Full Text of HB1725 99th General Assembly
HB1725ham001 99TH GENERAL ASSEMBLY | Rep. Bill Mitchell Filed: 4/17/2015
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| 1 | | AMENDMENT TO HOUSE BILL 1725
| 2 | | AMENDMENT NO. ______. Amend House Bill 1725 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Illinois Pension Code is amended by | 5 | | changing Sections 18-111, 18-124, 18-125, 18-125.1, 18-127, | 6 | | 18-128.01, 18-131, 18-132, 18-133, 18-140, 18-169, 20-106, | 7 | | 20-121, 20-123, 20-124, and 20-125 and by adding Sections | 8 | | 18-110.1, 18-110.2, 18-133.5, 18-175, and 18-176 as follows: | 9 | | (40 ILCS 5/18-110.1 new) | 10 | | Sec. 18-110.1. Tier 1 participant; Tier 2 participant. | 11 | | "Tier 1 participant": A participant who first became a | 12 | | participant before January 1, 2011. | 13 | | "Tier 2 participant": A participant who first became a | 14 | | participant on or after January 1, 2011. | 15 | | (40 ILCS 5/18-110.2 new) |
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| 1 | | Sec. 18-110.2. Tier 1 retiree. "Tier 1 retiree" means a | 2 | | former Tier 1 participant who has made the election to retire | 3 | | and has terminated service.
| 4 | | (40 ILCS 5/18-111) (from Ch. 108 1/2, par. 18-111)
| 5 | | Sec. 18-111. Salary. "Salary": The total compensation paid | 6 | | for personal
services as a judge, by the State, or by the State | 7 | | and a county as
authorized by law. However, in the event that | 8 | | federal law results in any
judge receiving imputed income based | 9 | | on the value of group term life
insurance provided by the | 10 | | State, such imputed income shall not be included
in salary for | 11 | | the purposes of this Article.
| 12 | | Notwithstanding any other provision of this Code, the
| 13 | | annual salary of a Tier 1 participant for the purposes of this | 14 | | Code shall not
exceed, for periods of service in a term of | 15 | | office beginning on
or after the effective date of this | 16 | | amendatory Act of the 99th
General Assembly, the greater of (i) | 17 | | the annual limitation determined
from time to time under | 18 | | subsection (b-5) of Section 1-160 of
this Code or (ii) the
| 19 | | annualized salary of the participant on the last day of that | 20 | | participant's last term of office beginning before that | 21 | | effective date. | 22 | | (Source: P.A. 86-273.)
| 23 | | (40 ILCS 5/18-124) (from Ch. 108 1/2, par. 18-124)
| 24 | | Sec. 18-124. Retirement annuities - conditions for |
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| 1 | | eligibility. | 2 | | (a) This subsection (a) applies only to a Tier 1 | 3 | | participant who first serves as a judge before the effective | 4 | | date of this amendatory Act of the 96th General Assembly . | 5 | | A
participant whose employment as a judge is terminated, | 6 | | regardless of age
or cause is entitled to a retirement annuity | 7 | | beginning on
the date specified in a written application | 8 | | subject to the
following:
| 9 | | (1) the date the annuity begins is subsequent
to the | 10 | | date of final
termination of employment, or the date 30 | 11 | | days prior to the receipt of
the application by the board | 12 | | for annuities based on
disability, or one year before the | 13 | | receipt of the application by the
board for annuities based | 14 | | on attained age;
| 15 | | (2) the participant is at least age 55, or has
become | 16 | | permanently disabled and as
a consequence is unable to | 17 | | perform the duties of his or her office;
| 18 | | (3) the participant has at least 10 years of service
| 19 | | credit except that a participant terminating service after | 20 | | June
30 1975, with at least 6 years of service credit, | 21 | | shall be entitled to
a retirement annuity at age 62 or | 22 | | over;
| 23 | | (4) the participant is not receiving or entitled
to | 24 | | receive, at the date of
retirement, any salary from an | 25 | | employer for service currently performed.
| 26 | | (a-1) Notwithstanding subsection (a) of this Section, for a |
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| 1 | | Tier 1 participant who begins receiving a retirement annuity | 2 | | under this Section on or after July 1, 2016, the required | 3 | | retirement age under subsection (a) is increased as follows, | 4 | | based on the Tier 1 participant's age on June 1, 2016: | 5 | | (1) If he or she is at least age 46 on June 1, 2016, | 6 | | then the required retirement ages under subsection (a) | 7 | | remain unchanged. | 8 | | (2) If he or she is at least age 45 but less than age 46 | 9 | | on June 1, 2016, then the required retirement ages under | 10 | | subsection (a) are increased by 4 months. | 11 | | (3) If he or she is at least age 44 but less than age 45 | 12 | | on June 1, 2016, then the required retirement ages under | 13 | | subsection (a) are increased by 8 months. | 14 | | (4) If he or she is at least age 43 but less than age 44 | 15 | | on June 1, 2016, then the required retirement ages under | 16 | | subsection (a) are increased by 12 months. | 17 | | (5) If he or she is at least age 42 but less than age 43 | 18 | | on June 1, 2016, then the required retirement ages under | 19 | | subsection (a) are increased by 16 months. | 20 | | (6) If he or she is at least age 41 but less than age 42 | 21 | | on June 1, 2016, then the required retirement ages under | 22 | | subsection (a) are increased by 20 months. | 23 | | (7) If he or she is at least age 40 but less than age 41 | 24 | | on June 1, 2016, then the required retirement ages under | 25 | | subsection (a) are increased by 24 months. | 26 | | (8) If he or she is at least age 39 but less than age 40 |
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| 1 | | on June 1, 2016, then the required retirement ages under | 2 | | subsection (a) are increased by 28 months. | 3 | | (9) If he or she is at least age 38 but less than age 39 | 4 | | on June 1, 2016, then the required retirement ages under | 5 | | subsection (a) are increased by 32 months. | 6 | | (10) If he or she is at least age 37 but less than age | 7 | | 38 on June 1, 2016, then the required retirement ages under | 8 | | subsection (a) are increased by 36 months. | 9 | | (11) If he or she is at least age 36 but less than age | 10 | | 37 on June 1, 2016, then the required retirement ages under | 11 | | subsection (a) are increased by 40 months. | 12 | | (12) If he or she is at least age 35 but less than age | 13 | | 36 on June 1, 2016, then the required retirement ages under | 14 | | subsection (a) are increased by 44 months. | 15 | | (13) If he or she is at least age 34 but less than age | 16 | | 35 on June 1, 2016, then the required retirement ages under | 17 | | subsection (a) are increased by 48 months. | 18 | | (14) If he or she is at least age 33 but less than age | 19 | | 34 on June 1, 2016, then the required retirement ages under | 20 | | subsection (a) are increased by 52 months. | 21 | | (15) If he or she is at least age 32 but less than age | 22 | | 33 on June 1, 2016, then the required retirement ages under | 23 | | subsection (a) are increased by 56 months. | 24 | | (16) If he or she is less than age 32 on June 1, 2016, | 25 | | then the required retirement ages under subsection (a) are | 26 | | increased by 60 months. |
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| 1 | | Notwithstanding Section 1-103.1, this subsection (a-1) | 2 | | applies without regard to whether or not the Tier 1 participant | 3 | | is in active service under this Article on or after the | 4 | | effective date of this amendatory Act of the 99th General | 5 | | Assembly. | 6 | | (b) This subsection (b) applies only to a Tier 2 | 7 | | participant who first serves as a judge on or after the | 8 | | effective date of this amendatory Act of the 96th General | 9 | | Assembly . | 10 | | A participant who has at least 8 years of creditable | 11 | | service is
entitled to a retirement annuity when he or she has | 12 | | attained age 67. | 13 | | A member who has attained age 62 and has at least 8 years | 14 | | of service credit may elect to receive the lower retirement | 15 | | annuity provided
in subsection (d) of Section 18-125 of this | 16 | | Code. | 17 | | (Source: P.A. 96-889, eff. 1-1-11 .)
| 18 | | (40 ILCS 5/18-125) (from Ch. 108 1/2, par. 18-125)
| 19 | | Sec. 18-125. Retirement annuity amount.
| 20 | | (a) The annual retirement annuity for a participant who | 21 | | terminated
service as a judge prior to July 1, 1971 shall be | 22 | | based on the law in
effect at the time of termination of | 23 | | service.
| 24 | | (b) Except as provided in subsection (b-5), effective July | 25 | | 1, 1971, the retirement annuity for any participant
in service |
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| 1 | | on or after such date shall be 3 1/2% of final average salary,
| 2 | | as defined in this Section, for each of the first 10 years of | 3 | | service, and
5% of such final average salary for each year of | 4 | | service on excess of 10.
| 5 | | For purposes of this Section, final average salary for a | 6 | | Tier 1 participant who first serves as a judge before August | 7 | | 10, 2009 (the effective date of Public Act 96-207) shall be:
| 8 | | (1) the average salary for the last 4 years of credited | 9 | | service as a
judge for a participant who terminates service | 10 | | before July 1, 1975.
| 11 | | (2) for a participant who terminates service after June | 12 | | 30, 1975
and before July 1, 1982, the salary on the last | 13 | | day of employment as a judge.
| 14 | | (3) for any participant who terminates service after | 15 | | June 30, 1982 and
before January 1, 1990, the average | 16 | | salary for the final year of service as
a judge.
| 17 | | (4) for a participant who terminates service on or | 18 | | after January 1,
1990 but before the effective date of this | 19 | | amendatory Act of 1995, the
salary on the last day of | 20 | | employment as a judge.
| 21 | | (5) for a participant who terminates service on or | 22 | | after the effective
date of this amendatory Act of 1995, | 23 | | the salary on the last day of employment
as a judge, or the | 24 | | highest salary received by the participant for employment | 25 | | as
a judge in a position held by the participant for at | 26 | | least 4 consecutive years,
whichever is greater.
