of
2 this Section shall not exceed 70% of highest average annual
3 salary in the case of an employee who withdraws prior to July
4 1, 1971, 75% if withdrawal takes place on or after July 1,
5 1971 and prior to January 1, 2002, 60 days after the
6 effective date of this amendatory Act of the 92nd General
7 Assembly, or 80% if withdrawal is on or after January 1, 2002
8 60 days after the effective date of this amendatory Act of
9 the 92nd General Assembly or later. For the purpose of the
10 minimum annuity provided in said paragraphs $1,500 shall be
11 considered the minimum annual salary for any year; and the
12 maximum annual salary to be considered for the computation of
13 such annuity shall be $4,800 for any year prior to 1953,
14 $6,000 for the years 1953 to 1956, inclusive, and the actual
15 annual salary, as salary is defined in this Article, for any
16 year thereafter.
17 (b) For an employee receiving disability benefit, his
18 salary for annuity purposes under this Section shall, for all
19 periods of disability benefit subsequent to the year 1956, be
20 the amount on which his disability benefit was based.
21 (c) An employee with 20 or more years of service, whose
22 entire disability benefit credit period expires prior to
23 attainment of age 55 while still disabled for service, shall
24 be entitled upon withdrawal to the larger of (1) the minimum
25 annuity provided above assuming that he is then age 55, and
26 reducing such annuity to its actuarial equivalent at his
27 attained age on such date, or (2) the annuity provided from
28 his age and service and prior service annuity credits.
29 (d) The minimum annuity provisions as aforesaid shall
30 not apply to any former employee receiving an annuity from
31 the fund, and who re-enters service as an employee, unless he
32 renders at least 3 years of additional service after the date
33 of re-entry.
34 (e) An employee in service on July 1, 1947, or who
-61- LRB093 05656 EFG 17166 a
1 became a contributor after July 1, 1947 and prior to July 1,
2 1950, or who shall become a contributor to the fund after
3 July 1, 1950 prior to attainment of age 70, who withdraws
4 after age 65 with less than 20 years of service, for whom the
5 annuity has been fixed under the foregoing Sections of this
6 Article shall, in lieu of the annuity so fixed, receive an
7 annuity as follows:
8 Such amount as he could have received had the accumulated
9 amounts for annuity been improved with interest at the
10 effective rate to the date of his withdrawal, or to
11 attainment of age 70, whichever is earlier, and had the city
12 contributed to such earlier date for age and service annuity
13 the amount that would have been contributed had he been under
14 age 65, after the date his annuity was fixed in accordance
15 with this Article, and assuming his annuity were computed
16 from such accumulations as of his age on such earlier date.
17 The annuity so computed shall not exceed the annuity which
18 would be payable under the other provisions of this Section
19 if the employee was credited with 20 years of service and
20 would qualify for annuity thereunder.
21 (f) In lieu of the annuity provided in this or in any
22 other Section of this Article, an employee having attained
23 age 65 with at least 15 years of service who withdraws from
24 service on or after July 1, 1971 and whose annuity computed
25 under other provisions of this Article is less than the
26 amount provided under this paragraph shall be entitled to
27 receive a minimum annual annuity for life equal to 1% of the
28 highest average annual salary for any 4 consecutive years
29 within the last 10 years of service immediately preceding
30 retirement for each year of his service plus the sum of $25
31 for each year of service. Such annual annuity shall not
32 exceed the maximum percentages stated under paragraph (a) of
33 this Section of such highest average annual salary.
34 (f-1) Instead of any other retirement annuity provided
-62- LRB093 05656 EFG 17166 a
1 in this Article, an employee who has at least 10 years of
2 service and withdraws from service on or after January 1,
3 1999 may elect to receive a retirement annuity for life,
4 beginning no earlier than upon attainment of age 60, equal to
5 2.2% if withdrawal is before January 1, 2002, 60 days after
6 the effective date of this amendatory Act of the 92nd General
7 Assembly or 2.4% for each year of service if withdrawal is on
8 or after January 1, 2002, 60 days after the effective date of
9 this amendatory Act of the 92nd General Assembly or later, of
10 final average salary for each year of service, subject to a
11 maximum of 75% of final average salary if withdrawal is
12 before January 1, 2002, 60 days after the effective date of
13 this amendatory Act of the 92nd General Assembly, or 80% if
14 withdrawal is on or after January 1, 2002 60 days after the
15 effective date of this amendatory Act of the 92nd General
16 Assembly or later. For the purpose of calculating this
17 annuity, "final average salary" means the highest average
18 annual salary for any 4 consecutive years in the last 10
19 years of service.
20 (g) Any annuity payable under the preceding subsections
21 of this Section 11-134 shall be paid in equal monthly
22 installments.
23 (h) The amendatory provisions of part (a) and (f) of
24 this Section shall be effective July 1, 1971 and apply in the
25 case of every qualifying employee withdrawing on or after
26 July 1, 1971.
27 (h-1) The changes made to this Section by Public Act
28 92-609this amendatory Act of the 92nd General Assembly
29 (increasing the retirement formula to 2.4% per year of
30 service and increasing the maximum to 80%) apply to persons
31 who withdraw from service on or after January 1, 2002,
32 regardless of whether that withdrawal takes place before the
33 effective date of thatthis amendatory Act. In the case of a
34 person who withdraws from service on or after January 1, 2002
-63- LRB093 05656 EFG 17166 a
1 but begins to receive a retirement annuity before July 1,
2 2002the effective date of this amendatory Act, the annuity
3 shall be recalculated, with the increase resulting from
4 Publicthis amendatory Act 92-609 accruing from the date the
5 retirement annuity began. The changes made by Public Act
6 92-609 control over the changes made by Public Act 92-599, as
7 provided in Section 95 of P.A. 92-609.
8 (i) The amendatory provisions of this amendatory Act of
9 1985 relating to the discount of annuity because of
10 retirement prior to attainment of age 60 and increasing the
11 retirement formula for those born before January 1, 1936,
12 shall apply only to qualifying employees withdrawing on or
13 after August 16, 1985.
14 (j) Beginning on January 1, 1999, the minimum amount of
15 employee's annuity shall be $850 per month for life for the
16 following classes of employees, without regard to the fact
17 that withdrawal occurred prior to the effective date of this
18 amendatory Act of 1998:
19 (1) any employee annuitant alive and receiving a
20 life annuity on the effective date of this amendatory Act
21 of 1998, except a reciprocal annuity;
22 (2) any employee annuitant alive and receiving a
23 term annuity on the effective date of this amendatory Act
24 of 1998, except a reciprocal annuity;
25 (3) any employee annuitant alive and receiving a
26 reciprocal annuity on the effective date of this
27 amendatory Act of 1998, whose service in this fund is at
28 least 5 years;
29 (4) any employee annuitant withdrawing after age 60
30 on or after the effective date of this amendatory Act of
31 1998, with at least 10 years of service in this fund.
32 The increases granted under items (1), (2) and (3) of
33 this subsection (j) shall not be limited by any other Section
34 of this Act.
-64- LRB093 05656 EFG 17166 a
1 (k) Beginning on January 1, 2004, the minimum amount of
2 employee's annuity shall be $950 per month for life for the
3 following classes of employees, without regard to the fact
4 that withdrawal occurred prior to the effective date of this
5 amendatory Act of the 93rd General Assembly:
6 (1) any employee annuitant alive and receiving a
7 life annuity on the effective date of this amendatory Act
8 of the 93rd General Assembly, except a reciprocal
9 annuity;
10 (2) any employee annuitant alive and receiving a
11 term annuity on the effective date of this amendatory Act
12 of 93rd General Assembly except a reciprocal annuity;
13 (3) any employee annuitant alive and receiving a
14 reciprocal annuity on the effective date of this
15 amendatory Act of the 93rd General Assembly, whose
16 service in this fund is at least 5 years;
17 (4) any employee annuitant withdrawing after age 60
18 on or after the effective date of this amendatory Act of
19 the 93rd General Assembly, with at least 10 years of
20 service in this fund.
21 The increases granted under items (1), (2) and (3) of
22 this subsection (k) shall not be limited by any other Section
23 of this Act.
24 (l) Beginning on January 1, 2005, the minimum amount of
25 employee's annuity shall be $1,050 per month for life for the
26 following classes of employees, without regard to the fact
27 that withdrawal occurred prior to the effective date of this
28 amendatory Act of the 93rd General Assembly:
29 (1) any employee annuitant alive and receiving a
30 life annuity on the effective date of this amendatory Act
31 of the 93rd General Assembly, except a reciprocal
32 annuity;
33 (2) any employee annuitant alive and receiving a
34 term annuity on the effective date of this amendatory Act
-65- LRB093 05656 EFG 17166 a
1 of 93rd General Assembly except a reciprocal annuity;
2 (3) any employee annuitant alive and receiving a
3 reciprocal annuity on the effective date of this
4 amendatory Act of the 93rd General Assembly, whose
5 service in this fund is at least 5 years;
6 (4) any employee annuitant withdrawing after age 60
7 on or after the effective date of this amendatory Act of
8 the 93rd General Assembly, with at least 10 years of
9 service in this fund.
10 The increases granted under items (1), (2) and (3) of
11 this subsection (l) shall not be limited by any other Section
12 of this Act.
13 (Source: P.A. 92-599, eff. 6-28-02; 92-609, eff. 7-1-02;
14 revised 9-11-02.)
15 (40 ILCS 5/11-134.1) (from Ch. 108 1/2, par. 11-134.1)
16 Sec. 11-134.1. Automatic increase in annuity.
17 (a) An employee who retired or retires from service
18 after December 31, 1963, and before January 1, 1987, having
19 attained age 60 or more, shall, in the month of January of
20 the year following the year in which the first anniversary of
21 retirement occurs, have the amount of his then fixed and
22 payable monthly annuity increased by 1 1/2%, and such first
23 fixed annuity as granted at retirement increased by a further
24 1 1/2% in January of each year thereafter. Beginning with
25 January of the year 1972, such increases shall be at the rate
26 of 2% in lieu of the aforesaid specified 1 1/2%. Beginning
27 January, 1984, such increases shall be at the rate of 3%.
28 Beginning in January of 1999, such increases shall be at the
29 rate of 3% of the currently payable monthly annuity,
30 including any increases previously granted under this
31 Article. An employee who retires on annuity after December
32 31, 1963 and before January 1, 1987, but prior to age 60,
33 shall receive such increases beginning with January of the
-66- LRB093 05656 EFG 17166 a
1 year immediately following the year in which he attains the
2 age of 60 years.
3 An employee who retires from service on or after January
4 1, 1987 shall, upon the first annuity payment date following
5 the first anniversary of the date of retirement, or upon the
6 first annuity payment date following attainment of age 60,
7 whichever occurs later, have his then fixed and payable
8 monthly annuity increased by 3%, and such annuity shall be
9 increased by an additional 3% of the original fixed annuity
10 on the same date each year thereafter. Beginning in January
11 of 1999, such increases shall be at the rate of 3% of the
12 currently payable monthly annuity, including any increases
13 previously granted under this Article.
14 (a-5) Notwithstanding the provisions of subsection (a),
15 upon the first annuity payment date following (1) the third
16 anniversary of retirement, (2) the attainment of age 53, or
17 (3) January 1, 2002, the date 60 days after the effective
18 date of this amendatory Act of the 92nd General Assembly,
19 whichever occurs latest, the monthly annuity of an employee
20 who retires on annuity prior to the attainment of age 60 and
21 who has not received an increase under subsection (a) shall
22 be increased by 3%, and the such annuity shall be increased
23 by an additional 3% of the current payable monthly annuity,
24 including any such increases previously granted under this
25 Article, on the same date each year thereafter. The
26 increases provided under this subsection are in lieu of the
27 increases provided in subsection (a).
28 (a-6) Notwithstanding the provisions of subsections (a)
29 and (a-5), for all calendar years following the year in which
30 this amendatory Act of the 93rd General Assembly takes
31 effect, an increase in annuity under this Section that would
32 otherwise take effect at any time during the year shall
33 instead take effect in January of that year.
34 (b) Subsections (a),and (a-5), and (a-6) are not
-67- LRB093 05656 EFG 17166 a
1 applicable to an employee retiring and receiving a term
2 annuity, as defined in this Article, nor to any otherwise
3 qualified employee who retires before he shall have made
4 employee contributions (at the 1/2 of 1% rate as hereinafter
5 provided) for the purposes of this additional annuity for not
6 less than the equivalent of one full year. Such employee,
7 however, shall make arrangement to pay to the fund a balance
8 of such 1/2 of 1% contributions, based on his final salary,
9 as will bring such 1/2 of 1% contributions, computed without
10 interest, to the equivalent of or completion of one year's
11 contributions.
12 Beginning with the month of January, 1964, each employee
13 shall contribute by means of salary deductions 1/2 of 1% of
14 each salary payment, concurrently with and in addition to the
15 employee contributions otherwise made for annuity purposes.
16 Each such additional employee contribution shall be
17 credited to an account in the prior service annuity reserve,
18 to be used, together with city contributions, to defray the
19 cost of the specified annuity increments. Any balance as of
20 the beginning of each calendar year existing in such account
21 shall be credited with interest at the rate of 3% per annum.
22 Such employee contributions shall not be subject to
23 refund, except to an employee who resigns or is discharged
24 and applies for refund under this Article, and also in cases
25 where a term annuity becomes payable.
