Full Text of HB2993 98th General Assembly
HB2993enr 98TH GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning public employee benefits.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Pension Code is amended by changing | 5 | | Sections 1-160, 15-102, 15-111, 15-112, 15-113.6, 15-134, | 6 | | 15-135, 15-136, 15-136.3, 15-139, 15-145, 15-146, 15-146.1, | 7 | | 15-155, 15-157, 15-158.2, 15-159, 15-162, 15-165, 15-168, | 8 | | 15-169, 15-171, 15-172, 15-177, and 16-152 and by adding | 9 | | Sections 15-108.1, 15-108.2, 15-139.1, 15-145.1, and 16-106.6 | 10 | | as follows: | 11 | | (40 ILCS 5/1-160) | 12 | | Sec. 1-160. Provisions applicable to new hires. | 13 | | (a) The provisions of this Section apply to a person who, | 14 | | on or after January 1, 2011, first becomes a member or a | 15 | | participant under any reciprocal retirement system or pension | 16 | | fund established under this Code, other than a retirement | 17 | | system or pension fund established under Article 2, 3, 4, 5, 6, | 18 | | 15 or 18 of this Code, notwithstanding any other provision of | 19 | | this Code to the contrary, but do not apply to any self-managed | 20 | | plan established under this Code, to any person with respect to | 21 | | service as a sheriff's law enforcement employee under Article | 22 | | 7, or to any participant of the retirement plan established | 23 | | under Section 22-101. |
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| 1 | | (b) "Final average salary" means the average monthly (or | 2 | | annual) salary obtained by dividing the total salary or | 3 | | earnings calculated under the Article applicable to the member | 4 | | or participant during the 96 consecutive months (or 8 | 5 | | consecutive years) of service within the last 120 months (or 10 | 6 | | years) of service in which the total salary or earnings | 7 | | calculated under the applicable Article was the highest by the | 8 | | number of months (or years) of service in that period. For the | 9 | | purposes of a person who first becomes a member or participant | 10 | | of any retirement system or pension fund to which this Section | 11 | | applies on or after January 1, 2011, in this Code, "final | 12 | | average salary" shall be substituted for the following: | 13 | | (1) In Article Articles 7 (except for service as | 14 | | sheriff's law enforcement employees) and 15 , "final rate of | 15 | | earnings". | 16 | | (2) In Articles 8, 9, 10, 11, and 12, "highest average | 17 | | annual salary for any 4 consecutive years within the last | 18 | | 10 years of service immediately preceding the date of | 19 | | withdrawal". | 20 | | (3) In Article 13, "average final salary". | 21 | | (4) In Article 14, "final average compensation". | 22 | | (5) In Article 17, "average salary". | 23 | | (6) In Section 22-207, "wages or salary received by him | 24 | | at the date of retirement or discharge". | 25 | | (b-5) Beginning on January 1, 2011, for all purposes under | 26 | | this Code (including without limitation the calculation of |
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| 1 | | benefits and employee contributions), the annual earnings, | 2 | | salary, or wages (based on the plan year) of a member or | 3 | | participant to whom this Section applies shall not exceed | 4 | | $106,800; however, that amount shall annually thereafter be | 5 | | increased by the lesser of (i) 3% of that amount, including all | 6 | | previous adjustments, or (ii) one-half the annual unadjusted | 7 | | percentage increase (but not less than zero) in the consumer | 8 | | price index-u
for the 12 months ending with the September | 9 | | preceding each November 1, including all previous adjustments. | 10 | | For the purposes of this Section, "consumer price index-u" | 11 | | means
the index published by the Bureau of Labor Statistics of | 12 | | the United States
Department of Labor that measures the average | 13 | | change in prices of goods and
services purchased by all urban | 14 | | consumers, United States city average, all
items, 1982-84 = | 15 | | 100. The new amount resulting from each annual adjustment
shall | 16 | | be determined by the Public Pension Division of the Department | 17 | | of Insurance and made available to the boards of the retirement | 18 | | systems and pension funds by November 1 of each year. | 19 | | (c) A member or participant is entitled to a retirement
| 20 | | annuity upon written application if he or she has attained age | 21 | | 67 and has at least 10 years of service credit and is otherwise | 22 | | eligible under the requirements of the applicable Article. | 23 | | A member or participant who has attained age 62 and has at | 24 | | least 10 years of service credit and is otherwise eligible | 25 | | under the requirements of the applicable Article may elect to | 26 | | receive the lower retirement annuity provided
in subsection (d) |
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| 1 | | of this Section. | 2 | | (d) The retirement annuity of a member or participant who | 3 | | is retiring after attaining age 62 with at least 10 years of | 4 | | service credit shall be reduced by one-half
of 1% for each full | 5 | | month that the member's age is under age 67. | 6 | | (e) Any retirement annuity or supplemental annuity shall be | 7 | | subject to annual increases on the January 1 occurring either | 8 | | on or after the attainment of age 67 or the first anniversary | 9 | | of the annuity start date, whichever is later. Each annual | 10 | | increase shall be calculated at 3% or one-half the annual | 11 | | unadjusted percentage increase (but not less than zero) in the | 12 | | consumer price index-u for the 12 months ending with the | 13 | | September preceding each November 1, whichever is less, of the | 14 | | originally granted retirement annuity. If the annual | 15 | | unadjusted percentage change in the consumer price index-u for | 16 | | the 12 months ending with the September preceding each November | 17 | | 1 is zero or there is a decrease, then the annuity shall not be | 18 | | increased. | 19 | | (f) The initial survivor's or widow's annuity of an | 20 | | otherwise eligible survivor or widow of a retired member or | 21 | | participant who first became a member or participant on or | 22 | | after January 1, 2011 shall be in the amount of 66 2/3% of the | 23 | | retired member's or participant's retirement annuity at the | 24 | | date of death. In the case of the death of a member or | 25 | | participant who has not retired and who first became a member | 26 | | or participant on or after January 1, 2011, eligibility for a |
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| 1 | | survivor's or widow's annuity shall be determined by the | 2 | | applicable Article of this Code. The initial benefit shall be | 3 | | 66 2/3% of the earned annuity without a reduction due to age. A | 4 | | child's annuity of an otherwise eligible child shall be in the | 5 | | amount prescribed under each Article if applicable. Any | 6 | | survivor's or widow's annuity shall be increased (1) on each | 7 | | January 1 occurring on or after the commencement of the annuity | 8 | | if
the deceased member died while receiving a retirement | 9 | | annuity or (2) in
other cases, on each January 1 occurring | 10 | | after the first anniversary
of the commencement of the annuity. | 11 | | Each annual increase shall be calculated at 3% or one-half the | 12 | | annual unadjusted percentage increase (but not less than zero) | 13 | | in the consumer price index-u for the 12 months ending with the | 14 | | September preceding each November 1, whichever is less, of the | 15 | | originally granted survivor's annuity. If the annual | 16 | | unadjusted percentage change in the consumer price index-u for | 17 | | the 12 months ending with the September preceding each November | 18 | | 1 is zero or there is a decrease, then the annuity shall not be | 19 | | increased. | 20 | | (g) The benefits in Section 14-110 apply only if the person | 21 | | is a State policeman, a fire fighter in the fire protection | 22 | | service of a department, or a security employee of the | 23 | | Department of Corrections or the Department of Juvenile | 24 | | Justice, as those terms are defined in subsection (b) of | 25 | | Section 14-110. A person who meets the requirements of this | 26 | | Section is entitled to an annuity calculated under the |
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| 1 | | provisions of Section 14-110, in lieu of the regular or minimum | 2 | | retirement annuity, only if the person has withdrawn from | 3 | | service with not less than 20
years of eligible creditable | 4 | | service and has attained age 60, regardless of whether
the | 5 | | attainment of age 60 occurs while the person is
still in | 6 | | service. | 7 | | (h) If a person who first becomes a member or a participant | 8 | | of a retirement system or pension fund subject to this Section | 9 | | on or after January 1, 2011 is receiving a retirement annuity | 10 | | or retirement pension under that system or fund and becomes a | 11 | | member or participant under any other system or fund created by | 12 | | this Code and is employed on a full-time basis, except for | 13 | | those members or participants exempted from the provisions of | 14 | | this Section under subsection (a) of this Section, then the | 15 | | person's retirement annuity or retirement pension under that | 16 | | system or fund shall be suspended during that employment. Upon | 17 | | termination of that employment, the person's retirement | 18 | | annuity or retirement pension payments shall resume and be | 19 | | recalculated if recalculation is provided for under the | 20 | | applicable Article of this Code. | 21 | | If a person who first becomes a member of a retirement | 22 | | system or pension fund subject to this Section on or after | 23 | | January 1, 2012 and is receiving a retirement annuity or | 24 | | retirement pension under that system or fund and accepts on a | 25 | | contractual basis a position to provide services to a | 26 | | governmental entity from which he or she has retired, then that |
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| 1 | | person's annuity or retirement pension earned as an active | 2 | | employee of the employer shall be suspended during that | 3 | | contractual service. A person receiving an annuity or | 4 | | retirement pension under this Code shall notify the pension | 5 | | fund or retirement system from which he or she is receiving an | 6 | | annuity or retirement pension, as well as his or her | 7 | | contractual employer, of his or her retirement status before | 8 | | accepting contractual employment. A person who fails to submit | 9 | | such notification shall be guilty of a Class A misdemeanor and | 10 | | required to pay a fine of $1,000. Upon termination of that | 11 | | contractual employment, the person's retirement annuity or | 12 | | retirement pension payments shall resume and, if appropriate, | 13 | | be recalculated under the applicable provisions of this Code. | 14 | | (i) (Blank). Notwithstanding any other provision of this | 15 | | Section, a person who first becomes a participant of the | 16 | | retirement system established under Article 15 on or after | 17 | | January 1, 2011 shall have the option to enroll in the | 18 | | self-managed plan created under Section 15-158.2 of this Code. | 19 | | (j) In the case of a conflict between the provisions of | 20 | | this Section and any other provision of this Code, the | 21 | | provisions of this Section shall control.
| 22 | | (Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11; | 23 | | 97-609, eff. 1-1-12.)
| 24 | | (40 ILCS 5/15-102) (from Ch. 108 1/2, par. 15-102)
| 25 | | Sec. 15-102. Terms defined. The terms used in this Article |
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| 1 | | shall have the
meanings ascribed to them in Sections 15-103 | 2 | | through 15-198 15-132.1 ,
except when the context otherwise | 3 | | requires.
| 4 | | (Source: P.A. 91-357, eff. 7-29-99.)
| 5 | | (40 ILCS 5/15-108.1 new) | 6 | | Sec. 15-108.1. Tier 1 member. "Tier 1 member": A | 7 | | participant or an annuitant of a retirement annuity under this | 8 | | Article, other than a participant in the self-managed plan | 9 | | under Section 15-158.2, who first became a participant or | 10 | | member before January 1, 2011 under any reciprocal retirement | 11 | | system or pension fund established under this Code, other than | 12 | | a retirement system or pension fund established under Articles | 13 | | 2, 3, 4, 5, 6, or 18 of this Code. "Tier 1 member" includes a | 14 | | person who first became a participant under this System before | 15 | | January 1, 2011 and who accepts a refund and is subsequently | 16 | | reemployed by an employer on or after January 1, 2011. | 17 | | (40 ILCS 5/15-108.2 new) | 18 | | Sec. 15-108.2. Tier 2 member. "Tier 2 member": A | 19 | | participant under this Article, other than a participant in the | 20 | | self-managed plan under Section 15-158.2, who on or after | 21 | | January 1, 2011, first becomes a participant or member under | 22 | | any reciprocal retirement system or pension fund established | 23 | | under this Code.
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| 1 | | (40 ILCS 5/15-111) (from Ch. 108 1/2, par. 15-111)
| 2 | | Sec. 15-111. Earnings.
| 3 | | (a) "Earnings": An amount paid for personal services equal | 4 | | to the sum of
the basic compensation plus extra compensation | 5 | | for summer teaching,
overtime or other extra service. For | 6 | | periods for which an employee receives
service credit under | 7 | | subsection (c) of Section 15-113.1 or Section 15-113.2,
| 8 | | earnings are equal to the basic compensation on which | 9 | | contributions are
paid by the employee during such periods. | 10 | | Compensation for employment which is
irregular, intermittent | 11 | | and temporary shall not be considered earnings, unless
the | 12 | | participant is also receiving earnings from the employer as an | 13 | | employee
under Section 15-107.
| 14 | | With respect to transition pay paid by the University of | 15 | | Illinois to a
person who was a participating employee employed | 16 | | in the fire department of
the University of Illinois's | 17 | | Champaign-Urbana campus immediately prior to
the elimination | 18 | | of that fire department:
| 19 | | (1) "Earnings" includes transition pay paid to the | 20 | | employee on or after
the effective date of this amendatory | 21 | | Act of the 91st General Assembly.
| 22 | | (2) "Earnings" includes transition pay paid to the | 23 | | employee before the
effective date of this amendatory Act | 24 | | of the 91st General Assembly only if (i)
employee | 25 | | contributions under Section 15-157 have been withheld from | 26 | | that
transition pay or (ii) the employee pays to the System |
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| 1 | | before January 1, 2001
an amount representing employee | 2 | | contributions under Section 15-157 on that
transition pay. | 3 | | Employee contributions under item (ii) may be paid in a | 4 | | lump
sum, by withholding from additional transition pay | 5 | | accruing before January 1,
2001, or in any other manner | 6 | | approved by the System. Upon payment of the
employee | 7 | | contributions on transition pay, the corresponding | 8 | | employer
contributions become an obligation of the State.
| 9 | | (b) For a Tier 2 member, the annual earnings shall not | 10 | | exceed $106,800; however, that amount shall annually | 11 | | thereafter be increased by the lesser of (i) 3% of that amount, | 12 | | including all previous adjustments, or (ii) one half the annual | 13 | | unadjusted percentage increase (but not less than zero) in the | 14 | | consumer price index-u for the 12 months ending with the | 15 | | September preceding each November 1, including all previous | 16 | | adjustments. | 17 | | For the purposes of this Section, "consumer price index u" | 18 | | means the index published by the Bureau of Labor Statistics of | 19 | | the United States Department of Labor that measures the average | 20 | | change in prices of goods and services purchased by all urban | 21 | | consumers, United States city average, all items, 1982-84 = | 22 | | 100. The new amount resulting from each annual adjustment shall | 23 | | be determined by the Public Pension Division of the Department | 24 | | of Insurance and made available to the boards of the retirement | 25 | | systems and pension funds by November 1 of each year. | 26 | | (Source: P.A. 91-887, eff. 7-6-00.)
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| 1 | | (40 ILCS 5/15-112) (from Ch. 108 1/2, par. 15-112)
| 2 | | Sec. 15-112. Final rate of earnings. | 3 | | "Final rate of earnings": | 4 | | (a) This subsection (a) applies only to a Tier 1 member to | 5 | | a person who first becomes a participant of any system before | 6 | | January 1, 2011 . | 7 | |
For an employee who is paid on an hourly basis or who | 8 | | receives an annual salary
in installments during 12 months of | 9 | | each academic year, the average annual
earnings during the 48 | 10 | | consecutive calendar month period ending with the last
day of | 11 | | final termination of employment or the 4 consecutive academic | 12 | | years of
service in which the employee's earnings were the | 13 | | highest, whichever is
greater.
For any other employee, the | 14 | | average annual earnings during the 4 consecutive
academic years | 15 | | of service in which his or her earnings were the highest.
For | 16 | | an employee with less than 48 months or 4 consecutive academic | 17 | | years of
service, the average earnings during his or her entire | 18 | | period of service.