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| 1 | | However, in the case of a participant who elects to | 2 | | discontinue contributions
as provided in subdivision (a)(2) of | 3 | | Section 18-133, the time of such
election shall be considered | 4 | | the last day of employment in the determination
of final | 5 | | average salary under this subsection.
| 6 | | For a Tier 1 participant who first serves as a judge on or | 7 | | after August 10, 2009 (the effective date of Public Act 96-207) | 8 | | and before January 1, 2011 (the effective date of Public Act | 9 | | 96-889) , final average salary shall be the average monthly | 10 | | salary obtained by dividing the total salary of the participant | 11 | | during the period of: (1) the 48 consecutive months of service | 12 | | within the last 120 months of service in which the total | 13 | | compensation was the highest, or (2) the total period of | 14 | | service, if less than 48 months, by the number of months of | 15 | | service in that period. | 16 | | The maximum retirement annuity for any participant shall be | 17 | | 85% of final
average salary.
| 18 | | (b-5) Notwithstanding any other provision of this Article, | 19 | | for a Tier 2 participant who first serves as a judge on or | 20 | | after January 1, 2011 (the effective date of Public Act | 21 | | 96-889) , the annual
retirement annuity is 3% of the
| 22 | | participant's final average salary for each year of service. | 23 | | The maximum retirement
annuity payable shall be 60% of the | 24 | | participant's final average salary. | 25 | | Except as otherwise provided below, for a Tier 2 For a | 26 | | participant who first serves as a judge on or after January 1, |
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| 1 | | 2011 (the effective date of Public Act 96-889) , final average | 2 | | salary shall be the average monthly salary obtained by dividing | 3 | | the total salary of the judge during the 96 consecutive months | 4 | | of service within the last 120 months of service in which the | 5 | | total salary was the highest by the number of months of service | 6 | | in that period; however, for periods of service in a term of | 7 | | office beginning on or after January 1, 2011 and before the | 8 | | effective date of this amendatory Act of the 99th General | 9 | | Assembly , the annual salary may not exceed $106,800, except | 10 | | that that amount shall annually thereafter be increased by the | 11 | | lesser of (i) 3% of that amount, including all previous | 12 | | adjustments, or (ii) the annual unadjusted percentage increase | 13 | | (but not less than zero) in the consumer price index-u
for the | 14 | | 12 months ending with the September preceding each November 1. | 15 | | "Consumer price index-u" means
the index published by the | 16 | | Bureau of Labor Statistics of the United States
Department of | 17 | | Labor that measures the average change in prices of goods and
| 18 | | services purchased by all urban consumers, United States city | 19 | | average, all
items, 1982-84 = 100. The new amount resulting | 20 | | from each annual adjustment
shall be determined by the Public | 21 | | Pension Division of the Department of Insurance and made | 22 | | available to the Board by November 1st of each year until there | 23 | | is no longer any such participant who is in service in a term | 24 | | of office that began before the effective date of this | 25 | | amendatory Act of the 99th General Assembly . | 26 | | Notwithstanding any other provision of this Section, in |
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| 1 | | determining the final average salary of a Tier 2 participant | 2 | | who is in service in a term of office beginning on or after the | 3 | | effective date of this amendatory Act of the 99th General | 4 | | Assembly, the Tier 2 participant's salary for periods of | 5 | | service in a term of office beginning on or after that | 6 | | effective date shall not exceed the limitation on salary | 7 | | determined from time to time under subsection (b-5) of Section | 8 | | 1-160 of this Code. | 9 | | (c) The retirement annuity for a participant who retires | 10 | | prior to age 60
with less than 28 years of service in the | 11 | | System shall be reduced 1/2 of 1%
for each month that the | 12 | | participant's age is under 60 years at the time the
annuity | 13 | | commences. However, for a participant who retires on or after | 14 | | the
effective date of this amendatory Act of the 91st General | 15 | | Assembly, the
percentage reduction in retirement annuity | 16 | | imposed under this subsection shall
be reduced by 5/12 of 1% | 17 | | for every month of service in this System in excess of
20 | 18 | | years, and therefore a participant with at least 26 years of | 19 | | service in this
System may retire at age 55 without any | 20 | | reduction in annuity.
| 21 | | The reduction in retirement annuity imposed by this | 22 | | subsection shall not
apply in the case of retirement on account | 23 | | of disability.
| 24 | | (d) Notwithstanding any other provision of this Article, | 25 | | for a Tier 2 participant who first serves as a judge on or | 26 | | after January 1, 2011 (the effective date of Public Act 96-889) |
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| 1 | | and who is retiring after attaining age 62, the retirement | 2 | | annuity shall be reduced by 1/2
of 1% for each month that the | 3 | | participant's age is under age 67 at the time the annuity | 4 | | commences. | 5 | | (Source: P.A. 96-207, eff. 8-10-09; 96-889, eff. 1-1-11; | 6 | | 96-1000, eff. 7-2-10; 96-1490, eff. 1-1-11.)
| 7 | | (40 ILCS 5/18-125.1) (from Ch. 108 1/2, par. 18-125.1)
| 8 | | Sec. 18-125.1. Automatic increase in retirement annuity. | 9 | | (a) Except as otherwise provided in this Section, a Tier 1 | 10 | | A participant who
retires from service after June 30, 1969, | 11 | | shall, in January of the year next
following the year in which | 12 | | the first anniversary of retirement occurs, and in
January of | 13 | | each year thereafter, have the amount of his or her originally
| 14 | | granted retirement annuity increased as follows: for each year | 15 | | up to and
including 1971, 1 1/2%; for each year from 1972 | 16 | | through 1979 inclusive, 2%; and
for 1980 and each year | 17 | | thereafter, 3%.
| 18 | | (a-1) Notwithstanding subsection (a), but subject to the | 19 | | provisions of subsection (a-2), for a Tier 1 retiree, all | 20 | | automatic increases payable under subsection (a) on or after | 21 | | the effective date of this amendatory Act of the 99th General | 22 | | Assembly shall be calculated as 3% of the lesser of (1) the | 23 | | total annuity
payable at the time of the increase, including | 24 | | previous
increases granted, or (2) $1,000 multiplied by the | 25 | | number of years of creditable service upon which the annuity is |
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| 1 | | based. | 2 | | Beginning January 1, 2017, the $1,000 referred to in item | 3 | | (2) of this subsection (a-1) shall be increased on each January | 4 | | 1 by the annual unadjusted percentage increase (but not less | 5 | | than zero) in the consumer price index-u for the 12 months | 6 | | ending with the preceding September; these adjustments shall be | 7 | | cumulative and compounded.
For the purposes of this subsection | 8 | | (a-1), "consumer price index-u" means the index published by | 9 | | the Bureau of Labor Statistics of the United States Department | 10 | | of Labor that measures the average change in prices of goods | 11 | | and services purchased by all urban consumers, United States | 12 | | city average, all items, 1982-84 = 100. The new dollar amount | 13 | | resulting from each annual adjustment shall be determined by | 14 | | the Public Pension Division of the Department of Insurance and | 15 | | made available to the System by November 1 of each year. | 16 | | This subsection (a-1) is applicable without regard to | 17 | | whether the person is in service on or after the effective date | 18 | | of this amendatory Act of the 99th General Assembly. | 19 | | (a-2) Notwithstanding subsections (a) and (a-1), for an | 20 | | active or inactive Tier 1 participant who has not begun to | 21 | | receive a retirement annuity under this Article before July 1, | 22 | | 2016: | 23 | | (1) the second automatic annual increase payable under | 24 | | subsection (a) shall be at the rate of 0% of the total | 25 | | annuity payable at the time of the increase if he or she is | 26 | | at least age 50 on the effective date of this amendatory |
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| 1 | | Act; | 2 | | (2) the second, fourth, and sixth automatic annual | 3 | | increases payable under subsection (a) shall be at the rate | 4 | | of 0% of the total annuity payable at the time of the | 5 | | increase if he or she is at least age 47 but less than age | 6 | | 50 on the effective date of this amendatory Act; | 7 | | (3) the second, fourth, sixth, and eighth automatic | 8 | | annual increases payable under subsection (a) shall be at | 9 | | the rate of 0% of the total annuity payable at the time of | 10 | | the increase if he or she is at least age 44 but less than | 11 | | age 47 on the effective date of this amendatory Act; and | 12 | | (4) the second, fourth, sixth, eighth, and tenth | 13 | | automatic annual increases payable under subsection (a) | 14 | | shall be at the rate of 0% of the total annuity payable at | 15 | | the time of the increase if he or she is less than age 44 on | 16 | | the effective date of this amendatory Act. | 17 | | For the purposes of Section 1-103.1, this subsection (a-2) | 18 | | is applicable without regard to whether the person is in | 19 | | service on or after the effective date of this amendatory Act | 20 | | of the 99th General Assembly. | 21 | | (b) Notwithstanding any other provision of this Section | 22 | | Article , a retirement annuity for a Tier 2 participant who | 23 | | first serves as a judge on or after January 1, 2011 (the | 24 | | effective date of Public Act 96-889) shall be increased in | 25 | | January of the year next
following the year in which the first | 26 | | anniversary of retirement occurs, but in no event prior to age |
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| 1 | | 67, and in
January of each year thereafter, by an amount | 2 | | calculated as a percentage of the originally granted retirement | 3 | | annuity, equal to 3% or one-half of the annual percentage | 4 | | increase (but not less than zero) in the consumer price index-u | 5 | | for the 12 months ending with the preceding September, as | 6 | | determined by the Public Pension Division of the Department of | 7 | | Insurance and reported to the System by November 1 of each year | 8 | | under subsection (b-5) of Section 18-125 , whichever is less , of | 9 | | the retirement annuity then being paid . | 10 | | The changes made to this subsection (b) by this amendatory | 11 | | Act of the 99th General Assembly shall apply to increases | 12 | | provided under this subsection on or after the effective date | 13 | | of this amendatory Act without regard to whether service
| 14 | | terminated before that effective date. | 15 | | (c) This Section is not applicable to a participant who | 16 | | retires before he
or she has made contributions at the rate | 17 | | prescribed in Section 18-133 for
automatic increases for not | 18 | | less than the equivalent of one full year, unless
such a | 19 | | participant arranges to pay the system the amount required to | 20 | | bring
the total contributions for the automatic increase to the | 21 | | equivalent of
one year's contribution based upon his or her | 22 | | last year's salary.