26 In such cases the employee contributions shall be
27 refunded him, without interest, and charged to the
28 aforementioned account in the prior service annuity reserve.
29 (Source: P.A. 92-599, eff. 6-28-02; 92-609, eff. 7-1-02;
30 revised 8-26-02.)
31 (40 ILCS 5/11-145.1) (from Ch. 108 1/2, par. 11-145.1)
32 Sec. 11-145.1. Minimum annuities for widows.
33 The widow otherwise eligible for widow's annuity under
-68- LRB093 05656 EFG 17166 a
1 other Sections of this Article 11, of an employee hereinafter
2 described, who retires from service or dies while in the
3 service subsequent to the effective date of this amendatory
4 provision, and for which widow the amount of widow's annuity
5 and widow's prior service annuity combined, fixed or provided
6 for such widow under other provisions of said Article 11 is
7 less than the amount hereinafter provided in this section,
8 shall, from and after the date her otherwise provided annuity
9 would begin, in lieu of such otherwise provided widow's and
10 widow's prior service annuity, be entitled to the following
11 indicated amount of annuity:
12 (a) The widow of any employee who dies while in service
13 on or after the date on which he attains age 60 if the death
14 occurs before July 1, 1990, or on or after the date on which
15 he attains age 55 if the death occurs on or after July 1,
16 1990, with at least 20 years of service, or on or after the
17 date on which he attains age 50 if the death occurs on or
18 after the effective date of this amendatory Act of 1997 with
19 at least 30 years of service, shall be entitled to an annuity
20 equal to one-half of the amount of annuity which her deceased
21 husband would have been entitled to receive had he withdrawn
22 from the service on the day immediately preceding the date of
23 his death, conditional upon such widow having attained age 60
24 on or before such date if the death occurs before July 1,
25 1990, or age 55 if the death occurs on or after July 1, 1990,
26 or age 50 if the death occurs on or after January 1, 1998 and
27 the employee is age 50 or over with at least 30 years of
28 service or age 55 or over with at least 25 years of service.
29 Except as provided in subsection (j), the widow's annuity
30 shall not, however, exceed the sum of $500 a month if the
31 employee's death in service occurs before January 23, 1987.
32 The widow's annuity shall not be limited to a maximum dollar
33 amount if the employee's death in service occurs on or after
34 January 23, 1987.
-69- LRB093 05656 EFG 17166 a
1 If the employee dies in service before July 1, 1990, and
2 if such widow of such described employee shall not be 60 or
3 more years of age on such date of death, the amount provided
4 in the immediately preceding paragraph for a widow 60 or more
5 years of age, shall, in the case of such younger widow, be
6 reduced by 0.25% for each month that her then attained age is
7 less than 60 years if the employee was born before January 1,
8 1936, or dies in service on or after January 1, 1988, or 0.5%
9 for each month that her then attained age is less than 60
10 years if the employee was born on or after January 1, 1936
11 and dies in service before January 1, 1988.
12 If the employee dies in service on or after July 1, 1990,
13 and if the widow of the employee has not attained age 55 on
14 or before the employee's date of death, the amount otherwise
15 provided in this subsection (a) shall be reduced by 0.25% for
16 each month that her then attained age is less than 55 years;
17 except that if the employee dies in service on or after
18 January 1, 1998 at age 50 or over with at least 30 years of
19 service or at age 55 or over with at least 25 years of
20 service, there shall be no reduction due to the widow's age
21 if she has attained age 50 on or before the employee's date
22 of death, and if the widow has not attained age 50 on or
23 before the employee's date of death the amount otherwise
24 provided in this subsection (a) shall be reduced by 0.25% for
25 each month that her then attained age is less than 50 years.
26 (b) The widow of any employee who dies subsequent to the
27 date of his retirement on annuity, and who so retired on or
28 after the date on which he attained age 60 if retirement
29 occurs before July 1, 1990, or on or after the date on which
30 he attained age 55 if retirement occurs on or after July 1,
31 1990, with at least 20 years of service, or on or after the
32 date on which he attained age 50 if the retirement occurs on
33 or after the effective date of this amendatory Act of 1997
34 with at least 30 years of service, shall be entitled to an
-70- LRB093 05656 EFG 17166 a
1 annuity equal to one-half of the amount of annuity which her
2 deceased husband received as of the date of his retirement on
3 annuity, conditional upon such widow having attained age 60
4 on or before the date of her husband's retirement on annuity
5 if retirement occurs before July 1, 1990, or age 55 if
6 retirement occurs on or after July 1, 1990, or age 50 if the
7 retirement on annuity occurs on or after January 1, 1998 and
8 the employee is age 50 or over with at least 30 years of
9 service or age 55 or over with at least 25 years of service.
10 Except as provided in subsection (j), this widow's annuity
11 shall not, however, exceed the sum of $500 a month if the
12 employee's death occurs before January 23, 1987. The widow's
13 annuity shall not be limited to a maximum dollar amount if
14 the employee's death occurs on or after January 23, 1987,
15 regardless of the date of retirement; provided that, if
16 retirement was before January 23, 1987, the employee or
17 eligible spouse repays the excess spouse refund with interest
18 at the effective rate from the date of refund to the date of
19 repayment.
20 If the date of the employee's retirement on annuity is
21 before July 1, 1990, and if such widow of such described
22 employee shall not have attained such age of 60 or more years
23 on such date of her husband's retirement on annuity, the
24 amount provided in the immediately preceding paragraph for a
25 widow 60 or more years of age on the date of her husband's
26 retirement on annuity, shall, in the case of such then
27 younger widow, be reduced by 0.25% for each month that her
28 then attained age was less than 60 years if the employee was
29 born before January 1, 1936, or withdraws from service on or
30 after January 1, 1988, or 0.5% for each month that her then
31 attained age was less than 60 years if the employee was born
32 on or after January 1, 1936 and withdraws from service before
33 January 1, 1988.
34 If the date of the employee's retirement on annuity is on
-71- LRB093 05656 EFG 17166 a
1 or after July 1, 1990, and if the widow of the employee has
2 not attained age 55 by the date of the employee's retirement
3 on annuity, the amount otherwise provided in this subsection
4 (b) shall be reduced by 0.25% for each month that her then
5 attained age is less than 55 years; except that if the
6 employee retires on annuity on or after January 1, 1998 at
7 age 50 or over with at least 30 years of service or at age 55
8 or over with at least 25 years of service, there shall be no
9 reduction due to the widow's age if she has attained age 50
10 on or before the employee's date of death, and if the widow
11 has not attained age 50 on or before the employee's date of
12 death the amount otherwise provided in this subsection (b)
13 shall be reduced by 0.25% for each month that her then
14 attained age is less than 50 years.
15 (c) The foregoing provisions relating to minimum
16 annuities for widows shall not apply to the widow of any
17 former employee receiving an annuity from the fund on August
18 2, 1965 or on the effective date of this amendatory
19 provision, who re-enters service as a former employee, unless
20 such employee renders at least 3 years of additional service
21 after the date of re-entry.
22 (d) (Blank).
23 (e) (Blank).
24 (f) The amendments to this Section by this amendatory
25 Act of 1985, relating to changing the discount because of age
26 from 1/2 of 1% to 0.25% per month for widows of employees
27 born before January 1, 1936, shall apply only to qualifying
28 widows whose husbands die while in the service on or after
29 August 16, 1985 or withdraw and enter on annuity on or after
30 August 16, 1985.
31 (g) Beginning on January 1, 1999, the minimum amount of
32 widow's annuity shall be $800 per month for life for the
33 following classes of widows, without regard to the fact that
34 the death of the employee occurred prior to the effective
-72- LRB093 05656 EFG 17166 a
1 date of this amendatory Act of 1998:
2 (1) any widow annuitant alive and receiving a term
3 annuity on the effective date of this amendatory Act of
4 1998, except a reciprocal annuity;
5 (2) any widow annuitant alive and receiving a life
6 annuity on the effective date of this amendatory Act of
7 1998, except a reciprocal annuity;
8 (3) any widow annuitant alive and receiving a
9 reciprocal annuity on the effective date of this
10 amendatory Act of 1998, whose employee spouse's service
11 in this fund was at least 5 years;
12 (4) the widow of an employee with at least 10 years
13 of service in this fund who dies after retirement, if the
14 retirement occurred prior to the effective date of this
15 amendatory Act of 1998;
16 (5) the widow of an employee with at least 10 years
17 of service in this fund who dies after retirement, if
18 withdrawal occurs on or after the effective date of this
19 amendatory Act of 1998;
20 (6) the widow of an employee who dies in service
21 with at least 5 years of service in this fund, if the
22 death in service occurs on or after the effective date of
23 this amendatory Act of 1998.
24 The increases granted under items (1), (2), (3) and (4)
25 of this subsection (g) shall not be limited by any other
26 Section of this Act.
27 (g-5) Beginning on January 1, 2004, the minimum amount
28 of widow's annuity shall be $900 per month for life for the
29 following classes of widows, without regard to the fact that
30 the death of the employee occurred prior to the effective
31 date of this amendatory Act of the 93rd General Assembly:
32 (1) any widow annuitant alive and receiving a term
33 annuity on the effective date of this amendatory Act of
34 the 93rd General Assembly, except a reciprocal annuity;
-73- LRB093 05656 EFG 17166 a
1 (2) any widow annuitant alive and receiving a life
2 annuity on the effective date of this amendatory Act of
3 the 93rd General Assembly, except a reciprocal annuity;
4 (3) any widow annuitant alive and receiving a
5 reciprocal annuity on the effective date of this
6 amendatory Act of the 93rd General Assembly, whose
7 employee spouse's service in this fund was at least 5
8 years;
9 (4) the widow of an employee with at least 10 years
10 of service in this fund who dies after retirement, if the
11 retirement occurred prior to the effective date of this
12 amendatory Act of the 93rd General Assembly;
13 (5) the widow of an employee with at least 10 years
14 of service in this fund who dies after retirement, if
15 withdrawal occurs on or after the effective date of this
16 amendatory Act of the 93rd General Assembly;
17 (6) the widow of an employee who dies in service
18 with at least 5 years of service in this fund, if the
19 death in service occurs on or after the effective date of
20 this amendatory Act of the 93rd General Assembly.
21 The increases granted under items (1), (2), (3) and (4)
22 of this subsection (g-5) shall not be limited by any other
23 Section of this Act.
24 (g-10) Beginning on January 1, 2005, the minimum amount
25 of widow's annuity shall be $1,000 per month for life for the
26 following classes of widows, without regard to the fact that
27 the death of the employee occurred prior to the effective
28 date of this amendatory Act of the 93rd General Assembly:
29 (1) any widow annuitant alive and receiving a term
30 annuity on the effective date of this amendatory Act of
31 the 93rd General Assembly, except a reciprocal annuity;
32 (2) any widow annuitant alive and receiving a life
33 annuity on the effective date of this amendatory Act of
34 the 93rd General Assembly, except a reciprocal annuity;
-74- LRB093 05656 EFG 17166 a
1 (3) any widow annuitant alive and receiving a
2 reciprocal annuity on the effective date of this
3 amendatory Act of the 93rd General Assembly, whose
4 employee spouse's service in this fund was at least 5
5 years;
6 (4) the widow of an employee with at least 10 years
7 of service in this fund who dies after retirement, if the
8 retirement occurred prior to the effective date of this
9 amendatory Act of the 93rd General Assembly;
10 (5) the widow of an employee with at least 10 years
11 of service in this fund who dies after retirement, if
12 withdrawal occurs on or after the effective date of this
13 amendatory Act of the 93rd General Assembly;
14 (6) the widow of an employee who dies in service
15 with at least 5 years of service in this fund, if the
16 death in service occurs on or after the effective date of
17 this amendatory Act of the 93rd General Assembly.
18 The increases granted under items (1), (2), (3) and (4)
19 of this subsection (g-10) shall not be limited by any other
20 Section of this Act.
21 (h) The widow of an employee who retired or died in
22 service on or after January 1, 1985 and before July 1, 1990,
23 at age 55 or older, and with at least 35 years of service
24 credit, shall be entitled to have her widow's annuity
25 increased, effective January 1, 1991, to an amount equal to
26 50% of the retirement annuity that the deceased employee
27 received on the date of retirement, or would have been
28 eligible to receive if he had retired on the day preceding
29 the date of his death in service, provided that if the widow
30 had not attained age 60 by the date of the employee's
31 retirement or death in service, the amount of the annuity
32 shall be reduced by 0.25% for each month that her then
33 attained age was less than age 60 if the employee's
34 retirement or death in service occurred on or after January
-75- LRB093 05656 EFG 17166 a
1 1, 1988, or by 0.5% for each month that her attained age is
2 less than age 60 if the employee's retirement or death in
3 service occurred prior to January 1, 1988. However, in cases
4 where a refund of excess contributions for widow's annuity
5 has been paid by the Fund, the increase in benefit provided
6 by this subsection (h) shall be contingent upon repayment of
7 the refund to the Fund with interest at the effective rate
8 from the date of refund to the date of payment.