The earnings of an employee with more than | 19 | | 36 months of service prior to the
date of becoming a | 20 | | participant are, for such period, considered equal to the
| 21 | | average earnings during the last 36 months of such service. | 22 | | (b) This subsection (b) applies to a Tier 2 member person | 23 | | to whom subsection (a) does not apply . | 24 | | For an employee who is paid on an hourly basis or who | 25 | | receives an annual salary in installments during 12 months of |
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| 1 | | each academic year, the average annual earnings obtained by | 2 | | dividing by 8 the total earnings of the employee during the 96 | 3 | | consecutive months in which the total earnings were the highest | 4 | | within the last 120 months prior to termination. | 5 | | For any other employee, the average annual earnings during | 6 | | the 8 consecutive academic years within the 10 years prior to | 7 | | termination in which the employee's earnings were the highest. | 8 | | For an employee with less than 96 consecutive months or 8 | 9 | | consecutive academic years of service, whichever is necessary, | 10 | | the average earnings during his or her entire period of | 11 | | service. | 12 | | (c) For an
employee on leave of absence with pay, or on | 13 | | leave of absence without pay
who makes contributions during | 14 | | such leave, earnings are assumed to be equal
to the basic | 15 | | compensation on the date the leave began. | 16 | | (d) For an employee on
disability leave, earnings are | 17 | | assumed to be equal to the basic compensation
on the date | 18 | | disability occurs or the average earnings during the 24 months
| 19 | | immediately preceding the month in which disability occurs, | 20 | | whichever is
greater.
| 21 | | (e) For a Tier 1 member participant who retires on or after | 22 | | the effective date of this
amendatory Act of 1997 with at least | 23 | | 20 years of service as a firefighter or
police officer under | 24 | | this Article, the final rate of earnings shall be the
annual | 25 | | rate of earnings received by the participant on his or her last | 26 | | day as a
firefighter or police officer under this Article, if |
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| 1 | | that is greater than the
final rate of earnings as calculated | 2 | | under the other provisions of this
Section.
| 3 | | (f) If a Tier 1 member participant to whom subsection (a) | 4 | | of this Section applies is an employee for at least
6 months | 5 | | during the academic year in which his or her employment
is | 6 | | terminated, the annual final rate of earnings shall be 25% of | 7 | | the sum
of (1) the annual basic compensation for that year, and | 8 | | (2) the amount
earned during the 36 months immediately | 9 | | preceding that year, if this is
greater than the final rate of | 10 | | earnings as calculated under the other
provisions of this | 11 | | Section.
| 12 | | (g) In the determination of the final rate of earnings for | 13 | | an employee, that
part of an employee's earnings for any | 14 | | academic year beginning after June 30,
1997, which exceeds the | 15 | | employee's earnings with that employer for the
preceding year | 16 | | by more than 20 percent shall be excluded; in the event
that an | 17 | | employee has more than one employer
this limitation shall be | 18 | | calculated separately for the earnings with
each employer. In | 19 | | making such calculation, only the basic compensation of
| 20 | | employees shall be considered, without regard to vacation or | 21 | | overtime or to
contracts for summer employment.
| 22 | | (h) The following are not considered as earnings in | 23 | | determining final rate of
earnings: (1) severance or separation | 24 | | pay, (2) retirement pay, (3)
payment for unused sick leave, and | 25 | | (4) payments from an employer for
the period used in | 26 | | determining final rate of earnings for any purpose other
than |
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| 1 | | (i) services rendered, (ii) leave of absence or vacation | 2 | | granted
during that period, and (iii) vacation of up to 56 work | 3 | | days allowed upon
termination of employment; except that, if | 4 | | the benefit has been collectively
bargained between the | 5 | | employer and the recognized collective bargaining agent
| 6 | | pursuant to the Illinois Educational Labor Relations Act, | 7 | | payment received
during a period of up to 2 academic years for | 8 | | unused sick leave may be
considered as earnings in accordance | 9 | | with the applicable collective bargaining
agreement, subject | 10 | | to the 20% increase limitation of this Section. Any unused
sick | 11 | | leave considered as earnings under this Section shall not be | 12 | | taken into
account in calculating service credit under Section | 13 | | 15-113.4.
| 14 | | (i) Intermittent periods of service shall be considered as | 15 | | consecutive in
determining final rate of earnings.
| 16 | | (Source: P.A. 96-1490, eff. 1-1-11.)
| 17 | | (40 ILCS 5/15-113.6) (from Ch. 108 1/2, par. 15-113.6)
| 18 | | Sec. 15-113.6. Service for employment in public schools. | 19 | | "Service for
employment in public schools": Includes
those | 20 | | periods not exceeding the lesser of 10 years or 2/3 of the | 21 | | service
granted under other Sections of this Article dealing | 22 | | with service credit,
during which a person who entered the | 23 | | system after September 1, 1974 was
employed full time by a | 24 | | public common school, public college and public
university, or | 25 | | by an agency or instrumentality of any of the foregoing,
of any |
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| 1 | | state, territory, dependency or possession of the United States | 2 | | of
America, including the Philippine Islands, or a school
| 3 | | operated by or under
the auspices of any agency or department | 4 | | of any other state, if the person
(1) cannot qualify for a | 5 | | retirement pension or other benefit based upon
employer
| 6 | | contributions from another retirement system, exclusive of | 7 | | federal social
security, based in whole or in part upon this | 8 | | employment, and (2) pays the
lesser of (A) an amount equal to | 9 | | 8% of his or her annual basic compensation
on the date of | 10 | | becoming a participating employee subsequent to this service
| 11 | | multiplied by the number of years of such service, together | 12 | | with compound
interest from the date participation begins to | 13 | | the date payment is received
by the board at the rate of 6% per | 14 | | annum through August 31, 1982, and at
the effective rates after | 15 | | that date, and (B) 50% of the actuarial value
of the increase | 16 | | in the retirement annuity provided by this service, and
(3) | 17 | | contributes for at least 5 years subsequent to this employment | 18 | | to one
or more of the following systems: the State Universities | 19 | | Retirement System,
the Teachers' Retirement System of the State | 20 | | of Illinois, and the Public
School Teachers' Pension and | 21 | | Retirement Fund of Chicago.
| 22 | | The service granted under this Section shall not be | 23 | | considered in determining
whether the person has the minimum of | 24 | | 8 years of service required to qualify
for a retirement annuity | 25 | | at age 55 or the 5 years of service required to
qualify for a | 26 | | retirement annuity at age 62 or the 10 years of service |
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| 1 | | required to qualify for a retirement annuity at age 67 , as | 2 | | provided in Section 15-135 , or the 10 years required by | 3 | | subsection (c) of Section 1-160 for a person who first becomes | 4 | | a participant on or after January 1, 2011 .
The maximum | 5 | | allowable service of 10 years for this governmental employment
| 6 | | shall be reduced by the service credit which is validated under | 7 | | paragraph
(2) of subsection (b) of Section 16-127 and paragraph | 8 | | 1 of Section 17-133.
| 9 | | (Source: P.A. 95-83, eff. 8-13-07; 96-1490, eff. 1-1-11.)
| 10 | | (40 ILCS 5/15-134) (from Ch. 108 1/2, par. 15-134)
| 11 | | Sec. 15-134. Participant.
| 12 | | (a) Each person shall, as a condition of employment, become | 13 | | a participant
and be subject to this Article on the date that | 14 | | he or she becomes an
employee, makes an election to participate | 15 | | in, or otherwise becomes a
participant in one of the retirement | 16 | | programs offered under this Article,
whichever date is later.
| 17 | | An employee who becomes a participant shall continue to be | 18 | | a participant
until he or she becomes an annuitant, dies or | 19 | | accepts a refund of
contributions. For purposes of subsection | 20 | | (f) of Section 1-160, the term "participant" shall include a | 21 | | person receiving a retirement annuity.
| 22 | | (b) A person employed concurrently by 2 or more employers | 23 | | is
eligible to participate in the system on compensation | 24 | | received from all
employers.
| 25 | | (Source: P.A. 96-1490, eff. 1-1-11.)
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| 1 | | (40 ILCS 5/15-135) (from Ch. 108 1/2, par. 15-135)
| 2 | | Sec. 15-135. Retirement annuities - Conditions.
| 3 | | (a) This subsection (a) applies only to a Tier 1 member. A | 4 | | participant who retires in one of the following specified years | 5 | | with
the specified amount of service is entitled to a | 6 | | retirement annuity at any age
under the retirement program | 7 | | applicable to the participant:
| 8 | | 35 years if retirement is in 1997 or before;
| 9 | | 34 years if retirement is in 1998;
| 10 | | 33 years if retirement is in 1999;
| 11 | | 32 years if retirement is in 2000;
| 12 | | 31 years if retirement is in 2001;
| 13 | | 30 years if retirement is in 2002 or later.
| 14 | | A participant with 8 or more years of service after | 15 | | September 1, 1941, is
entitled to a retirement annuity on or | 16 | | after attainment of age 55.
| 17 | | A participant with at least 5 but less than 8 years
of | 18 | | service after September 1, 1941, is entitled to a retirement | 19 | | annuity on
or after attainment of age 62.
| 20 | | A participant who has at least 25 years of service in this | 21 | | system as a
police officer or firefighter is entitled to a | 22 | | retirement
annuity on or after the attainment of age 50, if | 23 | | Rule 4 of Section
15-136 is applicable to the participant.
| 24 | | (a-5) A Tier 2 member is entitled to a retirement annuity | 25 | | upon written application if he or she has attained age 67 and |
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| 1 | | has at least 10 years of service credit and is otherwise | 2 | | eligible under the requirements of this Article. A Tier 2 | 3 | | member who has attained age 62 and has at least 10 years of | 4 | | service credit and is otherwise eligible under the requirements | 5 | | of this Article may elect to receive the lower retirement | 6 | | annuity provided in subsection (b-5) of Section 15-136 of this | 7 | | Article. | 8 | | (b) The annuity payment period shall begin on the date | 9 | | specified by the
participant or the recipient of a disability | 10 | | retirement annuity submitting a written application, which | 11 | | date shall not be prior
to termination of employment or more | 12 | | than one year before the application is
received by the board; | 13 | | however, if the participant is not an employee of an
employer | 14 | | participating in this System or in a participating system as | 15 | | defined
in Article 20 of this Code on April 1 of the calendar | 16 | | year next following
the calendar year in which the participant | 17 | | attains age 70 1/2, the annuity
payment period shall begin on | 18 | | that date regardless of whether an application
has been filed.
| 19 | | (c) An annuity is not payable if the amount provided under | 20 | | Section
15-136 is less than $10 per month.
| 21 | | (Source: P.A. 97-933, eff. 8-10-12; 97-968, eff. 8-16-12.)
| 22 | | (40 ILCS 5/15-136) (from Ch. 108 1/2, par. 15-136)
| 23 | | Sec. 15-136. Retirement annuities - Amount. The provisions | 24 | | of this
Section 15-136 apply only to those participants who are | 25 | | participating in the
traditional benefit package or the |
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| 1 | | portable benefit package and do not
apply to participants who | 2 | | are participating in the self-managed plan.
| 3 | | (a) The amount of a participant's retirement annuity, | 4 | | expressed in the form
of a single-life annuity, shall be | 5 | | determined by whichever of the following
rules is applicable | 6 | | and provides the largest annuity:
| 7 | | Rule 1: The retirement annuity shall be 1.67% of final rate | 8 | | of earnings for
each of the first 10 years of service, 1.90% | 9 | | for each of the next 10 years of
service, 2.10% for each year | 10 | | of service in excess of 20 but not exceeding 30,
and 2.30% for | 11 | | each year in excess of 30; or for persons who retire on or
| 12 | | after January 1, 1998, 2.2% of the final rate of earnings for | 13 | | each year of
service.
| 14 | | Rule 2: The retirement annuity shall be the sum of the | 15 | | following,
determined from amounts credited to the participant | 16 | | in accordance with the
actuarial tables and the effective rate | 17 | | of interest in effect at the
time the retirement annuity | 18 | | begins:
| 19 | | (i) the normal annuity which can be provided on an | 20 | | actuarially
equivalent basis, by the accumulated normal | 21 | | contributions as of
the date the annuity begins;
| 22 | | (ii) an annuity from employer contributions of an | 23 | | amount equal to that
which can be provided on an | 24 | | actuarially equivalent basis from the accumulated
normal | 25 | | contributions made by the participant under Section | 26 | | 15-113.6 and Section
15-113.7 plus 1.4 times all other |
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| 1 | | accumulated normal contributions made by
the participant; | 2 | | and
| 3 | | (iii) the annuity that can be provided on an | 4 | | actuarially equivalent basis
from the entire contribution | 5 | | made by the participant under Section 15-113.3.
| 6 | | With respect to a police officer or firefighter who retires | 7 | | on or after
August 14, 1998, the accumulated normal | 8 | | contributions taken into account under
clauses (i) and (ii) of | 9 | | this Rule 2 shall include the additional normal
contributions | 10 | | made by the police officer or firefighter under Section
| 11 | | 15-157(a).
| 12 | | The amount of a retirement annuity calculated under this | 13 | | Rule 2 shall
be computed solely on the basis of the | 14 | | participant's accumulated normal
contributions, as specified | 15 | | in this Rule and defined in Section 15-116.
Neither an employee | 16 | | or employer contribution for early retirement under
Section | 17 | | 15-136.2 nor any other employer contribution shall be used in | 18 | | the
calculation of the amount of a retirement annuity under | 19 | | this Rule 2.
| 20 | | This amendatory Act of the 91st General Assembly is a | 21 | | clarification of
existing law and applies to every participant | 22 | | and annuitant without regard to
whether status as an employee | 23 | | terminates before the effective date of this
amendatory Act.
| 24 | | This Rule 2 does not apply to a person who first becomes an | 25 | | employee under this Article on or after July 1, 2005.
| 26 | | Rule 3: The retirement annuity of a participant who is |
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| 1 | | employed
at least one-half time during the period on which his | 2 | | or her final rate of
earnings is based, shall be equal to the | 3 | | participant's years of service
not to exceed 30, multiplied by | 4 | | (1) $96 if the participant's final rate
of earnings is less | 5 | | than $3,500, (2) $108 if the final rate of earnings is
at least | 6 | | $3,500 but less than $4,500, (3) $120 if the final rate of | 7 | | earnings
is at least $4,500 but less than $5,500, (4) $132 if | 8 | | the final rate
of earnings is at least $5,500 but less than | 9 | | $6,500, (5)
$144 if the final rate of earnings is at least | 10 | | $6,500 but less than
$7,500, (6) $156 if the final rate of | 11 | | earnings is at least $7,500 but less
than $8,500, (7) $168 if | 12 | | the final rate of earnings is at least $8,500 but
less than | 13 | | $9,500, and (8) $180 if the final rate of earnings is $9,500 or
| 14 | | more, except that the annuity for those persons having made an | 15 | | election under
Section 15-154(a-1) shall be calculated and | 16 | | payable under the portable
retirement benefit program pursuant | 17 | | to the provisions of Section 15-136.4.
| 18 | | Rule 4: A participant who is at least age 50 and has 25 or | 19 | | more years of
service as a police officer or firefighter, and a | 20 | | participant who is age 55 or
over and has at least 20 but less | 21 | | than 25 years of service as a police officer
or firefighter, | 22 | | shall be entitled to a retirement annuity of 2 1/4% of the
| 23 | | final rate of earnings for each of the first 10 years of | 24 | | service as a police
officer or firefighter, 2 1/2% for each of | 25 | | the next 10 years of service as a
police officer or | 26 | | firefighter, and 2 3/4% for each year of service as a police
|
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| 1 | | officer or firefighter in excess of 20. The retirement annuity | 2 | | for all other
service shall be computed under Rule 1. A Tier 2 | 3 | | member is eligible for a retirement annuity calculated under | 4 | | Rule 4 only if that Tier 2 member meets the service | 5 | | requirements for that benefit calculation as prescribed under | 6 | | this Rule 4 in addition to the applicable age requirement under | 7 | | subsection (a-5) of Section 15-135.
| 8 | | For purposes of this Rule 4, a participant's service as a | 9 | | firefighter
shall also include the following:
| 10 | | (i) service that is performed while the person is an | 11 | | employee under
subsection (h) of Section 15-107; and
| 12 | | (ii) in the case of an individual who was a | 13 | | participating employee
employed in the fire department of | 14 | | the University of Illinois's
Champaign-Urbana campus | 15 | | immediately prior to the elimination of that fire
| 16 | | department and who immediately after the elimination of | 17 | | that fire department
transferred to another job with the | 18 | | University of Illinois, service performed
as an employee of | 19 | | the University of Illinois in a position other than police
| 20 | | officer or firefighter, from the date of that transfer | 21 | | until the employee's
next termination of service with the | 22 | | University of Illinois.