| 23 | | This Section is applicable to all participants in service | 24 | | after June 30,
1969 unless a participant has elected, prior to | 25 | | September 1,
1969, in a written direction filed with the board | 26 | | not to be subject to
the provisions of this Section. Any |
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| 1 | | participant in service on or after
July 1, 1992 shall have the | 2 | | option of electing prior to April 1, 1993,
in a written | 3 | | direction filed with the board, to be covered by the provisions | 4 | | of
the 1969 amendatory Act. Such participant shall be required | 5 | | to make the
aforesaid additional contributions with compound | 6 | | interest at 4% per annum.
| 7 | | (d) Any Tier 1 participant who has become eligible to | 8 | | receive the maximum rate of
annuity and who resumes service as | 9 | | a judge after receiving a retirement
annuity under this Article | 10 | | shall have the amount of his or her
retirement annuity | 11 | | increased by 3% of the originally granted annuity amount
for | 12 | | each year of such resumed service, beginning in January of the | 13 | | year
next following the date of such resumed service, upon | 14 | | subsequent
termination of such resumed service. The increases | 15 | | accruing under this subsection (d) after the effective date of | 16 | | this amendatory Act of the 99th General Assembly shall accrue | 17 | | at the rate provided in subsection (a-1).
| 18 | | (e) Beginning January 1, 1990 and until the effective date | 19 | | of this amendatory Act of the 99th General Assembly , all | 20 | | automatic annual increases payable
under this Section shall be | 21 | | calculated as a percentage of the total annuity
payable at the | 22 | | time of the increase, including previous increases granted
| 23 | | under this Article.
| 24 | | (Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
| 25 | | (40 ILCS 5/18-127) (from Ch. 108 1/2, par. 18-127)
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| 1 | | Sec. 18-127. Retirement annuity - suspension on | 2 | | reemployment.
| 3 | | (a) A participant receiving a retirement annuity who is | 4 | | regularly
employed for compensation by an employer other than a | 5 | | county, in any
capacity, shall have his or her retirement | 6 | | annuity payments suspended
during such employment. Upon | 7 | | termination of such employment, retirement
annuity payments at | 8 | | the previous rate shall be resumed.
| 9 | | If such a participant resumes service as a judge, he or she
| 10 | | shall receive credit for any additional service. Upon | 11 | | subsequent
retirement, his or her retirement annuity shall be | 12 | | the amount previously
granted, plus the amount earned by the | 13 | | additional judicial service under
the provisions in effect | 14 | | during the period of such additional service.
However, if the | 15 | | participant was receiving the maximum rate of annuity at
the | 16 | | time of re-employment, he or she may elect, in a written | 17 | | direction
filed with the board, not to receive any additional | 18 | | service credit during
the period of re-employment. In such | 19 | | case, contributions shall not be
required during the period of | 20 | | re-employment. Any such election shall be
irrevocable.
| 21 | | (b) Beginning January 1, 1991, any participant receiving a | 22 | | retirement
annuity who accepts temporary employment from an | 23 | | employer other than a
county for a period not exceeding 75 | 24 | | working days in any calendar year
shall not be deemed to be | 25 | | regularly employed for compensation or to have
resumed service | 26 | | as a judge for the purposes of this Article. A day shall
be |
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| 1 | | considered a working day if the annuitant performs on it any of | 2 | | his
duties under the temporary employment agreement.
| 3 | | (c) Except as provided in subsection (a), beginning January | 4 | | 1, 1993,
retirement annuities shall not be subject to | 5 | | suspension upon resumption of
employment for an employer, and | 6 | | any retirement annuity that is then so
suspended shall be | 7 | | reinstated on that date.
| 8 | | (d) The changes made in this Section by this amendatory Act | 9 | | of 1993
shall apply to judges no longer in service on its | 10 | | effective date, as well as to
judges serving on or after that | 11 | | date.
| 12 | | (e) A participant receiving a retirement
annuity under this | 13 | | Article who serves as a part-time employee in any of the | 14 | | following positions: Legislative Inspector General, Special | 15 | | Legislative Inspector General, employee of the Office of the | 16 | | Legislative Inspector General, Executive Director of the | 17 | | Legislative Ethics Commission, or staff of the Legislative | 18 | | Ethics Commission, but has not elected to participate in the | 19 | | Article 14 System with respect to that service, shall not be | 20 | | deemed to be regularly employed for compensation by an employer | 21 | | other than a county, nor to have
resumed service as a judge, on | 22 | | the basis of that service, and the retirement annuity payments | 23 | | and other benefits of that person under this Code shall not be | 24 | | suspended, diminished, or otherwise impaired solely as a | 25 | | consequence of that service. This subsection (e) applies | 26 | | without regard to whether the person is in service as a judge |
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| 1 | | under this Article on or after the effective date of this | 2 | | amendatory Act of the 93rd General Assembly. In this | 3 | | subsection, a "part-time employee" is a person who is not | 4 | | required to work at least 35 hours per week.
| 5 | | (f) A participant receiving a retirement annuity under this | 6 | | Article who has made an election under Section 1-123 and who is | 7 | | serving either as legal counsel in the Office of the Governor | 8 | | or as Chief Deputy Attorney General shall not be deemed to be | 9 | | regularly employed for compensation by an employer other than a | 10 | | county, nor to have resumed service as a judge, on the basis of | 11 | | that service, and the retirement annuity payments and other | 12 | | benefits of that person under this Code shall not be suspended, | 13 | | diminished, or otherwise impaired solely as a consequence of | 14 | | that service. This subsection (f) applies without regard to | 15 | | whether the person is in service as a judge under this Article | 16 | | on or after the effective date of this amendatory Act of the | 17 | | 93rd General Assembly.
| 18 | | (g) Notwithstanding any other provision of this Article, if | 19 | | a former Tier 2 person who first becomes a participant under | 20 | | this System on or after January 1, 2011 (the effective date of | 21 | | this amendatory Act of the 96th General Assembly) is receiving | 22 | | a retirement annuity under this Article and becomes a member or | 23 | | participant under this Article or any other Article of this | 24 | | Code and is employed on a full-time basis, then the person's | 25 | | retirement annuity under this System shall be suspended during | 26 | | that employment. Upon termination of that employment, the |
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| 1 | | person's retirement annuity shall resume and, if appropriate, | 2 | | be recalculated under the applicable provisions of this | 3 | | Article. | 4 | | (Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
| 5 | | (40 ILCS 5/18-128.01) (from Ch. 108 1/2, par. 18-128.01)
| 6 | | Sec. 18-128.01. Amount of survivor's annuity.
| 7 | | (a) Upon the death of
an annuitant, his or her surviving | 8 | | spouse shall be entitled to a survivor's
annuity of 66 2/3% of | 9 | | the annuity the annuitant was receiving immediately
prior to | 10 | | his or her death, inclusive of annual increases in the | 11 | | retirement
annuity to the date of death.
| 12 | | (b) Upon the death of an active participant, his or her | 13 | | surviving spouse
shall receive a survivor's annuity of 66 2/3% | 14 | | of the annuity earned by the
participant as of the date of his | 15 | | or her death, determined without regard
to whether the | 16 | | participant had attained age 60 as of that time, or 7 1/2%
of | 17 | | the last salary of the decedent, whichever is greater.
| 18 | | (c) Upon the death of a participant who had terminated | 19 | | service with at
least 10 years of service, his or her surviving | 20 | | spouse shall be entitled
to a survivor's annuity of 66 2/3% of | 21 | | the annuity earned by the deceased
participant at the date of | 22 | | death.
| 23 | | (d) Upon the death of an annuitant, active participant, or | 24 | | participant
who had terminated service with at least 10 years | 25 | | of service, each surviving
child under the age of 18 or |
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| 1 | | disabled as defined in Section 18-128 shall
be entitled to a | 2 | | child's annuity in an amount equal to 5% of the decedent's
| 3 | | final salary, not to exceed in total for all such children the | 4 | | greater of
20% of the decedent's last salary or 66 2/3% of the | 5 | | annuity received or
earned by the decedent as provided under | 6 | | subsections (a) and (b) of this
Section. This child's annuity | 7 | | shall be paid whether or not a survivor's
annuity was elected | 8 | | under Section 18-123.
| 9 | | (e) The changes made in the survivor's annuity provisions | 10 | | by Public Act
82-306 shall apply to the survivors of a deceased | 11 | | participant or annuitant
whose death occurs on or after August | 12 | | 21, 1981.
| 13 | | (f) Beginning January 1, 1990, every survivor's annuity | 14 | | shall be
increased
(1) on each January 1 occurring on or after | 15 | | the commencement of the annuity if
the deceased member died | 16 | | while receiving a retirement annuity, or (2) in other cases,
on | 17 | | each January 1 occurring on or after the first anniversary of
| 18 | | the commencement of the annuity, by an amount equal to 3% of | 19 | | the current
amount of the annuity, including any previous | 20 | | increases under this Article.