9 (i) If a deceased employee is receiving a retirement
10 annuity at the time of death and that death occurs on or
11 after June 27, 1997, the widow may elect to receive, in lieu
12 of any other annuity provided under this Article, 50% of the
13 deceased employee's retirement annuity at the time of death
14 reduced by 0.25% for each month that the widow's age on the
15 date of death is less than 55; except that if the employee
16 dies on or after January 1, 1998 and withdrew from service on
17 or after June 27, 1997 at age 50 or over with at least 30
18 years of service or at age 55 or over with at least 25 years
19 of service, there shall be no reduction due to the widow's
20 age if she has attained age 50 on or before the employee's
21 date of death, and if the widow has not attained age 50 on or
22 before the employee's date of death the amount otherwise
23 provided in this subsection (i) shall be reduced by 0.25% for
24 each month that her age on the date of death is less than 50
25 years. However, in cases where a refund of excess
26 contributions for widow's annuity has been paid by the Fund,
27 the benefit provided by this subsection (i) is contingent
28 upon repayment of the refund to the Fund with interest at the
29 effective rate from the date of refund to the date of
30 payment.
31 (j) For widows of employees who died before January 23,
32 1987 after retirement on annuity or in service, the maximum
33 dollar amount limitation on widow's annuity shall cease to
34 apply, beginning with the first annuity payment after the
-76- LRB093 05656 EFG 17166 a
1 effective date of this amendatory Act of 1997; except that if
2 a refund of excess contributions for widow's annuity has been
3 paid by the Fund, the increase resulting from this subsection
4 (j) shall not begin before the refund has been repaid to the
5 Fund, together with interest at the effective rate from the
6 date of the refund to the date of repayment.
7 (k) In lieu of any other annuity provided in this
8 Article, an eligible spouse of an employee who dies in
9 service at least 60 days after the effective date of this
10 amendatory Act of the 92nd General Assembly with at least 10
11 years of service shall be entitled to an annuity of 50% of
12 the minimum formula annuity earned and accrued to the credit
13 of the employee at the date of death. For the purposes of
14 this subsection, the minimum formula annuity earned and
15 accrued to the credit of the employee is equal to 2.40% for
16 each year of service of the highest average annual salary for
17 any 4 consecutive years within the last 10 years of service
18 immediately preceding the date of death, up to a maximum of
19 80% of the highest average annual salary. This annuity shall
20 not be reduced due to the age of the employee or spouse. In
21 addition to any other eligibility requirements under this
22 Article, the spouse is eligible for this annuity only if the
23 marriage was in effect for 10 full years or more.
24 (Source: P.A. 92-599, eff. 6-28-02.)
25 (40 ILCS 5/11-145.2 new)
26 Sec. 11-145.2. Automatic annual increase in widow's
27 annuity.
28 (a) Every widow's annuity, other than those annuities of
29 widows originally entitled to term annuities, shall be
30 increased on (1) January 1 next following the effective date
31 of this amendatory Act of the 93rd General Assembly, (2) the
32 January 1 immediately after the deceased employee's death, or
33 (3) the January 1 on or next after the date on which the
-77- LRB093 05656 EFG 17166 a
1 deceased employee would have been eligible for his or her
2 first increase, whichever occurs latest, by an amount equal
3 to 3% of the amount of widow's annuity. On each January 1
4 after the date of the initial increase under this Section,
5 the widow's annuity shall be increased by an amount equal to
6 3% of the amount of widow's annuity payable at the time of
7 the increase, including any increases previously granted
8 under this Article.
9 (b) Limitations on the maximum amount of widow's annuity
10 imposed under Section 11-149 do not apply to the annual
11 increases under this Section.
12 (c) The increases under this Section do not apply to
13 reversionary annuities under Section 11-134.2 or term
14 annuities under Section 11-152. The increases provided under
15 this Section do apply to compensation and supplemental
16 annuities under Section 11-146.
17 (40 ILCS 5/11-160.1) (from Ch. 108 1/2, par. 11-160.1)
18 Sec. 11-160.1. Payments to cityGroup health benefit.
19 (a) For the purposes of this Section, "city annuitant"
20 means a person receiving an age and service annuity, a
21 widow's annuity, a child's annuity, or a minimum annuity
22 under this Article as a direct result of previous employment
23 by the City of Chicago ("the city").
24 (b) The board shall pay to the city, on behalf of the
25 board's city annuitants who participate in any of the city's
26 health care plans, the following amounts:
27 (1) From July 1, 2003 through June 30, 2008, $85
28 per month for each such annuitant who is not eligible to
29 receive Medicare benefits and $55 per month for each such
30 annuitant who is eligible to receive Medicare benefits.
31 (2) From July 1, 2008 through June 30, 2013, $95
32 per month for each such annuitant who is not eligible to
33 receive Medicare benefits and $65 per month for each such
-78- LRB093 05656 EFG 17166 a
1 annuitant who is eligible to receive Medicare benefits.
2 The payments described in this subsection shall be paid
3 from the tax levy authorized under Section 11-169; such
4 amounts shall be credited to the reserve for group hospital
5 care and group medical and surgical plan benefits, and all
6 payments to the city required under this subsection shall be
7 charged against it.
8 (c) The city health care plans referred to in this
9 Section and the board's payments to the city under this
10 Section are not and shall not be construed to be pension or
11 retirement benefits for the purposes of Section 5 of Article
12 XIII of the Illinois Constitution of 1970.
13 (a) For the purposes of this Section: (1) "annuitant"
14 means a person receiving an age and service annuity, a prior
15 service annuity, a widow's annuity, a widow's prior service
16 annuity, or a minimum annuity, under Article 5, 6, 8 or 11,
17 by reason of previous employment by the City of Chicago
18 (hereinafter, in this Section, "the city"); (2) "Medicare
19 Plan annuitant" means an annuitant described in item (1) who
20 is eligible for Medicare benefits; and (3) "non-Medicare Plan
21 annuitant" means an annuitant described in item (1) who is
22 not eligible for Medicare benefits.
23 (b) The city shall offer group health benefits to
24 annuitants and their eligible dependents through June 30,
25 2003. The basic city health care plan available as of June
26 30, 1988 (hereinafter called the basic city plan) shall cease
27 to be a plan offered by the city, except as specified in
28 subparagraphs (4) and (5) below, and shall be closed to new
29 enrollment or transfer of coverage for any non-Medicare Plan
30 annuitant as of June 27, 1997. The city shall offer
31 non-Medicare Plan annuitants and their eligible dependents
32 the option of enrolling in its Annuitant Preferred Provider
33 Plan and may offer additional plans for any annuitant. The
34 city may amend, modify, or terminate any of its additional
-79- LRB093 05656 EFG 17166 a
1 plans at its sole discretion. If the city offers more than
2 one annuitant plan, the city shall allow annuitants to
3 convert coverage from one city annuitant plan to another,
4 except the basic city plan, during times designated by the
5 city, which periods of time shall occur at least annually.
6 For the period dating from June 27, 1997 through June 30,
7 2003, monthly premium rates may be increased for annuitants
8 during the time of their participation in non-Medicare plans,
9 except as provided in subparagraphs (1) through (4) of this
10 subsection.
11 (1) For non-Medicare Plan annuitants who retired
12 prior to January 1, 1988, the annuitant's share of
13 monthly premium for non-Medicare Plan coverage only shall
14 not exceed the highest premium rate chargeable under any
15 city non-Medicare Plan annuitant coverage as of December
16 1, 1996.
17 (2) For non-Medicare Plan annuitants who retire on
18 or after January 1, 1988, the annuitant's share of
19 monthly premium for non-Medicare Plan coverage only shall
20 be the rate in effect on December 1, 1996, with monthly
21 premium increases to take effect no sooner than April 1,
22 1998 at the lower of (i) the premium rate determined
23 pursuant to subsection (g) or (ii) 10% of the immediately
24 previous month's rate for similar coverage.
25 (3) In no event shall any non-Medicare Plan
26 annuitant's share of monthly premium for non-Medicare
27 Plan coverage exceed 10% of the annuitant's monthly
28 annuity.
29 (4) Non-Medicare Plan annuitants who are enrolled
30 in the basic city plan as of July 1, 1998 may remain in
31 the basic city plan, if they so choose, on the condition
32 that they are not entitled to the caps on rates set forth
33 in subparagraphs (1) through (3), and their premium rate
34 shall be the rate determined in accordance with
-80- LRB093 05656 EFG 17166 a
1 subsections (c) and (g).
2 (5) Medicare Plan annuitants who are currently
3 enrolled in the basic city plan for Medicare eligible
4 annuitants may remain in that plan, if they so choose,
5 through June 30, 2003. Annuitants shall not be allowed
6 to enroll in or transfer into the basic city plan for
7 Medicare eligible annuitants on or after July 1, 1999.
8 The city shall continue to offer annuitants a
9 supplemental Medicare Plan for Medicare eligible
10 annuitants through June 30, 2003, and the city may offer
11 additional plans to Medicare eligible annuitants in its
12 sole discretion. All Medicare Plan annuitant monthly
13 rates shall be determined in accordance with subsections
14 (c) and (g).
15 (c) The city shall pay 50% of the aggregated costs of
16 the claims or premiums, whichever is applicable, as
17 determined in accordance with subsection (g), of annuitants
18 and their dependents under all health care plans offered by
19 the city. The city may reduce its obligation by application
20 of price reductions obtained as a result of financial
21 arrangements with providers or plan administrators.
22 (d) From January 1, 1993 until June 30, 2003, the board
23 shall pay to the city on behalf of each of the board's
24 annuitants who chooses to participate in any of the city's
25 plans the following amounts: up to a maximum of $75 per month
26 for each such annuitant who is not qualified to receive
27 medicare benefits, and up to a maximum of $45 per month for
28 each such annuitant who is qualified to receive medicare
29 benefits.
30 The payments described in this subsection shall be paid
31 from the tax levy authorized under Section 11-178; such
32 amounts shall be credited to the reserve for group hospital
33 care and group medical and surgical plan benefits, and all
34 payments to the city required under this subsection shall be
-81- LRB093 05656 EFG 17166 a
1 charged against it.
2 (e) The city's obligations under subsections (b) and (c)
3 shall terminate on June 30, 2003, except with regard to
4 covered expenses incurred but not paid as of that date. This
5 subsection shall not affect other obligations that may be
6 imposed by law.
7 (f) The group coverage plans described in this Section
8 are not and shall not be construed to be pension or
9 retirement benefits for purposes of Section 5 of Article XIII
10 of the Illinois Constitution of 1970.
11 (g) For each annuitant plan offered by the city, the
12 aggregate cost of claims, as reflected in the claim records
13 of the plan administrator, shall be estimated by the city,
14 based upon a written determination by a qualified independent
15 actuary to be appointed and paid by the city and the board.
16 If the estimated annual cost for each annuitant plan offered
17 by the city is more than the estimated amount to be
18 contributed by the city for that plan pursuant to subsections
19 (b) and (c) during that year plus the estimated amounts to be
20 paid pursuant to subsection (d) and by the other pension
21 boards on behalf of other participating annuitants, the
22 difference shall be paid by all annuitants participating in
23 the plan, except as provided in subsection (b). The city,
24 based upon the determination of the independent actuary,
25 shall set the monthly amounts to be paid by the participating
26 annuitants. The board may deduct the amounts to be paid by
27 its annuitants from the participating annuitants' monthly
28 annuities.
29 If it is determined from the city's annual audit, or from
30 audited experience data, that the total amount paid by all
31 participating annuitants was more or less than the difference
32 between (1) the cost of providing the group health care
33 plans, and (2) the sum of the amount to be paid by the city
34 as determined under subsection (c) and the amounts paid by
-82- LRB093 05656 EFG 17166 a
1 all the pension boards, then the independent actuary and the
2 city shall account for the excess or shortfall in the next
3 year's payments by annuitants, except as provided in
4 subsection (b).
5 (h) An annuitant may elect to terminate coverage in a
6 plan at the end of any month, which election shall terminate
7 the annuitant's obligation to contribute toward payment of
8 the excess described in subsection (g).
9 (i) The city shall advise the board of all proposed
10 premium increases for health care at least 75 days prior to
11 the effective date of the change, and any increase shall be
12 prospective only.
13 (Source: P.A. 92-599, eff. 6-28-02.)
14 (40 ILCS 5/11-160.2 new)
15 Sec. 11-160.2. Payments to board of education for group
16 health benefits.
17 (a) Should the Board of Education continue to sponsor a
18 retiree health plan, the board is authorized to pay to the
19 Board of Education, on behalf of each eligible annuitant who
20 chooses to participate in the Board of Education's retiree
21 health benefit plan, the following amounts:
22 (1) From July 1, 2003 through June 30, 2008, $85
23 per month for each such annuitant who is not eligible to
24 receive Medicare benefits and $55 per month for each such
25 annuitant who is eligible to receive Medicare benefits.
26 (2) From July 1, 2008 through June 30, 2013, $95
27 per month for each such annuitant who is not eligible to
28 receive Medicare benefits and $65 per month for each such
29 annuitant who is eligible to receive Medicare benefits.
30 The payments described in this subsection shall be paid
31 from the tax levy authorized under Section 11-169; such
32 amounts shall be credited to the reserve for group hospital
33 care and group medical and surgical plan benefits, and all
-83- LRB093 05656 EFG 17166 a
1 payments to the Board of Education under this subsection
2 shall be charged against it.