| 23 | | Rule 5: The retirement annuity of a participant who elected | 24 | | early
retirement under the provisions of Section 15-136.2 and | 25 | | who, on or before
February 16, 1995, brought administrative | 26 | | proceedings pursuant to the
administrative rules adopted by the |
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| 1 | | System to challenge the calculation of his
or her retirement | 2 | | annuity shall be the sum of the following, determined from
| 3 | | amounts credited to the participant in accordance with the | 4 | | actuarial tables and
the prescribed rate of interest in effect | 5 | | at the time the retirement annuity
begins:
| 6 | | (i) the normal annuity which can be provided on an | 7 | | actuarially equivalent
basis, by the accumulated normal | 8 | | contributions as of the date the annuity
begins; and
| 9 | | (ii) an annuity from employer contributions of an | 10 | | amount equal to that
which can be provided on an | 11 | | actuarially equivalent basis from the accumulated
normal | 12 | | contributions made by the participant under Section | 13 | | 15-113.6 and Section
15-113.7 plus 1.4 times all other | 14 | | accumulated normal contributions made by the
participant; | 15 | | and
| 16 | | (iii) an annuity which can be provided on an | 17 | | actuarially equivalent basis
from the employee | 18 | | contribution for early retirement under Section 15-136.2, | 19 | | and
an annuity from employer contributions of an amount | 20 | | equal to that which can be
provided on an actuarially | 21 | | equivalent basis from the employee contribution for
early | 22 | | retirement under Section 15-136.2.
| 23 | | In no event shall a retirement annuity under this Rule 5 be | 24 | | lower than the
amount obtained by adding (1) the monthly amount | 25 | | obtained by dividing the
combined employee and employer | 26 | | contributions made under Section 15-136.2 by the
System's |
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| 1 | | annuity factor for the age of the participant at the beginning | 2 | | of the
annuity payment period and (2) the amount equal to the | 3 | | participant's annuity if
calculated under Rule 1, reduced under | 4 | | Section 15-136(b) as if no
contributions had been made under | 5 | | Section 15-136.2.
| 6 | | With respect to a participant who is qualified for a | 7 | | retirement annuity under
this Rule 5 whose retirement annuity | 8 | | began before the effective date of this
amendatory Act of the | 9 | | 91st General Assembly, and for whom an employee
contribution | 10 | | was made under Section 15-136.2, the System shall recalculate | 11 | | the
retirement annuity under this Rule 5 and shall pay any | 12 | | additional amounts due
in the manner provided in Section | 13 | | 15-186.1 for benefits mistakenly set too low.
| 14 | | The amount of a retirement annuity calculated under this | 15 | | Rule 5 shall be
computed solely on the basis of those | 16 | | contributions specifically set forth in
this Rule 5. Except as | 17 | | provided in clause (iii) of this Rule 5, neither an
employee | 18 | | nor employer contribution for early retirement under Section | 19 | | 15-136.2,
nor any other employer contribution, shall be used in | 20 | | the calculation of the
amount of a retirement annuity under | 21 | | this Rule 5.
| 22 | | The General Assembly has adopted the changes set forth in | 23 | | Section 25 of this
amendatory Act of the 91st General Assembly | 24 | | in recognition that the decision of
the Appellate Court for the | 25 | | Fourth District in Mattis v. State Universities
Retirement | 26 | | System et al. might be deemed to give some right to the |
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| 1 | | plaintiff in
that case. The changes made by Section 25 of this | 2 | | amendatory Act of the 91st
General Assembly are a legislative | 3 | | implementation of the decision of the
Appellate Court for the | 4 | | Fourth District in Mattis v. State Universities
Retirement | 5 | | System et al. with respect to that plaintiff.
| 6 | | The changes made by Section 25 of this amendatory Act of | 7 | | the 91st General
Assembly apply without regard to whether the | 8 | | person is in service as an
employee on or after its effective | 9 | | date.
| 10 | | (b) For a Tier 1 member, the The retirement annuity | 11 | | provided under Rules 1 and 3 above shall be
reduced by 1/2 of | 12 | | 1% for each month the participant is under age 60 at the
time | 13 | | of retirement. However, this reduction shall not apply in the | 14 | | following
cases:
| 15 | | (1) For a disabled participant whose disability | 16 | | benefits have been
discontinued because he or she has | 17 | | exhausted eligibility for disability
benefits under clause | 18 | | (6) of Section 15-152;
| 19 | | (2) For a participant who has at least the number of | 20 | | years of service
required to retire at any age under | 21 | | subsection (a) of Section 15-135; or
| 22 | | (3) For that portion of a retirement annuity which has | 23 | | been provided on
account of service of the participant | 24 | | during periods when he or she performed
the duties of a | 25 | | police officer or firefighter, if these duties were | 26 | | performed
for at least 5 years immediately preceding the |
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| 1 | | date the retirement annuity
is to begin.
| 2 | | (b-5) The retirement annuity of a Tier 2 member who is | 3 | | retiring after attaining age 62 with at least 10 years of | 4 | | service credit shall be reduced by 1/2 of 1% for each full | 5 | | month that the member's age is under age 67. | 6 | | (c) The maximum retirement annuity provided under Rules 1, | 7 | | 2, 4,
and 5
shall be the lesser of (1) the annual limit of | 8 | | benefits as specified in
Section 415 of the Internal Revenue | 9 | | Code of 1986, as such Section may be
amended from time to time | 10 | | and as such benefit limits shall be adjusted by
the | 11 | | Commissioner of Internal Revenue, and (2) 80% of final rate of
| 12 | | earnings.
| 13 | | (d) A Tier 1 member An annuitant whose status as an | 14 | | employee terminates after August 14,
1969 shall receive | 15 | | automatic increases in his or her retirement annuity as
| 16 | | follows:
| 17 | | Effective January 1 immediately following the date the | 18 | | retirement annuity
begins, the annuitant shall receive an | 19 | | increase in his or her monthly
retirement annuity of 0.125% of | 20 | | the monthly retirement annuity provided under
Rule 1, Rule 2, | 21 | | Rule 3, or Rule 4 , or Rule 5, contained in this
Section, | 22 | | multiplied by
the number of full months which elapsed from the | 23 | | date the retirement annuity
payments began to January 1, 1972, | 24 | | plus 0.1667% of such annuity, multiplied by
the number of full | 25 | | months which elapsed from January 1, 1972, or the date the
| 26 | | retirement annuity payments began, whichever is later, to |
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| 1 | | January 1, 1978, plus
0.25% of such annuity multiplied by the | 2 | | number of full months which elapsed
from January 1, 1978, or | 3 | | the date the retirement annuity payments began,
whichever is | 4 | | later, to the effective date of the increase.
| 5 | | The annuitant shall receive an increase in his or her | 6 | | monthly retirement
annuity on each January 1 thereafter during | 7 | | the annuitant's life of 3% of
the monthly annuity provided | 8 | | under Rule 1, Rule 2, Rule 3, or Rule 4 , or
Rule 5 contained
in | 9 | | this Section. The change made under this subsection by P.A. | 10 | | 81-970 is
effective January 1, 1980 and applies to each | 11 | | annuitant whose status as
an employee terminates before or | 12 | | after that date.
| 13 | | Beginning January 1, 1990, all automatic annual increases | 14 | | payable under
this Section shall be calculated as a percentage | 15 | | of the total annuity
payable at the time of the increase, | 16 | | including all increases previously
granted under this Article.
| 17 | | The change made in this subsection by P.A. 85-1008 is | 18 | | effective January
26, 1988, and is applicable without regard to | 19 | | whether status as an employee
terminated before that date.
| 20 | | (d-5) A retirement annuity of a Tier 2 member shall receive | 21 | | annual increases on the January 1 occurring either on or after | 22 | | the attainment of age 67 or the first anniversary of the | 23 | | annuity start date, whichever is later. Each annual increase | 24 | | shall be calculated at 3% or one half the annual unadjusted | 25 | | percentage increase (but not less than zero) in the consumer | 26 | | price index-u for the 12 months ending with the September |
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| 1 | | preceding each November 1, whichever is less, of the originally | 2 | | granted retirement annuity. If the annual unadjusted | 3 | | percentage change in the consumer price index-u for the 12 | 4 | | months ending with the September preceding each November 1 is | 5 | | zero or there is a decrease, then the annuity shall not be | 6 | | increased. | 7 | | (e) If, on January 1, 1987, or the date the retirement | 8 | | annuity payment
period begins, whichever is later, the sum of | 9 | | the retirement annuity
provided under Rule 1 or Rule 2 of this | 10 | | Section
and the automatic annual increases provided under the | 11 | | preceding subsection
or Section 15-136.1, amounts to less than | 12 | | the retirement
annuity which would be provided by Rule 3, the | 13 | | retirement
annuity shall be increased as of January 1, 1987, or | 14 | | the date the
retirement annuity payment period begins, | 15 | | whichever is later, to the amount
which would be provided by | 16 | | Rule 3 of this Section. Such increased
amount shall be | 17 | | considered as the retirement annuity in determining
benefits | 18 | | provided under other Sections of this Article. This paragraph
| 19 | | applies without regard to whether status as an employee | 20 | | terminated before the
effective date of this amendatory Act of | 21 | | 1987, provided that the annuitant was
employed at least | 22 | | one-half time during the period on which the final rate of
| 23 | | earnings was based.
| 24 | | (f) A participant is entitled to such additional annuity as | 25 | | may be provided
on an actuarially equivalent basis, by any | 26 | | accumulated
additional contributions to his or her credit. |
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| 1 | | However,
the additional contributions made by the participant | 2 | | toward the automatic
increases in annuity provided under this | 3 | | Section shall not be taken into
account in determining the | 4 | | amount of such additional annuity.
| 5 | | (g) If, (1) by law, a function of a governmental unit, as | 6 | | defined by Section
20-107 of this Code, is transferred in whole | 7 | | or in part to an employer, and (2)
a participant transfers | 8 | | employment from such governmental unit to such employer
within | 9 | | 6 months after the transfer of the function, and (3) the sum of | 10 | | (A) the
annuity payable to the participant under Rule 1, 2, or | 11 | | 3 of this Section (B)
all proportional annuities payable to the | 12 | | participant by all other retirement
systems covered by Article | 13 | | 20, and (C) the initial primary insurance amount to
which the | 14 | | participant is entitled under the Social Security Act, is less | 15 | | than
the retirement annuity which would have been payable if | 16 | | all of the
participant's pension credits validated under | 17 | | Section 20-109 had been validated
under this system, a | 18 | | supplemental annuity equal to the difference in such
amounts | 19 | | shall be payable to the participant.
| 20 | | (h) On January 1, 1981, an annuitant who was receiving
a | 21 | | retirement annuity on or before January 1, 1971 shall have his | 22 | | or her
retirement annuity then being paid increased $1 per | 23 | | month for
each year of creditable service. On January 1, 1982, | 24 | | an annuitant whose
retirement annuity began on or before | 25 | | January 1, 1977, shall have his or her
retirement annuity then | 26 | | being paid increased $1 per month for each year of
creditable |
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| 1 | | service.
| 2 | | (i) On January 1, 1987, any annuitant whose retirement | 3 | | annuity began on or
before January 1, 1977, shall have the | 4 | | monthly retirement annuity increased by
an amount equal to 8˘ | 5 | | per year of creditable service times the number of years
that | 6 | | have elapsed since the annuity began.
| 7 | | (Source: P.A. 97-933, eff. 8-10-12; 97-968, eff. 8-16-12.)
| 8 | | (40 ILCS 5/15-136.3)
| 9 | | Sec. 15-136.3. Minimum retirement annuity.
| 10 | | (a) Beginning January 1, 1997, any person who is receiving | 11 | | a monthly
retirement
annuity under this Article which, after | 12 | | inclusion of (1) all one-time and
automatic annual increases to | 13 | | which the person is entitled, (2) any
supplemental annuity | 14 | | payable under Section 15-136.1, and (3) any amount
deducted | 15 | | under Section 15-138 or 15-140 to provide a reversionary | 16 | | annuity, is
less than the minimum monthly retirement benefit | 17 | | amount specified in subsection
(b) of this Section, shall be | 18 | | entitled to a monthly supplemental payment equal
to the | 19 | | difference.
| 20 | | (b) For purposes of the calculation in subsection (a), the | 21 | | minimum monthly
retirement benefit amount is the sum of $25 for | 22 | | each year of service credit, up
to a maximum of 30 years of | 23 | | service.
| 24 | | (c) This Section applies to all persons receiving a | 25 | | retirement annuity under
this Article, without regard to |
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| 1 | | whether or not employment terminated prior to
the effective | 2 | | date of this Section. The annual increase provided in | 3 | | subsection (e) of Section 1-160 does not apply to any benefit | 4 | | provided under this Section.
| 5 | | (Source: P.A. 96-1490, eff. 1-1-11.)
| 6 | | (40 ILCS 5/15-139) (from Ch. 108 1/2, par. 15-139)
| 7 | | Sec. 15-139. Retirement annuities; cancellation; suspended | 8 | | during
employment. | 9 | | (a) If an annuitant returns to employment for an employer
| 10 | | within 60 days after the beginning of the retirement annuity | 11 | | payment
period, the retirement annuity shall be cancelled, and | 12 | | the annuitant shall
refund to the System the total amount of | 13 | | the retirement annuity payments
which he or she received. If | 14 | | the retirement annuity is cancelled, the
participant shall | 15 | | continue to participate in the System.
| 16 | | (b) If an annuitant retires prior to age 60 and receives or | 17 | | becomes
entitled to receive during any month compensation in | 18 | | excess of the monthly
retirement annuity (including any | 19 | | automatic annual increases) for services
performed after the | 20 | | date of retirement for any employer under this System, that
| 21 | | portion of the monthly
retirement annuity provided by employer | 22 | | contributions shall not be payable.
| 23 | | If an annuitant retires at age 60 or over and receives
or | 24 | | becomes entitled to receive during any academic year | 25 | | compensation in
excess of the difference between his or her |
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| 1 | | highest annual earnings prior
to retirement and his or her | 2 | | annual retirement annuity computed under Rule
1, Rule 2, Rule | 3 | | 3, or Rule 4 , or Rule 5 of Section 15-136, or under Section
| 4 | | 15-136.4,
for services performed after
the date of retirement | 5 | | for any employer under this System, that portion of
the monthly | 6 | | retirement annuity provided by employer contributions shall be
| 7 | | reduced by an amount equal to the compensation that exceeds | 8 | | such difference.
| 9 | | However, any remuneration received for serving as a member | 10 | | of the
Illinois Educational Labor Relations Board shall be | 11 | | excluded from
"compensation" for the purposes of this | 12 | | subsection (b), and serving as a
member of the Illinois | 13 | | Educational Labor Relations Board shall not be
deemed to be a | 14 | | return to employment for the purposes of this Section.