Such increases shall apply | 21 | | without regard to whether the deceased member
was in service on | 22 | | or after the effective date of this amendatory Act of
1991, but | 23 | | shall not accrue for any period prior to January 1, 1990.
| 24 | | (g) Notwithstanding any other provision of this Article, | 25 | | the initial survivor's annuity for a survivor of a Tier 2 | 26 | | participant who first serves as a judge after January 1, 2011 |
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| 1 | | (the effective date of Public Act 96-889) shall be in the | 2 | | amount of 66 2/3% of the annuity received or earned by the | 3 | | decedent, and shall be increased (1) on each January 1 | 4 | | occurring on or after the commencement of the annuity if
the | 5 | | deceased participant died while receiving a retirement | 6 | | annuity, or (2) in other cases,
on each January 1 occurring on | 7 | | or after the first anniversary of
the commencement of the | 8 | | annuity, but in no event prior to age 67, by an amount equal to | 9 | | 3% or the annual unadjusted percentage increase in the consumer | 10 | | price index-u as determined by the Public Pension Division of | 11 | | the Department of Insurance under subsection (b-5) of Section | 12 | | 18-125, whichever is less, of the survivor's annuity then being | 13 | | paid. | 14 | | (Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
| 15 | | (40 ILCS 5/18-131) (from Ch. 108 1/2, par. 18-131)
| 16 | | Sec. 18-131. Financing; employer contributions.
| 17 | | (a) The State of Illinois shall make contributions to this | 18 | | System by
appropriations of the amounts which, together with | 19 | | the contributions of
participants, net earnings on | 20 | | investments, and other income, will meet the
costs of | 21 | | maintaining and administering this System on a 100% 90% funded | 22 | | basis in
accordance with actuarial recommendations by the end | 23 | | of State fiscal year 2046 .
| 24 | | (b) The Board shall determine the amount of State | 25 | | contributions
required for each fiscal year on the basis of the |
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| 1 | | actuarial tables and other
assumptions adopted by the Board and | 2 | | the prescribed rate of interest, using
the formula in | 3 | | subsection (c).
| 4 | | (c) For State fiscal years 2017 through 2046, the minimum | 5 | | contribution
to the System to be made by the State for each | 6 | | fiscal year shall be an amount
determined by the System to be | 7 | | equal to the sum of (1) the State's portion of the projected | 8 | | normal cost for that fiscal year, plus (2) an amount sufficient | 9 | | to bring the total assets of the
System up to 100% of the total | 10 | | actuarial liabilities of the System by the end of
State fiscal | 11 | | year 2046. In making these determinations, the required State
| 12 | | contribution shall be calculated each year as a level | 13 | | percentage of payroll
over the years remaining to and including | 14 | | fiscal year 2046 and shall be
determined under the projected | 15 | | unit cost method for fiscal year 2017 and under the entry age | 16 | | normal actuarial cost method for fiscal years 2018 through | 17 | | 2046. | 18 | | For State fiscal years 2012 through 2016 2045 , the minimum | 19 | | contribution
to the System to be made by the State for each | 20 | | fiscal year shall be an amount
determined by the System to be | 21 | | sufficient to bring the total assets of the
System up to 90% of | 22 | | the total actuarial liabilities of the System by the end of
| 23 | | State fiscal year 2045. In making these determinations, the | 24 | | required State
contribution shall be calculated each year as a | 25 | | level percentage of payroll
over the years remaining to and | 26 | | including fiscal year 2045 and shall be
determined under the |
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| 1 | | projected unit credit actuarial cost method.
| 2 | | For State fiscal years 1996 through 2005, the State | 3 | | contribution to
the System, as a percentage of the applicable | 4 | | employee payroll, shall be
increased in equal annual increments | 5 | | so that by State fiscal year 2011, the
State is contributing at | 6 | | the rate required under this Section.
| 7 | | Notwithstanding any other provision of this Article, the | 8 | | total required State
contribution for State fiscal year 2006 is | 9 | | $29,189,400.
| 10 | | Notwithstanding any other provision of this Article, the | 11 | | total required State
contribution for State fiscal year 2007 is | 12 | | $35,236,800.
| 13 | | For each of State fiscal years 2008 through 2009, the State | 14 | | contribution to
the System, as a percentage of the applicable | 15 | | employee payroll, shall be
increased in equal annual increments | 16 | | from the required State contribution for State fiscal year | 17 | | 2007, so that by State fiscal year 2011, the
State is | 18 | | contributing at the rate otherwise required under this Section.
| 19 | | Notwithstanding any other provision of this Article, the | 20 | | total required State contribution for State fiscal year 2010 is | 21 | | $78,832,000 and shall be made from the proceeds of bonds sold | 22 | | in fiscal year 2010 pursuant to Section 7.2 of the General | 23 | | Obligation Bond Act, less (i) the pro rata share of bond sale | 24 | | expenses determined by the System's share of total bond | 25 | | proceeds, (ii) any amounts received from the General Revenue | 26 | | Fund in fiscal year 2010, and (iii) any reduction in bond |
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| 1 | | proceeds due to the issuance of discounted bonds, if | 2 | | applicable. | 3 | | Notwithstanding any other provision of this Article, the | 4 | | total required State contribution for State fiscal year 2011 is
| 5 | | the amount recertified by the System on or before April 1, 2011 | 6 | | pursuant to Section 18-140 and shall be made from the proceeds | 7 | | of bonds sold
in fiscal year 2011 pursuant to Section 7.2 of | 8 | | the General
Obligation Bond Act, less (i) the pro rata share of | 9 | | bond sale
expenses determined by the System's share of total | 10 | | bond
proceeds, (ii) any amounts received from the General | 11 | | Revenue
Fund in fiscal year 2011, and (iii) any reduction in | 12 | | bond
proceeds due to the issuance of discounted bonds, if
| 13 | | applicable. | 14 | | Beginning in State fiscal year 2048 2046 , the minimum State | 15 | | contribution for
each fiscal year shall be the amount needed to | 16 | | maintain the total assets of
the System at 100% 90% of the | 17 | | total actuarial liabilities of the System.
| 18 | | Amounts received by the System pursuant to Section 25 of | 19 | | the Budget Stabilization Act or Section 8.12 of the State | 20 | | Finance Act in any fiscal year do not reduce and do not | 21 | | constitute payment of any portion of the minimum State | 22 | | contribution required under this Article in that fiscal year. | 23 | | Such amounts shall not reduce, and shall not be included in the | 24 | | calculation of, the required State contributions under this | 25 | | Article in any future year until the System has reached a | 26 | | funding ratio of at least 100% 90% . A reference in this Article |
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| 1 | | to the "required State contribution" or any substantially | 2 | | similar term does not include or apply to any amounts payable | 3 | | to the System under Section 25 of the Budget Stabilization Act.
| 4 | | Notwithstanding any other provision of this Section, the | 5 | | required State
contribution for State fiscal year 2005 and for | 6 | | fiscal year 2008 and each fiscal year thereafter through State | 7 | | fiscal year 2016 , as
calculated under this Section and
| 8 | | certified under Section 18-140, shall not exceed an amount | 9 | | equal to (i) the
amount of the required State contribution that | 10 | | would have been calculated under
this Section for that fiscal | 11 | | year if the System had not received any payments
under | 12 | | subsection (d) of Section 7.2 of the General Obligation Bond | 13 | | Act, minus
(ii) the portion of the State's total debt service | 14 | | payments for that fiscal
year on the bonds issued in fiscal | 15 | | year 2003 for the purposes of that Section 7.2, as determined
| 16 | | and certified by the Comptroller, that is the same as the | 17 | | System's portion of
the total moneys distributed under | 18 | | subsection (d) of Section 7.2 of the General
Obligation Bond | 19 | | Act. In determining this maximum for State fiscal years 2008 | 20 | | through 2010, however, the amount referred to in item (i) shall | 21 | | be increased, as a percentage of the applicable employee | 22 | | payroll, in equal increments calculated from the sum of the | 23 | | required State contribution for State fiscal year 2007 plus the | 24 | | applicable portion of the State's total debt service payments | 25 | | for fiscal year 2007 on the bonds issued in fiscal year 2003 | 26 | | for the purposes of Section 7.2 of the General
Obligation Bond |
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| 1 | | Act, so that, by State fiscal year 2011, the
State is | 2 | | contributing at the rate otherwise required under this Section.