3 (b) The Board of Education health benefit plan referred
4 to in this Section and the board's payments to the Board of
5 Education under this Section are not and shall not be
6 construed to be pension or retirement benefits for the
7 purposes of Section 5 of Article XIII of the Illinois
8 Constitution of 1970.
9 (40 ILCS 5/11-163) (from Ch. 108 1/2, par. 11-163)
10 Sec. 11-163. Restoration of rights. An employee who has
11 withdrawn as a refund the amounts credited for annuity
12 purposes, and who (i) re-enters service of the employer and
13 serves for periods comprising at least 90 days2 years after
14 the date of the last refund paid to him or (ii) has completed
15 at least 2 years of service under a participating system (as
16 defined in the Retirement Systems Reciprocal Act) other than
17 this Fund after the date of the last refund, shall have his
18 annuity rights restored by making application to the board in
19 writing for the privilege of re-instating such rights and by
20 compliance with the following provisions:
21 (a) After that 90 day or 2 year period, whichever
22 applies, he shall repay in full to the Fund, while in
23 service, in full all refunds received, together with
24 interest at the effective rate from the application dates
25 of such refund or refunds to the date of repayment.;
26 (b) If payment is not made in a single sum,
27 repayment may be made in installments by deductions from
28 salary or otherwise, in such manner and amounts as the
29 board, by rule, may prescribe, with interest at the
30 effective rate accruing on the unpaid balanceemployee
31 may elect. The employee shall be credited with interest
32 at the effective rate from the date of each installment
33 until full repayment is made.
-84- LRB093 05656 EFG 17166 a
1 (c) If the employee withdraws from service or dies
2 in service before full repayment is made, service credit
3 shall be restored in accordance with Section 11-221.2(b).
4 (d) If the employee withdraws from service or dies
5 in serviceor during the required 90 day or 2 year
6 period, any repayments made shall be refunded, without
7 interest thereon and in accordance with the refund
8 provisions of this Article.
9 (e) If the employee repays the refund while
10 participating in a participating system (as defined in
11 the Retirement Systems Reciprocal Act) other than this
12 Fund, the service credit restored must be used for a
13 proportional annuity calculated in accordance with the
14 Retirement Systems Reciprocal Act. If not so used, the
15 restored service credit shall be forfeited and the amount
16 of the repayment shall be refunded, without interest.
17 (Source: Laws 1963, p. 161.)
18 (40 ILCS 5/11-167) (from Ch. 108 1/2, par. 11-167)
19 Sec. 11-167. Refunds in lieu of annuity. In lieu of an
20 annuity, an employee who withdraws, and whose annuity would
21 amount to less than $800 a month for life may elect to
22 receive a refund of the total sum accumulated to his credit
23 from employee contributions for annuity purposes.
24 The widow of any employee, eligible for annuity upon the
25 death of her husband, whose annuity would amount to less than
26 $800 a month for life, may, in lieu of a widow's annuity,
27 elect to receive a refund of the accumulated contributions
28 for annuity purposes, based on the amounts contributed by her
29 deceased employee husband, but reduced by any amounts
30 theretofore paid to him in the form of an annuity or refund
31 out of such accumulated contributions.
32 Accumulated contributions shall mean the amounts
33 including interest credited thereon contributed by the
-85- LRB093 05656 EFG 17166 a
1 employee for age and service and widow's annuity to the date
2 of his withdrawal or death, whichever first occurs, and
3 including the accumulations from any amounts contributed for
4 him as salary deductions while receiving duty disability
5 benefits; provided that such amounts contributed by the city
6 after December 31, 1983 while the employee is receiving duty
7 disability benefits and amounts credited to the employee for
8 annuity purposes by the fund after December 31, 2000 while
9 the employee is receiving ordinary disability benefits shall
10 not be included.
11 The acceptance of such refund in lieu of widow's annuity,
12 on the part of a widow, shall not deprive a child or children
13 of the right to receive a child's annuity as provided for in
14 Sections 11-153 and 11-154 of this Article, and neither shall
15 the payment of a child's annuity in the case of such refund
16 to a widow reduce the amount herein set forth as refundable
17 to such widow electing a refund in lieu of widow's annuity.
18 (Source: P.A. 91-887, eff. 7-6-00; 92-599, eff. 6-28-02;
19 revised 10-22-02.)
20 (40 ILCS 5/11-170.1) (from Ch. 108 1/2, par. 11-170.1)
21 Sec. 11-170.1. Pickup of employee contributions.
22 (a) The employer may pick up the employee contributions
23 required by Sections 11-156, 11-170, 11-174 and 11-175.1 for
24 salary earned after December 31, 1981. If employee
25 contributions are not picked up, the amount that would have
26 been picked up under this amendatory Act of 1980 shall
27 continue to be deducted from salary. If contributions are
28 picked up they shall be treated as employer contributions in
29 determining tax treatment under the United States Internal
30 Revenue Code; however, the employer shall continue to
31 withhold Federal and state income taxes based upon these
32 contributions until the Internal Revenue Service or the
33 Federal courts rule that pursuant to Section 414(h) of the
-86- LRB093 05656 EFG 17166 a
1 United States Internal Revenue Code, these contributions
2 shall not be included as gross income of the employee until
3 such time as they are distributed or made available. The
4 employer shall pay these employee contributions from the same
5 source of funds which is used in paying salary to the
6 employee. The employer may pick up these contributions by a
7 reduction in the cash salary of the employee or by an offset
8 against a future salary increase or by a combination of a
9 reduction in salary and offset against a future salary
10 increase. If employee contributions are picked up they shall
11 be treated for all purposes of this Article 11, including
12 Section 11-169, in the same manner and to the same extent as
13 employee contributions made prior to the date picked up.
14 (b) Subject to the requirements of federal law and the
15 rules of the Board, the Fund may allow the employee to elect
16 to have the employer pick up the optional contributions that
17 the employee has elected to pay to the Fund, and the
18 contributions so picked up shall be treated as employer
19 contributions for the purpose of determining federal tax
20 treatment. The employer shall pick up the contributions by a
21 reduction in the cash salary of the employee and shall pay
22 contributions from the same source of funds that is used to
23 pay earnings of the employee. The election to have the
24 contributions picked up is irrevocable, and the optional
25 contributions may not thereafter be prepaid, by direct
26 payment or otherwise.
27 If the provision authorizing the optional contribution
28 requires payment by a stated date (rather than the date of
29 withdrawal or retirement), the requirement will be deemed to
30 have been satisfied if (i) on or before the stated date the
31 employee executes a valid irrevocable election to have the
32 contributions picked up under this subsection, and (ii) the
33 picked-up contributions are in fact paid to the Fund as
34 provided in the election.
-87- LRB093 05656 EFG 17166 a
1 If employee contributions are picked up under this
2 subsection, they shall be treated for all purposes of this
3 Article 11, including Section 11-169, in the same manner and
4 to the same extent as optional employee contributions made
5 prior to the date picked up.
6 (Source: P.A. 81-1536.)
7 (40 ILCS 5/11-221.4 new)
8 Sec. 11-221.4. Credit for certain military service. In
9 addition to any creditable service established under Section
10 11-221, creditable service for annuity purposes only may be
11 granted for up to 2 years of service in the armed forces of
12 the United States that was not immediately preceded by
13 service with the employer. A member shall receive service
14 credit for military service under this Section, provided that
15 all of the following conditions are met:
16 (1) The employee must be employed by the employer
17 and contributing to the Fund for current service when he
18 makes the payment for military service.
19 (2) The employee must have entered or re-entered
20 the service of the employer within 2 years after his
21 discharge.
22 (3) The discharge from military service must have
23 been other than a dishonorable discharge.
24 (4) The employee must apply to the Fund in writing
25 and provide evidence of the military service that is
26 satisfactory to the Board.
27 (5) The employee must have paid for all unpaid
28 service with the employer (refund repayment, payment for
29 temporary service, or any other service with the
30 employer) before payment may be made under this Section.
31 (6) The employee must have been in active duty
32 military service; service in the military reserves is not
33 eligible under this Section.
-88- LRB093 05656 EFG 17166 a
1 (7) The employee must not receive credit in any
2 other pension plan for this period of military service.
3 (8) The employee must contribute to the Fund an
4 amount representing employee contributions. The required
5 contribution shall be calculated by the Fund, based on
6 the contribution rates in effect during the period of
7 military service and the employee's salary rate on the
8 first day of service in the Fund following the military
9 service, and shall include interest at the effective rate
10 from the employee's first day of service in the Fund
11 following the military service to the date of payment.
12 The employee must pay the required contribution in full
13 before withdrawal or death in service. If the employee
14 withdraws or dies in service before full payment is made,
15 the amount paid by him shall be refunded.
16 (9) The amount of military service credit
17 established by an employee under this Section shall not
18 exceed 2 years.
19 (40 ILCS 5/13-301) (from Ch. 108 1/2, par. 13-301)
20 Sec. 13-301. Retirement annuity; eligibility. Any
21 employee who withdraws from service and meets the age and
22 service requirements and other conditions set forth in
23 subsections (a), (b), (c) or (d) hereof is entitled to
24 receive a retirement annuity.
25 (a) Withdrawal on or after age 60. Any employee, upon
26 withdrawal from service on or after attainment of age 60 and
27 having at least 5 years of service, is entitled to a
28 retirement annuity.
29 (b) Withdrawal on or after attainment of minimum
30 retirement qualifications and prior to age 60.
31 (1) Any employee, upon withdrawal from service on
32 or after attainment of age 55 (age 50 if the employee
33 first entered service before June 13, 1997) but prior to
-89- LRB093 05656 EFG 17166 a
1 age 60 and having at least 10 years of service, is
2 entitled to a retirement annuity as of the date of
3 withdrawal or, at the option of the employee, at any time
4 thereafter.
5 (2) Any employee who withdraws on or after
6 attainment of age 55 (age 50 if the employee first
7 entered service before June 13, 1997) and prior to age 60
8 having at least 5 years but less than 10 years of service
9 is entitled to a retirement annuity upon attainment of
10 age 62, subject to the other requirements of this
11 Article.
12 (3) Any employee who withdraws from service on or
13 after attainment of age 50 but prior to age 60 and is
14 eligible for early retirement without discount under the
15 Rule of 80 as provided in subsection (c) of Section
16 13-302 is entitled to a retirement annuity at the time of
17 withdrawal.
18 (c) Withdrawal prior to minimum retirement age. Any
19 employee, upon withdrawal from service prior to age 55 (age
20 50 if the employee first entered service before June 13,
21 1997) and having at least 10 years of service, shall become
22 entitled to a retirement annuity upon attainment of age 55
23 (age 50 if the employee first entered service before June 13,
24 1997) or, at the option of the employee, at any time
25 thereafter, subject to the other requirements of this
26 Article.
27 (d) Withdrawal while disabled. Any employee having at
28 least 5 years of service who has received ordinary disability
29 benefits on or after January 1, 1986 for the maximum period
30 of time hereinafter prescribed, and who continues to be
31 disabled and withdraws from service, shall be entitled to a
32 retirement annuity. In the case of an employee who enters
33 service after the effective date of this amendatory Act of
34 the 93rd General Assembly, the required 5 years of service is
-90- LRB093 05656 EFG 17166 a
1 exclusive of service credit described in Section 13-313. The
2 age and service conditions as to eligibility for such annuity
3 shall be waived as to the employee, but the early retirement
4 discount under Section 13-302(b) shall apply. If the
5 employee is under age 55 on the date of withdrawal, the
6 retirement annuity shall be computed by assuming that the
7 employee is then age 55 and then reduced to its actuarial
8 equivalent at his attained age on that date according to
9 applicable mortality tables and interest rates. The
10 retirement annuity shall not be payable for any period prior
11 to the employee's attainment of age 55 during which the
12 employee is able to return to gainful employment. Upon the
13 employee's death while in receipt of a retirement annuity, a
14 surviving spouse or minor children shall be entitled to
15 receive a surviving spouse's annuity or child's annuity
16 subject to the conditions hereinafter prescribed in Sections
17 13-305 through 13-308.
18 (Source: P.A. 92-599, eff. 6-28-02.)
19 (40 ILCS 5/13-302) (from Ch. 108 1/2, par. 13-302)
20 Sec. 13-302. Computation of retirement annuity.
21 (a) Computation of annuity. An employee who withdraws
22 from service on or after July 1, 1989 and who has met the age
23 and service requirements and other conditions for eligibility
24 set forth in Section 13-301 of this Article is entitled to
25 receive a retirement annuity for life equal to 2.2% of
26 average final salary for each of the first 20 years of
27 service, and 2.4% of average final salary for each year of
28 service in excess of 20. The retirement annuity shall not
29 exceed 80% of average final salary.
30 (b) Early retirement discount. If an employee retires
31 prior to attainment of age 60 with less than 30 years of
32 service, the annuity computed above shall be reduced by 1/2
33 of 1% for each full month between the date the annuity begins
-91- LRB093 05656 EFG 17166 a
1 and attainment of age 60, or each full month by which the
2 employee's service is less than 30 years, whichever is less.
3 However, where the employee first enters service after June
4 13, 1997 and does not have at least 10 years of service
5 exclusive of credit under Article 20, the annuity computed
6 above shall be reduced by 1/2 of 1% for each full month
7 between the date the annuity begins and attainment of age 60.
8 (c) Rule of 80 - Early retirement without discount. For
9 an employee who retires on or after January 1, 2003 but on or
10 before December 31, 2007, if the employee is eligible for a
11 retirement annuity under Section 13-301 and has at least 10
12 years of service exclusive of credit under Article 20 and if
13 at the date of withdrawal the employee's age when added to
14 the number of years of his or her creditable service equals
15 at least 80, the early retirement discount in subsection (b)
16 of this Section does not apply. For purposes of this Rule of
17 80, portions of years shall be considered in whole months.