This | 15 | | provision applies without regard to whether service was | 16 | | terminated
prior to the effective date of this amendatory Act | 17 | | of 1991.
| 18 | | (c) If an employer certifies that an annuitant has been | 19 | | reemployed
on a permanent and continuous basis or in a position
| 20 | | in which the annuitant is expected to serve for at least 9 | 21 | | months, the
annuitant shall resume his or her status as a | 22 | | participating employee
and shall be entitled to all rights | 23 | | applicable to
participating employees upon filing with the | 24 | | board an
election to forgo all annuity payments during the | 25 | | period
of reemployment. Upon subsequent retirement, the | 26 | | retirement
annuity shall consist of the annuity which was |
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| 1 | | terminated by the reemployment,
plus the additional retirement | 2 | | annuity based upon service
granted during the period of | 3 | | reemployment, but the combined retirement
annuity shall not | 4 | | exceed the maximum
annuity applicable on the date of the last | 5 | | retirement.
| 6 | | The total service and earnings credited before and after | 7 | | the initial
date of retirement shall be considered in | 8 | | determining eligibility of the
employee or the employee's | 9 | | beneficiary to benefits under this
Article, and in calculating | 10 | | final rate of earnings.
| 11 | | In determining the death benefit
payable to a beneficiary | 12 | | of an annuitant who again becomes a participating
employee | 13 | | under this Section, accumulated normal and additional
| 14 | | contributions shall be considered as the sum of the accumulated | 15 | | normal and
additional contributions at the date of initial | 16 | | retirement and the
accumulated normal and additional | 17 | | contributions credited after that date,
less the sum of the | 18 | | annuity payments received by the annuitant.
| 19 | | The survivors insurance benefits provided under Section | 20 | | 15-145 shall not
be applicable to an annuitant who resumes his | 21 | | or her status as a
participating employee, unless the | 22 | | annuitant, at the time of initial
retirement, has a survivors | 23 | | insurance beneficiary who could qualify
for such benefits.
| 24 | | If the participant's employment is terminated because of | 25 | | circumstances
other than death before 9 months from the date of | 26 | | reemployment, the
provisions of this Section regarding |
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| 1 | | resumption of status as a
participating employee shall not | 2 | | apply. The normal and survivors insurance
contributions which | 3 | | are deducted during this period shall be refunded to
the | 4 | | annuitant without interest, and subsequent benefits under this | 5 | | Article
shall be the same as those which were applicable prior | 6 | | to the date the
annuitant resumed employment.
| 7 | | The amendments made to this Section by this amendatory Act | 8 | | of the 91st
General Assembly apply without regard to whether | 9 | | the annuitant was in service
on or after the effective date of | 10 | | this amendatory Act.
| 11 | | (Source: P.A. 97-933, eff. 8-10-12; 97-968, eff. 8-16-12.)
| 12 | | (40 ILCS 5/15-139.1 new) | 13 | | Sec. 15-139.1. Tier 2 member retirement annuities; | 14 | | suspended during employment. If a Tier 2 member is receiving a | 15 | | retirement annuity under this System and becomes a member or | 16 | | participant under any other system or fund created by this Code | 17 | | and is employed on a full-time basis, then the person's | 18 | | retirement annuity shall be suspended during that employment. | 19 | | Upon termination of that employment, the person's retirement | 20 | | annuity shall resume and be recalculated if recalculation is | 21 | | provided for under this Article.
| 22 | | (40 ILCS 5/15-145) (from Ch. 108 1/2, par. 15-145)
| 23 | | Sec. 15-145. Survivors insurance benefits; conditions and | 24 | | amounts.
|
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| 1 | | (a) The survivors insurance benefits provided under this | 2 | | Section shall
be payable to the eligible survivors of a Tier 1 | 3 | | member participant covered under the
traditional benefit | 4 | | package upon the death of (1) a participating employee
with at | 5 | | least 1 1/2 years of service, (2) a participant who terminated
| 6 | | employment with at least 10 years of service, and (3) an | 7 | | annuitant in receipt
of a retirement annuity or disability | 8 | | retirement annuity under this Article.
| 9 | | Service under the State Employees' Retirement System of | 10 | | Illinois, the
Teachers' Retirement System of the State of | 11 | | Illinois and the Public School
Teachers' Pension and Retirement | 12 | | Fund of Chicago shall be considered in
determining eligibility | 13 | | for survivors benefits under this Section.
| 14 | | If by law, a function of a governmental unit, as defined by | 15 | | Section 20-107,
is transferred in whole or in part to an | 16 | | employer, and an employee transfers
employment from this | 17 | | governmental unit to such employer within 6 months after
the | 18 | | transfer of this function, the service credits in the | 19 | | governmental unit's
retirement system which have been | 20 | | validated under Section 20-109 shall be
considered in | 21 | | determining eligibility for survivors benefits under this
| 22 | | Section.
| 23 | | (b) A surviving spouse of a deceased participant, or of a | 24 | | deceased
annuitant who did not take a refund or additional | 25 | | annuity consisting of
accumulated survivors insurance | 26 | | contributions, shall receive a survivors
annuity of 30% of the |
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| 1 | | final rate of earnings. Payments shall begin on the
day | 2 | | following the participant's or annuitant's death or the date | 3 | | the surviving
spouse attains age 50, whichever is later, and | 4 | | continue until the death of the
surviving spouse. The annuity | 5 | | shall be payable to the surviving spouse prior
to attainment of | 6 | | age 50 if the surviving spouse has in his or her care a
| 7 | | deceased participant's or annuitant's dependent unmarried | 8 | | child under age 18
(under age 22 if a full-time student) who is | 9 | | eligible for a survivors annuity.
| 10 | | Remarriage of a surviving spouse prior to attainment of age | 11 | | 55 that occurs
before the effective date of this amendatory Act | 12 | | of the 91st General Assembly
shall disqualify him or her for | 13 | | the receipt of a survivors annuity until July
6, 2000.
| 14 | | A surviving spouse whose survivors annuity has been | 15 | | terminated due to
remarriage may apply for reinstatement of | 16 | | that
annuity. The reinstated annuity shall begin to accrue on | 17 | | July 6, 2000, except
that if, on July 6, 2000, the annuity is | 18 | | payable to an eligible surviving
child or parent, payment of | 19 | | the annuity to the surviving spouse shall not be
reinstated | 20 | | until the annuity is no longer payable to any eligible | 21 | | surviving
child or parent. The reinstated annuity shall include | 22 | | any one-time or annual
increases received prior to the date of | 23 | | termination, as well as any increases
that would otherwise have | 24 | | accrued from the date of termination to the date of
| 25 | | reinstatement.
An eligible surviving spouse whose expectation | 26 | | of receiving a survivors
annuity was lost due to remarriage |
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| 1 | | before attainment of age 50 shall also be
entitled to | 2 | | reinstatement under this subsection, but the resulting | 3 | | survivors
annuity shall not begin to accrue sooner than upon | 4 | | the surviving spouse's
attainment of age 50.
| 5 | | The changes made to this subsection by this amendatory Act | 6 | | of the 92nd
General Assembly (pertaining to remarriage prior to | 7 | | age 55 or 50) apply without
regard to whether the deceased | 8 | | participant or annuitant was in service on or
after the | 9 | | effective date of this amendatory Act.
| 10 | | (c) Each dependent unmarried child under age 18 (under age | 11 | | 22 if a
full-time student) of a deceased participant, or of a | 12 | | deceased annuitant who
did not take a refund or additional | 13 | | annuity consisting of accumulated survivors
insurance | 14 | | contributions,
shall receive a survivors annuity equal to the | 15 | | sum of (1) 20% of the final rate
of earnings, and (2) 10% of the | 16 | | final rate of earnings divided by the number of
children | 17 | | entitled to this benefit. Payments shall begin on the day | 18 | | following
the participant's or annuitant's death and continue | 19 | | until the child marries,
dies, or attains age 18 (age 22 if a | 20 | | full-time student). If the child
is in the care of a surviving | 21 | | spouse who is eligible for survivors insurance
benefits, the | 22 | | child's benefit shall be paid to the surviving spouse.
| 23 | | Each unmarried child over age 18 of a deceased participant | 24 | | or of a deceased
annuitant who had a survivor's insurance | 25 | | beneficiary at the time of his or her
retirement, and who was | 26 | | dependent upon the participant or annuitant by reason
of a |
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| 1 | | physical or mental disability which began prior to the date the | 2 | | child
attained age 18 (age 22 if a full-time student), shall | 3 | | receive a survivor's
annuity equal to the
sum of (1) 20% of the | 4 | | final rate of earnings, and (2) 10% of the final rate
of | 5 | | earnings divided by the number of children entitled to | 6 | | survivors
benefits. Payments shall begin on the day following | 7 | | the participant's or
annuitant's death and continue until the | 8 | | child marries, dies, or is no
longer disabled. If the child is | 9 | | in the care of a surviving spouse who is
eligible for survivors | 10 | | insurance benefits, the child's benefit may be paid
to the | 11 | | surviving spouse. For the purposes of this Section, disability
| 12 | | means inability to engage in any substantial gainful activity | 13 | | by reason of
any medically determinable physical or mental | 14 | | impairment that can be
expected to result in death or that has | 15 | | lasted or can be expected to last
for a continuous period of at | 16 | | least one year.
| 17 | | (d) Each dependent parent of a deceased participant, or of | 18 | | a deceased
annuitant who did not take a refund or additional | 19 | | annuity consisting of
accumulated survivors insurance | 20 | | contributions, shall receive a survivors
annuity equal to the | 21 | | sum of (1) 20% of
final rate of earnings, and (2) 10% of final | 22 | | rate of earnings divided by the
number of parents who qualify | 23 | | for the benefit. Payments shall begin when the
parent reaches | 24 | | age 55 or the day following the participant's or annuitant's
| 25 | | death, whichever is later, and continue until the parent dies. | 26 | | Remarriage of
a parent prior to attainment of age 55 shall |
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| 1 | | disqualify the parent for the
receipt of a survivors annuity.
| 2 | | (e) In addition to the survivors annuity provided above, | 3 | | each
survivors insurance beneficiary shall, upon death of the | 4 | | participant or
annuitant, receive a lump sum payment of $1,000 | 5 | | divided by the number
of such beneficiaries.
| 6 | | (f) The changes made in this Section by Public Act 81-712 | 7 | | pertaining
to survivors annuities in cases of remarriage prior | 8 | | to age 55
shall apply to each survivors insurance beneficiary | 9 | | who
remarries after June 30, 1979, regardless of the date that | 10 | | the
participant or annuitant terminated his employment or died.
| 11 | | The change made to this Section by this amendatory Act of | 12 | | the 91st General
Assembly, pertaining to remarriage prior to | 13 | | age 55, applies without regard to
whether the deceased | 14 | | participant or annuitant was in service on or after the
| 15 | | effective date of this amendatory Act of the 91st General | 16 | | Assembly.
| 17 | | (g) On January 1, 1981, any person who was receiving
a | 18 | | survivors annuity on or before January 1, 1971 shall have the
| 19 | | survivors annuity then being paid increased by 1% for each full | 20 | | year which
has elapsed from the date the annuity began. On | 21 | | January 1, 1982, any
survivor whose annuity began after January | 22 | | 1, 1971, but before January 1,
1981, shall have the survivor's | 23 | | annuity then being paid increased by 1% for
each year which has | 24 | | elapsed from the date the survivor's annuity began.
On January | 25 | | 1, 1987, any survivor who began receiving a survivor's annuity
| 26 | | on or before January 1, 1977, shall have the monthly survivor's |
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| 1 | | annuity
increased by $1 for each full year which has elapsed | 2 | | since the date the
survivor's annuity began.
| 3 | | (h) If the sum of the lump sum and total monthly survivor | 4 | | benefits
payable under this Section upon the death of a | 5 | | participant amounts to less
than the sum of the death benefits | 6 | | payable under items (2) and (3) of
Section 15-141, the | 7 | | difference shall be paid in a lump sum to the
beneficiary of | 8 | | the participant who is living on the date that this
additional | 9 | | amount becomes payable.
| 10 | | (i) If the sum of the lump sum and total monthly survivor | 11 | | benefits payable
under this Section upon the death of an | 12 | | annuitant receiving a retirement
annuity or disability | 13 | | retirement annuity amounts to less than the death
benefit | 14 | | payable under Section 15-142, the difference shall be paid to | 15 | | the
beneficiary of the annuitant who is living on the date that | 16 | | this
additional amount becomes payable.
| 17 | | (j) Effective on the later of (1) January 1, 1990, or (2) | 18 | | the
January 1 on or next after the date on which the survivor | 19 | | annuity begins,
if the deceased member died while receiving a | 20 | | retirement annuity, or in all
other cases the January 1 nearest | 21 | | the first
anniversary of the date the survivor annuity payments | 22 | | begin, every survivors
insurance beneficiary shall receive an | 23 | | increase in
his or her monthly survivors annuity of 3%. On each | 24 | | January 1 after the
initial increase, the monthly survivors | 25 | | annuity shall be increased by 3% of
the total survivors annuity | 26 | | provided under this Article, including previous
increases |
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| 1 | | provided by this subsection. Such increases shall apply to the
| 2 | | survivors insurance beneficiaries of each participant and | 3 | | annuitant,
whether or not the employment status of the | 4 | | participant or annuitant
terminates before the effective date | 5 | | of this amendatory Act of 1990. This
subsection (j) also | 6 | | applies to persons receiving a survivor annuity
under the | 7 | | portable benefit package.
| 8 | | (k) If the Internal Revenue Code of 1986, as amended, | 9 | | requires that the
survivors benefits be payable at an age | 10 | | earlier than that specified in this
Section the benefits shall | 11 | | begin at the earlier age, in which event, the
survivor's | 12 | | beneficiary shall be entitled only to that amount which is | 13 | | equal
to the actuarial equivalent of the benefits provided by | 14 | | this Section.
| 15 | | (l) The changes made to this Section and Section 15-131 by | 16 | | this amendatory
Act of 1997, relating to benefits for certain | 17 | | unmarried children who are
full-time students under age 22, | 18 | | apply without regard to whether the deceased
member was in | 19 | | service on or after the effective date of this amendatory Act
| 20 | | of 1997. These changes do not authorize the repayment of a | 21 | | refund or a
re-election of benefits, and any benefit or | 22 | | increase in benefits resulting
from these changes is not | 23 | | payable retroactively for any period before the
effective date | 24 | | of this amendatory Act of 1997.
| 25 | | (Source: P.A. 91-887, eff. 7-6-00; 92-749, eff. 8-2-02.)
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| 1 | | (40 ILCS 5/15-145.1 new) | 2 | | Sec. 15-145.1. Survivor's insurance benefits for Tier 2 | 3 | | Members; amount. The initial survivor's insurance benefit of a | 4 | | survivors insurance beneficiary of a Tier 2 member shall be in | 5 | | the amount of 66 2/3% of the Tier 2 member's retirement annuity | 6 | | at the date of death. In the case of the death of a Tier 2 | 7 | | member who has not retired, eligibility for a survivor's | 8 | | insurance benefit shall be determined by the applicable Section | 9 | | of this Article. The initial benefit shall be 66 2/3% of the | 10 | | earned annuity without a reduction due to age and shall be | 11 | | increased (1) on each January 1 occurring on or after the | 12 | | commencement of the annuity if the deceased Tier 2 member died | 13 | | while receiving a retirement annuity or (2) in other cases, on | 14 | | each January 1 occurring after the first anniversary of the | 15 | | commencement of the benefit. Each annual increase shall be | 16 | | calculated at 3% or one half the annual unadjusted percentage | 17 | | increase (but not less than zero) in the consumer price index-u | 18 | | for the 12 months ending with the September preceding each | 19 | | November 1, whichever is less, of the originally granted | 20 | | survivor's insurance benefit. If the annual unadjusted | 21 | | percentage change in the consumer price index-u for the 12 | 22 | | months ending with the September preceding each November 1 is | 23 | | zero or there is a decrease, then the survivor's insurance | 24 | | benefit shall not be increased. A beneficiary of a Tier 2 | 25 | | member who elects the Portable Benefit Package provided under | 26 | | this Article shall not be eligible for the survivor's insurance |
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| 1 | | benefit that is provided under this Section. If 2 or more | 2 | | persons are eligible to receive survivor's insurance benefits | 3 | | as provided under this Section based on the same deceased Tier | 4 | | 2 member, the calculation of the survivor's insurance benefits | 5 | | shall be based on the total calculation of the survivor's | 6 | | insurance benefit and divided pro rata.
| 7 | | (40 ILCS 5/15-146) (from Ch. 108 1/2, par. 15-146)
| 8 | | Sec. 15-146. Survivors insurance benefits - Minimum | 9 | | amounts.
| 10 | | (a) The minimum total survivors annuity payable on account | 11 | | of the
death of a participant shall be 50% of the retirement | 12 | | annuity which
would have been provided under Rule 1, Rule 2, or | 13 | | Rule 3 , or Rule 5 of
Section 15-136 upon the participant's | 14 | | attainment of the minimum
age at which the penalty for early | 15 | | retirement would not be applicable or
the date of the | 16 | | participant's death, whichever is later, on the basis of
| 17 | | credits earned prior to the time of death.
| 18 | | (b) The minimum total survivors annuity payable on account | 19 | | of the death
of an annuitant shall be 50% of the retirement | 20 | | annuity which is payable
under Section 15-136 at the time of | 21 | | death or 50% of the disability retirement
annuity payable under | 22 | | Section 15-153.2. This
minimum survivors annuity shall apply to | 23 | | each participant and
annuitant who dies after September 16, | 24 | | 1979, whether or not
his or her employee status terminates | 25 | | before or after that date.