| 3 | | (d) For purposes of determining the required State | 4 | | contribution to the System, the value of the System's assets | 5 | | shall be equal to the actuarial value of the System's assets, | 6 | | which shall be calculated as follows: | 7 | | As of June 30, 2008, the actuarial value of the System's | 8 | | assets shall be equal to the market value of the assets as of | 9 | | that date. In determining the actuarial value of the System's | 10 | | assets for fiscal years after June 30, 2008, any actuarial | 11 | | gains or losses from investment return incurred in a fiscal | 12 | | year shall be recognized in equal annual amounts over the | 13 | | 5-year period following that fiscal year. | 14 | | (e) For purposes of determining the required State | 15 | | contribution to the system for a particular year, the actuarial | 16 | | value of assets shall be assumed to earn a rate of return equal | 17 | | to the system's actuarially assumed rate of return. | 18 | | (Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11; | 19 | | 96-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-813, eff. | 20 | | 7-13-12.)
| 21 | | (40 ILCS 5/18-132) (from Ch. 108 1/2, par. 18-132)
| 22 | | Sec. 18-132. Obligations of State ; funding guarantee . | 23 | | (a) The payment of (1) the required State contributions, | 24 | | (2) all benefits
granted under this system , and (3) all | 25 | | expenses in connection with the
administration and operation |
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| 1 | | thereof are the obligations of the State to
the extent | 2 | | specified in this Article.
| 3 | | (b) Beginning July 1, 2016, the State shall be obligated to | 4 | | contribute to the System in each State fiscal year an amount | 5 | | not less than the sum of (i) the State's normal cost for the | 6 | | year and (ii) the portion of the unfunded accrued liability | 7 | | assigned to that year by law. Notwithstanding any other | 8 | | provision of law, if the State fails to pay an amount required | 9 | | under this subsection, it shall be the obligation of the Board | 10 | | to seek payment of the required amount in compliance with the | 11 | | provisions of this Section and, if the amount remains unpaid, | 12 | | to bring a mandamus action in the Supreme Court of Illinois to | 13 | | compel the State to make the required payment. | 14 | | If the System submits a voucher for contributions required | 15 | | under Section 18-131 and the State fails to pay that voucher | 16 | | within 90 days of its receipt, the Board shall submit a written | 17 | | request to the Comptroller seeking payment. A copy of the | 18 | | request shall be filed with the Secretary of State, and the | 19 | | Secretary of State shall provide a copy to the Governor and | 20 | | General Assembly. No earlier than the 16th day after the System | 21 | | files the request with the Comptroller and Secretary of State, | 22 | | if the amount remains unpaid the Board shall commence a | 23 | | mandamus action in the Supreme Court of Illinois to compel the | 24 | | Comptroller to satisfy the voucher. | 25 | | This subsection (b) constitutes an express waiver of the | 26 | | State's sovereign immunity solely to the extent that it permits |
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| 1 | | the Board to commence a mandamus action in the Supreme Court of | 2 | | Illinois to compel the Comptroller to pay a voucher for the | 3 | | contributions required under Section 18-131. | 4 | | (c) Beginning in State fiscal year 2017, the State shall be | 5 | | obligated to make the transfers set forth in subsections (c-5) | 6 | | and (c-10) of Section 20 of the Budget Stabilization Act and to | 7 | | pay to the System its proportionate share of the transferred | 8 | | amounts in accordance with Section 25 of the Budget | 9 | | Stabilization Act. Notwithstanding any other provision of law, | 10 | | if the State fails to transfer an amount required under this | 11 | | subsection or to pay to the System its proportionate share of | 12 | | the transferred amount in accordance with Section 25 of the | 13 | | Budget Stabilization Act, it shall be the obligation of the | 14 | | Board to seek transfer or payment of the required amount in | 15 | | compliance with the provisions of this Section and, if the | 16 | | required amount remains untransferred or the required payment | 17 | | remains unpaid, to bring a mandamus action in the Supreme Court | 18 | | of Illinois to compel the State to make the required transfer | 19 | | or payment or both, as the case may be. | 20 | | If the State fails to make a transfer required under | 21 | | subsection (c-5) or (c-10) of Section 20 of the Budget | 22 | | Stabilization Act or a payment to the System required under | 23 | | Section 25 of that Act, the Board shall submit a written | 24 | | request to the Comptroller seeking payment. A copy of the | 25 | | request shall be filed with the Secretary of State, and the | 26 | | Secretary of State shall provide a copy to the Governor and |
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| 1 | | General Assembly. No earlier than the 16th day after the System | 2 | | files the request with the Comptroller and Secretary of State, | 3 | | if the required amount remains untransferred or the required | 4 | | payment remains unpaid, the Board shall commence a mandamus | 5 | | action in the Supreme Court of Illinois to compel the | 6 | | Comptroller to make the required transfer or payment or both, | 7 | | as the case may be. | 8 | | This subsection (c) constitutes an express waiver of the | 9 | | State's sovereign immunity solely to the extent that it permits | 10 | | the Board to commence a mandamus action in the Supreme Court of | 11 | | Illinois to compel the Comptroller to make a transfer required | 12 | | under subsection (c-5) or (c-10) of Section 20 of the Budget | 13 | | Stabilization Act and to pay to the System its proportionate | 14 | | share of the transferred amount in accordance with Section 25 | 15 | | of the Budget Stabilization Act. | 16 | | The obligations created by this subsection (c) expire when | 17 | | all of the requirements of subsections (c-5) and (c-10) of | 18 | | Section 20 of the Budget Stabilization Act and Section 25 of | 19 | | the Budget Stabilization Act have been met. | 20 | | (e) Any payments and transfers required to be made by the | 21 | | State pursuant to subsection (b) or (c) are expressly | 22 | | subordinate to the payment of the principal, interest, and | 23 | | premium, if any, on any bonded debt obligation of the State or | 24 | | any other State-created entity, either currently outstanding | 25 | | or to be issued, for which the source of repayment or security | 26 | | thereon is derived directly or indirectly from tax revenues |
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| 1 | | collected by the State or any other State-created entity. | 2 | | Payments on such bonded obligations include any statutory fund | 3 | | transfers or other prefunding mechanisms or formulas set forth, | 4 | | now or hereafter, in State law or bond indentures, into debt | 5 | | service funds or accounts of the State related to such bond | 6 | | obligations, consistent with the payment schedules associated | 7 | | with such obligations. | 8 | | (Source: P.A. 83-1440.)
| 9 | | (40 ILCS 5/18-133) (from Ch. 108 1/2, par. 18-133)
| 10 | | Sec. 18-133. Financing; employee contributions.
| 11 | | (a) Effective July 1, 1967, each participant is required to | 12 | | contribute
7 1/2% of each payment of salary toward the | 13 | | retirement annuity. Such
contributions shall continue during | 14 | | the entire time the participant is in
service, with the | 15 | | following exceptions:
| 16 | | (1) Contributions for the retirement annuity are not | 17 | | required on salary
received after 18 years of service by | 18 | | persons who were participants before
January 2, 1954.
| 19 | | (2) A participant who continues to serve as a judge | 20 | | after becoming
eligible to receive the maximum rate of | 21 | | annuity may elect, through a written
direction filed with | 22 | | the Board, to discontinue contributing to the System.
Any | 23 | | such option elected by a judge shall be irrevocable unless | 24 | | prior to
January 1, 2000, and while continuing to
serve as | 25 | | judge, the judge (A) files with the Board a letter |
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| 1 | | cancelling the
direction to discontinue contributing to | 2 | | the System and requesting that such
contributing resume, | 3 | | and (B) pays into the System an amount equal to the total
| 4 | | of the discontinued contributions plus interest thereon at | 5 | | 5% per annum.
Service credits earned in any other | 6 | | "participating system" as defined in
Article 20 of this | 7 | | Code shall be considered for purposes of determining a
| 8 | | judge's eligibility to discontinue contributions under | 9 | | this subdivision
(a)(2).
| 10 | | (3) A participant who (i) has attained age 60, (ii) | 11 | | continues to serve
as a judge after becoming eligible to | 12 | | receive the maximum rate of annuity,
and (iii) has not | 13 | | elected to discontinue contributing to the System under
| 14 | | subdivision (a)(2) of this Section (or has revoked any such | 15 | | election) may
elect, through a written direction filed with | 16 | | the Board, to make contributions
to the System based only | 17 | | on the amount of the increases in salary received by
the | 18 | | judge on or after the date of the election, rather than the | 19 | | total salary
received. If a judge who is making | 20 | | contributions to the System on the
effective date of this | 21 | | amendatory Act of the 91st General Assembly makes an
| 22 | | election to limit contributions under this subdivision | 23 | | (a)(3) within 90 days
after that effective date, the | 24 | | election shall be deemed to become
effective on that | 25 | | effective date and the judge shall be entitled to receive a
| 26 | | refund of any excess contributions paid to the System |
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| 1 | | during that 90-day
period; any other election under this | 2 | | subdivision (a)(3) becomes effective
on the first of the | 3 | | month following the date of the election. An election to
| 4 | | limit contributions under this subdivision (a)(3) is | 5 | | irrevocable. Service
credits earned in any other | 6 | | participating system as defined in Article 20 of
this Code | 7 | | shall be considered for purposes of determining a judge's | 8 | | eligibility
to make an election under this subdivision | 9 | | (a)(3).