18 An employee who has terminated employment with the
19 employer under this Article prior to the effective date of
20 this amendatory Act of the 92nd General Assembly and
21 subsequently re-enters service must remain in service with
22 the employer under this Article for at least 2 years after
23 re-entry during the period beginning on January 1, 2003 and
24 ending on December 31, 2007 to be entitled to early
25 retirement without discount under this subsection (c).
26 In the case of an employee who retires under the terms of
27 Article 20, eligibility for early retirement without discount
28 under this subsection (c) shall be based upon the employee's
29 age and service credit at the time of withdrawal from the
30 final fund.
31 (c-1) Early retirement without discount; retirement
32 after June 29, 1997 and before January 1, 2003. An employee
33 who (i) has attained age 55 (age 50 if the employee first
34 entered service before June 13, 1997), (ii) has at least 10
-92- LRB093 05656 EFG 17166 a
1 years of service exclusive of credit under Article 20, (iii)
2 retires after June 29, 1997 and before January 1, 2003, and
3 (iv) retires within 6 months of the last day for which
4 retirement contributions were required, may elect at the time
5 of application to make a one-time employee contribution to
6 the Fund and thereby avoid the early retirement reduction
7 specified in subsection (b). The exercise of the election
8 shall also obligate the employer to make a one-time
9 nonrefundable contribution to the Fund.
10 The one-time employee and employer contributions shall be
11 a percentage of the retiring employee's highest full-time
12 annual salary, calculated as the total amount of salary
13 included in the highest 26 consecutive pay periods as used in
14 the average final salary calculation, and based on the
15 employee's age and service at retirement. The employee rate
16 shall be 7% multiplied by the lesser of the following 2
17 numbers: (1) the number of years, or portion thereof, that
18 the employee is less than age 60; or (2) the number of years,
19 or portion thereof, that the employee's service is less than
20 30 years. The employer contribution shall be at the rate of
21 20% for each year, or portion thereof, that the participant
22 is less than age 60.
23 Upon receipt of the application, the Board shall
24 determine the corresponding employee and employer
25 contributions. The annuity shall not be payable under this
26 subsection until both the required contributions have been
27 received by the Fund. However, the date the contributions
28 are received shall not be considered in determining the
29 effective date of retirement.
30 The number of employees who may retire under this Section
31 in any year may be limited at the option of the District to a
32 specified percentage of those eligible, not lower than 30%,
33 with the right to participate to be allocated among those
34 applying on the basis of seniority in the service of the
-93- LRB093 05656 EFG 17166 a
1 employer.
2 An employee who has terminated employment and
3 subsequently re-enters service shall not be entitled to early
4 retirement without discount under this subsection unless the
5 employee continues in service for at least 4 years after
6 re-entry.
7 (d) Annual increase. Except for employees retiring and
8 receiving a term annuity, an employee who retires on or after
9 July 1, 1985 but before July 12, 2001, shall, upon the first
10 payment date following the first anniversary of the date of
11 retirement, have the monthly annuity increased by 3% of the
12 amount of the monthly annuity fixed at the date of
13 retirement. Except for employees retiring and receiving a
14 term annuity, an employee who retires on or after July 12,
15 2001 shall, on the first day of the month in which the first
16 anniversary of the date of retirement occurs, have the
17 monthly annuity increased by 3% of the amount of the monthly
18 annuity fixed at the date of retirement. The monthly annuity
19 shall be increased by an additional 3% on the same date each
20 year thereafter. Beginning January 1, 1993, all annual
21 increases payable under this subsection (or any predecessor
22 provision, regardless of the date of retirement) shall be
23 calculated at the rate of 3% of the monthly annuity payable
24 at the time of the increase, including any increases
25 previously granted under this Article.
26 Any employee who (i) retired before July 1, 1985 with at
27 least 10 years of creditable service, (ii) is receiving a
28 retirement annuity under this Article, other than a term
29 annuity, and (iii) has not received any annual increase under
30 this subsection, shall begin receiving the annual increases
31 provided under this subsection (d) beginning on the next
32 annuity payment date following June 13, 1997.
33 (e) Minimum retirement annuity. Beginning January 1,
34 1993, the minimum monthly retirement annuity shall be $500
-94- LRB093 05656 EFG 17166 a
1 for any annuitant having at least 10 years of service under
2 this Article, other than a term annuitant or an annuitant who
3 began receiving the annuity before attaining age 60. Any
4 such annuitant who is receiving a monthly annuity of less
5 than $500 shall have the annuity increased to $500 on that
6 date.
7 Beginning January 1, 1993, the minimum monthly retirement
8 annuity shall be $250 for any annuitant (other than a term or
9 reciprocal annuitant or an annuitant under subsection (d) of
10 Section 13-301) having less than 10 years of service under
11 this Article, and for any annuitant (other than a term
12 annuitant) having at least 10 years of service under this
13 Article who began receiving the annuity before attaining age
14 60. Any such annuitant who is receiving a monthly annuity of
15 less than $250 shall have the annuity increased to $250 on
16 that date.
17 Beginning August 1, 2001on the first day of the month
18 following the month in which this amendatory Act of the 92nd
19 General Assembly takes effect (and without regard to whether
20 the annuitant was in service on or after that effective
21 date), the minimum monthly retirement annuity for any
22 annuitant having at least 10 years of service, other than an
23 annuitant whose annuity is subject to an early retirement
24 discount, shall be $500 plus $25 for each year of service in
25 excess of 10, not to exceed $750 for an annuitant with 20 or
26 more years of service. In the case of a reciprocal annuity,
27 this minimum shall apply only if the annuitant has at least
28 10 years of service under this Article, and the amount of the
29 minimum annuity shall be reduced by the sum of all the
30 reciprocal annuities payable to the annuitant by other
31 participating systems under Article 20 of this Code.
32 Notwithstanding any other provision of this subsection,
33 beginning on the first annuity payment date following July
34 12, 2001, an employee who retired before August 23, 1989 with
-95- LRB093 05656 EFG 17166 a
1 at least 10 years of service under this Article but before
2 attaining age 60 (regardless of whether the retirement
3 annuity was subject to an early retirement discount) shall be
4 entitled to the same minimum monthly retirement annuity under
5 this subsection as an employee who retired with at least 10
6 years of service under this Article and after attaining age
7 60.
8 Notwithstanding any other provision of this subsection,
9 beginning on the first day of the month following the month
10 in which this amendatory Act of the 93rd General Assembly
11 takes effect (and without regard to whether the annuitant was
12 in service on or after that effective date), an employee who
13 retired on or after August 23, 1989 with at least 10 years of
14 service under this Article but before attaining age 60
15 (regardless of whether the retirement annuity was subject to
16 an early retirement discount but not a retiree who had been
17 receiving a retirement annuity pursuant to subsection (d) of
18 Section 13-301), shall be entitled to the same minimum
19 monthly retirement annuity under this subsection as an
20 employee who retired with at least 10 years of service under
21 this Article and after attaining age 60.
22 (Source: P.A. 92-53, eff. 7-12-01; 92-599, eff. 6-28-02.)
23 (40 ILCS 5/13-306) (from Ch. 108 1/2, par. 13-306)
24 Sec. 13-306. Computation of surviving spouse's annuity.
25 (a) Computation of the annuity. The surviving spouse's
26 annuity shall be equal to 60% of the retirement annuity
27 earned and accrued to the credit of the deceased employee,
28 whether death occurs while in service or after withdrawal,
29 plus 1% for each year of total service of the employee to a
30 maximum of 85%; provided, however, that if the employee's
31 death arises out of and in the course of the employee's
32 service to the employer and is compensable under either the
33 Illinois Workers' Compensation Act or Illinois Workers'
-96- LRB093 05656 EFG 17166 a
1 Occupational Diseases Act, the surviving spouse's annuity is
2 payable regardless of the employee's length of service and
3 shall be not less than 50% of the employee's salary at the
4 date of death.
5 For any death in service the early retirement discount
6 required under Section 13-302(b) shall not be applied in
7 computing the retirement annuity upon which is based the
8 surviving spouse's annuity.
9 (b) Reciprocal service. For any employee or annuitant
10 who retires on or after July 1, 1985 and whose death occurs
11 after January 1, 1991, having at least 15 years of service
12 with the employer under this Article, and who was eligible at
13 the time of death or elected at the time of retirement to
14 have his or her retirement annuity calculated as provided in
15 Section 20-131 of this Code, the surviving spouse benefit
16 shall be calculated as of the date of the employee's death as
17 indicated in subsection (a) as a percentage of the employee's
18 total benefit as if all service had been with the employer.
19 That benefit shall then be reduced by the amounts payable by
20 each of the reciprocal funds as of the date of death so that
21 the total surviving spouse benefit at that date will be equal
22 to the benefit which would have been payable had all service
23 been with the employer under this Article.
24 (c) Discount for age differential. The annuity for a
25 surviving spouse shall be discounted by 0.25% for each full
26 month that the spouse is younger than the employee as of the
27 date of withdrawal from service or death in service to a
28 maximum discount of 60% of the surviving spouse annuity as
29 calculated under subsections (a), (b), and (e) of this
30 Section. The discount shall be reduced by 10% for each full
31 year the marriage has been in continuous effect as of the
32 date of withdrawal or death in service. There shall be no
33 discount if the marriage has been in continuous effect for 10
34 full years or more at the time of withdrawal or death in
-97- LRB093 05656 EFG 17166 a
1 service.
2 (d) Annual increase. Effective August 23, 1989, on the
3 first day of each calendar month in which there occurs an
4 anniversary of the employee's date of retirement or date of
5 death, whichever occurred first, the surviving spouse's
6 annuity, other than a term annuity under Section 13-307,
7 shall be increased by an amount equal to 3% of the amount of
8 the annuity. Beginning January 1, 1993, all annual increases
9 payable under this subsection (or any predecessor provision
10 of this Article) shall be calculated at the rate of 3% of the
11 monthly annuity payable at the time of the increase,
12 including any increases previously granted under this
13 Article.
14 Beginning January 1, 1993, surviving spouse annuitants
15 whose deceased spouse died, retired or withdrew from service
16 before August 23, 1989 with at least 10 years of service
17 under this Article shall be eligible for the annual increases
18 provided under this subsection.
19 (e) Minimum surviving spouse's annuity.
20 (1) Beginning January 1, 1993, the minimum monthly
21 surviving spouse's annuity shall be $500 for any
22 annuitant whose deceased spouse had at least 10 years of
23 service under this Article, other than a surviving spouse
24 who is a term annuitant or whose deceased spouse began
25 receiving a retirement annuity under this Article before
26 attainment of age 60. Any such surviving spouse
27 annuitant who is receiving a monthly annuity of less than
28 $500 shall have the annuity increased to $500 on that
29 date.
30 Beginning January 1, 1993, the minimum monthly
31 surviving spouse's annuity shall be $250 for any
32 annuitant (other than a term or reciprocal annuitant or
33 an annuitant survivor under subsection (d) of Section
34 13-301) whose deceased spouse had less than 10 years of
-98- LRB093 05656 EFG 17166 a
1 service under this Article, and for any annuitant (other
2 than a term annuitant) whose deceased spouse had at least
3 10 years of service under this Article and began
4 receiving a retirement annuity under this Article before
5 attainment of age 60. Any such surviving spouse
6 annuitant who is receiving a monthly annuity of less than
7 $250 shall have the annuity increased to $250 on that
8 date.
9 (2) Beginning August 1, 2001on the first day of
10 the month following the month in which this amendatory
11 Act of the 92nd General Assembly takes effect (and
12 without regard to whether the deceased spouse was in
13 service on or after that effective date), the minimum
14 monthly surviving spouse's annuity for any annuitant
15 whose deceased spouse had at least 10 years of service
16 shall be the greater of the following:
17 (A) An amount equal to $500, plus $25 for each
18 year of the deceased spouse's service in excess of
19 10, not to exceed $750 for an annuitant whose
20 deceased spouse had 20 or more years of service.
21 This subdivision (A) is not applicable if the
22 deceased spouse received a retirement annuity that
23 was subject to an early retirement discount.
24 (B) An amount equal to (i) 50% of the
25 retirement annuity earned and accrued to the credit
26 of the deceased spouse at the time of death, plus
27 (ii) the amount of any annual increases applicable
28 to the surviving spouse's annuity (including the
29 amount of any reversionary annuity) under subsection
30 (d) before July 12, 2001the effective date of this
31 amendatory Act of the 92nd General Assembly. In any
32 case in which a refund of excess contributions for
33 the surviving spouse annuity has been paid by the
34 Fund and the surviving spouse annuity is increased
-99- LRB093 05656 EFG 17166 a
1 due to the application of this subdivision (B), the
2 amount of that refund shall be recovered by the Fund
3 as an offset against the amount of the increase in
4 annuity arising from the application of this
5 subdivision (B).
6 In the case of a reciprocal annuity, the
7 minimum annuity calculated under this subdivision
8 (e)(2) shall apply only if the deceased spouse of
9 the annuitant had at least 10 years of service under
10 this Article, and the amount of the minimum annuity
11 shall be reduced by the sum of all the reciprocal
12 annuities payable to the annuitant by other
13 participating systems under Article 20 of this Code.
14 The minimum annuity calculated under this
15 subdivision (e)(2) is in addition to the amount of
16 any reversionary annuity that may be payable.