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| 1 | | (c) If an annuitant has elected a reversionary annuity, the | 2 | | retirement
annuity referred to in this Section is that which | 3 | | would have been payable
had such election not been filed.
| 4 | | (d) Beginning January 1, 2002, any person who is receiving | 5 | | a survivors
annuity under this Article which, after inclusion | 6 | | of all one-time and automatic
annual increases to which the | 7 | | person is entitled, is less than the sum of
$17.50 for each | 8 | | year (up to a maximum of 30 years) of the deceased member's
| 9 | | service credit, shall be entitled to a monthly supplemental | 10 | | payment equal to
the difference.
| 11 | | If 2 or more persons are receiving survivors annuities | 12 | | based on the same
deceased member, the calculation of the | 13 | | supplemental payment under this
subsection shall be based on | 14 | | the total of those annuities and divided pro
rata. The | 15 | | supplemental payment is not subject to any limitation on the
| 16 | | maximum amount of the annuity and shall not be included in the | 17 | | calculation
of any automatic annual increase under Section | 18 | | 15-145. The annual increase provided in subsection (f) of | 19 | | Section 1-160 does not apply to any benefit provided under this | 20 | | subsection.
| 21 | | (Source: P.A. 96-1490, eff. 1-1-11.)
| 22 | | (40 ILCS 5/15-146.1) (from Ch. 108 1/2, par. 15-146.1)
| 23 | | Sec. 15-146.1. Survivors insurance benefits-Maximum | 24 | | amounts.
| 25 | | (a) The
maximum total survivors annuity payable on account |
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| 1 | | of any deceased
participating
employee shall be the lesser of: | 2 | | (1) 80% of the final rate of earnings;
or (2) (A) $400 per | 3 | | month if one survivors insurance beneficiary is entitled
to a | 4 | | survivors annuity, or (B) $600 per month if there are 2 or more | 5 | | such
beneficiaries.
| 6 | | (b) The maximum total survivors annuity payable on account | 7 | | of the death
of any person occurring after retirement or after | 8 | | termination of his or
her employee status shall be the lesser | 9 | | of: (1) 80% of the final rate of
earnings; (2) (A) $400 per | 10 | | month if one survivors insurance beneficiary
is entitled to a | 11 | | survivors annuity, or (B) $600 per month if there are 2
or more | 12 | | such beneficiaries; or (3) 80% of the retirement annuity | 13 | | payable
to the annuitant at the date of retirement under the | 14 | | provisions of Rule
1, Rule 2, or Rule 3 , or Rule 5 of Section | 15 | | 15-136, or 80% of the
retirement annuity
which would have been | 16 | | payable to the participant upon attainment of the
minimum age | 17 | | at which the penalty for early retirement would not be | 18 | | applicable
or the date of death, whichever is later, based upon | 19 | | credits earned as of
the date of death.
| 20 | | (c) The maximum total survivors annuity payable on account | 21 | | of the death
of any person whose death occurs while in receipt | 22 | | of a disability retirement
annuity under Section 15-153.2 shall | 23 | | be the lesser of (1) 80% of his or
her final rate of earnings, | 24 | | (2) (A) $400 per month if one survivors insurance
beneficiary | 25 | | is entitled to a survivors annuity, or (B) $600 per month if
2 | 26 | | or more survivors insurance beneficiaries qualify for this |
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| 1 | | benefit, or
(3) 80% of the retirement annuity which would have | 2 | | been payable upon attainment
of the age at which the penalty | 3 | | for early retirement would not be applicable
or the date of | 4 | | death, whichever is later, based upon the participant's credits
| 5 | | on the date of death, or 80% of the disability retirement | 6 | | annuity whichever is greater.
| 7 | | (d) If the minimum annuity provided under Section 15-146 | 8 | | exceeds the maximum
annuity provided under this Section, the | 9 | | minimum annuity shall be payable.
| 10 | | (e) If an annuitant has elected a reversionary annuity, the | 11 | | retirement
annuity referred to in this Section is that which | 12 | | would have been payable
had such election not been filed.
| 13 | | (f) If a survivors insurance beneficiary qualifies for a | 14 | | survivors or
widows annuity because of pension credits | 15 | | established by the participant
or annuitant in another system | 16 | | covered by Article 20, and the combined survivors
annuities | 17 | | exceed the highest survivors annuity which could be provided by
| 18 | | either system based upon the combined pension credits, the | 19 | | survivors annuity
payable by this system shall be reduced to | 20 | | that amount which, when added
to the survivors annuity payable | 21 | | by the other system, would equal this highest
survivors | 22 | | annuity. If the other system has a similar provision for | 23 | | adjustment
of the survivors annuity, the respective | 24 | | proportional survivors annuities
shall be reduced | 25 | | proportionately according to the ratio which the amount
of each | 26 | | proportional survivors annuity bears to the aggregate of all |
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| 1 | | proportional
survivors annuities. If a survivors annuity is | 2 | | payable by another system
covered by Article 20, and the | 3 | | survivor elects to waive the survivors annuity
and accept a | 4 | | lump sum payment or death benefit in lieu of the survivors
| 5 | | annuity, this system shall, for the purpose of adjusting the | 6 | | survivors annuity
under this subsection, assume that the | 7 | | survivor was entitled to a survivors
annuity which, in | 8 | | accordance with actuarial tables of this system, is the
| 9 | | actuarial equivalent of the amount of the lump sum payment or | 10 | | death benefit.
| 11 | | (g) The total monthly survivors annuity payable to the | 12 | | beneficiaries of
any annuitant who terminated employment | 13 | | before July 14, 1959 and whose death
occurs after September 16, | 14 | | 1977 shall not exceed $200.
| 15 | | (h) Whenever a reduction in the survivors annuity is made | 16 | | as
authorized above, the survivors annuity to each dependent | 17 | | parent shall be
proportionately reduced or eliminated, and if | 18 | | further reduction is
necessary, the survivors annuity payable | 19 | | to every other person shall be
proportionately decreased.
| 20 | | (i) This Section applies to the survivors insurance | 21 | | benefits provided to the eligible survivors of a Tier 1 member. | 22 | | (Source: P.A. 91-887, eff. 7-6-00.)
| 23 | | (40 ILCS 5/15-155) (from Ch. 108 1/2, par. 15-155)
| 24 | | Sec. 15-155. Employer contributions.
| 25 | | (a) The State of Illinois shall make contributions by |
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| 1 | | appropriations of
amounts which, together with the other | 2 | | employer contributions from trust,
federal, and other funds, | 3 | | employee contributions, income from investments,
and other | 4 | | income of this System, will be sufficient to meet the cost of
| 5 | | maintaining and administering the System on a 90% funded basis | 6 | | in accordance
with actuarial recommendations.
| 7 | | The Board shall determine the amount of State contributions | 8 | | required for
each fiscal year on the basis of the actuarial | 9 | | tables and other assumptions
adopted by the Board and the | 10 | | recommendations of the actuary, using the formula
in subsection | 11 | | (a-1).
| 12 | | (a-1) For State fiscal years 2012 through 2045, the minimum | 13 | | contribution
to the System to be made by the State for each | 14 | | fiscal year shall be an amount
determined by the System to be | 15 | | sufficient to bring the total assets of the
System up to 90% of | 16 | | the total actuarial liabilities of the System by the end of
| 17 | | State fiscal year 2045. In making these determinations, the | 18 | | required State
contribution shall be calculated each year as a | 19 | | level percentage of payroll
over the years remaining to and | 20 | | including fiscal year 2045 and shall be
determined under the | 21 | | projected unit credit actuarial cost method.
| 22 | | For State fiscal years 1996 through 2005, the State | 23 | | contribution to
the System, as a percentage of the applicable | 24 | | employee payroll, shall be
increased in equal annual increments | 25 | | so that by State fiscal year 2011, the
State is contributing at | 26 | | the rate required under this Section.
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| 1 | | Notwithstanding any other provision of this Article, the | 2 | | total required State
contribution for State fiscal year 2006 is | 3 | | $166,641,900.
| 4 | | Notwithstanding any other provision of this Article, the | 5 | | total required State
contribution for State fiscal year 2007 is | 6 | | $252,064,100.
| 7 | | For each of State fiscal years 2008 through 2009, the State | 8 | | contribution to
the System, as a percentage of the applicable | 9 | | employee payroll, shall be
increased in equal annual increments | 10 | | from the required State contribution for State fiscal year | 11 | | 2007, so that by State fiscal year 2011, the
State is | 12 | | contributing at the rate otherwise required under this Section.
| 13 | | Notwithstanding any other provision of this Article, the | 14 | | total required State contribution for State fiscal year 2010 is | 15 | | $702,514,000 and shall be made from the State Pensions Fund and | 16 | | proceeds of bonds sold in fiscal year 2010 pursuant to Section | 17 | | 7.2 of the General Obligation Bond Act, less (i) the pro rata | 18 | | share of bond sale expenses determined by the System's share of | 19 | | total bond proceeds, (ii) any amounts received from the General | 20 | | Revenue Fund in fiscal year 2010, (iii) any reduction in bond | 21 | | proceeds due to the issuance of discounted bonds, if | 22 | | applicable. | 23 | | Notwithstanding any other provision of this Article, the
| 24 | | total required State contribution for State fiscal year 2011 is
| 25 | | the amount recertified by the System on or before April 1, 2011 | 26 | | pursuant to Section 15-165 and shall be made from the State |
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| 1 | | Pensions Fund and
proceeds of bonds sold in fiscal year 2011 | 2 | | pursuant to Section
7.2 of the General Obligation Bond Act, | 3 | | less (i) the pro rata
share of bond sale expenses determined by | 4 | | the System's share of
total bond proceeds, (ii) any amounts | 5 | | received from the General
Revenue Fund in fiscal year 2011, and | 6 | | (iii) any reduction in bond
proceeds due to the issuance of | 7 | | discounted bonds, if
applicable. | 8 | | Beginning in State fiscal year 2046, the minimum State | 9 | | contribution for
each fiscal year shall be the amount needed to | 10 | | maintain the total assets of
the System at 90% of the total | 11 | | actuarial liabilities of the System.
| 12 | | Amounts received by the System pursuant to Section 25 of | 13 | | the Budget Stabilization Act or Section 8.12 of the State | 14 | | Finance Act in any fiscal year do not reduce and do not | 15 | | constitute payment of any portion of the minimum State | 16 | | contribution required under this Article in that fiscal year. | 17 | | Such amounts shall not reduce, and shall not be included in the | 18 | | calculation of, the required State contributions under this | 19 | | Article in any future year until the System has reached a | 20 | | funding ratio of at least 90%. A reference in this Article to | 21 | | the "required State contribution" or any substantially similar | 22 | | term does not include or apply to any amounts payable to the | 23 | | System under Section 25 of the Budget Stabilization Act. | 24 | | Notwithstanding any other provision of this Section, the | 25 | | required State
contribution for State fiscal year 2005 and for | 26 | | fiscal year 2008 and each fiscal year thereafter, as
calculated |
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| 1 | | under this Section and
certified under Section 15-165, shall | 2 | | not exceed an amount equal to (i) the
amount of the required | 3 | | State contribution that would have been calculated under
this | 4 | | Section for that fiscal year if the System had not received any | 5 | | payments
under subsection (d) of Section 7.2 of the General | 6 | | Obligation Bond Act, minus
(ii) the portion of the State's | 7 | | total debt service payments for that fiscal
year on the bonds | 8 | | issued in fiscal year 2003 for the purposes of that Section | 9 | | 7.2, as determined
and certified by the Comptroller, that is | 10 | | the same as the System's portion of
the total moneys | 11 | | distributed under subsection (d) of Section 7.2 of the General
| 12 | | Obligation Bond Act. In determining this maximum for State | 13 | | fiscal years 2008 through 2010, however, the amount referred to | 14 | | in item (i) shall be increased, as a percentage of the | 15 | | applicable employee payroll, in equal increments calculated | 16 | | from the sum of the required State contribution for State | 17 | | fiscal year 2007 plus the applicable portion of the State's | 18 | | total debt service payments for fiscal year 2007 on the bonds | 19 | | issued in fiscal year 2003 for the purposes of Section 7.2 of | 20 | | the General
Obligation Bond Act, so that, by State fiscal year | 21 | | 2011, the
State is contributing at the rate otherwise required | 22 | | under this Section.
| 23 | | (b) If an employee is paid from trust or federal funds, the | 24 | | employer
shall pay to the Board contributions from those funds | 25 | | which are
sufficient to cover the accruing normal costs on | 26 | | behalf of the employee.
However, universities having employees |
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| 1 | | who are compensated out of local
auxiliary funds, income funds, | 2 | | or service enterprise funds are not required
to pay such | 3 | | contributions on behalf of those employees. The local auxiliary
| 4 | | funds, income funds, and service enterprise funds of | 5 | | universities shall not be
considered trust funds for the | 6 | | purpose of this Article, but funds of alumni
associations, | 7 | | foundations, and athletic associations which are affiliated | 8 | | with
the universities included as employers under this Article | 9 | | and other employers
which do not receive State appropriations | 10 | | are considered to be trust funds for
the purpose of this | 11 | | Article.
| 12 | | (b-1) The City of Urbana and the City of Champaign shall | 13 | | each make
employer contributions to this System for their | 14 | | respective firefighter
employees who participate in this | 15 | | System pursuant to subsection (h) of Section
15-107. The rate | 16 | | of contributions to be made by those municipalities shall
be | 17 | | determined annually by the Board on the basis of the actuarial | 18 | | assumptions
adopted by the Board and the recommendations of the | 19 | | actuary, and shall be
expressed as a percentage of salary for | 20 | | each such employee. The Board shall
certify the rate to the | 21 | | affected municipalities as soon as may be practical.
The | 22 | | employer contributions required under this subsection shall be | 23 | | remitted by
the municipality to the System at the same time and | 24 | | in the same manner as
employee contributions.
| 25 | | (c) Through State fiscal year 1995: The total employer | 26 | | contribution shall
be apportioned among the various funds of |
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| 1 | | the State and other employers,
whether trust, federal, or other | 2 | | funds, in accordance with actuarial procedures
approved by the | 3 | | Board. State of Illinois contributions for employers receiving
| 4 | | State appropriations for personal services shall be payable | 5 | | from appropriations
made to the employers or to the System. The | 6 | | contributions for Class I
community colleges covering earnings | 7 | | other than those paid from trust and
federal funds, shall be | 8 | | payable solely from appropriations to the Illinois
Community | 9 | | College Board or the System for employer contributions.
| 10 | | (d) Beginning in State fiscal year 1996, the required State | 11 | | contributions
to the System shall be appropriated directly to | 12 | | the System and shall be payable
through vouchers issued in | 13 | | accordance with subsection (c) of Section 15-165, except as | 14 | | provided in subsection (g).
| 15 | | (e) The State Comptroller shall draw warrants payable to | 16 | | the System upon
proper certification by the System or by the | 17 | | employer in accordance with the
appropriation laws and this | 18 | | Code.
| 19 | | (f) Normal costs under this Section means liability for
| 20 | | pensions and other benefits which accrues to the System because | 21 | | of the
credits earned for service rendered by the participants | 22 | | during the
fiscal year and expenses of administering the | 23 | | System, but shall not
include the principal of or any | 24 | | redemption premium or interest on any bonds
issued by the Board | 25 | | or any expenses incurred or deposits required in
connection | 26 | | therewith.