| 10 | | (b) Beginning July 1, 1969 and, in the case of Tier 1 | 11 | | participants, ending on June 30, 2016 , each participant is | 12 | | required to contribute
1% of each payment of salary towards the | 13 | | automatic increase in annuity
provided in Section 18-125.1. | 14 | | However, such contributions need not be made
by any participant | 15 | | who has elected prior to September 15, 1969, not to be
subject | 16 | | to the automatic increase in annuity provisions.
| 17 | | (c) Effective July 13, 1953, each married participant | 18 | | subject to the
survivor's annuity provisions is required to | 19 | | contribute 2 1/2% of each
payment of salary, whether or not he | 20 | | or she is required to make any other
contributions under this | 21 | | Section. Such contributions shall be made
concurrently with the | 22 | | contributions made for annuity purposes.
| 23 | | (d) Notwithstanding any other provision of this Article, | 24 | | the required contributions for a Tier 2 participant who first | 25 | | becomes a participant on or after January 1, 2011 shall not | 26 | | exceed the contributions that would be due under this Article |
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| 1 | | if that participant's highest salary for annuity purposes were | 2 | | $106,800, plus any increase in that amount under Section | 3 | | 18-125. | 4 | | (Source: P.A. 96-1490, eff. 1-1-11.)
| 5 | | (40 ILCS 5/18-133.5 new) | 6 | | Sec. 18-133.5. Use of contributions for health care | 7 | | subsidies. The System shall not use any contribution received | 8 | | by the System under this Article to provide a subsidy for the | 9 | | cost of participation in a retiree health care program.
| 10 | | (40 ILCS 5/18-140)
(from Ch. 108 1/2, par. 18-140)
| 11 | | Sec. 18-140. To certify required State contributions and | 12 | | submit vouchers.
| 13 | | (a) The Board shall certify to the Governor, on or before | 14 | | November 15 of
each year until November 15, 2011, the amount of | 15 | | the required State contribution to the System for the
following | 16 | | fiscal year and shall specifically identify the System's | 17 | | projected State normal cost for that fiscal year. The | 18 | | certification shall include a copy of the actuarial
| 19 | | recommendations upon which it is based and shall specifically | 20 | | identify the System's projected State normal cost for that | 21 | | fiscal year.
| 22 | | On or before November 1 of each year, beginning November 1, | 23 | | 2012, the Board shall submit to the State Actuary, the | 24 | | Governor, and the General Assembly a proposed certification of |
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| 1 | | the amount of the required State contribution to the System for | 2 | | the next fiscal year, along with all of the actuarial | 3 | | assumptions, calculations, and data upon which that proposed | 4 | | certification is based. On or before January 1 of each year | 5 | | beginning January 1, 2013, the State Actuary shall issue a | 6 | | preliminary report concerning the proposed certification and | 7 | | identifying, if necessary, recommended changes in actuarial | 8 | | assumptions that the Board must consider before finalizing its | 9 | | certification of the required State contributions. On or before | 10 | | January 15, 2013 and every January 15 thereafter, the Board | 11 | | shall certify to the Governor and the General Assembly the | 12 | | amount of the required State contribution for the next fiscal | 13 | | year. The Board's certification must note any deviations from | 14 | | the State Actuary's recommended changes, the reason or reasons | 15 | | for not following the State Actuary's recommended changes, and | 16 | | the fiscal impact of not following the State Actuary's | 17 | | recommended changes on the required State contribution. | 18 | | On or before May 1, 2004, the Board shall recalculate and | 19 | | recertify to
the Governor the amount of the required State | 20 | | contribution to the System for
State fiscal year 2005, taking | 21 | | into account the amounts appropriated to and
received by the | 22 | | System under subsection (d) of Section 7.2 of the General
| 23 | | Obligation Bond Act.
| 24 | | On or before July 1, 2005, the Board shall recalculate and | 25 | | recertify
to the Governor the amount of the required State
| 26 | | contribution to the System for State fiscal year 2006, taking |
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| 1 | | into account the changes in required State contributions made | 2 | | by this amendatory Act of the 94th General Assembly.
| 3 | | On or before April 1, 2011, the Board shall recalculate and | 4 | | recertify to the Governor the amount of the required State | 5 | | contribution to the System for State fiscal year 2011, applying | 6 | | the changes made by Public Act 96-889 to the System's assets | 7 | | and liabilities as of June 30, 2009 as though Public Act 96-889 | 8 | | was approved on that date. | 9 | | (a-5) For purposes of Section (c-5) of Section 20 of the | 10 | | Budget Stabilization Act, on or before November 1 of each year, | 11 | | and as soon as possible after November 1, 2015, the Board shall | 12 | | determine the amount of the State contribution to the System | 13 | | that would have been required for the next fiscal year if this | 14 | | amendatory Act of the 99th General Assembly had not taken | 15 | | effect, using the best and most recent available data but based | 16 | | on the law in effect on May 31, 2014. The Board shall submit to | 17 | | the State Actuary, the Governor, and the General Assembly a | 18 | | proposed certification, along with the relevant law, actuarial | 19 | | assumptions, calculations, and data upon which that | 20 | | certification is based. | 21 | | On or before January 1 of each year, and as soon as | 22 | | possible in 2016, the State Actuary shall issue a preliminary | 23 | | report concerning the proposed certification and identifying, | 24 | | if necessary, recommended changes in actuarial assumptions | 25 | | that the Board must consider before finalizing its | 26 | | certification. |
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| 1 | | On or before January 15 of each year, and as soon as | 2 | | possible in 2016, the Board shall certify to the Governor and | 3 | | the General Assembly the amount of the State contribution to | 4 | | the System that would have been required for the next fiscal | 5 | | year if this amendatory Act of the 99th General Assembly had | 6 | | not taken effect, using the best and most recent available data | 7 | | but based on the law in effect on May 31, 2014. The Board's | 8 | | certification must note any deviations from the State Actuary's | 9 | | recommended changes, the reason or reasons for not following | 10 | | the State Actuary's recommended changes, and the impact of not | 11 | | following the State Actuary's recommended changes. | 12 | | (b) Beginning in State fiscal year 1996, on or as soon as | 13 | | possible after
the 15th day of each month the Board shall | 14 | | submit vouchers for payment of State
contributions to the | 15 | | System, in a total monthly amount of one-twelfth of the
| 16 | | required annual State contribution certified under subsection | 17 | | (a).
From the effective date of this amendatory Act
of the 93rd | 18 | | General Assembly through June 30, 2004, the Board shall not
| 19 | | submit vouchers for the remainder of fiscal year 2004 in excess | 20 | | of the
fiscal year 2004 certified contribution amount | 21 | | determined
under this Section after taking into consideration | 22 | | the transfer to the
System under subsection (c) of Section | 23 | | 6z-61 of the State Finance Act.
These
vouchers shall be paid by | 24 | | the State Comptroller and Treasurer by warrants drawn
on the | 25 | | funds appropriated to the System for that fiscal year.
| 26 | | If in any month the amount remaining unexpended from all |
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| 1 | | other
appropriations to the System for the applicable fiscal | 2 | | year (including the
appropriations to the System under Section | 3 | | 8.12 of the State Finance Act and
Section 1 of the State | 4 | | Pension Funds Continuing Appropriation Act) is less than
the | 5 | | amount lawfully vouchered under this Section, the difference | 6 | | shall be paid
from the General Revenue Fund under the | 7 | | continuing appropriation authority
provided in Section 1.1 of | 8 | | the State Pension Funds Continuing Appropriation
Act.
| 9 | | (Source: P.A. 96-1497, eff. 1-14-11; 96-1511, eff. 1-27-11; | 10 | | 97-694, eff. 6-18-12.)
| 11 | | (40 ILCS 5/18-169)
| 12 | | Sec. 18-169. Application and expiration of new benefit | 13 | | increases. | 14 | | (a) As used in this Section, "new benefit increase" means | 15 | | an increase in the amount of any benefit provided under this | 16 | | Article, or an expansion of the conditions of eligibility for | 17 | | any benefit under this Article, that results from an amendment | 18 | | to this Code that takes effect after the effective date of this | 19 | | amendatory Act of the 94th General Assembly. "New benefit | 20 | | increase", however, does not include any benefit increase | 21 | | resulting from the changes made to this Article or Article 20 | 22 | | of this Code by this amendatory Act of the 99th General | 23 | | Assembly. | 24 | | (b) Notwithstanding any other provision of this Code or any | 25 | | subsequent amendment to this Code, every new benefit increase |
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| 1 | | is subject to this Section and shall be deemed to be granted | 2 | | only in conformance with and contingent upon compliance with | 3 | | the provisions of this Section.
| 4 | | (c) The Public Act enacting a new benefit increase must | 5 | | identify and provide for payment to the System of additional | 6 | | funding at least sufficient to fund the resulting annual | 7 | | increase in cost to the System as it accrues. | 8 | | Every new benefit increase is contingent upon the General | 9 | | Assembly providing the additional funding required under this | 10 | | subsection. The Commission on Government Forecasting and | 11 | | Accountability shall analyze whether adequate additional | 12 | | funding has been provided for the new benefit increase and | 13 | | shall report its analysis to the Public Pension Division of the | 14 | | Department of Insurance Financial and Professional Regulation . | 15 | | A new benefit increase created by a Public Act that does not | 16 | | include the additional funding required under this subsection | 17 | | is null and void. If the Public Pension Division determines | 18 | | that the additional funding provided for a new benefit increase | 19 | | under this subsection is or has become inadequate, it may so | 20 | | certify to the Governor and the State Comptroller and, in the | 21 | | absence of corrective action by the General Assembly, the new | 22 | | benefit increase shall expire at the end of the fiscal year in | 23 | | which the certification is made.