17 (3) Beginning August 1, 2001on the first day of
18 the month following the month in which this amendatory
19 Act of the 92nd General Assembly takes effect (and
20 without regard to whether the deceased spouse was in
21 service on or after that effective date), any surviving
22 spouse who is receiving a term annuity under Section
23 13-307 or any predecessor provision of this Article may
24 have that term annuity recalculated and converted to a
25 minimum surviving spouse annuity under this subsection
26 (e).
27 (4) Notwithstanding any other provision of this
28 subsection, beginning August 1, 2001on the first annuity
29 payment date following the effective date of this
30 amendatory Act of the 92nd General Assembly, an annuitant
31 whose deceased spouse retired before August 23, 1989 with
32 at least 10 years of service under this Article but
33 before attaining age 60 (regardless of whether the
34 retirement annuity was subject to an early retirement
-100- LRB093 05656 EFG 17166 a
1 discount) shall be entitled to the same minimum monthly
2 surviving spouse's annuity under this subsection as an
3 annuitant whose deceased spouse retired with at least 10
4 years of service under this Article and after attaining
5 age 60. Further notwithstanding any other provision of
6 this subsection, beginning on the first day of the month
7 following the month in which this amendatory Act of the
8 93rd General Assembly takes effect, an annuitant whose
9 deceased spouse retired on or after August 23, 1989 with
10 at least 10 years of service under this Article but
11 before attaining age 60 (regardless of whether the
12 retirement annuity was subject to an early retirement
13 discount but not the surviving spouse of a retiree who
14 had been receiving a retirement annuity pursuant to
15 subsection (d) of Section 13-301) shall be entitled to
16 the same minimum monthly surviving spouse's annuity under
17 this subsection as an annuitant whose deceased spouse
18 retired with at least 10 years of service under this
19 Article and after attaining age 60.
20 (5) The minimum annuity provided under this
21 subsection (e) shall be subject to the age discount
22 provided under subsection (c) of this Section.
23 (Source: P.A. 92-53, eff. 7-12-01.)
24 (40 ILCS 5/13-314) (from Ch. 108 1/2, par. 13-314)
25 Sec. 13-314. Alternative provisions for Water
26 Reclamation District commissioners.
27 (a) Transfer of credits. Any Water Reclamation District
28 commissioner elected by vote of the people and who has
29 elected to participate in this Fund may transfer to this Fund
30 credits and creditable service accumulated under any other
31 pension fund or retirement system established under Articles
32 2 through 18 of this Code, upon payment to the Fund of (1)
33 the amount by which the employer and employee contributions
-101- LRB093 05656 EFG 17166 a
1 that would have been required if he had participated in this
2 Fund during the period for which credit is being transferred,
3 plus interest, exceeds the amounts actually transferred from
4 such other fund or system to this Fund, plus (2) interest
5 thereon at 6% per year compounded annually from the date of
6 transfer to the date of payment.
7 (b) Alternative annuity. Any participant commissioner
8 may elect to establish alternative credits for an alternative
9 annuity by electing in writing to make additional optional
10 contributions in accordance with this Section and procedures
11 established by the Board. Unless and until such time as the
12 U.S. Internal Revenue Service or the federal courts provide a
13 favorable ruling as described in Section 13-502(f), asuch
14 commissioner may discontinue making the additional optional
15 contributions by notifying the Fund in writing in accordance
16 with this Section and procedures established by the Board.
17 Additional optional contributions for the alternative
18 annuity shall be as follows:
19 (1) For service after the option is elected, an
20 additional contribution of 3% of salary shall be
21 contributed to the Fund on the same basis and under the
22 same conditions as contributions required under Section
23 13-502.
24 (2) For contributions on past service, the
25 additional contribution shall be 3% of the salary for the
26 applicable period of service, plus interest at the annual
27 rate from time to time as determined by the Board,
28 compounded annually from the date of service to the date
29 of payment. Contributions for service before the option
30 is elected may be made in a lump sum payment to the Fund
31 or by contributing to the Fund on the same basis and
32 under the same conditions as contributions required under
33 Section 13-502. All payments for past service must be
34 paid in full before credit is given. No additional
-102- LRB093 05656 EFG 17166 a
1 optional contributions may be made for any period of
2 service for which credit has been previously forfeited by
3 acceptance of a refund, unless the refund is repaid in
4 full with interest at the rate specified in Section
5 13-603, from the date of refund to the date of repayment.
6 In lieu of the retirement annuity otherwise payable under
7 this Article, any commissioner who has elected to participate
8 in the Fund and make additional optional contributions in
9 accordance with this Section, has attained age 55, and has at
10 least 6 years of service credit, may elect to have the
11 retirement annuity computed as follows: 3% of the
12 participant's average final salary as a commissioner for each
13 of the first 8 years of service credit, plus 4% of such
14 salary for each of the next 4 years of service credit, plus
15 5% of such salary for each year of service credit in excess
16 of 12 years, subject to a maximum of 80% of such salary. To
17 the extent such commissioner has made additional optional
18 contributions with respect to only a portion of years of
19 service credit, the retirement annuity will first be
20 determined in accordance with this Section to the extent such
21 additional optional contributions were made, and then in
22 accordance with the remaining Sections of this Article to the
23 extent of years of service credit with respect to which
24 additional optional contributions were not made. The change
25 in minimum retirement age (from 60 to 55) made by this
26 amendatory Act of 1993 applies to persons who begin receiving
27 a retirement annuity under this Section on or after the
28 effective date of this amendatory Act, without regard to
29 whether they are in service on or after that date.
30 (c) Disability benefits. In lieu of the disability
31 benefits otherwise payable under this Article, any
32 commissioner who (1) has elected to participate in the Fund,
33 and (2) has become permanently disabled and as a consequence
34 is unable to perform the duties of office, and (3) was making
-103- LRB093 05656 EFG 17166 a
1 optional contributions in accordance with this Section at the
2 time the disability was incurred, may elect to receive a
3 disability annuity calculated in accordance with the formula
4 in subsection (b). For the purposes of this subsection, such
5 commissioner shall be considered permanently disabled only
6 if: (i) disability occurs while in service as a commissioner
7 and is of such a nature as to prevent the reasonable
8 performance of the duties of office at the time; and (ii) the
9 Board has received a written certification by at least 2
10 licensed physicians appointed by it stating that such
11 commissioner is disabled and that the disability is likely to
12 be permanent.
13 (d) Alternative survivor's benefits. In lieu of the
14 survivor's benefits otherwise payable under this Article, the
15 spouse or eligible child of any deceased commissioner who (1)
16 had elected to participate in the Fund, and (2) was either
17 making additional optional contributions on the date of
18 death, or was receiving an annuity calculated under this
19 Section at the time of death, may elect to receive an annuity
20 beginning on the date of the commissioner's death, provided
21 that the spouse and commissioner must have been married on
22 the date of the last termination of a service as commissioner
23 and for a continuous period of at least one year immediately
24 preceding death.
25 The annuity shall be payable beginning on the date of the
26 commissioner's death if the spouse is then age 50 or over, or
27 beginning at age 50 if the age of the spouse is less than 50
28 years. If a minor unmarried child or children of the
29 commissioner, under age 18, also survive, and the child or
30 children are under the care of the eligible spouse, the
31 annuity shall begin as of the date of death of the
32 commissioner without regard to the spouse's age.
33 The annuity to a spouse shall be 66 2/3% of the amount of
34 retirement annuity earned by the commissioner on the date of
-104- LRB093 05656 EFG 17166 a
1 death, subject to a minimum payment of 10% of salary,
2 provided that if an eligible spouse, regardless of age, has
3 in his or her care at the date of death of the commissioner
4 any unmarried child or children of the commissioner under age
5 18, the minimum annuity shall be 30% of the commissioner's
6 salary, plus 10% of salary on account of each minor child of
7 the commissioner, subject to a combined total payment on
8 account of a spouse and minor children not to exceed 50% of
9 the deceased commissioner's salary. In the event there shall
10 be no spouse of the commissioner surviving, or should a
11 spouse die while eligible minor children still survive the
12 commissioner, each such child shall be entitled to an annuity
13 equal to 20% of salary of the commissioner subject to a
14 combined total payment on account of all such children not to
15 exceed 50% of salary of the commissioner. The salary to be
16 used in the calculation of these benefits shall be the same
17 as that prescribed for determining a retirement annuity as
18 provided in subsection (b) of this Section.
19 Upon the death of a commissioner occurring after
20 termination of a service or while in receipt of a retirement
21 annuity, the combined total payment to a spouse and minor
22 children, or to minor children alone if no eligible spouse
23 survives, shall be limited to 75% of the amount of retirement
24 annuity earned by the commissioner.
25 Adopted children shall have status as natural children of
26 the commissioner only if the proceedings for adoption were
27 commenced at least one year prior to the date of the
28 commissioner's death.
29 Marriage of a child or attainment of age 18, whichever
30 first occurs, shall render the child ineligible for further
31 consideration in the payment of annuity to a spouse or in the
32 increase in the amount thereof. Upon attainment of
33 ineligibility of the youngest minor child of the
34 commissioner, the annuity shall immediately revert to the
-105- LRB093 05656 EFG 17166 a
1 amount payable upon death of a commissioner leaving no minor
2 children surviving. If the spouse is under age 50 at such
3 time, the annuity as revised shall be deferred until such age
4 is attained.
5 (e) Refunds. Refunds of additional optional
6 contributions shall be made on the same basis and under the
7 same conditions as provided under Section 13-601. Interest
8 shall be credited on the same basis and under the same
9 conditions as for other contributions.
10 Optional contributions shall be accounted for in a
11 separate Commission's Optional Contribution Reserve.
12 Optional contributions under this Section shall be included
13 in the amount of employee contributions used to compute the
14 tax levy under Section 13-503.
15 (f) Effective date. The effective date of this plan of
16 optional alternative benefits and contributions shall be the
17 date upon which approval was received from the U.S. Internal
18 Revenue Service. The plan of optional alternative benefits
19 and contributions shall not be available to any former
20 employee receiving an annuity from the Fund on the effective
21 date, unless said former employee re-enters service and
22 renders at least 3 years of additional service after the date
23 of re-entry as a commissioner.
24 (Source: P.A. 90-12, eff. 6-13-97; 91-887, eff. 7-6-00.)
25 (40 ILCS 5/13-402) (from Ch. 108 1/2, par. 13-402)
26 Sec. 13-402. Length of service. For the purpose of
27 computing the length of service for the retirement annuity,
28 surviving spouse's annuity and child's annuity, service of
29 120 days in any one calendar year shall constitute one year
30 of service and service for any fractional part thereof shall
31 constitute an equal fractional part of one year of service
32 unless specifically provided otherwise. For all other
33 purposes under this Article, including but not limited to the
-106- LRB093 05656 EFG 17166 a
1 optional plans of additional benefits and contributions
2 provided under Sections 13-304, 13-304.1, and 13-314 of this
3 Article, 26 pay periods of service during any 12 consecutive
4 months shall constitute a year of service, and service
5 rendered for 50% or more of a single pay period shall
6 constitute service for the full pay period. Service of less
7 than 50% of a single pay period shall not be counted.
8 (Source: P.A. 90-12, eff. 6-13-97.)
9 (40 ILCS 5/13-502) (from Ch. 108 1/2, par. 13-502)
10 Sec. 13-502. Employee contributions; deductions from
11 salary.
12 (a) Retirement annuity and child's annuity. There shall
13 be deducted from each payment of salary an amount equal to
14 7 1/2% of salary as the employee's contribution for the
15 retirement annuity, including annual increases therefore and
16 child's annuity.
17 (b) Surviving spouse's annuity. There shall be deducted
18 from each payment of salary an amount equal to 1 1/2% of
19 salary as the employee's contribution for the surviving
20 spouse's annuity and annual increases therefor.
21 (c) Pickup of employee contributions. The Employer may
22 pick up employee contributions required under subsections (a)
23 and (b) of this Section. If contributions are picked up they
24 shall be treated as Employer contributions in determining tax
25 treatment under the United States Internal Revenue Code, and
26 shall not be included as gross income of the employee until
27 such time as they are distributed. The Employer shall pay
28 these employee contributions from the same source of funds
29 used in paying salary to the employee. The Employer may pick
30 up these contributions by a reduction in the cash salary of
31 the employee or by an offset against a future salary increase
32 or by a combination of a reduction in salary and offset
33 against a future salary increase. If employee contributions
-107- LRB093 05656 EFG 17166 a
1 are picked up they shall be treated for all purposes of this
2 Article 13, including Sections 13-503 and 13-601, in the same
3 manner and to the same extent as employee contributions made
4 prior to the date picked up.
5 (d) Subject to the requirements of federal law, the
6 Employer shall pick up optional contributions that the
7 employee has elected to pay to the Fund under Section
8 13-304.1, and the contributions so picked up shall be treated
9 as employer contributions for the purposes of determining
10 federal tax treatment. The Employer shall pick up the
11 contributions by a reduction in the cash salary of the
12 employee and shall pay the contributions from the same fund
13 that is used to pay earnings to the employee. The Employer
14 shall, however, continue to withhold federal and State income
15 taxes based upon contributions made under Section 13-304.1
16 until the Internal Revenue Service or the federal courts rule
17 that pursuant to Section 414(h) of the U.S. Internal Revenue
18 Code of 1986, as amended, these contributions shall not be
19 included as gross income of the employee until such time as
20 they are distributed or made available.