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| 1 | | (g) If the amount of a participant's earnings for any | 2 | | academic year used to determine the final rate of earnings, | 3 | | determined on a full-time equivalent basis, exceeds the amount | 4 | | of his or her earnings with the same employer for the previous | 5 | | academic year, determined on a full-time equivalent basis, by | 6 | | more than 6%, the participant's employer shall pay to the | 7 | | System, in addition to all other payments required under this | 8 | | Section and in accordance with guidelines established by the | 9 | | System, the present value of the increase in benefits resulting | 10 | | from the portion of the increase in earnings that is in excess | 11 | | of 6%. This present value shall be computed by the System on | 12 | | the basis of the actuarial assumptions and tables used in the | 13 | | most recent actuarial valuation of the System that is available | 14 | | at the time of the computation. The System may require the | 15 | | employer to provide any pertinent information or | 16 | | documentation. | 17 | | Whenever it determines that a payment is or may be required | 18 | | under this subsection (g), the System shall calculate the | 19 | | amount of the payment and bill the employer for that amount. | 20 | | The bill shall specify the calculations used to determine the | 21 | | amount due. If the employer disputes the amount of the bill, it | 22 | | may, within 30 days after receipt of the bill, apply to the | 23 | | System in writing for a recalculation. The application must | 24 | | specify in detail the grounds of the dispute and, if the | 25 | | employer asserts that the calculation is subject to subsection | 26 | | (h) or (i) of this Section, must include an affidavit setting |
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| 1 | | forth and attesting to all facts within the employer's | 2 | | knowledge that are pertinent to the applicability of subsection | 3 | | (h) or (i). Upon receiving a timely application for | 4 | | recalculation, the System shall review the application and, if | 5 | | appropriate, recalculate the amount due.
| 6 | | The employer contributions required under this subsection | 7 | | (g) (f) may be paid in the form of a lump sum within 90 days | 8 | | after receipt of the bill. If the employer contributions are | 9 | | not paid within 90 days after receipt of the bill, then | 10 | | interest will be charged at a rate equal to the System's annual | 11 | | actuarially assumed rate of return on investment compounded | 12 | | annually from the 91st day after receipt of the bill. Payments | 13 | | must be concluded within 3 years after the employer's receipt | 14 | | of the bill. | 15 | | (h) This subsection (h) applies only to payments made or | 16 | | salary increases given on or after June 1, 2005 but before July | 17 | | 1, 2011. The changes made by Public Act 94-1057 shall not | 18 | | require the System to refund any payments received before July | 19 | | 31, 2006 (the effective date of Public Act 94-1057). | 20 | | When assessing payment for any amount due under subsection | 21 | | (g), the System shall exclude earnings increases paid to | 22 | | participants under contracts or collective bargaining | 23 | | agreements entered into, amended, or renewed before June 1, | 24 | | 2005.
| 25 | | When assessing payment for any amount due under subsection | 26 | | (g), the System shall exclude earnings increases paid to a |
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| 1 | | participant at a time when the participant is 10 or more years | 2 | | from retirement eligibility under Section 15-135.
| 3 | | When assessing payment for any amount due under subsection | 4 | | (g), the System shall exclude earnings increases resulting from | 5 | | overload work, including a contract for summer teaching, or | 6 | | overtime when the employer has certified to the System, and the | 7 | | System has approved the certification, that: (i) in the case of | 8 | | overloads (A) the overload work is for the sole purpose of | 9 | | academic instruction in excess of the standard number of | 10 | | instruction hours for a full-time employee occurring during the | 11 | | academic year that the overload is paid and (B) the earnings | 12 | | increases are equal to or less than the rate of pay for | 13 | | academic instruction computed using the participant's current | 14 | | salary rate and work schedule; and (ii) in the case of | 15 | | overtime, the overtime was necessary for the educational | 16 | | mission. | 17 | | When assessing payment for any amount due under subsection | 18 | | (g), the System shall exclude any earnings increase resulting | 19 | | from (i) a promotion for which the employee moves from one | 20 | | classification to a higher classification under the State | 21 | | Universities Civil Service System, (ii) a promotion in academic | 22 | | rank for a tenured or tenure-track faculty position, or (iii) a | 23 | | promotion that the Illinois Community College Board has | 24 | | recommended in accordance with subsection (k) of this Section. | 25 | | These earnings increases shall be excluded only if the | 26 | | promotion is to a position that has existed and been filled by |
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| 1 | | a member for no less than one complete academic year and the | 2 | | earnings increase as a result of the promotion is an increase | 3 | | that results in an amount no greater than the average salary | 4 | | paid for other similar positions. | 5 | | (i) When assessing payment for any amount due under | 6 | | subsection (g), the System shall exclude any salary increase | 7 | | described in subsection (h) of this Section given on or after | 8 | | July 1, 2011 but before July 1, 2014 under a contract or | 9 | | collective bargaining agreement entered into, amended, or | 10 | | renewed on or after June 1, 2005 but before July 1, 2011. | 11 | | Notwithstanding any other provision of this Section, any | 12 | | payments made or salary increases given after June 30, 2014 | 13 | | shall be used in assessing payment for any amount due under | 14 | | subsection (g) of this Section.
| 15 | | (j) The System shall prepare a report and file copies of | 16 | | the report with the Governor and the General Assembly by | 17 | | January 1, 2007 that contains all of the following information: | 18 | | (1) The number of recalculations required by the | 19 | | changes made to this Section by Public Act 94-1057 for each | 20 | | employer. | 21 | | (2) The dollar amount by which each employer's | 22 | | contribution to the System was changed due to | 23 | | recalculations required by Public Act 94-1057. | 24 | | (3) The total amount the System received from each | 25 | | employer as a result of the changes made to this Section by | 26 | | Public Act 94-4. |
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| 1 | | (4) The increase in the required State contribution | 2 | | resulting from the changes made to this Section by Public | 3 | | Act 94-1057. | 4 | | (k) The Illinois Community College Board shall adopt rules | 5 | | for recommending lists of promotional positions submitted to | 6 | | the Board by community colleges and for reviewing the | 7 | | promotional lists on an annual basis. When recommending | 8 | | promotional lists, the Board shall consider the similarity of | 9 | | the positions submitted to those positions recognized for State | 10 | | universities by the State Universities Civil Service System. | 11 | | The Illinois Community College Board shall file a copy of its | 12 | | findings with the System. The System shall consider the | 13 | | findings of the Illinois Community College Board when making | 14 | | determinations under this Section. The System shall not exclude | 15 | | any earnings increases resulting from a promotion when the | 16 | | promotion was not submitted by a community college. Nothing in | 17 | | this subsection (k) shall require any community college to | 18 | | submit any information to the Community College Board.
| 19 | | (l) For purposes of determining the required State | 20 | | contribution to the System, the value of the System's assets | 21 | | shall be equal to the actuarial value of the System's assets, | 22 | | which shall be calculated as follows: | 23 | | As of June 30, 2008, the actuarial value of the System's | 24 | | assets shall be equal to the market value of the assets as of | 25 | | that date. In determining the actuarial value of the System's | 26 | | assets for fiscal years after June 30, 2008, any actuarial |
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| 1 | | gains or losses from investment return incurred in a fiscal | 2 | | year shall be recognized in equal annual amounts over the | 3 | | 5-year period following that fiscal year. | 4 | | (m) For purposes of determining the required State | 5 | | contribution to the system for a particular year, the actuarial | 6 | | value of assets shall be assumed to earn a rate of return equal | 7 | | to the system's actuarially assumed rate of return. | 8 | | (Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11; | 9 | | 96-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-813, eff. | 10 | | 7-13-12; revised 10-17-12.)
| 11 | | (40 ILCS 5/15-157) (from Ch. 108 1/2, par. 15-157)
| 12 | | Sec. 15-157. Employee Contributions.
| 13 | | (a) Each participating employee
shall make contributions | 14 | | towards the retirement
benefits payable under the retirement | 15 | | program applicable to the
employee from each payment
of | 16 | | earnings applicable to employment under this system on and | 17 | | after the
date of becoming a participant as follows: Prior to | 18 | | September 1, 1949,
3 1/2% of earnings; from September 1, 1949 | 19 | | to August 31, 1955, 5%; from
September 1, 1955 to August 31, | 20 | | 1969, 6%; from September 1, 1969, 6 1/2%.
These contributions | 21 | | are to be considered as normal contributions for purposes
of | 22 | | this Article.
| 23 | | Each participant who is a police officer or firefighter | 24 | | shall make normal
contributions of 8% of each payment of | 25 | | earnings applicable to employment as a
police officer or |
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| 1 | | firefighter under this system on or after September 1, 1981,
| 2 | | unless he or she files with the board within 60 days after the | 3 | | effective date
of this amendatory Act of 1991 or 60 days after | 4 | | the board receives notice that
he or she is employed as a | 5 | | police officer or firefighter, whichever is later,
a written | 6 | | notice waiving the retirement formula provided by Rule 4 of | 7 | | Section
15-136. This waiver shall be irrevocable. If a | 8 | | participant had met the
conditions set forth in Section | 9 | | 15-132.1 prior to the effective date of this
amendatory Act of | 10 | | 1991 but failed to make the additional normal contributions
| 11 | | required by this paragraph, he or she may elect to pay the | 12 | | additional
contributions plus compound interest at the | 13 | | effective rate. If such payment
is received by the board, the | 14 | | service shall be considered as police officer
service in | 15 | | calculating the retirement annuity under Rule 4 of Section | 16 | | 15-136.
While performing service described in clause (i) or | 17 | | (ii) of Rule 4 of Section
15-136, a participating employee | 18 | | shall be deemed to be employed as a
firefighter for the purpose | 19 | | of determining the rate of employee contributions
under this | 20 | | Section.
| 21 | | (b) Starting September 1, 1969, each participating | 22 | | employee shall make
additional contributions of 1/2 of 1% of | 23 | | earnings to finance a portion
of the cost of the annual | 24 | | increases in retirement annuity provided under
Section 15-136, | 25 | | except that with respect to participants in the
self-managed | 26 | | plan this additional contribution shall be used to finance the
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| 1 | | benefits obtained under that retirement program.
| 2 | | (c) In addition to the amounts described in subsections (a) | 3 | | and (b) of this
Section, each participating employee shall make | 4 | | contributions of 1% of earnings
applicable under this system on | 5 | | and after August 1, 1959. The contributions
made under this | 6 | | subsection (c) shall be considered as survivor's insurance
| 7 | | contributions for purposes of this Article if the employee is | 8 | | covered under
the traditional benefit package, and such | 9 | | contributions shall be considered
as additional contributions | 10 | | for purposes of this Article if the employee is
participating | 11 | | in the self-managed plan or has elected to participate in the
| 12 | | portable benefit package and has completed the applicable | 13 | | one-year waiting
period. Contributions in excess of $80 during | 14 | | any fiscal year beginning before
August 31, 1969 and in excess | 15 | | of $120 during any fiscal year thereafter until
September 1, | 16 | | 1971 shall be considered as additional contributions for | 17 | | purposes
of this Article.
| 18 | | (d) If the board by board rule so permits and subject to | 19 | | such conditions
and limitations as may be specified in its | 20 | | rules, a participant may make
other additional contributions of | 21 | | such percentage of earnings or amounts as
the participant shall | 22 | | elect in a written notice thereof received by the board.
| 23 | | (e) That fraction of a participant's total accumulated | 24 | | normal
contributions, the numerator of which is equal to the | 25 | | number of years of
service in excess of that which is required | 26 | | to qualify for the maximum
retirement annuity, and the |
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| 1 | | denominator of which is equal to the total
service of the | 2 | | participant, shall be considered as accumulated additional
| 3 | | contributions. The determination of the applicable maximum | 4 | | annuity and
the adjustment in contributions required by this | 5 | | provision shall be made
as of the date of the participant's | 6 | | retirement.
| 7 | | (f) Notwithstanding the foregoing, a participating | 8 | | employee shall not
be required to make contributions under this | 9 | | Section after the date upon
which continuance of such | 10 | | contributions would otherwise cause his or her
retirement | 11 | | annuity to exceed the maximum retirement annuity as specified | 12 | | in
clause (1) of subsection (c) of Section 15-136.
| 13 | | (g) A participating employee may make contributions for the | 14 | | purchase of
service credit under this Article.
| 15 | | (h) A Tier 2 member shall not make contributions on | 16 | | earnings that exceed the limitation as prescribed under | 17 | | subsection (b) of Section 15-111 of this Article. | 18 | | (Source: P.A. 90-32, eff. 6-27-97; 90-65, eff. 7-7-97; 90-448, | 19 | | eff. 8-16-97;
90-511, eff. 8-22-97; 90-576, eff. 3-31-98; | 20 | | 90-655, eff. 7-30-98; 90-766, eff.
8-14-98.)
| 21 | | (40 ILCS 5/15-158.2)
| 22 | | Sec. 15-158.2. Self-managed plan.
| 23 | | (a) Purpose. The General Assembly finds that it is | 24 | | important for colleges
and universities to be able to attract | 25 | | and retain the most qualified employees
and that in order to |
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| 1 | | attract and retain these employees, colleges and
universities | 2 | | should have the flexibility to provide a defined contribution
| 3 | | plan as an alternative for eligible employees who elect not to | 4 | | participate
in a defined benefit retirement program provided | 5 | | under this Article.
Accordingly, the State Universities | 6 | | Retirement System is hereby authorized to
establish and | 7 | | administer a self-managed plan, which shall offer | 8 | | participating
employees the opportunity to accumulate assets | 9 | | for retirement through a
combination of employee and employer | 10 | | contributions that may be invested in
mutual funds, collective | 11 | | investment funds, or other investment products and
used to | 12 | | purchase annuity contracts, either fixed or variable or a | 13 | | combination
thereof. The plan must be qualified under the | 14 | | Internal Revenue Code of 1986.
| 15 | | (b) Adoption by employers. Each employer subject to this | 16 | | Article may
elect to adopt the self-managed plan established | 17 | | under this Section; this
election is irrevocable. An employer's | 18 | | election to adopt the self-managed
plan makes available to the | 19 | | eligible employees of that employer the elections
described in | 20 | | Section 15-134.5.
| 21 | | The State Universities Retirement System shall be the plan | 22 | | sponsor for the
self-managed plan and shall prepare a plan | 23 | | document and prescribe such rules
and procedures as are | 24 | | considered necessary or desirable for the administration
of the | 25 | | self-managed plan. Consistent with its fiduciary duty to the
| 26 | | participants and beneficiaries of the self-managed plan, the |
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| 1 | | Board of Trustees
of the System may delegate aspects of plan | 2 | | administration as it sees fit to
companies authorized to do | 3 | | business in this State, to the employers, or to a
combination | 4 | | of both.
| 5 | | (c) Selection of service providers and funding vehicles. | 6 | | The System, in
consultation with the employers, shall solicit | 7 | | proposals to provide
administrative services and funding | 8 | | vehicles for the self-managed plan from
insurance and annuity | 9 | | companies and mutual fund companies, banks, trust
companies, or | 10 | | other financial institutions authorized to do business in this
| 11 | | State. In reviewing the proposals received and approving and | 12 | | contracting with
no fewer than 2 and no more than 7 companies, | 13 | | the Board of Trustees of the System shall
consider, among other | 14 | | things, the following criteria:
| 15 | | (1) the nature and extent of the benefits that would be | 16 | | provided
to the participants;
| 17 | | (2) the reasonableness of the benefits in relation to | 18 | | the premium
charged;
| 19 | | (3) the suitability of the benefits to the needs and
| 20 | | interests of the participating employees and the employer;
| 21 | | (4) the ability of the company to provide benefits | 22 | | under the contract and
the financial stability of the | 23 | | company; and
| 24 | | (5) the efficacy of the contract in the recruitment and | 25 | | retention of
employees.
| 26 | | The System, in consultation with the employers, shall |
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| 1 | | periodically review
each approved company. A company may | 2 | | continue to provide administrative
services and funding | 3 | | vehicles for the self-managed plan only so long as
it continues | 4 | | to be an approved company under contract with the Board.
| 5 | | (d) Employee Direction. Employees who are participating in | 6 | | the program
must be allowed to direct the transfer of their | 7 | | account balances among the
various investment options offered, | 8 | | subject to applicable contractual
provisions.
The participant | 9 | | shall not be deemed a fiduciary by reason of providing such
| 10 | | investment direction. A person who is a fiduciary shall not be | 11 | | liable for any
loss resulting from such investment direction | 12 | | and shall not be deemed to have
breached any fiduciary duty by | 13 | | acting in accordance with that direction.
Neither the System | 14 | | nor the employer guarantees any of the investments in the
| 15 | | employee's account balances.
| 16 | | (e) Participation. An employee eligible to participate in | 17 | | the
self-managed plan must make a written election in | 18 | | accordance with the
provisions of Section 15-134.5 and the | 19 | | procedures established by the System.