| 24 | | (d) Every new benefit increase shall expire 5 years after | 25 | | its effective date or on such earlier date as may be specified | 26 | | in the language enacting the new benefit increase or provided |
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| 1 | | under subsection (c). This does not prevent the General | 2 | | Assembly from extending or re-creating a new benefit increase | 3 | | by law. | 4 | | (e) Except as otherwise provided in the language creating | 5 | | the new benefit increase, a new benefit increase that expires | 6 | | under this Section continues to apply to persons who applied | 7 | | and qualified for the affected benefit while the new benefit | 8 | | increase was in effect and to the affected beneficiaries and | 9 | | alternate payees of such persons, but does not apply to any | 10 | | other person, including without limitation a person who | 11 | | continues in service after the expiration date and did not | 12 | | apply and qualify for the affected benefit while the new | 13 | | benefit increase was in effect.
| 14 | | (Source: P.A. 94-4, eff. 6-1-05.) | 15 | | (40 ILCS 5/18-175 new) | 16 | | Sec. 18-175. Defined contribution plan. | 17 | | (a) By July 1, 2017, the System shall prepare and implement | 18 | | a voluntary defined contribution plan for up to 5% of eligible | 19 | | active Tier 1 participants. The System shall determine the 5% | 20 | | cap by the number of active Tier 1 participants on the | 21 | | effective date of this Section. The defined contribution plan | 22 | | developed under this Section shall be a plan that aggregates | 23 | | employer and employee contributions in individual participant | 24 | | accounts which, after meeting any other requirements, are used | 25 | | for payouts after retirement in accordance with this Section |
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| 1 | | and any other applicable laws. | 2 | | As used in this Section, "defined benefit plan" means the | 3 | | retirement plan available under this Article to Tier 1 | 4 | | participants who have not made the election authorized under | 5 | | this Section. | 6 | | (1) Under the defined contribution plan, an active Tier | 7 | | 1 participant of this System could elect to cease accruing | 8 | | benefits in the defined benefit plan under this Article and | 9 | | begin accruing benefits for future service in the defined | 10 | | contribution plan. Service credit under the defined | 11 | | contribution plan may be used for determining retirement | 12 | | eligibility under the defined benefit plan. | 13 | | (2) Participants in the defined contribution plan | 14 | | shall pay employee contributions at the same rate as Tier 1 | 15 | | participants in this System who do not participate in the | 16 | | defined contribution plan. | 17 | | (3) State contributions shall be paid into the accounts | 18 | | of all participants in the defined contribution plan at a | 19 | | uniform rate, expressed as a percentage of compensation and | 20 | | determined for each year. This rate shall be no higher than | 21 | | the employer's normal cost for Tier 1 participants in the | 22 | | defined benefit plan for that year, as determined by the | 23 | | System and expressed as a percentage of compensation, and | 24 | | shall be no lower than 3% of compensation. The State shall | 25 | | adjust this rate annually. | 26 | | (4) The defined contribution plan shall require 5 years |
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| 1 | | of participation in the defined contribution plan before | 2 | | vesting in State contributions. If the participant fails to | 3 | | vest in them, the State contributions, and the earnings | 4 | | thereon, shall be forfeited. | 5 | | (5) The defined contribution plan may provide for | 6 | | participants in the plan to be eligible for defined | 7 | | disability benefits. If it does, the System shall reduce | 8 | | the employee contributions credited to the participant's | 9 | | defined contribution plan account by an amount determined | 10 | | by the System to cover the cost of offering such benefits. | 11 | | (6) The defined contribution plan shall provide a | 12 | | variety of options for investments. These options shall | 13 | | include investments handled by the Illinois State Board of | 14 | | Investment as well as private sector investment options. | 15 | | (7) The defined contribution plan shall provide a | 16 | | variety of options for payouts to retirees and their | 17 | | survivors. | 18 | | (8) To the extent authorized under federal law and as | 19 | | authorized by the System, the plan shall allow former | 20 | | participants in the plan to transfer or roll over employee | 21 | | and vested State contributions, and the earnings thereon, | 22 | | into other qualified retirement plans. | 23 | | (9) The System shall reduce the employee contributions | 24 | | credited to the participant's defined contribution plan | 25 | | account by an amount determined by the System to cover the | 26 | | cost of offering these benefits and any applicable |
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| 1 | | administrative fees. | 2 | | (b) Only persons who are active Tier 1 participants of the | 3 | | System on the effective date of this Section are eligible to | 4 | | participate in the defined contribution plan. Participation in | 5 | | the defined contribution plan shall be limited to the first 5% | 6 | | of eligible persons who elect to participate. The election to | 7 | | participate in the defined contribution plan is voluntary and | 8 | | irrevocable. | 9 | | (c) An eligible active Tier 1 participant may irrevocably | 10 | | elect to participate in the defined contribution plan by filing | 11 | | with the System a written application to participate that is | 12 | | received by the System prior to its determination that 5% of | 13 | | eligible persons have elected to participate in the defined | 14 | | contribution plan. | 15 | | When the System first determines that 5% of eligible | 16 | | persons have elected to participate in the defined contribution | 17 | | plan, the System shall provide notice to previously eligible | 18 | | employees that the plan is no longer available and shall cease | 19 | | accepting applications to participate. | 20 | | (d) The System shall make a good faith effort to contact | 21 | | each active Tier 1 participant who is eligible to participate | 22 | | in the defined contribution plan. The System shall mail | 23 | | information describing the option to join the defined | 24 | | contribution plan to each of these employees to his or her last | 25 | | known address on file with the System. If the employee is not | 26 | | responsive to other means of contact, it is sufficient for the |
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| 1 | | System to publish the details of the option on its website. | 2 | | Upon request for further information describing the | 3 | | option, the System shall provide employees with information | 4 | | from the System before exercising the option to join the plan, | 5 | | including information on the impact to their vested benefits or | 6 | | non-vested service. The individual consultation shall include | 7 | | projections of the participant's defined benefits at | 8 | | retirement or earlier termination of service and the value of | 9 | | the participant's account at retirement or earlier termination | 10 | | of service. The System shall not provide advice or counseling | 11 | | with respect to whether the employee should exercise the | 12 | | option. The System shall inform Tier 1 participants who are | 13 | | eligible to participate in the defined contribution plan that | 14 | | they may also wish to obtain information and counsel relating | 15 | | to their option from any other available source, including but | 16 | | not limited to labor organizations, private counsel, and | 17 | | financial advisors. | 18 | | (e) In no event shall the System, its staff, its authorized | 19 | | representatives, or the Board be liable for any information | 20 | | given to an employee under this Section. The System may | 21 | | coordinate with the Illinois Department of Central Management | 22 | | Services and other retirement systems administering a defined | 23 | | contribution plan in accordance with this amendatory Act of the | 24 | | 99th General Assembly to provide information concerning the | 25 | | impact of the option set forth in this Section. | 26 | | (f) Notwithstanding any other provision of this Section, no |
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| 1 | | person shall begin participating in the defined contribution | 2 | | plan until it has attained qualified plan status and received | 3 | | all necessary approvals from the U.S. Internal Revenue Service. | 4 | | (g) The System shall report on its progress under this | 5 | | Section, including the available details of the defined | 6 | | contribution plan and the System's plans for informing eligible | 7 | | Tier 1 participants about the plan, to the Governor and the | 8 | | General Assembly on or before January 15, 2018. | 9 | | (h) The Illinois State Board of Investments shall be the | 10 | | plan sponsor for the defined contribution plan established | 11 | | under this Section. | 12 | | (i) The intent of this amendatory Act of the 99th General | 13 | | Assembly is to ensure that the State's normal cost of | 14 | | participation in the defined contribution plan is similar, and | 15 | | if possible equal, to the State's normal cost of participation | 16 | | in the defined benefit plan, unless a lower State's normal cost | 17 | | is necessary to ensure cost neutrality. | 18 | | (40 ILCS 5/18-176 new) | 19 | | Sec. 18-176. Defined contribution plan; termination. If | 20 | | the defined contribution plan is terminated or becomes | 21 | | inoperative pursuant to law, then each participant in the plan | 22 | | shall automatically be deemed to have been a contributing Tier | 23 | | 1 participant in the System's defined benefit plan during the | 24 | | time in which he or she participated in the defined | 25 | | contribution plan, and for that purpose the System shall be |
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| 1 | | entitled to recover the amounts in the participant's defined | 2 | | contribution accounts.
| 3 | | (40 ILCS 5/20-106) (from Ch. 108 1/2, par. 20-106)
| 4 | | Sec. 20-106. Final average salary.
| 5 | | (a) "Final average salary": The average (or other) salary | 6 | | which is
considered by a participating system in determining | 7 | | the amount of the
retirement annuity or survivor's annuity.
| 8 | | (b) Earnings credits under all participating systems shall | 9 | | be
considered by each system in determining final average | 10 | | salary, but subject to the limitations imposed by this | 11 | | amendatory Act of the 98th General Assembly for a participant | 12 | | in a defined contribution plan established under Article 2, 14, | 13 | | 15, or 16 , or 18 of this Code. In
calculating a proportional | 14 | | retirement or survivor's annuity based on these
earnings | 15 | | credits, the participating system shall apply any limitations | 16 | | on
earnings for annuity purposes that are imposed by the | 17 | | Article governing the
system.