21 (e) Each employee is deemed to consent and agree to the
22 deductions from compensation provided for in this Article.
23 (f) Subject to the requirements of federal law, the
24 Employer shall pick up contributions that a commissioner has
25 elected to pay to the Fund under Section 13-314, and the
26 contributions so picked up shall be treated as employer
27 contributions for the purposes of determining federal tax
28 treatment. The Employer shall pick up the contributions by a
29 reduction in the cash salary of the commissioner and shall
30 pay the contributions from the same fund as is used to pay
31 earnings to the commissioner. The Employer shall, however,
32 continue to withhold federal and State income taxes based
33 upon contributions made under Section 13-314 until the U.S.
34 Internal Revenue Service or the federal courts rule that
-108- LRB093 05656 EFG 17166 a
1 pursuant to Section 414(h) of the Internal Revenue Code of
2 1986, as amended, these contributions shall not be included
3 as gross income of the employee until such time as they are
4 distributed or made available.
5 (Source: P.A. 92-599, eff. 6-28-02.)
6 (40 ILCS 5/13-601) (from Ch. 108 1/2, par. 13-601)
7 Sec. 13-601. Refunds.
8 (a) Withdrawal from service. Upon withdrawal from
9 service, an employee under age 55 (age 50 if the employee
10 first entered service before June 13, 1997), or an employee
11 age 55 (age 50 if the employee first entered service before
12 June 13, 1997) or over but less than 60 having less than 20
13 years of service, or an employee age 60 or over having less
14 than 5 years of service shall be entitled, upon application,
15 to a refund of total contributions from salary deductions or
16 amounts otherwise paid under this Article by the employee.
17 The refund shall not include interest credited to the
18 contributions. The Board may, in its discretion, withhold
19 payment of a refund for a period not to exceed one year from
20 the date of filing an application for refund.
21 (b) Surviving spouse's annuity contributions. A refund
22 of all amounts deducted from salary or otherwise contributed
23 by an employee for the surviving spouse's annuity shall be
24 paid upon retirement to any employee who on the date of
25 retirement is either not married or is married but whose
26 spouse is not eligible for a surviving spouse's annuity paid
27 wholly or in part under this Article. The refund shall
28 include interest on each contribution at the rate of 3% per
29 annum compounded annually from the date of the contribution
30 to the date of the refund.
31 (c) When paid to children, estate or beneficiary.
32 Whenever the total accumulations, to the account of an
33 employee from employee contributions, including interest,
-109- LRB093 05656 EFG 17166 a
1 have not been paid to the employee and surviving spouse as a
2 retirement or spouse's annuity before the death of the
3 survivor of the employee and spouse, a refund shall be paid
4 as follows: an amount equal to the excess of such amounts
5 over the amounts paid on such annuities without interest on
6 either such amount, shall be paid to the children of the
7 employee, in equal parts to each, unless the employee has
8 directed in writing, signed by him before an officer
9 authorized to administer oaths, and filed with the Board
10 before the employee's death, that any such amount shall be
11 refunded and paid to any one or more of such children; and if
12 there are not children, such other beneficiary or
13 beneficiaries as might be designated by the employee. If
14 there are no such children or designation of beneficiary, the
15 refund shall be paid to the personal representative of the
16 employee's estate.
17 If a personal representative of the estate has not been
18 appointed within 90 days from the date on which a refund
19 became payable, the refund may be applied, in the discretion
20 of the Board, toward the payment of the employee's or the
21 surviving spouse's burial expenses. Any remaining balance
22 shall be paid to the heirs of the employee according to the
23 law of descent and distribution of the State of Illinois.
24 If a reversionary annuity becomes payable under Section
25 13-303, the refund provided in this section shall not be paid
26 until the death of the reversionary annuitant and the refund
27 otherwise payable under this section shall be then further
28 reduced by the amount of the reversionary annuity paid.
29 (d) In lieu of annuity. Notwithstanding the provisions
30 set forth in subsection (a) of this section, whenever an
31 employee's or surviving spouse's annuity will be less than
32 $200 per month, the employee or surviving spouse, as the case
33 may be, may elect to receive a refund of accumulated employee
34 contributions; provided, however, that if the election is
-110- LRB093 05656 EFG 17166 a
1 made by a surviving spouse the refund shall be reduced by any
2 amounts theretofore paid to the employee in the form of an
3 annuity.
4 (e) Forfeiture of rights. An employee or surviving
5 spouse who receives a refund forfeits the right to receive an
6 annuity or any other benefit payable under this Article
7 except that if the refund is to a surviving spouse, any child
8 or children of the employee shall not be deprived of the
9 right to receive a child's annuity as provided in Section
10 13-308 of this Article, and the payment of a child's annuity
11 shall not reduce the amount refundable to the surviving
12 spouse.
13 (Source: P.A. 87-794; 87-1265.)
14 (40 ILCS 5/13-603) (from Ch. 108 1/2, par. 13-603)
15 Sec. 13-603. Restoration of rights. If an employee who
16 has received a refund subsequently re-enters the service and
17 renders one year of contributing service from the date of
18 such re-entry, the employee shall be entitled to have
19 restored all accumulation and service credits previously
20 forfeited by making a repayment of the refund, including
21 interest from the date of the refund to the date of repayment
22 at a rate equal to the higher of 8% per annum or the
23 actuarial investment return assumption used in the Fund's
24 most recent Annual Actuarial Statement. Repayment may be
25 made either directly to the Fund or in a manner similar to
26 that provided for the contributions required under Section
27 13-502. The service credits represented thereby, or any
28 part thereof, shall not become effective unless the full
29 amount due has been paid by the employee, including interest.
30 The repayment must be made in full no later than 90 days
31 following the date of the employee's final withdrawal from
32 service. If the employee fails to make a full repayment, any
33 partial amounts paid by the employee shall be refunded
-111- LRB093 05656 EFG 17166 a
1 without interest if the employee dies in service or
2 withdraws.
3 (Source: P.A. 91-887, eff. 7-6-00.)
4 (40 ILCS 5/14-104) (from Ch. 108 1/2, par. 14-104)
5 Sec. 14-104. Service for which contributions permitted.
6 Contributions provided for in this Section shall cover the
7 period of service granted. Except as otherwise provided in
8 this Section, the contributions shall be based upon the
9 employee's compensation and contribution rate in effect on
10 the date he last became a member of the System; provided that
11 for all employment prior to January 1, 1969 the contribution
12 rate shall be that in effect for a noncovered employee on the
13 date he last became a member of the System. Except as
14 otherwise provided in this Section, contributions permitted
15 under this Section shall include regular interest from the
16 date an employee last became a member of the System to the
17 date of payment.
18 These contributions must be paid in full before
19 retirement either in a lump sum or in installment payments in
20 accordance with such rules as may be adopted by the board.
21 (a) Any member may make contributions as required in
22 this Section for any period of service, subsequent to the
23 date of establishment, but prior to the date of membership.
24 (b) Any employee who had been previously excluded from
25 membership because of age at entry and subsequently became
26 eligible may elect to make contributions as required in this
27 Section for the period of service during which he was
28 ineligible.
29 (c) An employee of the Department of Insurance who,
30 after January 1, 1944 but prior to becoming eligible for
31 membership, received salary from funds of insurance companies
32 in the process of rehabilitation, liquidation, conservation
33 or dissolution, may elect to make contributions as required
-112- LRB093 05656 EFG 17166 a
1 in this Section for such service.
2 (d) Any employee who rendered service in a State office
3 to which he was elected, or rendered service in the elective
4 office of Clerk of the Appellate Court prior to the date he
5 became a member, may make contributions for such service as
6 required in this Section. Any member who served by
7 appointment of the Governor under the Civil Administrative
8 Code of Illinois and did not participate in this System may
9 make contributions as required in this Section for such
10 service.
11 (e) Any person employed by the United States government
12 or any instrumentality or agency thereof from January 1, 1942
13 through November 15, 1946 as the result of a transfer from
14 State service by executive order of the President of the
15 United States shall be entitled to prior service credit
16 covering the period from January 1, 1942 through December 31,
17 1943 as provided for in this Article and to membership
18 service credit for the period from January 1, 1944 through
19 November 15, 1946 by making the contributions required in
20 this Section. A person so employed on January 1, 1944 but
21 whose employment began after January 1, 1942 may qualify for
22 prior service and membership service credit under the same
23 conditions.
24 (f) An employee of the Department of Labor of the State
25 of Illinois who performed services for and under the
26 supervision of that Department prior to January 1, 1944 but
27 who was compensated for those services directly by federal
28 funds and not by a warrant of the Auditor of Public Accounts
29 paid by the State Treasurer may establish credit for such
30 employment by making the contributions required in this
31 Section. An employee of the Department of Agriculture of the
32 State of Illinois, who performed services for and under the
33 supervision of that Department prior to June 1, 1963, but was
34 compensated for those services directly by federal funds and
-113- LRB093 05656 EFG 17166 a
1 not paid by a warrant of the Auditor of Public Accounts paid
2 by the State Treasurer, and who did not contribute to any
3 other public employee retirement system for such service, may
4 establish credit for such employment by making the
5 contributions required in this Section.
6 (g) Any employee who executed a waiver of membership
7 within 60 days prior to January 1, 1944 may, at any time
8 while in the service of a department, file with the board a
9 rescission of such waiver. Upon making the contributions
10 required by this Section, the member shall be granted the
11 creditable service that would have been received if the
12 waiver had not been executed.
13 (h) Until May 1, 1990, an employee who was employed on a
14 full-time basis by a regional planning commission for at
15 least 5 continuous years may establish creditable service for
16 such employment by making the contributions required under
17 this Section, provided that any credits earned by the
18 employee in the commission's retirement plan have been
19 terminated.
20 (i) Any person who rendered full time contractual
21 services to the General Assembly as a member of a legislative
22 staff may establish service credit for up to 8 years of such
23 services by making the contributions required under this
24 Section, provided that application therefor is made not later
25 than July 1, 1991.
26 (j) By paying the contributions otherwise required under
27 this Section, plus an amount determined by the Board to be
28 equal to the employer's normal cost of the benefit plus
29 interest, but with all of the interest calculated from the
30 date the employee last became a member of the System or
31 November 19, 1991, whichever is later, to the date of
32 payment, an employee may establish service credit for a
33 period of up to 2 years spent in active military service for
34 which he does not qualify for credit under Section 14-105,
-114- LRB093 05656 EFG 17166 a
1 provided that (1) he was not dishonorably discharged from
2 such military service, and (2) the amount of service credit
3 established by a member under this subsection (j), when added
4 to the amount of military service credit granted to the
5 member under subsection (b) of Section 14-105, shall not
6 exceed 5 years. The change in the manner of calculating
7 interest under this subsection (j) made by this amendatory
8 Act of the 92nd General Assembly applies to credit purchased
9 by an employee on or after its effective date and does not
10 entitle any person to a refund of contributions or interest
11 already paid.
12 (k) An employee who was employed on a full-time basis by
13 the Illinois State's Attorneys Association Statewide
14 Appellate Assistance Service LEAA-ILEC grant project prior to
15 the time that project became the State's Attorneys Appellate
16 Service Commission, now the Office of the State's Attorneys
17 Appellate Prosecutor, an agency of State government, may
18 establish creditable service for not more than 60 months
19 service for such employment by making contributions required
20 under this Section.
21 (l) By paying the contributions otherwise required under
22 this Section, plus an amount determined by the Board to be
23 equal to the employer's normal cost of the benefit plus
24 interest, a member may establish service credit for periods
25 of up to 2 yearsless than one year spent on authorized leave
26 of absence from service, provided that (1) the period of
27 leave began on or after January 1, 1982 and (2) any credit
28 established by the member for the period of leave in any
29 other public employee retirement system has been terminated.
30 A member may establish service credit under this subsection
31 for more than one period of authorized leave, and in that
32 case the total period of service credit established by the
33 member under this subsection may exceed 2 yearsone year. In
34 determining the contributions required for establishing
-115- LRB093 05656 EFG 17166 a
1 service credit under this subsection, the interest shall be
2 calculated from the beginning of the leave of absence to the
3 date of payment.
4 (m) Any person who rendered contractual services to a
5 member of the General Assembly as a worker in the member's
6 district office may establish creditable service for up to 3
7 years of those contractual services by making the
8 contributions required under this Section. The System shall
9 determine a full-time salary equivalent for the purpose of
10 calculating the required contribution. To establish credit
11 under this subsection, the applicant must apply to the System
12 by March 1, 1998.
13 (n) Any person who rendered contractual services to a
14 member of the General Assembly as a worker providing
15 constituent services to persons in the member's district may
16 establish creditable service for up to 8 years of those
17 contractual services by making the contributions required
18 under this Section. The System shall determine a full-time
19 salary equivalent for the purpose of calculating the required
20 contribution. To establish credit under this subsection, the
21 applicant must apply to the System by March 1, 1998.
22 (o) A member who participated in the Illinois
23 Legislative Staff Internship Program may establish creditable
24 service for up to one year of that participation by making
25 the contribution required under this Section. The System
26 shall determine a full-time salary equivalent for the purpose
27 of calculating the required contribution. Credit may not be
28 established under this subsection for any period for which
29 service credit is established under any other provision of
30 this Code.