Participation in the | 20 | | self-managed plan by an electing employee shall begin
on the | 21 | | first day of the first pay period following the later of the | 22 | | date the
employee's election is filed with the System or the | 23 | | effective date as of
which the employee's employer begins to | 24 | | offer participation in the self-managed
plan. Employers may not | 25 | | make the self-managed plan available earlier than
January 1, | 26 | | 1998. An employee's participation in any other retirement |
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| 1 | | program
administered by the System under this Article shall | 2 | | terminate on the date that
participation in the self-managed | 3 | | plan begins.
| 4 | | An employee who has elected to participate in the | 5 | | self-managed plan under
this Section must continue | 6 | | participation while employed in an eligible
position, and may | 7 | | not participate in any other retirement program administered
by | 8 | | the System under this Article while employed by that employer | 9 | | or any other
employer that has adopted the self-managed plan, | 10 | | unless the self-managed plan
is terminated in accordance with | 11 | | subsection (i).
| 12 | | Notwithstanding any other provision of this Article, a Tier | 13 | | 2 member shall have the option to enroll in the self-managed | 14 | | plan. | 15 | | Participation in the self-managed plan under this Section | 16 | | shall constitute
membership in the State Universities | 17 | | Retirement System.
| 18 | | A participant under this Section shall be entitled to the | 19 | | benefits of
Article 20 of this Code.
| 20 | | (f) Establishment of Initial Account Balance. If at the | 21 | | time an employee
elects to participate in the self-managed plan | 22 | | he or she has rights and credits
in the System due to previous | 23 | | participation in the traditional benefit package,
the System | 24 | | shall establish for the employee an opening account balance in | 25 | | the
self-managed plan, equal to the amount of contribution | 26 | | refund that the employee
would be eligible to receive under |
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| 1 | | Section 15-154 if the employee terminated
employment on that | 2 | | date and elected a refund of contributions, except that this
| 3 | | hypothetical refund shall include interest at the effective | 4 | | rate for the
respective years. The System shall transfer assets | 5 | | from the defined benefit
retirement program to the self-managed | 6 | | plan, as a tax free transfer in
accordance with Internal | 7 | | Revenue Service guidelines, for purposes of funding
the | 8 | | employee's opening account balance.
| 9 | | (g) No Duplication of Service Credit. Notwithstanding any | 10 | | other provision
of this Article, an employee may not purchase | 11 | | or receive service or service
credit applicable to any other | 12 | | retirement program administered by the System
under this | 13 | | Article for any period during which the employee was a | 14 | | participant
in the self-managed plan established under this | 15 | | Section.
| 16 | | (h) Contributions. The self-managed plan shall be funded by | 17 | | contributions
from employees participating in the self-managed | 18 | | plan and employer
contributions as provided in this Section.
| 19 | | The contribution rate for employees participating in the | 20 | | self-managed plan
under this Section shall be equal to the | 21 | | employee contribution rate for other
participants in the | 22 | | System, as provided in Section 15-157. This required
| 23 | | contribution shall be made as an "employer pick-up" under | 24 | | Section 414(h) of the
Internal Revenue Code of 1986 or any | 25 | | successor Section thereof. Any employee
participating in the | 26 | | System's traditional benefit package prior to his or her
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| 1 | | election to participate in the self-managed plan shall continue | 2 | | to have the
employer pick up the contributions required under | 3 | | Section 15-157. However, the
amounts picked up after the | 4 | | election of the self-managed plan shall be remitted
to and | 5 | | treated as assets of the self-managed plan. In no event shall | 6 | | an
employee have an option of receiving these amounts in cash. | 7 | | Employees may make
additional contributions to the
| 8 | | self-managed plan in accordance with procedures prescribed by | 9 | | the System, to
the extent permitted under rules prescribed by | 10 | | the System.
| 11 | | The program shall provide for employer contributions to be | 12 | | credited to each
self-managed plan participant at a rate of | 13 | | 7.6%
of the participating employee's salary, less the amount | 14 | | used by
the System to provide disability benefits for the | 15 | | employee.
The amounts so credited
shall be paid into the | 16 | | participant's self-managed plan accounts in a manner
to be | 17 | | prescribed by the System.
| 18 | | An amount of employer contribution, not exceeding 1% of the | 19 | | participating
employee's salary, shall be used for the purpose | 20 | | of providing the disability
benefits of the System to the | 21 | | employee. Prior to the beginning of each plan
year under the | 22 | | self-managed plan, the Board of Trustees shall determine, as a
| 23 | | percentage of salary, the amount of employer contributions to | 24 | | be allocated
during that plan year for providing disability | 25 | | benefits for employees in the
self-managed plan.
| 26 | | The State of Illinois shall make contributions by |
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| 1 | | appropriations to the
System of the employer contributions | 2 | | required for employees who participate in
the self-managed plan | 3 | | under this Section.
The amount required shall
be certified by | 4 | | the Board of Trustees of the System and paid by the State in
| 5 | | accordance with Section 15-165. The System shall not be | 6 | | obligated to remit the
required employer contributions to any | 7 | | of the insurance and annuity
companies, mutual fund
companies, | 8 | | banks, trust companies, financial institutions, or other | 9 | | sponsors
of any of the funding vehicles offered under the | 10 | | self-managed plan
until it has received the required employer | 11 | | contributions from the State. In
the event of a deficiency in | 12 | | the amount of State contributions, the System
shall implement | 13 | | those procedures described in subsection (c) of Section 15-165
| 14 | | to obtain the required funding from the General Revenue
Fund.
| 15 | | (i) Termination. The self-managed plan authorized under | 16 | | this
Section may be terminated by the System, subject to the | 17 | | terms
of any relevant
contracts, and the System shall have no | 18 | | obligation to
reestablish the self-managed plan under this | 19 | | Section. This Section does not
create a right
to continued | 20 | | participation in any self-managed plan set up by the System | 21 | | under
this Section. If the self-managed plan is terminated,
the | 22 | | participants shall have the right to participate in one of the | 23 | | other
retirement programs offered by the System and receive | 24 | | service credit in such
other retirement program for any years | 25 | | of employment following the termination.
| 26 | | (j) Vesting; Withdrawal; Return to Service. A participant |
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| 1 | | in the
self-managed plan becomes vested in the employer | 2 | | contributions credited to his
or her accounts in the | 3 | | self-managed plan on the earliest to occur of the
following: | 4 | | (1) completion of 5 years of service with an employer described | 5 | | in
Section 15-106; (2) the death of the participating employee | 6 | | while employed by
an employer described in Section 15-106, if | 7 | | the participant has completed at
least 1 1/2 years of service; | 8 | | or (3) the participant's election to retire and
apply the | 9 | | reciprocal provisions of Article 20 of this Code.
| 10 | | A participant in the self-managed plan who receives a | 11 | | distribution of his or
her vested amounts from the self-managed | 12 | | plan
while not yet eligible for retirement under this Article
| 13 | | (and Article 20, if applicable) shall forfeit all service | 14 | | credit
and accrued rights in the System; if subsequently | 15 | | re-employed, the participant
shall be considered a new
| 16 | | employee. If a former participant again becomes a participating | 17 | | employee (or
becomes employed by a participating system under | 18 | | Article 20 of this Code) and
continues as such for at least 2 | 19 | | years, all such rights, service credits, and
previous status as | 20 | | a participant shall be restored upon repayment of the amount
of | 21 | | the distribution, without interest.
| 22 | | (k) Benefit amounts. If an employee who is vested in | 23 | | employer
contributions terminates employment, the employee | 24 | | shall be entitled to a
benefit which is based on the
account | 25 | | values attributable to both employer and
employee | 26 | | contributions and any
investment return thereon.
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| 1 | | If an employee who is not vested in employer contributions | 2 | | terminates
employment, the employee shall be entitled to a | 3 | | benefit based solely on the
account values attributable to the | 4 | | employee's contributions and any investment
return thereon, | 5 | | and the employer contributions and any investment return
| 6 | | thereon shall be forfeited. Any employer contributions which | 7 | | are forfeited
shall be held in escrow by the
company investing | 8 | | those contributions and shall be used as directed by the
System | 9 | | for future allocations of employer contributions or for the | 10 | | restoration
of amounts previously forfeited by former | 11 | | participants who again become
participating employees.
| 12 | | (Source: P.A. 93-347, eff. 7-24-03.)
| 13 | | (40 ILCS 5/15-159) (from Ch. 108 1/2, par. 15-159)
| 14 | | Sec. 15-159. Board created. | 15 | | (a) A board of trustees constituted as provided in
this | 16 | | Section shall administer this System. The board shall be known | 17 | | as the
Board of Trustees of the State Universities Retirement | 18 | | System.
| 19 | | (b) (Blank). Until July 1, 1995, the Board of Trustees | 20 | | shall be constituted
as follows:
| 21 | | Two trustees shall be members of the Board of Trustees of | 22 | | the
University of Illinois, one shall be a member of
the Board | 23 | | of Trustees of Southern Illinois University, one shall be a | 24 | | member
of the Board of Trustees of Chicago State University, | 25 | | one shall be a member of
the Board of Trustees of Eastern |
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| 1 | | Illinois University, one shall be a member of
the Board of | 2 | | Trustees of Governors State University, one shall be a member | 3 | | of
the Board of Trustees of Illinois State University, one | 4 | | shall be a member of
the Board of Trustees of Northeastern | 5 | | Illinois University, one shall be a
member of the Board of | 6 | | Trustees of Northern Illinois University, one shall be a
member | 7 | | of the Board of Trustees of Western Illinois University, and | 8 | | one shall
be a member of the Illinois Community College Board, | 9 | | selected in each case by
their respective boards, and 2 shall
| 10 | | be participants of the system appointed by the Governor for a 6 | 11 | | year term with
the first appointment made pursuant to this | 12 | | amendatory Act of 1984 to be
effective September 1, 1985, and | 13 | | one shall be a participant appointed by the
Illinois Community | 14 | | College Board for a 6 year term, and one shall be a
participant | 15 | | appointed by the Board of Trustees of the University of | 16 | | Illinois
for a 6 year term, and one shall be a participant or | 17 | | annuitant of the system
who is a senior citizen age 60 or older | 18 | | appointed by the Governor for a 6 year
term with the first | 19 | | appointment to be effective September 1, 1985.
| 20 | | The terms of all trustees holding office under this | 21 | | subsection (b) on
June 30, 1995 shall terminate at the end of | 22 | | that day and the Board shall
thereafter be constituted as | 23 | | provided in subsection (c).
| 24 | | (c) (Blank). Beginning July 1, 1995, the Board of Trustees | 25 | | shall be
constituted as follows:
| 26 | | The Board shall consist of 9 trustees appointed by the |
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| 1 | | Governor. Two of the
trustees, designated at the time of | 2 | | appointment, shall be participants of the
System. Two of the | 3 | | trustees, designated at the time of appointment, shall be
| 4 | | annuitants of the System who are receiving retirement annuities | 5 | | under this
Article. The 5 remaining trustees may, but need not, | 6 | | be participants or
annuitants of the System.
| 7 | | The term of office of trustees appointed under this | 8 | | subsection (c)
shall be 6 years, beginning on July 1. However, | 9 | | of the initial trustees
appointed under this subsection (c), 3 | 10 | | shall be appointed for terms of 2 years,
3 shall be appointed | 11 | | for terms of 4 years, and 3 shall be appointed for terms
of 6 | 12 | | years, to be designated by the Governor at the time of | 13 | | appointment.
| 14 | | The terms of all trustees holding office under this | 15 | | subsection (c) on the effective date of this amendatory Act of | 16 | | the 96th General Assembly shall terminate on that effective | 17 | | date. The Governor shall make nominations for appointment under | 18 | | this Section within 60 days after the effective date of this | 19 | | amendatory Act of the 96th General Assembly. A trustee sitting | 20 | | on the board on the effective date of this amendatory Act of | 21 | | the 96th General Assembly may not hold over in office for more | 22 | | than 90 days after the effective date of this amendatory Act of | 23 | | the 96th General Assembly. Nothing in this Section shall | 24 | | prevent the Governor from making a temporary appointment or | 25 | | nominating a trustee holding office on the day before the | 26 | | effective date of this amendatory Act of the 96th General |
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| 1 | | Assembly. | 2 | | (d) Beginning on the 90th day after April 3, 2009 ( the | 3 | | effective date of Public Act 96-6) this amendatory Act of the | 4 | | 96th General Assembly , the Board of Trustees shall be | 5 | | constituted as follows: | 6 | | (1) The Chairperson of the Board of Higher Education, | 7 | | who shall act as chairperson of this Board. | 8 | | (2) Four trustees appointed by the Governor with the | 9 | | advice and consent of the Senate who may not be members of | 10 | | the system or hold an elective State office and who shall | 11 | | serve for a term of 6 years, except that the terms of the | 12 | | initial appointees under this subsection (d) shall be as | 13 | | follows: 2 for a term of 3 years and 2 for a term of 6 | 14 | | years. | 15 | | (3) Four active participants of the system to be | 16 | | elected from the contributing membership of the system by | 17 | | the
contributing members, no more than 2 of which may be | 18 | | from any of the University of Illinois campuses, who shall | 19 | | serve for a term of 6 years, except that the terms of the | 20 | | initial electees shall be as follows: 2 for a term of 3 | 21 | | years and 2 for a term of 6 years. | 22 | | (4) Two annuitants of
the system who have been | 23 | | annuitants for at least one full year, to be
elected from | 24 | | and by the annuitants of the system, no more than one of | 25 | | which may be from any of the University of Illinois | 26 | | campuses, who shall serve for a term of 6 years, except |
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| 1 | | that the terms of the initial electees shall be as follows: | 2 | | one for a term of 3 years and one for a term of 6 years. | 3 | | For the purposes of this Section, the Governor may make a | 4 | | nomination and the Senate may confirm the nominee in advance of | 5 | | the commencement of the nominee's term of office. | 6 | | (e) The 6 elected trustees shall be elected within 90 days | 7 | | after April 3, 2009 ( the effective date of Public Act 96-6) | 8 | | this amendatory Act of the 96th General Assembly for a term | 9 | | beginning on the 90th day after that the effective date of this | 10 | | amendatory Act . Trustees shall be elected thereafter as terms | 11 | | expire for a 6-year term beginning July 15 next following their | 12 | | election, and such election shall be held on May 1, or on May 2 | 13 | | when May 1 falls on a Sunday. The board may establish rules for | 14 | | the election of trustees to implement the provisions of Public | 15 | | Act 96-6 this amendatory Act of the 96th General Assembly and | 16 | | for future elections. Candidates for the participating trustee | 17 | | shall be nominated by petitions in writing, signed by not less | 18 | | than 400 participants with their addresses shown opposite their | 19 | | names. Candidates for the annuitant trustee shall be nominated | 20 | | by petitions in writing, signed by not less than 100 annuitants | 21 | | with their addresses shown opposite their names. If there is | 22 | | more than one qualified nominee for each elected trustee, then | 23 | | the board shall conduct a secret ballot election by mail for | 24 | | that trustee, in accordance with rules as established by the | 25 | | board. If there is only one qualified person nominated by | 26 | | petition for each elected trustee, then the election as |
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| 1 | | required by this Section shall not be conducted for that | 2 | | trustee and the board shall declare such nominee duly elected. | 3 | | A vacancy occurring in the elective membership of the board | 4 | | shall be filled for the unexpired term by the elected trustees | 5 | | serving on the board for the remainder of the term. Nothing in | 6 | | this subsection shall preclude the adoption of rules providing | 7 | | for internet or phone balloting in addition, or as an | 8 | | alternative, to election by mail. | 9 | | (f) A vacancy in the appointed membership on the board of | 10 | | trustees caused by resignation,
death, expiration of term of | 11 | | office, or other reason shall be filled by a
qualified person | 12 | | appointed by the Governor for the remainder of the unexpired
| 13 | | term.
| 14 | | (g) Trustees (other than the trustees incumbent on June 30, | 15 | | 1995 or as provided in subsection (c) of this Section)
shall | 16 | | continue in office until their respective successors are | 17 | | appointed
and have qualified, except that a trustee appointed | 18 | | to one of the
participant positions shall be disqualified | 19 | | immediately upon the termination of
his or her status as a | 20 | | participant and a trustee appointed to one of the
annuitant | 21 | | positions shall be disqualified immediately upon the | 22 | | termination of
his or her status as an annuitant receiving a | 23 | | retirement annuity.
| 24 | | (h) Each trustee must take an oath of office
before a | 25 | | notary public of this State and shall qualify as a trustee upon | 26 | | the
presentation to the board of a certified copy of the oath. |
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| 1 | | The oath must state
that the person will diligently and | 2 | | honestly administer the affairs of the
retirement system, and | 3 | | will not knowingly violate or willfully wilfully permit to be
| 4 | | violated any provisions of this Article.