| 18 | | (Source: P.A. 98-599, eff. 6-1-14 .)
| 19 | | (40 ILCS 5/20-121) (from Ch. 108 1/2, par. 20-121)
| 20 | | Sec. 20-121. Calculation of proportional retirement | 21 | | annuities. | 22 | | (a) Upon
retirement of the employee, a proportional | 23 | | retirement annuity shall be computed
by each participating | 24 | | system in which pension credit has been established on
the |
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| 1 | | basis of pension credits under each system. The computation | 2 | | shall be in
accordance with the formula or method prescribed by | 3 | | each participating system
which is in effect at the date of the | 4 | | employee's latest withdrawal from service
covered by any of the | 5 | | systems in which he has pension credits which he elects
to have | 6 | | considered under this Article. However, the amount of any | 7 | | retirement
annuity payable under the self-managed plan | 8 | | established under Section 15-158.2
of this Code or under the | 9 | | defined contribution plan established under Article 2, 14, 15, | 10 | | or 16 , or 18 of this Code depends solely on the value of the | 11 | | participant's vested account
balances and is not subject to any | 12 | | proportional adjustment under this
Section.
| 13 | | (a-5) For persons who participate in a defined contribution | 14 | | plan established under Article 2, 14, 15, or 16 , or 18 of this | 15 | | Code to whom the provisions of this Article apply, the pension | 16 | | credits established under the defined contribution plan may be | 17 | | considered in
determining eligibility for or the amount of the | 18 | | defined benefit retirement annuity that is
payable by any other | 19 | | participating system. | 20 | | (b) Combined pension credit under all retirement systems | 21 | | subject to this
Article shall be considered in determining | 22 | | whether the minimum qualification
has been met and the formula | 23 | | or method of computation which shall be applied, except as may | 24 | | be otherwise provided with respect to vesting in State or | 25 | | employer contributions in a defined contribution plan.
If a | 26 | | system has a step-rate formula for calculation of the |
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| 1 | | retirement annuity,
pension credits covering previous service | 2 | | which have been established under
another system shall be | 3 | | considered in determining which range or ranges of
the | 4 | | step-rate formula are to be applicable to the employee.
| 5 | | (c) Interest on pension credit shall continue to accumulate | 6 | | in accordance with
the provisions of the law governing the | 7 | | retirement system in which the same
has been established during | 8 | | the time an employee is in the service of another
employer, on | 9 | | the assumption such employee, for interest purposes for pension
| 10 | | credit, is continuing in the service covered by such retirement | 11 | | system.
| 12 | | (Source: P.A. 98-599, eff. 6-1-14 .)
| 13 | | (40 ILCS 5/20-123) (from Ch. 108 1/2, par. 20-123)
| 14 | | Sec. 20-123. Survivor's annuity. The provisions governing | 15 | | a retirement
annuity shall be applicable to a survivor's | 16 | | annuity. Appropriate credits shall
be established for | 17 | | survivor's annuity purposes in those participating systems
| 18 | | which provide survivor's annuities, according to the same | 19 | | conditions and
subject to the same limitations and restrictions | 20 | | herein prescribed for a
retirement annuity. If a participating | 21 | | system has no survivor's annuity
benefit, or if the survivor's | 22 | | annuity benefit under that system is waived,
pension credit | 23 | | established in that system shall not be considered
in | 24 | | determining eligibility for or the amount of the survivor's | 25 | | annuity which
may be payable by any other participating system.
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| 1 | | For persons who participate in the self-managed plan | 2 | | established under
Section 15-158.2 or the portable benefit | 3 | | package established under Section
15-136.4, pension credit | 4 | | established under Article 15 may be considered in
determining | 5 | | eligibility for or the amount of the survivor's annuity that is
| 6 | | payable by any other participating system, but pension credit | 7 | | established in
any other system shall not result in any right | 8 | | to a survivor's annuity under
the Article 15 system.
| 9 | | For persons who participate in a defined contribution plan | 10 | | established under Article 2, 14, 15, or 16 , or 18 of this Code | 11 | | to whom the provisions of this Article apply, the pension | 12 | | credits established under the defined contribution plan may be | 13 | | considered in
determining eligibility for or the amount of the | 14 | | defined benefit survivor's annuity that is
payable by any other | 15 | | participating system, but pension credits established in
any | 16 | | other system shall not result in any right to or increase in | 17 | | the value of a survivor's annuity under
the defined | 18 | | contribution plan, which depends solely on the options chosen | 19 | | and the value of the participant's vested account
balances and | 20 | | is not subject to any proportional adjustment under this
| 21 | | Section. | 22 | | (Source: P.A. 98-599, eff. 6-1-14 .)
| 23 | | (40 ILCS 5/20-124) (from Ch. 108 1/2, par. 20-124)
| 24 | | Sec. 20-124. Maximum benefits. | 25 | | (a) In no event shall the combined retirement
or survivors |
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| 1 | | annuities exceed the highest annuity which would have been | 2 | | payable
by any participating system in which the employee has | 3 | | pension credits, if all
of his pension credits had been | 4 | | validated in that system.
| 5 | | If the combined annuities should exceed the highest maximum | 6 | | as determined
in accordance with this Section, the respective | 7 | | annuities shall be reduced
proportionately according to the | 8 | | ratio which the amount of each proportional
annuity bears to | 9 | | the aggregate of all such annuities.
| 10 | | (b) In the case of a participant in the self-managed plan | 11 | | established under
Section 15-158.2 of this Code to whom the | 12 | | provisions of this Article apply:
| 13 | | (i) For purposes of calculating the combined | 14 | | retirement annuity and
the proportionate reduction, if | 15 | | any, in a retirement annuity other than one
payable under | 16 | | the self-managed plan, the amount of the Article 15 | 17 | | retirement
annuity shall be deemed to be the highest | 18 | | annuity to which the annuitant would
have been entitled if | 19 | | he or she had participated in the traditional benefit
| 20 | | package as defined in Section 15-103.1 rather than the | 21 | | self-managed plan.
| 22 | | (ii) For purposes of calculating the combined | 23 | | survivor's annuity and
the proportionate reduction, if | 24 | | any, in a survivor's annuity other than one
payable under | 25 | | the self-managed plan, the amount of the Article 15 | 26 | | survivor's
annuity shall be deemed to be the highest |
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| 1 | | survivor's annuity to which the
survivor would have been | 2 | | entitled if the deceased employee had participated in
the | 3 | | traditional benefit package as defined in Section 15-103.1 | 4 | | rather than the
self-managed plan.
| 5 | | (iii) Benefits payable under the self-managed plan are | 6 | | not subject to
proportionate reduction under this Section.
| 7 | | (c) In the case of a participant in a defined contribution | 8 | | plan established under
Article 2, 14, 15, or 16 , or 18 of this | 9 | | Code to whom the provisions of this Article apply: | 10 | | (i) For purposes of calculating the combined | 11 | | retirement annuity and
the proportionate reduction, if | 12 | | any, in a defined benefit retirement annuity, any benefit | 13 | | payable under the defined contribution plan shall not be | 14 | | considered. | 15 | | (ii) For purposes of calculating the combined | 16 | | survivor's annuity and
the proportionate reduction, if | 17 | | any, in a defined benefit survivor's annuity, any benefit | 18 | | payable under the defined contribution plan shall not be | 19 | | considered. | 20 | | (iii) Benefits payable under a defined contribution | 21 | | plan established under Article 2, 14, 15, or 16 , or 18 of | 22 | | this Code are not subject to
proportionate reduction under | 23 | | this Section. | 24 | | (Source: P.A. 98-599, eff. 6-1-14 .)
| 25 | | (40 ILCS 5/20-125) (from Ch. 108 1/2, par. 20-125)
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| 1 | | Sec. 20-125. Return to employment - suspension of benefits. | 2 | | If a retired
employee returns to employment which is covered by | 3 | | a system from which he is
receiving a proportional annuity | 4 | | under this Article, his proportional annuity
from all | 5 | | participating systems shall be suspended during the period of
| 6 | | re-employment, except that this suspension does not apply to | 7 | | any
distributions payable under the self-managed plan | 8 | | established under Section
15-158.2 or under a defined | 9 | | contribution plan established under Article 2, 14, 15, or 16 , | 10 | | or 18 of this Code.
| 11 | | The provisions of the Article under which such employment | 12 | | would be
covered shall govern the determination of whether the | 13 | | employee has returned
to employment, and if applicable the | 14 | | exemption of temporary employment or
employment not exceeding a | 15 | | specified duration or frequency, for all
participating systems | 16 | | from which the retired employee is receiving a
proportional | 17 | | annuity under this Article, notwithstanding any contrary
| 18 | | provisions in the other Articles governing such systems.
| 19 | | (Source: P.A. 98-599, eff. 6-1-14 .)
| 20 | | Section 97. Severability and inseverability. The | 21 | | provisions of this Act are severable under Section 1.31 of the | 22 | | Statute on Statutes, except that the changes made to | 23 | | subsections (a), (a-1), (a-2), (d), and (e) of Section 18-125.1 | 24 | | and Sections 18-131, 18-132, 18-133, 18-140, 18-175, 20-106, | 25 | | 20-121, 20-123, 20-124, and 20-125 of the Illinois Pension Code |
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| 1 | | are mutually dependent and inseverable from one another but are | 2 | | severable from any other provision of this Act.
| 3 | | Section 99. Effective date. This Act takes effect January | 4 | | 1, 2016.".
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