31 (p) By paying the contributions required under this
32 Section, plus an amount determined by the Board to be equal
33 to the employer's normal cost of the benefit plus interest,
34 an employee who was laid off but returned to State employment
-116- LRB093 05656 EFG 17166 a
1 under circumstances in which the employee is considered to
2 have been in continuous service for purposes of determining
3 seniority may establish creditable service for the period of
4 the layoff, provided that (1) the applicant does not receive
5 credit for that period under any other provision of this
6 Code, (2) at the time of the layoff, the applicant had
7 attained certified status under the rules of the Department
8 of Central Management Services, and (3) the total amount of
9 creditable service established by the applicant under this
10 subsection does not exceed 2 years. For service established
11 under this subsection, the required employee contribution
12 shall be based on the rate of compensation earned by the
13 employee on the date of returning to employment after the
14 layoff and the contribution rate then in effect, and the
15 required interest shall be calculated from the date of
16 returning to employment after the layoff to the date of
17 payment.
18 (Source: P.A. 92-54, eff. 7-12-01.)
19 (40 ILCS 5/15-159) (from Ch. 108 1/2, par. 15-159)
20 Sec. 15-159. Board created.
21 (a) A board of trustees constituted as provided in this
22 Section shall administer this System. The board shall be
23 known as the Board of Trustees of the State Universities
24 Retirement System.
25 (b) Until July 1, 1995, the Board of Trustees shall be
26 constituted as follows:
27 Two trustees shall be members of the Board of Trustees of
28 the University of Illinois, one shall be a member of the
29 Board of Trustees of Southern Illinois University, one shall
30 be a member of the Board of Trustees of Chicago State
31 University, one shall be a member of the Board of Trustees of
32 Eastern Illinois University, one shall be a member of the
33 Board of Trustees of Governors State University, one shall be
-117- LRB093 05656 EFG 17166 a
1 a member of the Board of Trustees of Illinois State
2 University, one shall be a member of the Board of Trustees of
3 Northeastern Illinois University, one shall be a member of
4 the Board of Trustees of Northern Illinois University, one
5 shall be a member of the Board of Trustees of Western
6 Illinois University, and one shall be a member of the
7 Illinois Community College Board, selected in each case by
8 their respective boards, and 2 shall be participants of the
9 system appointed by the Governor for a 6 year term with the
10 first appointment made pursuant to this amendatory Act of
11 1984 to be effective September 1, 1985, and one shall be a
12 participant appointed by the Illinois Community College Board
13 for a 6 year term, and one shall be a participant appointed
14 by the Board of Trustees of the University of Illinois for a
15 6 year term, and one shall be a participant or annuitant of
16 the system who is a senior citizen age 60 or older appointed
17 by the Governor for a 6 year term with the first appointment
18 to be effective September 1, 1985.
19 The terms of all trustees holding office under this
20 subsection (b) on June 30, 1995 shall terminate at the end of
21 that day or as otherwise required by law and the Board shall
22 thereafter be constituted as otherwise provided in this
23 Sectionsubsection (c).
24 (c) Beginning July 1, 1995, the Board of Trustees shall
25 be constituted as follows:
26 The Board shall consist of 9 trustees appointed by the
27 Governor. Two of the trustees, designated at the time of
28 appointment, shall be participants of the System. Two of the
29 trustees, designated at the time of appointment, shall be
30 annuitants of the System who are receiving retirement
31 annuities under this Article. The 5 remaining trustees may,
32 but need not, be participants or annuitants of the System.
33 The term of office of trustees appointed under this
34 subsection (c) shall be 6 years, beginning on July 1.
-118- LRB093 05656 EFG 17166 a
1 However, of the initial trustees appointed under this
2 subsection (c), 3 shall be appointed for terms of 2 years, 3
3 shall be appointed for terms of 4 years, and 3 shall be
4 appointed for terms of 6 years, to be designated by the
5 Governor at the time of appointment.
6 A vacancy in a trustee position created under this
7 subsection (c)on the board of trustees caused by
8 resignation, death, expiration of term of office, or other
9 reason shall be filled by a qualified person appointed by the
10 Governor for the remainder of the unexpired term.
11 Trustees in a trustee position created under this
12 subsection (c)(other than the trustees incumbent on June 30,
13 1995) shall continue in office until their respective
14 successors are appointed and have qualified, except that a
15 trustee appointed to one of the participant positions shall
16 be disqualified immediately upon the termination of his or
17 her status as a participant and a trustee appointed to one of
18 the annuitant positions shall be disqualified immediately
19 upon the termination of his or her status as an annuitant
20 receiving a retirement annuity.
21 (c-1) Beginning July 1, 2004, the Board of Trustees
22 shall consist of the 9 trustees appointed under subsection
23 (c) plus 4 elected trustees who shall be elected as provided
24 in this subsection (c-1) and Section 15-159.1.
25 One of the elected trustees shall be a participant of the
26 System nominated and elected by the participants of the
27 System who are employees of the University of Illinois.
28 One of the elected trustees shall be a participant of the
29 System nominated and elected by the participants of the
30 System who are employees of Northern Illinois University,
31 Illinois State University, or Southern Illinois University.
32 One of the elected trustees shall be a participant of the
33 System nominated and elected by the participants of the
34 System who are employees of Chicago State University, Eastern
-119- LRB093 05656 EFG 17166 a
1 Illinois University, Governors State University, Northeastern
2 Illinois University, or Western Illinois University.
3 One of the elected trustees shall be a participant of the
4 System nominated and elected by the participants of the
5 System who are employees of Illinois community colleges.
6 The term of office of trustees elected under this
7 subsection (c-1) shall be 6 years, beginning on July 1,
8 except that the initial trustees elected under this
9 subsection (c-1) shall serve for terms of 3, 4, 5, and 6
10 years, to be determined by lot at the first meeting of the
11 Board following their election.
12 Candidates for election shall be nominated by petition
13 containing the signatures and addresses of at least 100
14 participants from the applicable constituency. Petitions
15 shall be filed with the Secretary of the Board during the
16 month of January before the election. The Secretary shall
17 determine the validity of petitions of candidates by February
18 15 before the election and shall notify the candidates as to
19 whether or not their petitions have met the requirements.
20 If no more than one candidate files a valid petition for
21 election to a position, that candidate shall be declared
22 elected. If there is more than one nominee for a position,
23 then the Board shall conduct by mail a secret ballot election
24 among those persons eligible to vote for that position, in
25 accordance with Section 15-159.1 and such rules and
26 procedures as it may adopt.
27 If a vacancy occurs among the elected members of the
28 Board, the remaining elected members of the Board shall meet
29 for the purpose of filling the vacant position by appointing
30 a person who is eligible for nomination and election to the
31 position to serve for the remainder of the term. The meeting
32 shall be held as soon as practicable after the position
33 becomes vacant. Appointment of a person to fill a vacancy in
34 an elected trustee position requires a majority vote of the
-120- LRB093 05656 EFG 17166 a
1 elected members present at the meeting.
2 An elected trustee shall continue in office until his or
3 her successor is elected (or, in the case of a vacancy
4 occurring during a term, appointed) and has qualified, except
5 that an elected trustee shall be disqualified upon the
6 termination of his or her status as a participant.
7 (d) Each trustee must take an oath of office before a
8 notary public of this State and shall qualify as a trustee
9 upon the presentation to the the Board of a certified copy of
10 the oath. The oath must state that the person will
11 diligently and honestly administer the affairs of the
12 retirement system, and will not knowingly violate or wilfully
13 permit to be violated any provisions of this Article.
14 Each trustee shall serve without compensation but shall
15 be reimbursed for expenses necessarily incurred in attending
16 board meetings and carrying out his or her duties as a
17 trustee or officer of the System.
18 (e) This amendatory Act of 1995 (Public Act 89-196) is
19 intended to supersede the changes made to this Section by
20 Public Act 89-4.
21 (Source: P.A. 89-4, eff. 1-1-96; 89-196, eff. 7-21-95.)
22 (40 ILCS 5/15-159.1 new)
23 Sec. 15-159.1. Election of trustees.
24 (a) Election of trustees shall be by mail ballot. By no
25 later than April 1 of the year of the election, the board
26 shall prepare and send ballots and ballot envelopes to the
27 persons eligible to vote as of February 1 of the year of the
28 election. The ballots shall contain the names of all
29 candidates of the constituency for which the person is
30 eligible to vote, in alphabetical order. The ballot envelope
31 shall have on the outside a form of certificate stating that
32 the person voting the ballot is a member of the specified
33 constituency and is entitled to vote.
-121- LRB093 05656 EFG 17166 a
1 (b) Persons wishing to vote shall vote the ballot and
2 place it in the ballot envelope, seal the envelope, execute
3 the certificate on the envelope, and return the ballot to the
4 System.
5 (c) The final date for ballot return shall be May 1, or
6 if that date falls on a Saturday, Sunday, or State holiday,
7 then the next business day. Ballots received on or before
8 that date, in a ballot envelope with a properly executed
9 certificate and properly voted, shall be valid ballots.
10 (d) The board shall set a day for counting ballots,
11 shall name judges and clerks of election to conduct the count
12 of ballots, and shall make any rules that may be necessary
13 for the conduct of the count.
14 (e) Candidates for the office of trustee, and employee
15 and labor organizations, shall have access, at their own
16 expense, to the System's participant mailing lists for
17 election purposes.
18 (40 ILCS 5/16-128) (from Ch. 108 1/2, par. 16-128)
19 Sec. 16-128. Creditable service - required
20 contributions.
21 (a) In order to receive the creditable service specified
22 under subsection (b) of Section 16-127, a member is required
23 to make the following contributions: (i) an amount equal to
24 the contributions which would have been required had such
25 service been rendered as a member under this System; (ii) for
26 military service not immediately following employment and for
27 service established under subdivision (b)(10) of Section
28 16-127, an amount determined by the Board to be equal to the
29 employer's normal cost of the benefits accrued for such
30 service; and (iii) interest from the date the contributions
31 would have been due (or, in the case of a person establishing
32 credit for military service under subdivision (b)(3) of
33 Section 16-127, from the date the employee last became a
-122- LRB093 05656 EFG 17166 a
1 member of the System or November 19, 1991, whicheverthe date
2 of first membership in the System, if that date is later) to
3 the date of payment, at the following rate of interest,
4 compounded annually: for periods prior to July 1, 1965,
5 regular interest; from July 1, 1965 to June 30, 1977, 4% per
6 year; on and after July 1, 1977, regular interest.
7 The change in the manner of calculating interest for
8 certain military service credit made by this amendatory Act
9 of the 93rd General Assembly applies to credit purchased by a
10 teacher on or after its effective date and does not entitle
11 any person to a refund of contributions or interest already
12 paid.
13 (b) In order to receive creditable service under
14 paragraph (2) of subsection (b) of Section 16-127 for those
15 who were not members on June 30, 1963, the minimum required
16 contribution shall be $420 per year of service together with
17 interest at 4% per year compounded annually from July 1,
18 preceding the date of membership until June 30, 1977 and at
19 regular interest compounded annually thereafter to the date
20 of payment.
21 (c) In determining the contribution required in order to
22 receive creditable service under paragraph (3) of subsection
23 (b) of Section 16-127, the salary rate for the remainder of
24 the school term in which a member enters military service
25 shall be assumed to be equal to the member's salary rate at
26 the time of entering military service. However, for military
27 service not immediately following employment, the salary rate
28 on the last date as a participating teacher prior to such
29 military service, or on the first date as a participating
30 teacher after such military service, whichever is greater,
31 shall be assumed to be equal to the member's salary rate at
32 the time of entering military service. For each school term
33 thereafter, the member's salary rate shall be assumed to be
34 5% higher than the salary rate in the previous school term.
-123- LRB093 05656 EFG 17166 a
1 (d) In determining the contribution required in order to
2 receive creditable service under paragraph (5) of subsection
3 (b) of Section 16-127, a member's salary rate during the
4 period for which credit is being established shall be assumed
5 to be equal to the member's last salary rate immediately
6 preceding that period.
7 (d-5) For each year of service credit to be established
8 under subsection (b-1) of Section 16-127, a member is
9 required to contribute to the System (i) 16.5% of the annual
10 salary rate during the first year of full-time employment as
11 a teacher under this Article following the private school
12 service, plus (ii) interest thereon from the date of first
13 full-time employment as a teacher under this Article
14 following the private school service to the date of payment,
15 compounded annually, at the rate of 8.5% per year for periods
16 before the effective date of this amendatory Act of the 92nd
17 General Assembly, and for subsequent periods at a rate equal
18 to the System's actuarially assumed rate of return on
19 investments.
20 (e) The contributions required under this Section may be
21 made from the date the statement for such creditable service
22 is issued until retirement date. All such required
23 contributions must be made before any retirement annuity is
24 granted.
25 (Source: P.A. 92-867, eff. 1-3-03.)
26 Section 90. The State Mandates Act is amended by adding
27 Section 8.27 as follows:
28 (30 ILCS 805/8.27 new)
29 Sec. 8.27. Exempt mandate. Notwithstanding Sections 6
30 and 8 of this Act, no reimbursement by the State is required
31 for the implementation of any mandate created by this
32 amendatory Act of the 93rd General Assembly.
-124- LRB093 05656 EFG 17166 a
1 Section 99. Effective date. This Act takes effect upon
2 becoming law.".
This site is maintained for the Illinois General Assembly
by the Legislative Information System, 705 Stratton Building, Springfield, Illinois 62706
Contact ILGA Webmaster
Translate