| 5 | | Each trustee shall serve without compensation but shall be | 6 | | reimbursed for
expenses necessarily incurred in attending | 7 | | board meetings and carrying out his
or her duties as a trustee | 8 | | or officer of the system.
| 9 | | (i) This amendatory Act of 1995 is intended to supersede | 10 | | the changes made
to this Section by Public Act 89-4.
| 11 | | (Source: P.A. 96-6, eff. 4-3-09; 96-1000, eff. 7-2-10.)
| 12 | | (40 ILCS 5/15-162) (from Ch. 108 1/2, par. 15-162)
| 13 | | Sec. 15-162. To hold meetings.
| 14 | | To hold regular meetings at least quarterly in each year | 15 | | and special
meetings at such times as the chairperson president | 16 | | or a majority of the board deem
necessary.
| 17 | | (Source: Laws 1963, p. 161.)
| 18 | | (40 ILCS 5/15-165)
(from Ch. 108 1/2, par. 15-165)
| 19 | | Sec. 15-165. To certify amounts and submit vouchers.
| 20 | | (a) The Board shall certify to the Governor on or before | 21 | | November 15 of each
year until November 15, 2011 the | 22 | | appropriation required from State funds for the purposes of | 23 | | this
System for the following fiscal year. The certification | 24 | | under this subsection (a) shall include a copy
of the actuarial |
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| 1 | | recommendations upon which it is based and shall specifically | 2 | | identify the System's projected State normal cost for that | 3 | | fiscal year and the projected State cost for the self-managed | 4 | | plan for that fiscal year.
| 5 | | On or before May 1, 2004, the Board shall recalculate and | 6 | | recertify to
the Governor the amount of the required State | 7 | | contribution to the System for
State fiscal year 2005, taking | 8 | | into account the amounts appropriated to and
received by the | 9 | | System under subsection (d) of Section 7.2 of the General
| 10 | | Obligation Bond Act.
| 11 | | On or before July 1, 2005, the Board shall recalculate and | 12 | | recertify
to the Governor the amount of the required State
| 13 | | contribution to the System for State fiscal year 2006, taking | 14 | | into account the changes in required State contributions made | 15 | | by this amendatory Act of the 94th General Assembly.
| 16 | | On or before April 1, 2011, the Board shall recalculate and | 17 | | recertify to the Governor the amount of the required State | 18 | | contribution to the System for State fiscal year 2011, applying | 19 | | the changes made by Public Act 96-889 to the System's assets | 20 | | and liabilities as of June 30, 2009 as though Public Act 96-889 | 21 | | was approved on that date. | 22 | | (a-5) On or before November 1 of each year, beginning | 23 | | November 1, 2012, the Board shall submit to the State Actuary, | 24 | | the Governor, and the General Assembly a proposed certification | 25 | | of the amount of the required State contribution to the System | 26 | | for the next fiscal year, along with all of the actuarial |
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| 1 | | assumptions, calculations, and data upon which that proposed | 2 | | certification is based. On or before January 1 of each year, | 3 | | beginning January 1, 2013, the State Actuary shall issue a | 4 | | preliminary report concerning the proposed certification and | 5 | | identifying, if necessary, recommended changes in actuarial | 6 | | assumptions that the Board must consider before finalizing its | 7 | | certification of the required State contributions. On or before | 8 | | January 15, 2013 and each January 15 thereafter, the Board | 9 | | shall certify to the Governor and the General Assembly the | 10 | | amount of the required State contribution for the next fiscal | 11 | | year. The Board's certification must note, in a written | 12 | | response to the State Actuary, any deviations from the State | 13 | | Actuary's recommended changes, the reason or reasons for not | 14 | | following the State Actuary's recommended changes, and the | 15 | | fiscal impact of not following the State Actuary's recommended | 16 | | changes on the required State contribution. | 17 | | (b) The Board shall certify to the State Comptroller or | 18 | | employer, as the
case may be, from time to time, by its | 19 | | chairperson president and secretary, with its seal
attached, | 20 | | the amounts payable to the System from the various funds.
| 21 | | (c) Beginning in State fiscal year 1996, on or as soon as | 22 | | possible after the
15th day of each month the Board shall | 23 | | submit vouchers for payment of State
contributions to the | 24 | | System, in a total monthly amount of one-twelfth of the
| 25 | | required annual State contribution certified under subsection | 26 | | (a).
From the effective date of this amendatory Act
of the 93rd |
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| 1 | | General Assembly through June 30, 2004, the Board shall not
| 2 | | submit vouchers for the remainder of fiscal year 2004 in excess | 3 | | of the
fiscal year 2004 certified contribution amount | 4 | | determined
under this Section after taking into consideration | 5 | | the transfer to the
System under subsection (b) of Section | 6 | | 6z-61 of the State Finance Act.
These
vouchers shall be paid by | 7 | | the State Comptroller and Treasurer by warrants drawn
on the | 8 | | funds appropriated to the System for that fiscal year.
| 9 | | If in any month the amount remaining unexpended from all | 10 | | other
appropriations to the System for the applicable fiscal | 11 | | year (including the
appropriations to the System under Section | 12 | | 8.12 of the State Finance Act and
Section 1 of the State | 13 | | Pension Funds Continuing Appropriation Act) is less than
the | 14 | | amount lawfully vouchered under this Section, the difference | 15 | | shall be paid
from the General Revenue Fund under the | 16 | | continuing appropriation authority
provided in Section 1.1 of | 17 | | the State Pension Funds Continuing Appropriation
Act.
| 18 | | (d) So long as the payments received are the full amount | 19 | | lawfully
vouchered under this Section, payments received by the | 20 | | System under this
Section shall be applied first toward the | 21 | | employer contribution to the
self-managed plan established | 22 | | under Section 15-158.2. Payments shall be
applied second toward | 23 | | the employer's portion of the normal costs of the System,
as | 24 | | defined in subsection (f) of Section 15-155. The balance shall | 25 | | be applied
toward the unfunded actuarial liabilities of the | 26 | | System.
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| 1 | | (e) In the event that the System does not receive, as a | 2 | | result of
legislative enactment or otherwise, payments | 3 | | sufficient to
fully fund the employer contribution to the | 4 | | self-managed plan
established under Section 15-158.2 and to | 5 | | fully fund that portion of the
employer's portion of the normal | 6 | | costs of the System, as calculated in
accordance with Section | 7 | | 15-155(a-1), then any payments received shall be
applied | 8 | | proportionately to the optional retirement program established | 9 | | under
Section 15-158.2 and to the employer's portion of the | 10 | | normal costs of the
System, as calculated in accordance with | 11 | | Section 15-155(a-1).
| 12 | | (Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11; | 13 | | 97-694, eff. 6-18-12.)
| 14 | | (40 ILCS 5/15-168) (from Ch. 108 1/2, par. 15-168)
| 15 | | Sec. 15-168. To require information.
| 16 | | To require such information as shall be necessary for the | 17 | | proper
operation of the system from any participant or , | 18 | | beneficiary or from any
employer of a participant officer, | 19 | | department head or other person or persons in authority, as the
| 20 | | case may be, of any employer .
| 21 | | (Source: Laws 1963, p. 161.)
| 22 | | (40 ILCS 5/15-169) (from Ch. 108 1/2, par. 15-169)
| 23 | | Sec. 15-169. To elect officers and appoint employees. To | 24 | | elect officers; to appoint a secretary and treasurer; to have a |
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| 1 | | seal;
to employ and fix the rate of pay of such actuarial, | 2 | | legal, clerical, audit, or medical , or other services, or | 3 | | corporate trustee
organized under the laws of this State with a | 4 | | capital of not less than
$1,000,000, or investment counsel and | 5 | | other persons as shall be required
for the efficient | 6 | | administration of the system.
All actions brought by or against | 7 | | the board shall be prosecuted or
defended by the Attorney | 8 | | General or by other counsel,
as the board may decide.
| 9 | | (Source: P.A. 83-1440.)
| 10 | | (40 ILCS 5/15-171) (from Ch. 108 1/2, par. 15-171)
| 11 | | Sec. 15-171. To receive, record and deposit payments.
| 12 | | To receive all payments made to the system; to make a | 13 | | record thereof;
and to cause all payments to be deposited | 14 | | immediately with the treasurer of
the system. The Board may | 15 | | delegate the actions prescribed under this Section to persons | 16 | | employed by the System.
| 17 | | (Source: Laws 1963, p. 161.)
| 18 | | (40 ILCS 5/15-172) (from Ch. 108 1/2, par. 15-172)
| 19 | | Sec. 15-172. To certify warrants , checks, or drafts . To | 20 | | provide for certification on its behalf by its president and
| 21 | | secretary of all warrants , checks, or drafts upon its | 22 | | depository bank or corporate trustee upon its treasurer in | 23 | | accordance with the by-laws and actions of
the board | 24 | | authorizing payments for benefits, expenses,
investments and |
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| 1 | | debt service, including any redemption premium and
required | 2 | | deposits for any bonds of the board, out
of funds belonging to | 3 | | this system.
| 4 | | (Source: P.A. 86-1034.)
| 5 | | (40 ILCS 5/15-177) (from Ch. 108 1/2, par. 15-177)
| 6 | | Sec. 15-177. To make rules.
| 7 | | To establish by-laws; to fix the number necessary for a | 8 | | quorum; to set
up an executive committee of its members to | 9 | | exercise all powers of the
board except as limited by the | 10 | | board; to establish rules and regulations,
not inconsistent | 11 | | with the provisions of this Article, as are necessary for
the | 12 | | administration of the system; and generally to carry on any | 13 | | other
reasonable activities which are deemed necessary to | 14 | | accomplish the purposes
of this system , including without | 15 | | limitation the time and manner of reporting contributions by | 16 | | participants and, if applicable, contributions by employers .
| 17 | | (Source: Laws 1963, p. 161.)
| 18 | | (40 ILCS 5/16-106.6 new) | 19 | | Sec. 16-106.6. Teacher certification. For purposes of this | 20 | | Article, a teacher shall be deemed to be certificated if he or | 21 | | she is required to be licensed by the Illinois State Board of | 22 | | Education.
| 23 | | (40 ILCS 5/16-152) (from Ch. 108 1/2, par. 16-152)
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| 1 | | Sec. 16-152. Contributions by members.
| 2 | | (a) Each member shall make contributions for membership | 3 | | service to this
System as follows:
| 4 | | (1) Effective July 1, 1998, contributions of 7.50% of | 5 | | salary towards the
cost of the retirement annuity. Such | 6 | | contributions shall be deemed "normal
contributions".
| 7 | | (2) Effective July 1, 1969, contributions of 1/2 of 1% | 8 | | of salary toward
the cost of the automatic annual increase | 9 | | in retirement annuity provided
under Section 16-133.1.
| 10 | | (3) Effective July 24, 1959, contributions of 1% of | 11 | | salary towards the
cost of survivor benefits. Such | 12 | | contributions shall not be credited to
the individual | 13 | | account of the member and shall not be subject to refund
| 14 | | except as provided under Section 16-143.2.
| 15 | | (4) Effective July 1, 2005, contributions of 0.40% of | 16 | | salary toward the cost of the early retirement without | 17 | | discount option provided under Section 16-133.2. This | 18 | | contribution shall cease upon termination of the early | 19 | | retirement without discount option as provided in Section | 20 | | 16-176.
| 21 | | (b) The minimum required contribution for any year of | 22 | | full-time
teaching service shall be $192.
| 23 | | (c) Contributions shall not be required of any annuitant | 24 | | receiving
a retirement annuity who is given employment as | 25 | | permitted under Section 16-118 or 16-150.1.
| 26 | | (d) A person who (i) was a member before July 1, 1998, (ii) |
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| 1 | | retires with
more than 34 years of creditable service, and | 2 | | (iii) does not elect to qualify
for the augmented rate under | 3 | | Section 16-129.1 shall be entitled, at the time
of retirement, | 4 | | to receive a partial refund of contributions made under this
| 5 | | Section for service occurring after the later of June 30, 1998 | 6 | | or attainment
of 34 years of creditable service, in an amount | 7 | | equal to 1.00% of the salary
upon which those contributions | 8 | | were based.
| 9 | | (e) A member's contributions toward the cost of early | 10 | | retirement without discount made under item (a)(4) of this | 11 | | Section shall not be refunded if the member has elected early | 12 | | retirement without discount under Section 16-133.2 and has | 13 | | begun to receive a retirement annuity under this Article | 14 | | calculated in accordance with that election. Otherwise, a | 15 | | member's contributions toward the cost of early retirement | 16 | | without discount made under item (a)(4) of this Section shall | 17 | | be refunded according to whichever one of the following | 18 | | circumstances occurs first: | 19 | | (1) The contributions shall be refunded to the member, | 20 | | without interest, within 120 days after the member's | 21 | | retirement annuity commences, if the member does not elect | 22 | | early retirement without discount under Section 16-133.2. | 23 | | (2) The contributions shall be included, without | 24 | | interest, in any refund claimed by the member under Section | 25 | | 16-151. | 26 | | (3) The contributions shall be refunded to the member's |
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| 1 | | designated beneficiary (or if there is no beneficiary, to | 2 | | the member's estate), without interest, if the member dies | 3 | | without having begun to receive a retirement annuity under | 4 | | this Article. | 5 | | (4) The contributions shall be refunded to the member, | 6 | | without interest, if within 120 days after the early | 7 | | retirement without discount option provided under Section | 8 | | 16-133.2 is terminated under Section 16-176.
In that event, | 9 | | the System shall provide to the member, within 120 days | 10 | | after the option is terminated, an application for a refund | 11 | | of those contributions. | 12 | | (Source: P.A. 93-320, eff. 7-23-03; 94-4, eff. 6-1-05.)
| 13 | | Section 99. Effective date. This Act takes effect upon | 14 | | becoming law.
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| 1 | |
INDEX
| 2 | |
Statutes amended in order of appearance
| | 3 | | 40 ILCS 5/1-160 | | | 4 | | 40 ILCS 5/15-102 | from Ch. 108 1/2, par. 15-102 | | 5 | | 40 ILCS 5/15-108.1 new | | | 6 | | 40 ILCS 5/15-108.2 new | | | 7 | | 40 ILCS 5/15-111 | from Ch. 108 1/2, par. 15-111 | | 8 | | 40 ILCS 5/15-112 | from Ch. 108 1/2, par. 15-112 | | 9 | | 40 ILCS 5/15-113.6 | from Ch. 108 1/2, par. 15-113.6 | | 10 | | 40 ILCS 5/15-134 | from Ch. 108 1/2, par. 15-134 | | 11 | | 40 ILCS 5/15-135 | from Ch. 108 1/2, par. 15-135 | | 12 | | 40 ILCS 5/15-136 | from Ch. 108 1/2, par. 15-136 | | 13 | | 40 ILCS 5/15-136.3 | | | 14 | | 40 ILCS 5/15-139 | from Ch. 108 1/2, par. 15-139 | | 15 | | 40 ILCS 5/15-139.1 new | | | 16 | | 40 ILCS 5/15-145 | from Ch. 108 1/2, par. 15-145 | | 17 | | 40 ILCS 5/15-145.1 new | | | 18 | | 40 ILCS 5/15-146 | from Ch. 108 1/2, par. 15-146 | | 19 | | 40 ILCS 5/15-146.1 | from Ch. 108 1/2, par. 15-146.1 | | 20 | | 40 ILCS 5/15-155 | from Ch. 108 1/2, par. 15-155 | | 21 | | 40 ILCS 5/15-157 | from Ch. 108 1/2, par. 15-157 | | 22 | | 40 ILCS 5/15-158.2 | | | 23 | | 40 ILCS 5/15-159 | from Ch. 108 1/2, par. 15-159 | | 24 | | 40 ILCS 5/15-163 | from Ch. 108 1/2, par. 15-163 | | 25 | | 40 ILCS 5/15-168 | from Ch. 108 1/2, par. 15-168 | |
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| 1 | | 40 ILCS 5/15-171 | from Ch. 108 1/2, par. 15-171 | | 2 | | 40 ILCS 5/15-172 | from Ch. 108 1/2, par. 15-172 | | 3 | | 40 ILCS 5/15-177 | from Ch. 108 1/2, par. 15-177 | | 4 | | 40 ILCS 5/15-177.1 new | |
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